# Glossary

Plain definitions for study. Where a term has a legal definition, the link opens it in the [reference viewer](https://customsbrokerlicenseexam.com/ref/); the pinned text governs.

**ABI (Automated Broker Interface).** The part of ACE that brokers and importers use to file entries electronically. See [19 CFR Part 143](https://customsbrokerlicenseexam.com/ref/#cfr/143).

**ACE (Automated Commercial Environment).** CBP's system for entries, entry summaries and other trade filings. The ACE Entry Summary Instructions and the ACE BRPD describe how to fill in its data.

**AD/CVD (antidumping and countervailing duties).** Extra duties ordered by the Department of Commerce on goods sold below fair value or subsidized. They are deposited at entry with the case number. See [19 CFR Part 159, Subpart F](https://customsbrokerlicenseexam.com/ref/#cfr/159).

**Bond.** A contract with a surety that guarantees duties, taxes and other obligations. A single transaction bond covers one entry; a continuous bond covers all of an importer's entries for a year. See [19 CFR Part 113](https://customsbrokerlicenseexam.com/ref/#cfr/113).

**Broker.** A person licensed by CBP to transact customs business on behalf of others. See [19 CFR Part 111](https://customsbrokerlicenseexam.com/ref/#cfr/111).

**CBP Form 7501.** The entry summary. Its blocks and codes are explained in the ACE Entry Summary Instructions.

**Classification.** Finding the right HTSUS number for goods, using the General Rules of Interpretation ([GRIs](https://customsbrokerlicenseexam.com/ref/#hts/doc/gri)) in order.

**Column 1 General, Special and Column 2.** The HTSUS rate columns. General is the normal rate; Special holds program rates marked by symbols such as S (USMCA); Column 2 applies to countries listed in General Note 3(b).

**Continuing education.** Individual brokers must complete at least 36 credits each triennial period ([19 CFR 111.102(b)](https://customsbrokerlicenseexam.com/ref/#cfr/111.102/b)) and certify it with the triennial status report.

**Country of origin.** Where goods were grown, made or substantially transformed. The marking rules are in [19 CFR Part 134](https://customsbrokerlicenseexam.com/ref/#cfr/134); many trade programs have their own origin rules in the General Notes.

**Drawback.** A refund of up to 99% of duties, taxes and fees paid on imports that are later exported or destroyed. See [19 CFR Part 190](https://customsbrokerlicenseexam.com/ref/#cfr/190).

**EAPA (Enforce and Protect Act).** The process for investigating evasion of AD/CVD orders. See [19 CFR Part 165](https://customsbrokerlicenseexam.com/ref/#cfr/165).

**Entry.** The documents filed to get goods released from CBP custody. **Entry summary** is the filing that gives CBP the data to assess duties. See [19 CFR Part 141](https://customsbrokerlicenseexam.com/ref/#cfr/141) and [Part 142](https://customsbrokerlicenseexam.com/ref/#cfr/142).

**FTZ (foreign-trade zone).** An area treated as outside US customs territory for duty purposes. Goods admitted take a status such as privileged foreign or nonprivileged foreign. See [19 CFR Part 146](https://customsbrokerlicenseexam.com/ref/#cfr/146).

**GRI (General Rules of Interpretation).** The six rules, applied in order, that govern HTSUS classification. GRI 1 says classification is by the terms of the headings and the section and chapter notes.

**HMF (harbor maintenance fee).** 0.125% of the value of commercial cargo unloaded at a covered port. See [19 CFR 24.24](https://customsbrokerlicenseexam.com/ref/#cfr/24.24).

**HTSUS.** The Harmonized Tariff Schedule of the United States. Headings have four digits, subheadings six and eight, and statistical reporting numbers ten.

**Importer of record.** The party responsible for the entry: the owner, purchaser, or a licensed broker designated by them. See the [RTME Directive](https://customsbrokerlicenseexam.com/ref/#cbp/rtme) and [19 CFR Part 141, Subpart B](https://customsbrokerlicenseexam.com/ref/#cfr/141).

**In-bond.** Moving goods under bond from the port of arrival to another port before entry or for export. See [19 CFR Part 18](https://customsbrokerlicenseexam.com/ref/#cfr/18).

**Liquidation.** CBP's final computation of the duties on an entry. An entry not liquidated within one year of entry is deemed liquidated as entered, unless extended ([19 CFR 159.11](https://customsbrokerlicenseexam.com/ref/#cfr/159.11/a)).

**MPF (merchandise processing fee).** An ad valorem fee on formal entries, held between a minimum and a maximum that CBP adjusts each fiscal year. See [19 CFR 24.23](https://customsbrokerlicenseexam.com/ref/#cfr/24.23) and the [MPF calculator](https://customsbrokerlicenseexam.com/calculators/mpf/).

**Nominal consignee.** A party named as consignee who may make entry in its own name without being the actual owner. See [19 CFR 141.19](https://customsbrokerlicenseexam.com/ref/#cfr/141.19).

**Power of attorney.** The authority a client gives a broker to act for it. See [19 CFR Part 141, Subpart C](https://customsbrokerlicenseexam.com/ref/#cfr/141).

**Prior disclosure.** A voluntary report of a violation before CBP starts an investigation, which lowers the penalty. See [19 CFR 162.74](https://customsbrokerlicenseexam.com/ref/#cfr/162.74).

**Protest.** The way to challenge a CBP decision such as a liquidation. For entries made on or after December 18, 2004, file within 180 days ([19 CFR 174.12(e)](https://customsbrokerlicenseexam.com/ref/#cfr/174.12/e)).

**Quota.** A limit on the quantity of goods that may enter at a rate or at all in a period. Tariff-rate quotas set a lower rate up to a quantity. See [19 CFR Part 132](https://customsbrokerlicenseexam.com/ref/#cfr/132).

**Reconciliation.** A way to file an entry with some elements, such as value, flagged as still to be finalized. Described in the ACE BRPD.

**Ruling.** A written CBP decision on how the law applies to a set of facts, such as a classification. See [19 CFR Part 177](https://customsbrokerlicenseexam.com/ref/#cfr/177).

**Special program indicator (SPI).** The symbol in the Special rate column that names a trade program, such as A for GSP or S for USMCA. The General Notes define each one.

**Transaction value.** The main valuation method: the price actually paid or payable, plus certain additions. See [19 CFR 152.103](https://customsbrokerlicenseexam.com/ref/#cfr/152.103).

**Triennial status report.** The report every broker files with CBP on February 1 of each third year after 1985 ([19 CFR 111.30(d)](https://customsbrokerlicenseexam.com/ref/#cfr/111.30/d-1)).

Source: https://customsbrokerlicenseexam.com/glossary/ (updated 2026-11-14)