The customs clearance procedure governs the import and export of goods. It involves making a declaration to national customs for all imported or exported goods and complying with the customs laws, regulations, and formalities of the specific country or region.
During this process, the customs value of the goods is calculated.
This serves as the basis for calculating all import duties and taxes within the country or region. The customs value is also used to compile statistics on international trade.
The main objectives of customs clearance are as follows:
- Security: ensuring that goods being imported or exported don’t pose a threat to national security.
- Collection of duties and taxes: verifying and collecting any applicable customs duties, tariffs, or taxes.
- Regulatory compliance: making sure that goods meet all legal and regulatory requirements, including safety standards, labeling, and documentation.
- Record keeping: maintaining records of imported and exported goods for statistical and audit purposes.
- Prevention of illicit trade: detecting and preventing the smuggling of prohibited or restricted items.
Certain formalities must be completed during customs clearance. These include declaring the nature of the goods, their value, and the identity of the consignee and consignor for the shipment.
To do this, you will likely need to present a number of shipping documents, such as the following:
- Invoice
- A detailed packing slip
- Certificate of origin
- Transport document
- Insurance certificate
- Health certificate
- Verification certificate
- etc.
The customs clearance procedure differs slightly for imports and exports, with regulations that vary depending on the country or region.
Customs clearance is typically handled by a customs broker or freight forwarder experienced in navigating the complex and often country-specific customs procedures. It involves documentation, inspections, and, in some cases, payment of duties and taxes before the goods can be released for domestic distribution or export.
Not complying with customs clearance requirements can result in delays, fines, or confiscation of the goods.
