When the goods move from one country to another, there is one step your international shipment cannot avoid – going through customs clearance. Customs activities are generally performed by dedicated experts, but good preparation can help you avoid unnecessary delays and frustration: the Freight Forwarding Experts share a few best practices you can adopt today to make the process flow smoothly.

Customs clearance and the payment of duties (also referred to as “tariffs”) can be complex to manage. But whether you are the shipper or the consignee, it is likely that you will be responsible for the import or the export customs brokerage of your shipment. Depending on the selected Incoterms®, you may even have to take care of both:TG | Customs | Incoterms clarify who is supposed to take care of clearance at destination as early as possible with your overseas business partner.

Before Anything Else: Identifying Your Goods

The smooth handling of your customs activities starts with a precise description of the goods you are shipping. This is achieved through an internationally standardized commodity code, the Harmonized System (HS) Code, which will ensure that the correct duties and taxes are applied by Customs. Note that HS Codes differ from country to country so it is important to make sure you classify products correctly for both the export and import country.

Examples of HS Codes Resources

The items in your shipment have been correctly identified – but can they leave the country or enter their destination location? Especially for import, some goods may be subject to certain government department regulations and require licenses or other permits depending on their nature–for instance health related products may require licenses from a Health Authority. It is key that you find out the specific requirements for your shipment before importing or exporting.

Are my goods subject to government regulations? A few examples

Your cargo may also have to undergo certain procedures regardless of its nature. If your goods are only being temporarily exported or imported, for instance during a cross-country move to their final destination, a Transit procedure or an ATA Carnet may be required to prevent customs charges from being applied.

Making customs clearance easy: your perfect commercial invoice

In details: the other information your broker needs
The inspection can take place physically or be limited to your shipment’s documentation, whereby customs authorities will apply different levels of control procedures to ascertain that the exportation is compliant with national and international laws and regulations. They may require to inspect the container, its products or have the usage of the products demonstrated for them before allowing exportation.

Here is our pro tip: consult with your customs broker prior to exporting by providing documentation samples and information on your goods’ nature and possible usages. This will enable your customs experts to let you avoid unnecessary delays or penalties. .

Importing

If you use the services of a customs broker, the import process and controls will be an experience similar to that of the export clearance. It is important to share your delivery plan with your broker, along with all the necessary documentation – they will in turn create a compliant customs declaration. The key documents remain the same as seen above, with a particular attention needed for import licenses and proof of origin.

Based on the documentation shared by your broker, the Customs office either decides to release the goods or to inspect the transaction. In the latter case, your customs broker will coordinate with you the further actions needed.

Paying Customs Duties

Unless exempt, all imported commercial goods are subject to customs duties and taxes based on their HS Code tariff classification. Generally speaking, it is the importer of record who will pay the import duty and tax. Some goods are also assessed in relation to other taxes. This includes excise duties and anti-dumping duties, which can be applied to goods priced significantly below their value in their import market.

Setting up payment: your checklist

The documentation resulting from the clearance process must be kept for a set period of time that differs per country but can be up to 10 years or longer. For compliance audit purposes. Myzibra Global Forwarding offers archiving services, so customs authorities’ inquiries will be answered efficiently, without delay or prosecution risk. Export cleared, import cleared and duties paid? It’s time for your shipment to arrive at destination. Experience a seamless import or export journey with Myzibra Global Forwarding.

Customs Services

Our broad range of customs brokerage services ensure a smooth and on time border crossing of shipments, without administrative burden, delays or penalties.