This page contains information to familiarize clients with many of the terms and documentation involved when goods clear customs. Please note this information should not be used as a guide and many clients use a customs broker (click here for definition) to clear shipments through customs.

When imported goods exceed a certain monetary value (e.g. $2,000 in the USA), a formal customs entry is required. The documentation required for formal entries varies by country and product. However, international trade follows general guidelines, and the following documentation is usually required before goods will be released:

1. Bill of Lading
2. Commercial invoice
3. Packing list

In addition to the standard documentation listed above, some goods require additional documentation, as follows:

1. Certificate of origin: This is sometimes required to obtain favorable tariff rates.
2. Packing declaration: A document required to ensure packaging does not contain harmful parasites and has proper fumigation if timber is present.
3. Other documentation may be needed if the laws of the country or nature of the goods require it.

Bill of Lading: A document prepared by a carrier of goods that acts as a receipt and document of title and sets forth the conditions in which the freight will be delivered. Different types of bills of lading include an airway bill of lading, inland bill of lading, ocean bill of lading, and through bill of lading.

Carrier: the person or company that transports the goods.

Commercial invoice: A statement of transaction between a seller and buyer prepared by the seller that outlines the goods shipped as well as declaring the value and country of origin.

Consignee: The person or company to whom the goods will be shipped.

Consignor: The person or company from which a shipment originates.

Customs Broker: An agent licensed to clear goods entering a country through customs for the consignee.

GST/VAT Taxes: Many countries, including Canada, Australia and most nations in Europe, charge GST/VAT taxes. Since this tax is passed onto the end user of the goods, it is recoverable in most situations.

Letter of Credit: A letter issued by a bank that guarantees payment providing the conditions of the letter are met.

Packing list: A list prepared by the shipper which details the contents of all the packages in a shipment such as number of cartons, quantity, weight and measurements.

Port of Entry: A port designated to receive foreign shipments to which customs officers are assigned.

Tariff: A tax that a government levies on goods when they enter a country.

For US tariff info and links to customs web sites of various countries, click here.