Trade Compliance Glossary
Export, Import & Customs Terms Explained
Explore key trade compliance terminology covering export controls, import regulations, customs, tariffs, international trade, and compliance management.
A
AES (Automated Export System)
Anti-Boycott Regulations
Antidumping Duty (AD)
Ad Valorem Duty
Affiliated Party
Assists
Automated Commercial Environment (ACE)
The Automated Export System (AES) is the U.S. government's electronic platform for filing Electronic Export Information (EEI). Exporters use AES to report export shipments when required under the Foreign Trade Regulations (FTR).
U.S. regulations that prohibit companies from participating in or supporting unsanctioned foreign boycotts and require reporting of certain boycott-related requests.
A duty imposed on imported goods sold in the United States at less than fair value to protect domestic industries from unfair pricing practices.
A customs duty calculated as a percentage of the imported merchandise's value.
A related company or individual whose relationship may affect customs valuation or other trade compliance determinations.
Certain goods, services, or materials supplied by an importer to a foreign manufacturer for use in producing imported merchandise.
U.S. Customs and Border Protection's electronic platform for processing trade-related information.
B
BIS (Bureau of Industry and Security)
Bonded Warehouse
Broker
Binding Ruling
Bill of Lading (B/L)
Buy American Requirements
An agency within the U.S. Department of Commerce responsible for administering and enforcing the Export Administration Regulations (EAR).
A secured warehouse where imported goods may be stored under customs supervision without immediate payment of duties until they are entered into U.S. commerce or re-exported.
A licensed customs broker authorized to conduct customs business on behalf of importers.
An official determination issued by a government agency regarding the treatment or classification of a specific transaction or product.
A transportation document identifying goods being shipped and establishing terms between the shipper and carrier.
Rules that establish domestic content or sourcing requirements for certain U.S. government purchases.
C
CCL (Commerce Control List)
CBP (U.S. Customs and Border Protection)
Certificate of Origin
Commodity Classification
Commodity Jurisdiction (CJ)
Country of Origin
Customs Broker
Customs Valuation
A list maintained by BIS that identifies dual-use and commercial items subject to export controls under the EAR.
The federal agency responsible for enforcing customs laws, facilitating lawful international trade, collecting duties, and securing U.S. borders.
A document certifying the country where goods were manufactured or substantially transformed. It may be required to claim preferential tariff treatment under Free Trade Agreements.
The process of determining whether a product falls under the Commerce Control List (CCL), United States Munitions List (USML), or another regulatory classification.
A formal determination by the U.S. Department of State that establishes whether an item is subject to ITAR or the EAR.
The country where merchandise was produced, manufactured, or substantially transformed under applicable origin rules.
A licensed professional authorized to conduct customs business for importers and other parties.
The process of determining the customs value of imported merchandise for duty assessment.
D
DDTC (Directorate of Defense Trade Controls)
Deemed Export
Deemed Reexport
Defense Article
Defense Service
Denied Persons List
Destination Control Statement (DCS)
The office within the U.S. Department of State responsible for administering ITAR and overseeing exports of defense articles, defense services, and technical data.
The release of controlled technology or technical data to a foreign national within the United States. Under export control laws, this may be treated as an export to the individual's home country.
Release of controlled technology or source code to a foreign person in a country outside the United States that may constitute a reexport.
An item designated on the United States Munitions List (USML) and controlled under ITAR.
Assistance, training, or technical support related to defense articles, as defined under ITAR.
BIS list identifying persons prohibited from participating in certain export transactions.
Statement required on certain export documentation identifying restrictions on the destination and disposition of controlled items.
E
EAR (Export Administration Regulations)
EAR99
ECCN (Export Control Classification Number)
Electronic Export Information (EEI)
Embargo
End User
End Use
Export License
Export Control Reform Act (ECRA)
U.S. regulations administered by BIS that control the export, re-export, and transfer of commercial and dual-use items.
A designation for items subject to the EAR that are not specifically listed on the Commerce Control List. While many EAR99 items do not require a license, one may still be required depending on the destination, end user, or end use.
A five-character alphanumeric code assigned to items listed on the Commerce Control List to identify applicable export controls.
Export shipment information submitted electronically through the Automated Export System (AES) when required by the Foreign Trade Regulations.
A government-imposed restriction or prohibition on trade with specific countries, entities, or individuals.
The individual, company, or organization that will ultimately receive and use exported goods or technology.
The intended purpose or application of an exported item.
Official authorization issued by the U.S. government permitting the export, re-export, or transfer of controlled items under specified conditions.
U.S. law providing statutory authority for the U.S. export control system administered by BIS.
F
Foreign Direct Product Rule (FDPR)
Foreign Trade Regulations (FTR)
Foreign Trade Zone (FTZ)
Free Trade Agreement (FTA)
Forced Labor
FTA Qualification
EAR rule that can make certain foreign-produced items subject to the EAR because of specified U.S.-origin technology, software, or equipment.
Regulations governing the reporting of U.S. exports through AES. U.S. regulations governing the reporting of export shipments through the Automated Export System.
