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Glossary of Trade Terms

international trade abbreviations and terms currently in use

Last updated 14 May 2012

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A00

EU tax code indicating customs duty

Classified Management Enterprises - AEO equivalent scheme in China

AAD

Administration Accompanying Document - used to control the movement of excise goods. Replaced by EMCS

AANZTA

ASEAN, Australia and New Zealand Trade Agreement

ACFTA

ASEAN + China Free Trade Agreement

ACP (1)

African Caribbean and Pacfic group of countries

ACP (2)

Accredited Client Programme - a system of authorising compliant and secure importers and exporters similar to AEO in countries such as the UAE

ADB

Asian Development Bank

Ad Valorem

According to value.

AEO

Authorised Economic Operator

AEO (C)

Customs Simplification only - approval under AEO scheme

AEO (S)

Supply Chain Safety & Security only - approval under AEO scheme

AEO (F)

Full approval under AEO scheme

AER

Anticipated Export Record (see ECS)

AES

Automated Export System (term used in USA)

AfDB

African Development Bank

AFTD

American Foreign Trade Definitions, out of date shipping terms not to be used.

AHTN

ASEAN Harmonised Tariff Nomenclature

Additional Information - an important field on the UK/EU customs entry

AICO

ASEAN Industrial Cooperation Scheme

AIFTA

ASEAN + India Free Trade Agreement

Air Express Operator

see also courier/ integrator

AIS

Automated Import System - part of ICS

AJCEP

ASEAN + Japan Common Effective Preference

AKFTA

ASEAN + S. Korea Free Trade Agreement

Ammunitions List – the German equivalent of our Military List

ALV

Automatic Licence Verification

AMPS

Administrative Monetary Penalty System - part of Canada's PIP scheme

AMS

AEO equivalent customs compliance scheme in Egypt

ANDEAN

Country Group - Bolivia, Colombia, Ecuador, Peru & Venezuela

APA

Advance Pricing Agreement, related to international customs valuation rules

APEO

The APEO scheme is a fish specific extensions to the AEO approval. Granted via DEFRA. Launched 2010

Approved Exporter

Approval to make invoice declarations in the place of issuing EUR1 forms

ASEAN

Association of South East Asian Nations (10 members) Brunei Darussalam, Burma/ Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam

ATAF

African Tax Administration Forum

ATIGA

ASEAN Trade in Goods Agreement

ATP

Autonomous Trade Preferences

ATR

Preference Movement Certificate (Turkey - EU Associate Trade Agreement)

AWB

Air waybill (air freight).

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B00

EU tax code indicating VAT

B/D

Banker's Draft (payment term).

B/E

Bill of Exchange (payment term).

BERR

Department for Business, Enterprise and Regulatory Reform (formerly the DTI now replaced by BIS)

BIA

British Importers Association - closed 1999

BIFA

British International Freight Association

BIP

Bond Insurance Policy - a UK Export Finance service

BIS (1)

UK Department for Business Innovations & Skills (new name for BERR from June 2009)

BIS (2)

USA Bureau of Industry and Security

B/L

Bill of Lading (sea freight).

Blue Line

AEO equivalent customs compliance scheme in Brazil

BOI

Binding Origin Information Ruling - a system of obtaining a ruling on the origin of goods, often required when preference is being claimed

Bonded Goods

Goods stored under the charge of customs, sealed until import duties are paid or goods taken out of the country.

Bonded Warehouse

Warehouse where bonded goods are stored.

Break Bulk

The dismantling of a large consignment into smaller lots for onward distribution to more than one customer.

BRICs

Terms first used in 2001 to describe the 4 major developing world markets - Brazil, Russia, India and China

BRIICS

OECD abbreviation adding Indonesia and South Africa to the normal BRIC acronym

BTI

Binding Tariff Information Ruling - a system of obtaining a definiative commodity code from customs for goods being imported

BTIA

Bilateral Trade and Investment Agreement

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C79

Monthly VAT statement issued by HMRC to show VAT paid on imports which can be reclaimed by the company under normal VAT procedures

C88 Form

The document reference number given in the UK to the SAD Form

CAA

Civil Aviation Authority.

