Customs clearance is a vital process in international trade. It ensures that laws and regulations are adhered to, fees are paid, and goods comply with current requirements. Customs clearance plays an essential role in maintaining security by preventing illegal trade and ensuring that goods entering or leaving a country meet legal standards. In this guide, we'll provide you with a better understanding of customs clearance.
What is customs clearance?
So, what does customs clearance mean? Customs clearance of goods and packages involves a control process that ensures they can pass legally through a country's borders. This includes notifying customs of the goods being shipped and paying the necessary duties and taxes. In addition, the goods are checked to confirm that they can be transported on.
Customs clearance is a process that international trade operators deal with daily. Therefore, it is important to understand what customs clearance means, in order to avoid delays and unexpected costs.
By following each step of the customs clearance process, you can ensure that your goods pass through smoothly. Below, we go through 5 steps that are important to know.
Brief guide to customs clearance:
- Gather the necessary documentation: All necessary papers, such as invoices, waybills, export declarations and other certificates required for the country.
We go through the documents required for customs clearance in the EU further down in the article. - Submit the documents to the customs authority: Submit the documents to the customs authority in the country where the goods are to be imported or exported. You can do this either digitally or via a customs broker.
- Pay customs duties and taxes: The fees are calculated based on your documentation and the value of the goods. You need to pay these for the goods to be forwarded.
- The goods can be checked: The customs authority can carry out a physical check of the goods to ensure that everything matches the information you have provided.
- Customs clearance completed: Once the customs authority has approved the goods, they are ready for onward transport to their final destination. “Customs clearance completed” means that your goods have passed through customs.
What does customs clearance mean for your company?
Customs clearance means that your company needs to ensure that all goods that are imported or exported comply with the applicable laws and regulations in the country in question. It is about submitting correct documentation, paying customs duties and taxes and being prepared for inspection of the goods.
Correct and efficient customs clearance is essential to avoid delays, additional costs and any obstacles that may affect the supply chain. Always read up on the laws and regulations that apply to your current country. As an importer or exporter, you are responsible for ensuring that the documentation is correct.
We understand that it can be difficult to keep track of all the documents required for customs clearance. Therefore, we have listed the documents that you often need for customs clearance in the EU.
Common documents for customs clearance in the EU:
- Invoice — Proves the value of the goods.
- Product description — Specifies in detail what is imported/exported.
- Certificate of origin — Certificate to ensure the origin of the goods.
- Transport notes — Documents confirming the transport of goods.
- Any licenses and certificates — Is relevant if the goods require special permits.
Who handles customs clearance?
The preparations for customs clearance can be carried out by you as an importer or exporter, but it is common to hire a customs broker (forwarder). They specialize in handling the customs process and documentation. The customs broker acts as an agent and ensures that all necessary steps are followed correctly.
The actual execution and approval of the customs clearance is handled by the customs authorities of the country in question.
Contact us at Bertling if you need help. We have extensive experience in transport solutions and work daily with handling customs clearance.
How long does customs clearance take?
A customs clearance can take between a few hours and several days, sometimes the waiting times are longer than that. To avoid potential delays, ensure all required documentation is prepared well in advance. Cooperating with an experienced logistics partner, such as Bertling, can also be a good idea.
Factors that may affect customs clearance processing time:
- Type of item
- The quality of the prepared documentation
- The customs processes in the country in question
What does customs clearance completed mean?
We have covered what customs clearance completed means before. It is the “status” your goods receive when the customs authorities approve them. This means that the goods are ready to be sent on to their final destination.
With our track and trace system, you can follow your transport and always keep an eye on where they are.
How much does customs clearance cost?
What customs clearance costs can vary depending on several factors. It is the customs fees that mainly affect the cost.
Customs duties are costs for goods passing through a country's borders. They are calculated based on the product's type, value, and country of origin. In addition to customs duties, VAT and other administrative costs may be added. We review the purpose of customs duties below.
Do you want to learn more about costs in shipping? Read our article: How do you calculate shipping costs?
Reasons why you need to pay customs duties:
- To encourage the purchase of European products instead of non-EU products.
- To regulate the market to avoid large price variations between countries.
- To protect domestic industries from cheaper foreign alternatives.
- To generate income for the state.
Who pays for customs clearance?
The cost of customs clearance is usually paid by the importer. You are responsible for submitting documentation, paying customs duties and other possible fees. In some cases, the exporter may also bear the costs. It depends on what is agreed between the parties.
What happens after customs clearance?
After customs clearance, the goods can be released from customs and continue their journey to the recipient. Then there are no more obligations towards customs.
What are export declarations in relation to customs clearance?
In export declaration is a document that informs the customs authority about what your company sends out of the country. The contains details about your goods — such as goods description, value, and recipient. To make the process of export declaration before customs clearance smoother, we list three useful tips.
- Prepare the documentation in good time.
- Use digital tools to streamline work.
- Please check all information carefully before handing in the goods.
Challenges and solutions with customs clearance
Delayed customs clearance is a challenge for many companies and is often due to incomplete documentation, misunderstandings about customs fees or ambiguities in the regulations. We give you two simple ways to avoid delays in customs clearance.
- Understand your market: Each country has its own customs rules. Make sure you understand what applies to your transport.
- Be proactive: Stay in touch with your logistics partner to receive current updates and avoid surprises.
Customs clearance with Bertling
Bertling is your reliable partner for efficient customs clearance and international transport. We offer fast and flexible handling of your shipping needs and are guaranteed to have a solution that suits you. We offer transport solutions within road freight, sea freight and air freight.
With our expertise, you can feel confident that your documentation will be correct. Customs clearance becomes easier with Bertling!
Are you considering which transport solution best suits your needs? Find out which transport solution you should choose.
