International Shipping Customs Clearance

International shipping involves several processes before the delivery reaches its final destination. You must pass through customs both for the country of origin and your destination country.

In this article, we will analyze the niceties of international shipping customs clearance once shipment they arrive at their destination countries before delivery.

Let’s first understand what we mean by custom clearance.

What Does Custom Clearance Involve?

The customs clearance process includes the passing of import or export goods through customs. Every shipper receives customs clearance papers from the customs office, which shows whether they have paid tax and the products are good to go.

In developed nations, they use more advanced systems to conduct customs clearance. However, most states do customs clearing manually so you must understand what the process entails.

International shipping customs clearance involves primary and secondary scrutiny of goods and packages.  During primary inspection, packages are inspected visually by officials.

Inspection officials then decide whether goods are fit to clear for delivery or need to go through secondary inspection. 

Some of the reasons your freight may need to go secondary inspection or denial of clearance include:

• To inspect whether goods are hazardous and dangerous for human use.
• To crackdown on illegal items.
• To allow the examination of the products that have been regulated by the government, for instance, medicine and food.
• To check for tax compliance.

During the packaging process, ensure you provide detailed and descriptive information on the products you are shipping.

Giving detailed info on the contents of the package will ensure they pass through customs without a hassle.

Where the customs process operates manually, goods with fewer details of the owners take a lot of time to be cleared.

What Documents Do You Need to Pass through Customs

To ship abroad, you must provide some documents if you’re going to pass through customs without a hassle. The credentials you’ll need include; a commercial invoice, certificate of origin, packing list, and other materials per your destination’s requirements.

You have to fill out these documents with the relevant and correct information. In this article, we will look at a few international shipping customs clearance documents.

Include the Nation of Origin 

Country of origin means the nation in which the goods were manufactured. Customs will take a shorter time to scrutinize your products if you specify the country of origin of the package.

 A Commercial Invoice

A commercial invoice is an official paper issued by the exporter to the importer. It acts as the binding document between the two parties— the retailer and the shopper.

A commercial invoice neither indicates the goods to be sold, nor the name of the owner. However, it is used by the customs to determine the value of duty and tax of the respective goods.

You will require a commercial invoice to complete international business. The following are details you will need to complete a commercial invoice;

A full Description of the Items

Have a thorough description of your products. For example, when dealing with apparel, indicate the gender, size, type, and color. By this, you make it easier for the customs handling your shipment.

Include Contact Details

A commercial invoice should include the contacts of both the seller and the buyer. Ensure you add the correct contact information of the seller and the buyer.

Correct contact information makes shipping hassle-free. It also ensures a shopper receives their items in time.

Matching Harmonized System (HS) Code

HS code is a globally standardized system used to categorize internationally traded products. It is used worldwide by customs organizations.

Each country has different customs rates on various items. Harmonized System (HS) coding allows the classification of products uniformly for customs purposes amongst nations that trade.

Assessing Taxes and International Shipping customs clearance Duties

Each nation has different rules on import tax. Countries also vary in how they determine the assessment of duties and taxes. Each country has its unique way of imposing tariffs and international shipping customs clearance duties.

All nations impose duties and taxes to generate income and protect the local industry. Lastly, the type of item you are shipping will determine how much duty you pay.

The amount of duty and tax imposed on your shipment depends on the following factors;

• Trade contract between nations
• Product value
• Nation of origin
• Products’ description and its use
• The product’s Harmonized System (HS) code

Conclusion

A savvy business owner thinks about custom clearance because they understand that it impacts customer experience. Always prepare every document upfront and know the requirements of your destination country to enjoy hassle-free international shipping customs clearance.