Glossary
Customs glossary
The terms that show up in documents and in conversations with customs, explained plainly. Bookmark this page, it comes in handy more often than you would think.
16 terms
- AEOAuthorised Economic Operator
- Status granted by customs to companies with a proven compliance history. It brings fewer physical controls, priority at inspections and documentary simplifications.
- ATPortuguese Tax and Customs Authority
- The Portuguese body responsible for collecting taxes and for customs control. It is to the AT that the broker files declarations.
- CMRInternational road consignment note
- The document covering carriage of goods by road between countries. It evidences the transport contract and travels with the cargo.
- Control channelGreen, orange or red
- The level of control assigned to each declaration. Green means automatic release, orange means a documentary check and red means physical inspection of the goods.
- Customs dutiesCharge on importation
- Amount charged on goods imported from outside the European Union. Calculated by applying the tariff heading rate to the customs value.
- Customs transitT1 or T2 procedure
- A procedure allowing goods to move between customs offices without paying charges at the point of entry, transferring that obligation to the destination.
- Customs valueBasis for calculating charges
- The value on which duties are assessed. It is the transaction value adjusted for freight and insurance up to the European Union border.
- Customs warehouseSuspensive storage procedure
- A procedure allowing goods to be stored without paying duty or VAT until they are released for free circulation. Frees up working capital in stock heavy operations.
- EORIEconomic Operators Registration and Identification
- The unique number identifying your company in any customs operation within the European Union. Mandatory in order to import or export.
- IncotermsInternational Commercial Terms
- A set of rules from the International Chamber of Commerce defining who pays for what and where risk passes in an international sale. The version in force is Incoterms 2020.
- Packing listPacking specification
- Document describing the contents of each package, with weights and dimensions. Used in physical checks and in calculating freight.
- Physical inspectionRed channel control
- Examination of the goods by customs to confirm they match the declaration. It involves handling costs and some additional time.
- Proof of originCertificate or declaration of origin
- Document evidencing where the goods were produced. It is what allows preferential rates to be applied under European Union trade agreements.
- SADSingle Administrative Document
- The customs declaration form used across the European Union for import, export and transit. Now filed electronically.
- Suspensive procedureTemporary suspension of charges
- A group of procedures deferring or suspending payment of duty and VAT, such as warehousing, transit and inward processing.
- Tariff classificationHeading in the Combined Nomenclature
- The code identifying the goods, which determines the duty rate as well as the licences and controls required. Misclassification is the most common source of corrections and penalties.
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