Export Definitions

(a)(1)(A) List:  Pursuant to 19 U.S.C. § 1509(a)(1)(A), Customs published a list of entry information and records that importers are required to maintain.  This list is known as the “(a)(1)(A) list” and may be amended by Customs from time to time.  If an importer fails to produce information or records included on the (a)(1)(A) list in response to a reasonable demand by Customs, Customs may penalize the importer or may liquidate or reliquidate the entries at a higher rate.

Accelerated Payment:  Payment of drawback prior to liquidation of claim; requires a bond (CBPF 301) in an amount to cover all drawback payments on unliquidated claims.

Ad Valorem Basis: Duties or taxes assessed on an ad valorem basis are calculated as a percentage of the value of the imported merchandise.

Antidumping (AD) and Countervailing Duties(CVD):Duties that may be imposed on certain imported merchandise where the U.S. Department of Commerce determines that the imported merchandise is being sold in the United States at “less than fair value” or that a foreign government is subsidizing the production of the imported merchandise, and the U.S. International Trade Commission determines that sales of the imported merchandise are causing or threatening material harm to the relevant U.S. industry. 

Assist:  An assist is any of the following items supplied either directly or indirectly free of charge or at a reduced cost by the purchaser of imported merchandise to the foreign seller or producer:
Materials, components, parts, and similar items for incorporation in the imported merchandise;
Tools, dies, molds, and similar items used in the production of the imported merchandise;
Merchandise that is consumed in the production of the imported merchandise; or
Engineering, development, artwork, design work, and plans and sketches undertaken elsewhere than in the United States, necessary for the production of the imported merchandise.
The apportioned value of an assist is part of the Customs value of imported merchandise.

Automated Broker Interface (ABI):An integral part of ACS that permits qualified participants to electronically transmit import data/entry summaries directly to Bureau of Customs and Border Protection Data Center.  ABI is designed to use standard technology available to Brokers, importers, port authorities, and data processing companies.

Automated Clearinghouse (ACH): ACH debit and credit provide a method for payment of Customs duties by electronic funds transfer thus eliminating the need for paper check payments.  ACH Debit allows the payment to be electronically credited to the United States Treasury Department account with the debit to the payer’s account occurring no sooner than the record business day following the accepted payment date.  ACH credit allows payer’s more control over the origination and timing of payments, does not require the disclosure of bank account information to Customs, and expands the types of payments that may be made.  However, this option has a negative financial impact, as under ACH credit the transfer of funds to Customs occurs on the settlement date (the 10th day) as opposed to the 12th day or after under ACH debit.

Automated Commercial System (ACS): A multifaceted, modular system that automates hundreds of commercial applications and tasks required for import entry and duty collection by Customs.

Automated Export System (AES):  The electronic system administered by the Census Bureau and used  to file EEI and ocean manifest information directly to U.S. Customs and to collect export data.  Also a potential export auditing tool for the U.S. Government.  Electronic methods for accessing AES include AESDirect and AES PC Link.

Automated Manifest System (AMS): A voluntary program providing linkage among trade users and Customs.  The advantages to trade users include multi-agency access to their information; faster and more accurate processing; standardization of accounting, billing, inventory, and traffic control.  Customs uses automated manifest data to carry out its mission of enforcing Customs and other importation laws.

Bond: CBPF 301 is a form of security provided by the importer to Customs to ensure payment of duties and other charges.  A Customs bond may cover a single transaction or all of the importer’s transactions during a specific period (this type of bond is known as a continuous or “blanket” bond).  Bonds are normally obtained from a surety company.

Bonded Warehouse: A bonded warehouse is a building, designated portion of a building, or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.  When the goods enter the warehouse, the warehouse proprietor and importer incur liability under a bond.  This liability is canceled when the goods are exported, destroyed under Customs supervision, or withdrawn for consumption in the United States after payment of duty.

Bureau of Industry and Security (BIS): Agency within the U.S. Department of Commerce that promulgates and administers the EAR and has jurisdiction over most exports from the United States.