CACM

Central American Common Market - comprised of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama

CACO

Central Asian Cooperation Organisation

CAD

Cash Against Documents (payment term).

CAIS

Central Amercian Integration System

CAN

Andean Community

CAP

Common Agricultural Policy

CARICOM

Caribbean Community

Carnet

Booklet issued by ICC to make customs clearance on temporary movements easier.

Carrier

The provider of the main means of transport in a shipment, e.g. airline, vessel operator, trucker.

CAS

Chemical Abstracts Service

CBD

Cash Before Delivery (payment term).

CBP

Customs and Border Protection Agency - USA Customs Authority

CBR

Carrier Baggage Voucher - similr to the MUCR but relates to shipments declared by small parcel express operators

C&F

Cost & Freight – very old abbreviation for the Incoterms ® rule CFR

CC (1)

Commodity code - an abbreviation used within the EU

CC (2)

Centralised Clearance - the future! Under this the trader or forwarder in the EU will decide which member state to make Customs declarations in regardless of the physical location of the goods

CCC (1)

Customs Co-operative Council

CCC (2)

China Compulsory Certification

CCIP

Customs Code Implementing Provisions

CCIQ

China Customs Inspection and Quarantine

CCL

Commerce Control List – USA EAR regulations

CCN

Common Communications Networks - part of ECS

CCOIC

China Chamber of International Commerce

CCP

Customs Civil Penalties

CCR

Customs Clearance Requests

CCS-UK

Cargo Community System-UK. The name given to the computerised cargo processing system operating in the UK major airports.

CCT

Central Community Transit - see CT below

CEFTA

Canada-Europe Free Trade Association Agreement

CE Mark

Conformité Européenne (European Conformity) - compliance procedure and mark

CEMA79

Customs & Excise Management Act 1979 - current UK law, under review for 2012

CEMAC

Economic and Monetary Community of Central Africa

CEPT

Common Effective Preferential Tariff

Certified

Document such as a CofO stamped by a Chamber of Commerce (also see legalised)

CES

Common Economic Space - established on the basis of the Customs Union of Belarus, Kazakhstan and Russia

CETA

Comprehensive Economic and Trade Agreement between EU and Canada

C.EU

Civil Aircraft End-Use procedure

CFR

Cost and Freight (an Incoterms ® 2000 and 2010 rule).

CFSP (1)

Customs Freight Simplified Procedure - simplified import entry procedure used in the UK

CFSP (2)

Common Foreign Security Policy – EC supply chain security scheme

CGC

Customs Golden Client scheme- the supply chain security accreditation scheme in Malaysia

CGEA

Community General Export Authorisation - the original EU version of an open licence applicable to dual-use strategic goods. Now replaced by UGEA (see below)

CHIEF

Customs Handling of Import/Export Freight.

CIAT

Inter-American Center of Tax Administrations

CIE

Customs Input Entry - a way of submitting customs declarations into CHIEF

CIF (1)

Cost, Insurance & Freight (an Incoterms ® 2000/ 2010 rule).

cif (2)

jargon - cost, insurance, freight: used to calculated customs duty in some countries

CIM

Conditions of international carriage of goods by rail.

CIP (1)

Carriage, Insurance paid to (an Incoterms ® 2000 / 2010 rule).

CIP (2)

Customs Information Papers

CIQ

China Inspection and Quarantine Services

CIS (1)

Commonwealth of Independent States (formed from the break up of the Soviet Union 1991/2)

CIS (2)

Carnet Indemnity Scheme

CITEX

Customs, International Trade & Excise (UK Customs)

CIVETS

Abbreviation used to describe significant markets for international trade growth (2010) - Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa

Clearing Agent

The party appointed to submit entries to customs authorities on behalf of the buyer will handle duty, VAT and other financial accruals on behalf of his client.

CMR

Conditions of international carriage of goods by road.

European Community combined nomenclature (based on Harmonised System adopted by EC).

COMESA

Common Market for Eastern and Southern Africa

COM/I

Commercial Invoice.

Commodity Code

Code used to identify goods under a tariff number

Consignee

Importer (Buyer) - destination address.

Consignor

Exporter (Seller) - party who instigates the export.

