Customs clearance work involves preparation and submission of documentation 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. Customs clearance is a necessary procedure before goods can be imported or exported internationally. If a shipment is cleared, then the shipper will provide documentation confirming customs duties that are paid and the shipment can be processed. After your package clears customs in its destination country, it will be ready to go into the regular mail delivery system of its destination country. Your package will go to a postal delivery service hub, be sorted, and make its way out to its final destination.
Some of the documents involved in customs clearance are :
- Exports Documentation: Purchase order from Buyer, Sales Invoice, Packing List, Shipping bill, Bill of Lading or air waybill, 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.
- 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 or sometimes customs broking. 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. We have the experience and knowledge of smoothly shipping cargo from one country to another so you, the shipper, don’t have to worry about all the details, regulations, and hassles and can focus on your business. 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 us, your freight forwarder and with over 25 years of experience, Universal Cargo Management is prepared to handle your customs along with any problems that may arise; but, accuracy on your part will help us keep your international shipping smooth from beginning to end.
The 7 Most Common Issues in Customs Clearance that You Should Know
Customs clearance can be a minefield for both importers and exporters. Ranging from unexpected fees and the misclassification of cargo to complicated documentation and import regulations, there are many things that can go wrong. Mishaps in the customs process can lead to unwanted delays and costs, so it’s vital that you are prepared. Below, we’ll provide a brief overview of the Australian customs system and consider the most common issues in customs clearance that you should we aware of when shipping your goods internationally.
1 Paying duty on your Imports
On most imports into Australia, duty will be payable. The price for this will not usually be disclosed at quoting unless you know the commodity and commercial value of your shipment. Customs duties must be paid before your goods are cleared. Typically, your customs duty will be calculated based on the exchange rate prevailing on the day the goods are exported. Goods and Services Tax (GST) will also be payable, as well as any other applicable taxes depending on the types of goods.
2 Paying a Customs Import Declaration Processing Fee
Whether you ship your goods via air freight or sea freight, you will also need to pay an Import Processing Declaration Fee. The is an administrative fee levied by customs to cover the costs of clearing your cargo.
The fees are as follows:
Sea freight shipments
Valued $10,000 or less – fee of A$99.00 per shipment
Valued $10,000 or more – fee of A$201.00 per shipment
Air freight shipments
Valued $10,000 or less – fee of A$88.00 per shipment
Valued $10,000 or more – fee of A$190.00 per shipment
3 Preparing the right Documentation
But as mundane as paperwork is, you’ll need to understand the minimum document requirements prior to importing. This includes providing the following:
- Commercial invoice – one of the most important documents in international shipping, the commercial invoice details the price and amount of goods you are importing into Australia.
- Packing List – this list contains comprehensive information about how your goods are packed by the supplier, such as the precise weight and dimensions.
- Packing Declaration – while only necessary when shipping by sea, the packing declaration lets customs know the kind of material used to pack your goods. It contains a declaration as to whether the material contains “unacceptable material”.
- Certificate of Origin – this declares the country in which your goods were manufactured and can be very beneficial for you if that country has a free trade agreement with Australia.
4 Tariff Concessions
Tariff concessions remove duties on goods imported into Australia. This is administered by the ABF’s Tariff Concessions System. To benefit from tariff concessions, you should be clear on what your product is and its intended use. You may be eligible for a Tariff Concession Order (TCO) if you are importing a product that no known Australian manufacturer can adequately make as a substitute in the ordinary course of business.
5 Benefits of Free Trade Agreements
Free trade agreements bring a range of advantages to Australian importers – reduced tariffs and greater foreign market access are some of the most valuable benefits. Australia has over a dozen of these agreements with different countries, so make sure you find out if one is in place. If you want to benefit from a free trade agreement, ensure you supply a Certificate of Origin (discussed in step #3) prior to import. This document applies to a single shipment and can cover one or more items (although it cannot exceed 20 unique items). There are some circumstances where you will be entitled to a customs refund if you overpay a duty. A refund can be given after you have imported your goods, but you’ll need to pay clearance reprocessing fees as your customs entry will need to be amended and relodged.
6 Import Permits
If you’re importing particular goods into Australia, you may need an import permit. A failure to present this permit when required may lead to the seizure and destruction of your goods. Certain commodities are required to be accompanied by an import permit under biosecurity laws. You can check to see if your good requires a permit by searching on the Biosecurity Import Conditions (BICON) database.
7 Biosecurity inspections
The DAWE may direct your cargo for inspection at any point before your cargo is released. This may occur when your goods arrive at the seaport or airport, or a third party-approved site. These inspections are aimed at reducing the presence of pests and diseases entering the country, protecting Australia’s environment and biodiversity. If any quarantine inspection charges are applicable, these will be paid by the importer. Fees are levied pursuant to the Department’s Charging Guidelines. To prevent the likelihood of inspections from occurring, have all your documents prepared (step #3 above). Although, cargo is sometimes randomly inspected.
Courtesy: Best freight forward company in Lahore
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