BIS Denied Parties List:  This list identifies individuals and organizations that are ineligible in whole or in part to receive any export.  Also, any shipment to a domestic customer listed on this list, if made with knowledge, or reason to know that they will export the item in violation of any regulation or denied order is a violation.  All orders to any customer on this list will be held and reported.  An informational copy of this list is available at: http://www.bis.doc. gov/dpl/thedeniallist.asp.

BIS Entities List: This list identifies foreign end users involved in proliferation activities.  Shipment to individuals or organizations on this list is prohibited without an export license from BIS. All orders to any customer on this list will be held and reported.  The decision to obtain an export license will be made.  An informational copy of this list is available at: http://www.bis.doc.gov/entities/default.htm.

BIS Export Administration Regulations (EAR) (15 C.F.R Subchapter C):  The EAR are designed to control the export of any dual-use goods or technology subject to the jurisdiction of the BIS.  Exporters must not violate the Ten General Prohibitions found at § 736 of the EAR (Exhibit T). Significant penalties, against both the corporation and the employee, may be assessed for noncompliance with the EAR.

BIS/OFAC Embargoes Sanctions:  All orders to Cuba, Iran, Sudan, Syria, and North Korea will be held and reported.  The decision to release the shipment will be based on a review of all circumstances regarding the sale, the customer and the item(s) involved.  All exports to these countries, except in limited circumstances, require an export license from OFAC.  Depending on the item being exported, an additional license may also be required from another government agency.

BIS Unverified List:  This list includes individuals and organizations who were parties to a transaction for which BIS could not ascertain the risk of diversion.  It is not prohibited to export to those on this list.  However, such exports are “red flags” and due diligence is required to ensure diversion does not occur.  All orders to any customer on this list will be held and reported.  The decision to release the shipment will be based on a review of all circumstances regarding the sale, the customer and the item(s) involved.  An informational copy of this list is available at: http://www.bis. doc.gov/Enforcement/Unverified List/ unverified_parties.html.

Carrier’s Certificate:  A carrier’s certificate is a statement by the carrier that the consignee is authorized to make entry of imported merchandise.

Census Bureau:  The agency within the U.S. Department of Commerce that promulgates and administers the FTR and that tracks U.S. trade statistics (import and export) using data reported to Customs.  Census also implemented and administers the AES whereby export data is reported to Customs/Census.

Certificate of Delivery: CBPF 7552 prepared in a drawback context by an importer showing delivery of specific merchandise to another company within the United States.

Certificate of Origin: CBPF 434 is a document that establishes the origin of imported merchandise.  A NAFTA certificate of origin may be required in order to obtain preferential tariff treatment, for example, under the NAFTA, and normally must be executed by a party having personal knowledge of the origin of the merchandise.

Commerce Control List (CCL):  The list of goods, software, and technology subject to BIS export control.  Comprised of ECCNs.

Commodity Classification Automated Tracking System (CCATS):  The automated system whereby BIS tracks its Commodity Classification Determinations.  BIS assigns a CCATS number to each such determination.  CCATS is a non-public system.

Commodity Classification Determination:  An “advisory” determination by BIS on an item’s ECCN classification, obtained via a Commodity Classification Request.  BIS will respond to such requests with its opinion on the correct classification of the item, and assign a CCAT number to the determination.  However, Commodity Classification Determinations may not be binding, and are subject to being overruled by a DDTC Commodity Jurisdiction Determination.

Commodity Jurisdiction (CJ) Requests and Determinations:  A procedure whereby DDTC makes a binding determination as to its regulatory jurisdiction over an item and, if so, the item’s USML classification.  CJs may be requested or DDTC may initiate them.

Cost, Insurance, Freight (CIF):An international trading arrangement (Incoterm) whereby the seller has an obligation to contract for the carriage of goods to their destination and must pay the costs and freight necessary to fulfill this obligation, but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the carrier, is transferred from the seller to the buyer when the goods are placed on the carrier.  The seller is required to clear the goods for export.  The seller must also procure insurance against the buyer's risk of loss or damage to the goods during the carriage and pay the insurance premium, although the seller is only required to obtain minimum coverage insurance.  The buyer must obtain any import license or other official authorization, carry out all Customs formalities for the importation of the goods, and pay all duties, taxes and other official charges as well as the costs of carrying out Customs formalities payable upon importation of the goods.  See Incoterms 2000.

