The Process of Custom Clearance

4 min read
The Process of Custom Clearance

The Process of Custom Clearance

Many who are working in the trade-off business need to ship their merchandise especially when they are dealing with global imports and exports. But many dealers try to avoid the sea route to save themselves from custom duty.

A custom clearing is a mandatory submission and preparation of documents that are required for the trading of goods in a country. This clearance includes the assessment of the merchandise, payments, taxes, and correct information regarding the shipments, which is checked during the delivery of the product.

Every country has a set of rules that are needed to be followed for clearance, for example, customs clearance in Dubai would follow certain etiquettes which apply to every shipping line in Dubai. They have to follow the norms properly to ensure the seamless execution of deliveries.

The process of custom clearance

The customs officer will check your paperwork for your shipment

All the global shipments must have a business invoice, which is a document that provides the information about the receiver information, contact details, as well as information of shipment details, along with the export date and bill. It also includes what the shipment carries and its monetary value. The officer will look if there are any taxes applicable on the shipment

The tax and duties depend upon the value of the goods and the country you are getting it imported from. The officer will check if there are any dues on the package. If there are dues, in such scenario, they will request you to pay the taxes and duties

This is where a split scenario comes into effect, delivery duty unpaid (DDU) and delivery duty paid (DDP). The package gets marked accordingly. If it’s marked as DDP it means that taxes are already paid off. Many shipment companies provide their brokers who for a minimal fee who can process payments and provide with such labels, depending on the package.

Whereas if it is marked as DDU, the package is forwarded to the independent brokers who charge a high fee to this, considering they add storage charges, brokerage, and due fee penalty. So it’s always recommended to pay all duties and taxes beforehand. Once paid the shipping is released and the journey continues

As long as you keep up with the essential official procedure, taxes, and duties, shipment is unconfined and gets delivered.

Also read: Top Methods to Ensure Your Business Isn’t Losing Money

But what to do if the customer does not clear the shipment

Contact your 3pl provider

If the shipment does not get approved by the custom clearance officers, you need to contact the one who shipped your goods for you. The shipper will be able to give you better clarity. They can track down the whereabouts of the shipments and the reasons behind it not getting past customs. Always have the shipment tracking number with you as with this you can check the shipment from time to time.

Contact your transporter

If you are assured that your consignment is jammed at the customs then, in most cases a carrier company can get them cleared and delivered. These carrier company services can turn out to be quite expensive however, they can usually help speed the process and get the goods easily delivered to you.

Many times the seller declares the package as DDP to lower their taxes, which sometimes gets confiscated by the customs, so be cautious of that. This might seem like money-saving at the time of purchase, but this tax fraud and can have major consequences. Be aware of the processes and get in touch with the shipper in case of any mishaps.

Outstanding taxes

Different countries have different taxes on shipments. If taxes are not paid; you would have to pay fine for clearing the goods through customs. If the package is of high value, then you would require a broker to sort the situation, which can turn out to be a very costly proposition.

Check if there is no lost document

The documentation depends upon the sizes and types of manufactured goods that are getting delivered. An easy blunder can cause a delay. If you are using a courier company for shipping service, they will be able to get hold of the issue and can help you in recovery and advise you better when dealing with customs. Make sure you are keeping all the documents that are required in check.

If everything fails, all you can do is fail

If you have gone for a slower shipping company then it can be a headache, it will be a slow process. So all you can do is wait, to get the package delivered to you.

Summing up: things to know

Shipments are often held for many reasons, apart from lack of documentation and unpaid taxes, they are often held for checking the content of goods and packages. It might also get confiscated in case the value of the good is not accurately managed. Always ensure that your documentations and taxes are intact and all the processes should be done keeping in mind the requirement of custom clearance.

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