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94 Cards in this Set

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Taxes on imported goods priced to sell at less than in the country of origin


Materials and parts that go into finished goods

Container Security Initiative (CSI)

A U.S. Customs control mechanism intended to avert terrorists’ use of maritime containers to deliver a weapon into the United States

Currency Revaluation

The government initiated, official changes in the value of a country’s currency relative to other currencies


The buying and selling of products over electronic systems such as the internet and other computer networks


Relaters operating their own websites

First Price

The manufacturer’s selling price in the factory showroom

Global Sourcing

The process of purchasing imports from markets throughout the world

Import Traders

Business people who import goods for resale


Limiting international trade and political relations

Landed Cost

The cost of goods at the final port-of-entry; includes shipping and entry costs, and duty changes to the foreign port of entry

Lead Time

The amount of time between ordering goods and receiving shipments


(a) concept or place where the producers of goods or services can offer their wares to buyers willing to pay the negotiated prices for those goods or services. International trade markets now include electronic venues such as eBay, Amazon, and Yahoo, as well as a number of social networks like Facebook and Twitter; (b) a business or consumer demand for a specific product

Offshore Production

Goods produced in another country


Government motivated trade barriers, such as tariffs and non-tariff barriers used to protect home markets and domestic manufacturers from foreign competition

Quick Response

The computerized replenishment system of popular items while still in demand

Specification Buying

A domestic retailer designs the product and has it produced overseas according to the buyer’s directions

SWOT Analysis

An assessment of an organization’s strengths, weaknesses, opportunities, and threats

Absolute Quotas

Specific quantities of products that may enter the country during a given time period

Ad Valorem Rates

A duty percentage added to imported goods based on their value

Automated Broker Interface (ABI)

An integrated part of the Automated Commercial System (ACS), used by U.S. Customs to track, control, and process commercial goods imported into the United States

Compound Rate

A combination of ad valorem and specific duty rates

Cost, Insurance, and Freight (CIF) Values

Term of sale indicating the cost of goods, insurance, and freight

Customs Automated Commercial System (ACS)

Electronically receives and processes entry documentation and provides cargo disposition information

Customs Broker

An independent business licensed by the Treasury Department and engaged in clearing goods through U.S. Customs

Customs Duties

Government-imposed taxes on certain goods or services brought into a country from a foreign source; also known as duties and tariffs

Customs Modernization Act (MOD Act)

Declares that it is the importer’s responsibility to use reasonable care in classifying imported goods and estimated values to enable Customs to accurately assess duties and ascertain that other legal requirements have been met

Dutiable Value

The value of the shipment subject to import duties


The presentation of all documents necessary t clear the U.S. Customs, allowing foreign goods to enter the U.S.

Harmonized Tariff Schedule of The United States (HTSUS)

A classification system to determine the amount of duties, or tariffs, U.S. Customs will assess on certain imports into the U.S., as prescribed by law. The importer must determine the classification number of the merchandise being imported, as a prerequisite to the entry process, but Customs makes the final determination of the correct rate of duty

Import Quota

A quantity of volume limit on certain imported merchandise from a specific country for a stated period of time

Non-Tariff Barriers To Trade (NTBs)

All international trade barriers that do not involve the assessment of duties, or taxes, in order to manage trade. Examples include quotas, standards, and special certifications, such as Underwriters laboratory certifications and French language labeling requirements for exports to Canada’s Quebec Province

Normal Trade Relations (NTR)

Relationships with the countries with whom the U.S. trades and regularly maintains the lowest duty rates; formally referred to as “most favored nations”

Specific Rate

Duties set at measurable rate such as per piece, liter, or kilo

Tariff Preference Levels (TPLs)

Under NAFTA, administrated like tariff-rate quotas

Tariff Rate Quotas

Provide for the entry of a specified quantity of quota products during a given time period. Most “quotas” have been eliminated

Textile Visa

An endorsement in the form of a stamp on an invoice or export control license, which is executed by a foreign government. It is used to control the exportation of textiles and textile products to the U.S. and to prohibit the unauthorized entry of the merchandise into this country

Transaction Value

The price actually paid or payable by the buyer to the seller for goods sold for export to the U.S.