Country of Origin: The country of origin of imported merchandise is normally the country where the merchandise is manufactured or produced.  Further work or material added in a third country prior to importation may change the country of origin, depending on the circumstances and the applicable rules.  U.S. law requires every imported article or its container to be clearly marked with the name of the country of origin, subject to limited exceptions.  Also, the country of origin of imported merchandise may determine whether the merchandise is eligible for preferential tariff treatment, whether antidumping or countervailing duties will be assessed, or whether quota is available permitting the merchandise to be entered.  Origin determination for different purposes (NAFTA, origin marking, etc.) will use different rules for each different determination.

Customs Modernization Act: The Customs Modernization Act (Title 6 of The North America Free Trade Agreement Implementation Act) was enacted on December 8, 1993.  The Act authorizes Customs to complete the automation of the entry process, permitting importers and other parties to transact almost all business with Customs electronically.  The Act also imposes new obligations on importers to use reasonable care in classifying and appraising the value of imported merchandise, and to maintain certain documents and records pertaining to import transactions.

Customs Value: The Customs value determined under authority of 19 U.S.C. § 1401a and is used to determine the duty to be paid when the duty is states as a percentage of value and used as a starting point for trade statistic purposes.  For the material imported from a foreign country, the Customs value is most often the price actually paid or payable for the foreign sourced material in the transaction that caused the material to be exported to the United States, subject to certain possible subtractions or additions.  Customs value is determined under authority of 19 U.S.C. § 1401a and is used to determine the duty to be paid when the duty is stated as a percentage of value and used as a starting point for trade statistic purposes.

Deemed Export:  The transfer of technology to a non-U.S. person in the United States e.g., non-U.S. employees and visitors.  If technology or “know-how” requires an export license to a particular country, then dissemination of that technology to a foreign national of that country in the United States may require an export license.  Possession of immigration documentation, other than a permanent resident document (“green card,”) is not sufficient. The [To be determined] will determine if an export license is required and will obtain an export license from BIS if necessary.

De Minimis Content:  The measure of minimum content.  For export controls de minimis content refers to the percentage of a foreign-manufactured good that consists of U.S.-origin parts/components.  For general export control purposes the de minimis amount generally is 25%, and for countries subject to U.S. embargoes/sanctions, the amount generally is 10%.  Under Free Trade Agreements (FTAs), de minimis is used to refer to the percentage content of a good that must have originated within the FTA region (i.e., regional value content or RVC) for the good to meet the applicable rule of origin to qualify as an originating good.

Directorate of Defense Trade Controls (DDTC):  The agency within the U.S. Department of State that promulgates and administers the ITAR and has jurisdiction over temporary imports and all exports of defense articles, services, and technology.

Domestic Merchandise: Merchandise which has been produced in the United States and not exported there from, or previously imported into the Customs territory of the United States and properly released from Customs custody. 

Drawback: Drawback is a refund of up to ninety-nine percent (99%) of the duties, taxes, and other fees paid on imported merchandise when the merchandise (or designated substituted merchandise) is later exported or, under certain conditions, destroyed.  Drawback may be obtained where the imported merchandise is used in the manufacture of exported merchandise, or where the imported merchandise is exported in an unused condition.  A variety of specialized provisions and regulatory requirements govern the United States drawback program, and strict compliance with all regulations is normally a prerequisite to obtaining a refund.

Dutiable Value: For the material imported from a foreign country, the price actually paid or payable for the foreign sourced material in the transaction that caused the material to be admitted into the zone, less, if included, international shipment and insurance costs and United States inland freight costs.  The dutiable value is utilized to calculate duty payments.  Section 146.64(b)(2), C.R.  The dutiable value of the merchandise manufactured (i.e., the finished product) in the foreign-trade zone is the sum of the dutiable values of the foreign non-duty paid merchandise that is in the finished product.

Electronic Data Interchange (EDI):  The transmission of standardized business data between computers or telecommunications systems.  In the trade community, this involves data exchange between manufacturers, distributors, retailers, shippers, consignees, carriers, banks, insurers, Brokers and government agencies.

Electronic Export Information (EEI):  The data transmitted via AES to Customs and Census for exports.  Replaces the hard-copy SED.

