Import-export business is not just a natural step forward for a small and medium-sized enterprise with big dreams. It is also a huge company that requires attention to hundreds of tasks, and if even one of them fails, it could cost you millions of dollars.
If in previous blogs we talked about how to succeed in importing and exporting as a new business, here we are going to talk in more detail about customs clearance requirements.
The customs clearance process involves the preparation of documents that can be filed electronically or by mail, which helps the relevant authorities calculate the taxes and fees that will apply to the goods.
Obviously, the documents required for customs clearance depend on the type of goods, but the countries of origin and destination of the goods are also taken into account. For example, exporters are required to deliver frozen fruits and vegetables to the European market.
Obviously, there are differences in policies and regulations depending on the exporting country or region. It is imperative to understand the standard set of rules for determining the exact value of exported goods.
Most customs duties and value added taxes (VAT) are expressed as a percentage of the value of goods declared for import, so a standard set of rules is needed to determine the value of goods, which will then be used to calculate customs duties.
The following factors need to be considered before properly pricing goods
- Economic and trade policy analysis
- Adopt trade policy measures
- Collect taxes and import duties in full
- Import and export statistics.
Customs clearance process in the EU
The following illustration shows the various steps that both exporters and importers must take when trying to ship goods to the EU.
Customs Declaration of Goods –
A Customs Declaration is an official document that lists and details. goods are imported or exported and the exporter is responsible for declaring such goods.
EORI Number –
Economic Operator Registration and Identification Number (EORI) is a unique identifier assigned by the customs authorities of the EU country to all economic operators (both companies and individuals) operating in accordance with EU customs legislation. established outside the EU will receive an EORI on first submission:
- Customs declaration
- Entry summary form (ENS)
- Exit exit summary (EXS)
The goods are in accordance with the applicable customs law, so a customs debt can only be entered into if AAC sets the duty rate on the said goods.
Temporary detention –
Goods from non-Union countries imported into the customs territory of the Union are placed in temporary storage from the moment of their arrival and presented to customs (Articles 139 and 144 of the Union Customs Code – UCC) until they are executed. to customs or re-export.
Registration of goods for circulation on the market –
This concerns compliance with all formalities when selling goods on the EU market. Import requirements include: –
- All applicable customs duties and taxes have been paid.
- A permit for the import of quota goods was submitted.
- All relevant approvals and certifications have been submitted (e.g., veterinary certificates for certain animals or animal products).
Special Procedures –
Certain items may be subject to special procedures and must go through the following procedures.
Allied transit includes
- external transit
- The internal market may or may not impose import duties depending on trade policy measures.
Storage includes: (i) bonded warehouses for warehouses for non-Union goods in authorized premises or facilities free of import duties and (ii) free zones where goods can be imported free of import duties and taxes until they arrive at an approved customs clearance
Customs clearance The US process
US customs clearance is slightly different from European Union customs clearance. US Customs and Border Protection, CBP, or US Customs and Border Protection Requires documents required for unimpeded transit and retrieval by importers.
Dispatch notification. bill of lading.
Bill of Lading A contract between a shipper and a carrier that protects the shipper against theft and fraud. The document explains exactly what kind of cargo it is and how much it needs to be sent.
Packing List: A detailed document with labelled items / goods to be exported. The information should include the number of units, weight, cubic meter and any other additional information about the required / required packaging depending on the type of goods.
Commercial Invoice: Document detailing the cost and rarity of payments CBP
. US authorities are also conducting a series of checks to verify security standards. These include: –
• FDA Exams (Food, Cosmetics, Medical Devices, etc.)
• USDA Exam
• Advanced Testing ( including substances, drugs and weapons detection)
• Vacis Exam (Vehicle and Cargo Inspection), also known as X-ray
Exam To keep the supply chain running smoothly. customs clearance process. Legitimacy of movement of goods and thus incentives for importers and exporters to comply with rules and regulations in order to avoid bad behaviour in high-risk areas of international trade.
Here are some of the most common customs-related problems and tips to deal with them effectively.
1. Wrong taxes. Import and export taxes on goods transported by sea are one of the most misleading issues. These taxes depend on the country, as well as the weight, type and value of the goods. Pay attention to paperwork to avoid tax issues. Prepare commercial documents carefully: contracts and invoices. In the absence of commercial documents, the delivery cost certificate provided by the declarant is assessed. Customs often check to see if the declaration is fictitious, so it’s best to act honestly.
2. Wrong classification of goods: Attention should be paid to the classification of goods. Many problems arise from incorrect descriptions. This is especially true for cargo, food and machinery forklifts. Appearance can cost you significant losses. Cargoes are classified by size, dimensions, physical state, specific characteristics, degree of danger and methods of cargo handling. The more accurate the information, the shorter the customs clearance time.
3. Consignee Issues: It is not only the consignee who is responsible for clearing the cargo, as there are times when the consignee pays all necessary fees and fills out the application forms, but the consignee refuses to accept customs, tariff or licensing procedures. In this case, the sender is not responsible for receiving the goods. To avoid any controversy, please inform the customer of the charges that may apply to the shipment and send them the required documents for receipt.