Glossary: Imports & Exports Guide

Glossary

Import Declaration Types:

CDS Import
CCR (Used to be known as “C21”)

Export Declaration Types:

CDS Export
CCR (Used to be known as “C21”)

A

AAD: “Accompanying Administrative Document used in EMCS transit of Excise goods.

AAD Reference Code (ARC) : Ref above AAD: The unique reference code for an electronic Administrative Accompanying Document (AAD), this is assigned by its holder’s Member State Administration.

Ad-valorem duty: A duty based on a percentage of the value of the goods.

AEP: Automated entry processing (AEP is the Irish Revenue’s customs declarations system which handles the validation, processing, duty, accounting and clearance of customs declarations in Republic of Ireland).

Agent: A person authorised to transact business for and in the name of another person or company. The types of customs agents include brokers, commission merchants, resident buyers, sales agents, manufacturer’s representatives.

Agricultural duties : Import and export duties introduced under the common agricultural policy

Anti-dumping duties: Customs duties imposed on imports from specific countries in addition to the normal or preferential duty; such duties may be introduced by countries or economic zones where the export price is below the normal value of the commodity, and usually on if such imports threaten the local Community producers of similar products.

Approved exporter (export procedure): A person who has been authorised to use the local clearance procedure for exports, i.e. goods are placed under the procedure by entry in their records and the customs authorities are notified of the removal of the goods from their premises.

Approved exporter (origin): Someone who makes frequent shipments of products and thus qualifies for preferential origin status and who has been authorised to complete invoice declarations for proof of origin.

Article 50: The formal mechanism for exiting the EU: A clause in the 2007 Lisbon treaty allowing any member state “to withdraw from the union in accordance with its own constitutional requirements”. It allows for negotiations to arrange citizens’ rights, the issue of the Irish border and the UK’s final exit bill.

ATR: Anticipated Transit Record. Authorised consignee: A person that has been authorised to receive at their premises or any other specified place, goods moved under a transit procedure without presenting the goods and the transit declaration at the office of destination.

Authorised consignor: A person that has been authorised to carry out transit operations without presenting the goods and the transit declaration at the office of departure.

B

B/L: “Bill of Lading; This is a document issued by a carrier, or their agent, to the shipper and is a a contract for the carriage of goods. It can also be a receipt for cargo accepted for transportation, a B/L must be presented in order to take delivery at the destination.

Badge: Goods imported via the major ports and airports in the UK, or cleared into inland UK customs clearance sites, are managed by port community systems, for these, although you can still submit customs declarations using Descartes’ e-Customs software you will also need a port community system identity, otherwise called a “Badge” “Port Badge” or “Chief Badge”. Separate port Badges are required for each inventory linked port, or a single badge can be used at multiple non-inventory locations.

Bank Draft: Similar to a personal cheque it is an order issued by a seller against a purchaser; usually it directs payment through an intermediary bank.

Bank Guarantee: Guarantee issued by a bank to a carrier to be used in lieu of a lost or misplaced original negotiable bill of lading.

Bill of exchange: A non-interest-bearing, written order that is used primarily in international trade. It binds one party to pay a fixed sum of money to another party at a predetermined future date. Bills of exchange are similar to cheques and promissory notes. If issued by a bank, they may also be referred to as bank drafts. If issued by individuals, they may be referred to as trade drafts.

Bill of sale: A legal document confirming the transfer of ownership of named goods to another person in return for monies paid.

Binding origin information (BOI): Written information issued by the customs authorities of the Member States on the preferential or non-preferential origin of specific goods to be imported or exported.

Binding tariff information (BTI): Information issued by the customs authorities of the Member States on the classification of goods in the combined nomenclature or a nomenclature derived therefrom.

BIRDS – Bulk Import Reduced Data Set: Comes into effect in Great Britain on 1 January 2021. This will enable traders and intermediaries to declare a number of low value items in one single customs declaration. More info here

Bond: A legal undertaking or contract by which a person binds themself to the Customs to do or not to do some act specified by a law or regulation. (May also be referred to as a Customs Bond).

Bonded Goods: Refers to goods stored in a warehouse (operated or approved by Customs), awaiting the payment of duty or the goods are exported or otherwise legally dealt with.

