What is a Customs Agent?
October 8, 2020There are many, many acronyms relating to customs. If you are an importer or exporter this handy guide explains everything you need to know!
Ad valorem duty: Percentage duty based on the customs value of the goods.
ADD: Anti-dumping duty
AEO: Authorised Economic Operator, company approved by competent Customs Authority
AEP (ROI): Automated Entry Processing
Additional Code: Additional 4 digit code used to identify certain complex variable charge’s and/or anti-dumping duties.
AIS (ROI): Automated Import System
API: Application Programming Interface
ATA Carnet: Admission Temporaire-Temporary Admission. Mainly used to make the customs clearance of certain temporary importations and exportations easier especially for goods crossing multiple borders.
ATR: An ATR document enables goods to qualify for tariff preferences on imports and exports between the EC and Turkey. UK Customs Notice 812. The Preference Agreements between the EU and Turkey are based, not on origin but on free circulation.
BCP: Border Control Post. Control point at the place of importation into the EC where Products of Animal Origin (POAO) and live animals are subject to veterinary checks.
BIFA: British International Freight Association – the trade association for UK-registered companies engaged in international movement of freight by all modes of transport, air, road, rail and sea.
Bonded Warehouse: A place of security approved by the national Government’s Customs Authority for the deposit, keeping, manipulation and securing of goods liable to excise duty without payment of duty. This term is often applied to a customs warehouse but incorrectly since no bond is usually required for these.
CAP: The Common Agricultural Policy of the EU.
Carnet: See ATA Carnet
Carrier: The transporter of consignments
CCG: Customs Comprehensive Guarantee
CCS-UK: Cargo Community System – UK. Computer system with central database for Inventory linked Customs declarations.
CDS: Customs Declaration Service. The upscale replacement for CHIEF
CFSP: Customs Freight Simplified Procedure.
CHIEF: Customs Handling of Import and Export Freight. HMRC’s 1990s designed, computerised system for processing import and export enquiries
CIE: Customs input of entries into the Customs entry processing system, distinct from Direct Trader Input.
CITES: Endangered Species of Wild Fauna and Flora
CIP: Carriage & Insurance Paid To (incoterm)
Clearing Agent: An accredited company with local Government Authorities who will arrange the passage of freight through the Border and will have an in-depth knowledge of this area. May be employed at the behest of the Exporter, Freight Forwarder or Importer. Some countries e.g. India & USA require Persons to be licenced following successful examinations. Other countries e.g. Australia prefer acquired experience for licencing companies. You can find out more about Clearing Agents here.
CN: See ‘Combined Nomenclature’.
COD: “Cash on Delivery” Fees must be paid on, or prior to delivery
Combined Nomenclature: The Combined Tariff and Statistical nomenclatures of the EU, represented by the first 8 digits of the Commodity Code
Commercial Invoice: Completion is the responsibility of the Consignor. Lists the buyer and seller in the transaction. Details the type, quantity and price of goods as well as the terms of the trade. Is used to declare freight to Customs. You can find out more about what a commercial invoice should contain here.
Commodity code: The term used to denote the code (either at 8 digit or 10 digit level) which identifies a line of tariff nomenclature. The term replaces TTCN (Tariff/Trade Code Number). Find out what commodity codes are and why you need them.
Common Transit: A Customs procedure, similar to Community Transit for moving goods without payment of duty and tax between the EU and the EFTA countries.
Community goods: Originated in, or are in free circulation in the EU.
Community Transit: Facilitation of the movement of goods passing through more than one EC member state.
Consignee: The receiver of freight
Consignor: The sender and usually the seller of the freight.
Consolidation: Shipments for a similar destination combined or bundled on a single (master) consignment or single truck.
CPT: Carriage Paid To {named place} (Incoterm)
CPC: Customs Procedure Code. A code identifying the customs and/or excise regimes to which goods are being entered and from which they have been removed (if applicable).
CT: See ‘Community Transit’.
Currency code: The three letter code donating the currency of a transaction
Customs Broker: See ‘Clearing Agent’
Customs Duty: An indirect tax levied on goods which varies depending on the commodity code. It can be used to protect an Importing Countries’ Industries from cheaper cost bases in 3rd countries.
Customs Release: The approval given by Customs that authorises a transit shed operator to deliver goods from the transit shed subject to such conditions the Commissioners may impose.
Customs Value: The value of imported goods for customs purposes.
CVC: Countervailing charge. This is imposed in addition to any other duties or charges on wines, dried grapes and certain other commodities to prevent unfair competition from cheaper 3rd-country imports.
DAP: Delivered at {Named} Place. (Incoterm)
DDA: Duty Deferment Account
DDP: Delivered Duty Paid (Incoterm)
DPU: Delivered at {Named} Place unloaded. (Incoterm)
DEFRA: Department for Environment, Food, and Rural Affairs. (Department responsible, inter alia, for UK policy in relation to CAP).
Demurrage: See Detention
Detention: Penalty charges assessed by a carrier to a shipper or consignee for holding transportation equipment, i.e. trailers, containers, railcars, longer than a stipulated time for loading or unloading.
