INTERNATIONAL SHIPPING: A GUIDE TO CUSTOMS CLEARANCE
What Customs Authorities Do
Supervise imports and exports to ensure they comply with national laws and regulations.
Collect duties, taxes (like VAT), and other fees.
Inspect goods to make sure they meet safety, health, and environmental standards, preventing smuggling and non-compliant goods from entering the country.
The Role of Customs in International Shipping
Ensure goods cross borders legally.
Facilitate information sharing and coordination between different countries’ customs agencies.
Use standardized declaration and inspection processes to make trade both secure and efficient.
Export Customs Process
Getting Your Documents Ready
1. Commercial Invoice: Details the goods, including description, quantity, unit price, total value, and trade terms (like Incoterms).
2. Packing List: Provides information on how the goods are packed, their quantities, and dimensions.
3. Export Declaration Documents: This includes the customs declaration form and any required export licenses.
4. Certificate of Origin: Proves where the goods were made, which can help qualify for preferential tariff rates.
Packing and Labeling Your Goods
Ensure packaging meets international shipping standards to prevent damage or safety issues during transit.
Clearly label products with key info like name, specifications, weight, and batch number to make customs inspection smoother.
Declaration and Inspection
Your freight forwarder or customs broker will usually help you fill out and submit the customs declaration.
Customs will review the documents. They might physically inspect some shipments to verify that the information provided matches the goods.
Export Release
Once Customs gives the green light, your goods are cleared for export and can move on to international transport.
Import Customs Process
Document Preparation & Declaration
The importer or their agent prepares necessary documents: commercial invoice, packing list, transport documents (like Bill of Lading/Air Waybill), certificate of origin, contract, etc.
The customs declaration form is filled out based on the goods’ attributes. Accuracy and completeness are key here.
Customs Valuation & Duty Calculation
Customs assesses the value of your goods based on the declared value, quantity, and HS code.
Import duties, VAT, and sometimes other taxes (like excise or anti-dumping duties) are calculated based on local tax rates.
Clearance & Inspection
Customs conducts a risk assessment and may select your shipment for inspection or random checks.
If documents are complete and data accurate, clearance is usually quick. Questions or discrepancies can cause delays.
Delivery & Pickup
After clearance is granted, the importer or their agent pays the duties and fees, and the goods are released into the local logistics chain for delivery.
Customs Transit / Bonded Transit
What it is: Moving goods under customs control from the port of entry to another customs office or a final destination without going through formal clearance there. The goods haven’t been officially “imported” yet.
When it’s used:
Transporting goods between different ports/customs districts within the same country (e.g., from a seaport to an inland customs office for clearance).
Moving goods through Free Trade Zones or bonded warehouses for storage or processing before eventual import or re-export.
For shipments like China-Europe rail, air, sea, or truck freight that need to reach a specific customs zone before formal clearance.
Transshipment / Customs Transit Declaration
What it is: When goods make a brief stop in a country or region without being cleared through customs, before continuing their journey to a third country.
When it’s used:
Goods need to pass through a third country/region en route to the final destination (e.g., China to Europe via Kazakhstan).
Due to routing or capacity arrangements, goods must briefly stop in a transit country (e.g., transiting through Singapore’s port en route to Europe).
During international multimodal transport (e.g., sea-rail, air-rail), where goods are transferred to a different mode of transport in a transit country/region.
Key Questions on Transit & Transshipment
1. Is a guarantee or deposit required?
Customs Transit:
Some countries require a financial guarantee (like the T1 document in the EU) to ensure duties will be paid if the goods don’t complete the transit process and get cleared at the intended destination.
Transit within bonded zones or Free Trade Areas might not require a deposit.
Transshipment:
Some countries (e.g., Russia, Belarus) might require a customs deposit or guarantee to prevent goods from illegally entering their market.
2. Which countries have special requirements?
European Union (EU): Uses the T1 transit procedure to ensure goods are cleared in the destination member state.
Russia: Has strict controls on transit goods and may require additional procedures.
United States: Uses IT (Immediate Transportation) and IE (Immediate Exportation) procedures to allow goods to transit without formal clearance.
China: Mainly uses its Customs Transit System to manage goods, especially for cross-border e-commerce or China-Europe rail shipments.
3. How to avoid clearance delays?
Prepare all documents accurately and in advance. Ensure the declared information perfectly matches the actual goods.
Work with an experienced freight forwarder/customs broker. They know the local rules and can quickly resolve issues.
Understand the destination country’s regulations to avoid goods being held or rejected for non-compliance.
Track your shipment in real-time to ensure it arrives as planned and address any potential hiccups quickly.
If you have a specific shipping route or customs question, feel free to share the details – I can help suggest the best approach for your situation