Terms used in export custom clearance such as Customized Brokerage Services, Customs Duties Set Off,Customs Clearance,Customs Invoice etc.
This post explains about terms used in custom clearance such as COST, INSURANCE AND FREIGHT,Clean Bill of Lading,Commercial Invoice,Complex Entries,COST AND FREIGHT,Customized Brokerage Services,Customs Duties Set Off,Customs Clearance,Customs Invoice etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in custom clearance
CIF (COST, INSURANCE AND FREIGHT): The seller has the same obligations as under CFR however he is also required to provide insurance against the buyer's risk of loss or damage to the goods during transit. The seller is required to clear the goods for export. This term should only be used for sea or inland waterway transport.
CIP (CARRIAGE AND INSURANCE PAID TO.):The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against the buyer's risk of loss or damage of goods during the carriage. The seller is required to clear the goods for export however is only required to obtain insurance on minimum coverage. This term requires the seller to clear the goods for export and can be used across all modes of transport.
Clean Bill of Lading:A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damages or other irregularities.
Commercial Invoice:Is the document used to define the shipment contents, including all components necessary to clear the shipment through US Customs. If a Packing List is NOT used, the Commercial Invoice must contain all of the key elements normally found on it to assure error free US Customs clearance. See Document Preparation for details.
Complex Entries: Usually requires a formal entry and may require an additional day of customs clearance. A Complex Entry fee will be applied to the following:A live entry that is required by U.S. Customs and Border Protection (CBP) when an export license (visa) is mandated for import into the U.S.If the commodity and country of origin require Antidumping/Countervailing Duties.Antidumping/Countervailing Duty entries help U.S. companies compete with foreign industries and require additional information for U.S. Customs and Border Protection.Any goods returned and goods previously imported that require additional U.S. Customs and Border Protection documentation to substantiate the duty-free claim.
Consignee:The person or firm named in a freight contract to whom goods have been consigned or turned over. For export control purposes, the documentation differentiates between an "intermediate" consignee and an "ultimate" consignee.
Consignment:Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.
Consolidator:Name of the party that loaded the container or arranged for the loading of the container.
Consular Invoice:A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity, and nature of the shipment.
Container Stuffing Location:The "physical" location where the goods were loaded into a container for shipping.
Continuous Entry Bond: A one-year bond for all entries made in a single year with up to US$50,000 coverage. A Continuous Entry Bond is only required under special circumstances.
COST AND FREIGHT (CFR):This term means that the seller has to pay all costs and freight to send the goods to the destination port. However risks off loss and damage and any increase on the costs are transferred from seller to the buyer when the goods loaded to the vessel’s rails.CFR term states that the seller must perform export customs clearance of the goods.
COST, INSURANCE AND FREIGHT (CIF):This term means the Seller has all the obligations mentioned in CFR. In addition, the seller must purchase a marine insurance against the risks of loss or damage during transportation of the goods. Seller draws up the insurance contract and pays the premium thereof. Buyer must know that this term means the seller has the obligation to obtain minimum insurance coverage. This term states that the seller must perform export customs clearance of the goods.
Country Eligibility: GSP is not available for shipments to all countries. eBay reserves the right to expand or limit the countries eligible for GSP at any time, in its sole discretion, with or without notice. The countries currently eligible for GSP may be found here.
Country of origin:The Country of Manufacture for each item on the invoice.
CPT (CARRIAGE PAID TO.):The seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage to the goods occurring after the delivery has been made to the carrier is transferred from the seller to the buyer. This term requires the seller to clear the goods for export and can be used across all modes of transport.
CSC:Container Service Charge (costs for a country-sided handling of FCL containers at a "free on board" delivery)
Customized Brokerage Services: UPS can provide additional customized brokerage services to meet your specific importing and compliance needs. Examples of these contractual fee-based services include customized reports, shipment pre-alerts, classification confirmations and others. The fees for these customized services depend on the types of services requested.
Customs Broker:An individual or company licensed by the government to enter and clear goods through Customs. The U.S. Customs Service defines a Customs Broker, as any person who is licensed in accordance with Part III of Title 19 of the Code of Federal Regulations (Customs regulations) to transact Customs business on behalf of others. Customs business is limited to those activities involving transactions with Customs concerning the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected by Customs upon merchandise by reason of its importation, or the refund, rebate, or drawback thereof.
Customs Broker:Same as Broker or Imports Broker. See Imports Broker.
Customs Clearance:The procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentation by the nature of the cargo such as FCC or FDA approval.
Customs Declaration:The declaration being submitted electronically or manually according to the customs approved form wherein the importer indicates the customs procedures applicable to the goods and describes the details, which the customs require to be declared for the purposes of applying such procedures.
Customs Duties Set Off :The country of first entry point shall collect the customs duties on consignments of goods and deposit them in the customs union accounts for the purposes of setoff for the benefit of the country of final destination within the GCC states upon presenting a proof of arrival of such consignments in that country.
Customs Duties: The duties laid down in the customs tariff to which goods are liable on entry or leaving the customs territory. The amount or the percentage of the amount levied on the goods as per the Common Customs law of GCC states.
Customs Entry Packet: Entry and payment documentation for shipments that have been through the U.S. Customs and Border Protection payment and review process.
Customs Exit/Entry Certificate :A certificate confirming exit of goods from the country or proving their entry to the country of destination enabling the exporter to recover deposits paid against payable customs duties.
Customs Import Value:This is the U.S. Customs Service appraisal value of merchandise. Methodologically, the Customs value is similar to f.a.s. (free alongside ship) value since it is based on the value of the product in the foreign country of origin, and excludes charges incurred in bringing the merchandise to the United States (import duties, ocean freight, insurance, and so forth); but it differs in that the U.S. Customs Service, not the importer or exporter, has the final authority to determine the value of the good.
Customs Inspection:Authority conferred to customs officers to inspect goods, means of transport and persons including their baggage within a customs territory and when entering and exiting customs’ zones.
Customs Invoice:A document, required by some foreign countries' customs officials to verify the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment.
The above details describes about terms called in custom clearance such as COST, INSURANCE AND FREIGHT,Clean Bill of Lading,Commercial Invoice,Complex Entries,COST AND FREIGHT,Customized Brokerage Services,Customs Duties Set Off,Customs Clearance,Customs Invoice etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in custom clearance below this post.Terms used in export custom clearance such as Air Waybill,Amendmen,Automated Clearinghouse,Bill of Lading ,Bond System
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