Glossary of Customs and Trade Terms

Glossary of Customs and Trade Terms

Ad Valorem - This is a Latin term meaning “according to the value. Literally means According to Value. It is the primary method by which Customs duties are calculated. An Ad Valorem duty is a duty based on the value of the merchandise. This is in contrast to specific duties which are calculated on the weight, volume or item count and compound duties which are a combination of ad valorem and specific duties.

Agreed time-frames for processing import and export transactions

​The agreed time-frames for processing import and export transactions are:

· electronically lodged entries processed within 30 minutes

· manually lodged entries processed within 24 hours.

ALAC Levies (Alcoholic Liquor Advisory Council)

​These are levies imposed under the Alcoholic Liquor Advisory Council Act 1976. Customs collects them on behalf of ALAC, a Government agency whose aim is to encourage responsible attitudes to alcohol. Levies are based on alcohol content. Drinks with a higher volume of alcohol contribute a higher proportion to the levy. New rates come into effect every 1 July.

 

Alcoholic and Liquor Advisory Council (ALAC) levy

​These are levies imposed under the Alcoholic Liquor Advisory Council Act 1976. Customs collects them on behalf of ALAC, a Government agency whose aim is to encourage responsible attitudes to alcohol. Levies are based on alcohol content. Drinks with a higher volume of alcohol contribute a higher proportion to the levy. New rates come into effect every 1 July.

Antidumping Duty - An additional duty imposed by the United States against specific products from certain countries in order to "offset" the unfair pricing of the imported product. These duties, at least in theory, are not punitive in nature, these duties are imposed at the end of an antidumping duty investigation. An Antidumping investigation is a complex investigation conducted by two U.S. agencies, the International Trade Administration and the International Trade Commission.

Antidumping Duty Deposit - The deposit collected by the U.S. Customs Service at the time of entry of merchandise subject to an antidumping duty order. The deposit is based on the most recently concluded review. The actual amount to be paid will depend on the results of the administrative review, if any, for the period in question and the actual duties may be higher or lower.

Anti-dumping and countervailing duty

​A charge or tax imposed to offset any advantage or gain that might come from dumping imported goods in New Zealand. Customs collects anti-dumping duties on behalf of the Ministry of Economic Development.

Assists - Something of value provided by an importer to a foreign producer. The value of the assist needs to be added to the transaction value when calculating Customs value. Typical assist include tooling, packaging, and parts.

Alerts

​These are notifications about people, goods or craft who are suspected of border or revenue transgressions.

 

 

» Go to section

API

​Advance Passenger Information.

ATA Carnet

The ATA Carnet is an international Customs document. Issued under the terms of the ATA Convention and the Istanbul Convention, it incorporates an internationally valid guarantee.
The carnet can be used in place of national Customs documents and as security for import duties and taxes. This covers the temporary admission of goods and the transit of goods.
The ATA Carnet can also be accepted to control the temporary export and re-importation of goods. However, in this case, the international guarantee does not apply.

Biometric identification

​The use of complicated algorithmic equations to identify people. By electronically analysing an actual person’s facial features, including eyes and face shape, and comparing them with the corresponding digital information encoded in that individual’s passport, this system can make a 100% accurate match. It is used in SmartGate technology at airports.

 

» Go to section

Border Sector

​The border sector is the name given to the five core government agencies – and associated agencies – collectively responsible for operations at New Zealand’s borders.

 

Bonded Goods

These are goods stored in a secure warehouse. While they remain there, they are not liable for any payment of import duty. That is, until the duty is paid or the goods are exported or legally dealt with.

 

Brokerage

Often refers to customs brokerage, where a third party is used for the clearance of inbound or outbound shipments.

Cargo Manifest

A Cargo Manifest lists the goods carried in a means of transport or in a transport-unit.
The manifest gives the commercial details of the goods, such as:

§ transport document numbers

§ consignors and consignees

§ marks and numbers

§ number and kind of packages

§ descriptions and quantities of goods

It may be used in place of the Cargo declaration.

CASE

​Customs-approved area for storing exports.

CCA

Customs Controlled Area.

CCO

​Chief Customs Officer.

Certificate of Origin

This is a specific document that expressly certifies that the goods to which the certificate relates, originate in a specific country.
This Certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person.

Certificate of clearance

​Documentation needed by commercial aircraft or ships as they leave New Zealand. The information includes details of departure, crew, passengers and cargo.

 

CIF

An abbreviation used in some international sales contracts, when the selling price includes all “Costs, Insurance and Freight” for the goods sold.
This means that the seller arranges and pays for all relevant expenses involved in shipping goods – from their point of export to a given point of import.
In trade statistics, “CIF value” means that all figures for imports or exports are calculated on this basis, regardless of the nature of individual transactions.