A designated area within the United States where imported merchandise may be admitted without immediate payment of customs duties until it enters U.S. commerce.
Agreement between countries that reduces or eliminates certain trade barriers and may provide preferential tariff treatment.
Labor obtained through coercion or other prohibited practices; U.S. trade laws restrict the importation of goods produced with forced labor.
Process of determining whether goods meet the applicable requirements to receive preferential treatment under a free trade agreement.
G
General Order
General License
General Prohibition
Goods
Government Procurement
Customs procedure under which merchandise may be subject to specific government instructions or restrictions.
Authorization that permits certain transactions without obtaining an individual license when applicable conditions are satisfied.
A category of prohibited activity under the EAR that restricts certain exports, reexports, or conduct.
Tangible merchandise or products involved in an international trade transaction.
Acquisition of goods or services by government entities subject to applicable sourcing and trade requirements.
H
Harmonized System (HS)
Harmonized Tariff Schedule (HTS)
HTS Classification
HTSUS
An internationally standardized system developed by the World Customs Organization (WCO) for classifying traded goods.
The U.S. tariff schedule used to classify imported goods and determine applicable duty rates.
Process of assigning the appropriate HTS number to imported merchandise.
Harmonized Tariff Schedule of the United States.
I
Incoterms® 2020
Importer of Record (IOR)
Import Entry
Import Compliance
International Traffic in Arms Regulations (ITAR)
Internal Compliance Program (ICP)
International Commercial Terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade transactions.
The individual or entity responsible for ensuring imported goods comply with all applicable customs laws and regulations.
Formal information submitted to CBP to declare imported merchandise.
Processes and controls used to ensure imported goods comply with customs, tariff, valuation, origin, and other applicable requirements.
U.S. regulations governing the export and temporary import of defense articles, defense services, and related technical data.
Documented processes used by an organization to manage and monitor trade compliance obligations.
J
Joint Product Classification
Jurisdiction Determination
Classification analysis involving multiple products or components that may require coordinated customs or export-control determinations.
Assessment of which government agency or regulatory regime has authority over a product, technology, service, or transaction.
K
Know Your Customer (KYC)
Key Management Personnel
Known Shipper
Due diligence process used to understand customers, counterparties, ownership, activities, and potential compliance risks.
Individuals responsible for directing or overseeing an organization's trade compliance activities.
A party identified and validated within applicable transportation or export security procedures.
L
License Exception
License Requirement
License Determination
License Exception ENC
Letter of Credit
Authorization under the EAR allowing certain exports, reexports, or transfers without obtaining an individual export license when all applicable conditions are met.
Regulatory requirement to obtain government authorization before conducting a specified transaction.
Analysis used to establish whether an export, reexport, or transfer requires a license.
EAR authorization applicable to certain exports and reexports of encryption items.
Financial instrument issued by a bank to facilitate payment in an international trade transaction.
M
Material Change
Military End User (MEU)
Military End Use
Most-Favored-Nation (MFN) Duty Rate
Multilateral Export Control Regime
Change to a transaction, product, party, destination, ownership, or other circumstance that may affect compliance obligations.
Certain foreign military-related entities subject to specific export restrictions under the EAR.
Certain activities involving military applications that may trigger additional export licensing requirements.
General tariff rate applicable to qualifying imports when no preferential rate applies.
International arrangement through which participating countries coordinate controls over sensitive goods, technology, and activities.
N
National Security Controls
NLR (No License Required)
Nonresident Importer
NAICS Code
North American Free Trade Agreement (NAFTA)
Export controls intended to protect U.S. national security interests.
Export notation indicating that a license is not required based on the applicable EAR analysis, subject to all other restrictions.
Foreign entity that acts as the importer for customs purposes in another country.
Industry classification code used to identify business activities and sectors.
Former trade agreement between the United States, Canada, and Mexico, replaced by USMCA.
O
OFAC (Office of Foreign Assets Control)
An office within the U.S. Department of the Treasury that administers and enforces U.S. economic and trade sanctions.
Origin Marking
Country-of-origin marking required on imported merchandise under applicable customs rules.
Order of Review
Structured process used to determine the appropriate export control classification under the CCL.
Overpayment of Duties
Situation in which an importer pays more customs duties than required.
P
Part 744 Controls
EAR provisions imposing additional restrictions based on end users, end uses, destinations, or other specified concerns.
Power of Attorney (POA)
Authorization allowing a customs broker or other representative to act on behalf of an importer or exporter.
Preferential Tariff Treatment
Reduced or eliminated duty treatment available when goods meet applicable trade agreement requirements.
Product Classification
Process of assigning the correct regulatory classification to a product for customs or export control purposes.
Prohibited End Use
Activity for which an export, reexport, or transfer is restricted or prohibited under applicable regulations.
Prohibited Party
Individual or organization subject to restrictions that may prohibit or limit transactions.
Q
Quota
Government-imposed limit on the quantity or value of particular goods that may be imported during a specified period.