Entry: In a traditional import transaction, the documentation required by Section 142.3 of the Customs Regulations to be filed with the appropriate Customs officer to secure the release of imported merchandise from Customs custody, or the act of filing that documentation.

Entry/Immediate Delivery Form: CBPF 3461 is an entry/immediate delivery form that allows imported merchandise to be released by Customs prior to the payment of duties and fees.  Importers who use this procedure are required to submit an entry summary (CBPF 7501) to Customs within ten (10) days of the release.

Entry Summary: CBPF 7501 is an entry summary statement document that includes all of the relevant data needed to assess duties on imported merchandise.  An entry summary also supplies Customs with product and statistical information required to be collected as part of the entry process.

Ex-Factory/Ex-Works (EXW): An international trading arrangement whereby the seller fulfills its obligation to deliver when it has made the goods available at its premises (i.e., works, factory, warehouse, etc.) to the buyer.  The seller is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export.  The buyer bears all costs and risks of loss or damage to the goods involved in taking the goods from the seller's premises to the desired destination.  The buyer must obtain any export and import license or other official authorization, carry out all Customs formalities for the exportation and importation of the goods, and pay all duties, taxes and other official charges as well as the costs of caring out Customs formalities payable upon exportation and importation of the goods.  The term used and defined by Incoterms 2000 is “Ex-Works.”  Ex-factory is not an official Incoterm.

Export Control Classification Number (ECCN): The categories set forth in the CCL, identifying the specific goods, software, and technology that are subject to BIS-administered export controls.  Each ECCN consists of five characters that identify the category, product group, type of control, and country group level of control, and may be further subdivided for specifically identified types of commodities.  For commodities that are subject to the EAR, but not specifically described in a particular ECCN, the classification is “EAR99.”

Export:  Physical transfer of goods, technology or software out of the United States or the transfer of technology to a non-U.S. person in the United States (“deemed export”).

Exportation: Defined by U.S. courts as “the removal of merchandise from the United States with the intent of uniting the merchandise with the mass of goods of another country.” 

Exporter: The person in the United States who has the authority of a principal party in interest to determine and control the sending of items out of the United States.  Note that the Foreign Trade Regulations have a different definition for the term “exporter.”  Under the FTR, the “exporter” is the USPPI.

Foreign Principal Party in Interest (FPPI):  The foreign person in an export transaction that receives the primary benefit, monetary or otherwise, of the transaction.  Generally, the principals in a transaction are the seller and the buyer.  In most cases, the forwarding or other agent is not a principal party in interest.

Foreign Trade Regulations (FTR):  The FTR are promulgated by the U.S. Census Bureau and generally require the filing of export information for most exports of goods valued over $2,500 as well as any exports requiring a license, and also require all such reporting to be conducted via AES.

Free on Board (FOB):  An international trading arrangement whereby the seller fulfills its obligation to deliver when the goods have been placed on a carrier at the named port of shipment.  The buyer must bear all costs and risks of loss or damage to the goods from the time the goods are placed on the carrier.  The FOB term requires the seller to clear the goods for export.  However, the buyer must contract at its own expense for the carriage of the goods from the named port of shipment, pay all costs relating to the goods from the time they are placed on the carrier and procure its own insurance.  The buyer must obtain any import license or other official authorization, carry out all Customs formalities for the importation of the goods, and pay all duties, taxes and other official charges as well as the costs of carrying out Customs formalities payable upon importation of the goods.  See Incoterms 2000.

Free Trade Agreement (FTA):  An agreement whereby countries bilaterally or multilaterally agree on specific provisions relating to how various issues between the parties to the agreement will be handled, often including trade, investment, labor, environmental, and other issues.  Most common to FTAs are provisions to reduce tariffs and other trade barriers between the parties.

Fungible Merchandise: Merchandise which is commercially identical and interchangeable.

General Order: General order refers to the status of imported merchandise that is taken into Customs custody and placed in a warehouse at the risk and expense of the person having the right to make entry.  Merchandise may become “general order” merchandise, for example, when entry is not made within the time provided by law or estimated duties are not deposited.  Such merchandise may only be withdrawn after the person having the right to make entry pays the storage charges.

