Question 1

What is Landed Cost?

Accepted Answer

Terms related to what constitutes a landed cost total such as taxes, duties, and fees.

Question 2

What is Import duty?

Accepted Answer

A type of tax collected by a country’s customs authorities on goods that arrive from other countries (i.e. imports). The duty amount is calculated or applied based on the value of the goods and will vary depending on the country’s regulations and duty de minimis values.

Question 3

What is Import tax?

Accepted Answer

A tax collected by the country, state, or province in relation to the goods getting imported. The tax rates will vary depending on the country’s regulations and tax de minimis values.

Question 4

What is Landed cost?

Accepted Answer

The total price or import costs associated with a cross-border purchase. The total landed cost is the sum of duties, taxes, and carrier or country-specific import fees. For small parcels or low-value shipments, the duties and taxes will rarely be taken into account in the total landed cost.

Question 5

What is EOR (Exporter of Record)?

Accepted Answer

The term for the entity responsible for complying with the required customs processes for the export of goods. This includes collecting necessary documentation and ensuring clear and accurate descriptions and values of goods. The EOR is also responsible for any breach of compliance procedures or regulations and any goods lost through the shipment process.

Question 6

What is IOR (Importer of Record)?

Accepted Answer

A term for the owner or purchaser of products being imported to a country. The IOR is responsible for ensuring the imported goods comply with local laws and regulations, filing a completed duty entry and associated documents required by the CBP (Customs Border Protection), and paying the import duties and taxes.

Question 7

What is Incoterm?

Accepted Answer

Short for International Commercial Terms, incoterms are trade terms for the delivery of goods, which provides certainty and clarity to businesses and traders in the industry. Incoterms and rules are standardized and published by the International Chamber of Commerce (ICC).

Question 8

What is MoR (Merchant of Record)?

Accepted Answer

A term for the entity that is authorized and held liable by a financial institution to process a consumer’s credit and debit card transactions. The MoR is responsible for maintaining a merchant account, processing all payments, and managing all credit card processing fees. They also ensure compliance with the PCI-DSS, stay up-to-date on any laws where the transactions are taking place, and handle any chargebacks. The MoR is typically the name that appears on the consumer’s credit card statement.

Question 9

What is Bill sender?

Accepted Answer

A term that means charges will be billed to the sender.

Question 10

What is Bill recipient?

Accepted Answer

A term that means charges will be billed to the recipient.

Question 11

What is Bill third party?

Accepted Answer

A term that means charges will be billed to someone other than the sender or recipient. In order to choose this option, you must provide your account number for the carrier you’re using.

Question 12

What is Certificate of origin?

Accepted Answer

A certificate of origin certifies the county of origin of the goods in the shipment. It is rarely used with low-value ecommerce shipments; however, if the value of goods is higher than $2,500 or you want trade agreements, preferential treatment or other reasons could require a certificate of origin.

Question 13

What is CN22?

Accepted Answer

A form smaller than a commercial invoice and requiring less information for customs clearance. This is typically sent through as a postal clearance vs. a commercial clearance.

Question 14

What is Commercial invoice?

Accepted Answer

A commercial clearance requires a commercial invoice and is typically performed by an authorized customs broker and not by customs. It is common to see additional fees charged by the broker or clearing agent such as COD fees, disbursement fees, brokerage fees, and more.

Question 15

What is Customs?

Accepted Answer

A country agency that collects import duties and taxes. In some cases such as postal clearance, customs may also act as the clearing agent of an import shipment; however, the majority of import shipments will be cleared by an authorized customs broker.

Question 16

What is Declaration statement?

Accepted Answer

This statement is listed on a commercial invoice and is generally optional. It can be used for low-value shipments with trade preferences like USMCA, or with a requirement from the country of import such as the New Zealand low-value goods law.

Question 17

What is EEI (Electronic export information)?

Accepted Answer

The EEI only applies to US exports and is electronically filed with the US Bureau’s Foreign Trade Division. This is required for all goods exported from the US over $2,500 in value. You may file for an EEI through your logistics provider or freight forwarder.

Question 18

What is MFN (most favored nation)?

Accepted Answer

The MFN clause requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to _all_ other participating member countries. For example, if one country reduces duties by 10% for a particular participating member country, the MFN clause states that all participating member countries will receive the same 10% reduction.

Question 19

What is Paperless commercial invoice?

Accepted Answer

The electronic customs clearance process does not need to have a physical commercial invoice printed. A digital commercial invoice with a digital signature is sent to the clearing agent. This is not available to all countries. Other terms for this include the following: Paperless Invoice (UPS), Paperless Trade (DHL), or Electronic Trade Documents (FedEx).

Question 20

What is Postal clearance?

Accepted Answer

This clearance type is generally performed by the customs agency of the import country and uses the CN22 to determine any applicable import duties and taxes.

크로스보더 용어

크로스보더 용어

Landed Cost

국제 무역

Incoterms

Incoterms 운송사 차트

운송사 청구 용어

세관 및 통관

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