| Ad Valorem | Latin term meaning “according to the value” i.e. the value according to which duty and taxes are calculated. Customs often use this. |
| ATA Carnet | The ATA Carnet is an international Customs document which is issued in accordance with the ATA and Istanbul Conventions and it provides a guarantee that is valid internationally. It can be used as security for import duty/tax and allows the temporary admission and transit of goods. Sometimes used to control temporary export/re-importation of products but when used this way, the guarantee will not apply. |
| B/L or BOL | The Bill of Lading is the official shipping document. The possessor of this will be the owner of the goods but it will not be released to the buyer until all costs have been paid. If the buyer does not possess the B/L then the goods cannot be delivered or released to him. |
| BAF | Bunker Adjustment Factor – this is the name given to the oil used to fuel sea vessels – BAF is a surcharge made by the carrier to take into account the cost of bunker with regard to freight cost. |
| Bonded Goods | You will often hear this term used referring to goods stored in a secure warehouse i.e. bonded warehouse. Whilst there, they are not liable for payment of duty but as soon as the goods are moved, duty is liable to be paid. |
| Brokerage | Often used in connection with customs brokerage i.e. a third party used to clear imports or exports. |
| C of O, Form A | Certificate of Origin – this document shows the country of origin of the goods and is normally signed by the Government Dept. of the country of export. If you are able to pay lower duty rates then this Form A maybe required. |
| C&F (or CFR) and CIF | Cost and Freight or Cost, Insurance and Freight – this is when the buyer of the goods pays an amount to the seller to cover the cost of sending the goods by sea plus a fee to get the goods to the point of discharge. No local charges are paid as these are for the buyer. If the term is CIF then marine insurance is also paid by the seller. |
| CAF | Currency Adjustment Factor – charge added to sea freight to take account of changes in currency. |
| Cargo Manifest | This list shows the goods carried in a transport unit i.e. container. It will normally show document numbers, shipper, consignee, carton markings, quantity of packages, description of goods etc. |
| CBM (M3) | This is a cubic metre and is the usual unit of volume used to calculate the volume of goods or container capacity. |
| CFR | Cost and Freight – this shows that the seller’s price will include for cost of goods and freight to the agreed country. Once the goods arrive at the buyer’s chosen port, they take over the costs. |
| CFS | Container Freight Station – a facility where LCL shipments are loaded/unloaded (usually at a port). |
| CIF | Cost, Insurance and Freight – these are pretty much the same as CFR except the buyer also pays the insurance. |
| CIP | Carriage and Insurance Paid – very much like CPT but they include for maritime insurance. |
| CISF | China Import Service Fee – a cost that may arise when goods are shipped using CFR or CIF shipping terms. |
| CITES | Convention on International Trade in Endangered Species. |
| Commercial Invoice | This shows the buyer and seller details and the type of goods, amount, price and terms of sale. Customs will view this when calculating duty and tax to be paid. |
| Consignee (Cnee) | This is the person receiving the goods. |
| Container | A large metal box used to hold goods in transit, normally 20ft or 40ft in length. They are easily moved between ship, train and truck and are unpacked upon arrival at final destination i.e. warehouse. |
| CPT | Carriage Paid To – similar to CFR, the only difference being that CPT can be used for air or sea. |
| Customs clearance | When goods clear through customs at the country or origin or country of destination. |
| DAP | Delivered at Place – the sellers pays for everything up to delivery to the chosen destination. The buyer only pays import duty and tax. |
| DAT | Delivered At Terminal – the seller takes care of all responsibility and costs up to unloading goods at the destination port terminal. The buyer will only pay for customs clearance, import duty, taxes and costs to deliver to his warehouse. |
| DDP | Delivered Duty Paid – delivered to the consignee with duty paid i.e. the seller pays the costs to get the shipment to the chosen destination and will also pay import duty and taxes due in the buyer’s country. All the consignee needs to do is unload the goods from the truck when they arrive at his warehouse. |
| DDU | Delivered Duty Unpaid – it is up to the shipper to get the goods to the agreed point of delivery but not to clear the goods for import; the consignee has to pay duty/taxes. |
| Deferment | When a bank account is held with Customs specifically to pay customs duty and VAT – if you don’t have one then you can often use the Deferment Account of your chosen import agent/shipping agent. |
| Demurrage | Charges raised by the carrier when a container or vehicle goes over its allotted time i.e. held too long at the port or delivery point and in excess of the 3hrs allowed for unloading. |
| Devanning | When cargo is taken out of a container i.e. unloaded. |
| Document Fees | Costs entailed when producing the shipping documents for your products. |
| DN | The Nigeria Customs Service (NCS) issues DN to recover revenue that may be lost to under-valuation or under-declaration of goods. |
| EDI | (Electronic Data Interchange) – These are standards adhered to for electronic message (data) interchange on an international level, as developed and supported by the UN. |
| Entry Summary Declaration (ENS) | These are the costs paid by your supplier when declaring goods to the shipper. If this is not done 5 days before the closing date, your goods will miss the boat and have to go on the next one. |
| EORI | Economic Operator Registration and Identification – this is a number which lets customs keep track of what is being imported/exported. If goods are coming into the UK then you need this number. |
| ETA | Estimated Time of Arrival – when ship or plane is due to arrive at port. |
