What You Need to Know About Customs Clearance

There is some overlap between imports and exports, and the paperwork for both must be in order. Next, we’ll walk you through the process of receiving imported goods through customs. At this point, you need permission to bring your products into the country, and this depends on the type of goods you receive and whether all documentation is in order.

1. Documents Required for Import

As with exporting goods, you will need relevant documentation to ensure your products clear customs for you to obtain them. The most frequently required documents are:

• Bill of entry
• Sales invoice from the supplier
• Commercial invoice
• Purchase order
• Proof of insurance
• Packing list
• Pre-shipment inspection certificate
• Bill of lading or air waybill
• COO
• Transportation invoice
• Import license
• Letter of credit
• Industrial license
• Health certificate
• Consulate document

2. A Customs Officer Verifies Your Paperwork

Your shipment must go through U.S. CBP when it arrives at a port or airport and seeks entrance into the U.S. The customs officials inspect the accompanying documentation to ensure accurate and complete information. In some instances, you will need additional documents, and in rare cases, you will also need to apply for an import license or permit. On these occasions, officials may do further inspection.

Once they verify the information, the customs officials will clear the shipment and permit entry into the country. The documentation must contain the commercial invoice, including the shipper’s and receiver’s names and contact information, plus the export date and waybill number.

3. The Customs Officer Assesses Tax and Duties Owed

A customs officer will then determine whether taxes and duties apply to the shipment. These amounts often vary depending on the type of goods, their value, if specific import regulations pertain to them and if they surpass certain tax brackets. Having established that, the officer will check whether you have paid your taxes and duties or if you still owe.

If there are restrictions or regulations on your imported goods, you will incur additional fees on top of the tax and duties.

4. Tax and Duties Payment Request

There are two payment options for tax and duties. The first is delivery duty unpaid, where the fees remain outstanding. The customs officer will typically involve an independent customs broker to collect the amount, which often includes late payment, storage and the brokerage fee.

Alternatively, with delivery duty paid, the seller or sender already covered the import duties and taxes, which makes for a far smoother process. The customer or receiver must only pay the shipping fees to avoid added delays and further payment requests. DDP is the preferable means of shipping goods because the delivery process is far smoother.

When shipping goods internationally, it is vital to know whether the buyer or seller is responsible for goods at any point — including fees — and this is where understanding free on board becomes relevant.

5. Customs Clears Shipment for Release

Once officials have verified all paperwork and you have paid taxes and duties, your customs clearance is ready to go, and you can collect your shipment. Some products may receive a conditional release from customs and must meet specific requirements before leaving the site. The conditions often relate to packaging, labeling and the need for specialized certificates and handling.

Though the customs clearance time can vary, it is rare for customs to hold goods for longer than 48 hours to a week, and it often takes even less. To ensure the quickest process, ensure all paperwork is in order, goods are fully compliant and ship DDP.