Consol (Consolidation)

Bulking together of several shipments to same destination to reduce cost.

Controlled Goods

Goods which are subject to control under the Export of Goods (Control) Order 2008.

CofO

Certificate of Origin

COTIF

Convention Concerning International Carriage by Rail (Convention relative aux transports internationaux ferroviaires)

Countertrade

A generic term to identify a reciprocal form of export contract involving barter and other methods of trading

Country of Departure

The country from which a means of transport departs.

Country of Destination

The country to which goods are transported as final country for delivery.

Country of Origin

Country in which the goods have been produced or manufactured.

Courier Company

see also integrator/ air express operator

CPC

Customs Procedure Code.

CPEI

Customs Procedures with Economic Impact - a whole range of special procedures giving traders faster clearance of goods, removing duty/VAT liabilities, or extending the period of time duty needs to be paid, eg IPR, OPR, Warehousing, End-Use

CPM

Cost Plus Method, related to international customs valuation rules

CPT

Carriage Paid to (an Incoterms ® 2000 and 2010 rule).

CQC

China Quality Certification Cenre

CRM (1)

Common Risk Management framework: EU scheme being adopted in all members states setting a standard system of risk management checks on freight. Will be essential when Centralised Clearance comes in. Also see RMF

CRM (2)

Customer Relationship Manager (HMRC officer responsible for your business activities)

CRR

Common Risk Rules (part of EU Security System)

CSA

Customs Self Assessment Programme - part of Canada PIP security accreditiation scheme

CSI (1)

Container Security Initiative

CSI (2)

Common Service Interface (part of ECS)

CSP

Community System Providers

CSR

Corporate Social Responsibility

Community Transit - see also NCTS

CTC

Change in TAriff Classification - qualifying criteria type under preferential trade agreements

C-TPAT

Customs + Trade Partnership Against Terrorism - an accreditation program for USA importers. To be extended to exporting companies so it can be used alongside the AEO scheme

CTS

Compliant Trader Schemes - AEO equivalent customs compliance scheme in Rwanda and Tanzania

CUP

Comparable Uncontrolled Price, related to international customs valuation rules

CUSDEC

Customs Declaration

CUSRES

Customes Response (from an import or export declaration)

Customs

Authority that polices and controls international trade statements, declarations and undertake safety and security checks

Customs 2013

The EU scheme to rewrite all customs regulations for the 2013 - delayed

Customs Regimes

Customs procedures available to traders and forwarders to simplify the movement of goods, declarations or to permit the suspension or waiver of customs duties, eg IPR, etc - see also CPEI

Customs Warehousing

A special regime that allows traders and forwarders to hold/ store goods without the need to complete full declarations at the time of arrival.

CWO

Cash with order (payment term).

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DAF

Delivered at Frontier (Incoterms ® Rule under the 2000 set but not in the 2010 terms)

DAN

Deferment Account Number

DAP

Delivered At Place - new term in Incoterms 2010 ® Rules

DAT

Delivered At Terminal - new term in Incoterms 2010 ® Rules

DDP

Delivered Duties Paid - an Incoterms ® Rule

DDU

Delivered Duties Unpaid (Incoterms ® Rule under the 2000 set but not in the 2010 terms)

Deferment

Credit account opened with HMRC so import duty and VAT is paid once a month not prior to the goods being released. Requires a bank guarantee to cover 2 months worth of duty/VAT spend. Also see SIVA

DEP

Designated Export Point - a place (not a port or airport) authorised by HMRC for the export clearance of freight

DEQ

Delivered ex Quay (Incoterms ® Rule under the 2000 set but not in the 2010 terms)

DES

Delivered ex Ship (Incoterms ® Rule under the 2000 set but not in the 2010 terms)

DESA

United Nations Department of Economic and Social Affairs

DESO

Defence Export Services Organisation (replaced by DSO)

DESP

Directorate of Export Services Policy

DfID

Department for International Development

DGN

Dangerous Goods Note

Direct Export

Goods exiting the UK for direct transport to a non-EU country, ie not travelling through any other member state (see also Indirect Export)

DNL

Do Not Load - possible instruction under ECS or ICS security systems

DPL

Denied Parties List (USA - EAR)

