Glossary of customs terms

Customs duty calculated as a percentage of the import value.

A person or business retained to deal with customs for you and submit declarations on your behalf.

Transport document used when goods are shipped by air freight. It acts as a receipt for the goods being shipped, and confirms the terms and conditions of the contract of transport

An additional Customs Duty on imports. Chargeable to certain products originating from certain countries or manufacturers. It provides protection against the dumping of goods at prices substantially lower than the true market value.

Works to safeguard animal and plant health in the UK.

Trade agreement between the European Union and Turkey.

A set of documents used when goods are despatched internationally as temporary exports (for instance for exhibitions), the carnet replaces formal customs clearance formalities on entry into and exit from each country. It is used to avoid the need to pay import duties.

Awarded to companies who demonstrate a high standards of supply chain security and / or compliance in customs matters.

Authorised consignee status required to end movement of goods under transit at your own premises.

Authorised consignor status required to start movement of goods under transit at your own premises.

A legal document between the shipper and a transportation company that confirms the terms of a contract under which freight is to be moved by sea between specified points for a specified charge.

Goods covered by health certificates must be presented at the BCP when they first enter the customs territory.

The law enforcement command within the Home Office. It secures the UK border by carrying out immigration and customs controls for people and goods entering the UK.

A person or business retained to deal with customs for you and submit declarations on your behalf.

If a buying agent represents its customers in the UK to locate and obtain goods from a third country seller, the buying commission does not form part of the customs value.

The UK import entry is known as the C88 (also referred to as a SAD, Single Administrative Document). The C88 is a plain paper document that is normally submitted electronically and has a number of electronic responses following its transmission. Contains the import declaration data as submitted.

Under the carriage and insurance paid to Incoterms®, delivery of the goods takes place, and risk transfers from seller to buyer, at the point where the goods are taken in charge by a carrier.

Under the carriage paid to Incoterms®, the seller is responsible for arranging carriage to the named place, but not for insuring the goods to the named place.

This certificate proves that goods have been manufactured or processed in a particular country. A Certificate of Origin is usually required for overseas customs clearance and can determine the level of duties payable.

The annual legislation published by the European Commission as a basis for the European Union’s customs tariff.

A code for classifying goods for import and export purposes. Based on the WCO's Harmonized System.

An agreement to cover a customs debt to guarantee the duty payment.

Who the goods are being sent to (the importer).

Who the goods are being sent by (the exporter).

Typically, controlled military and dual-use items that require an export licence.

Transport document that gives information about the cargo that is being transported by road in European, as well as additional countries in Asia and Africa.

Under the cost and freight Incoterms®, seller arranges and pays for transport to named port. Seller delivers goods, cleared for export, loaded on board the vessel.

Under the cost of freight and insurance Incoterms®, seller arranges and pays for transport to named port. Seller delivers goods, cleared for export, loaded on board the vessel. Seller also arranges and pays for insurance.

Customs duty imposed on goods which have received government subsidies in the originating or exporting country.

A person or business retained to deal with customs for you and submit declarations on your behalf.

A person or business retained to deal with customs for you and submit declarations on your behalf.

Computerised operating system and interface used in the UK by H.M. Revenue & Customs which is taking over responsibility for controlling and recording all of the UK’s international trade movements from Customs Handling of Import Export Freight (CHIEF).

A tax levied on goods imported. Customs duty is there to raise revenue, and/or to protect domestic industries from (subsidised) competitors abroad.

Two stage declaration method that can be used when importing goods from third countries. A simple initial message is supplementary by a full declaration at the end of the month.

Computerised operating system and interface used in the UK by HM Revenue & Customs. Responsible for controlling and recording all of the UK’s international trade movements, being phased out in favour of Customs Declaration Service (CDS).

Used to identify the reason for the export or import and therefore the relevant customs regime.

Most imports are brought into free circulation, i.e. tax paid. Alternatively, there are four customs special procedures covering transit, storage, specific use and processing.

Enables an export declaration to be made inland.

Trade agreement between two or more countries, who do not to impose tariffs on each other's goods and agree to impose common external tariffs on goods from countries outside their customs union.

This is the value the customs authorities will charge duty on, based on the transaction value + insurance + freight to the border.

Costs that must be added to the customs value. For example, tooling, free of charge supplies to the seller, etc.

Costs that can be removed from the customs value. For example, domestic freight costs, buying commissions, financial arrangements such as a discount for paying early and quantity discounts open to anyone.

