# Cross-border shipping and customs terms

> Plain definitions of the customs, tax and shipping terms cross-border sellers meet, from ad valorem duty to wholly obtained, with links to the full guides.

Source: https://border.bot/docs/guides/terminology
Last updated: 2026-10-30

> Documentation index: https://border.bot/llms.txt. Every page is Markdown at its URL + `.md`.


> [!IMPORTANT] Several terms changed in 2026
> The Supreme Court held on 20 February 2026 that IEEPA doesn't authorize tariffs, CBP suspended US de minimis indefinitely on 24 June 2026, the EU's €3 low-value duty started on 1 July 2026 and CPSC eFiling became mandatory on 8 July 2026.

Cross-border trade has its own vocabulary: the codes, duties, documents and trade terms that decide what a parcel pays and who pays it. This page defines each one in a sentence or two, in alphabetical order, and links to the guide that explains it in full. The shortest versions of the core terms are also in our [glossary](https://border.bot/glossary), and the [US tariff changes](https://border.bot/docs/guides/us-tariff-changes) and [de minimis](https://border.bot/docs/guides/de-minimis) guides cover the 2026 changes in full.

Rules as of 30 October 2026.

## Cross-border terms from A to Z

The table lists the terms sellers meet most on quotes, invoices, declarations and carrier bills, from ad valorem duty to wholly obtained. Each definition is short on purpose: follow the link for the rules, the numbers and the worked examples, and check the date at the top, because several of these rules moved in the last two years.