DPO

Documentary Proof of Origin

DR (1)

Direct Representation - the declarant (forwarder) acts as an agent on behalf of the importer/ exporter and therefore does not have any legal responsibility if errors are made. Unless an agent has written proof they are contracted as "DR" they will assumed to be acting under Indirect Representation (IR) by HMRC

DR (2)

Document Reference - an abbreviation used on customs entries before the title of a document used to support the presentation to customs, eg import licence

DSO

Defence and Security Organisation (part of UKTI)

DSP

Department of State Proforma - ITAR document/permit

DTA

Double Taxation Agreements

DTI (1)

Department of Trade & Industry - replaced by BIS

DTI (2)

Direct Trader Input

Dual-Use Goods

Goods not specifically designed, modified or adapted for military use but of a high technological level as listed in the Strategic Control List as defined by the Wassenaar Agreement. Meaning they require an export licence to leave the UK/EU

DUCR

Declarant's Unique Consignment Reference

DUEC

Dual-Use European Community - EU list of Wassenaar Arrangement controlled goods

Duty

Levy imposed on the landed value of goods imported. Controlled by the Customs Authorities the percentage is based on the commodity code applicable to the goods.

DVC

Delivery Verification Certificate

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PAge 2 of an import entry in the UK - shows duty/VAT paid and valuation details

e-AAD

Electronic version of the Administrative Accompanying Document required for excise movements see EMCS

EAC

East African Community - comprising Burundi, Kenya, Rwanda, Tanzania and Uganda

EAD

Export Accompanying Document for indirect exports to meet Security & Safety Regulations in the EU

EAEC

Eurasian Economic Community - Customs Union currently with Russia, Belarus and Kazakhstan (also known as EurAsEC)

EAR

Export Administration Regulations - USA equivalent to DUEC

EAR99

A category of goods under the USA Dual-use control list which are not normally subject to export licensing regulations but are controlled when being shipped to denied parties/destinations. Not to be confused with NLR

EAU

The Eurasian Union - economic and political union of Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation, Tajikstan and other post-Soviet states

E-BTI

Electronic Version of the BTI

EC (1)

European Community - term used to identify the group of countries for trade purposes

EC (2)

European Commission

ECCN

Export Control Classification Number - category of goods caught on the USA EAR dual-use list

ECGD

Export Credits Guarantee Department

ECN+

Explicit Congestion Notification (part of ECS)

ECO (1)

Export Control Organisation - part of BIS

ECO (2)

Economic Code - used in customs regimes to establish a company's right not to pay or suspend import customs duties

ECO (3)

Export Compliance Officer (usually used in USA)

ECOWAS

Economic Community of Western African States

ECS

Export Control System (nothing to do with export licences) - this is the EU safety and security control systems requiring pre-departure messages for all goods leaving the MS of the EU

ECS1

Fiscal control part of the ECS, replacing the manual SAD Copy 3 for indirect exports by the EAD - happened 1st July 2009

ECS2

Introduced the Pre-Departure Safety and Security Measures in the EU

ECU

European Currency Unit

EDB

Economic Development Board

EDI

Electronic Data Interchange

EEA

European Economic Area - a group of countries using the same fiscal regulations, comprises the EU member states plus Iceland, Liechtenstein and Norway

EFTA

European Free Trade Association - Iceland, Liechtenstein, Norway and Switzerland

ELA

Export Licence Applications

EMCS

Excise Movement Control System

ENO

Entry Number - the formal customs declaration reference number

ENS

Entry Summary Declaration (ICS) - see also ESD

Economic Operator - what the EU calls companies who trade internationally (see also EORI and AEO)

EORI

Economic Operator Registration Identification number - used in the EU (also see AEO). In the UK it evolved from the VAT and TURN

EPA

Economic Partnership Agreements - are a scheme to create a Free Trade Area (FTA) between the EU and the ACP countries

EPCI

Enhanced Proliferation Control Initiative (EAR proliferation rules)

EPU

Entry Processing Unit - the point where goods are declared to EU Customs or where specific activities take place

e-RPA

Electronic Version of RPA

ERTS

Enhanced Remote Transit Shed - specially authorised warehouses approved to hold freight prior to customs clearance. Tends to be a freight forwarders' premises

