Customs terms, defined
The vocabulary that turns up on your paperwork, in plain language and without the circular definitions.
Licensed U.S. customs brokerage. Customs broker of record; movement coordinated through vetted partners.
These are the terms that appear on customs paperwork and in messages from your broker, defined in the sense they are actually used. Where a term has a narrow technical meaning that differs from its ordinary one, that is usually where the confusion starts.
Key takeaways
- Several of these terms mean something narrower than they sound.
- Demurrage and detention are different charges from different parties.
- Liquidation is when an entry becomes final, not when duty is paid.
- Entry is a filing, not the physical arrival of goods.
- Where a term matters to your exposure, the detail is on its own page.
Terms
- Entry The filing that declares imported goods to customs. A document set, not the physical arrival.
- Importer of record The party legally responsible for the entry, the duty and the records.
- Customs bond A guarantee that duties and obligations will be met. Protects revenue, not the importer.
- HTS code The ten-digit classification identifying the goods and setting duty treatment.
- Country of origin Where goods were produced or substantially transformed. Not where they shipped from.
- ISF The Importer Security Filing, due before ocean cargo is loaded at origin.
- Liquidation The point at which an entry and its duty become final.
- Reasonable care The standard expected of an importer: active steps to get it right, not merely honesty.
- Demurrage Charged while cargo sits in the terminal beyond free time. Billed by the terminal.
- Detention Charged while you hold carrier equipment beyond free time. Billed by the carrier.
- Free time The allowance before demurrage or detention begins. Runs continuously, including weekends.
- Drayage Short-haul trucking between the terminal, facilities and your warehouse.
- Devanning Unloading a container. Required for an intensive examination.
- AD/CVD Antidumping and countervailing duties, applied to specific goods from specific countries.
- Binding ruling A determination requested in advance that customs is bound to apply.
- Drawback A refund of duty on goods that are subsequently exported.
- Bonded warehouse A facility where goods can be stored before duty is paid.
- Broker of record The licensed broker authorised to transact customs business on your behalf.
Questions
Why does liquidation matter?
Because it is when the entry becomes final. Before it, duty can still be adjusted; the entry is not closed simply because you paid at the time of filing.
What does reasonable care actually require?
Active steps to get the declaration right — asking questions, keeping records, seeking advice where the answer is unclear. It is not satisfied by honestly repeating what a supplier told you.
Is a customs broker the same as a freight forwarder?
No. A broker is licensed to transact customs business and files your entry. A forwarder arranges the movement of goods. Some companies do both; they are distinct functions.
Related
Tell us what you're importing.
Commodity, origin, port and arrival date is enough to start.