Part 1. Definition of Terms

Customs and Trade Terminology

• Abatement: Refers to the reduction or elimination of duties and taxes on goods when payment has not been made.

• Actual or Outright Exportation: A customs procedure for goods in free circulation that leave the Philippine territory, intended to remain outside permanently.

• Admission: The act of bringing imported goods into a free zone, either directly or through transit.

• Airway Bill (AWB): A critical transport document for airfreight that:

  • Identifies the holder or consignee with rights to claim the goods.
  • Serves as a contract of carriage detailing carrier conditions, including liability limits and claims procedures.
  • Includes transport instructions, a description of the goods, and applicable transportation charges.

• Appeal: A process for individuals aggrieved by actions or decisions from the Bureau to seek redress from the Bureau, Secretary of Finance, or a competent court.

• Assessment: The method for determining the duties, taxes, and other charges applicable to imported and exported goods.

• Authorized Economic Operator (ABO): Entities accredited by the Bureau based on international trade frameworks, which include:

  • Importers, exporters, customs brokers, freight forwarders, and transport providers.
  • Promotes trade facilitation and secure movement of goods across borders, aligned with best practices and modern risk management.

Key Customs and Trade Terms

• Abatement: Reduction of duties and taxes partially or fully when payment has not yet been made.

• Actual or Outright Exportation: Customs procedure for goods that leave Philippine territory permanently and are in free circulation.

• Admission: Process of bringing imported goods into a free zone, either directly or in transit.

• Airway Bill (AWB):

  • Transport document for airfreight specifying the holder or consignee.
  • Rights include delivery claims at the destination port.
  • Serves as a contract of carriage detailing carrier conditions, liability limits, and claims procedures.
  • Contains instructions for transport, goods description, and the associated transportation charges.

• Appeal: Legal remedy for individuals aggrieved by actions or decisions of the Bureau, directed towards the Bureau itself, Secretary of Finance, or a competent court.

• Assessment: Process for determining applicable duties, taxes, and other charges on imported and exported goods.

• Authorized Economic Operator (ABO):

  • Entities like importers, exporters, customs brokers, and transport providers accredited by the Bureau.
  • Recognized under international standards to facilitate secure global trade and promote smooth goods movement across borders using risk management and modern technology.

• Bill of Lading (B/L):

  • Transport document for maritime freight issued by carriers or freight forwarders.
  • Grants holder rights to claim goods at destination.
  • Functions as a contract of carriage that includes transportation instructions, goods descriptions, and applicable charges; also details liability limits and claims procedures.

• Carrier: Entity responsible for the actual transportation of goods, including airlines, shipping lines, freight forwarders, and other transport operators.

• Clearance: Completion of necessary customs and governmental processes for goods to either enter for consumption, be warehoused, transit, or export under other customs procedures.

Test your knowledge on essential customs and trade terminology. This quiz covers definitions and concepts essential for understanding customs procedures and trade documents, including terms like abatement, airway bill, and assessment. Perfect for students and professionals in trade and logistics.