 

CIF

​Cost Insurance Freight. The valuation method used for the calculation of duty and GST.

 

» Go to section

CITES

​Convention on International Trade in Endangered Species of Wild Fauna and Flora.

 

Client code

​A unique identification number for importers, exporters and manufacturers. Client codes are only issued to New Zealand entities, such as registered New Zealand companies. The codes are required where import and export shipments are valued in excess of NZ$1,000.

Compliance checks

​Following an alert, goods will be checked by Customs to ensure their compliance with import and export regulations. All inspections, whether the goods are held or cleared, are registered as compliance checks.

 

» Go to section

Comptroller

The Chief Executive Officer of Customs. The title with its particular spelling is traditional and specific to the New Zealand Customs Service.

 

Con note

​A contractor’s note containing delivery instructions for a driver.

 

» Go to section

Concessions

​A concession is granted when Customs duty is reduced or removed from goods that would normally be subject to it. Some goods may be admitted free of GST as well.

Contraband

​Goods which are forbidden by law to be imported, exported or possessed.

 

» Go to section

Counterfeit

​Copied without authority.

Consular Invoice

This is a detailed statement of goods shipped, certified by the consulate of a country. It is required by certain foreign governments that want a tighter control over imports.

 

Customs Declaration

Any statement or action, in any form prescribed or accepted by Customs, giving information or particulars required by Customs.

Compound Duty - A duty which is calculated based on both the value of the goods as well as the weight, volume or number.

Consumer Product Safety Commission - The agency charged with the duty to protect U.S. consumers from dangerous goods, such as toys that present a risk of choking in children under the age of 3. The U.S. Customs Service has the primary responsibility for enforcing CPSC requirements at the time of entry.

Countervailing Duty - A duty unilaterally imposed by the United States against specific products from certain countries in order to offset improper subsidies provided by the government of that country. It is imposed at the end of a countervailing duty investigation. A CVD investigation is a complex investigation conducted by two U.S. agencies, the International Trade Administration and the International Trade Commission.

Countervailing Duty Deposit - The deposit collected by the U.S. Customs Service at the time of entry of merchandise subject to a countervailing duty order. The deposit is based on the most recently concluded review. The actual amount to be paid will depend on the results of the administrative review, if any, for the period in question and the actual duties may be higher or lower.

Customs Service – 1. The agency of the Treasury Department that enforces import tariffs

2. A part of the Treasury Department which is charged with the primary responsibility for administering the Customs Laws of the United States. Among its key areas of responsibility are the examination of all merchandise which enters the United States and the collection of duty on those entries. The Customs Service administers more than 400 laws for over 40 agencies, including the Fish and Wildlife Service, the Food and Drug Administration, the Federal Trade Commission, and the Consumer Product Safety Commission.

Customs Value - The value assigned to merchandise at the time of entry. It is used as the basis for assessing the amount of duty and taxes owed and for other purposes. It can be calculated in a number of ways, but the preferred method of valuation is transaction value.

Customshouse Broker - The licensed individual or company who assists the importer in the import transaction by preparing the import documents and files them with the Customs Service. Brokers are licensed by the U.S. Customs Service.

This is a glossary definition only. For further information you may wish to search for the term Border Sector.

» Go to section

 

This is a glossary definition only. For further information you may wish to search for the term Client code.

 

» Go to section

CusMod

​CusMod is the collective name for the computer applications currently used by Customs. It stands for Customs Modernisation – the description coined for the multi-million dollar modernisation of Customs processes and technology that was rolled out in July 1997.

 

» Go to section

CusMod Business Analysts

​Staff who assist business units by enhancing CusMod applications.

» Go to section

» Go to section

Customs controlled area

​An area that is licensed for one or more of the purposes described in section 10 of the Customs and Excise Act 1996, or Regulation 6 of the Customs and Excise Regulations 1996. For the full description of these purposes and the different types of CCA go to Customs controlled areas. (sse glossary item 'CCA')

 

» Go to section

Customs duty

​A sum of money an importer will have to pay to bring goods into New Zealand. It is worked out by using the duty rate that applies to that item, multiplying it by the Customs value of the item, then taking into account any preferences, concessions or duty free allowances that might apply.

 

» Go to section

Customs place

​A Customs port or Customs airport designated under Section 9 of the Customs and Excise Act 1996.

 

» Go to section

Customs' rates of exchange

​International currency exchange rates set by Customs every two weeks. They are used to work out the New Zealand dollar value of imported goods.

