Customs Clearance of Cargo: Taxes, Documents, and Assistance
Customs clearance can be one of the most challenging steps in cargo transportation. To avoid fines, it’s important to understand which documents are required and how much time this complex process takes.
What is Customs Clearance?
Customs clearance is the process of checking and approving goods by certain authorities during import or export. It involves submitting documents, paying fees and taxes and obtaining permits for moving goods across borders. To determine whether customs clearance is necessary, consider the following factors:
- Value of the goods. If it exceeds duty-free limits set by your country, customs clearance is required.
- Type of goods. Some goods require mandatory customs control, even if their value is low.
- Purpose of the goods. If the goods are intended for sale or commercial use, customs clearance is required, regardless of their value.
- Country of origin. Shipments from certain countries may require mandatory customs clearance, even for low-value goods.
Customs Clearance by ETS
ETS has been providing customs clearance services for parcels for over 11 years, ensuring quick and seamless processing. Key advantages include:
- Expertise. Deep knowledge of customs legislation and requirements.
- Efficiency. Document processing and minimized delays, usually completed within a week.
- Comprehensive services. From consultations to document preparation and full customs support.
Cost of Customs Clearance
The cost of customs clearance includes several key components: duties and taxes which include customs duties, VAT and excise taxes; broker services; storage and inspection fees; licenses and certificates and transportation costs – both domestic and international transport expenses.
Required Documents for Customs Clearance
Before starting, it’s essential to gather the necessary documents and check if your goods are subject to import restrictions, weight and quantity limits. Familiarize yourself with the customs regulations of the importing country, especially when clearing parcels from countries like China.
Depending on the type of shipment and destination country, the following documents may be required.
Commercial Invoice
Such document confirms the sale of goods between the seller and buyer. It is used by brokers to determine the value of goods and calculate fees. Important details include the invoice number and date, prices, quantities, product description, seller and buyer information, Incoterms.
Packing List
Details the contents of the shipment and is necessary for customs export clearance and bill of lading creation. It includes information about the seller, buyer, invoice number, product description, packaging type, weight and dimensions.
Certificate of Origin
Specifies the country of origin of the goods and is required for certain products, sometimes requiring third-party certification.
Letter of Credit or Other Payment Terms
A bank letter guaranteeing timely payment to the seller, or other options like advance payment, open account, or documentary collection.
Bill of Lading or Air Waybill
A legal document issued by the carrier, detailing the type, quantity, and destination of goods. Used for goods transported by sea or air.
Additional Documents
Customs clearance may require additional documents, such as contract with signatures and seals, price list with product prices. payment order from the bank for advance payment or payment confirmation, contract with the freight forwarder signed by both parties.
For humanitarian aid, customs clearance requires different documents, such as an official act confirming the status of the aid.
How long does customs clearance and cargo delivery take?
It all depends on the country, its legislation, workload, and customs zone. Therefore, predicting the timeframe is challenging. Usually, import clearance can begin before the goods arrive if the necessary documents are ready. Online systems can allow cargo clearance within 24 hours. However, if customs authorities require additional documents or insist on an inspection, the process may take several days or weeks. It’s crucial for both the seller and buyer to cooperate in providing all required documents to avoid storage fees. Additionally, the speed of clearance depends on the broker’s experience. The more nuances they know about the process, the more likely the cargo will arrive at its destination on time.
Delivery, including customs clearance, can take up to 7 days, while customs clearance alone may take from 1 to 5 days.
What does “customs clearance completed” mean? It indicates that all procedures necessary for importing the goods have been completed: documents checked, duties and taxes paid, goods inspected (if needed), and the goods meet customs standards. The cargo is officially allowed entry into the country.
What can delay customs clearance?
One reason is incomplete or incorrect documentation, such as missing or improperly prepared invoices, certificates of origin, or export declarations. Problems may also arise from non-compliance with customs regulations, such as exceeding weight or quantity limits, or inaccurate value declarations. Furthermore, customs may halt the process if they suspect a violation or even an attempt at illegal importation. For most goods, not only invoices but also certificates of origin are required.
For a newcomer, handling these processes alone is almost impossible. To avoid fines and ensure timely delivery, it’s best to contact ETS company.