When the goods move from one country to another, there is one step your international shipment cannot avoid – going through customs clearance. Customs activities are generally performed by dedicated experts, but good preparation can help you avoid unnecessary delays and frustration: the Freight Forwarding Experts share a few best practices you can adopt today to make the process flow smoothly.
Customs clearance and the payment of duties (also referred to as “tariffs”) can be complex to manage. But whether you are the shipper or the consignee, you will likely be responsible for your shipment’s import or export customs brokerage. Depending on the selected Incoterms®, you may even have to take care of both: TG | Customs | Incoterms clarify who is supposed to take care of clearance at the destination as early as possible with your overseas business partner.
Before Anything Else: Identifying Your Goods
The smooth handling of your customs activities starts with a precise description of the goods you are shipping. This is achieved through an internationally standardized commodity code, the Harmonized System (HS) Code, which will ensure that the correct duties and taxes are applied by Customs. Note that HS Codes differ from country to country so it is important to make sure you classify products correctly for both the export and import country.
The items in your shipment have been correctly identified – but can they leave the country or enter their destination location? Especially for import, some goods may be subject to certain government department regulations and require licenses or other permits depending on their nature–for instance health related products may require licenses from a Health Authority. It is key that you find out the specific requirements for your shipment before importing or exporting.
Your cargo may also have to undergo certain procedures regardless of its nature. If your goods are only being temporarily exported or imported, for instance during a cross-country move to their final destination, a Transit procedure or an ATA Carnet may be required to prevent customs charges from being applied.