Key Customs Terminology

Customs Tariff: The duties and taxes collected by the government on goods entering or leaving the country. The rate for each good is specified in the customs tariff book and consists of two parts: Customs Duties (4%) and Commercial Profit (determined by the government).

Customs Duties: A 4% fee on the CIF value of goods, levied to support domestic production.

Commercial Profit: The rate is set by the government for each item and can vary from 5% to 100% of the CIF value.

CIF Value (Cost, Insurance, and Freight): The total price of the goods, including transportation and insurance costs, up to the destination port.

Customs Declaration: A document submitted to customs by the owner or their representative, which includes information about the goods, such as type, value, origin, and destination.

Goods Clearance: The process by which the owner of the goods receives permission to import or export from customs after paying duties and submitting the required documents.

Customs Transport: The movement of goods under customs supervision from one customs point to another.

Customs Warehousing: The storage of goods in customs warehouses until they are cleared.

Cabotage: The movement of goods under customs supervision from one domestic customs office to another within the same country.

Transit: The passage of goods through a country’s territory to another destination country without paying customs duties.

Customs Valuation: The process of determining the value of goods by customs to calculate the duties owed.

Customs Inspection: The examination of goods by customs officers to ensure they match the information on the declaration and comply with customs laws.

Prohibited and Restricted: Goods whose import or export is either completely banned or subject to a customs permit.

Customs Permit: A license issued by customs to the owner or their representative after the goods have been cleared.

Administrative Corruption: The act of customs employees accepting bribes or abusing their position.

Good Customs Governance: The transparent, accountable, and efficient management of customs.

World Customs Organization (WCO): An international organization that works to facilitate global trade and harmonize customs laws between countries.