DG: Dangerous or Hazardous Goods
Dimensional Weight: For low-density consignments the weight for billing may be based on the volume of the consignment, not the gross weight.
Direct Representation: The party being represented is the declarant and is obliged to meet all the obligations arising from the declaration. The declarant will be responsible for maintaining the records and also providing an audit trail.
DTI: Direct trader input. Traders input customs declarations direct to Customs entry processing system CHIEF.
DTD: Informal term for Door – to – Door
DUCR: Declaration Unique Consignment Reference (CHIEF declaration will have DUCR, which is 35 alphanumeric characters)
EAD: Export Accompanying Document
EHC: Export Health Certificate. Find out what an export health certificate is and why you need it.
EINR: Entry in Declarant Records
EFTA: European Free Trade Association. A group of countries, comprising Iceland, Norway, Switzerland and Liechtenstein
EMCS: Excise Movement and Control Systemm
ENS: See also ESD / Entry Summary Declarations
EORI: Economic Operator Registration Identification. An EORI number is required to trade goods with countries outside the EU. Find out more about what EORI numbers are and why you need them.
EPU: HMRC Entry Processing Unit for the receipt and handling of import and ex-customs warehouse documentation.
ESD: Entry Summary Declarations. A security assessment of cargo entering the EU.
ETSF: Previously Enhanced Remote Transit Shed now External Temporary Storage Facility, from 01-Jan-2021 this does not need to be inventory linked.
EU: European Union.
Excise Duty: A charge on goods for raising revenue at rates which are the same for both home-produced and imported goods. Can be used to discourage the consumption of some goods.
Excise Warehouse: A warehouse approved by HMRC for the deposit without payment of duty of goods liable to excise duty.
EXW: Ex Works (Incoterm)
Fallback: The procedures to be followed during communication or systems failure.
FCA: Free Carrier (Incoterm)
FCL: Full Container-Load
FEU: Forty-foot equivalent unit.
Free Circulation: For EU Member States: Goods are said to be in free circulation if they wholly originate in the EU or are imported goods (from a non-EU country) on which all import procedures have been completed and all duties, levies or equivalent charges have been paid and not refunded.
FOB: Free on Board (Incoterm)
FOC: Free of Charge (informal term)
Forwarding Agent: A person or company who is a specialist in Customs procedures and the international carriage of goods, and acts on behalf of importers and exporters. Generally 1 transport mode.
Freight Forwarder: A company that receives and transports goods on behalf of other companies often through consolidation. It will generally use multiple transport modes. It will often incorporate Clearing Agents.
GATT: The General Agreement on Tariffs and Trade is an international multilateral agreement which embodies a code of practice for fair trading in international commerce.
GB: Great Britain mainland (England, Scotland, Wales)
GMR: Goods Movement References
GSP: Generalised System of Preferences.
Gross Weight: Total weight; product & packaging
HS: Harmonised Commodity Description and Coding System, also known as Harmonised System. Useful in finding the 1st 4-6 digits of tariff codes in Google. Try “HS Code plastic forks” in the search bar.
HMRC: A non-ministerial UK Department called Revenue and Customs which collects the correct amount of taxes for the UK Government.
HRFNAO: High Risk Food and Feed Not of Animal Origin
ICD: Inland Clearance Depot. An HMRC approved location to which Imports can removed for entry, examination and clearance, and where consignments may be made available for export control before being moved to a place of export
Import Duty: This means customs duties and charges having equivalent effect. The term “import duty” does NOT include excise duty (see also Customs duty).
In Bond: Goods held under a Guarantee, in a bonded vehicle or bonded warehouse, provisionally entered to a country but not in free circulation.
Indirect Representation: The Customs representative acts in their own name and are responsible for the full audit trail. They are jointly liable for liability arising from the Customs transaction.
Intrinsic Value: By UK Customs definition, goods with a value not exceeding £15
IPR: Inward Processing Relief: Duty Relief System for import, process and re-export.
IPAFFS: Import of products, animals, food and feed system
Item: (on a Customs Entry) is an individual product (or group of products) that is identified by one commodity code on a Commercial Invoice.
LB / LBS: Pounds weight 0.4536kg
LCL: Less-than-Container-Load
LCP: Local Clearance Procedure Under CFSP, used to release goods to a Customs Procedure from designated (inland) premises
Lo-lo: “Lift-on, lift-off” using conventional container or cargo vessels
KG / KGS: Kilograms Weight 2.2046lb
M3: Cubic Metres volume
MRNS: Transit Movement Reference Number
MUCR: Master Unique Consignment Reference – identify a consignment to a means of transport
NCH: National Clearance Hub
NCV: Items of No Commercial Value e.g. Documents
NCTS: New Computerised Transit System
NES: National Export System (SAD)
NI: Northern Ireland
NPR: Number of pieces received.
NPX: Number of pieces expected, as indicated by the manifest or transport document
OPR: Outward Processing Relief. Duty Relief System for export, foreign process and re-import.