| Term | What it means |
| --- | --- |
| Ad valorem duty | A duty charged as a percentage of the customs value. A specific duty charges an amount per unit or weight instead, and a compound duty combines both. See [duty](https://border.bot/glossary/duty). |
| Air waybill (AWB) | The transport document for goods sent by air, issued by or for the airline. See [air waybill vs bill of lading](https://border.bot/docs/guides/air-waybill-vs-bill-of-lading). |
| Anti-dumping and countervailing duties (AD/CVD) | Extra duties on specific products from specific countries, and sometimes specific makers, that offset dumping or foreign subsidies. They come on top of the regular rate. See [AD/CVD in the US](https://border.bot/docs/guides/countries/united-states/ad-cvd). |
| Bill of lading | The transport document for goods sent by sea, issued by the carrier as its receipt for the goods. See [air waybill vs bill of lading](https://border.bot/docs/guides/air-waybill-vs-bill-of-lading). |
| Binding ruling | A written decision by a customs authority on how a specific product is classified, which it then applies to that product. US rulings are issued under 19 CFR Part 177 and published in CBP's CROSS database. |
| Certificate of origin | A document stating where goods were made, usually issued by a chamber of commerce in the exporting country. See [certificates of origin](https://border.bot/docs/guides/country-of-origin/certificates). |
| CIF (Cost, Insurance and Freight) | An Incoterms rule for sea transport, in which the seller pays the freight and insurance to the destination port. |
| CN code | The EU's 8-digit Combined Nomenclature code: the 6-digit HS code plus two EU digits that set the common customs tariff. See [HS codes](https://border.bot/docs/guides/hs-codes). |
| Commercial invoice | The seller's invoice for the goods, which customs use to check what they are, what they cost and where they were made. See [commercial invoices](https://border.bot/docs/guides/commercial-invoices). |
| Country of origin | The country where goods were wholly obtained or last substantially transformed, not where they shipped from. See [country of origin](https://border.bot/docs/guides/country-of-origin) and the [glossary entry](https://border.bot/glossary/country-of-origin). |
| CPSC eFiling | The US requirement, in force since 8 July 2026, to file certificate data electronically when consumer products regulated by CPSC are imported. See [CPSC](https://border.bot/docs/guides/countries/united-states/agencies/cpsc). |
| Customs broker | An agent who prepares and files customs entries, and often pays the duty, on an importer's behalf. See [customs clearance](https://border.bot/docs/guides/customs-clearance). |
| Customs union | A group of countries that form one customs territory with a common external tariff, such as the EU. See [trade agreements](https://border.bot/docs/guides/trade-agreements). |
| Customs value | The value duty is worked out on, usually the price paid for the goods. The EU and the UK add transport and insurance to the border; the US and Canada leave international freight out. See [landed cost](https://border.bot/docs/guides/landed-cost). |
| DAP (Delivered at Place) | An Incoterms rule in which the seller delivers to a named place and the buyer handles import clearance and pays the duty and taxes. See [DDP](https://border.bot/docs/guides/ddp). |
| DDP (Delivered Duty Paid) | An Incoterms rule in which the seller handles import clearance and pays the duty and taxes, so the buyer pays nothing on delivery. See [DDP](https://border.bot/docs/guides/ddp). |
| De minimis | The value below which a country charges no duty, no import tax, or neither. The US suspended its $800 exemption indefinitely by CBP rules of 24 June 2026. See [de minimis](https://border.bot/docs/guides/de-minimis) and the [glossary entry](https://border.bot/glossary/de-minimis). |
| DPU (Delivered at Place Unloaded) | An Incoterms rule, formerly called DAT, in which the seller delivers the goods unloaded at a named place. |
| Duty | A tax on imported goods, set by the tariff line for the product's code and origin. See [duty calculation](https://border.bot/docs/guides/duty-calculation) and the [glossary entry](https://border.bot/glossary/duty). |
| Duty drawback | A refund of duty paid on imported goods that are later exported, under conditions the importing country sets. |
| EEI (Electronic Export Information) | US export data filed through the Automated Export System. It's generally not needed where each Schedule B or HTS line in a shipment is worth $2,500 or less, with exceptions. See [US export documents](https://border.bot/docs/guides/countries/united-states/export-documents). |
| EORI number | The ID businesses use for customs in the EU and the UK. UK numbers start with GB for Great Britain and XI for Northern Ireland. See [EORI](https://border.bot/docs/guides/countries/european-union/eori). |
| FCA (Free Carrier) | An Incoterms rule in which the seller hands the goods to the buyer's carrier at a named place. |
| Formal and informal entry (US) | The two kinds of US customs entry. Informal entry is available for most shipments worth $2,500 or less; larger and some regulated shipments need a formal entry. See [the US entry process](https://border.bot/docs/guides/countries/united-states/entry-process). |
| General Rules of Interpretation (GRI) | The six rules, applied in order, that decide which heading and subheading of the HS a product belongs to. See [general rules](https://border.bot/docs/guides/hs-codes/general-rules). |
| HS code | The 6-digit product code from the WCO's Harmonized System, the base of most countries' tariffs. See [HS codes](https://border.bot/docs/guides/hs-codes) and the [glossary entry](https://border.bot/glossary/hs-code). |
| HS edition | A version of the Harmonized System. HS 2022 is in force; HS 2028 enters into force on 1 January 2028. See [HS editions](https://border.bot/docs/guides/hs-codes/hs-editions). |
| HTS code | The US 10-digit tariff code: 6 HS digits, 2 digits that set the duty and 2 statistical digits. See the [glossary entry](https://border.bot/glossary/hts-code). |
| ICS2 | The EU's advance cargo information system, through which safety and security data on goods is filed before they arrive. See [ICS2](https://border.bot/docs/guides/countries/european-union/ics2). |
| IEEPA | The International Emergency Economic Powers Act. On 20 February 2026 the US Supreme Court held in Learning Resources v. Trump that it doesn't authorize the President to impose tariffs. See [US tariff changes](https://border.bot/docs/guides/us-tariff-changes). |
| Import VAT and GST | Consumption tax charged on imports at the destination's rate, usually on the customs value plus duty. See [VAT, GST and sales tax](https://border.bot/docs/guides/vat-gst-sales-tax). |
| Importer of record | The party responsible for an import entry. In the US it has to use reasonable care to enter, classify and value the goods. |
| Incoterms | The International Chamber of Commerce's 11 three-letter trade terms that set who pays for and handles transport, insurance and customs. The current set, Incoterms 2020, took effect on 1 January 2020. |
| IOSS (Import One-Stop Shop) | The EU scheme that lets a registered seller charge import VAT at checkout on low-value goods sent to EU consumers and declare it monthly in one member state. See [EU VAT](https://border.bot/docs/guides/countries/european-union/vat). |
| Landed cost | The full cost of getting goods to the buyer: price, shipping and insurance, plus duty, import taxes and fees. See [landed cost](https://border.bot/docs/guides/landed-cost) and the [glossary entry](https://border.bot/glossary/landed-cost). |
| Low-value consignment duty (EU) | The EU's temporary €3 customs duty per tariff classification on parcels worth up to €150, from 1 July 2026 to 1 July 2028. See [the EU's €3 duty](https://border.bot/blog/eu-3-euro-customs-duty). |
| Merchandise processing fee (MPF) | A US CBP fee on import entries. A USMCA preference claim includes an exemption from it. |
| MFN rate | The regular duty rate a WTO member applies to goods from other members when no preference applies. |
| Preferential origin | Origin that qualifies goods for a lower rate under a trade agreement, when they meet its rules of origin and the importer has proof. See [trade agreements](https://border.bot/docs/guides/trade-agreements). |
| Pro forma invoice | An invoice issued before a sale is final, or for goods that aren't being sold, such as samples. The [invoice generator](https://border.bot/tools/commercial-invoice-generator) makes both kinds. |
| REX (Registered Exporter system) | The EU's register of exporters who can make statements on origin. Registration is needed for shipments of originating goods worth more than €6,000. |
| Rules of origin | The conditions goods must meet to count as originating in a country, for ordinary duty or for a trade agreement. See [country of origin](https://border.bot/docs/guides/country-of-origin). |
| Schedule B | The US export commodity code, maintained by the Census Bureau and used in export filings. |
| Section 232 | US additional duties under Section 232, which in 2026 cover goods such as steel, aluminum and copper and products made from them. See [Section 232](https://border.bot/docs/guides/countries/united-states/section-232). |
| Section 301 | US additional duties under Section 301, aimed at the goods of specific countries. See [Section 301](https://border.bot/docs/guides/countries/united-states/section-301). |
| Section 321 | The US de minimis provision for shipments worth $800 or less. CBP suspended it indefinitely by rules published on 24 June 2026, for mail from 24 July 2026. See the [glossary entry](https://border.bot/glossary/section-321). |
| Statement on origin | A declaration of origin the exporter writes on the invoice under EU and some other trade agreements, in place of a certificate. See [certificates of origin](https://border.bot/docs/guides/country-of-origin/certificates). |
| Substantial transformation | Processing that turns goods into a new and different article, which moves their origin to the country where it happened. |
| TARIC code | The EU's 10-digit integrated tariff code, which adds EU measures such as anti-dumping duties, quotas and suspensions to the CN code. |
| Tariff | A country's schedule of duty rates by product code, and often the duty itself. |
| USMCA | The United States-Mexico-Canada Agreement. US importers claim it by putting "S" or "S+" before the HTS subheading. See [USMCA](https://border.bot/docs/guides/countries/united-states/trade-agreements/usmca). |
| Wholly obtained | Goods produced entirely in one country, such as crops grown or minerals mined there, which always originate in that country. |

