Reference
Trade compliance glossary
Plain-English definitions of the 63+ customs and trade compliance terms importers run into — from HTSUS and IOR to Section 301 and duty drawback.
A
- AD/CVD (Antidumping & Countervailing Duties)
- Additional duties imposed to offset goods sold below fair value (antidumping) or that benefit from foreign government subsidies (countervailing). Assessed on top of normal duties for specific products and producers.
- Assist
- Something the buyer provides to the producer for free or at reduced cost — tooling, materials, dies, or design work — whose value must be added to the customs value of the imported goods.
B
- Binding Ruling
- A written decision from CBP on the classification, valuation, or origin of goods that an importer can request before importing and rely on at entry.
- BIS (Bureau of Industry and Security)
- The U.S. Commerce Department agency that administers export controls and maintains the Denied Persons and Entity Lists used in supplier screening.
- Bonded Warehouse
- A secured facility where imported goods may be stored without paying duty until they are withdrawn for consumption or exported.
C
- CBP (U.S. Customs and Border Protection)
- The federal agency that enforces customs laws, collects duties, and administers the entry process at U.S. ports.
- Certificate of Origin
- A document attesting to the country where goods were produced, often used to claim free-trade-agreement preference.
- CF 28 (Request for Information)
- A CBP form asking an importer for additional information to support a declared classification, value, or origin on an entry. Learn more →
- CF 29 (Notice of Action)
- A CBP form notifying an importer that CBP is taking or proposing an action, such as reclassifying goods or assessing additional duties. Learn more →
- Classification
- Assigning a product its correct HTS code, which determines the duty rate and admissibility. A core reasonable-care obligation. Learn more →
- Column 1 Rate (General)
- The normal-trade-relations (MFN) duty rate in the HTSUS that applies to imports from most countries. Learn more →
- Column 2 Rate
- A higher penalty duty rate that applies only to countries without normal trade relations with the U.S. (currently Cuba, North Korea, Russia, and Belarus). Learn more →
- Commercial Invoice
- The seller’s bill for the goods, showing price, parties, terms, and description — a primary document for valuation and entry.
- Consignee
- The party to whom goods are shipped. The ultimate consignee is the final recipient or owner in the U.S. Learn more →
- Continuous Bond
- A customs bond that covers all of an importer’s entries for a year, used by frequent importers instead of single-entry bonds.
- CROSS (Customs Rulings Online Search System)
- CBP’s public database of issued classification and other rulings — 200,000+ rulings that can be cited to support a classification.
- CTPAT (Customs Trade Partnership Against Terrorism)
- A voluntary CBP supply-chain-security program offering benefits like reduced inspections to members who meet its security criteria. Learn more →
- Customs Bond
- A financial guarantee required by CBP that duties, taxes, and fees will be paid and regulations followed. Available as single-entry or continuous.
- Customs Broker
- A CBP-licensed agent who prepares and files entries on an importer’s behalf under a power of attorney. The broker is not the legally liable party. Learn more →
- Customs Value
- The value on which duty is assessed — usually the transaction value plus statutory additions such as assists and royalties. Learn more →
D
- De Minimis (Section 321)
- A provision allowing shipments valued at or below a threshold (historically $800) to enter free of duty and with simplified processing, subject to change by regulation.
- Duty
- A tax assessed on imported goods, calculated from the customs value and the HTS classification (plus any trade-remedy tariffs).
- Duty Drawback
- A refund of up to 99% of customs duties paid on imported goods that are later exported or destroyed, under 19 U.S.C. §1313. Learn more →
E
- Entry / Entry Summary (CBP Form 7501)
- The filing that declares imported goods to CBP, including classification, value, origin, and duties owed. The entry summary is the formal document of record.
- Exporter of Record
- The party responsible for ensuring an export complies with U.S. export laws — the export-side counterpart to the importer of record.
F
- First Sale Rule
- A valuation method that lets duty be based on the price of the first sale in a multi-tier transaction (e.g., factory-to-middleman), which can lower the dutiable value.
- Focused Assessment
- CBP’s structured audit of an importer’s internal controls and compliance across classification, valuation, origin, and other areas. Learn more →
- Foreign Trade Zone (FTZ)
- A designated U.S. area treated as outside customs territory for duty purposes, where goods can be stored or processed with deferred, reduced, or eliminated duty.