ESCAP

United Nations Economic and Social Commission for Asia and the Pacific

ESD

Exit Summary Declaration - the export declaration under ECS (see also ENS)

ESL

Export Sales List - used in conjunction with the Intrastat report. It states the EU VAT registration numbers of companies supplied goods from the UK. Issued monthly

ETA

Estimated Time of Arrival

ETS

Estimated Time of Shipment

EU (1)

European Union - legal name of the EC

EU (2)

Abbreviation used by EU Customs to express the use of any End-Use duty relief procedures - see also C-EU and M-EU

EUR1 Form

European Preference/Movement Certificate used between EU countries and countries with whom the EU has bilateral trade agreements. Confirms goods qualify under the origin rules of the agreement(s)

EurAsEC

Eurasian Economic Community - Customs Union currently with Russia, Belarus and Kazakhstan (also known as EAEC)

EUR-MED

Similar to the EUR1 Form the EUR-MED is used when goods can only meet the rules of preference origin by taking into consideration material from Mediterranean countries not in the EU

EUU

End User Undertaking - declaration made by customer to confirm the end-use of goods subject to export controls. Need to obtain or confirm correct use of export licences.

EX1

Not an official term but was used to indicate the NES Export Declaration needed when goods cross EU MS by road prior to being exported into a non-EU country (indirect export). Replaced by the EAD

Excise

A national tax levied on "luxury" goods - in the EU goods subject to excise taxes are hydrocarbon oils, alcohol and tobacco. As this is a domestic tax goods in these categories moving around the EU come under customs control (see EMCS)

Export Licence

A specific approval granted by the authorities (UK = ECO) approving goods caught on a control list (eg dual-use or military list) to be exported out of the UK.

EXS

Exit Summary Declaration under ECS - see also ESD

EXW

EXW - an Incoterms ® Rule more appropriate for domestic trade than international transactions

exworks

jargon: means the price of goods only includes the cost of goods, packing and profit

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F680

Form 680 - DSO application to release information on military goods to promote the sale of, or release information related to their products to overseas markets. Sometimes a requirement to use an OGEL

FAK

Freight all Kinds

FAS

Free Alongside Ship - an Incoterms ® Rule

FAST

Free and Secure Trade - part of the PIP and CSA security accreditation programme in Canada

FCA

Free Carrier - an Incoterms ® Rule

FCL

Full Container Load (single supplier) - see also FCX

FCO

Foreign and Commonwealth Office

FCPA

US Foreign Corrupt Practices Act

FCX

Full Container Load (miltiple Suppliers) - see also FCL

FDI

Foreign Direct Investment

FEC

Front End Credibility checks - mechanism of CHIEF whereby apparently "odd" data is identified in response to the submission of a declaration, eg commodity code entered doesn't exist

FFS

Frontier Freight Solution - UK HMRC project for replacing CHIEF when it ceases operation (sometime between 2015-2020)

FMS

Foreign Military Sales (ITAR)

FOB

Free on Board - an Incoterms ® Rule (not appropriate for containerised freight under the 2010 set)

FOC

Free of Charge (Payment Term)

Form A

GSP Preference Certificate

Form B

A Certificate of Origin issued in GSP beneficiary countries when the goods do not qualify under the GSP preference rules but a declaration of origin (DPO) is required in the importing country

Forwarder

The party contracted primarily to prepare export documentation and act as interface between shipper and carrier

FPO

Fast Parcel Operator

FPPI

Foreign Principal Party in Interest (FTR) - USA Term

Free Circulation

Goods which can freely move around the EU without requiring customs paperwork. Goods are in free circulation if they are either wholly manufactured in the EU or imported (in all or part) and all relevant import duties have been paid

Freight collect

Indication from the shipper as to who pays main freight costs - collected at destination

Freight forward

Indication from the shipper as to who pays main freight costs - sent forward to consignee's account

Freight prepaid

Indication from the shipper as to who pays main freight costs - costs paid by shipper

FROB

Freight Remaining on Board (part of ECS terminology)

