A question that importers should be asking when bringing goods into the US is: how does customs clearance work? Customs clearance is the process of clearing goods through customs as they enter a country. In the US, importers ensure shipments comply with CBP (Customs and Border Protection) regulations. They do this by providing various documents to the CBP depending on the shipment. Some can include the commercial invoice, packing list, bill of lading, and more. Due to the documentation and compliance required by the shipper, clearance can be difficult for the average importer. This article will explain how customs clearance works and the consequences of not understanding the process.
Why Is It Important to Know How Customs Clearance Works?
It is essential to understand how customs clearance works because the consequences of not understanding it can be significant. The purpose of clearance is to ensure that imports follow laws and pay local taxes. A major consequence is that not understanding the process can lead to significant delays. For example, not providing the correct documentation may lead to holds at ports. When a container stays at a port for several days, it can lead to demurrage charges. Financial penalties can also come from incorrect filings, along with the potential of cargo seizure. Importers with many customers could feel a strain from not understanding customs clearance.
How Does Customs Clearance Work?
The clearance process begins before the shipper decides to import, with the necessary documentation prepared. A list of the required paperwork can be found here. Shippers should also ensure that they determine the correct Harmonized Tariff Schedule (HTS) classification. An Importer Security Filing (ISF), also known as a 10+2, should also be done 24 hours before the vessel departs from the foreign port. Another consideration for shippers is that specified imports may require special permits and licenses. Upon arrival, CBP officials will check the paperwork to verify compliance and tax valuation. Once the final payment is made to customs, they release the shipment, and it can move to the final destination.
While the process may seem straightforward on paper, it tends to be challenging for inexperienced and regular shippers. A small disruption can halt the entire process and lead to delays and monetary loss. An ideal way to begin when importing is by contacting a customs broker. Customs brokers coordinate cargo release from customs by ensuring it complies with the laws and regulations. They do this by handling the necessary documentation, permits, duties, classification, and more on behalf of the shipper. Brokers also provide consultation services to educate the shipper on how to successfully clear their goods from customs. Reach Customs Made Easy at 305-506-1348 or info@customsmadeeasy.com to begin clearing your goods anywhere internationally.
