Introduction to Global Trade Regulations
Expert-defined terms from the Professional Certificate in Global Trade Regulations and Compliance course at London School of Business and Administration. Free to read, free to share, paired with a professional course.
AEO stands for Authorized Economic Operator, a term used to describe a co… #
Related terms include AEO certification, AEO program, and AEO status. The concept of AEO is to recognize and reward companies that demonstrate a high level of compliance with customs regulations and procedures, thereby facilitating smoother and more efficient customs clearance processes. For instance, a company that has obtained AEO certification may benefit from reduced customs controls, faster clearance times, and lower costs associated with customs compliance.
ATA Carnet is a customs document that allows the temporary importation of… #
Related terms include ATA Carnet application, ATA Carnet fee, and ATA Carnet validity. The concept of ATA Carnet is to facilitate the temporary importation of goods for purposes such as exhibitions, demonstrations, or repair, while ensuring that the goods are re-exported within a specified timeframe. For example, a company that participates in a trade show in a foreign country may use an ATA Carnet to temporarily import its products without incurring customs duties or taxes.
Binding Tariff Information is a binding decision made by customs authorit… #
Related terms include BTI application, BTI decision, and BTI validity. The concept of Binding Tariff Information is to provide certainty and clarity on the classification of a product, thereby ensuring that the correct duties and taxes are applied. For instance, a company that imports a new product may apply for Binding Tariff Information to determine the correct classification and duty rate.
Certificate of Origin is a document that certifies the country of origin… #
Related terms include Certificate of Origin form, Certificate of Origin requirements, and Certificate of Origin verification. The concept of Certificate of Origin is to provide evidence of the country where a product was manufactured or produced, which is essential for determining the applicable duties, taxes, and trade regulations. For example, a company that exports products to a country with preferential trade agreements may need to provide a Certificate of Origin to benefit from reduced duties or tariffs.
Customs Broker is a licensed professional who assists importers and expor… #
Related terms include Customs Broker license, Customs Broker fee, and Customs Broker services. The concept of Customs Broker is to provide expertise and guidance on customs regulations, procedures, and compliance, thereby facilitating smoother and more efficient customs clearance processes. For instance, a company that is new to international trade may hire a Customs Broker to navigate the complexities of customs clearance and ensure compliance with regulations.
Customs Clearance is the process of complying with customs regulations an… #
Related terms include Customs Clearance form, Customs Clearance procedure, and Customs Clearance requirements. The concept of Customs Clearance is to ensure that all necessary documents, information, and procedures are completed and submitted to customs authorities, thereby facilitating the smooth and efficient clearance of goods. For example, a company that imports goods from a foreign country may need to complete a Customs Clearance form and submit it to customs authorities along with other required documents.
Customs Duty is a tax imposed on imported goods by customs authorities #
Related terms include Customs Duty rate, Customs Duty exemption, and Customs Duty payment. The concept of Customs Duty is to generate revenue for the government and protect domestic industries by imposing a tax on imported goods. For instance, a company that imports goods from a foreign country may need to pay Customs Duty on the value of the goods, which can range from a few percent to over 100% of the value of the goods.
Customs Procedure Code is a code used to identify the customs procedure a… #
Related terms include Customs Procedure Code list, Customs Procedure Code application, and Customs Procedure Code validation. The concept of Customs Procedure Code is to provide a standardized way of identifying and classifying customs procedures, thereby facilitating the efficient and accurate processing of customs declarations. For example, a company that imports goods under a specific customs procedure may need to use the corresponding Customs Procedure Code on its customs declaration.
Customs Tariff is a schedule of duties and taxes imposed on imported good… #
Related terms include Customs Tariff schedule, Customs Tariff rate, and Customs Tariff classification. The concept of Customs Tariff is to provide a comprehensive list of duties and taxes applicable to imported goods, which is used to determine the amount of duty or tax payable on a specific shipment. For instance, a company that imports goods from a foreign country may need to consult the Customs Tariff schedule to determine the applicable duty rate and calculate the amount of duty payable.
Declaration is a statement made to customs authorities regarding the deta… #
Related terms include Declaration form, Declaration requirements, and Declaration validation. The concept of Declaration is to provide accurate and complete information about the shipment, including the description, value, and origin of the goods, which is essential for determining the applicable duties, taxes, and trade regulations. For example, a company that imports goods from a foreign country may need to complete a Declaration form and submit it to customs authorities along with other required documents.
Export Control is a regulation that restricts the export of certain goods… #
Related terms include Export Control list, Export Control license, and Export Control compliance. The concept of Export Control is to prevent the export of sensitive or strategic goods and technologies that could be used for military or other malicious purposes. For instance, a company that exports dual-use goods may need to obtain an Export Control license and comply with relevant regulations to ensure that the goods are not diverted to unauthorized end-users.
Free Trade Agreement is a treaty between countries that reduces or elimin… #
Related terms include Free Trade Agreement text, Free Trade Agreement benefits, and Free Trade Agreement implementation. The concept of Free Trade Agreement is to promote trade and economic cooperation between participating countries by reducing or eliminating tariffs, quotas, and other trade restrictions. For example, a company that exports goods to a country with which its home country has a Free Trade Agreement may benefit from reduced or eliminated tariffs, making its products more competitive in the foreign market.
Harmonized System is a classification system used to categorize goods for… #
Related terms include Harmonized System code, Harmonized System classification, and Harmonized System validation. The concept of Harmonized System is to provide a standardized and consistent way of classifying goods, which facilitates the efficient and accurate processing of customs declarations and the application of duties and taxes. For instance, a company that imports goods from a foreign country may need to classify its products under the Harmonized System to determine the applicable duty rate and calculate the amount of duty payable.
