DCL highly recommends working closely with a brokerage or freight forwarder to get a better understanding of how to internationally, in order to reduce clearance issues and the cost of shipping internationally.
Here is a recommended list of international terms to understand.
AES (Automated Export System) – A U.S. government system used to electronically report export shipments leaving the United States. Certain exports, typically those exceeding $2,500 in value or requiring export licenses, must be filed through AES to comply with U.S. export regulations.
Anti-Dumping Duties (ADD) – Additional duties imposed by a government when imported goods are sold below fair market value. These duties are intended to protect domestic industries from unfair pricing in international trade.
ATA Carnet - Allows a merchant to skip paying duties and taxes on goods if the goods are in the country for less than a year. For example, if you need to present your products at a trade show, but they will be shipped back to the country of origin before a year’s time.
Bill of Lading (BOL) – A transportation document used primarily for freight shipments that serves as both a receipt for the goods and a contract between the shipper and the carrier.
Bonded Warehouse – A secure storage facility authorized by customs authorities where imported goods may be stored without paying duties or taxes until the goods are released into the destination market.
Commercial Invoice – CI’s are used as a customs document and are one of the most common and important documents used in cross-border trade and shipping. A CI is required for any international shipment containing goods, and it is the primary document used for importation control, valuation, and duty determination.
Cargo insurance - insurance that covers damage due to loading/unloading, weather conditions, piracies and other potential risks during international shipping. Cargo insurance can be specified for marine or air freight.
CBP (U.S. Customs and Border Protection) – The U.S. government agency responsible for regulating imports, collecting duties and taxes, and enforcing customs regulations for goods entering the United States.
Certificate of insurance - documentation of cargo insurance that covers the importer/exporter for any possible damage to the goods while in transit. Reach out to a broker or freight forwarder to arrange the insurance.
Commercial Invoice – A document required for international shipments that provides customs authorities with detailed information about the goods being shipped, including product descriptions, HS codes, declared value, and country of origin.
Consignee – The person or business receiving a shipment in the destination country.
Country of Export – The country from which goods are shipped internationally. This may differ from the country of origin if goods are exported through a distribution hub.
Country of Origin – The country where a product was manufactured or substantially transformed. Customs authorities use this information to determine tariff rates and regulatory requirements.
Cross-Border Shipping – The movement of goods from one country to another through international transportation networks and customs clearance processes.
Customs Bond – A financial guarantee required by customs authorities to ensure that duties, taxes, and regulatory fees owed to the government will be paid.
Customs Broker – A licensed professional or company authorized to assist importers and exporters with customs clearance procedures and regulatory filings.
Customs Clearance – The process through which customs authorities review shipment documentation and regulatory compliance before allowing goods to enter a country.
Customs Declaration – Information submitted to customs authorities describing the goods being imported or exported, including value, classification, and country of origin.
Customs Entry – The formal declaration of imported goods to customs authorities so duties and taxes can be assessed and the shipment can be approved for entry into a country.
Customs Territory – The geographic area within which a country's customs regulations apply.
Customs Valuation – The process used by customs authorities to determine the value of imported goods for calculating duties and taxes.
DAP (Delivered at Place) – An international shipping term indicating that the seller is responsible for transporting goods to the destination country, while the recipient is responsible for paying duties and taxes at delivery.
DDP (Delivered Duty Paid) – An international shipping term indicating that duties and taxes are paid by the shipper before delivery so the recipient receives the shipment without additional charges.
Declared Value – The monetary value assigned to goods on customs documentation used to calculate duties, taxes, and import fees.
De Minimis Threshold – The shipment value below which duties and taxes are not applied when goods enter a country. Each country establishes its own threshold.
Duties – Taxes imposed by governments on imported goods based on product classification and country of origin.
ECCN (Export Control Classification Number) – A classification used under U.S. export control regulations to identify goods that may require export licenses.
EORI (Economic Operators Registration and Identification) – A unique identification number used by customs authorities in the European Union to identify businesses importing or exporting goods.
Export Administration Regulations (EAR) – U.S. regulations that control the export of certain goods, technologies, and software for national security and foreign policy purposes.
Exporter of Record (EOR) – The party responsible for ensuring export shipments comply with export regulations in the country of origin.
Export License – Government authorization required to export certain controlled goods or technologies to specific countries.
Formal Entry – A customs clearance process typically required for higher value shipments entering a country and often requiring additional documentation and customs broker involvement.
Free Trade Agreement (FTA) – An agreement between two or more countries that reduces or eliminates tariffs on qualifying goods traded between those countries.
Freight Forwarder - a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. DCL customers have the ability to seamlessly integrate with Flexport for their freight forwarding services and platform.
Harmonized System (HS Code) – An internationally standardized product classification system used by customs authorities worldwide to identify goods and determine duty rates.
Harmonized Tariff Schedule (HTS) – A country-specific tariff schedule based on the Harmonized System used to determine duty rates and import regulations.
Importer of Record (IOR) – The individual or business legally responsible for ensuring imported goods comply with customs regulations and for paying duties and taxes.
Import Declaration – A formal submission of shipment details to customs authorities when goods enter a country.
Import License – Government authorization required to import certain regulated goods into a country.
Incoterms – International Commercial Terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international trade.
Informal Entry – A simplified customs clearance process typically used for lower-value shipments entering a country.
IOSS (Import One Stop Shop) – A European Union VAT system designed for ecommerce shipments valued under €150 that allows VAT to be collected at the time of purchase.
Landed Cost – The total cost of delivering goods internationally, including product value, transportation costs, duties, taxes, and customs fees.
Non-Resident Importer (NRI) – A business that imports goods into a country without having a physical presence there.
PARS (Pre-Arrival Review System) – A Canadian customs process that allows shipment information to be submitted before goods arrive at the border for faster customs processing.
Preferential Tariff Treatment – Reduced duty rates applied to goods that qualify under a trade agreement.
Rules of Origin – Criteria used to determine where a product was manufactured for tariff and trade agreement purposes.
Tariffs – Taxes imposed by governments on imported goods.
Temporary Importation – A customs procedure allowing goods to enter a country temporarily without paying duties, provided the goods will be re-exported.
Trade Compliance – The process of ensuring that international shipments comply with import and export regulations.
VAT (Value Added Tax) – A consumption tax applied in many countries, particularly in the European Union.
World Customs Organization (WCO) – An international organization responsible for developing global customs standards, including the Harmonized System.
World Trade Organization (WTO) – An international organization that regulates global trade rules and agreements between nations.