Generalized System of Preferences (GSP)/Caribbean Basin Initiative (CBI)/Israel Free Trade Area Act:  The GSP, CBI, and Israel Free Trade Area Act are preferential trade programs which allow duty‑free or reduced duty treatment for qualifying merchandise from designated countries.

Harbor Maintenance Fee (HMF): The Water Resources Development Act of 1986 established the HMF, which is a .125 percent (.125%) ad valorem port use fee applicable only to the value of commercial cargo unloaded from a commercial vessel at any United States deep water port.  The fee does not apply to export shipments, shipments arriving by air or shipments from the United States mainland to Alaska, Hawaii, or any possession of the United States (i.e., Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Northern Mariana Islands, and the Pacific Trust Territories) and from those areas to the United States.  The United States Supreme Court has determined that the HMF is unconstitutional as applied in certain transactions.

Harmonized Tariff Schedule of the United States (HTSUS): Published by the United States International Trade Commission, the HTSUS is utilized for the classification of imported merchandise for rates of duty and statistical purposes.

Importation: An importation occurs when merchandise physically arrives within the Customs territory of the United States, or within the limits of a United States port with the intent to unload there.  The term “importation” is not synonymous with the term “entry”.

Importer of Record: The importer of record is the party in whose name entry is made.  The importer of record must be either the owner or purchaser of the imported goods, or a licensed Customs Broker authorized by the owner or purchaser to enter the goods.

In-Bond Transfers: In-bond transfers are shipments of goods that are transported among ports prior to the goods’ release by Customs.

Internal Advice: Written internal advice may be obtained from Customs Headquarters at the request of Customs field officers regarding the interpretation and application of the Customs laws and regulations in the context of a specific transaction.

International Traffic in Arms Regulations (ITAR): Regulations administered by DDTC regulating the import and export of defense articles and technology as designated on the USML (22 C.F.R. Subchapter M).

ITAR Registration:  All manufacturers, exporters, and brokers of defense articles, defense services, or related technical data, as defined on the United States Munitions List, are required to register with DDTC.  Registration is primarily a means to provide the United States Government with necessary information on who is involved in certain manufacturing and exporting activities. Registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export.

Liquidation:  Liquidation is the final computation of the duties or drawback accruing on an entry.  All entries covering imported merchandise, except for temporary importation bond entries and entries for transportation in-bond, for immediate exportation, or for transportation and exportation, must be “liquidated.”  Unless extended or suspended, a liquidation becomes final and conclusive as to all parties, including Customs, after ninety (90) days following the date of liquidation.  This means that all issues, such as the classification, rate of duty, valuation, and admissibility of the goods are normally resolved at that point.

Live Entry: A “live entry” occurs when all documents necessary to secure the release of the merchandise (entry) and the entry summary are filed simultaneously on a CBPF 7501.  Where live entry is used, all data must be accepted by Customs and all duties and fees paid prior to the release of the imported merchandise.

Manufacturing License Agreement (MLA):  An agreement whereby a U.S. person grants a foreign person an authorization/license to manufacture defense articles abroad involving or contemplating the export or foreign person’s use of technical data or defense articles, or the performance of a defense service.  MLA’s are subject to DDTC approval and must follow a specific format and be accompanied by certain documentation.

Merchandise Processing Fee (MPF): The Customs Merchandise Processing Fee is an ad valorem user fee applicable to the value of goods imported into the United States, and is collected on a Customs entry CBPF 7501.  The MPF is currently .21 percent.  The fee has a minimum of $25 and is capped at $485 per Customs entry.

North American Free Trade Agreement (NAFTA):  The North American Free Trade Agreement (NAFTA) is a comprehensive, multilateral trade agreement between Canada, Mexico and the United States.  The objectives of the NAFTA are to eliminate tariff and non-tariff barriers to trade, promote conditions of fair competition, increase investment opportunities, provide adequate protection for intellectual property rights, establish effective procedures for the implementation and application of the NAFTA and for the resolution of disputes, and to further trilateral, regional and multilateral cooperation.

