Key terms and their definitions

  • Section 321 = Also known as the de minimis provision, allows qualifying shipments valued at $800 or less to enter the U.S. duty-free and tax-free.
  • Tariffs = Duties paid on items when shipping to the U.S. 
  • DDU = Delivery Duties Unpaid: The customer/recipient pays for duties/tariffs
  • DDP= Delivery Duties Paid: Seller pays for duties/tariffs
  • COO= Country of Origin
    • The country where the item is made/manufactured. This does not refer to where the item is being shipped from. All shipments MUST have MADE IN COUNTRY on the item itself and cannot be handwritten. The COO must also be provided on the platform when creating your shipment. Learn more about COO
  • HTS Code= Harmonized Tariff Schedule code, is a 10-digit number used to classify imported goods in the United States. It's a crucial tool for determining applicable tariffs, fees, and regulations for imported items.
  • Manufacturer Information = Refers to the details of your product’s manufacturer - where it was made/manufactured. Understand more about manufacturer information here 
  • Ad Valorem Duty Rate = A tax that is a percentage of the item’s value, not a fixed amount. The phrase "ad valorem" is Latin for "according to value." 
  • IEEPA International Emergency Economic Powers Act = An IEEPA tariff is a special kind of trade tariff (import tax) that the U.S. government can impose under emergency powers, using a law called the International Emergency Economic Powers Act (IEEPA)
  • CUSMA, also known as the Canada-United States-Mexico Agreement, is a free trade agreement that replaced NAFTA in July 2020
    • CUSMA provides preferential, duty-free treatment on specific goods that meet the rules of origin, determining the extent of North American production required for a product to be considered