Customs Release

​The Customs e-zine, published fortnightly and emailed to subscribers and stakeholders such as brokers etc.

Customs teams work queues

​Intelligence-based targeting – or alerts – generate activity reports concerning imports that need to be checked by a Customs officer. ARs are assigned to appropriate teams.

 

» Go to section

Customs value

​The value given to imported goods to establish what duty might be owing on them. The value is established using various methods. Transaction value is the most usual way of establishing Customs value. If that cannot be established, other assessment methods will be used. Customs value does not include freight, shipping, insurance and costs.

Department of Commerce - A Cabinet level department which has the responsibility for administering the International Trade Laws. It is also charged with the duty to both regulate and assist U.S. exporters. Agencies within the Commerce Department include the International Trade Administration, and the Bureau of Export Administration.

De Minimis

This is a Latin term and is a shortened version of the expression “de minimis non curat lex” meaning “the law does not care about very small matters.”
It is often considered more efficient to waive very small amounts of duties and taxes rather than collect them.

Drawback - A process by which a U.S. exporter can receive a return of duties which were paid upon importation of merchandise at the time of, and by reason of, the export. A number of types of drawback are available including same-condition drawback, substitution drawback and manufacturing drawback.

De minimis

​This latin term is used to refer to the minimum amount of duty collectable in terms of Regulation 70 of the Customs and Excise Regulations 1996.

 

» Go to section

Declarant code

​Code given to individual users of the Customs online declarations website or Electronic Data Interchange.

 

» Go to section

Delivery order

​A Customs clearance. Allows goods to be released to the importer, or placed aboard a craft to be exported. If your goods are cleared for import or export you will receive a delivery order electronically. This can be used to collect your goods from the freight forwarder or shipping agent.

 

Denatured

​Rendered unfit for human consumption – for example, denatured alcohol.

 

» Go to section

Detained goods

Goods held by Customs because more information is needed or they need further examination

» Go to section

DoC

​Department of Conservation. (http://www.doc.govt.nz)

 

» Go to section

Drawback

​A refund of duty when goods which have been imported are re-exported.

 

Dumped goods

​Goods sold to importers in New Zealand at prices lower than their selling price in the exporter’s domestic market – or at prices lower than their full cost. The amount or margin of dumping can be offset by imposing an anti-dumping duty.

 

» Go to section

Duty

​Money payable on imported goods in accordance with The Working Tariff Document

 

» Go to section

Duty rate

​All goods attract different rates, depending on their type. Rates are set in The Working Tariff Document of New Zealand according to the tariff classification of the goods. The duty rate is then multiplied by the Customs value to work out the Customs duty.

 

» Go to section

Duty-free

​This is where no Customs duty is payable on an item when it comes into a country.

EDI

Electronic Data Interchange – the electronic transmission of data.

 

» Go to section

EEO

​Equal Employment Opportunity.

 

» Go to section

Excisable goods

​Alcohol, tobacco or fuel that is manufactured in a native country.

 

Excise duty

​Duty payable on domestically manufactured commercial goods in accordance with Part A of Schedule 3 of the Customs and Excise Act 1996.

Excise licensee

​A person or company licensed by the New Zealand Customs Service to manufacture excisable goods.

 

» Go to section

Excise-equivalent duty

​Duty payable on imported excisable goods in accordance with Part B of Schedule 3 of the Customs and Excise Act 1996.

 

» Go to section

Export entry

​A declaration used by government to collect trade data and to ensure compliance with legislation.

Export entry clearance fee

A fee charged by Customs for processing the clearance of goods exported out of New Zealand.​

 

» Go to section

Export warehouse CCA

​Place licensed to store imported goods and domestically manufactured goods – without payment of duty, excise duty, excise-equivalent duty or GST – pending the export of those goods. See also Customs Controlled Areas.

 

» Go to section

Forfeit goods

​Where the title of the goods moves to the Crown. This is because the goods have breached the Customs and Excise Act 1996. When goods become forfeit, the owner’s entitlement to the goods ceases.

 

» Go to section

Free on board (FOB)

​The total value of goods for export at the time they are loaded on board the export craft or are accepted by the postal service. The value includes all costs to that point, such as packaging, packing and transport.

Free Zone

An area within a country (a seaport, airport, warehouse or any designated area) regarded as being outside its customs territory.
Importers may therefore bring goods of foreign origin into such areas without paying customs duties and taxes. This is always pending eventual processing, trans-shipment or re-exportation.
Free zones were once numerous and prosperous when tariffs were higher many years ago. Some still exist in capital cities, transport junctions and major seaports, but their number and prominence have declined as tariffs have fallen in recent years.
Free zones may also be known as "free ports," "free warehouses," "free trade zones" and "foreign trade zones."