OFAC Specially Designated Nationals/ Blocked Persons:  This is a list of targeted foreign persons, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. All financial dealings (including exports) to parties on this list are prohibited.  All orders to any customer on this list will be held and reported. An informational copy of this list is available at: http://www.ustreas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf

Quota: A quota is a restriction on the number of units of certain merchandise that may be entered during a specified period.  Quota status of merchandise is considered at the time of entry.  Orderly Marketing Agreements and Voluntary Restraint Agreements are not considered Absolute Quotas.

Reasonable Care: Under the Customs Modernization Act, importers are required to use “reasonable care” in classifying and appraising imported merchandise, and in conducting other business with Customs.  In essence, under the Customs Modernization Act the concept of “reasonable care” means that importers are expected to be informed about the Customs laws and regulations, and to make every reasonable effort to comply with Customs’ instructions.

“Red Flags:”  “Red Flags” are defined in §732 of the EAR, and include things such as cash payments by the customer, refusal to provide or describe the end use/end users, shipping instructions by the customer contrary to the Company’s orders given to the carrier, etc.  There is no exhaustive list of checks for red flags.  The concept is to be sensitive to anything that creates a suspicion that U.S. export laws may be violated.  All surrounding circumstances must be considered.  Any customer on the BIS “Unverified List” creates an automatic red flag.  All orders to any customer where a red flag has been raised will be held and reported.  The decision to release the shipment will be based on a review of all circumstances regarding the sale, the customer and the item(s) involved. Generally, any time a red flag appears, additional due diligence is required to resolve the issue and ensure compliance. “Red Flags:”  “Red Flags” are defined in §732 of the EAR, and include things such as cash payments by the customer, refusal to provide or describe the end use/end users, shipping instructions by the customer contrary to the Company’s orders given to the carrier, etc.  There is no exhaustive list of checks for red flags.  The concept is to be sensitive to anything that creates a suspicion that U.S. export laws may be violated.  All surrounding circumstances must be considered.  Any customer on the BIS “Unverified List” creates an automatic red flag.  All orders to any customer where a red flag has been raised will be held and reported.  The decision to release the shipment will be based on a review of all circumstances regarding the sale, the customer and the item(s) involved. Generally, any time a red flag appears, additional due diligence is required to resolve the issue and ensure compliance.

Reexport:  Transfer from one foreign country to another foreign country of merchandise previously exported from the United States, or the transfer of technology previously exported from the United States from one non-U.S. person to another non-U.S. person.

Reconciliation:The reconciliation procedure permits an importer to indicate on an entry summary that certain information regarding the entry will be submitted at a later date, that is, when the information becomes available.  For example, an importer may not know the apportioned value of an assist, or the rate at which antidumping duties will be assessed, until some weeks or months after the entry summary is filed.  In such cases, the entry or entries may be liquidated and all other issues finalized, and a reconciliation entry will be created which will remain unliquidated until the final information is submitted in a separate reconciliation statement.

Regional Value Content (RVC):  A measure of the content of a good that originated within the region of an FTA, a certain percentage of which often is required under the FTA’s rules of origin for a good to qualify as originating for purposes of preferential treatment.

Related Parties: In the analysis of transaction value; related party transactions are subject to increased scrutiny by Customs, and Customs must normally find that the relationship does not influence the price charged for imported goods in order for transaction value to be accepted by Customs as the basis for appraisement of imported merchandise.  Control is defined as 5% for imports and 10% for exports.

Remote Filing: Remote filing permits importers to file entry data electronically from anywhere in the United States, regardless of where the imported goods are actually entered.

Royalties:Royalties are payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright, literary, artistic, or scientific work, patent, trademark, design, model, plan, formula, or process, excluding those payments under technical assistance or similar agreements that are related to specific services (for example, personnel training).

Ruling Letter: A ruling letter is an administrative ruling obtained from Customs that sets forth the interpretation of law applicable to a specific transaction.  A ruling letter is binding only on the party requesting the ruling; however, a ruling letter may provide guidance to other parties as to how Customs can be expected to treat similar transactions.

Schedule B Number: Published by the Census Bureau, Schedule B Numbers are the basis of the U.S. export classification system for statistical purposes.  However, for most commodities, exporters may report HTSUS numbers instead of Schedule B.  Exceptions to that rule include certain meats, mineral products, metals, aircraft, and machinery.

Shipper’s Export Declaration (SED):  The hard-copy form previously used to report export data to Customs and Census prior to implementation of AES.  Exports requiring reporting now must be reported via AES.

