Glossary

Customs compliance entails adhering to the trade regulations of the countries involved in your export and import activities. Compliance involves understanding and complying with the laws, regulations, and procedures established by national governments and multinational authorities to govern international trade.

Delivered Duty Paid signifies that the seller fulfills their obligation to deliver when the goods are prepared at the designated location in the importing country. The seller bears the risks and incurs the expenses, including duties, taxes, and additional charges, for delivering the goods to that location, cleared for importation.

Delivered Duty Unpaid or DDU is an arrangement in which the seller assumes all responsibilities and risks related to delivering goods to a specified destination. Upon the arrival of the goods, the buyer takes on the responsibility of paying import duties and any additional transportation costs.

A tax imposed by a government on goods and services that are either imported or exported is known as a customs duty or tariff.

An Export Control Classification Number (ECCN) is an alphanumeric code used in the Commerce Control List to classify items for export control. The ECCN is used to identify items based on their characteristics, including the type of commodity, technology, or software, as well as their specific technical parameters, for export control.

An export transaction refers to the sale and transfer of goods or services from a seller located in one country to a buyer situated in a foreign country. This process typically involves international trade and includes the crossing of national borders.

In the context of exports, EOR (Exporter of Record) refers to the individual or legal entity responsible for obtaining accurate documentation and ensuring compliance with legal regulations for exporting goods out of a country.

A term used to describe brands that are being distributed and sold exclusively by Amazon on its platform is “Amazon Exclusive Brands” or “Amazon Private Label Brands”.

Trade regulation is a legal field, often linked with antitrust law, that involves government supervision of unfair competition practices and deceptive business tactics.

A treaty, such as FTAA or NAFTA, between two or more countries to establish a free trade area allows for the exchange of goods and services across their shared borders without tariffs or hindrances. However, unlike a common market, the movement of capital or labor may not be unrestricted. Member countries usually impose a uniform tariff, referred to as a common external tariff, on trade with non-member countries.

Global Trade Compliance is a component of corporate compliance that ensures all import and export transactions align with the laws and regulations of the respective countries involved.

Import taxes are tariffs imposed on goods and services brought into a country by its customs authorities, to generate state revenues.

Fulfillment by Merchant (FBM) is a method in which sellers independently handle the storage, picking, packing, shipping, and customer service for buyers who make online purchases of their products on an Amazon store. This approach usually results in lower fees for the sellers from Amazon.

A fulfillment center is a large warehouse where products are stored, prepared, and shipped. It serves the purpose of managing logistics on behalf of Amazon and its third-party sellers.

A freight forwarder (FF) is an intermediary responsible for coordinating transportation and preparing the required documentation for the movement of goods.

Fulfillment by Amazon (FBA) is a fantastic service Amazon provides, enabling third-party sellers like myself to keep our products in Amazon’s fulfillment centers. Once a sale happens, Amazon takes charge of choosing, packing, shipping, and handling customer service duties on my behalf.

Amazon Multi-Country Inventory (MCI) is a service provided to sellers on Amazon’s Fulfillment by Amazon (FBA) platform in the European Union (EU). MCI enables merchants or sellers to choose specific countries to dispatch their products, and Amazon warehouses fulfill subsequent orders locally in those selected countries.

A Non-resident Importer (NRI) in Canada is similar to an Importer of Record (IOR) and refers to the entity responsible for the importation of goods. The NRI is responsible for clearing the goods and ensuring the accurate completion and filing of all compliance documents, particularly applicable to entities located outside of Canada.

An Importer of Record, commonly known as IOR, offers a service for cases when a company brings goods into a country where it lacks representation. The IOR ensures the assets remain the property of the exporter, shipper, or origin company.

Logistics is the process of managing the physical movement of goods throughout the supply chain, facilitating their transportation from one location to another.

The term for this capability is “Third-Party Import.” Essentially, it involves the customs clearance of imported goods facilitated by a designated trustee, such as Folks Group. This trustee legally represents the purchaser, enabling them to handle all legal aspects of the international transaction.

A 3PL (third-party logistics) provider offers outsourced logistics services, encompassing the management of one or more aspects of procurement and fulfillment activities. In the business context, 3PL has a broad meaning that applies to any service contract involving the storage or shipping of items.

A supply chain is a network of companies and individuals involved in the production and delivery of a product or service. Key components of a supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers.

Supply chain compliance involves companies adhering to applicable laws, regulations, and industry standards throughout their supply chain operations. It encompasses ensuring that every aspect of the supply chain, from sourcing raw materials to delivering finished products or services to customers, meets the required legal and ethical standards.

Amazon Multi-Country Inventory (MCI) is a service provided to sellers on Amazon’s Fulfillment by Amazon (FBA) platform in the European Union (EU). MCI enables merchants or sellers to choose specific countries to dispatch their products, and Amazon warehouses fulfill subsequent orders locally in those selected countries.

A Non-resident Importer (NRI) in Canada is similar to an Importer of Record (IOR) and refers to the entity responsible for the importation of goods. The NRI is responsible for clearing the goods and ensuring the accurate completion and filing of all compliance documents, particularly applicable to entities located outside of Canada.

A term used to describe merchants not affiliated with the “owners” of an e-commerce platform is “third-party sellers” or “3P sellers.” For instance, on Amazon, 3P sellers are those who engage in either FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant).

Value-added Tax (VAT) or Sales Tax is a type of consumption tax levied on the acquisition of goods or services and other items classified as “taxable supplies”.

VAT compliance involves the steps of identifying, documenting, reporting, and meeting obligations for businesses in countries with a VAT system. This process includes interactions not just with tax authorities but also encompasses all participants in the economic chain, reaching up to the final consumer.