 

FrontLine

A business partnership programme, designed to link the New Zealand Customs Service and business for the purpose of advancing trade, improving community development, and ensuring better enforcement. FrontLine administers such things as the Secure Export Scheme and training courses.​

Harmonized System

The international system published by the World Customs Organization that sets out in a systemized form the goods handled in international trade.
Goods are grouped in Sections, Chapters and sub-Chapters that are governed by rules.

 

» Go to section

Heavy Engineering Research Association (HERA) Levy

The HERA levy is imposed on steel and welding consumables. Customs collects it on behalf of HERA, the support organisation for New Zealand’s metal industries. Find out more on the HERA website. http://www.hera.org.nz/MainMenu.​

Import entry clearance

​Documentation which provides full details of goods to be imported, including their classification under The Working Tariff Document of New Zealand. Import entry clearance is used only for goods over NZ$1,000 in value.

· Sight entry – one of the import entry clearance types when importing business or commercial goods into New Zealand. Sight entry can be chosen for shipments where full details are not available to make an accurate, full or complete entry.

· Simplified import entry – one of the import entry clearance types when importing business or commercial goods into New Zealand. Simplified import entry can be chosen for goods with a Customs value of less than NZ$1,000 and Customs charges of more than $60 payable.

· Standard import entry – one of the import entry clearance types when importing business or commercial goods into New Zealand. Standard import entry can be chosen for goods with a value of NZ$1,000 or more.

INCOTERMS

The recognized abbreviation for the International Chamber of Commerce Terms of Sale. These terms were last amended in the year 2010.

 

Intelligence product

Intelligence products are procedural tools based on knowledge and information. They are used to support and inform decision-making at the strategic, tactical and operational levels. Typical intelligence products include case analyses, assessments, briefings, situation reports, intelligence collection, craft risk assessments, the Intelligence Bulletin, and the OCO Bulletin.

 

» Go to section

Intervention logic

Intervention logic is an evidence-based, systematic and reasoned description of the causal links between outputs and outcomes.​

 

» Go to section

Investigation

An inquiry into an offence - where information suggests an offence has been, or may be, committed. An inquiry results in an investigation file being set up.​

 

» Go to section

Landed Cost

The cost of the imported goods at the port or point of entry into a country, including the cost of freight, insurance and port and dock charges.
All charges occurring after the goods leave the import point are not included.

LTNZ

Land Transport New Zealand ​

 

» Go to section

Manufacture

​The production, assembly and packaging of goods.

 

» Go to section

Manufacturing – CCA

​A place licensed under Section 12 of the Customs and Excise Act, for the purpose described in Section 10(a) of the C & E Act, ie, the manufacture of goods specified in Part A of Schedule 3 of the C & E Act. See CCA.

 

» Go to section

Mens rea

Intent or knowledge of wrongdoing.​

 

» Go to section

Methamphetamine precursor

​A substance containing ephedrine or pseudoephedrine, used in the manufacture of methamphetamine.

MSA

​Maritime Safety Authority

 

» Go to section

Multilateral agreement

​An agreement or arrangement among a number of parties or countries - usually used in a global sense. Examples are WTO with 145 Contracting Parties, and WCO with 161 Member Countries.

 

» Go to section

NMCC

National Maritime Coordination Centre​

 

» Go to section

Non–concessionary entry

​When Customs charges are due on goods coming into the country.

 

» Go to section

NZCS

​New Zealand Customs Service

 

» Go to section

NZIS

​New Zealand Immigration Service

 

» Go to section

Offsite storage – CCA

​A place licensed to store domestically produced excisable goods when the manufacturing premises don’t have enough storage space. Licensed for the purpose described in Section 10(f) of the Customs and Excise Act. See also CCA

 

» Go to section

Operational response

​The deployment of people and resources in response to a possible risk or threat. Operational responses can involve surveillance, search or containment of risk craft, and searches of anyone associated with such craft.

 

» Go to section

Operational risk assessment

​An operational risk assessment is a close review of particular Customs’ policies, practices and procedures. The purpose of the assessment is to identify risk, and recommend ways to manage it.

 

» Go to section

Outcome

​Outcomes - for the community - result from combinations of government interventions and external factors. Refer intervention logic

 

» Go to section

Output

​Outputs are the goods or services that are produced by a government department. Refer intervention logic

 

» Go to section

Outward report

​This is what you need to obtain a certificate of clearance. An outward report contains information such as departure details of a craft and other supporting information.

Permit entry

​A permit for goods where an entry has already been made and duty paid - but which are later found to be short packed, short-shipped or short-landed.

