# Customs and shipping glossary > Plain definitions of HS, HTS, CN and TARIC codes, de minimis, customs value, duty, import VAT, DDP, DAP, IOSS and landed cost, with links to the full guides. Source: https://border.bot/glossary Last updated: 2026-10-08 Short definitions of the terms that decide what a parcel pays at the border, with links to the full guides. ## Anti-dumping and countervailing duties Extra duties on specific products from specific countries, and sometimes from specific manufacturers, that offset dumping (selling below normal value) or foreign subsidies. They are charged on top of the normal rate, which is why the same HS code can cost more from one origin than from another. Read more: [Country of origin vs shipped from](https://border.bot/blog/country-of-origin-vs-shipped-from). ## Binding ruling A written decision by a customs authority on how a specific product is classified, which that authority then has to apply to it. Examples are CBP rulings in the US (searchable in CROSS), Binding Tariff Information (BTI) in the EU and Advance Tariff Rulings (ATaR) in the UK. Read more: [What is an HS code?](https://border.bot/blog/what-is-an-hs-code). ## CN code (Combined Nomenclature) The EU’s 8-digit product code. The first 6 digits are the HS code and the last 2 are EU subdivisions. The CN sets the EU’s customs duty rates. Read more: [HS vs HTS vs CN/TARIC](https://border.bot/blog/hs-hts-cn-taric-commodity-codes). ## Commodity code (UK) The UK’s product code in the UK Trade Tariff: 10 digits for imports and 8 for exports. The first 6 digits are the HS code. Read more: [HS vs HTS vs CN/TARIC](https://border.bot/blog/hs-hts-cn-taric-commodity-codes). ## Country of origin Where goods were made, or where they last went through a substantial change, under the importing country’s rules of origin. It decides the duty rate and any extra duties. It is not the country the parcel ships from. Read more: [Country of origin vs shipped from](https://border.bot/blog/country-of-origin-vs-shipped-from). ## Customs value The value duty is calculated on, usually the price paid for the goods (the transaction value). The EU and the UK add transport and insurance to the border (a CIF basis); the US and Canada leave international freight out. Read more: [Landed cost explained](https://border.bot/blog/landed-cost-explained). ## DAP (Delivered at Place) An Incoterms rule: the seller delivers to the named destination, and the buyer pays the import duty and taxes and handles import clearance. For parcels, that usually means the customer pays the carrier on delivery. Read more: [DDP vs DAP for parcels](https://border.bot/blog/ddp-vs-dap-ecommerce). ## DDP (Delivered Duty Paid) An Incoterms rule: the seller handles import clearance and pays the import duty and taxes, so the customer pays nothing on delivery. Ecommerce sellers usually collect the amount at checkout. Read more: [DDP vs DAP for parcels](https://border.bot/blog/ddp-vs-dap-ecommerce), [Free landed cost calculator](https://border.bot/tools/landed-cost-calculator). ## De minimis A value below which a country waives duty, tax or both on an import. Thresholds differ by country and change: the US suspended its $800 duty exemption on 29 August 2025, and since 1 July 2026 the EU charges €3 per tariff classification on parcels worth up to €150. Read more: [US de minimis suspension](https://border.bot/blog/us-de-minimis-suspension), [The EU’s €3 customs duty](https://border.bot/blog/eu-3-euro-customs-duty). ## Duty (customs duty) A tax on imported goods, set by the tariff line for the product’s code and country of origin. It can be a percentage of the customs value (ad valorem), an amount per unit or weight (specific), or both (compound). Read more: [Landed cost explained](https://border.bot/blog/landed-cost-explained), [Free landed cost calculator](https://border.bot/tools/landed-cost-calculator). ## Formal entry (US) The full US customs entry, generally required for shipments worth more than $2,500 and for some goods at any value. It needs a customs bond and is usually filed by a licensed customs broker. Read more: [US de minimis