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Customs clearance work involves preparation and submission of documentation required to facilitate export or imports into the country, representing the client during customs examination, assessment, payment of duty, and co taking delivery of cargo from customs after clearance along with documents
. A freight forwarder will usually handle the customs clearance process, but you may also choose to hire a customs broker.
Things you need to know about customs clearance:
- Customs requires the payment of taxes and duties to take the cargo through every country in the world
- The time of the shipment may vary widely
- Complex documentation and complete paperwork is required (this includes an import license on some of the products)
- Proper loading is required
if you don’t prepare your shipment correctly, customs can hold or even confiscate your goods. There are, however, steps you can take to ensure a smooth process:
What is the difference between the Export and Import Customs Clearance Process?
If you use international freight shipping within your business, you are most likely to be either an exporter or an importer. The distinction between the two is pertinent because the rules, regulations, and processes for exporting differ from those applicable to imports.
In most international trading scenarios, the seller takes responsibility for export customs clearance and the buyer for the import process. The precise arrangement will depend on the incoterm applied to the sales transaction.
Under some incoterms, such as Ex Works (if you are the buyer) or Delivery Duty Paid (if you are the seller), you will be both the importer and the exporter, in which case you will need to be aware of the customs clearance processes for import and export.
It’s also imperative to understand that import and export clearance procedures are country-specific, so you should research exactly how they work in the countries relevant to your business. That said, there are some general principles that all customs authorities follow, and it is these that we will focus on in this guide.
This does not mean that the customs clearance process is impossible to conduct.
It happens in a few stages:
Customs clearance Stage 1 – Check it up yourself!
The cargo owner should first endorse the quality and presence of the goods. This is to avoid any unpleasant event that may occur due to negligence at the end.
Customs clearance Stage 2 – Verification of cargo and the documents by the Customs officer
The customs officer verifies the goods received and updates the same to the system. He also has to mark an electronic copy of the shipping bill and hand it over to the appraiser, along with the original documents submitted earlier.
The documents should include:
- A printed version of the export declaration
- A transport document, usually in the form of a bill of lading
- A packing list
- Certificates of origin for your materials or products
- Insurance documents detailing the policy and conditions under which your shipment is covered
Stage 3 – The merchandise is sampled
Based on the orders of the proper officer, a representative sample from the shipment may be drawn and tested, or verified for visual inspection, description, valuation, etc.
Stage 4 – Loading of the Cargo
loading of the container cargo, the customs preventive officer ensures preventive supervision for the same and gives a ‘Shipped on Board’ endorsement on the exporter’s copy of the shipping bill.
Stage 5 – The drawback claim
It is claimed by filing the prescribed format of the shipping bill. The drawback claim must be accompanied by prescribed documents as defined in the Drawback Rules 2017. The claim may be returned in case of any deficiency, but the shipment is not stopped for this reason.
Everybody wants their business to grow internationally. The doors to opportunity will open as soon as the international shipment of your product starts.
But there is a big intimidating factor limiting your exponential business growth. This is the complex logistics involved in ‘International Trade’.
Global-scale trading comes with a load of regulations and legalities that are too daunting.
We at 7C logistics solutions LTD. Israeli Freight forwarding and customs broker agency are here to simplify that information
and cut it down into steps to show how forwarding freight is easy and can transform your business!
After all, it is all about moving your products and belongings Internationally from one point on the globe to another