Explore statutory definitions, customs valuation criteria, and trade compliance terminology across 28 core international trade terms.
Defined TermAn HS Code (Harmonized Commodity Description and Coding System) is a standardized 6-digit numerical nomenclature developed by the World Customs Organization (WCO) to classify traded commodities globally across 200+ countries.
Read Definition & Rules → Defined TermAn HTS code is an 8- to 10-digit national tariff extension used by specific countries—such as the United States (HTSUS)—to enforce statutory import duties, trade quotas, and statistical tracking beyond the 6-digit WCO backbone.
Read Definition & Rules → Defined TermThe Harmonized System is the global customs classification framework governed by the World Customs Organization (WCO). Updated every five years (currently 2022 Edition), it encompasses 21 Sections, 98 Chapters, and 5,755 6-digit subheadings.
Read Definition & Rules → Defined TermA customs tariff is a statutory schedule of financial duties, taxes, or surcharges levied by a sovereign nation on imported or exported merchandise upon crossing international customs boundaries.
Read Definition & Rules → Defined TermThe MFN duty rate is the standard non-discriminatory general tariff rate applied to commercial imports from World Trade Organization (WTO) member countries, unless a preferential free trade agreement (FTA) applies.
Read Definition & Rules → Defined TermAn ad valorem duty is a customs tariff calculated as a fixed percentage of the customs value of imported goods (e.g. 5.5% ad valorem on FOB value).
Read Definition & Rules → Defined TermA specific duty is a customs tariff assessed as a fixed monetary amount per physical unit or weight of imported merchandise (e.g. $0.20 per kilogram or $1.50 per dozen).
Read Definition & Rules → Defined TermCIF is an international customs valuation basis where duty and import taxes are calculated on the combined total value of the goods, international freight shipping, and marine insurance.
Read Definition & Rules → Defined TermFOB is a customs valuation basis where import duty and fees are assessed solely on the transaction value of the merchandise loaded at the export port, excluding international freight and shipping insurance.
Read Definition & Rules → Defined TermThe de minimis threshold is the statutory maximum monetary value below which imported shipments enter a country duty-free and tax-free without formal customs entry.
Read Definition & Rules → Defined TermThe Merchandise Processing Fee (MPF) is an ad valorem user fee levied by U.S. Customs and Border Protection (CBP) on formal commercial entries (CBP Form 7501). Calculated at 0.3464% of FOB value, subject to a statutory minimum of $32.71 and maximum of $634.62 per entry.
Read Definition & Rules → Defined TermThe Harbor Maintenance Fee (HMF) is a U.S. federal fee assessed at 0.125% of the cargo value on commercial ocean freight imports discharged at designated U.S. waterborne ports.
Read Definition & Rules → Defined TermSection 301 tariffs are additional ad valorem duties (7.5% or 25%) imposed by the U.S. Trade Representative (USTR) under Section 301 of the Trade Act of 1974 on specified products originating in China (Lists 1 through 4).
Read Definition & Rules → Defined TermSection 232 tariffs are trade remedy duties imposed under Section 232 of the Trade Expansion Act of 1962 on imports of steel (25%) and aluminum (10%) deemed to threaten U.S. national security.
Read Definition & Rules → Defined TermAD/CVD are specialized trade remedy duties enforced by the U.S. Department of Commerce and CBP to offset unfairly dumped or foreign government-subsidized merchandise sold below fair market value.
Read Definition & Rules → Defined TermColumn 2 rates are statutory non-MFN tariff rates applied by the United States to imports originating in countries not enjoying normal trade relations (e.g. Cuba, North Korea, Russia, and Belarus).
Read Definition & Rules → Defined TermTARIC is the 10-digit multilingual customs tariff database of the European Union integrating EU Combined Nomenclature subheadings, commercial measures, tariff suspensions, and quotas.
Read Definition & Rules → Defined TermSchedule B is a 10-digit statistical commodity classification code administered by the U.S. Census Bureau used to track and report commercial exports from the United States.
Read Definition & Rules → Defined TermRules of origin are statutory criteria used to establish the economic nationality of imported merchandise for preferential tariff treatment under Free Trade Agreements (e.g. Tariff Shift or Regional Value Content rules).
Read Definition & Rules → Defined TermThe United States-Mexico-Canada Agreement (USMCA) is the trilateral free trade agreement replacing NAFTA. Provides duty-free preference for qualifying originating goods produced within North America.
Read Definition & Rules → Defined TermGSP is a trade preference program authorizing duty-free entry for thousands of eligible commodities exported from designated beneficiary developing nations.
Read Definition & Rules → Defined TermAn EORI number is a unique European and U.K. customs identification code required by businesses and traders to submit customs declarations and import goods commercially.
Read Definition & Rules → Defined TermIncoterms (International Commercial Terms) are standardized 3-letter trade terms published by the International Chamber of Commerce (ICC) defining buyer and seller obligations for risk, freight costs, insurance, and customs clearance.
Read Definition & Rules → Defined TermA customs broker is a licensed individual or firm authorized by national customs authorities (such as U.S. CBP under 19 CFR Part 111) to clear commercial shipments through customs on behalf of importers.
Read Definition & Rules → Defined TermA binding ruling is an official written decision issued by a national customs administration (such as U.S. CBP CROSS, U.K. HMRC ATaR, or E.U. EBTI) establishing legally binding tariff classification for a specific commodity.
Read Definition & Rules → Defined TermTotal landed cost is the complete sum of all expenses incurred to transport a commercial product from the supplier to the destination door—including product price, shipping freight, customs duties, import VAT/taxes, processing fees (MPF/HMF), and insurance.
Read Definition & Rules → Defined TermCountry of origin is the country where a commercial commodity was wholly manufactured, produced, or underwent substantial transformation into a new article of commerce.
Read Definition & Rules → Defined TermPartner Government Agencies (PGAs) are non-customs government regulatory authorities—such as the FDA, EPA, USDA, CITES, and FCC—that regulate specialized commodity imports prior to customs release.
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