Customs Glossary
GENERAL RULES FOR THE INTERPRETATION OF THE COMBINED NOMENCLATURE
There are 6 of them and they are applicable to all Member States and published on EUR-LEX
You will find in this customs lexicon, the main definitions to understand the basics of customs language.
A
ACCISES
Indirect consumption duties on certain categories of products: mineral oils, alcohol, alcoholic beverages, manufactured tobacco.
Concerning more specifically alcoholic beverages, the excise duties in France are :
- Consumption duty on wines, ciders, perries and meads
- Consumption duty on spirits and intermediate products
- Specific duty on beer.
AUTHORIZED ECONOMIC OPERATOR
AEO is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs may include manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors and freight forwarders.
ANTIDUMPING DUTY
A customs duty imposed on a particular product imported from one or more specified third countries in addition to the normal or preferential duty.
Such a duty may be introduced when the export price is lower than the normal value and provided that such imports cause or threaten to cause material injury to competing Community production.
B
BINDING TARIFF INFORMATION (BTI)
Written information issued by the Customs authorities of the Member States concerning the classification of goods in the Combined Nomenclature or a derived nomenclature such as TARIC.
Information concerning the tariff classification of a good, given by the customs administration to any person who requests it in writing.
This document is binding on the Customs authorities of all Member States of the European Community in respect of the classification of goods corresponding in all respects to the goods described therein and for which Customs formalities are completed after the date of issue.
The BTI is valid for three years from its date of issue.
BINDING ORIGIN INFORMATION
Written information issued by the customs authorities of the Member States, concerning the preferential or non-preferential origin of specific goods to be imported or exported.
C
COMMUNITY ADDITIONAL CODES
Additional Community Codes allow to codify an EU regulation. They refer to the application of a European regulation or directive.
CLASSIFICATION NOTICE
Published by the WCO: they will address products that cannot be explicitly classified with the first tools.
CUSTOMS CONTROL
Measures applied by the Customs to ensure compliance with Customs law
CUSTOMS CODE
The Union Customs Code is the basic text of the European Union customs law.
The provisions relating to formalities, customs clearance procedures, the tariff, origin, value, controls, etc. apply directly in all Member States, identically, unless otherwise specified.
These provisions are based, as for the tariff in a general way, on the provisions of the WCO (value, origin in particular).
CERTIFICATE OF ORIGIN
Document attesting to the origin of a good and established by an authorized authority in the country of origin.
Document with an indicative value that does not bind the importing customs service in any way.
CLEARANCE
Steps to be taken during an import or export operation to obtain the free transfer of ownership of the goods. Exports and imports are subject to the payment of duties and taxes depending on their nature and the exporting or importing country.
COMBINED NOMENCLATURE
Systematic list of commodity descriptions, based on the Harmonized System, allowing the application of the Common Customs Tariff, the compilation of external trade statistics and the application of other Community policies.
A system for the description and coding of goods at the European Union level. The CN is composed of 8 characters:
- The first 6 are those of the Harmonized System (HS)
- the last 2 correspond to subdivisions of the HS to meet the tariff or statistical needs of the EU.
The CN is subject to an annual revision on January 1st of each year. In addition, it is the reference basis for determining the rate of customs duty applicable to a good.
COMMON EXTERNAL TARIFF
Term sometimes used to designate the CCT in its application to third countries (external) by all Member States.
CUSTOMS DECLARATION
Any statement or action, in any form prescribed or accepted by the Customs, giving information or particulars required by the Customs.
CUSTOMS DUTIES
Tax that is levied on goods when they enter or leave the customs territory.
There are ad valorem duties (taxes that consist in calculating a tax by applying a percentage according to the value of the goods) and specific duties (duties whose basis is the quantity of goods: weight, volume, number, and not the value). These duties are collected by the customs of the Member States and are allocated to the budget of the Union, the European Union.
CUSTOMS REPRESENTATIVE
Any person appointed by another person to carry out acts or formalities provided for by the customs legislation with the customs authorities.
CUSTOMS VALUE
The value of goods established in accordance with customs rules for the level of ad valorem duties.
The EU Customs Code defines the customs value as the transaction value. That is, the price actually paid or payable for the goods when they are sold for export to the customs territory of the Community.
The value is, together with the type and origin of the goods, one of the key elements for the application of the customs regulations.
> How to calculate the customs value of a good (Customs Bridge article): Read
D
DECLARATION OFFICE
The office of declaration ensures that the goods are placed under the relevant customs procedure.
