Definitions of key trade terminology and concepts
The cost of freight, insurance, and other charges incurred in bringing imported goods from the foreign port to the U.S. port of entry. Charges = CIF value minus customs value.
A trade term where the price includes the cost of the goods plus insurance and freight charges to the destination port. CIF value is typically 3-10% higher than FOB. Some countries report imports at CIF value; the U.S. uses customs value (similar to FOB) as the primary import valuation.
The country where goods were manufactured, produced, or substantially transformed. Country of origin determines applicable tariff rates, trade agreement eligibility, and marking requirements.
A geographic area served by a U.S. Customs and Border Protection port director. The U.S. has approximately 45 customs districts, each covering multiple ports of entry. Districts aggregate trade data for regional analysis.
The value declared to U.S. Customs for imported goods, generally equivalent to the transaction value (price paid or payable) at the foreign port of export. Does not include international freight, insurance, or U.S. import duties.
The portion of imported goods subject to customs duties. Not all imports are dutiable — goods entering under trade agreements (USMCA, GSP) or in foreign trade zones may be exempt.
The actual tax amount collected on imported goods based on the applicable tariff rate. Calculated duties = tariff rate x dutiable value. Some goods enter duty-free under trade agreements or preferences.
The ratio of duties collected to the value of imports, expressed as a percentage. Unlike the statutory tariff rate, the effective rate accounts for duty-free imports, trade preferences, and exemptions — showing what importers actually pay on average.
A Census Bureau classification system that groups imports and exports by their final use category (e.g., capital goods, consumer goods, industrial supplies). Useful for understanding the economic purpose of trade flows.
A Census Bureau classification grouping certain advanced-technology goods across multiple HS chapters into a single category — biotechnology, life sciences, optoelectronics, information & communications, electronics, flexible manufacturing, advanced materials, aerospace, weapons, and nuclear technology. Useful for tracking high-value technology trade flows. Note: HiTech overlaps with HS Chapter 85 (electrical machinery); summing the two double-counts.
The first 2 digits of an HS code, representing the broadest product category. There are 99 chapters covering all traded goods — for example, Chapter 09 is Coffee/Tea/Spices and Chapter 84 is Machinery.
A standardized international numerical system developed by the World Customs Organization (WCO) to classify traded products. The first 6 digits are universal across countries. The U.S. uses 10-digit HTS codes for imports and Schedule B codes for exports, both built on the HS foundation.
The first 4 digits of an HS code, providing more specific product classification within a chapter. For example, heading 0901 under Chapter 09 covers coffee specifically.
The U.S. Harmonized Tariff Schedule code — a 10-digit extension of the international HS code used specifically for classifying imports into the United States. HTS codes determine the applicable tariff rate for each product.
North American Industry Classification System — a 6-digit code used by the U.S., Canada, and Mexico to classify businesses by industry. Trade data classified by NAICS shows imports and exports by the industry that produces or consumes the goods.
A classification term used in trade codes to capture products that don't fit into more specific categories within a heading. Common in HS and HTS codes as a catch-all subcategory.
A 10-digit classification code used by U.S. exporters to report goods shipped out of the United States. Based on the international HS system but maintained by the Census Bureau for export statistics.
Standard International Trade Classification — a classification system maintained by the United Nations for international trade statistics. SITC groups products by the stage of production and material, making it useful for economic analysis.
A tax imposed by a government on imported goods. Tariffs can be ad valorem (percentage of value), specific (fixed amount per unit), or compound (combination). The U.S. tariff schedule is defined by HTS codes.
The difference between a country's exports and imports over a period. Trade balance = exports − imports. A positive balance is a surplus; negative is a deficit.
When a country imports more goods and services than it exports. The U.S. has run a goods trade deficit since the 1970s. A deficit is not inherently negative — it can reflect strong consumer demand and a growing economy.
When a country exports more goods and services than it imports. The U.S. runs a trade surplus in services (financial, technology, consulting) even while running a goods deficit.
The percentage change in a trade metric compared to the same month in the previous year. YoY comparisons eliminate seasonal effects, providing a clearer picture of underlying trends.
The cumulative total of a trade metric from January through the current month. YTD values smooth out monthly volatility and are useful for comparing partial-year performance across periods.