What is customs clearance?
Customs clearance is a procedure that must be followed during the import and export of goods. It is worth noting that import clearance requirements may vary depending on the type of goods, the country of origin, and contractual obligations between countries. Customs clearance involves multiple steps, including submitting the necessary documents, paying customs duties, and complying with relevant regulations. For companies, understanding and complying with customs policies and reasonably planning the logistics and customs clearance process are the keys to ensuring smooth customs clearance and improving trade efficiency.
What is a customs broker?
A customs broker is a professional agent authorized by the government to handle customs clearance on behalf of an importer or exporter. They are responsible for preparing and submitting all necessary documents to ensure that the goods pass through customs smoothly.
Although there is no legal requirement to use a customs broker to clear goods,why not? A customs broker can effectively speed up the customs clearance process and reduce additional costs incurred by delays in customs clearance.
How can a customs broker simplify the customs clearance process?
Using a customs broker can significantly simplify the customs clearance process and reduce delays and additional costs. Here are their primary roles:
Document preparation and submission
- Ensure that all import and export documents, such as commercial invoices, bills of lading, packing lists, etc., are complete.
- Avoid customs detention or delayed customs clearance due to incorrect or missing documents.
Tariff and tax calculation
- Ensure goods are correctly classified and assigned the appropriate Harmonized System Code (HS Code) to calculate accurate duties and taxes.
- Avoid hefty fines or additional taxes due to incorrect declarations.
Customs compliance and regulatory interpretation
- Understand customs regulations and policies in each country to ensure goods meet import/export requirements.
- Handle goods involving licenses, quarantine, and unique regulatory requirements to reduce risks caused by compliance issues.
Speed up customs clearance
- Communicate directly with customs through electronic filing systems (such as ACE, ABI, CARM, etc.) to speed up customs clearance.
- Pre-screen documents in advance to reduce the possibility of customs inspections and delays.
Solve unexpected problems
- Handle unexpected situations such as customs inspections and cargo seizures and provide timely and professional solutions to prevent unnecessary cost increases.
- Represent the importer/exporter in negotiations with customs to ensure that goods are released as quickly as possible.
Global logistics and compliance advice
- Provide professional trade compliance advice based on the import and export policies of different countries.
- Help companies reduce costs and improve supply chain efficiency by optimizing the customs clearance process.
How long does customs clearance take?
The standard customs clearance time is generally 24 hours, but it may take a few days to a few weeks due to factors such as the type of goods, customs inspections, tax payment, holidays, etc.
Accurate declaration, choosing a reliable customs agent, and paying customs duties in advance are the keys to speeding up customs clearance.
If customs clearance exceeds the time limit, contact the logistics company or customs immediately to avoid even longer delays.
If you want your goods to be cleared faster, we recommend planning, preparing the documents in advance, and choosing the proper logistics method!
What documents are required for customs clearance
When clearing customs, importers need to prepare and submit a series of necessary documents to ensure that the goods pass customs inspection smoothly. Otherwise, the goods may be detained or held back in full. The following are the documents required for import and export customs clearance, as well as additional documents that may be required.
Commercial Invoice
Provides sufficient information to customs to determine whether the goods are allowed to be imported and to calculate customs duties. It includes detailed information such as the quantity of goods, country of origin, value, place of purchase, etc.
Packing List
Provided by the shipper or freight forwarder, it contains the information in the commercial invoice and does not require customs inspection to confirm the shipment of goods.
Certificate of Origin (CO)
states the country of origin of goods, affects import growth rates, and may be subject to trade agreements
Bill of Lading (BOL)
a legal document issued by the carrier to the shipper detailing the goods, serving as proof of invoice, contract of carriage, and delivery
Air Waybill (AWB)
for air freight, allows for tracking of goods, and serves as the carrier’s
ISF 10+2 (Importer Security Filing)
For Sea Freight, to be completed 24 hours before departure
Arrival Notice
Provided by the agent or carrier to notify the consignee that the goods have arrived or are expected to arrive
Delivery Order (D/O)
Issued by the carrier or shipper after customs clearance of the goods, it instructs that the goods be delivered to the final consignee, which is the final starting point of the goods transportation cycle.
Steps and processes of customs clearance
Customs clearance is a key part of international trade and mainly involves steps such as goods declaration, inspection, tax payment, and release. The following is the standard customs clearance process, which needs to be strictly followed for both imports and exports.
Step 1: Document preparation
Each document serves a specific purpose, including transaction details and providing information about the goods to facilitate the assessment of duties, collection of statistics, and ensuring compliance with regulatory requirements. Documents include commercial invoices, packing lists, bills of lading, customs and arrival notices. The accurate and timely submission of documents is critical to customs clearance; otherwise, it may result in the entire deduction of the payment.
Step 2: Payment of fees
The importer is responsible for paying duties and taxes. CBP assesses the duty status of goods based on the documentation submitted, including the value, quantity, composition, country of origin, and any applicable free trade tariffs. In addition, there is a merchandise processing fee (MPF) and a harbour maintenance fee (HMF), among other fees.
Step 3: Cargo inspection
CBP inspects the goods to ensure compliance with general regulations and specific commodity-specific legal requirements. The scope of the inspection can range from basic to in-depth, focusing on declared values, product labelling requirements, etc. Although rigorous inspections are not visible, they are essential for specific commodities and origins to help ensure safety and compliance with the regulatory standards of various US agencies. Importers should understand the inspection process in advance to avoid disruptions.
Step 4: Cargo release
Once CBP has released the goods, they are officially admitted into the US market, provided all duties and taxes have been paid and all regulations have been met. The goods can be delivered to the importer, customs broker or other authorized agent. At this point, the customs clearance process is complete, and the goods can be transported to the distribution centre or delivered directly to the customer.
How to Avoid Customs Delays: Top Tricks and Tips
Customs clearance delays can lead to additional costs and longer transit times, but they can be effectively reduced through proper planning and compliant operations. Here are some key tips and tricks to help you clear customs smoothly.
- Prepare and provide accurate shipping documents.
- Make sure that your documents and cargo comply with all import regulations.
- Declare all sensitive or dangerous goods before they arrive.
- Submit your documentation through the Electronic Data Interchange (EDI) portal.
- Make allowances for longer wait times if you’re importing cargo during peak seasons and plan accordingly.
- Pay attention to new customs requirements and import regulations.
- Hire an experienced customs clearance or freight forwarding professional to handle your cargo imports.
