Cargo Insurance

Cargo insurance generally refers to supplemental insurance purchased to protect the shipper from loss, damage or theft of cargo while in transit. This coverage is above and beyond basic claims insurance that may be provided. Cargo insurance policies can cover cargo carried by land, or cargo carried by air and sea (Marine Cargo Insurance); policies and options vary greatly.

Certificate of Origin (COO)

A Certificate of Origin (COO) is generated by the exporter or their agent. COOs indicate the country of manufacture of the goods being exported in order to verify that the goods qualify for preferential trading terms, for example, as part of a free trade agreement (FTA). COOs often must be validated by a chamber of commerce or other designated government authority.

Commercial Invoice

The commercial invoice (or pro forma invoice) is required for all cross-border shipments (except for documents that have no commercial value). It is the primary form used to assess duties, taxes and verify that the shipment complies with regulations.
If you are creating an export shipment, you are responsible for preparing the commercial invoice.

When you’re creating your shipping label we’ll help you fill out your commercial invoice as you go. It is important to provide accurate and specific information in order to avoid customs delays.

We’ve outlined what you need to know about the commercial invoice as well as other international shipping forms. We’ve also put together a list of things you should know about customs.

Country of Origin

The country in which item(s) contained within a shipment were produced or manufactured.

Customs

Customs refers to the duties, fees or taxes applied when shipping items between countries. These costs can vary depending on the items and countries being shipped into and from. We’ve put together a guide to understanding customs.

Customs Broker

An agent or entity with authorization on behalf of the importer to help secure customs clearance for goods to enter the destination country(ies).

UPS has more than 100 years of customs brokerage experience. Learn more about how UPS can help companies like yours reach new markets.

De Minimis

In international shipping, de minimis is the threshold set by countries under which no customs duties or taxes are applied to goods.

How small is too small? When it comes to international trade, the answer will differ from country to country.

The threshold for de minimis shipments, where the value of imported goods is small enough to normally be exempt from customs duties and taxes under the law, varies greatly around the world. In some countries, de minimis shipments are subject to a low cap or tight restrictions, while customs authorities elsewhere set a more generous level.
Knowledge of de minimis is not only good for vendors but buyers. Understanding de minimis helps sellers arrive at an accurate landed cost they can share with customers.
Exporters should seek expert guidance on how best to navigate de minimis when clearing customs.

Get the latest tariff and de minimis updates.

Duties

A customs duty (aka tariff) is a charge imposed by a government on goods imported into a country. These charges help regulate international trade and protect domestic industries. The amount is typically based on several factors, including the product’s harmonized tariff code, country of origin, and declared value.

Get the latest tariff and de minimis updates.

Export License

A government-issued document certifying a business or agent to export specific commodities to specific countries. In some countries, most or all exports may require an export license.

Free Trade Agreement

A government-issued document certifying a business or agent to export specific commodities to specific countries. In some countries, most or all exports may require an export license.A trade agreement between two or more countries that provides reduced customs duties for member countries if they import products originating from another member country.

Free Trade Zone (FTZ)

Also known as Foreign trade zone. A government-designated port or area where goods can be stored or used for manufacturing duty-free prior to re-export or entry into the national customs territory.

Harmonized System Code

Also known as a harmonized tariff code. An international standard for classifying goods to help promote consistent classification and application of duties for customs purposes.

Import

Goods or services purchased outside of a country's borders for use inside the purchasing country. The phrase may also express the financial value of all goods and services imported from other countries.

Import License

A government-issued document certifying a business or agent to import specific commodities to specific countries. In some countries, most or all exports may require an import license.

Importer of Record (IOR)

The party responsible for ensuring that imported goods comply with all customs and legal requirements.

Import Fees

Import fees are charges that the government applies to goods imported into the U.S. Import fees can come in a few forms: duties, taxes and tariffs.

Import taxes are fees charged at a set percentage rate as established by the government. Common taxes of this kind include Value-Added Tax which can be a flat fee of 10% or 20% of additional cost, regardless of shipment characteristics.

Import duties are fees based on the shipment’s characteristics, such as value, material, or origin. Because of this, duties vary from shipment to shipment. To help ensure accurate duty charges, having an accurate Harmonized Tariff Schedule (HTS) code for the shipped goods is essential.

We’ve created a guide to import fees and charges.

Tariffs

A charge imposed by a government on goods imported into a country. These charges help regulate international trade and protect domestic industries. The amount is typically based on several factors, including the product’s harmonized tariff code, country of origin, and declared value.

Get the latest tariff and de minimis updates.

Value-Added Tax (VAT)

A consumption tax levied on the value added to goods and services at each stage of production and distribution.

International Shipping Support

Ship globally with confidence with our expert help for customs compliance and delivery.