Used for the safe transport of hazardous goods.

The declarant status indicates the type of representation for a customs declaration. It shows if a business is acting on its own behalf, or if a direct or indirect representative is completing the customs declaration.

All goods leaving or entering a customs territory must be declared to the customs authorities. The declaration is a customs form completed and submitted by the importer/exporter.

The main unique consignment reference (UCR) is known as the declaration unique consignment reference (DUCR) and is mandatory for all export declarations.

Set up with HM Revenue & Customs, subject to an agreed maximum limit. Usually, this is sufficient to cover a full month's customs duty liability. With the advent of postponed VAT accounting, it is generally not used to account for import VAT.

This is the unique reference number issued to a business to identify their deferment account.

Under the delivered at place Incoterms®, the seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving means of transport, at the named place.

Under the delivered at place unloaded Incoterms®, the seller is responsible for arranging carriage and for delivering the goods, unloaded from the arriving means of transport, at the named place.

Under the delivered duty paid Incoterms®, the seller is responsible for arranging carriage and delivering the goods at the named place, cleared for import and all applicable taxes and duties paid.

Performs checks on fruit and vegetables, plants, fish and fish products.

A customs intermediary acting in the name of, and on behalf of, another business.

Goods which have a valid commercial or civilian function, but which could also be used for strategic, or military purposes. They are subject to export controls.

A tax payable when importing or exporting goods.

Based on allowed use, a business is able to pay less or no duty on imports.

Goods imported into the UK receive an entry acceptance form (E2) from CHIEF.

Economic Operators Registration and Identification (EORI) number

Allows the release goods to CFSP using a simplified data set via an entry in their electronic commercial records.

In order for the goods to even leave a country, the carrier must lodge an ENS (sometimes called a “safety and security declaration”) to confirm which goods are bring carried.

A unified trade and monetary body of 27 member states. It eliminates all border controls between members and allows the free flow of goods and people.

Under the ex works Incoterms®, a seller is only responsible for supplying goods at the nominated place (usually their premises), and plays no further part in the transportation process.

Excise duty is chargeable on specific goods; alcohol, hydrocarbons, tobacco and some energy products.

Export declaration, export accompanying document.

This is auto created by the EAD and alerts the export border that you are on your way.

Administers the UK's system of export controls and licensing for military and dual use items.

An export health certificate (EHC) is an official document that confirms your export meets the health requirements of the destination country. Used for products of animal origin.

Transport documents, parcels and freight across the world in a specific time frame. They can deal with customs for you, as part of their delivery.

An alternative to duty deferment, there must be enough money kept in the account to cover duty charges and a guarantor may be required.

Under the free alongside ship Incoterms®, seller delivers goods, cleared for export, alongside the vessel at a named port, at which point risk transfers to the buyer.

Under the free carrier Incoterms®, a seller is responsible for supplying goods at the nominated place (often their premises) and is responsible for the export clearance.

Goods that have been produced in the customs territory, or that have been imported and released for “free circulation” after payment of the import duty to which they are liable.

Because there is no payment to the supplier, there is no basis for customs valuation. As an alternative, the importer may use the pre-sold price to its customer or it must use one of the remaining five methods of valuation.

If the supplier includes in the shipment a quantity of items “free of charge”, they are deemed to be included in the overall sale price for that consignment. Goods shipped on their own must be assigned the correct value.

Usually used in conjunction with the name of a place or port. Under FOB Incoterms®, a seller is responsible for all costs and bears the risk until the goods are placed on board a vessel in the nominated port in the country of export.

An agreement between two or more countries to trade freely with each other while still being able to set their own tariffs on goods from the rest of the world.

A person or business retained to deal with customs for you and submit declarations on your behalf.

A set of six rules provided to ensure uniform legal interpretation of the Harmonized System for the accurate classification of goods.

Unilateral trade agreements designed by developed countries to support the economies of developing and least developed countries.

For legal purposes, classification shall be determined according to the terms of the headings within the tariff and any relative section or chapter notes.

Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article.

Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only, those headings are to be regarded as equally specific in relation to those goods.

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character.

When goods cannot be classified by reference to 3 (a) or 3 (b), they shall be classified under the heading which occurs last in numerical order.

Goods which cannot be classified in accordance with the rules 1, 2 and 3 shall be classified under the heading appropriate to the goods to which they are most akin.

Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith.

Packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods.

For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes.