*Carries out documentary checks for the purpose of verifying the customs declaration
*Requests the office of presentation to proceed with the physical control of the goods
*Complete customs formalities for the recovery of customs debts
* Processes applications for rectification and invalidation
* Processes claims for refund
DELTA
DELTA means “Customs Clearance Online by Automated Transmission”. It is a new system of customs clearance of the French customs.
DELTA G & X
Computerized customs clearance application for traditional and express freight. In 2023, replaced by DELTA IE.
DELTA IE
Computerized import/export customs clearance application. Will replace DELTA G by 2023
E
EXPLANATORY NOTES TO THE EU COMBINED NOMENCLATURE
These notes explain, explain and comment on the data contained in the TDC, and provide many details on classification, the content of the sub-headings, etc. They integrate and complete the NESH or refer to them. The latter are subject to continuous modification. The availability of these Notes in PDF format on the Internet is free.
EXPLANATORY NOTES TO THE WTO HARMONIZED SYSTEM
These notes explain, explain and comment on the data contained in the Harmonized System nomenclature, and provide many details on classification, the content of subheadings, etc. They are subject to continuous modification. The communication of these notes by the WCO is subject to a fee.
EXCHANGE RATES
Used when the elements used to determine the customs value of the goods to be declared are not denominated in euros. An online “exchange rate” service is available on douane.gouv. For valuation purposes, exchange rates are published on the second last Wednesday of each month and apply for one month, starting on the first day of the following month.
Updated monthly, the exchange rates to be used in the determination of the value are derived from :
- either the daily quotations of the European Central Bank (ECB), for the conversion of “hard currencies”,
- or the monthly quotations of the Banque de France, for the conversion of “weak currencies
F
FREE FLOW
One of the major characteristics of the internal market is that the movement of goods between member states must be ensured without any quantitative, tariff, fiscal or normative obstacles.
This notion is also included as an objective in certain free trade agreements (EEA, EU/Eastern European candidate countries) or customs unions (EC/Turkey).
FREE TRADE AREA
Entity formed by the Customs territories of an association of States and having in its ultimate state the following characteristics:
– the elimination of Customs duties in respect of products originating in any of the countries of the area,
– each State retains its Customs tariff and Customs law,
– each State of the area remains autonomous in matters of Customs and economic policy,
– trade is based on the application of rules of origin, to take account of the different Customs tariffs and prevent deflection of trade,
– the elimination of restrictive regulations of commerce within the free trade area.
G
GDCE
General Directorate of Customs and Excise.
GENERAL RULES FOR THE INTERPRETATION OF THE COMBINED NOMENCLATURE
There are 6 of them and they are applicable to all Member States and published on EUR-LEX
H
HARMONIZED SYSTEM
A system, under the aegis of the World Customs Organization, for the designation and codification of goods, adopted within the framework of an international convention that came into force on 01.01.1988. It includes a six-digit nomenclature, general rules of interpretation and classification notes.
It is used by more than 200 countries to elaborate customs tariffs and to establish international trade statistics.
I
ICS
The Import Control System (ICS) is the electronic system for managing import summary declarations applicable on January 1ᵉʳ, 2011. This new ICS regulation, Import Control System, defines the electronic system for managing secure declarations for the import of goods into the European territory. It has, in fact, a security and anti-terrorist vocation, and allows the control of goods entering European soil.
IMPORTATION
The act of bringing or causing any goods to be brought into a Customs
territory.
INCOTERM
Codification of the terms of a commercial transaction set up by the International Chamber of Commerce. In French “C.I.V. International terms of sale”.
The terms of delivery are coded by 4 characters, 3 alphabetical followed by a numerical (the codes 1 for France, 2 for the other Member States, and 3 for the third countries, correspond to the countries mentioned in the contracts of transport). They determine the reciprocal obligations of the seller and the buyer in the context of an international purchase/sale contract. As far as customs formalities are concerned, the incoterm reflects the distribution of respective responsibilities between the supplier and the buyer.
J
JUDGMENTS COURT OF JUSTICE of the European Communities (published on Curia.europa.eu)
Result of a customs dispute (e.g. on customs duties, anti-dumping duties, customs value etc.).
L
LEGAL ACTS OF THE EUROPEAN UNION
These acts provided for the exercise of the Union’s competences in Article 288 of the Treaty on the Functioning of the European Union, which have a different scope, are the following:
– The regulation: it has a general scope. It is binding in its entirety and directly applicable in all Member States.
– The directive: it is binding on all Member States as to the result to be achieved, while leaving to the national authorities the competence as to the form and the means.
