Customs Clearance Guide for Shippers

Customs clearance guidelines for shippers have always been one of the most sensitive aspects of the export process. Therefore, if you are a business owner, regardless of the scale, it is essential to know about the customs clearance process because even a minor mistake can lead to penalties and fines. If a problem occurs during the clearance stage, whether the goods are shipped by air or sea, all previous stages are affected, which can cause the shipment to remain in customs for days or even weeks. In today’s international trade, where speed and accuracy are of the utmost importance, the shipper must know exactly what steps are ahead and how to get the goods to the final destination safely and without any hassle. This article explains every detail you need to know about customs clearance, including the steps of the process, the required documents, and everything you need to know about the HS code, so that you can have a smooth shipment.

Why is Customs Clearance important for Shippers?

When a product arrives at the destination country, it is only allowed to enter or distribute if the documents, value of the goods, type of product, standards, and legal regulations have been approved. This stage is known as clearance, and if it is not managed well, several problems may occur. Below is a list of potential issues:

• Long delays in customs
• Additional warehousing costs
• Legal penalties
• Reduced buyer satisfaction
• Damage to the exporter’s reputation in the destination market

For this reason, companies that export professionally usually have a detailed plan for this stage.

Step-by-Step Customs Clearance Process at the destination

Although customs laws vary from country to country, in practice, most of the processes are very similar. Here is a list of the common steps:

• Goods Arrival Registration

As soon as the shipment arrives, its information is registered in the customs system, and a warehouse receipt is issued. This official document shows that the goods have entered the customs area.

• Document Control During the Clearance

Customs officers check the bill of lading, invoice, packing list, and other documents. Any small discrepancy between these documents can cause penalties and even the goods being stopped.

• How Value and Tariff Are Determined by the HS Code

Each commodity has a global code that indicates its tariff and legal clearance procedures. Misidentification of this code is one of the common reasons for delays in clearance. Thereby, it is essential for shippers to have a comprehensive understanding of the HS codes. 

• How Shippers Pay Customs Fees During Clearance 

At this stage, taxes, duties, and other customs fees must be paid. 

• What Happens During Customs Inspection of goods

Goods inspection can be carried out manually or with scanning devices, which depends on the type and volume of the goods. 

• Customs Exit Permit Issuance at the Destination

If everything goes according to the laws and the destination customs regulations, an exit permit is issued without any issues, and the goods can be cleared.

Required Documents for Customs Clearance of Shipments

To have a smooth and hassle-free clearance, all the required documents must be provided, as even one small mistake can cause problems. Some of the most important documents include:

• Bill of lading

A document that specifies shipping information, weight, and route.

• Commercial Invoice

An invoice is what shows the actual value of the products and is the basis for calculating duties and taxes.

• Packing List

A packing list is a document that usually includes the number of packages, weights, dimensions, and contents of each package.

• Certificate of Origin

A certificate of origin shows in which country the goods were produced and can have an impact on determining the tariff.

• Additional Permits and Licenses

Some goods may require additional licenses beyond the main export and import licence, including health and safety certifications. Besides that, some restricted goods may need specific approvals from the authorities.

Who Manges Customs Clearance for Shippers?

Customs clearance can be carried out by different parties, from the owner of the goods, the legal representative, the forwarding company, or the professional clearance worker. It is worth mentioning that in many cases, entrusting this step to specialists will prevent administrative hassles and reduce unexpected costs. At this stage, experience plays a key role, leading to an effortless process. 

How Is Customs Clearance Cost Calculated?

The final cost of customs clearance depends on many factors. However, having an estimate before shipment helps the exporter avoid financial surprises. Here is a list of the factors.

• Value of the goods
• Tariff determined by the HS Code
• Warehousing costs
• Cost of customs clearance services
• Type of goods and the level of inspection sensitivity

The Role of Air Freight in Faster Customs Clearance 

Many exporters choose air freight when time is of the essence, and this type of transport is usually used for industrial parts, medical equipment, and high-value goods. Air cargo clearance is faster than other methods in many countries because of the following reasons.

• The information is sent before the goods arrive
• The warehousing process is shorter
• Security control is often more digital

The Most Common Reasons for Delays in Customs Clearance

Here is a list of the reasons that, in many cases, have repeatedly caused goods to stop at their destination. Preventing these errors is more important than trying to correct them at customs.

• Entering the wrong HS Code
• Discrepancy between the invoice and the bill of lading
• Lack of necessary permits
• Incomplete packing list
• Unrealistic valuation
• Late submission of documents
• Choosing an incompetent carrier
• Failure to coordinate the customs conditions of the destination
• Unsafe packaging
• Failure to pay fees on time

This is why many exporters use forwarding companies, as an experienced and reliable forwarding company knows how to prepare the documentation upfront. Besides that, these types of companies understand the importance of selecting a suitable shipping route (Air, Land, Sea). Another important aspect of a forwarding company’s responsibility is its coordination with customs, informing the owner of goods of potential problems in advance, and always tracking the status of the shipment to keep the owner og goods updated. In international trade, time and reputation are more important than anything else, and using experts in most cases has economic value. 

Final Thoughts

Customs clearance guidelines for shippers are an impactful part of a shipment. Success at this stage depends on familiarity with the required documents, choosing the right HS Code, compliance with destination laws, cost management, and using the experience of experts, such as PSG Air Cargo, to ensure that the customs clearance process is carried out carefully, on time, without delays. This company helps in choosing the correct HS Code, which requires familiarity with the classification structure of goods and work experience in the field of export, because if this code is chosen incorrectly, the result can cause higher tariff payments, re-inspection of the goods, or the shipment being entirely stopped. Thereby, working with a trusted logistics partner leads to faster delivery. In a world where competition is intense, details such as Speed in delivery make all the difference and ensure more credibility that the shipper will gain in the destination market, and the result leads to buyer satisfaction and reduced operating costs.

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