Terms used in export custom clearance such as customs value,delivered at frontier,delivered duty unpaid,delivered at frontier, delivered ex quay etc.
This post explains about terms used in custom clearance such as customs union bases,customs value,delivered at frontier,delivered duty unpaid,delivered at frontier, delivered ex quay,delivered ex ship,demurrage 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
Customs Transactions within Customs Union:Consignments of goods within the customs union are divided into two types: (1) Forwarded consignments. (2) Consignments originating from the local market.
Customs Union Bases:Customs union is based on a common customs law and a unified customs tariff applicable towards outside world and approving the first entry point for collecting customs duties.
Customs Union: A union comprising the six GCC States having entered into force since 2003 with objective of removing inter-border points to achieve a common market.
Customs Value:The actual value of goods based on the principal basis for valuating the goods for customs purposes provided for in the law.
Customs:The government authorities designated to collect duties levied by a country on imports and exports.
CY:Container Yard (a place where FCL shipments and empty containers will be assumed by the customer or be delivered by the ship owner to the customer)
DAF (DELIVERED AT FRONTIER): The seller has fulfilled his obligation when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The term 'frontier' may be used for any frontier including that of the country of export. Therefore, it is important that the frontier in question be defined precisely by always naming the point and place in the term. The term is generally used when goods are to be carried by rail or road, but may be used for any mode of transport.
Dangerous Goods:Commodities classified by IATA according to its nature and characteristic in terms of the effect of its danger to carrier's flying safety.
Data Privacy: eBay's collection of personal information in connection with the Program is governed by the privacy policy that applies to your use of the eBay.com website or, as applicable, another eBay international site. However, in order for Pitney Bowes to provide you with the Services that you are requesting under the Program, Pitney Bowes requires certain personal information in addition to your order information, including, but not limited to: your name, user ID, address, email address, telephone number and, in certain countries, national identification information (for example, internal passport information in Russia) and/or tax identification information (for example, the Taxpayer's Registry for Individuals in Brazil). You are responsible for the accuracy of this information and acknowledge that you are authorized to provide this information for the purpose of delivering your GSP Item to you or your designee. By agreeing to these Terms, you direct eBay to provide this personal and order information to Pitney Bowes on your behalf so that Pitney Bowes may provide you with the Services that you are requesting under the Program. You acknowledge that Pitney Bowes may disclose this information, however collected, to its affiliates, service providers, and other third parties (such as customs and revenue authorities) as necessary to perform the Services that you have requested (for example, providing your name and address information to customs brokers and shipping carriers so that they may clear customs on your behalf and deliver your order to you). Pitney Bowes, its affiliates, and/or its service providers may contact you directly in order to collect or confirm certain personal and/or order information. Your personal and order information will be collected, used, and disclosed by Pitney Bowes only for the purpose of providing the Services in accordance with Pitney Bowes's privacy policy, which may be found here if you are buying an item located in the US, and may be found here if you are buying an item located in the UK, with the exception that Pitney Bowes shall not provide, rent, sell or otherwise share the foregoing information for marketing purposes. eBay does not control the privacy policies of Pitney Bowes, its affiliates, or its service providers, and you are subject to the privacy policies of those parties, as applicable. If you reside in Brazil and you have previously provided tax identification information (such as your Taxpayer's Registry for Individuals) to PayPal, you authorize the PayPal entity that provides the PayPal services to you to provide this information to eBay at eBay's request.
DDP (DELIVERED DUTY PAID): Similar to DDU however in this case the seller is responsible for delivering the goods in the named place in the country of importation, all costs and risks in bringing the goods to import destination including duties, taxes and customs
DDU (DELIVERED DUTY UNPAID):The seller is required to deliver the goods to the named place in the country of importation. The seller is responsible for costs and risks involved in bringing the goods to the import destination (excluding duties, taxes) and arranging customs formalities. This term may be used irrespective of the mode of transport.
Debit Statement:A notification showing client’s debits.
Declarations: All custom declarations are made by Pitney Bowes for your benefit and as your direct agent or, for items located in the UK, for the benefit of the Seller as the direct agent of the Seller, and you will be the "declarant" for the purposes of any customs declaration on import . As declarant you will be the legally declared importer and responsible for the accuracy of the information provided.
