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What is customs clearance?

Customs clearance is the process of getting permission from the associated government agency to either move goods out of a country (export) or bring goods into the country (import). We can also define customs clearance as a document that the customs authority issues to a shipper. This document typically indicates that the shipper has paid all duties and their goods are cleared for export.



To get this customs clearance document, your customs declaration document must be available, which lists the goods you have in your cargo, together with the following documents on hand:

  • Export and import license that will enable you to move goods seamlessly across borders. As the name implies, the export license allows you to export goods, and whether you need one depends on the type of goods you are shipping. The import license will enable you to bring in goods that are restricted, and you have to apply to the licensing authority for both of them.

  • Pro Forma Invoice that you sent to your buyers after they confirmed their order. Seeing as the pro forma invoice is an agreement between all the parties involved in the transaction, some countries use it in place of a commercial invoice. For this reason, customs authorities use the information in the pro forma invoice to determine taxes and duties.

  • Customs packing list, which includes all the items included in your shipment. When it leaves the port, this list goes with it to help transportation companies to keep track of every item included in your shipment.

  • Country of origin, a document issued by you that states where the goods you are shipping are manufactured, processed or acquired from.

  • Commercial invoice, which like the pro forma invoice, connects you and your buyers and provides proof of the transaction between both parties. It contains the following information:

    • Your name and address

    • The name and address of the party receiving the shipment

    • The address to which the shipment will be going, if it is different from that of the receiving party

    • Customer reference number

    • Volume and weight of goods

    • The number and date of the invoice

    • Terms of sale of the goods

    • Terms of payment for the goods

    • Currency of payment for the goods

    • Quantity of goods sold

    • Description of goods

    • Unit of measure

    • The unit price of the goods

    • The total commercial value of the invoice

    • The total price of the goods

    • Package marks

    • Mode of shipment

    • Freight insurance details

    • You and the buyers’ tax identification numbers and other information

    • The incoterm you and the buyers had agreed upon

    • Miscellaneous charges

    • Certifications

When the customs officer on duty confirms a match of the shipment with the details on the commercial invoice, they then forward the shipment.

  • Shipping bill, with which customs officers assess the value of the goods you want to export. The bill is typically filed after the vessel carrying your goods is allowed to move out of the country.

  • Bill of lading or airway bill, a receipt that lists the goods in the shipment you are looking to export. The carrier of your shipment issues the bill of lading to you, the exporter.5

  • Bill of entry, filed by the customs broker, before the shipment arrives at the port. The customs department requires the bill of entry to start examining your load and uses it for the clearance process. Customs brokers are agents authorized by the U.S. Customs and Border Protection to assist importers and exporters with their customs issues, an activity called customs brokerage. A customs brokerage firm ensures that you are complying with customs regulations. They can be either private individuals or firms that are licensed by the appropriate government office to handle these issues. Customs brokers help in different ways, one of which is by assisting you with HTS codes.

  • Customs Invoice, same as a commercial invoice and has a specific format set by customs authorities. It is part of your customs broker’s responsibility to get the customs invoice form for you to fill out.

  • Insurance certificate that provides coverage for losses or damage to cargo while it is in transit6. It also helps in the determination of import duty aggregate.

Source: Alibaba

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