Significant Military Equipment (SME):  Articles for which special export controls are warranted because of their capacity for substantial military utility or capability.

State Department Lists: DDTC maintains a list of debarred parties that are prohibited from participating directly or indirectly in the export of defense articles, data or services. An informational copy of this list is available at: http://www.pmdtc.org/debar059.htm.
In addition, The U.S. State Department’s Bureau of Non-Proliferation maintains a list of Known Proliferators of nuclear, chemical/biological and missile technology activities.  There is no consolidated official list available, and exporters must monitor the Federal Register for changes and updates to this list.  This list must be read in conjunction with § 744 of the EAR which prohibits any shipments to end users involved in proliferation activities without a license.  It should be noted that licenses for shipments furthering proliferation activities are almost never granted.  All orders to any customer on these lists list will be held and reported.

Technical Assistance Agreement (TAA):  An agreement between U.S. and foreign persons for the performance of a defense service or the disclosure of technical data, including assembly of defense articles when production rights or manufacturing know-how is not included (see “MLA” above).  TAAs are subject to DDTC approval and must follow a specific format and be accompanied by certain documentation.

Temporary Importations Under Bond (T.I.B.): A wide range of merchandise may be imported free of customs duties under a temporary importation bond (T.I.B.) pursuant to Subheading 9813, HTSUS.  The terms of the T.I.B. prohibit the merchandise form being sold and require the merchandise to be exported or destroyed within one (1) year after the date of importation.  19 C.F.R. § 113.62(h)(1),(3); 19 C.F.R. § 10.31 (a)(3)(iii).  The one (1) year time limit may be extended for two (2) additional periods of up to one (1) year each upon proper application to the Port Director.  However, the T.I.B. merchandise may not remain within Customs territory for more than three (3) years.  19 C.F.R. § 10.37.  Destruction must occur under Customs’ supervision, except in the case of articles imported solely for testing or experimentation.  Where these articles are destroyed during the experiments or tests within the bond period, proof of destruction shall be submitted to the Port Director.  Generally, the amount of the bond to be posted is double the estimated duties.  Merchandise entered under T.I.B. must be exported or destroyed before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond.

Transaction Value: Transaction value is the primary method of appraising imported merchandise.  The transaction value is the price actually paid or payable for goods when sold for exportation to the United States, plus certain packing costs, selling commissions, assists, royalties and license fees, and any proceeds of subsequent resale.

Transfer Price: The term “transfer price” refers to prices charged on sales made between related parties.

Transshipment: Transshipment occurs when goods are exported from the country of origin and shipped through a second country before reaching the country of importation.  Frequently, transshipment describes situations where merchandise passes through a second country to which the United States imposes less stringent quota and visa requirements, to circumvent United States regulations.

United Nations Rules for Electronic Data Interchange for Administration Commerce, and Transport (UN/EDIFACT):
An electronic data interchange (EDI) standard with U.N. approval as an international syntax.  UN/EDIFACT is comprised of a set of internationally agreed standards, directories, and guidelines for electronic interchange of structured data.  Created as a compromise between the North American EDI standard and the European standard, UN/EDIFACT is approved by the International Organization for Standardization (ISO) and includes standards 9735 and 7372. 

United States Munitions List (USML): The USML identifies those items or categories of items considered to be defense articles and defense services subject to export control.  The USML is similar in coverage to the International Munitions List (IML), but is more restrictive in two ways.  First, the USML currently contains some dual-use items that are controlled for national security and foreign policy reasons (such as space-related or encryption-related equipment.)  Second, the USML contains some nuclear-related items.  Under Presidential directive, most dual-use items are to be transferred from the USML to the Commerce Department’s dual-use list.  The Department of State, with the concurrence of the Department of Defense, designates which articles will be controlled under the USML.  Items on the Munitions List face a stricter control regime and lack the safeguards to protect commercial competitiveness that apply to dual-use items.

United States Principal Party in Interest (USPPI): The U.S. person in an export transaction that receive the primary benefit, monetary or otherwise, of the transaction.  Generally, the principals are the seller and the buyer.  In most cases, the forwarding or other agent is not a principal party in interest.