U.S. Customs and Border Protection (CBP)

The government agency responsible for legal movement of goods into the U.S.; a name given the U.S. Customs Service as a result of the merger of Customs with other government agencies

World Customs Organization (WCO)

A global organization of some 171 Customs administrations that in total processes 98% of the world’s trade

Automated Commercial Environment Act (ACE)

An online access point connecting the Customs and Border Protection agency and the international trade community, increasing the effectiveness of trade enforcement, by preventing cargo from becoming tools of terrorism

Commercial Invoice

A bill for goods from the seller to the buyer showing the value and description of the merchandise plus payment terms

Compliance Assessment

The systematic evaluation of importers’ systems supporting their Customs and Border Patrol-related activities

Consumption Entry

Usually perishable goods; the importer indicates the tariff classification and pays estimated duties and processing fees

Customs Trade Partnership Against Terrorism (C-TPAT)

Is a joint effort between the U.S. government and businesses involved in importing goods into the U.S.. Membership is voluntary, and open to most businesses who import goods into the U.S. including freight carriers, brokers, manufacturers, importers

Department of Homeland Security (DHS)

The primary U.S. government agency responsible for preventing terrorism and enhancing security; managing our borders; administering immigration laws; securing cyberspace; and ensuring disaster resilience

Formal Entries

Imports of commercial or non-commercial (personal) shipments that exceed $2500 in value, usually require a surety bond to guarantee payment of government-imposed duties

Hamilton Tariff Act

In 1789, the second statue of the U.S. government authorized the collection of duties on imported goods

Immigration and Customs Enforcement (ICE)

The principal investigative arm of the U.S. Department of Homeland Security, ICE. Created in 2003 through a merger of the investigative and interior enforcement elements of the U.S. Customs Service and the immigration and Naturalization Service

Importer Self-Assessment (ISA)

A voluntary, self-governance program that encourage compliance with Customs and Border Protection import guidelines, in exchange for less government oversight

In-Bond Entries

Arrangements made by exporter permitting duties to be paid upon-arrival of the goods at the final port

Informal Entries

A process covering personal, commercial, and mail shipments that enter the U.S. to be consumed; in most cases the values is under $2500


A nation’s bridges, highways, communications, and transportation systems

Intellectual Property Rights (IPRs)

The rights to creative works that may be protected by patents, trademarks, or copyrights

International Monetary Fund (IMF)

An organization of 185 countries, working to foster global monetary cooperation, secure financial stability, and facilitate trade by providing temporary financial aid to countries with balance-of-payment problems


The final step of the customs entry process, liquidation signifies the settlement of accounts between importer and the Government, and the importer’s taking possession of the goods

Manufacturer’s Suggested Retail Price (MSRP)

The amount of money for which the company that produces a product recommends that it be sold in stores


An objection; within 90 days after the date of liquidation of an import shipment, an importer or consignee can protest the Customs valuation and duty assessment and receive an administrative review. Any person whose protest has been denied may contest the ruling by filing a civil action in the U.S. Court of international trade

Shipment Manifest

Official papers filed and sworn to as being accurate accompanying shipments


Aims to educate consumers about counterfeit products and the web sites that sell them. It also directs consumers to industry-approved retailers

Surety Bond

Required for all formal entries as guarantee payment duties posted with Customs

Textile Production Verification Teams (TPVTs)

Enforcers of U.S. customs laws with respect to imports of textile or apparel articles, particularly as they relate to enforcement of the north American Free Trade Agreement (NAFTA), the Dominican Republic-Central America-United States free Trade Agreement (CAFTA-DR), and other free trade agreements and trade preference programs to prevent trans-shipments and origin fraud

United States Court of International Trade

Established under Article III of the Constitution, this Court has nationwide jurisdiction over civil actions arising out of the customs and international trade laws of the U.S.

