ABI - Automated Broker Interface

MPF - Merchandise Processing Fee

This is a charge payable to U.S. Customs for all NON-U.S. and NON-NAFTA eligible goods. The rate is .21% of the value of the entered value of the goods or $25.00 min. on Formal Entries and $2.00 for Informal Entries

Formal Entry

NON-U.S. goods valued over $2,000. For U.S. goods the amount is $10,000

Informal Entry

Goods valued under $2,000. Some commodities are restricted from being an Informal Entry, regardless of the value. Some examples are furniture and plastics.

Section 321

On some commodities if the value is under $200 they can enter without an entry.

T.I.B. - Temporary Import Bond

Issued for goods entering the U.S. for trade shows or for repair. Other purposes may also qualify for A.T.I.B., (Please call for more information). This entry allows goods to enter the U.S. for 1 year without paying duties.

Buyer

One of the single biggest issues in trade is learning to understand all the different expressions, terms and abbreviations (hence the usefulness of this service!). The name of Buyer is an excellent example and here are other expressions used to describe the same party: On transport documents – The Consignee In Banking Matters – The Applicant In Customs & Excise language – The Importer In terms of the VAT Act and revenue matters – The Purchaser Commercially – The End-User. Yet, in reality each of these names has a different connotation. The expression 'Buyer' is favoured by the United Nations and the International Chamber of Commerce, and it is used in UN Conventions and ICC publications to mean most – if not all – of the other terms too. In the transport document, however, the 'consignee' is the entity that will apply for release of the goods in the destination country, but the term 'buyer' is avoided, as there is no guarantee that an underlying exchange of money for the cargo has or will happen. (Note that all and any other parties who acquire an interest in the cargo are called 'The Merchant') The banking term 'applicant' (which you will come across mostly when dealing with Documentary Credits) is literal, in that this is the party who has applied to the bank to initiate the Credit on their behalf - and this might not be any of the other entities described. In terms of Customs and Excise, the 'Importer' has a legal relationship with them, being the party who declares the import event on the import entry and who warrants the accuracy of the information contained in the import entry documents. The use of the expression 'purchaser' is found in the SA VAT Act, where it is a reference to the foreign party who may claim VAT back from the Revenue Services subsequent to the export event. Finally, the end-user is the final delivery point of the cargo in the destination country, concluding the export event. It is therefore wrong to generalise and say that they are all roughly the same, it must be noted that each fulfills a different role in the process.

Commercial Invoice:

This expression is used to describe the invoice issued by the Seller to the Buyer for payment.

Exactly what the invoice contains in its detail is governed by two considerations. The first of these are any demands laid down by the laws of the countries of origin or destination. These laws may specify the wording to be used, how values are to be expressed or broken down (this is particularly important when calculating values for duty purposes) and the languages to be used, number of copies to be issued and so on.

The second consideration is that the invoice must comply with any terms and conditions of the Sales Contract regarding the invoice. This may require additional details over and above anything that is legislated.It is a vital document in trade and Buyers and Sellers frequently overlook its importance until they are faced with a problem. This reactive approach often results in detention charges and storage as well as disputes and uncertainty. It would be far more beneficial if both parties were proactive in discussing the shape, form and content of the invoice during the negotiation of the sale in the first instance.

Note that the actual expression “commercial invoice” is normally not required to be expressed on the document itself. Frequently the invoice has no wording indicating what it is – the assumption being that everyone will recognise it by its content. This again is dangerous and may even be legislated against – such as in South Africa where the Seller is required by law to issue the commercial invoice clearly marked “Tax Invoice”, regardless of whether tax is raised on the sale or not.