suspension](https://border.bot/blog/us-de-minimis-suspension). ## General Rules of Interpretation (GRI) The six rules, applied in order, that decide which heading and subheading of the Harmonized System a product belongs to. Most products are classified under Rule 1: the wording of the headings and the section and chapter notes. Read more: [What is an HS code?](https://border.bot/blog/what-is-an-hs-code). ## HS code (Harmonized System code) A 6-digit product code from the Harmonized System, maintained by the World Customs Organization and used by most countries as the basis of their tariffs. Countries add digits for their own tariff lines, such as the 10-digit US HTS code. Read more: [What is an HS code?](https://border.bot/blog/what-is-an-hs-code), [Free HS code classifier](https://border.bot/tools/hs-code-classifier). ## HTS code (Harmonized Tariff Schedule of the United States) The US 10-digit product code, published by the US International Trade Commission. The first 6 digits are the HS code, the first 8 set the duty rate, and the last 2 are for statistics. Read more: [HS vs HTS vs CN/TARIC](https://border.bot/blog/hs-hts-cn-taric-commodity-codes), [Free HS code classifier](https://border.bot/tools/hs-code-classifier). ## Import VAT and GST Consumption tax charged on imports at the destination’s rate, such as VAT in the EU and the UK or GST in Canada and Australia. It is usually calculated on the customs value plus duty, so duty raises the tax too. Read more: [Landed cost explained](https://border.bot/blog/landed-cost-explained). ## Incoterms Standard trade terms from the International Chamber of Commerce (the current set is Incoterms 2020) that say who pays for and handles transport, insurance and customs. DDP and DAP are the two that matter most for parcels. Read more: [DDP vs DAP for parcels](https://border.bot/blog/ddp-vs-dap-ecommerce). ## Informal entry (US) A simplified US customs entry for most shipments worth $2,500 or less. With de minimis suspended, low-value courier parcels use it, and since 24 July 2026 parcels sent by post use CBP’s postal informal entry process. Read more: [US de minimis suspension](https://border.bot/blog/us-de-minimis-suspension). ## IOSS (Import One-Stop Shop) An EU scheme for collecting VAT at checkout on goods sent to EU consumers in consignments worth up to €150. The registered seller declares and pays the VAT monthly in one EU country, and the parcel clears without VAT being charged again. Read more: [The EU’s €3 customs duty](https://border.bot/blog/eu-3-euro-customs-duty). ## Landed cost The full cost of getting goods to the buyer: the price, shipping and insurance, plus duty, import taxes and fees. It is what the customer pays in total, at checkout or on delivery. Read more: [Landed cost explained](https://border.bot/blog/landed-cost-explained), [Free landed cost calculator](https://border.bot/tools/landed-cost-calculator). ## Merchandise processing fee (MPF) A US CBP fee on imports. Formal entries pay a percentage of the value, with a minimum and a maximum; informal entries pay a smaller flat fee. Read more: [Landed cost explained](https://border.bot/blog/landed-cost-explained). ## Preferential origin Origin that qualifies goods for a lower or zero duty rate under a trade agreement, such as USMCA or the EU–UK Trade and Cooperation Agreement. The goods have to meet that agreement’s rules of origin, and the importer usually needs proof. Read more: [Country of origin vs shipped from](https://border.bot/blog/country-of-origin-vs-shipped-from). ## Section 321 The US de minimis provision (19 U.S.C. 1321), which let shipments worth $800 or less, imported by one person on one day, enter free of duty. It has been suspended for goods from every country since 29 August 2025, and a 2025 law ends it on 1 July 2027. Read more: [US de minimis suspension](https://border.bot/blog/us-de-minimis-suspension). ## TARIC code The EU’s integrated tariff code: 10 digits that add EU measures, such as anti-dumping duties, tariff suspensions and quotas, to the 8-digit CN code. Read more: [HS vs HTS vs CN/TARIC](https://border.bot/blog/hs-hts-cn-taric-commodity-codes).