FSD

Final Supplementary Declaration

FTA

Free Trade Agreement

FTAA

Free Trade Area of the Americas (NAFTA + 34 S.American countries [not Cuba]). Not in place yet, discussion stalled

FTAAP

Free Trade Area of the Asia Pacific

FTR

Foreign Trade Statistics Regulations (USA)

FTZ

Free Trade Zones

Full Declaration

When this term is used Customs are referring to "normal" procedures for declaring goods, ie no simplified procedure is applicable

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GAFTA

Greater Arab Free Trade Agreement (also referred to as PAFTA)

GATS

General Agreement on Trade in Services

GATT

General Agreement on Tariffs and Trade

GCC

Gulf Co-operative Council

GCHQ

Government Communications Headquarters

GDM

Goods Departed Message - electronic message received from CHIEF under NES procedures to show that goods have been exported

GDP

Gross Domestic Product

GEP

Global Entrepreneur Programme

GHS

United Nations Globally Harmonised System of Classification and Labelling of Chemicals

Golden Card

AEO equivalent customs compliance scheme in Thailand

Golden List

AEO equivalent scheme in Jordan

GOST Certificate

Conformity certificate raised for goods shipped to Russia under their pre-shipment inspection rules

GPL (1)

Government Procurement Law

GPL (2)

Global Project Licence (export controls)

Gross Weight

Total weight of goods and packing

Groupage

Small consignments bulked together and consigned by a forwarder or carrier as one shipment to reduce the cost of freight. This term tends to apply to sea freight and road haulage

GSP

Generalised System of Preference

GSP Form A

The certificate declaring both the origin of goods and that they conform to the preference rules

GSP Form B

A certificate issues from a GSP country which only confirm origin but states that the goods do not qualify for preference

GCP Form D

Combined Declaration of Origin and Preference for good smoving within ASEAN to establish GSP qualifying status

GST

General Sales Tax - a tax collected in other countries domestically and on imports; similar to VAT

GSTP

Global System of Trade Preferences for Developing Countries

GTSP

Global Tax Simplification Program

General Undertaking - generally known as an End-User Undertaking (EUU) - export controls

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HAWB

House Air Waybill

HIPC

Highly Indebted Poor Countries

HMRC

Her Majesty's Revenue & Customs (formerly HMCE)

Home Use

Goods being imported for use/ sale in the UK or the EU

Hub

The central transhipment point in a network, serviced by truck transport and serving spokes

HS Code

Harmonised System Code (tariff number)

HTISC

Harmonised Tariff ITem Statistical Code - Australia

HTS

Harmonised Tariff Schedule (USA - FTR)

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IADB

Inter-American Development Bank

IATA

International Air Transport Association

Interventions Board (for agricultural goods)

IBFD

International Bureau of Fiscal Documentation

IBSA

India, Brazil and South Africa

ICAO

International Civil Airlines Operation

ICC

International Chamber of Commerce

ICD

Inland Clearance Depot - a plance (not a port or airport) authorised by HMRC for the import clearance of freight

ICS (1)

Import Control System: EU wide supply chain security system came into force January 2011

ICS (2)

Institute of Chartered Shipbrokers

IE501

ICS/ECS code generated by CHIEF stating that "goods are on their way"

IE518

ICS/ECS code generated by CHIEF stating that "goods have exited"

IEEPA

International Emergency Economic Powers Act - USA (EAR and OFAC)

IFC

International Finance Corporation

IIC

International Import Certificate - a form sometimes supplied to support export licence application when the customers/ suppliers are based within the EU. Can replace an EUU

I/L

Import Licence - either individual or open general - issued to allow or limit imports of certain specified commodities. Controlled by the ILB of the BIS in the UK

ILB

Import Licensing Branch

IMF

International Monetary Fund

IMO

International Maritime Organisation

Incoterms

A set of internationally recognised shipping/delivery terms published by the ICC. They define where costs and risk passes from buyer to seller in contracts. Current set Incoterms® 2010 rules

Indirect Export

Goods going to a non-EU country but travelling through other members states prior to the final exit from the EU, eg road shipments from UK to Russia. See also direct export

INF

Title given to Information Documents used by customs within the EU when goods being moved are under customs control

Integrator