CCEB Component C flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Customs territory

The geographic area in which a single customs law and tariff apply. It may be smaller or larger than a state, as with customs unions and separate customs territories.

Declarant liability

The person filing an import or export declaration is legally responsible for its accuracy, even if a broker or agent prepared and submitted the data on their behalf.

Post-clearance audit

A customs control performed after goods are released, examining the declarant's commercial records to verify classification, value, origin, and duty paid.

Voluntary disclosure

A declarant's self-report of an error to customs before detection. It commonly reduces or eliminates penalties and may limit retroactive liability.

GIR 3(a) specificity

When goods are prima facie classifiable under two or more headings, the heading providing the most specific description prevails over headings giving a more general description.

GIR 3(b) essential character

For mixtures, composite goods, or sets put up for retail sale, classification follows the component that gives the goods their essential character.

Six-digit subheading

The internationally harmonized level of the tariff nomenclature. Digits beyond six are national and differ between countries, so comparisons above six digits are not universal.

Transaction value

The price actually paid or payable for imported goods, adjusted by statutory additions such as assists, royalties, commissions, and packing, and by permitted deductions.

Assists

Materials, components, tools, dies, or engineering services supplied by the buyer free of charge or at reduced cost for use in producing the imported goods, added to customs value.

Royalties and license fees

Payments related to imported goods that are added to customs value when the buyer must pay them as a condition of sale of those goods.

Fallback valuation method

The final WTO valuation method, applying the earlier methods with flexibility while avoiding arbitrary values, domestic selling prices, or values of goods produced in the importing country.

Commercial invoice

The seller's document stating goods description, quantity, unit price, currency, terms of sale, and parties. It is the primary basis for customs value.

Bill of lading

A carrier's document evidencing receipt of goods for shipment and serving as a contract of carriage and, when negotiable, a document of title.

Incoterms

Standard trade terms defining delivery point, risk transfer, and cost allocation between buyer and seller. They do not by themselves determine customs value.

Single window

An electronic facility allowing traders to submit customs and permit-agency data once, with the system distributing information to all relevant authorities.

ATA Carnet

An international customs document permitting temporary duty-free admission of goods such as samples or professional equipment, valid for a defined period.

Tariff-rate quota

A two-tier duty structure applying a lower in-quota rate to a limited quantity and a higher out-quota rate to imports above that quantity.

Anti-dumping duty

A duty imposed after investigation finds that imported goods are sold below normal value and cause or threaten material injury to the domestic industry.

Countervailing duty

A duty imposed to offset a foreign subsidy benefiting imported goods, following an investigation that finds subsidization and resulting injury to domestic producers.

Safeguard measure

A temporary, most-favored-nation restriction responding to a surge of imports causing serious injury, applied with progressive liberalization over its permitted duration.

Duty drawback

A refund of duties paid on imported inputs that are subsequently exported, subject to documentary proof of export and matching of inputs to outputs.

Import VAT

A value-added tax levied at importation, usually on customs value plus duty. Registered businesses generally recover it as input tax.

Substantial transformation

The non-preferential origin test requiring the last processing to change the goods' name, character, or use, often evidenced by a change in tariff classification.

Cumulation

A rule allowing materials or processing from partner countries to count as originating under a preferential agreement, enabling goods to qualify more easily.

De minimis origin rule

A provision permitting a limited percentage of non-originating materials that fail the applicable product-specific origin rule without disqualifying the finished good.

Direct consignment

A preferential origin condition requiring goods to be transported from the exporting party to the importing party without processing in a third country, subject to permitted transit.

Advance ruling

A binding decision by customs on classification, valuation, or origin for described goods, giving the applicant certainty for future shipments during its validity.

Customs broker duties

A licensed agent must file accurate declarations, protect client confidentiality, disclose conflicts, and refuse to assist with false or fraudulent filings.

Restricted-party screening

A compliance check against sanctions and export-control lists, covering parties, destinations, and end uses, performed before goods are shipped or released.

Conformity assessment

The process demonstrating that regulated products meet applicable safety, labeling, or performance standards, often required before customs release at the border.

Authorized Economic Operator

A certified trader status granted for meeting supply chain security and compliance standards, providing benefits such as reduced inspections and priority processing.

Free zone

An area treated as outside the customs territory for duty purposes, where goods may be stored or processed under security and recordkeeping controls.

Inward processing relief

A regime allowing duty-suspended import of inputs for processing and re-export, with duty and penalties applying if the export condition is not met.