A lot of companies want to expand their orders and offer their products internationally. However, one of the biggest challenges that they have to face when it comes to shopping globally is navigating custom clearance and all the other international regulations. This can be a complicated process as there are many different regulations, documentation, and other formalities that need to be completed before your shipment is cleared.
If you don’t have enough information on customs clearance but want to know how to bypass it and make the entire process easy, then this article is just for you. We have mentioned all the information that you need, so let’s jump right into the article.
Part 1. What is Custom Clearance
Not a lot of people know what custom clearance is. Custom clearance is basically an official process through which the customs authorities inspect international shipments and approve the goods so that they can be imported or exported to other countries. With the help of this procedure, the shipments are properly checked so that they can comply with the local regulations of the country to which they are imported. It is also important to check if the companies have paid the duties and the taxes and if all the other necessary documentation has been fulfilled.
Customs clearance is an important step in international trade because it protects the nation’s economic and security interests while ensuring that goods can be exported and imported across different borders smoothly.
Part 2. The Key Steps of the Customs Clearance Process
If you are a business that wants to export goods or an exporter, then you must understand the four key steps that are present in the customs clearance process. Understanding and figuring out the intricacies of these steps will ensure smooth international trading and faster deliveries.
The Customs Check Documentation
The first thing to keep in mind when it comes to customs is that proper paperwork needs to be submitted for every international trade or shipment. This paperwork involves many different things, such as shipping labels, invoices, the packing list, and a few others. It is important to verify the origin of the shipment and even the final destination.
When submitting the paperwork, you should make sure that all the information is properly mentioned to avoid any delays. Be transparent about the products present in the shipment and also the value of the products. Mention the right contact information in case the customs need to contact you for verification.
Taxes and Duties Need to be Paid
When you are making an international shipment, you also need to pay different taxes and duties for the shipment to move across the border. The duties and taxes vary based on the type of product and even the size of the shipment. They are also dependent on the place it is being sent to and the price of the products.
When it comes to duties and taxes, a company needs to understand and familiarize itself with the different taxes for different countries. Also, you need to stay up to date with global shipping and the strategies that can affect the taxes and the rates of these taxes and duties.
Package Clearance
After the taxes and duties are paid and all the documentation is verified, the customers will clear the package. This also means that it will move on to the next destination and then to the final destination.
Part 3. What is a Customer Broker
Customs clearance can be very hectic, and this can cause a lot of problems. However, some customs brokers can help you with the entire process. The customs broker is an agent who can help you import and export the products and even make customs transactions.
Tariff laws regulate these agents. This means that they have all the information regarding all the rules of customs. These brokers can be either private individuals or hired through a firm licensed by US Customs and Border Protection. Hence, hiring a custom broker and getting assistance from them can be very beneficial as they can make the entire process straightforward.
Part 4. Do I Need A Customer Broker?
Getting a custom broker is not entirely necessary. It is also not legally required to hire one if you are trading internationally. However, getting one can be beneficial as they can help you with the clearance of the goods and are even cost-effective.
Below are some of the reasons why you should get a customs broker and make the entire process simpler
Convenience
One of the main reasons why you should get a custom broker is that they are very convenient. They will do most of the customs work, such as submitting the paperwork, paying the taxes for you, and doing all the other legal things. This means that you can focus on your business while letting the broker tackle the custom problems.
Cost Savings
Another major benefit of getting a customs broker is that they can help optimize the customs process. Many of them know how to reduce taxes and duties so that you don’t have to pay a lot of money, eventually reducing the cost of the shipment and even getting the clearance faster.
Guidance
With the help of the custom broker, you can have the best guidance. If you are stuck in your business and don’t know how customs will work or how to pay taxes, then the customs broker can solve everything for you. They are also up to date with the latest trends and complexities of taxes and duties, which makes it much easier to do international shipments.
Part 5. What Should I Prepare for Customs Clearance?
Now that you know what customs clearance is and how it works, there are a few things that you can plan ahead of time to ensure that the shipment does not delay because of customs. Below, we have mentioned some considerations to keep in mind.
Documentation
The first and most important thing is the documentation. When international shipping is involved, you need to have all the paperwork ready for smooth shipping and customs clearance. Following are a few of the main documents that you need to keep prepared and should be filled in when you are making an international shipment.
- Invoice: The preliminary bill needs to be included in the documents. This is the bill of sale sent to the buyers before the shipment. This invoice will have the details of the items purchased and their costs.
- Commercial invoice: This is the official invoice made between the supplier and the buyer. It includes all the details of the goods, the amount, and even the costs.
- Export packing list: The packing list will have detailed information about the products in the shipment. The characteristics of the products, the amount, the quality, and the packing details need to be mentioned here.
- Inland bill of lading: There needs to be an inland bill of lading, which is the bill between the supplier and the transporter. The transporter will show this to the main shipping port before the package is shipped.
- Air waybill: This is the bill between the supplier and the airline that will carry the package to the destination.
Many other documents, such as the letter of credit, ocean bill of lading, certificates of organization, and others, need to be present here.
Internation Shipping Regulation
You also need to know each country’s specific regulations. There are many things to keep in mind, from restricted products to taxation to packaging standards. Every country has its own set of rules that should be followed before you ship to ensure that it is not rejected. Thus, it is very important to stay up to date with the latest trends and policies.
Use NextSmartShip for Smooth Custom Clearance
Custom clearance can be very hectic, as there are a lot of regulations that you need to follow, have proper taxes and documentation to show, and a lot of other rules to follow. This is why 3PL companies come into action and can help you with the entire process. Among these companies, NextSmartShip is one of the best and most reputable companies that can help you with your customs clearance.
Not only this, but NextSmartShip also helps with other parts of the orders. They can help with all the logistics, from taking the orders to packaging them and delivering them to the customers.
Conclusion
For an e-commerce business, international shipping can be very beneficial. However, with international shipping, brands have to face a lot of challenges. One of them is custom clearance. This is the official process through which the shipment can pass through the borders and to different countries.
Here, the companies have to pay taxes and duties and follow the regulations to ensure that the shipment passes through the borders. Hence, we hope this article was beneficial for you and that you now know everything about customs clearance. Also, make sure to check out NextSmartShip.
