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Carbon Border Adjustment Mechanism (CBAM)
The European Union’s mechanism that charges imports of iron and steel, aluminium, cement, fertilisers, hydrogen and electricity for the carbon emissions embedded in their production, at a price linked to the EU ETS. The 2023–2025 transitional phase required reporting only; from 2026 authorised declarants must buy CBAM certificates. Suppliers selling these products into the EU now need verified installation-level emissions data to stay competitive.
Certificate of origin and preferential origin proofs (EUR.1, A.TR, Form A) C/O
A document showing the country in which goods were produced or obtained, usually certified by a chamber of commerce. Non-preferential certificates serve anti-dumping, quota and import-ban rules; preferential proofs give reduced or zero duty under free trade agreements – the A.TR movement certificate for industrial goods between the EU and Türkiye, EUR.1 or an origin declaration on the invoice where origin rules are met, Form D in ASEAN, Form E under China’s agreements, and so on. Origin rules vary by product, and false documents bring large duty differences and penalties.
Commercial invoice
The final sales document issued by the seller after shipment, stating the description of goods, HS code, quantity, unit and total price, Incoterm, payment terms, origin and the parties’ details. It is the basis for customs valuation, duties and letter-of-credit payment; under a credit the description of goods must match the credit exactly. Unlike a proforma invoice, it records the actual sale and the amount due.
Customs broker
A licensed specialist who prepares customs declarations on behalf of importers and exporters, declares the classification (HS code), value and origin of goods, calculates duties and deals with the customs authorities. In many countries brokers are licensed by the customs administration and share responsibility for the accuracy of declarations. A good broker saves money through regimes such as inward processing, bonded warehousing, preferential origin and anti-dumping planning.
Customs valuation (transaction value)
The value on which duty is calculated. Under the WTO Customs Valuation Agreement the primary basis is the price actually paid or payable (transaction value). Most countries, including the EU and Türkiye, add freight and insurance up to the point of entry (CIF basis), while some, such as the USA, use a FOB basis. Commissions, royalties and buyer-supplied assists such as moulds may also be added. If under-invoicing between related parties is found, customs applies other methods and penalties.