Customs Glossary – Terms for Shipment Preparation, Shipping, and Customs Clearance Explained

A third country is any country outside the European Union (EU). Special EU territories are regions that politically belong to the EU but are treated as third countries under customs law (e.g. Canary Islands, Ceuta, Melilla).

The export address refers to the location from which the goods are exported. The sender is the party shipping the goods, while the recipient is the person or company receiving the goods in the destination country.

A delivery of goods without consideration, which may be made for private or business purposes. Gifts are also subject to certain customs and value limits when shipped abroad.

International goods coding system of the World Customs Organization (WCO) for the standardized classification of goods in foreign trade. It forms the basis for customs tariffs and trade statistics.

Document containing all relevant information about a shipment of goods (seller, buyer, goods description, price, quantity, country of origin, etc.). It forms the basis for customs clearance and determining the customs value.

A dummy invoice without a request for payment, e.g. for non-saleable product samples, gifts or replacement deliveries. It is used exclusively for the customs declaration.

Personal property carried by travellers for private use or as a gift. Certain value limits and import restrictions must be observed.

Union goods are goods that are in free circulation within the EU. Non-Union goods originate from third countries and have not yet been imported or cleared through customs.

Personal belongings that are taken along when moving residence to another country. Under certain conditions, they may be exempt from customs duties and taxes.

Declaration on an invoice in which the exporter confirms the preferential origin of goods. It serves as proof for customs benefits.

Percentage rate of duty applied to the customs value of imported goods. It forms the basis for calculating import duties.

Agreement between states under which no customs duties are levied on mutual trade and a common external tariff applies to third countries.

Basis for calculating customs duties and import VAT. Usually the transaction value, meaning the price actually paid for the goods including certain incidental costs.

A bank undertaking that ensures the exporter receives payment once defined conditions have been met (e.g. presentation of shipping documents).

EU-wide registration number for companies involved in customs procedures. It is used for clear identification in customs declarations.

Preferential proofs of origin that confirm the origin of goods from specific countries and therefore enable customs-privileged import.

Official approval required for the export of certain goods (e.g. dual-use goods or military goods).

Area of law that regulates the export of sensitive goods:

• Dual-use: goods that can be used for both civilian and military purposes.
• CITES: protection of endangered animal and plant species.

Declaration by the supplier regarding the preferential origin of their goods. A long-term supplier’s declaration applies to recurring deliveries over a defined period.

Official certificate confirming that plant exports are free from pests and diseases. It is issued by the plant protection authority of the country of origin.

International agreements that grant lower or zero customs duty rates if proof of origin for the goods is provided (e.g. by EUR.1 or an origin declaration).

Companies that have registered in the Registered Exporter System and are allowed to issue preferential proofs of origin (e.g. origin declarations) independently.

Assessment of potential risks in the movement of goods based on origin, type of goods and parties involved, enabling targeted customs controls.

Screening of business partners against international embargo and sanctions lists in order to avoid violations of foreign trade law.

The entry summary declaration (ENS) in the EU security programme Import Control System 2 (ICS2) contains advance information about shipments being imported into the EU.

Additional duties on imported goods when it is proven that they are exported at dumping prices or with inadmissible subsidies.

EU carbon border adjustment system that ensures imported goods are subject to the same climate protection requirements as EU products by aligning CO2 prices with the EU Emissions Trading System.

Standard form for customs declarations in the EU with harmonized data sets for shipping, import and export.

End use describes the final purpose of goods. Compliance guidelines ensure that all export and customs regulations are observed in a legally compliant manner.

International treaties that create trade facilitation, e.g.

• FTA: Free Trade Agreement
• EPA: Economic Partnership Agreement
• GSP: Generalized System of Preferences

EU legal framework for harmonizing value added tax, including rules for cross-border supplies.

International agreement for the protection of endangered animal and plant species through control of trade in these species.

Shipment of goods leaving the customs territory of the EU for a third country. It is subject to export customs clearance.

Electronic proof issued by customs confirming that a shipment has actually left the customs territory of the EU. It serves as an important supporting document for VAT purposes.

The customs office through which goods physically leave the EU, e.g. the port or airport where the goods are exported.

Sea waybill or bill of lading. A document that confirms receipt of the goods by the shipping company and also serves as proof of ownership and transport.

Customs office where the export customs declaration is accepted and checked, usually near the sender or place of dispatch.

Transport document used in road freight transport under the CMR Convention. It contains information about the sender, recipient, type and quantity of goods and serves as proof of the transport contract.

Company that offers courier, express or parcel services. Examples include DHL Express, UPS, FedEx and DPD. They usually handle customs clearance for standard shipments.

Air waybill used in air transport. It documents the air transport contract and contains information about the sender, recipient, flight route and freight costs.

Electronic system for tracking a shipment along the transport chain. It shows the current status and location of a delivery.

Automated IT system used by the German customs administration for the electronic processing of customs declarations, authorisations and procedural records.

Account approved by the customs authority that allows companies to pay import duties collectively, usually with monthly settlement.

Electronic or written notification of an export shipment to customs. It contains all relevant export data and forms the basis for the Export Accompanying Document.

Document generated by the customs system (ATLAS) containing the MRN (Movement Reference Number). It accompanies the goods to the customs office of exit, where the export is confirmed.

International customs document for the temporary use of goods (for trade fairs, film productions or tools). It enables duty-free temporary import and re-export.