## Common questions

### What is the difference between DDP and DAP?

Under DDP the seller pays the import duty and taxes and handles clearance; under DAP the buyer does, usually when the parcel is delivered. Both are Incoterms rules from the International Chamber of Commerce.

### Is de minimis the same in every country?

No. Each country sets its own threshold, some for duty only and some for duty and tax, and the US suspended its $800 exemption indefinitely in 2026.

### What is the difference between an HS code and an HTS code?

An HS code is the 6-digit international code. An HTS code is the US 10-digit code built on it, with two digits that set the duty and two for statistics.

## Sources

- [ICC: Incoterms 2020](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/), International Chamber of Commerce, checked 2026-10-30
- [Learning Resources, Inc. v. Trump, No. 24-1287](https://www.supremecourt.gov/opinions/25pdf/24-1287_4gcj.pdf), Supreme Court of the United States, 2026-02-20
- [CBP: Indefinite Suspension of the De Minimis Exemption for Merchandise Arriving Through All Modes Other Than the International Postal Network (91 FR 37789)](https://www.federalregister.gov/documents/2026/06/24/2026-12670/indefinite-suspension-of-the-de-minimis-exemption-for-merchandise-arriving-through-all-modes-other), Federal Register, 2026-06-24
- [CBP: Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process (91 FR 37801)](https://www.federalregister.gov/documents/2026/06/24/2026-12669/indefinite-suspension-of-the-de-minimis-exemption-for-mail-shipments-and-new-postal-informal-entry), Federal Register, 2026-06-24, effective 2026-07-24
- [CPSC: Certificates of Compliance (90 FR 1800)](https://www.federalregister.gov/documents/2025/01/08/2024-30826/certificates-of-compliance), Federal Register, 2025-01-08, effective 2026-07-08
- [European Commission: Guidance and legal text for the temporary flat fee on low-value imports](https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en), European Commission, 2026-06-08
- [WCO: Amendments effective from 1 January 2028](https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2028-edition/amendments-effective-from-1-january-2028.aspx), World Customs Organization, checked 2026-10-30
- [19 CFR 143.21: Merchandise eligible for informal entry](https://www.ecfr.gov/current/title-19/section-143.21), Electronic Code of Federal Regulations, current as of 2026-10-01
- [19 CFR 182.11: Filing of claim for USMCA preferential tariff treatment](https://www.ecfr.gov/current/title-19/section-182.11), Electronic Code of Federal Regulations, current as of 2026-10-01
- [15 CFR 30.37: Miscellaneous exemptions from filing EEI](https://www.ecfr.gov/current/title-15/section-30.37), Electronic Code of Federal Regulations, current as of 2026-10-01
- [CBP: What Every Member of the Trade Community Should Know About: Tariff Classification](https://www.cbp.gov/document/publications/tariff-classification), U.S. Customs and Border Protection, page updated 2026-01-07
- [HMRC: Economic Operators Registration and Identification (EORI)](https://www.gov.uk/guidance/economic-operators-registration-and-identification-eori/introduction), HM Revenue and Customs, updated 2025-09-10
- [European Commission: ICS2](https://taxation-customs.ec.europa.eu/customs-4/customs-security/ics2_en), European Commission, checked 2026-10-30
- [European Commission Access2Markets: REX system](https://trade.ec.europa.eu/access-to-markets/en/content/rex-system), European Commission, checked 2026-10-30
- [WTO: General Agreement on Tariffs and Trade 1947, Article XXIV](https://www.wto.org/english/docs_e/legal_e/gatt47_02_e.htm), World Trade Organization, treaty text