Incoterms is a term used to describe the delivery terms and responsibilit… #
Related terms include Incoterms definition, Incoterms application, and Incoterms clarification. The concept of Incoterms is to provide a standardized set of rules and guidelines for the delivery of goods, which helps to avoid misunderstandings and disputes between buyers and sellers. For example, a company that exports goods under the Incoterm "FOB" (Free on Board) may be responsible for loading the goods onto the ship, while the buyer may be responsible for unloading the goods at the port of destination.
Letter of Credit is a document that guarantees payment to the seller upon… #
Related terms include Letter of Credit application, Letter of Credit fee, and Letter of Credit negotiation. The concept of Letter of Credit is to provide a secure and reliable method of payment in international trade, which reduces the risk of non-payment or default by the buyer. For instance, a company that exports goods to a foreign country may require the buyer to open a Letter of Credit to guarantee payment upon presentation of compliant documents, such as the bill of lading and commercial invoice.
Pre #
Shipment Inspection is a process of inspecting goods before they are shipped. Related terms include Pre-Shipment Inspection application, Pre-Shipment Inspection fee, and Pre-Shipment Inspection report. The concept of Pre-Shipment Inspection is to verify the quality, quantity, and compliance of goods with relevant regulations and standards before they are shipped, which helps to prevent errors, defects, or non-compliance. For example, a company that exports goods to a foreign country may require a Pre-Shipment Inspection to ensure that the goods meet the required standards and regulations of the importing country.
Product Classification is the process of categorizing products under a sp… #
Related terms include Product Classification code, Product Classification system, and Product Classification validation. The concept of Product Classification is to provide a standardized way of categorizing products, which facilitates the efficient and accurate processing of customs declarations and the application of duties and taxes.
Rules of Origin are the regulations that determine the country of origin… #
Related terms include Rules of Origin definition, Rules of Origin application, and Rules of Origin verification. The concept of Rules of Origin is to provide a clear and consistent way of determining the country of origin of a product, which is essential for determining the applicable duties, taxes, and trade regulations. For example, a company that imports goods from a foreign country may need to comply with the Rules of Origin to determine the country of origin of the goods and calculate the applicable duty rate.
Single Administrative Document is a document used for customs declaration… #
Related terms include Single Administrative Document form, Single Administrative Document requirements, and Single Administrative Document validation. The concept of Single Administrative Document is to provide a standardized and simplified way of completing customs declarations, which facilitates the efficient and accurate processing of customs declarations and the application of duties and taxes. For instance, a company that imports goods into the European Union may need to complete a Single Administrative Document to declare the goods to customs authorities.
Supply Chain is the network of organizations, people, and activities invo… #
Related terms include Supply Chain management, Supply Chain optimization, and Supply Chain risk. The concept of Supply Chain is to provide a comprehensive and integrated approach to managing the flow of goods, services, and information from raw materials to end customers, which helps to improve efficiency, reduce costs, and enhance customer satisfaction. For example, a company that imports goods from a foreign country may need to manage its Supply Chain to ensure that the goods are delivered on time, in the right quantity, and at the right cost.
Tariff is a tax imposed on imported goods by customs authorities #
Related terms include Tariff rate, Tariff classification, and Tariff exemption. The concept of Tariff is to generate revenue for the government and protect domestic industries by imposing a tax on imported goods. For instance, a company that imports goods from a foreign country may need to pay Tariff on the value of the goods, which can range from a few percent to over 100% of the value of the goods.
Trade Agreement is a treaty between countries that reduces or eliminates… #
Related terms include Trade Agreement text, Trade Agreement benefits, and Trade Agreement implementation. The concept of Trade Agreement is to promote trade and economic cooperation between participating countries by reducing or eliminating tariffs, quotas, and other trade restrictions. For example, a company that exports goods to a country with which its home country has a Trade Agreement may benefit from reduced or eliminated tariffs, making its products more competitive in the foreign market.
Trade Compliance is the process of ensuring that a company's trade practi… #
Related terms include Trade Compliance program, Trade Compliance training, and Trade Compliance audit. The concept of Trade Compliance is to provide a comprehensive and integrated approach to managing trade risks and ensuring compliance with trade regulations, which helps to avoid penalties, fines, and reputational damage. For instance, a company that imports goods from a foreign country may need to establish a Trade Compliance program to ensure that its trade practices comply with relevant laws and regulations, such as customs regulations, export controls, and trade agreements.
Value #
Added Tax is a tax imposed on the value added to a product at each stage of production and distribution. Related terms include Value-Added Tax rate, Value-Added Tax exemption, and Value-Added Tax compliance. The concept of Value-Added Tax is to generate revenue for the government by imposing a tax on the value added to a product, which helps to reduce tax evasion and promote economic efficiency. For example, a company that imports goods from a foreign country may need to pay Value-Added Tax on the value of the goods, which can range from a few percent to over 20% of the value of the goods.
Warehouse is a facility used for storing goods #
Related terms include Warehouse management, Warehouse operations, and Warehouse logistics. The concept of Warehouse is to provide a secure and efficient way of storing goods, which helps to reduce costs, improve inventory management, and enhance customer satisfaction. For instance, a company that imports goods from a foreign country may need to use a Warehouse to store its goods before they are delivered to customers or distributed to other locations.
World Customs Organization is an international organization that promotes… #
Related terms include World Customs Organization membership, World Customs Organization standards, and World Customs Organization training. The concept of World Customs Organization is to provide a platform for countries to collaborate and cooperate on customs matters, which helps to promote trade facilitation, reduce customs barriers, and enhance customs compliance. For example, a company that imports goods from a foreign country may need to comply with customs regulations and procedures developed by the World Customs Organization, such as the Harmonized System and the Customs Convention on the Simplification and Harmonization of Customs Procedures.