“Internet Export Declaration Plus” – online portal of German customs through which smaller companies can submit their export declarations electronically themselves.

Instruction given by the recipient to the freight forwarder or customs agent on how a shipment is to be imported and cleared (e.g. customs procedure, storage, delivery address).

Combining several shipments into one transport:

• Groupage / LCL (Less than Container Load): several customers share one container.
• FCL (Full Container Load): one container is used entirely by one shipper.

Fee incurred when goods are stored in a port, airport or freight forwarding warehouse for longer than agreed.

Documents used in the European customs transit system:

• T1: non-Union goods remain under customs supervision during transit.
• T2L: proof of Union goods within the EU.
• T2LF: proof of use for Union goods in special territories (e.g. Canary Islands).

Customs procedure for goods that are processed within or outside the EU:

• Inward processing: non-Union goods are processed in the EU and then re-exported.
• Outward processing: Union goods are taken to a third country for processing and later re-imported.

Refers to transport to and from the main carriage route (e.g. transport to the port – pre-carriage, delivery from the port – on-carriage).

Warehouse in which primarily non-Union goods are stored under customs supervision without import duties being incurred until the goods are either imported, re-exported or processed.

Customs measure for sensitive goods (e.g. dual-use goods, weapons, critical technologies). Additional notifications, authorisations or checks are required during transport.

Electronic system for processing customs transit procedures within Europe (New Computerised Transit System). It enables goods to be transported under customs supervision through several countries without renewed import formalities.

Procedure in which goods first arrive and are transported under customs supervision to the responsible inland customs office, where customs clearance is carried out.

Export or import of goods that were previously imported or exported (e.g. returned goods, goods sent for repair). Under certain conditions, this may be exempt from customs duties and taxes.

Company with customs authorisation that is permitted to receive goods under a customs procedure directly at its own premises without presenting them at the border customs office.

The total amount of all charges incurred when goods are imported into the EU, including customs duties, import VAT and, where applicable, excise duties. They are calculated on the basis of the customs value.

Shipment of goods entering the customs territory of the EU from a third country. Such shipments must be declared to customs and, where applicable, cleared through customs.

Tax incurred when goods are imported from third countries and equivalent to domestic value added tax. It is calculated on the customs value plus customs duties and transport costs up to the first place of destination.

Term for goods that are under customs supervision. Goods under customs supervision only become Union goods once they have been released for free circulation.

Formal declaration of goods to customs, specifying the type, quantity, value and origin of the goods. It can be submitted electronically via systems such as ATLAS.

Official document containing the import charges assessed by customs. It serves as the basis for paying the charges and can be challenged in an objection procedure.

Digital database (e.g. TARIC, EZT-Online) containing all applicable EU and national customs tariffs, commodity codes and duty rates. It supports the correct tariff classification of goods.

Presentation means making goods available to customs for inspection. The presentation deadline is the period within which the goods must be presented after arrival.

EU-wide electronic procedure introduced to simplify VAT collection for online sales to end customers within the EU. It makes it possible to pay VAT centrally in one Member State.

Unique reference number that electronically identifies customs declarations and transit procedures. It is used to track and monitor customs processes.

EU system for the central reporting and payment of VAT on intra-Community distance sales. It differs from IOSS, which applies to imports of goods from third countries.

Electronic exchange procedures for customs information.

• PLT: Paper Light Trade – almost fully digitalized customs processing.
• EDI: Electronic Data Interchange – standardized electronic data exchange between companies and customs authorities.

Simplified procedure that allows registered companies, under certain authorisations, to submit only reduced accompanying documentation with customs declarations.

Systematic recording and reporting of customs-related business transactions to ensure compliance with legal requirements. It supports internal control and external documentation during customs audits.

Procedure in which import VAT is paid in another EU Member State in which the importer is registered for VAT purposes. It is frequently used in cross-border logistics.

Internal company guidelines and control mechanisms to ensure that all export and import processes are handled in compliance with the law, especially in the context of export control.

Service in which an authorised representative (e.g. customs declarant or freight forwarder) acts in their own name but on behalf of the importer in order to handle customs or tax procedures.

Official or internal review of customs processes, documentation and payments. The aim is to ensure the correct application of customs regulations and preferential arrangements.

Document confirming the actual flow of funds for goods or services, such as a bank statement, payment confirmation or bank transfer receipt. Proof of payment can serve as evidence of the transaction value for customs purposes and is often required during export and import audits.

Legally required retention of confirmations of exit issued by customs (proof that the goods have actually left the customs territory). As a rule, these documents must be archived in a traceable manner for ten years, either digitally or in paper form.

Obligation to retain preference documents (e.g. origin declarations, EUR.1, long-term supplier’s declarations), usually for a period of three to ten years. They serve as evidence during subsequent customs audits.

All documents that record the shipping, transport and customs process, such as commercial invoices, consignment notes, transport confirmations and customs documents. This documentation enables complete tracking of a shipment in the event of an audit or liability case.

Preparation of internal and external reports on compliance with customs and foreign trade regulations. This includes, for example, evidence of export controls, use of preferences or sanctions list screening.

Assessment and documentation of irregularities or anomalies after completed export or import procedures. The aim is to identify process weaknesses and minimize compliance risks in future procedures.

Mandatory declarations to national or EU authorities for recording cross-border trade in goods (e.g. Intrastat declarations, EXSTAT). They provide the basis for foreign trade statistics and serve market and customs monitoring purposes.