Customs Clearance

The customs clearance process involves preparing documents that may be submitted electronically or with consignment. This helps concerned authorities to calculate taxes and duties that will be levied on the cargo. In this post, will gives you an overview of what might be required if you are new to trading.

The types of documents needed for customs clearance depend on the type of goods involved, but it also considers the country of origin and the destination of consignment. However, there are a few standard documents that are often requested by Customs from all businesses. Those are listed below:

• Export license: Document proving that you have the right to bring goods from abroad into your country. Any business can request it if they are in good standing with the fiscal entities.

• Bill of Exchange: Written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date

• Bill of landing: It is a contract between the shipper and the carrier, which provides protection to the shipper from theft and fraud. The document explains exactly what the cargo is and how much is required to be transported.

• Shipping bill: It is required by the Customs Authority for allowing shipment and it is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties.

• Commercial invoice: It is a document that gives a detailed account of goods cost and amount oddities paid.

• Pro forma invoice: It is the invoice used by the seller to request payment from the committed buyer for goods or services before they are supplied. A proforma invoice includes a description and quantities of the goods, the total payable amount and other details about the transaction.

• Health certificates: are government to government certificates that include information about the product, its health status and the consignor. The information it contains might vary depending on the product and the destination country. It usually include: the country of origin of the product and its components; the treatment or other processes the product has undergone, prior to export; the microbiological status of the product; and/or the product's health status

• Certificate of origin: It is a document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product, its destination, and the country of export

• Customs packing list: It is a document used for customs declaration that identifies the quantity, weight, dimensions, and carton count of the shipped products.

• Document notifying arrival of shipment – This document includes information about consignee, shipper, freight location inland transit number and House & Master Bill of Lading.

In certain country a series of examinations are also conducted by authorities to verify the safety standards of the shipment and the conformity of your declarations. For example, in the USA, these include:

• Food and Drug Administration (FDA) Exam (Food, cosmetics, medical devices etc.)

• United States Department of Agriculture (USDA) Exam

• Intensive Exam (includes detection of narcotics, drugs and weapons)

• Vacis Exam (Vehicle and Cargo Inspection) also known as X-Ray exam

To maintain a seamless supply chain, countries leave no stones unturned in ensuring that the export and import of goods happens through a fail-proof customs clearance process. It is, therefore, indispensable in its role to vouch for the legality of the freight shipment and in turn, encourage importers and exporters to abide by the rules and regulations to prevent any foul play in the high-risk international trade arena.

In conclusion, to success the cleareance of your goods, you must provide many documents. The lack of some of them will certainly waste your time until you comply with the regulations, and that can eventually cause the violation of your trading contract terms. For this reason, it is important to count on trading experts to get the right counseling. Our team at SEAND trading will be please to help you, so don't hesitate to contact us.