Brexit: “The British exit from the European Union, a phrase created initially in the press and now used to describe the separation of The UK from the European Union. This process was initiated on 1st January 2020, we are now in the transition period where trade negotiations are taking place and this is expected to conclude on 31st December 2020 (EU Exit)

Bulk cargo: Loose, unpackaged, non-containerized cargo (such as cement, grains, coal, ores, etc.) carried in a ship’s hold, and loaded and discharged through hatchways.

Bulk Carriers: Vessels designed to carry dry (such as grain, cement, fertilizers, etc.) or liquid (oil, petroleum, methanol, Wine, etc.) bulk cargo.

C

C&F: Obsolete, but heavily used, term of sale meaning ‘cost and freight’ – A Seller pays for cost of goods and freight charges up to destination port. replaced with CFR

C&I/CI: Cost and Insurance – The price will include the cost of the goods, the marine insurance and all transportation charges but not the cost of the ocean freight to the named point of destination.

C88’s: Customs entry also know as SAD

CAF: Currency Adjustment Factor – A charge, expressed as a percentage of a base rate, applied to compensate ocean carriers for currency fluctuations.

Cage: A secure holding area for storing high value or high tax goods inside an air, sea cargo or freight forwarder’s bonded/facility.

Carrier: The person or company transporting goods, in charge of or responsible for the operation and the means of transport.

CCC aka CCN: Community Customs Code

CCIP: Customs Code Implementing Provisions

CCT / Common Customs Tariff: Applies to the import of goods across external borders of the EU and is common for all EU Members. the rates will however differ depending upon the product and where it comes from.

CDS, Customs Declarations Service: Customs Declaration Service – The UK’s HMRC software for the electronic filing of Customs Declarations, The CDS system is planned to replace the older CHIEF system in the near future. The CDS System may be the preferred option for the Northern Ireland Customs Declarations as it can cope with multiple tariffs.

Certificate of origin: A specific document identifying the origin of the goods, on which the authority or body empowered to issue said certificate states that the goods originate in a specific country. This certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person (WCO)

CFR (named port of destination): Cost and Freight means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel by the seller is then transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. Where the Customs Value is based on CIF, the cost of overseas insurance must be added to the CFR Value. CFR terms of trade are generally used for sea or inland waterway transportation.

CHIEF: Customs Handling Import and Export Freight

Chief Badge: Goods imported via the major ports and airports in the UK are managed by UK port community systems, for these, although you can still submit customs declarations using Descartes’ e-Customs software you will also need a port community system identity, otherwise called a “Badge” “port Badge” or “Chief Badge”. Separate port Badges are required for each inventory linked port, or a single badge can be used at multiple non-inventory locations.

CIF (named port of destination): Cost, Insurance and Freight means that the seller has the same obligations as under CFR, but with the addition that they also have to procure marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.

CIP ( Named place of destination): Carriage and Insurance Paid To (…named place of destination). The seller transports the goods to the port of export, clears Customs, and delivers them to the carrier. The seller pays transportation and insurance costs to the named place of destination. The title & risk pass to the buyer once the seller delivers the goods to the carrier. CIP terms of trade are used for all modes of transportation.

CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora

Clearance into Home use: The Customs procedure which covers imported goods that enter into free circulation within the Customs Territory upon the payment of any import duties and taxes that are chargeable and the finalisation of all necessary Customs formalities are completed.

CN22: Form for goods Mailed abroad to the value of £270

CN23: Form for goods Mailed abroad greater than the value of £270

COD: Cash on Delivery, a transaction whereby goods are paid for in cash or by certified cheque immediately upon receipt by the purchaser; or may refer to Carried On Docket relating to pricing.

Collect freight: Freight charges as shown on a Bill of Lading or an air waybill that are payable to the carrier at the port of discharge or the final destination. The consignee will not have to pay for the freight charges if the cargo does not arrive at the final destination.

Combined nomenclature (CN) : A list of goods descriptions based on the Harmonized System, for the Common Customs Tariff, external trade statistics, and other Community policies

Commodity codes: Dependent upon the customs code (or commodity code) used for your goods will determine which taxes and regulations apply to them, the right code for the goods must be used.

Common Carrier: A for hire transportation company providing a service to the general public at published rates.

Common transit: When you move goods between or through EU and common transit countries you can use the Common Transit Convention (CTC). This will allow you to move your goods quicker because customs declarations are not required at each border crossing only pay customs duties when the goods reach their final destination complete some customs procedures away from the border.

Community Customs Code: This provides for 8 customs procedures: release for free circulation, transit, customs warehousing, inward processing, processing under customs control, temporary importation, outward processing, and exportation.

