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
- Arrival notification - Carrier notifies customs of incoming shipment
- Documentation review - Customs examines paperwork
- Duty calculation - Based on HS code, value, and origin
- Payment - Duties and taxes paid
- Inspection (if required) - Physical examination
- 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
- Accurate documentation - Triple-check all details
- Correct HS codes - Research before shipping
- Realistic values - Never undervalue goods
- Complete descriptions - Vague descriptions cause delays
- Know regulations - Restricted items vary by country
- Use a broker - For complex or high-value shipments
- 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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