Customs Clearance

Also known as: Customs Processing, Import Clearance, Export Clearance

Definition

Customs clearance is the official process of getting shipments approved to enter or leave a country. Every international shipment must clear customs, whether it’s a small package or a shipping container.

The Customs Clearance Process

Import Clearance Steps

  1. Arrival notification - Carrier notifies customs of incoming shipment
  2. Documentation review - Customs examines paperwork
  3. Duty calculation - Based on HS code, value, and origin
  4. Payment - Duties and taxes paid
  5. Inspection (if required) - Physical examination
  6. Release - Goods cleared for delivery

Required Documents

Standard shipments:

  • Commercial invoice
  • Packing list
  • Bill of lading or airway bill
  • Customs entry form

May also need:

  • Certificate of origin
  • Import license
  • Product certifications
  • Phytosanitary certificates
  • FDA prior notice (food/drugs)

Who Handles Customs Clearance?

Self-clearance:

  • Possible for low-value personal imports
  • Time-consuming and complex
  • Risk of errors and delays

Customs broker:

  • Licensed professional
  • Handles paperwork and payments
  • Navigates regulations
  • Recommended for commercial shipments

Carrier/courier:

  • Express carriers (FedEx, UPS, DHL) offer clearance
  • Included in some shipping services
  • May charge brokerage fees

Clearance Timeframes

Shipment Type Typical Clearance
Express courier (under de minimis) Same day
Express courier (over de minimis) 1-2 days
Air freight 1-3 days
Ocean freight 2-5 days
Complex/inspected goods 1-2 weeks+

Common Clearance Delays

Documentation issues:

  • Missing or incorrect paperwork
  • Value discrepancies
  • Wrong HS codes
  • Incomplete addresses

Inspection holds:

  • Random selection
  • Flagged shipments
  • Regulated products
  • High-value goods

Payment issues:

  • Unpaid duties
  • Bond problems
  • Payment processing

Tips for Smooth Clearance

  1. Accurate documentation - Triple-check all details
  2. Correct HS codes - Research before shipping
  3. Realistic values - Never undervalue goods
  4. Complete descriptions - Vague descriptions cause delays
  5. Know regulations - Restricted items vary by country
  6. Use a broker - For complex or high-value shipments
  7. Track proactively - Monitor for customs holds

Clearance Costs

Fee Type Typical Range
Customs broker $25-$150+
Customs duties 0-25% of value
Import taxes 5-25% of (value + duty)
Inspection fees $50-$500+
Storage (if held) $25-$100/day
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