Community transit: Customs procedure that allows goods to be moved from one point in the EU Community to another.

Compensating products: Relates to Inward/outward processing relief.

Compliance Management: The application of procedures and practices that are designed to manage compliance with Customs laws.

Consignee: a person entitled to receive goods.

consignment note: Drawn up by the shipper this is a document accompanying goods. It acts as proof that a contract for carriage has been concluded as well as describing its content. It also serves as a receipt when goods are collected from the shipper and delivered to the recipient.

Consignor: A person entitled to send goods.

Consolidation: Two or more shippers or suppliers consignments will be Consolidated into one shipment. Container load shipments can also be consolidated for one or more consignees.

Consolidator: A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full cargo (FCL) rates, and savings are passed on to shippers.

Container Terminal: Area in port designated for container storage

Control copy T5: A declaration and undertaking that is used to cover goods imported into, exported from or moving within the customs territory of the Community, they are subject to proof of compliance with the conditions provided for or prescribed by a Community rule for their use and/or destination.

CoO: Certificate of Origin

Countervailing duties: These are customs duties imposed on imports from specific countries over and above the normal duty; such duties might be added when there is a subsidy granted by the exporting country on those classification of goods.

CPC – Customs Procedure Code: This is your reason for importing or exporting, expressed as either a seven digit number or a six digit number and one letter. … At the very least it is a short written statement and must be present on your customs declaration that clearly explains the purpose of your shipment.

CPEI – Customs Procedures with Economic Impact: These procedures; customs warehousing, inward processing, processing under customs control, temporary importation, outward processing, all require an authorisation and in some situations an evaluation of their economic impact.

CPT (…named place of destination): Carriage Paid To… means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring once the goods have been delivered to the carrier is then transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.

CSFP: Customs Simplified Freight Procedure

CSP: Community System Provider – Goods imported via the major ports and airports, or cleared into inland clearance sites in the UK, are managed by UK port community systems. To submit UK customs declarations via these systems you also require a port community system identity, otherwise called a “Badge” “port Badge” or “Chief Badge” and these are provided by a Community System Provider (CSP) such as Descartes’ Pentant.

CSP’s (Primary): Community Service Providers. These are Descartes Pentant, CNS, MCP or CCSUK

Cumulation: Rules that allow components and processing in certain partner countries to be considered for the acquisition/maintenance of preferential origin

Customs: The Government Service which is responsible for the administration of Customs law and the collection of duties and taxes and the responsibility for applying other laws and regulations relating to the importation, exportation, movement or storage of goods.

Customs clearing agent/broker: A person/company that arranges the Customs clearance of goods on behalf of others and who deals directly with the Customs for and on behalf of another person/company. (WCO)

Customs controls: Regulations adhered to by the Customs authorities of the Member States with the aim of ensuring that the customs rules and other applicable trade provisions are adhered to observed, e.g. examining goods, documents or accounts, or carrying out investigations into the carriage of goods.

Customs debt: The obligation on a person/company to pay import or export duties under the provisions of the Community Customs Code and the Common Customs Tariff

Customs Declaration: The form completed and submitted to HMRC for both imports & Exports normally electronically, with data e.g. covering goods description, value. See also ICS/EMCS/NCTS-T1,T2 etc/CHIEF/CDS/C88/ETS

Customs Duties: The duties laid down in the Customs tariff to which goods are liable on entering or leaving the Customs territory. (Kyoto Convention)

Customs formalities: All activities which must be completed in order to comply with the Customs law.

Customs seal: A fastening that is affixed to goods, in accordance with certain Customs procedures (Customs transit, in particular) generally to prevent or to draw attention to any unauthorized interference with the sealed items.

Customs Territory: A geographic area, covering two or more countries, which share the same custom regulations. Under Boris Johnson’s Brexit deal, Northern Ireland and Great Britain will remain part of the same customs territory – although Northern Ireland will need to continue to follow EU custom rules.

Customs union: The merger of two or more customs territories in a way that customs duties and non-tariff barriers are eliminated between the members of the union for all trade, and a common customs tariff along with common rules for non-tariff barriers are introduced for all trade with countries outside of this union.

Customs value: The value of goods according to the customs rules for the purpose of applying ad valorem duties

Customs warehouse: A designated place where imported goods are stored under Customs control without payment of import duties and taxes. Might also be called a bonded warehouse or Excise warehouse.

D