DELIVERED AT FRONTIER (DAF):This term means that the delivery obligation of the seller ends when the goods’ export customs cleared and kept at disposal before adjacent country’s customs gate in the place of point determined along the border.The term frontier may be used for any border including the borders of the exporting country. Therefore it has vital importance that the term exactly describes the border mentioning the point or place anytime.
DELIVERED DUTY PAID (DDP):This term means that the delivery obligation of the seller ends when the goods presented at the disposal of the buyer within the importing country. Seller assumes risks and costs including taxes, duties and other charges required to perform import customs clearance, to transfer the goods to that point. EXW term means the least obligations for the seller as DDP term means the most obligations for the seller.
DELIVERED DUTY UNPAID (DDU):This term means that the delivery obligation of the seller ends when the goods presented at the disposal of the buyer within the importing country. Seller assumes the costs and risks related to completing customs formalities and transporting the goods up to that point (excluding import taxes, duties and charges).Buyer assumes additional costs and risks caused due to the customs clearance of the goods are not completed in time.If the parties would like the seller assume customs formalities and all related costs and risks, they must specify this issue by adding exact wordings.If the parties would like to add sellers’ obligations some expenses required for the importing the goods (such as VAT), they must specify this issue by adding exact wordings. This term may be used as independent from transport means.
DELIVERED EX QUAY (Duty Paid ) (DEQ):(Destination port --------- is mentioned) The term “Delivered Ex Quay” means the seller delivers the goods at the disposal of buyer before custom clearance for import on dock (pier). The seller must assume all costs and damages regarding the goods are transported to destination port and dock (pier). The term DEQ ensures the buyer to assume the payment of all taxes, duties and other charges for import customs clearance and all related transactions for the goods.This is opposite of previous Incoterms versions stipulating that customs clearance should be done by the buyer which is required for import.However if parties agrees to add import related costs to the obligations of the seller partially or completely, it must be clarified with an explanation in the sales contract.This term may be used only when the goods will be delivered by inland marine transport or multiple carriages to destination point unloading to the pier from the vessel. Nevertheless if the parties would like to add damages and costs related to transferring the goods from the pier to anywhere within or outside the port, DDU or DDP terms must be used.
DELIVERED EX SHIP (DES):This term means that the delivery obligation of the seller ends when the goods arrives the destination port, ship board determined before customs clearance is performed at the disposal of the buyer. Seller assumes all risks and costs of the goods required until arrival port determined. This term may be used only for ocean or inland vessel carriage.
Delivery Instructions:Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused with Delivery Order which is used for import cargo.
Delivery Order:A permit from the agent, shipper or port authority for the release of goods. A document issued by or on behalf of the carrier authorizing the release of import cargo identified theron and manifested under a single Bill of Lading.
Demurrage:Excess time taken for loading or unloading a vessel, thus causing delay of scheduled departure. Demurrage refers only to situations in which the charter or shipper, rather than the vessel's operator, is at fault.
The above details describes about terms called in custom clearance such as customs union bases,customs value,delivered at frontier,delivered duty unpaid,delivered at frontier, delivered ex quay,delivered ex ship,demurrage 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 central excise such Wellhead Protection Area,Zero Emissions Vehicle,Weigh-in-Motion
Related posts about free online training on export and import trade :
How to import your product?
Click here to know HS code of your product
What is the ITC code (Indian Tariff Code) of your product?
Dispute settlement in international business
Export Promotion Councils and Commodity Boards, product wise
Foreign Trade Agreements of India
MEIS scheme for Indian Exporters
India Chile Preferential Trade Agreement
India MERCOSUR Preferential Trade Agreement
India Afghanistan Preferential Trade Agreement
How to open an LC? Procedures to open a Letter of Credit
How to overcome credit risk in export business?
How to overcome Negative thoughts in export business
How to prepare an Export Invoice. Contents of Export commercial Invoice:
How to prepare an Export Packing list. Contents of Export Packing list
How to prepare Purchase order