U.S. Custom and Border Protection Declaration Form

A full and accurate description of imported merchandise that must be attached to outside each shipment

Advised Letter of Credit

Issued by a bank in the seller’s country, which advises the letter of credit to the beneficiary. The advising bank may eventually assume the role of confirming bank, but, until they do, it is an unconfirmed letter of credit

Advising or Negotiating Bank

A bank that advises or negotiates a letter of credit and receives payment on behalf of a beneficiary

Air Waybill

A non-negotiable type of bill of lading that serves as receipt of goods shipped by an airline; a contract of carriage between the shipper and the carrier


Any change that is made to a letter of credit


The sum of credit allowed as stated in a specific currency


The term use for buyer in a letter of credit

Banker’s Acceptance

A time draft accepted by a bank, which then may be sold at a discount for immediate payment


The term for exporter in a letter of credit

Bill of Lading (B/L)

A document issued by a carrier (ship, rail, truck) to a shipper (exporter) verifying specific goods have been received for delivery to a named place, to a certain consignee


Payment prior to shipment of purchased goods

Confirmation Fee

Paid by an importer or exporter to obtain a bank’s confirmed letter of credit

Confirmed Irrevocable Letter of Credit

An irrevocable letter of credit whose payment is guaranteed by a bank. It provides the highest level of protection to the seller because the L/C cannot be canceled or changed unilaterally b y the buyer or any other party to the credit without the consent of all parties involved


The transfer possession of a seller’s goods to a buyer without any formal commitment to pay for the goods unless they are sold. A very risky payment method, especially for the exporter in international trade

Date Draft

Specifies the date a payment for goods or services is due

Documentary Drafts

In international trading, a bill of exchange or commercial draft that is presented for payment with the required documents such as a clean bill of lading, certificate of insurance, certificate of origin

Early-Pay Program

Full payment to a manufacturer before shipment and sometimes before production, usually to earn a discounted price

Electronic Transfer of Funds (ETF)

Payments are transferred by computer, from one bank to another, such as wire transfer, to pay for the international exchange of goods or services

Expiration Date

The final date for the beneficiary to present documents against a letter of credit in international trade finance transactions

Extended Terms

Allowing payments for goods and services to be made later than the traditional 30 days as in domestic sales

Freight Forwarder

An independent, third-party international logistics specialist offering exporters transportation, documentation, and in some cases, financial services, for a fee. These are usually licensed by the Federal Maritime Commission if they are involved in ocean transportation, and by the International Air Transport Association (IATA) if they act as an air car cargo agent

Irrevocable Letter of Credit

A legally binding document that can’t be changed by any parties to an L/C, unless all parties agree

Issuing Bank

The bank that issues the letter of credit and assumes the obligation to make the payment

Letter of Credit (LC)

A banks commitment to pay, on behalf of the buyer (importer), a specific sum of money, in a stated currency, within a fixed time period, to the seller (manufacturer/exporter), provided that the seller meets the terms as stated in the L/C and presents all required documents. L/Cs are common in international trade as they reduce the risk levels for both the seller and the buyer, since established banks are negotiation the documents facilitating payments

Ocean Bill of Lading

Required for transport of goods by sea; it serves as both the carrier’s receipt to the shipper and as a collection document. The document specifies the details of the goods being transported, such as quantity, type and destination

Open Account

Goods are shipped first and paid for within a predetermined specified time, typically 30 days

Revocable Letter of Credit

A letter of credit that can be withdrawn or modified at any time without notice to the seller; not a legal contract

Sight Draft

Payment method for international trade. It is on demand or on presentation of the negation documents to the paying bank or the importer. In practice, the bank may pay within three (3), working days (not instantly) after the receipt and review of the negotiation documents and if they are in order, that is, the documents comply exactly with the letter of credit (L/C) stipulations. Enables the exporter to retain title to a shipment until it reaches its destination and payment is made


The requirements in a purchase agreement that must be met for the collection of the credit

Time Draft

When the exporter extends credit to the buyer, the draft states when the payment is due (e.g 30 days after acceptance)

Wire Trade

Payments are transferred by computer, from one bank to another, such as wire transfer, to pay for the international exchange of goods and services