Permits

​Documents provided by Customs as evidence that permission has been granted for a particular action. For example: a permit to allow goods which are under Customs control to be moved to the client’s premises.

Personal concession

​An exemption from Customs charges.

Personal effects

​New or used articles which travellers would reasonably need for their personal use during a journey. Articles, such as personal clothing and footwear, which returning New Zealand residents have acquired in the course of an overseas trip.

 

Phytosanitary Certificate

A certificate issued by a Government agency (usually Agriculture) to satisfy import regulations of foreign countries. The certificate indicates that a shipment has been inspected and found free from harmful pests and plant diseases.

POD

​Proof of Delivery

 

» Go to section

Preference

​Under its external trade agreements, New Zealand extends preferential tariff access to goods which are the ‘produce’ or ‘manufacture’ of specified countries.

 

Preferential tariff

​A lower rate of duty applied to certain goods from certain specified countries and groups of countries.

Pro-forma Invoice

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value and specifications (weight, size, etc.).

 

» Go to section

Procedure Statement

​Documents containing the terms and conditions associated with a CCA Licence.

 

» Go to section

QAP

​Quality assurance process. These are compliance checks undertaken by the workgroup to ensure that their procedures are being followed correctly.

 

» Go to section

Recidivist offending

​When offences are committed on a regular basis.

 

» Go to section

Re–offending

​When an offence has been committed more than once.

 

» Go to section

SARS

​Severe Acute Respiratory Syndrome

» Go to section

SBA

Systems Based Audit​

 

» Go to section

Seized goods

A seized good is where the Crown takes possession of the forfeited goods and decides their fate.​

SPARTECA

South Pacific Regional Trade and Economic Co-operation Agreement. A preferential trade agreement with Pacific Island member countries.​

 

Specific Duty - A duty which is calculated based on the volume, weight or item count, as opposed to value. Under the various trade agreements signed by the U.S., this is not a favored method of calculation and is being phased out.

» Go to section

STAR

​Secure Trade in the APEC Region

 

» Go to section

Supplier code

A unique identity number for the supplier of the goods. For imports in excess of NZ$1,000, a supplier code is required as part of the import entry preparation.​

Supply chain

The linkage of systems and activities that permit the easy movement of trade goods from place of origin to final destination.​

Supporting documents

​Documents which supply critical information, such as invoices, bills of lading, permits etc.

 

» Go to section

Tainted property

​Any property that has been derived from, or acquired as a result of, significant criminal activity – as defined in section 5(1) of the Criminal Proceeds (Recovery) Act 2009.

 

» Go to section

Tariff classification

The Working Tariff Document of New Zealand identifies and describes goods and codes them for duty purposes. The system is based on the World Customs Organisation International Convention on the Harmonized Commodity Description and Coding System (commonly referred to as the Harmonized System).

Temporary import entry

​This is issued for goods that are going to be in New Zealand for a period of 12 months or less before being re-exported.

Transaction value

​The price actually paid, or payable, for goods. It is one of the methods used by Customs to establish the Customs value of goods.

 

» Go to section

Transnational crime

​An offence committed when importing or exporting goods or materials across the border under any regulatory framework. Transnational crime is considered “serious” when the offending significantly affects the legitimate interests of a country. Such crimes can involve:

· goods that might have a military application

· chemical, nuclear or biological weapons, or goods that may be used in the manufacture of such weapons

· imports/exports that breach UN sanctions

· trafficking of class A or B drugs for supply

· objectionable material, including child pornography and material promoting acts of terrorism

· trafficking in wildlife

· revenue evasion.

Transaction Value - The normal basis for Customs value. It is the price paid or payable for the merchandise between two unrelated parties, plus certain additions in five categories.

Ultra vires

​Acting beyond the legal powers or authority.

 

» Go to section

Unauthorised delivery file

​The file kept by inspections teams recording all the information relating to a suspected unauthorised delivery or removal.

UN/EDIFACT

United Nations EDI For Administration, Commerce and Transport.
EDI (Electronic Data Interchange) Standards are developed and supported by the UN for electronic message (data) interchange on an international level.

 

» Go to section

WCO

​World Customs Organisation

 

» Go to section

WEG

​Wildlife Enforcement Group

 

» Go to section

Glossary of Customs and Trade Terms

Ad Valorem - This is a Latin term meaning “according to the value. Literally means According to Value. It is the primary method by which Customs duties are calculated. An Ad Valorem duty is a duty based on the value of the merchandise. This is in contrast to specific duties which are calculated on the weight, volume or item count and compound duties which are a combination of ad valorem and specific duties.