Packing: Any item used for the transport or storage of goods which does not meet the definition of ‘container’ or ‘pallet’.
Pallet: Transport platform on which goods can be stacked for ready handling.
PBN: Pre Boarding Notification
PCC: Processing under customs control for free circulation. Dutiable goods may be imported or released from customs warehouse suspending the duty and import VAT, processed under customs control and the products put into free circulation on payment of the duty and import VAT appropriate to the products rather than to the imported goods.
POAO: Product as defined in The Products of Animal Origin (Third Country Imports) (England) Regulations 2002.
Phytos: Phytosanitary Certificates are used to confirm the conformity of plants to local authorities particularly with regard to quarantine and disease.
Preference: An agreement between the EU and a non-EU country allows goods originating in that country to be imported at a preferential (often nil) rate of duty. The quantity of goods allowed to be imported at preferential rates may be restricted by tariff quotas or ceilings.
PTP: Informal term for Port to Port
Quotas: A mechanism for restricting the amount of goods imported into a member state which may benefit from a preference.
Reefer: A refrigerated container or trailer, capable of temperature control
Release Note: A computer printout, or manual equivalent, for a consignment of goods which has been given Customs release.
Repayment: The total or partial refund of import or export duties which have been paid.
Ro-ro: “Roll On/Roll Off” A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes.
ROI: Republic of Ireland
RPA: The Rural Payments Agency. UK body responsible for administering export and refunds.
SAD: Single Administrative Document. An eight-part customs document developed by the Commission to simplify and harmonise customs information requirements, facilitate trade and the computerised communication of customs data within the EU.
SCD: A simplified clearance procedure, under which exporters of goods not requiring special control may submit an abbreviated customs pre-entry or an approved commercial document at the time of export and provide the full statistical information after the goods are exported.
SD: A Supplementary Declaration is an electronic message to CHIEF used to declare the fiscal, statistical and control information for all consignments imported under CFSP.
SDI: Supplementary Declaration (Imports).
SDW: A supplementary declaration submitted for goods removed from warehouse under CFSP.
SFD: A Simplified Frontier Declaration containing a minimum amount of information submitted at the frontier which enables clearance (at the frontier) or removal to Local Clearance Procedure for goods imported under CFSP.
Shipper / Consignor: The Sender of Originator of a consignment
SPV Simplified Procedure Value, a scheme for fresh fruit and vegetables to allow speedy clearance of the goods.
SPV: Simplified Procedure Value, a scheme for fresh fruit and vegetables to allow speedy clearance of the goods.
Status 1: An indication that the number of pieces expected (NPX) equals the number of pieces received (NPR)
T1: This is a document which allows for goods which originated outside the EU to move freely within the European Union. Therefore, no customs duties or taxes are payable as the shipment moves from country to the next within the European Union. This is the case until the shipment arrives at its intended final destination.
T2: This is a document which allows movement of Union status goods to or via Common transit countries.
T2L: A document confirming the Community status of goods. When the goods are in free circulation in the customs territory of the EU, the T2L document proves that these products aren’t subject to customs supervision (used for sea/air freight as according to the law, sea and air are treated as the territory of third country).
TAD: Transit Accompanying Document.
TARIC: The European Unions Integrated Tariff.
Tariff: UN Government, Integrated Tariff of the United Kingdom
TEU: Twenty-foot equivalent unit.
Third (3rd) countries: All countries that are not EU members and EFTA states.
TI Relief: Temporary Importation, the bringing into customs territory of goods (including vehicles and other means of transport) which will be reexported, in the same state and subject to certain conditions of use.
TOR: Transfer of Residence, the permanent transfer into a customs territory of a person’s personal and household effects including vehicles, subject to certain conditions.
TSF: Temporary Storage Facilities
Transhipment: A movement where the goods are imported and exported within the confines a UK airport or port in the course of a movement which started and will end outside of the UK.
UN United Nations.
TRACES NT: A movement where the goods are imported and exported within the confines a UK airport or port in the course of a movement which started and will end outside of the UK.
UCC: Union Customs Code
UCR: Unique Consignment Reference
UN Number/Code: 4-digit number for identifying dangerous cargo
UT Union Transit: It’s a customs procedure that allows goods not in free circulation, non-Union goods, to move within the EU, while customs duties or other charges are suspended. UT also control the movement of goods to or from the “special territories” which are: the Aland Islands, the Canary Islands, the Channel Islands, french Guiana, Guadeloupe, Martinique, Mount Athos and Reunion. UT is also used for movement of certain goods between EU ad Andora and EU and San Marino.
Union Transit: Non-Union Goods not in free circulation and Union goods, which, between their point of departure and point of destination in the EU, have to pass through the territory of a third country.
Valuation Declaration: A form on which an importer (or other eligible person) declares the method of valuation and the elements involved in calculating the value for import duty purposes.
VAF: Value Added Figure. Amount added to a Customs Import Entry to allow for payment of VAT on services like Customs Brokerage where the goods move under certain Incoterms.
VAT: Value added tax. Sometimes known as GST, Goods & Services Tax.
WCO: World Customs Organisation.