Glossary for customs and trade compliance

Definitions for LTSD, origin, CBAM, audit trails, classification, and export controls.

• LTSD: An LTSD is a long-term supplier declaration supporting origin claims across multiple shipments.
• Preferential origin: Preferential origin determines whether goods qualify for preferential treatment under a trade agreement.
• Supplier declaration: A supplier declaration captures the origin information a supplier provides for supplied goods.
• REX: REX refers to registered exporters that may issue origin statements under specific arrangements.
• BOI: BOI refers to a binding origin or information decision that provides legal certainty.
• CBAM: CBAM is the European mechanism linking emissions-related reporting and settlement to imported goods.
• HS classification: HS classification is the assignment of the correct goods code to a product based on characteristics and use.
• Export controls: Export controls cover the rules and checks that determine whether goods, parties, or transactions may be released.
• Audit trail: An audit trail records who did what, based on which source data, and with what decision logic.
• BOM: A BOM is the bill of materials: the structured composition of a product.
• Non-preferential origin: Non-preferential origin determines the economic country of origin for anti-dumping, quotas, marking, and trade statistics — independent of trade agreements.
• Cumulation: Cumulation allows materials or processing from partner countries to count toward preferential origin determination.
• Pan-Euro-Med cumulation: The PEM Convention creates a zone of diagonal cumulation where originating materials from participating countries count toward preferential origin.
• EUR-1 certificate: The EUR-1 certificate (movement certificate) is the standard proof of preferential origin for exports to countries with a bilateral EU trade agreement.
• EUR-MED certificate: The EUR-MED certificate is the movement certificate variant enabling diagonal cumulation within the PEM zone and indicating whether cumulation was applied.
• Certificate of origin (Form A): Form A is the certificate of origin issued by developing countries as proof of preferential origin under the GSP (Generalized System of Preferences).
• Customs declaration: A customs declaration is the formal notification to customs declaring goods for import, export, or transit, available in five procedure types.
• Post-verification: Post-verification is the after-the-fact verification of origin proofs by importing customs with the issuing authority in the export country.