Import & Customs Glossary
27 import, customs, and shipping terms explained in plain English - each with real examples, common pitfalls, and a short quiz to check what stuck.
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A
Ad Valorem Duty
Customs duty calculated as a percentage of a good's value - the most common way duty is charged, as opposed to a flat per-unit or per-weight rate.
Trade Agreements & RatesAnti-Dumping Duty
An extra duty imposed on imports a government has determined are priced below fair market value in a way that harms domestic producers.
C
CBEC (Cross-Border E-Commerce)
A Chinese customs regime that gives registered online sellers a reduced tax rate and no customs duty on qualifying low-value shipments, in place of the standard personal postal tax.
Trade Agreements & RatesCertificate of Origin
A document certifying which country a shipment’s goods were actually made in, often required to claim a free trade agreement’s reduced duty rate.
Customs ValuationCIF (Cost, Insurance, Freight)
A customs valuation method that calculates duty on the goods' price plus international shipping and insurance combined, not the item price alone.
Shipping & ProceduresCustoms Broker
A licensed professional or firm that clears goods through customs on an importer's behalf, handling paperwork, classification, and duty payment.
Shipping & ProceduresCustoms Clearance
The process a shipment goes through at the border to be legally allowed into a country - checking documentation, assessing duty and tax, and releasing the goods for delivery.
Duty & Tax BasicsCustoms Duty
A tax a government charges on goods imported from another country, usually calculated as a percentage of the goods' value.
D
De Minimis
The value threshold below which an imported shipment is exempt from customs duty, tax, or both - and it varies enormously by country, from none at all to several hundred dollars.
Trade Agreements & RatesDigital Services Tax (DST)
A tax some countries charge on large tech companies’ local digital revenue - unrelated to customs duty itself, but a recurring trigger for unrelated US tariff threats on that country’s exports.
F
FOB (Free on Board)
A customs valuation method that calculates duty on the goods' transaction value at the port of export only, excluding international freight and insurance.
Trade Agreements & RatesFree Trade Agreement (FTA)
A treaty between two or more countries that reduces or eliminates customs duty on qualifying goods traded between them.
I
IEEPA (International Emergency Economic Powers Act)
A 1977 US law granting the president emergency economic powers during a declared national emergency - used in 2025 as the legal basis for sweeping "reciprocal" tariffs, a use the Supreme Court ruled unauthorized in February 2026.
Duty & Tax BasicsImport VAT
Value-added tax charged on imported goods, calculated on top of the goods’ value plus any customs duty and shipping - separate from customs duty itself.
Shipping & ProceduresIncoterms
A standardized set of international trade terms (like EXW, FOB, and DDP) that define exactly when risk and cost transfer from seller to buyer during shipping.
Regional SchemesIOSS (Import One-Stop Shop)
An EU VAT scheme that lets a non-EU seller collect VAT from the buyer at checkout instead of it being collected by the courier at the border.
M
Merchandise Processing Fee (MPF)
A US customs user fee charged on nearly every commercial import, separate from and in addition to any customs duty owed.
Trade Agreements & RatesMFN Rate (Most Favored Nation)
The standard customs duty rate a country applies to imports from any WTO member it doesn't have a preferential trade agreement or dispute with.
S
Section 122 Tariff
A temporary US tariff surcharge authorized under Section 122 of the Trade Act of 1974 to address a balance-of-payments issue, statutorily capped at 150 days - used briefly in 2026 after IEEPA tariffs were struck down.
Trade Agreements & RatesSection 232 Tariff
A US tariff imposed on specific goods (like autos, steel, and aluminum) under Section 232 of the Trade Expansion Act of 1962, on national-security grounds, separate from Section 301 tariffs.
Trade Agreements & RatesSection 301 Tariff
An additional US tariff imposed on goods from a specific country under Section 301 of the Trade Act of 1974, layered on top of the standard MFN duty rate.