How Long Does Customs Take?

Many businesses view their expansion into the global markets as a significant opportunity. By selling goods to customers across the globe, in turn reaching new markets, their customer base increases. But shipping goods across borders is not as easy as it might seem, especially when it comes to customs clearance and fulfilling international trade regulations. 

Customs clearance is an important step in which even one mistake in the form of incorrect documentation can result in delay, penalty, or even greater consequences. In this article, we are going to explore the entire process of customs clearance to learn how much time it would take, and how businesses can successfully plan beforehand for a smooth customs clearance. 

What Is Customs Clearance? 

In the case of international shipping, passing through customs is an essential step to make the whole process successful. Goods being transported should comply with the country’s regulations as well as requirements. No matter whether the shipment is transported through ocean freight, air freight, or rail freight, it has to undergo customs clearance.

Customs clearance is the official process that allows goods to enter or leave a country. It involves checking documents and meeting legal requirements, and it is usually handled by a licensed customs broker.

Why Is My Cargo Stuck in Customs?

Customs procedure helps to make sure that the particular shipment fulfils every import and export law, which includes the complete payment of due taxes or duties and getting the documents verified.

Missing documents, inconsistency, or non-compliance may lead to delay, penalty, or even confiscation and destruction of the shipment. This is why you should submit the appropriate details of goods being transferred, their value, origin as well as their destination.

And when cargo arrives at the destination port, remember to pay the taxes for a timely customs release.

Except for the compliance failure and unpaid taxes, customs clearance delay can happen for many other reasons, such as random customs inspection.

The customs handling process requires good coordination between exporters, importers, and customs officials to facilitate a seamless and legal transfer of goods.

Customs Clearance Process 

To find out how long customs take, let us first look at the entire process of customs clearance. Here are the major steps involved: 

Paper Verification

The shipment’s paperwork is reviewed thoroughly by a customs officer to make sure that it is consistent and accurate. International shipment documentation includes items such as the commercial invoice, which lists the shipper’s and receiver’s contact information, the bill of lading number, the shipment date, and other key details about the goods.

Customs Officer Assessment

A customs officer is responsible for inspecting your shipment and determining the applicable fees, which could be based on the type and value of goods, and the particular regulations.

In the case that the total customs value exceeds that of the taxable threshold, the officer then verifies whether and how much the shipment’s taxes and duties are paid.

Sometimes, customs will screen and inspect your cargo for anything that could pose a threat or be part of smuggling. This might be random, or depending on the risk of your cargo type.

Payment of Duties and Taxes

For the shipment to proceed, customs require that all the pending taxes and duties be paid and settled. In most cases, the importer pays the fees. While there are some exceptions. For example, if you and your supplier have agreed on a Delivery Duty Paid (DDP) shipping term, taxes as well as duties are covered by your supplier. 

Besides duties and taxes, fees caused by possible delays and brokerage fees also impact the overall cost of shipping. You should take these customs clearance fees into consideration.

Shipment Release

Finally, once all the checks and taxes are paid, all pending goods are cleared and sent off to their end destination. For port-to-port shipping, this time, you can go to the port (with your bill of lading or the arrival notice) to pick up your cargo. For door-to-door shipping, on the other hand, your freight forwarder, like Foresmart, will arrange trailers to the port and then deliver your cargo to the final address.

How Long Does Customs Clearance Take?

The time customs clearance takes varies depending on the complexity of documents, countries’ regulations, the cargo type, etc.

If the goods are being exported from China, the shipper or the agent should declare to China Customs at least 24 hours before loading for export.

For air freight, the import customs and clearance process will be 1 to 2 days. For sea freight, the import customs clearance may take a longer time. But sometimes the import customs declaration can happen before the goods arrive at the destination port. For instance, for goods shipping from China to the USA, you can file a customs entry one week before the vessel reaches the port. Pre-filing helps speed up customs clearance, so there’s less waiting time after arrival.

However, if your cargo is chosen for customs inspection, the waiting time will be longer, and there are attached expensive storage fees, demurrage, or detention. Normally, one to two weeks are expected, according to the level of customs examination.

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How to Plan for Customs Clearance? 

To reduce potential risks in terms of delays as well as additional fees that you might not be expecting at customs, it is best if you prepare well before the time when you have to send your shipment internationally. Below are some helpful guidelines: 

Prepare Essential International Shipping Documents 

Even though you might not require every document mentioned below, knowing the purpose of each document can clarify the importing and exporting process: 

• Commercial Invoice. An official document that is also important in terms of calculating customs valuation. It entails everything about the goods that are sold, their quantity, and how much value they possess.

• Packing List. A description of the contents included in the shipment, the dimensions and weight of the items, along with their particular packaging information.

• Certificates of Origin. A document that certifies the manufacturing country of the shipping items. They are crucial when you have to determine the tariffs and trade agreements. 

• Shipper’s Letter of Instruction. They are directions that are given to the freight forwarder in terms of handling, shipping, and routing the goods. 

• Inland Bill of Lading. This includes a contract that tells how the goods will be transported overland to the nearby port or logistics hub. 

• Ocean Bill of Lading. This is an agreement that is made when the goods need to be transported internationally by sea. The ocean carrier issues and signs it as proof that the cargo has been received and loaded onto the vessel.

• Air Waybill. When your freight has to travel by air, then the air waybill is made and sent by the airline as proof that they have received your shipment and will transport it. 

• Letter of Credit. This is a guarantee issued by the bank. If the delivery meets all the conditions that are required, then the seller will receive the payment from the bank. 

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Navigating International Shipping Regulations 

Shipping regulations vary depending on the country the shipment is coming from and the country it is going to. Product restrictions, packaging standards, and tax rules can change accordingly. Staying up to date helps you to avoid any potential non-compliance problems, which will help in a smoother transaction. Many logistics providers, especially the larger ones like FedEx, always share the latest updates regarding regulatory changes. 

Confirm Duties and Taxes 

Taxes and duties play an important role in international shipping. The governments that receive the shipments impose particular charges such as the Goods and Services Tax (GST), Value Added Tax (VAT), and other taxes to generate revenue and regulate imports. For example, some countries may impose an additional tax, particularly on luxury items. These charges differ according to the incoming shipment’s value, type, and manufacturing country. 

In order to avoid future tax surprises, you should calculate and confirm such costs in advance to prevent any potential unexpected charges.

In short, you should learn about different aspects of international shipping, like the documentation, regulations, and duties. And choosing a qualified shipping partner who can provide customs clearance services matters as well, as they are experienced in international shipping and can help you reduce risks of delayed customs clearance or additional fees.

Conclusion 

The entire customs clearance process involves necessary steps like document verification and inspection, assessing duties, and release of goods, which requires coordination between importers, shippers, customs brokers, and customs officials.

Businesses should plan the proper documentation required for customs clearance to avoid delays. Furthermore, finding a reliable freight forwarder like Foresmart will save you time and help streamline the whole shipping process, giving you a competitive edge in the international market. 

FAQs 

Customs clearance completed means that customs has reviewed and approved your shipment to enter the country. After clearance, your cargo can be handed over for domestic transport, such as trucking, rail, or local delivery, to reach its final destination.

Usually, freight forwarders offer import brokerage along with transport services. You can also find customs brokerage online, but you have to choose a qualified one that aligns with your particular needs, since the broker may specialise in certain routes or cargo. Review quotes and credentials before making the decision.

On average, customs clearance takes about 24 hours, but in some cases, like customs inspection, it could take days or even weeks.