Customs Specialist Qualification Examination key terms

The price actually paid or payable for imported goods when sold for export, adjusted by prescribed additions and deductions; it is the primary valuation basis for ad valorem duty.

Additions to or deductions from the price actually paid or payable, such as freight, insurance, commissions, assists and post-importation costs, required to arrive at the customs value.

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

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

The last-resort valuation method applied when earlier methods cannot be used, deriving value from available data flexibly while prohibiting arbitrary, fictitious or clearly false values.

Valuation methods that determine customs value by reference to the transaction value of identical goods or, failing that, similar goods exported at or about the same time.

A valuation basis in which the customs value includes the cost of goods, insurance and freight to the place of importation, used by many jurisdictions for duty assessment.

A valuation basis in which the customs value excludes international freight and insurance, so those costs are added separately only if the law requires it.

An internationally standardized goods classification system organized into sections, chapters, headings and subheadings, forming the basis of national tariff schedules and trade statistics.

The six legally binding rules that govern how goods are classified in the HS, covering heading text, incomplete goods, mixtures, essential character, and last-in-numerical-order residual classification.

The attribute that gives a composite good or set its fundamental nature, used under GIR 3(b) to classify mixtures and sets as if consisting of the material or component that confers that character.

A four-digit heading identifying a group of goods and a six- or more digit subheading within it; national tariff lines may extend further for duty rate purposes.

A written decision by customs classifying specific goods under a tariff code, binding on customs for a stated period provided the goods and circumstances match the application.

Legal criteria determining the country of origin of goods, based on wholly obtained status, substantial transformation, or specified change-in-tariff-classification, value-added or processing requirements.

A change in goods through processing in a country that gives them a new name, character or use, or that satisfies a specified tariff-shift or value test, conferring origin there.

A rules-of-origin measure requiring a minimum percentage of a good's value to originate in the qualifying country or region, calculated by build-up or build-down formulas.

A document certified by an authorized body declaring the country in which goods were produced, used to claim preferential tariff treatment or satisfy import requirements.

A reduced or zero duty rate applied to goods meeting origin rules under a free trade agreement, customs union or unilateral preference scheme such as GSP.

The formal statement by which a declarant informs customs of the goods, their classification, value, origin and intended customs procedure, creating legal responsibility for its accuracy.

The person, or licensed agent acting on their behalf, who lodges a customs declaration and is legally liable for the accuracy of its contents and payment of duties.

A standardized multi-copy form used in many jurisdictions for export, import and transit declarations, harmonizing data requirements across customs procedures.

A written decision issued before a transaction by customs on classification, origin or valuation of goods, providing legal certainty to traders who rely on it.

A code entered on a declaration identifying the customs procedure requested, such as release for free circulation, transit, warehousing, inward processing or export.

The customs procedure under which imported goods are placed on the domestic market after duties and taxes are paid and import formalities are completed.

A tax levied on imported goods, usually calculated as a percentage of customs value, a specific amount per unit, or a combination of both.

A consumption tax applied at importation, typically calculated on the customs value plus duty and other charges, creditable against tax owed on later domestic supplies.

A two-tier duty arrangement allowing a limited quantity of goods to enter at a lower rate, with quantities above the quota subject to a higher rate.

A temporary extra duty imposed on goods sold below normal value in the exporting market, causing material injury to domestic industry, following an investigation.

A duty imposed to offset subsidies granted by a foreign government to producers or exporters of imported goods that injure domestic industry.

A temporary restriction, such as a tariff increase or quota, imposed on fairly traded imports to prevent or remedy serious injury to domestic producers.

A customs-approved storage facility where imported goods may be held without payment of duties and taxes until they are released, re-exported or otherwise disposed of.

A procedure allowing imported goods to be processed and re-exported with full or partial relief from import duties, subject to authorization and record-keeping requirements.

A procedure permitting domestic goods to be exported temporarily for processing and re-imported with duty relief reflecting the value of the processing or the goods' original status.

A designated zone under continuous customs supervision where goods may be stored, handled or processed with deferral of duty, often offering simplified clearance and tax benefits.

A geographically defined zone such as a free trade zone or export processing zone where customs control is adapted to promote trade, logistics or manufacturing.

A customs compliance review conducted after goods are released, examining declarations, accounting records and internal controls to verify duty and tax liability.

A trader's documented system of policies, controls and record-keeping designed to ensure accurate declarations and adherence to customs laws, reducing penalty exposure.

A trader's self-initiated report to customs of an error or omission before discovery, often mitigating penalties and limiting liability for underpaid duties.

A civil sanction imposed by customs for inaccurate declarations, late payment or procedural breaches, ranging from warnings and fines to confiscation of goods.

A formal review by a higher customs authority of a disputed decision, such as a valuation or penalty determination, available before or alongside judicial appeal.

A trader certified as meeting supply-chain security and compliance standards, receiving benefits such as faster clearance and reduced inspection under a mutual recognition framework.

A licensed professional or firm that prepares and lodges declarations for importers and exporters, owing duties of accuracy, confidentiality and loyalty to the client.

The standard of care requiring customs practitioners to verify facts, apply current law and exercise reasonable skill when advising clients or filing declarations.

A situation where a practitioner's personal, financial or other interest could improperly influence professional judgment, requiring disclosure and avoidance or management.

An official authorization required before certain controlled goods may be imported, issued by a competent authority and subject to conditions and validity periods.

Mandatory health checks on plants, animals, food or other regulated goods at the border to prevent entry of pests and diseases, conducted before release.

Rules applied to protect human, animal or plant health from pests, diseases or contaminants, which must be based on science and not arbitrarily discriminate under WTO rules.

A legal ban on importing or exporting specified goods, such as endangered species, narcotics or strategic items, enforced through customs controls and licensing.

Licensing and end-use checks on items that can serve both civilian and military purposes, aimed at preventing proliferation of weapons and related technology.