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Incoterms® Rules and Trade Terms

“Incoterms” is a trademark of the International Chamber of Commerce.  Incoterms® rules and trade terms are recognized and accepted as the standard for international trading and are regularly updated as commercial conditions change.  Terms were last amended in 2010. DDP – Delivered Duty Paid: [DTP – Duty and Tax Paid] Seller or Exporter is responsible for... View Article

Harmonized System

The international system published by the World Customs Organization that sets out in a systemized form the goods handled in international trade. Goods are grouped in Sections, Chapters and sub-Chapters that are governed by rules.

Free Zone

An area within a country (a seaport, airport, warehouse or any designated area) regarded as being outside its customs territory. Importers may therefore bring goods of foreign origin into such areas without paying customs duties and taxes. This is always pending eventual processing, trans-shipment or re-exportation. Free zones were once numerous and prosperous when tariffs... View Article

EDI

Electronic Data Interchange – the electronic transmission of data.

De Minimis

This is a Latin term and is a shortened version of the expression “de minimis non curat lex” meaning “the law does not care about very small matters”. It is often considered more efficient to waive very small amounts of duties and taxes rather than collect them.

Customs Declaration

Any statement or action, in any form prescribed or accepted by Customs, giving information or particulars required by Customs.

Consular Invoice

This is a detailed statement of goods shipped, certified by the consulate of a country. It is required by certain foreign governments that want a tighter control over imports.

CITES

Convention on International Trade in Endangered Species

CIF

An abbreviation used in some international sales contracts, when the selling price includes all “Costs, Insurance and Freight” for the goods sold. This means that the seller arranges and pays for all relevant expenses involved in shipping goods – from their point of export to a given point of import. In trade statistics, “CIF value” means that... View Article

Certificate of Origin

This is a specific document that expressly certifies that the goods to which the certificate relates, originate in a specific country. This certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person.