Quota Classification
Determination of whether imported merchandise falls within an applicable tariff-rate or absolute quota.
Quota Entry
Customs entry filed against an available quota allocation.
Qualified Supplier
Supplier that has been evaluated and approved against applicable commercial, regulatory, and compliance requirements.
R
Restricted Party Screening (RPS)
The process of screening customers, suppliers, intermediaries, and other parties against government restricted party lists to prevent prohibited transactions.
Reexport
Shipment or transmission of an item subject to the EAR from one foreign country to another foreign country.
Reexport License
Government authorization required for certain controlled reexports.
Recordkeeping
Maintenance of documents and records required to demonstrate compliance with applicable trade regulations.
Routed Export Transaction
Export transaction in which the foreign principal party in interest authorizes a U.S. agent to facilitate the export.
Reason for Control
Specific regulatory basis identified for controlling an item under the CCL.
S
Schedule B Number
U.S. export classification number used for statistical reporting of exported goods.
Sanctions
Government restrictions imposed on transactions involving specified countries, entities, individuals, or activities.
Specially Designated National (SDN)
Person or entity identified by OFAC as subject to blocking or other sanctions.
Substantial Transformation
Customs concept used to determine whether processing changes the origin of a product.Maintenance of documents and records required to demonstrate compliance with applicable trade regulations.
Screening
Process of checking parties, transactions, destinations, and other information against applicable compliance restrictions.
Section 301 Tariffs
Section 232 Tariffs
Supply Chain Due Diligence
Additional U.S. tariffs imposed on certain imports under Section 301 of the Trade Act of 1974.
Additional U.S. tariffs or related measures applied to certain imports based on national security determinations.
Process of evaluating suppliers, sourcing, ownership, origin, and compliance risks throughout a supply chain.
T
Technology Control Plan (TCP)
Transaction Value
Tariff
Tariff Classification
Tariff Rate Quota (TRQ)
Technical Data
Trade Compliance Program (TCP)
A documented set of procedures designed to prevent unauthorized access to controlled technology or technical data.
The primary method used by CBP to determine the customs value of imported merchandise, generally based on the price actually paid or payable.
Government-imposed duty or tax on imported goods.
Process of determining the correct tariff classification for imported merchandise.
System allowing a specified quantity of goods to enter at a lower tariff rate, with higher rates applying above the quota.
Information subject to specific export controls, including certain technical information related to defense articles under ITAR.
Organization-wide policies, procedures, controls, and training designed to manage international trade risks.
U
United States Munitions List (USML)
USMCA
Ultimate Consignee
Ultimate End User
Unverified List (UVL)
UFLPA (Uyghur Forced Labor Prevention Act)
The list of defense articles, defense services, and related technical data controlled under ITAR.
The United States-Mexico-Canada Agreement, a Free Trade Agreement that replaced NAFTA and establishes trade rules among the three countries.
Party identified as the final recipient of exported merchandise.
Person or entity that ultimately uses or benefits from an exported item.
BIS list identifying parties whose bona fides could not be verified during an end-use check.
U.S. law establishing measures to prevent imports made wholly or partly with forced labor from the Xinjiang region or involving covered entities.
V
Valuation
Value Added
Voluntary Self-Disclosure (VSD)
Verification
Process of determining the customs value of imported merchandise.
Increase in value resulting from processing, manufacturing, or other production activities.
Process through which a company voluntarily reports certain potential export control violations to the appropriate government agency.
Process of confirming the accuracy of information, classifications, parties, documentation, or compliance representations.
W
World Customs Organization (WCO)
Warehouse Entry
Wholly Obtained Goods
Withhold Release Order (WRO)
International organization that develops customs standards and supports cooperation among customs administrations.
Customs entry used for merchandise placed into a bonded warehouse.
Goods produced or obtained entirely within a particular country for purposes of applicable origin rules.
CBP action directing detention of merchandise suspected of being produced using forced labor.
X
X-Ray Examination
XML Electronic Filing
Export Control Cross-Reference
Customs inspection technique used to examine cargo without physically opening the shipment.
Electronic exchange of structured trade data using XML-based formats where supported by applicable systems.
Internal reference connecting product information with applicable export control classifications and regulatory requirements.
Y
Yarn-Forward Rule
Year-End Reconciliation
Yield Loss
Textile and apparel origin requirement under certain trade agreements requiring specified yarn and production processes to originate within qualifying countries.
Review of trade transactions, classifications, values, duties, and compliance records at the end of a reporting period.
Production material loss that may be relevant when evaluating assists, customs valuation, or manufacturing-related trade calculations.
Z
Zone Status
Zone Admission
Zone-to-Zone Transfer
Zone Restricted Merchandise
Customs status assigned to merchandise admitted into a U.S. Foreign-Trade Zone.
Process of bringing merchandise into a Foreign-Trade Zone under applicable CBP requirements.
Movement of merchandise from one Foreign-Trade Zone to another under applicable customs procedures.
Merchandise subject to specific restrictions regarding admission, handling, or disposition within an FTZ.