Shipping Terms Glossary
Shipping Terms Glossary
Customs Clearance

Customs Clearance

Every time goods are transported to a new country by rail, road, air or sea, they must pass through the customs clearance process.

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What is Customs Clearance?

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Every time goods are transported to a new country by rail, road, air or sea, they must pass through Customs. The process involves a few steps and is called customs clearance.

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Bookairfreight Tips:

"When you’re travelling internationally, you go through immigration and security checks at the airports - Customs Clearance is the same process but for cargo."

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What do you need for customs clearance?

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The customs clearance process usually requires documents such as:

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If you’re shipping dangerous or prohibited goods , you’ll also need:

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• MSDS

• License or permits (in both export and import countries)

• Other necessary documents that may be required

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Why do you need these documents?

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The documents help customs authorities determine the nature of the goods, where they are coming from, and how to calculate import duties and taxes.

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Who deals with Customs?

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It is common for the freight forwarders to deal with customs, and if they do provide this service, they will perceive a customs clearance fee.

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Normally, export duties & taxes are paid by the seller, while import duties & taxes are paid by the buyer.

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Download Our
‍ Import Guide

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How does the Customs Clearance process unfold?

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There is customs clearance in both exporting and importing countries, and the process involves 4 steps:

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Step 1 - Preparing and submitting documents required to facilitate the export or import

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Export Documentation: Purchase Order from Buyer, Commercial Invoice , Packing List , Bill of Lading or Air Waybill , Certificate of Origin, and any other documentation based on the type of goods (licenses or permits)

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Import Documentation: Commercial Invoice, Packing List, Bill of Lading or Air Waybill, Certificate of Origin, and any other documentation based on the type of goods (licenses or permits)

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Step 2 - Customs examination or assessment of the goods designated for export or import

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Step 3 - Payment of duties and taxes (in both export, and import countries)

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Step 4 - Collection of goods from Customs after the clearance is granted

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How long does the Customs Clearance process take?

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Roughly 1-2 days.

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If taxes are not applicable, the goods will get cleared through customs and continue with the delivery process within 20-30 minutes.

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Under Delivery and Duties Paid (DDP), the clearance process will be much faster because the taxes and duties have been paid in advance.

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Under Delivery and Duties Unpaid (DDU), the clearance process will be slowe r because taxes and duties have not been paid. In this case, the customs office will contact the importer for payment. This could take a day or two .

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When payment is finalized, the goods get clearance and are made ready for collection.

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Is your shipment stuck in Customs?

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Do not worry. Customs officials will notify you if your shipment is not getting cleared and they will tell you what to do.

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Usually, Customs will store your shipment in their warehouse for 25-30 days, which is plenty of time for you to solve the issue.

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The most common reason for clearance delays is missing or incorrect information on documents. So, make sure to double-check and triple-check your documents before submitting them.

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Daisy Jiang

Proud Co-Founder and CEO of Bookairfreight. Shortly after starting to work in the world of logistics, I was astonished at how difficult and time consuming it was for businesses to get their hands on a simple air freight quote. I saw this as an opportunity to really make a difference in people’s lives, and felt like I had to do something. It was the spark that lit the fire of Bookairfreight’s creation.

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