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
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).
AES (Automated Export System)
U.S. regulations that prohibit companies from participating in or supporting unsanctioned foreign boycotts and require reporting of certain boycott-related requests.
Anti-Boycott Regulations
A duty imposed on imported goods sold in the United States at less than fair value to protect domestic industries from unfair pricing practices.
Antidumping Duty (AD)
A customs duty calculated as a percentage of the imported merchandise's value.
Ad Valorem Duty
A related company or individual whose relationship may affect customs valuation or other trade compliance determinations.
Affiliated Party
Certain goods, services, or materials supplied by an importer to a foreign manufacturer for use in producing imported merchandise.
Assists
U.S. Customs and Border Protection's electronic platform for processing trade-related information.
Automated Commercial Environment (ACE)
B
An agency within the U.S. Department of Commerce responsible for administering and enforcing the Export Administration Regulations (EAR).
BIS (Bureau of Industry and Security)
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.
Bonded Warehouse
A licensed customs broker authorized to conduct customs business on behalf of importers.
Broker
An official determination issued by a government agency regarding the treatment or classification of a specific transaction or product.
Binding Ruling
A transportation document identifying goods being shipped and establishing terms between the shipper and carrier.
Bill of Lading (B/L)
Buy American Requirements
Rules that establish domestic content or sourcing requirements for certain U.S. government purchases.
C
CCL (Commerce Control List)
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.
CBP (U.S. Customs and Border Protection)
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.
Certificate of Origin
The process of determining whether a product falls under the Commerce Control List (CCL), United States Munitions List (USML), or another regulatory classification.
Commodity Classification
Commodity Jurisdiction (CJ)
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.
Country of Origin
A licensed professional authorized to conduct customs business for importers and other parties.
Customs Broker
Customs Valuation
The process of determining the customs value of imported merchandise for duty assessment.
D
The office within the U.S. Department of State responsible for administering ITAR and overseeing exports of defense articles, defense services, and technical data.
DDTC (Directorate of Defense Trade Controls)
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.
Deemed Export
Release of controlled technology or source code to a foreign person in a country outside the United States that may constitute a reexport.
Deemed Reexport
Defense Article
An item designated on the United States Munitions List (USML) and controlled under ITAR.
Defense Service
Assistance, training, or technical support related to defense articles, as defined under ITAR.
BIS list identifying persons prohibited from participating in certain export transactions.
Denied Persons List
Destination Control Statement (DCS)
Statement required on certain export documentation identifying restrictions on the destination and disposition of controlled items.
E
EAR (Export Administration Regulations)
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.
EAR99
ECCN (Export Control Classification Number)
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.
Electronic Export Information (EEI)
A government-imposed restriction or prohibition on trade with specific countries, entities, or individuals.
Embargo
The individual, company, or organization that will ultimately receive and use exported goods or technology.
End User
End Use
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.
Export License
Export Control Reform Act (ECRA)
U.S. law providing statutory authority for the U.S. export control system administered by BIS.
F
Foreign Direct Product Rule (FDPR)
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.
Foreign Trade Regulations (FTR)
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.
Foreign Trade Zone (FTZ)
Free Trade Agreement (FTA)
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.
Forced Labor
Process of determining whether goods meet the applicable requirements to receive preferential treatment under a free trade agreement.
FTA Qualification
G
Customs procedure under which merchandise may be subject to specific government instructions or restrictions.
General Order
Authorization that permits certain transactions without obtaining an individual license when applicable conditions are satisfied.
General License
A category of prohibited activity under the EAR that restricts certain exports, reexports, or conduct.
General Prohibition
Goods
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.
Government Procurement
H
An internationally standardized system developed by the World Customs Organization (WCO) for classifying traded goods.
Harmonized System (HS)
Harmonized Tariff Schedule (HTS)
The U.S. tariff schedule used to classify imported goods and determine applicable duty rates.
HTS Classification
Process of assigning the appropriate HTS number to imported merchandise.
HTSUS
Harmonized Tariff Schedule of the United States.
I
International Commercial Terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade transactions.
Incoterms® 2020
The individual or entity responsible for ensuring imported goods comply with all applicable customs laws and regulations.
Importer of Record (IOR)
Import Entry
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.
Import Compliance
International Traffic in Arms Regulations (ITAR)
U.S. regulations governing the export and temporary import of defense articles, defense services, and related technical data.
Internal Compliance Program (ICP)
Documented processes used by an organization to manage and monitor trade compliance obligations.
J
Classification analysis involving multiple products or components that may require coordinated customs or export-control determinations.
Joint Product Classification
Assessment of which government agency or regulatory regime has authority over a product, technology, service, or transaction.
Jurisdiction Determination
K
Due diligence process used to understand customers, counterparties, ownership, activities, and potential compliance risks.
Know Your Customer (KYC)
Key Management Personnel
Individuals responsible for directing or overseeing an organization's trade compliance activities.
Known Shipper
A party identified and validated within applicable transportation or export security procedures.
L
Authorization under the EAR allowing certain exports, reexports, or transfers without obtaining an individual export license when all applicable conditions are met.
License Exception
Regulatory requirement to obtain government authorization before conducting a specified transaction.
