InvestorWords defines customs clearance as the act of passing goods through customs so that
they can enter or leave the country.
Management Study Guide provides
information that gives one a better idea of what customs clearance entails:Customs clearance work involves
preparation and submission of documentations required to facilitate export or
imports into the country, representing client during customs examination,
assessment, payment of duty and co taking delivery of cargo from customs after
clearance along with documents.
Some of the documents involved in customs clearance are :
1. Exports Documentation: Purchase order from Buyer, Sales Invoice,
Packing List, Shipping bill, Bill of Lading or air way bill, Certificate of
Origin and any other specific documentation as specified by the buyer, or as
required by financial institutions or LC terms or as per importing country
regulations.
2. Imports Documentation: Purchase Order from Buyer, Sales Invoice of
supplier, Bill of Entry, Bill of Lading or Air way bill, Packing List,
Certificate of Origin, and any other specific documentation required by the
buyer, or financial institution or the importing country regulation.
Every
port in every country around the world puts your cargo through a customs
clearance process.
What’s more, the rules,
regulations, and laws are a bit different from country to country, sometimes
from port to port within a country, making someone who specializes in customs
clearance very important to a shipper exporting and importing goods.These
specialists are called customs brokers and the work they do is called customs
brokerage.
Having
the wrong person handle your customs brokerage can be very problematic.
Shipping containers are warehoused as they go through customs clearance.
Warehousing and storage fees can add up quickly. If there is a problem with
your customs brokerage and your customs clearance does not happen smoothly,
your shipping costs could go up by hundreds to thousands of dollars.
On
top of these costs, the delay in getting your shipping containers released to
you because of customs clearance problems could cost your business more money
because the arrival of your shipment is delayed.Your
freight forwarder should also be able to handle your customs clearance, but you
can choose to handle it separately with your own customs broker.
When
choosing a freight forwarder, you want a company with the experience to handle
your customs clearance well and who knows what to do should any issues arise.For
these reasons, going with the cheapest freight forwarder you can find to handle
your international shipping can turn out to be much more expensive than hiring
a freight forwarder with a little higher quote but who has much more experience
in the business.
There
are other things you can do to help ensure your shipping containers make it
through customs smoothly.Here
are 2 ways you can help make the customs clearance process smooth for your
shipment.
1. Properly Load Your Shipping Container
One of the biggest things you can do is make sure your shipping container is
properly loaded.Ultimately,
as the shipper, you are responsible for the loading of your shipping
containers. You can do so as you see fit; however, if shipping containers are
not properly loaded, you could cause red flags to go off at customs.
Improper
loading may lead to extensive examinations and even searches of your
international shipments. You don’t need the delays and costs that are
associated with this.Household
and personal effects shippers should pay special attention to this as such
shippers tend to have less experience with international shipping and container
loading than business importers and exporters.
2. Provide Complete and Accurate Information to
Your Customs Broker/Freight Forwarder
There
is a great deal of paperwork involved in international shipping. The
complications of shipping cargo from one country to another is why freight
forwarders like UCM exist.Still,
there is a certain amount of paperwork you will need to provide to your freight
forwarder.Being
accurate and thorough with your paperwork is important. This includes business
information, inventories or itemized lists of shipments, and value of cargo.This
information affects the duties and custom fees at the ports, helps assess the
risk of your cargo shipment, and more.
The
last thing you want is for customs to find your shipping manifest is inacurate
and think you’re trying to sneak something past them.What
you do want is a low risk assessment of your cargo shipment at customs.Most
of the paperwork of your international shipping will be handled by your
freight forwarder but, accuracy on your part will help to keep your international shipping
smooth from beginning to end.
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