GVMS will link declaration references together. This means the person moving goods only needs to present one reference at the frontier to prove that all their goods have pre-lodged declarations. It will also link the movement of goods to declarations, meaning they can be automatically arrived and departed by UK Customs in near-real-time.

At border locations operating a pre-lodgement model and using the Goods Vehicle Movement Service to control goods, pre-lodged declaration references will need to be linked together within a single GMR per vehicle.

Goods imported into the UK receive a pre-lodged entry acceptance form (H2) from CHIEF.

The Harmonized Commodity Description and Coding System generally referred to as "Harmonized System", or simply "HS", is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). It comprises about 5,000 commodity groups each identified by a six-digit code.

Her Majesty’s Revenue & Customs.

HM Revenue & Customs’ penalty system aims to encourage accurate declarations and compliance with the law. Civil penalties can range from a minimum £250 per offence up to a maximum of £2,500.

Most import clearing agents will enter goods to customs under home use. This declares that the goods are to remain in the customs territory.

A document required and issued by some national governments authorising the importation of goods into their individual countries.

The UK version of TRACES, an online platform to notify enforcement authorities about imports of live animals, animal products and high risk food and feed not of animal origin into the UK.

International Commercial Terms, known as Incoterms®, are a series of trade terms that set out responsibilities of both parties in a contract of sale involving carriage of goods. They are frequently abbreviated to 3 letter terms.

A customs intermediary acting in their own name but on behalf of another business. They are jointly responsible for the declaration and any duty payable.

The Intrastat system collects statistics on the trade in goods within the EU. All VAT-registered businesses trading with other EU member states must provide details of the total value of goods dispatched to other EU member states and the total arrivals of goods acquired from other EU member states, on their VAT return.

UK ports and airports are generally linked to the customs computer systems. Being inventory-linked enables these ports/airports to handle the presentation, arrival and departure of goods on HMRC's behalf.

A customs special procedure that allows the temporarily import of goods for processing/repair and re-export with duty relief.

When you create a transit you generate an LRN. The LRN is presented at the office of departure, normally the export port. Customs check and authenticate it and promote the LRN in to an approved MRN and the goods are free to move. Can be authenticated away from the port if using Authorised Consignor approval.

A group of declaration unique consignment references (DUCRs) into one MUCR reference number. A container could typically have 1 MUCR linked to 10 DUCRs.

The term transaction value applies and refers to the price to be paid or actually paid for imported goods. The starting point for its determination is the purchase price, which must be corrected if important elements are missing.

Value based on the customs value of identical goods, produced in the same country as those being imported. Can only be used if method 1 cannot.

Value based on the customs value of similar goods, produced in the same country as those being imported. Can only be used if method 1 and 2 cannot.

Calculate value based on the selling price of the goods (or identical or similar goods) in the UK, less UK costs, e.g. duty and storage. Can only be used if 1, 2 and 3 cannot.

Calculate value based on the manufactured price of the goods, plus usual profit and transport to the UK. Can only be used if 1, 2 and 3 cannot. Can be elected over method 4.

Calculate value based on adapting one of the previous methods to fit unusual circumstances.

This is an additional four-digit code added to the ten-digit standard classification code, relating to agricultural duties. It describes a specific composition of certain agricultural products, based on a percentages of sucrose, starch, milk fat, etc.

The principle of most favoured nation treatment means that, unless a preferential agreement is in place, the same rate of duty, on the same goods, must be charged to all WTO members equally.

A number issued to a consignment after importing customs have conducted safety and security validation of the data. The MRN confirms that the goods are allowed to be shipped.

The system for declaring all exports from the UK to third countries to customs. NES operates as an electronic interface with CHIEF.

Confers an “economic nationality” on goods. It is used for determining the origin of products subject to all kinds of commercial policy measures (such as anti-dumping measures and quantitative restrictions) or tariff quotas.

Allows the export of specific goods by any exporter to a range of destinations. Open licences may be available for less restricted controlled items.

The “economic nationality” of goods, as determined by the rules of origin.

A customs special procedure that allows the temporarily export of free circulation goods for processing/repair and re-import with full or partial duty relief.

A phytosanitary certificate (PHYTO) is an official document that confirms your export meets the health requirements of the destination country. Used for products of plant origin.

The UK import entry is known as the C88 (also referred to as a SAD, Single Administrative Document). The C88 is a plain paper document that is normally submitted electronically and has a number of electronic responses following its transmission. Contains the import declaration data as submitted.

