Customs clearance is a major problem that plagues many businesses. For many newcomers to international shipping, the process is always felt to be cumbersome, and the clearance time is relatively long. This article will help you understand how to avoid delays at the port of entry and enjoy a smooth and stress-free customs clearance process.
What Does Customs Clearance Completed Mean?
Customs clearance is completed when the goods have successfully passed customs audits and inspections, met all import or export requirements, and been allowed to enter the target country or transported to their final destination.
After clearance, the importer or consignee can officially collect the goods, and the logistics will continue. In general, this means that.
- All necessary documents (e.g., commercial invoice, bill of lading, certificate of origin, etc.) have been submitted and approved.
- Import taxes and duties have been paid (if applicable).
- Customs has completed its inspection of the goods (e.g. checks, product compliance audits, etc.).
- The goods have been released and can be handed over in final lots by the carrier or logistics company.
Once customs clearance has been completed, the goods can be released for market access or delivered to the end buyer and are, therefore, no longer subject to customs supervision.
Guide to the customs clearance
Here is a step-by-step guide to help you ensure smooth customs clearance.
1. Collect the required documents
The first thing to do to prepare for customs clearance is to collect the documents required for import customs clearance! This involves obtaining a commercial invoice from the supplier listing all the costs, as well as a bill of lading or shipping documents to prove ownership of the goods during transportation.
A packing list must be prepared, and if a preferential trade agreement applies, a certificate of origin is required. By correctly completing the customs declaration form and thoroughly preparing all documents, the customs clearance process will be smoother, and any delays or potential problems with importing goods will be avoided.
2. Acceptance of customs inspection and supervision
Customs inspection and supervision are essential parts of customs clearance for imported goods. Inspection involves examining goods to ensure they comply with customs declarations and regulations. It also includes a careful examination of the documents submitted for customs clearance. These procedures are designed to prevent fraud, ensure border security, and ensure compliance with customs laws.
3. Payment of duties and taxes
Payment of duties and taxes is an essential step in the import process. Once the goods have been declared to customs and the amount of duty has been determined, the importer must pay the duties and taxes to the customs authorities of the importing country. Duties are taxes levied on the customs value of goods, which varies according to the goods’ tariff classification.
4. Customs release of goods
The customs authorities will release your goods once all fees and taxes have been settled. You must pay them (usually by transfer) to release your goods. The amount depends on the origin, nature and value of the products. Once this has been settled, you will receive final authorization, and your goods can continue to be transported.
Customs clearance stakeholder
Let us take a closer look at all the players involved in customs clearance, or rather, those who play a role in this mandatory stage specific to transportation.
Importer/exporter
They are responsible for providing accurate information and complying with customs regulations. Any errors in the declaration may result in delays or penalties, and of course, everyone wants to avoid this.
Customs broker
A professional is authorized and licensed by the government. His expertise allows him to speed up the process and minimize potential errors.
Customs
Customs authorities are responsible for verifying that the declaration complies with the regulations and collecting customs duties. Therefore, they play a central role in controlling international trade.
Freight forwarder
A freight forwarder is a company that specializes in arranging the transport of goods on behalf of a principal, providing supply chain services such as sea freight, air freight, inland transportation, documentation preparation, logistics, consolidation and devanning of goods, insurance, and customs compliance.
The benefits of successful customs clearance
Good customs management ensures that your goods are cleared smoothly and brings tangible benefits that directly affect your business operations.
Reduce delays
Smooth customs clearance saves time at every stage. Anticipating the required documents, selecting the appropriate procedure and avoiding declaration errors are all factors that reduce delays in customs clearance. Your goods will reach their destination more quickly, which is beneficial for meeting commitments and keeping your customers happy.
Secure business communication
After successful customs clearance, your goods can legally and compliantly cross borders. You reduce the risk of seizures, fines or disputes related to customs regulations. By mastering this process, you also ensure transparency and traceability of your business transactions.
Compliance with customs regulations
Finally, compliance with customs rules helps to avoid penalties and safeguard your reputation. Being well prepared for customs clearance is essential to meet legal requirements related to customs duties, import taxes or product-specific standards. By remaining compliant, you ensure the sustainability of your international activities.
Why use a customs broker?
- Professional and efficient: A professional customs team is familiar with customs procedures and can quickly complete customs clearance procedures.
- Avoid mistakes and fines: Customs clearance mistakes can lead to goods being held up or even fines, and a professional agent can reduce risks.
- Save time and costs: Reduce the time the company invests in customs clearance, allow goods to pass through customs quickly, and reduce logistics costs.
- International trade compliance: Ensure that goods comply with the regulatory requirements of the importing country and avoid trade stagnation and legal issues.
If your company frequently engages in international trade, using a professional customs broker can ensure that your goods are faster, safer, and more precise and improve trade efficiency!
Customs clearance notes & tips
✅ Prepare customs clearance documents in advance: Ensure that all information (product name, quantity, value, HS code, etc.) is consistent to avoid delays or fines due to discrepancies.
✅ Choose a reliable customs broker: A professional customs broker can provide comprehensive support to help avoid problems such as incorrect declarations, improper tax calculations or missing documents and improve customs clearance efficiency.
✅ Understand the importing country’s regulations: Customs requirements vary from country to country. You need to check in advance whether unique documents (such as FDA, CE certification, COC certificate of conformity, etc.) are required to avoid being detained by customs due to a lack of necessary documents.
✅ Check the trade terms (Incoterms): Clarify the impact of trade terms such as DDP, DAP, FOB, and CIF on taxes, fees, and responsibilities to ensure a transparent allocation of responsibilities between the two parties and avoid additional costs or disputes.
✅ Avoid misdeclaring sensitive goods, such as chemicals, food, pharmaceuticals, electronic products, etc. You need to confirm in advance whether they are restricted or regulated goods and ensure that the necessary test reports or licenses are provided to avoid having customs clearance blocked.
✅ Plan logistics and timeliness reasonably: Customs clearance in some countries takes a long time, so you need to arrange the logistics reasonably to avoid delays affecting the supply chain or incurring additional storage costs.
✅ Pay attention to customs duties and value-added tax (VAT): Understand the importing country’s tax policies in advance, calculate the estimated customs duties and VAT costs, and avoid exceeding the budget.
✅ Properly retain customs clearance documents: including customs declarations, commercial invoices, bills of lading, etc., in case of a possible subsequent tax audit or customer request for proof.