– The decision: it is binding in all its elements. When it designates addressees, it is only binding on them.
N
NATIONAL ADDITIONAL CODES
National Additional Codes allow the codification of a French regulation. They refer to the application of a French law, order or decree.
NATIONAL CUSTOMS CODE
However, litigation remains essentially the exclusive responsibility of the Member States (prosecutions, sanctions, etc.)
O
OFFICIAL CUSTOMS BULLETIN
This periodical disseminates all regulatory instructions issued in application of national or international texts (regulations, directives, decisions, notices, laws, decrees and orders).
ORIGIN
Country in which the goods have been produced or manufactured, according to the criteria laid down for the purposes of application of the Customs tariff, of quantitative restrictions or of any other measure related to trade
P
PAYMENT OF DUTIES AND TAXES
The goods declared in customs are available only after payment of the duties and taxes due to the Receiver of the customs office where the operation takes place.
PREFERENTIAL ORIGIN
There are rules for benefiting from preferential customs duties in the framework of free trade agreements or unilateral concessions with certain third countries outside the EU
PREFERENTIAL ARRANGEMENTS
In its relations with the rest of the world, the European Union has implemented a highly selective trade policy which has led it, on many occasions, to grant preferential tariff regimes and the elimination of quantitative restrictions to a particular country or group of countries in order to achieve a harmonious development of international trade.
Examples: agreements with EFTA, agreements with CEEC (Central and Eastern European Countries), agreements with ACP (Africa, Caribbean, Pacific) countries, etc…
PRESENTATION OFFICE
* Examines the returns he has to control.
* Carries out the prescribed physical controls
* Reports the results of the control.
TARIFF HEADING (OR SUBHEADING)
The textual designation in a tariff nomenclature of a single commodity
or a single group of related commodities.
PROVENANCE
The country from which the goods were shipped to the direct destination of the importing customs territory (the concept of origin should not be confused with that of “origin”).
R
REGISTERED CUSTOMS REPRESENTATIVE
As of January 1ᵉʳ, 2018, professionals who wish to perform acts or formalities provided for under customs law on behalf of others and with customs authorities must first be registered with customs and meet certain conditions.
S
SOPRANO
Online service that manages all customs and tax authorization requests proposed by the customs to professionals. Example: BTI request via this platform which can be done in a dematerialized way.
https://www.douane.gouv.fr/service-en-ligne/demande-dautorisation-douaniere-et-fiscale-soprano
SECTION NOTES
The section notes determine the classification of goods in the sections. These notes are referred to as notes, subheading notes and additional notes.
SINGLE ADMINISTRATIVE DOCUMENT
A multi-sheet form used in the Community and EFTA countries for the control of imports, exports and goods in transit. See also Transit accompanying document.
Form used to draw up customs declarations in the normal procedure or summary declarations in the simplified procedure. To be phased out by 2023
HARMONIZED SYSTEM
A system, under the aegis of the World Customs Organization, for the designation and codification of goods, adopted within the framework of an international convention that came into force on 01.01.1988. It includes a six-digit nomenclature, general rules of interpretation and classification notes.
It is used by more than 200 countries to elaborate customs tariffs and to establish international trade statistics.
T
TARIC: INTEGRATED COMMUNITY TARIFF
Integrated Tariff of the Communities, contained in a Commission database. It includes Community measures applicable to the import and export of specific products, such as tariff suspensions, tariff quotas, tariff preferences, anti-dumping duties, quantitative restrictions, embargoes and export refunds.
The 10-digit TARIC code is a division of the Combined Nomenclature.
TARIFF DESCRIPTION
Nomenclature of a product under the customs tariff. Imported or exported goods are declared according to the NDP in the customs tariff. The tariff species is used to determine customs duties and to control foreign trade.
TRANSIT
The Transit actor is a service provider who takes care, on behalf of his customers, of all the operations relating to their goods: breaking of load, handling, storage, commercial formalities, customs formalities.
W
WORLD TRADE ORGANIZATION
International constitution, based in Geneva, which replaced the GATT in 1994 and whose aim is to promote the liberalization of international trade.
WORLD CUSTOMS ORGANIZATION (WCO)
International organization created in 1952 and gathering 184 countries in 2009. Its headquarters are in Brussels. The two official languages are English and French. France is one of the seventeen founding members of this organization. The main objectives of the WCO are the harmonization and simplification of customs regulations through the development and promotion of international instruments control and fight against fraud the development of cooperation and technical assistance among Member States and with other intergovernmental organizations.
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