Cross-border logistics glossary
The terms that show up in an international e-commerce shipment, explained in context and in terms of what they mean when shipping with MailAmericas.
Search by name, acronym or synonym (for example “DDP”, “pick and pack” or “customs”).
Customs
11 termsFormal entry into the destination country: clearance, taxes, simplified regimes and who pays what.
Customs clearance
Customs clearance is the procedure by which the destination country's customs authorises a parcel's entry, after reviewing its declaration, classifying it and assessing the applicable taxes.
DDP
DDP (Delivered Duty Paid) is the arrangement where the seller pays import duties and taxes before delivery, and the buyer receives the parcel with no additional charge at destination.
DDU
DDU (Delivered Duty Unpaid) is the arrangement where the seller covers transport to destination but not import taxes, which the buyer pays before receiving the parcel.
Duties
Duties are the taxes a country charges on imported goods, calculated as a percentage of the product's value according to its tariff classification and country of origin.
Import taxes
Import taxes are the set of levies assessed when a product enters a country: the customs duty plus internal taxes (VAT, state or specific taxes) calculated on the shipment's value.
CIF value
The CIF value (cost, insurance and freight) is the product's value plus the cost of insurance and international freight to the destination country, and the base on which most customs authorities calculate duties and taxes.
Simplified courier regime
The simplified or courier regime is the set of rules many countries apply to low-value, low-weight parcels so they clear with a summary declaration, a single or reduced tax and short lead times.
De minimis
De minimis is the maximum shipment value below which a country charges no import duties or taxes, or charges them at a reduced rate.
HS classification
Tariff classification is the assignment of a Harmonized System (HS) code to each product, which determines the duty it pays and the regulations that apply to it in the destination country.
Customs hold
A customs hold is the detention of a parcel during clearance until an observation is resolved: incomplete buyer data, a doubtful declared value, a regulated product or unpaid tax.
Free trade agreement
A free trade agreement is a pact between countries that reduces or eliminates duties on goods originating in the signatory countries, provided that origin is proven.