Customs clearance is a process in international trade that involves preparing and submitting documents required to legally export or import goods across international borders and ensuring that all necessary taxes, duties, and regulations have been adhered to.
Why is Customs Clearance Important?
- Legal Compliance: Customs clearance is essential for complying with the legal requirements of importing or exporting goods. Without proper clearance, goods may be seized, and penalties may apply.
- Tax and Duty Calculation: It determines the correct amount of taxes and duties payable for the goods, avoiding underpayment or overpayment.
- Prevents Delays: Properly cleared goods move more quickly through customs, reducing the risk of delays and additional storage fees.
The Customs Clearance Process
- Submit all required documents, typically including a bill of lading, commercial invoice, packing list, and any other documents requested by customs.
- Customs authorities assess the duties and taxes based on the goods’ declared value and classification.
- Some shipments may be selected for inspection, which can be random or based on suspicions of inaccuracies or non-compliance.
- Any duties, taxes, or other fees assessed must be paid before the goods can be released.
- Once all requirements are met and fees are paid, the goods are cleared and released for delivery to the final destination.