CCEB Component A key terms

The process of assigning an imported good to a specific heading and subheading in the Harmonized System so that the correct duty rate, rules of origin, and regulatory controls apply to it.

An international nomenclature maintained by the World Customs Organization that organizes traded goods into chapters, headings, and six-digit subheadings, forming the base for most national tariff schedules.

The six legally binding rules that establish the order in which a good is classified, beginning with heading text and section notes and moving through incomplete goods, mixtures, and essential character.

Legally binding explanatory text within the tariff schedule that defines terms, limits the scope of headings, and can override what the heading wording alone appears to cover.

The quality that gives a composite or mixed good its identity for classification purposes, determined by the nature of the components, their bulk, value, or role in the finished article.

A country-specific extension of the six-digit Harmonized System subheading, typically at the eight- or ten-digit level, that carries the actual duty rate and statistical reporting requirements.

A written determination issued by a customs authority that fixes the classification, origin, or valuation treatment of specific goods for the requesting importer, generally for a defined period.

The determination of the customs value of imported goods, normally the transaction value, which serves as the base on which ad valorem duties and taxes are calculated.

The price actually paid or payable for goods when sold for export, adjusted by specified additions and deductions, and used as the primary valuation method when certain conditions are met.

The total payment made or owed by the buyer to the seller for the imported goods, excluding costs incurred after importation and international freight where the valuation basis excludes them.

Goods, services, or engineering work supplied free or at reduced cost by the buyer for use in producing the imported goods, whose value must be added to the transaction value.

Payments for the right to use patents, trademarks, copyrights, or know-how that must be added to the customs value when they relate to the imported goods and are a condition of sale.

A sale between buyer and seller linked by ownership, control, or family ties, which is acceptable for valuation only if the relationship did not influence the price.

The pricing of transactions between affiliated companies across borders, which customs authorities examine to confirm that the declared value reflects an arm's-length price.

A refund of duties and taxes paid on imported merchandise that is later exported, either in its original form or as a component of a finished product.

A secured facility approved by customs where imported goods may be stored without payment of duties until they are entered for consumption, re-exported, or otherwise disposed of.

A financial guarantee, usually issued by a surety, that secures an importer's or broker's obligation to pay duties, taxes, and penalties owed to the customs authority.

The legal criteria used to determine the country in which a good was produced, which in turn governs eligibility for preferential tariff treatment and application of trade measures.

A change in a good's name, character, or use resulting from processing in a country, the traditional test for conferring origin on a manufactured product.

A document, often certified by an authorized body, declaring the country in which goods were wholly obtained or sufficiently processed, used to claim preferential duty rates.

A treaty between countries that reduces or eliminates tariffs on goods meeting agreed origin rules, while each party keeps its own external tariff for non-members.

The seller's billing document describing the goods, quantity, price, and terms of sale, which customs uses to establish value and verify the declared information.

A document itemizing the contents of each package in a shipment, including weights, dimensions, and marks, used by customs, carriers, and warehouse staff to identify and check cargo.

A transport document issued by a carrier that serves as a receipt for goods, evidence of the contract of carriage, and, when negotiable, a document of title.

A non-negotiable transport document for air cargo that records the shipper, consignee, route, and charges, and functions as a receipt and contract of carriage.

An intermediary that arranges transportation, consolidates shipments, prepares transport documents, and coordinates customs clearance on behalf of shippers and consignees.

A cargo intermediary that issues its own bills of lading and arranges space with actual carriers, without operating the ships that move the goods.

Standard international trade terms published by the International Chamber of Commerce that allocate costs, risks, and delivery obligations between buyer and seller in a sales contract.

An Incoterm under which the seller makes goods available at its own premises and the buyer bears all costs and risks of loading and onward transport.

A sea and inland waterway Incoterm under which the seller delivers goods on board the vessel at the named port, after which risk and cost pass to the buyer.

A sea and inland waterway Incoterm requiring the seller to pay freight and insurance to the destination port, while risk passes to the buyer when goods are loaded on board.

An Incoterm placing maximum obligation on the seller, who delivers goods cleared for import at the named destination and pays duties, taxes, and import formalities.

An alphanumeric designation that identifies an item's level of control under a national export control list and determines the license requirements that apply to it.

Goods, software, or technology with legitimate commercial applications that can also be used for military or weapons-related purposes, often subject to export licensing.

An authorization issued by a government agency permitting the export or re-export of specified items, destinations, or end uses that are otherwise restricted.

A document in which the buyer declares the ultimate use and recipient of exported goods, helping the exporter verify that the items will not be diverted to prohibited purposes.

The process of checking customers, suppliers, and other parties against government restricted-party lists before a transaction to avoid prohibited dealings.

A review for warning signs of diversion or illicit end use, such as unusual routing, vague end-use information, or requests to avoid documentation, that requires further inquiry before shipment.

Restrictive measures imposed by governments or international bodies that limit or prohibit trade, financial dealings, or travel involving specified countries, entities, or individuals.

A licensed professional who prepares and files entry documentation and advises importers on compliance with customs laws, duties, and admissibility requirements.

A written authorization by which an importer appoints a broker to act on its behalf before customs, defining the scope of the broker's authority to file entries and related documents.

The legal standard requiring importers and their agents to exercise diligence, maintain records, and take active steps to ensure declarations to customs are accurate and complete.

The obligation to retain entry records, invoices, and supporting documents for a prescribed period so customs can audit compliance and verify the accuracy of declarations.

A pre-importation decision from customs on how it will treat a planned transaction, typically covering classification, origin, or valuation, giving the applicant legal certainty.