Confers certain benefits on goods traded between particular countries. One aim of a free trade agreement (FTA) is to give preferential access for goods between the parties in the agreement. This is done by significantly reducing, often to zero, the duty rate on goods originating in partner countries.

Goods entered to CHIEF or CDS prior to arrival.

Goods pre-lodged for import into the UK receive an entry acceptance form (H2) from CHIEF.

Provides more favourable access to certain products from the participating countries. This means that manufactured goods may enter those countries at a lower customs duty rates.

Imports of plant health controlled goods and/or fruit and vegetables require advance notifications to the Animal and Plant Health Agency (APHA) via PEACH.

A set of regulations preventing goods from being exported or imported. This is often connected with embargoes and sanctions, safety of persons, flora and fauna which aim to maintain or restore international peace and security.

An import quota is a limit on the amount of certain goods that can be brought into a customs territory.

REX allows an invoice declaration to be used as evidence of origin. To be entitled to make out a statement on origin, a business will have to be registered by the customs authorities (EU Only).

A relief from import duties that can be claimed when free circulating goods that were previously exported out of the customs territory/UK are being reimported in an unaltered state. The goods must be reimported within 3 years of export, although an extension may be granted.

Royalty or licence fees payable to the seller are to be included in the customs value as long as they relate to the imported goods and are paid as a condition of that sale.

In order for the goods to even leave a country, the carrier must lodge an ENS, called a “safety and security declaration”.

The Agreement on the Application of Sanitary and Phytosanitary Measures sets out the basic rules for food safety and animal and plant health standards. Related controls are applied on import.

If a selling agent takes orders from customers in the UK on behalf of a third country seller, the selling commission forms part of the customs value.

The UK import entry is known as the C88 (also referred to as a SAD, Single Administrative Document). The C88 is a plain paper document that is normally submitted electronically and has a number of electronic responses following its transmission. Contains the import declaration data as submitted.

These are customs values for fruit and vegetables derived from prices realised on sales in specified marketing centres in the UK. A variety of deductions are made from these prices to arrive at an average sterling value per 100 kilogram net for each product.

Allows the export of a quantity of specified goods to a specified consignee as set out in the licence.

The Strategic Export Control List is a consolidated list of strategic military and dual use items that requires authorisation before export is permitted.

Goods originate in the country where the last substantial or sufficient transformation occurred.

The classification code at the ten-digit level determined within the integrated tariff of the EU.

A code for classifying goods for import and export purposes. Based on the WCO's Harmonized System.

The UK Trade Tariff, there are section and chapter notes. These help direct the customs classification of the goods and are legally binding. They determine what is and is not included within a section or chapter.

Goods can benefit from a temporary suspension or reduction of customs duty, when they are not sufficiently available in the destination customs territory.

Used for goods temporarily imported for a specific use for a limited time, such as for an exhibition.

TRACES is the European Commission's online platform for sanitary and phytosanitary certification required for the importation of animals, animal products, food and feed of non-animal origin and plants into the European Union, and the intra-EU trade and EU exports of animals and certain animal products.

The price paid by the buyer when goods are sold by the seller in a normal commercial transaction. The standard basis for customs valuation.

The TAD will be issued by the office of departure or authorised consignor when the transit movement is started. It will show a barcode and the movement reference number (MRN) that will match the transit declaration. The paper document must travel with the goods.

When goods leave the UK, for example for export to Germany, they will pass through a number of other EU Member States, i.e. France. If the goods are lost during the movement, the authorities in the country of transit will call on the owner to pay any import charges. In order to ensure that any fees are paid, the transit must be covered by an approved guarantee.

The UK Trade Tariff sets out the duties and measures affecting the import, export and transit of goods to and from the UK. It has 3 volumes.

A reference number that businesses and customs use to identify boxes/packages being sent in a single consignment. Sometimes known as unique consignment indicator or unique consignment number.

Based on the value for duty, plus any duty, all incidental expenses such as commission, packing, transport and insurance costs incurred up to the goods’ first destination in the UK.

The value for import VAT adds in any import duties, levies and additional costs subsequent to the import leading to the delivery of the goods.

A form of transport document. Waybills are frequently issued by small parcel or express courier companies, although many operators no longer issue paper documents. The term “waybill” is also used as a generic term for an unspecified transport document.

A wholly origination good can originate in the country it was born, farmed, fished, mined, grown, dug out of the ground.

The World Customs Organization (WCO) represents 180+ customs administrations across the globe that collectively process approximately 98% of world trade.