Anti-dumping Duty

GATT’s Article 6 allows anti-dumping duties to be imposed on goods that are deemed to be dumped and causing injury to producers of competing products in the importing country. These duties are equal to the difference between the goods’ export price and their normal value, if dumping causes injury.

ASYCUDA (Automated System for Customs Data)

ASYCUDA is a computerized customs management system which covers most foreign trade procedures. The system handles manifests and customs declarations, accounting procedures, transit and suspense procedures, and generates trade data that can be used for statistical economic analysis.

BL (Bill of Lading)

A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the authorized agent on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods.

Bonded Goods

Goods stored in a warehouse (operated or approved by Customs), without the payment of duty until that duty is paid or the goods are exported or otherwise legally dealt with.

Bonded Warehouse

A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Bound Tariff

Maximum tax that can be levied on imports based on a bound tariff level. The bound tariff is the highest customs duty that can be charged on products imported from the territory of another country.

C & F Agent

C & F Agent means "Clearing and forwarding agent. Any person, who is engaged in providing any service, either directly or indirectly, concerned with the clearing and forwarding operations in any manner to any other person or includes a consignment agent.

CAD (Cash against Documents)

Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.

Cash in Advance

A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods, usually employed when the goods are built to order such as specialized machinery.

Certificate of Origin

A specific document identifying the goods are originated in a specific country. This certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person.

CIF (Cost, Insurance and Freight)

“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

Compound Duty Rate

A rate of duty incorporating both an ad valorem rate and a specific rate; e.g. 10% + MwK20/ton

Contraband

Forbidden by law to be imported or exported.

Customs Clearing Agent/Broker

A person who carries on the business of arranging for the Customs clearance of goods and who deals directly with the Customs for and on behalf of another person.

Customs Duty (CD)

Charge levied on imports and listed in importing country's tariff schedules. Duties may be specific or ad valorem or a combination of the two (ad valorem with a specific minimum, or the greater of the two).

Customs Union

A group of countries forming a single customs territory in which (1) tariffs and other barriers are eliminated on substantially all the trade between the constituent countries for products originating in these countries, and (2) there is a common external trade policy (common external tariff) that applies to non-members.

Customs Warehouse

A designated place where imported goods are stored under Customs control without payment of import duties and taxes

Country of Origin

The country where the goods were mined, grown, or manufactured or where each foreign material used or incorporated in a good underwent a change in tariff classification indicating a substantial transformation under the applicable rule of origin for the good.

Delivered At Place (DAP)

“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

DAT Delivered At Terminal

“Delivered at Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes a place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

Delivered Duty Paid (DDP)

“Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.

Destination Delivery Charge (DDC)

A charge, based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight.

Demurrage

A charge made by a shipping company or a port authority for failure to load or remove goods within the time allowed.

Dumping

The importation of goods into a country at a price that is less than the normal price in the country of exportation.

Duty-drawback Scheme

A duty drawback scheme (often administratively demanding) is a form of Border Tax Adjustment whereby the duties or taxes levied on imported goods are refunded, in whole or in part, when the goods are re-exported. The idea is to reduce the burden on exporters while maintaining tariffs for revenue or protective purposes.

Excise Duty

A tax on goods that are manufactured locally.

Export License

A government document which permits the ‘Licensee’ to engage in the export of designated goods to certain destinations.

EPZ (Export Processing Zones)

A designated area or region in which firms can import duty-free as long as the imports are used as inputs into the production of exports.

Export Quota

Restriction or maximum limit that a country sets on the value or volume of sales of given export products (exports). Usually done to protect local producers and consumers from temporary shortages of certain materials, or to influence the world prices of specific materials or products. The WTO prohibits this mechanism.

FOB (Free On Board)

“Free On Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

Foreign Inland Freight        

Foreign inland freight consists of the charges to move the freight from the foreign factory to the place of loading. Foreign inland freight charges are dutiable unless the terms of sale are “ex-factory” or the charges were incurred incident to the international shipment.

Freight Forwarder   

An independent business which assembles, collects and consolidates less-than-truckload freight. Also, a person acting as an agent in the transshipping of freight to or from foreign countries and the clearing of freight through Customs for compensation.

GATT

General Agreement on Tariffs and Trade. A treaty created following the conclusion of World War II. GATT's main objective was to reduce the barriers of international trade through the reduction of tariffs, quotas and subsidies and it was superseded by the WTO as the international organization governing international trade.

GSP (Generalized System of Preferences)

The GSP is a system through which industrialized high-income countries grant preferential access to their markets to developing countries.

Harmonized Commodity Description and Coding System (HS)

The Harmonized System is an international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system. 

Import Quota

An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. Restriction, limit, or cap (in value or quantity) that a country sets on goods that it purchases abroad. If the volume or price exceeds the limit, the goods cannot be imported. The WTO prohibits this mechanism.

Irrevocable Letter of Credit

Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.

Non-Tariff Barriers (NTB)

Barriers to an exporter to a foreign country that are not tariff/tax related and include quarantine restrictions, quota and other restrictions such as labelling. They make the importation of the goods into the country difficult and/or costly.

Rules of Origin

Rules of origin are used to determine the country of origin of a product for purposes of international trade. However, determining where a product comes from is no longer easy when raw materials and parts crisscross the globe to be used as inputs in scattered manufacturing plants. Rules of origin are important in implementing such trade policy instruments as anti-dumping and countervailing duties, origin marking, and safeguard measures. There are two common types of rules of origin depending upon application, preferential and non-preferential.

Phytosanitary Certificate

A certificate issued by a government agency (usually Agriculture) to satisfy import regulations of foreign countries indicating that a shipment has been inspected and found free from harmful pests and plant diseases.

Preferential Tariff

Tariffs lower than those that a country usually applies for the importation of a good, granted to one or more countries when they belong to a certain geographical area, a free trade area, a customs union or a group with specific characteristics, such as “developing countries” and “least developed countries.”

Tariff

A duty (or tax) levied upon goods transported from one customs area to another either for protective or revenue purposes. Tariffs raise the prices of imported goods.

Tariff Ceiling

Any pre-set value or quantity, authorized for importation or exportation of given goods, during a specified period, with a reduction of the normal Customs duties, and beyond which the granting of the said tariff reduction may be suspended until the end of the period in question.

Tariff Rate Quotas (TRQs)

Measure under which a good is subject to a MFN tariff but a certain quantity (the 'quota') is admitted at a lower, sometimes zero, tariff. TRQs are mainly applied to agricultural trade and can be seasonal.

Technical Barriers to Trade

A trade restrictive effect arising from the application of technical regulations or standards such as testing requirements, labeling requirements, packaging requirements, marketing standards, certification requirements, origin marking requirements, health and safety regulations, and sanitary and phytosanitary regulations.

VAT (Value Added Tax)

Indirect tax on the domestic consumption of goods and services, except those that are zero-rated (such as food and essential drugs) or are otherwise exempt (such as exports).

VAT is imposed by VAT Act  of 2005 at a flat rate 16.5%.