Custom Clearance Definition

Here, we are going to define customs clearance and its process.

Briefly, custom clearance may be defined as a process during which goods pass through custom territory of a country for import or export.

Customs clearance may also be defined as documents presented to a shipping company and indicate the payment of customs duties and license to carry goods.

These are simple definitions of custom clearance. Our information management has provided a better definition of customs clearance. Custom clearance means preparing and submitting required documents, on behalf of the owner of the goods, in order to facilitate export and import to the country and carrying out customs formalities, including payment of fees and cargo delivery and clearance, together with relevant documents.

Here are some documents that are required during import and export of the goods.

Import Documents:         

Import documents are evidence that are required during import process. Some of these documents include:

Buyer’s order, Commercial Invoice (CI), Country of Origin certificate, Bill of Landing, arrival notice, Packing List (PL), or any other document that is required and demanded at the request of the buyer or according to the provisions of financial institutions.

Export Documents:

Buyer’s order, Commercial Invoice (CI), Country of Origin certificate, Packing List (PL), invoice of shipment, Bill of Landing, or any other document that is required and demanded at the request of the buyer or financial institutions according to LC provisions, to import goods to their country.

Items listed above are a summary and glimpse of the clearance process.

Transportation of your goods at any port and customs of any country in the world have to go through the clearance process.

The important point is that each country has its own customs regulations which can be somewhat different. It is even possible that customs regulations of two ports of a same country be different from each other. So having expertise, experience, and information for clearance of exports and imports is very important.

These experts of clearance are called customs brokers and fees that they receive is their commission as a broker.

If you do not choose your customs brokers or clearance agent carefully, you may get into lots of troubles. Containers that carrying your goods are used as their warehouse during clearance. The longer your clearance process, the higher your warehousing cost would be. This results in more custom clearance fees and therefore increases the finished cost of goods for you. In addition to financial losses, it lags you in competition with rivals of today's competitive markets.

If there is a problem with the brokers work, it can make the clearance process so long and costly that multiplies your clearance cost.

In addition to the costs incurred to your business, delays in clearance, due to broker’s failure, can disrupt the supply of goods by you and lead to dissatisfaction and loss of your customers.

Shipping companies can do the customs clearance process but you can delegate this work to other companies and choose your broker, as well.

When selecting a freight and shipping company, give priority to ability and experience because if it fails in doing the clearance properly, the costs that will be imposed on you is much more than the brokers commission. If you trust in experience of your broker, paying a little more and avoiding later troubles is the best choice.

By observing two following points, you can do clearance process faster and easier:

  1. Proper Container Loading 

Proper container loading is one of the most important issues that needs to be considered. The shipping company is responsible for proper loading of goods in the container as much as transporting the containers. If this is not done properly, it would bring about negative consequences for you at the custom. Not observing this significant issue may also lead to more curiosity of the appraisers to look in to the shipments more closely which means waste of your time and money. Due to the sensitivity of the issue, transportation companies who do not have enough experience in international transportation are better to avoid entering this field.

  1. Providing customs brokers and freight forwarder with full and accurate details of cargo

In the process of international transportation, there is administrative bureaucracy, paperwork, and lots of trouble. International shipping is a complex process and requires high expertise.

Ebrahimi Trading Group, with years of experience in customs clearance and high expertise, can undertake all your customs formalities so that you can focus of your business without having the slightest concern about your cargo and be sure of its fast, accurate, and low-cost clearance.

It is important to give detailed information of your cargo to the freight forwarder. Information such list of goods in cargo, inventory and cargo value, and related custom costs will result in quick assessment and faster clearance of your cargo.

Naturally, you prefer low risk valuation of your shipment at the custom territory. Ebrahimi Trading Group by taking the responsibility of all customs matters, administrative procedures, and related paperwork, guarantees passing through customs clearance procedures and solving potential issues until you receive your shipment.  

For more information and to consult with our experts contact Ebrahimi Trading Group.