License Requirement
License Determination
Analysis used to establish whether an export, reexport, or transfer requires a license.
License Exception ENC
EAR authorization applicable to certain exports and reexports of encryption items.
Letter of Credit
Financial instrument issued by a bank to facilitate payment in an international trade transaction.
M
Change to a transaction, product, party, destination, ownership, or other circumstance that may affect compliance obligations.
Material Change
Military End User (MEU)
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.
Military End Use
Most-Favored-Nation (MFN) Duty Rate
General tariff rate applicable to qualifying imports when no preferential rate applies.
Multilateral Export Control Regime
International arrangement through which participating countries coordinate controls over sensitive goods, technology, and activities.
N
National Security Controls
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.
NLR (No License Required)
Nonresident Importer
Foreign entity that acts as the importer for customs purposes in another country.
NAICS Code
Industry classification code used to identify business activities and sectors.
North American Free Trade Agreement (NAFTA)
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.
Structured process used to determine the appropriate export control classification under the CCL.
Order of Review
Overpayment of Duties
Situation in which an importer pays more customs duties than required.
P
EAR provisions imposing additional restrictions based on end users, end uses, destinations, or other specified concerns.
Part 744 Controls
Authorization allowing a customs broker or other representative to act on behalf of an importer or exporter.
Power of Attorney (POA)
Reduced or eliminated duty treatment available when goods meet applicable trade agreement requirements.
Preferential Tariff Treatment
Process of assigning the correct regulatory classification to a product for customs or export control purposes.
Product Classification
Activity for which an export, reexport, or transfer is restricted or prohibited under applicable regulations.
Prohibited End Use
Individual or organization subject to restrictions that may prohibit or limit transactions.
Prohibited Party
Q
Government-imposed limit on the quantity or value of particular goods that may be imported during a specified period.
Quota
Determination of whether imported merchandise falls within an applicable tariff-rate or absolute quota.
Quota Classification
Customs entry filed against an available quota allocation.
Quota Entry
Supplier that has been evaluated and approved against applicable commercial, regulatory, and compliance requirements.
Qualified Supplier
R
The process of screening customers, suppliers, intermediaries, and other parties against government restricted party lists to prevent prohibited transactions.
Restricted Party Screening (RPS)
Shipment or transmission of an item subject to the EAR from one foreign country to another foreign country.
Reexport
Government authorization required for certain controlled reexports.
Reexport License
Maintenance of documents and records required to demonstrate compliance with applicable trade regulations.
Recordkeeping
Export transaction in which the foreign principal party in interest authorizes a U.S. agent to facilitate the export.
Routed Export Transaction
Specific regulatory basis identified for controlling an item under the CCL.
Reason for Control
S
U.S. export classification number used for statistical reporting of exported goods.
Schedule B Number
Government restrictions imposed on transactions involving specified countries, entities, individuals, or activities.
Sanctions
Specially Designated National (SDN)
Person or entity identified by OFAC as subject to blocking or other sanctions.
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.
Substantial Transformation
Screening
Process of checking parties, transactions, destinations, and other information against applicable compliance restrictions.
Section 301 Tariffs
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.
Section 232 Tariffs
Process of evaluating suppliers, sourcing, ownership, origin, and compliance risks throughout a supply chain.
Supply Chain Due Diligence
T
Technology Control Plan (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.
Transaction Value
Tariff
Government-imposed duty or tax on imported goods.
Tariff Classification
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.
Tariff Rate Quota (TRQ)
Information subject to specific export controls, including certain technical information related to defense articles under ITAR.
Technical Data
Trade Compliance Program (TCP)
Organization-wide policies, procedures, controls, and training designed to manage international trade risks.
U
United States Munitions List (USML)
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.
USMCA
Ultimate Consignee
Party identified as the final recipient of exported merchandise.
Ultimate End User
Person or entity that ultimately uses or benefits from an exported item.
Unverified List (UVL)
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.
UFLPA (Uyghur Forced Labor Prevention Act)
V
Valuation
Process of determining the customs value of imported merchandise.
Value Added
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.
Voluntary Self-Disclosure (VSD)
Verification
Process of confirming the accuracy of information, classifications, parties, documentation, or compliance representations.
W
World Customs Organization (WCO)
International organization that develops customs standards and supports cooperation among customs administrations.
Warehouse Entry
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.
Wholly Obtained Goods
Withhold Release Order (WRO)
CBP action directing detention of merchandise suspected of being produced using forced labor.
X
X-Ray Examination
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.
XML Electronic Filing
Export Control Cross-Reference
Internal reference connecting product information with applicable export control classifications and regulatory requirements.
Y
Textile and apparel origin requirement under certain trade agreements requiring specified yarn and production processes to originate within qualifying countries.
Yarn-Forward Rule
Review of trade transactions, classifications, values, duties, and compliance records at the end of a reporting period.
Year-End Reconciliation
Production material loss that may be relevant when evaluating assists, customs valuation, or manufacturing-related trade calculations.
Yield Loss
Z
Zone Status
Customs status assigned to merchandise admitted into a U.S. Foreign-Trade Zone.
Zone Admission
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.
Zone-to-Zone Transfer
Zone Restricted Merchandise
Merchandise subject to specific restrictions regarding admission, handling, or disposition within an FTZ.