- Free Trade Agreement (FTA)
- A treaty (such as USMCA) granting reduced or duty-free treatment to qualifying goods, claimed via the HTSUS Special (Column 1) rate. Learn more →
G
- GRI (General Rules of Interpretation)
- The six rules, applied in order, that govern how products are classified in the Harmonized System and HTSUS. Learn more →
H
- Harmonized System (HS)
- The 6-digit international product-classification standard maintained by the World Customs Organization and used by 200+ countries. Learn more →
- HMF (Harbor Maintenance Fee)
- A fee of 0.125% of customs value charged on ocean shipments to fund port maintenance. Learn more →
- HTS / HTSUS
- The Harmonized Tariff Schedule of the United States — the 10-digit schedule that sets the duty rate for every product imported into the U.S. Learn more →
I
- IEEPA Tariffs
- Tariffs imposed under the International Emergency Economic Powers Act, used for recent across-the-board and reciprocal tariff actions, applied through Chapter 99 of the HTSUS. Learn more →
- Importer Number
- The identifier CBP uses to track an importer — usually an IRS EIN, or a CBP-assigned number (via Form 5106) for foreign entities. Learn more →
- Importer of Record (IOR)
- The party legally responsible for ensuring imported goods comply with U.S. law, paying duties, and keeping records. Learn more →
- Incoterms
- Standardized international commercial terms (e.g., FOB, CIF, DDP) that define who bears cost, risk, and responsibility at each stage of shipment.
- ISF (Importer Security Filing / 10+2)
- Data importers must transmit to CBP before an ocean shipment loads, used for security screening. Late or inaccurate filings can incur penalties.
L
- Liquidation
- CBP’s final calculation and assessment of the duties owed on an entry, which starts the clock for protests.
M
- Manifest
- The carrier’s list of all cargo aboard a vessel, aircraft, or truck, filed with CBP on arrival.
- Marking (Country of Origin)
- The requirement that imported articles be marked legibly and permanently with their country of origin under 19 U.S.C. §1304. Learn more →
- MFN / NTR (Most Favored Nation / Normal Trade Relations)
- The standard, non-discriminatory tariff treatment the U.S. extends to most trading partners — the HTSUS Column 1 General rate.
- MPF (Merchandise Processing Fee)
- A CBP fee of 0.3464% of customs value on formal entries, subject to a per-entry minimum and maximum. Learn more →
O
- OFAC (Office of Foreign Assets Control)
- The Treasury agency that administers U.S. economic sanctions and maintains the Specially Designated Nationals (SDN) list used in screening.
- Origin (Country of Origin)
- The country where goods were produced or last substantially transformed — it drives duty rates, trade-remedy exposure, and marking. Learn more →
P
- PGA (Partner Government Agency)
- A federal agency other than CBP (FDA, EPA, USDA, CPSC, etc.) whose admissibility requirements must be met at import. Learn more →
- Post-Summary Correction (PSC)
- An electronic correction to an entry summary filed before liquidation — within 300 days of entry — to fix errors and recover overpaid duty. Learn more →
- Power of Attorney (POA)
- The document by which an importer authorizes a customs broker to transact business with CBP on its behalf. It does not transfer liability. Learn more →
- Prior Disclosure
- A voluntary report to CBP of a customs violation before CBP discovers it, which substantially reduces potential penalties. Learn more →
- Protest
- A formal challenge to a CBP decision, such as a classification or the duties assessed at liquidation, filed within 180 days of liquidation.
R
- Reasonable Care
- The legal standard requiring importers to take real, documented steps to declare goods accurately. Failure can trigger penalties even without intent. Learn more →
- Reconciliation
- A CBP program letting importers flag estimated entry data (e.g., value) and finalize it later via a reconciliation entry, common with First Sale and FTA claims.
S
- Schedule B
- The 10-digit classification system, administered by the Census Bureau, used to report goods exported from the United States. Learn more →
- SDN List (Specially Designated Nationals)
- OFAC’s list of individuals and entities subject to U.S. sanctions, with whom transactions are prohibited. Learn more →
- Section 232
- Tariffs imposed on national-security grounds, notably on steel and aluminum, applied through Chapter 99 of the HTSUS. Generally not drawback-eligible. Learn more →
- Section 301
- Tariffs imposed in response to unfair foreign trade practices, notably on goods from China, applied through Chapter 99. Generally drawback-eligible. Learn more →
- Substantial Transformation
- The test for country of origin: a process that creates a new article with a different name, character, or use determines where origin is conferred. Learn more →
T
- Tariff
- A tax on imported goods; used interchangeably with "duty," and also to refer to the schedule of rates itself.
- TFTEA
- The Trade Facilitation and Trade Enforcement Act of 2015, which modernized duty drawback (8-digit substitution, electronic filing) effective February 2018. Learn more →
- Transaction Value
- The primary basis for customs value — the price actually paid or payable for goods sold for export to the U.S., plus statutory additions. Learn more →
U
- UFLPA (Uyghur Forced Labor Prevention Act)
- A law creating a rebuttable presumption that goods linked to Xinjiang are made with forced labor and barred from entry. Learn more →
- Ultimate Consignee
- The party in the U.S. that receives or ultimately owns the imported goods, which may differ from the importer of record. Learn more →
W
- WRO (Withhold Release Order)
- A CBP order to detain specific merchandise suspected of being made with forced labor, under Section 307 of the Tariff Act of 1930. Learn more →
Put these terms to work
Tariffloop turns the glossary into action — classifying your catalog, screening suppliers, and finding the duty refunds your broker missed.