FTA knowledge

This table provides a comprehensive list of terms and abbreviations related to Free Trade Agreements (FTA). These terms and abbreviations are useful for understanding FTA rules and procedures and for applying them in practice.

Abbreviation	Meaning	Explanation
ACU	Accumulation	A provision that allows originating materials from one FTA country to be considered as originating in another FTA country.
AP	Approved Exporter	An exporter authorized by customs authorities to certify the origin of their goods themselves.
AV	Adjusted Value	The value of a product after adjustments for certain factors.
BD	Build-Down Method	A method to calculate regional value content by subtracting the value of non-originating materials from the total value of the product.
BOM	Bill of Materials	A comprehensive list of raw materials, components, and assemblies required to build a product.
BU	Build-Up Method	A method to calculate regional value content by adding the value of originating materials.
BTA	Bilateral Trade Agreement	An agreement between two countries to facilitate trade and reduce trade barriers.
CC	Change in Chapter	A change at the chapter level of the HS code.
CI	Customs Invoice	An invoice used for customs declaration that details the goods being exported.
CIF	Cost, Insurance, and Freight	The cost of goods including insurance and freight to the destination port.
COO	Certificate of Origin	A document certifying the origin of a product.
CTC	Change in Tariff Classification	A change in the tariff classification of a product.
CTH	Change in Tariff Heading	A change at the heading level of the HS code.
CTSH	Change in Tariff Sub Heading	A change at the subheading level of the HS code.
CVD	Countervailing Duties	Additional duties imposed on imported goods to offset subsidies provided to producers or exporters in the exporting country.
DVC	Domestic Value Content	The percentage of a product’s value that comes from domestic sources.
EPA	Economic Partnership Agreement	A type of trade agreement that involves not only tariff elimination but also cooperation in a wide range of areas such as investment and development.
EXW	Ex-Works Price	The price of goods at the point of origin, excluding shipping costs.
EPE	Export Processing Enterprises	Enterprises established and operating in export processing zones.
FOC	Free On Board	The cost of goods loaded onto a shipping vessel, excluding shipping costs.
FOB	Free On Board	The price of goods including transport costs to the point of shipment.
FTA	Free Trade Agreement	An agreement to reduce or eliminate trade barriers between countries.
FTZ	Free Trade Zone	A designated area within a country where goods can be imported, manufactured, and re-exported without the intervention of customs authorities.
GSP	Generalized System of Preferences	A preferential tariff system for developing countries.
HS	Harmonised System	A standardized system of names and numbers to classify traded products.
LDC	Least Developed Countries	Countries that are the least developed in terms of socioeconomic indicators.
MaxNom	Maximum Non-Originating Materials	The maximum percentage of non-originating materials allowed in a product.
MCS	Manufacturing Cost Statement	A statement detailing the costs involved in manufacturing a product.
MFN	Most Favored Nation	A status that ensures a country will not be treated less favorably than another country.
MP	Materials Produced	Materials that are produced within the FTA region.
NC	Net Cost of the Good	The total cost of the product excluding profit and other costs.
NOM	Non-Originating Materials	Materials that do not qualify as originating under the FTA.
NOC	Net Cost Method	A method to calculate the origin of a product based on net cost.
PE	Produced Exclusively	Products that are produced exclusively from originating materials.
PSR	Product Specific Rules	Rules that apply to specific products under an FTA.
PTA	Preferential Trade Agreement	An agreement to reduce tariffs for certain products between countries.
QVC	Qualifying Value Content	The value added through processing that meets the qualifying criteria for origin.
ROO	Rules of Origin	Criteria used to determine the national source of a product.
REX	Registered Exporter System	A system of certification of origin of goods that allows for self-certification by exporters registered in the system.
RVC	Regional Value Content	The percentage of a product’s value that must originate from a specific region.
SP	Specific Manufacturing	Specific manufacturing or processing operations that confer originating status on a product.
SPS	Sanitary and Phytosanitary Measures	Measures to protect humans, animals, and plants from diseases, pests, or contaminants.
TBT	Technical Barriers to Trade	Regulations and standards that act as barriers to trade.
TCI	Third Country Invoicing	Invoicing for goods shipped from a country other than the country of origin.
TRQ	Tariff Rate Quota	A system that allows a set quantity of specific products to be imported at a lower tariff.
VA	Value Added	The amount by which the value of an article is increased at each stage of its production.
VNM	Value of Non-Originating Materials	The value of materials that do not originate from the FTA region.
VOM	Value of Materials	The value of materials used in the production of a product.
VPM	Value of Processing	The value added through processing operations.
WO	Wholly Obtained	Products that are entirely sourced from the FTA region.