A Glossary of the Common Terms Used in Customs Clearance

In this article, we shall be discussing the common terms that are currently being used in the customs clearance department. With the help of Clearit USA importing, a leading customs brokerage agency in the US, we have consolidated a list of common terms used in customs clearance for the convenience of the customers and businesses alike.

We have sorted the entire list of important terms that are being widely used in international businesses.

CIF (Cost, Insurance and Freight)

In this, the seller is obligated to provide insurance against the buyers’ shipped goods, which are liable to be damaged during transit. This term is valid only for waterways transport through sea and inland.

CIP (Carriage and Insurance Paid To.)

Here, the seller is required to obtain insurance for minimum coverage. Additionally, this term means that the seller needs to clear the goods for easy export and it is valid across all modes of transport.

Commercial Invoice

This is basically the name given to the document that is used to define all the shipment contents. It is inclusive of all the components that are required to clear the shipment through customs in the US. It is an important document, which if prepared thoroughly can help the shipment clear the US customs.

Bill of Lading

It is basically the receipt of goods issued by the carrier. In the receipt, it is mentioned whether the goods were received in good condition without any damages so as to avoid any confusions during shipment and delivery.

Customs Duties

Customs duty is nothing but the amount that is applied in the customs tariff, which permits the goods to smoothly pass through customs territory. The amount is levied as per the Common Customs Law of GCC States.

Customs Entry Packet

This is basically the entry level documents that are required during shipments through the U.S Customs.

Customs Exit/Entry Certificate

This certificate confirms the exit of goods from the country of origin so that the process of entry is smooth to the destination country. This certificate enables the exporter to retrieve the deposits that were paid against the customs duties that were previously paid.

Customs Inspection

This term explains that in order to achieve customs clearance the customs official inspects the state of the goods, mode of transport etc. while entering and exiting the customer zone.

The above mentioned common terms are widely used in the customs clearance. If you are planning to ship goods internationally, then you must be well aware of these terms to ensure hassle-free delivery and shipments of the goods during import and export.