Knowing how to avoid the common mistake importers make during customs clearance is essential for cost efficiency and preventing fines, and shipment rejections. Even a small mistake can lead to extra costs, lost income, and unhappy customers that can harm your reputation.
At PITCO, we’ve seen firsthand the mistakes businesses make when moving cargo through the customs clearance process in the Middle East, China, and Canada. In this article, we’ll explain the most common mistakes in 2025 and how to avoid them. Our goal is to help you move smoothly through customs, save money, and keep your focus on growing your business.
1. Incomplete or Incorrect Documentation
One of the most common mistakes is providing inaccurate paperwork. Even small mismatches between the Form M, Bill of Lading, Commercial Invoice, and Packing List can raise red flags with customs officers and delay clearance. To prevent this, always review your documents carefully to make sure all details are consistent. Descriptions of goods should match exactly across every form, and it’s wise to work with experienced clearing agents to ensure everything is filed correctly from the start.
2. Overlooking Regulatory Requirements
Another common mistake is overlooking regulatory requirements. In many countries, specific goods must be approved by government agencies before they can clear customs. For example, in Canada, food, health, and cosmetic products often require authorization from the Canadian Food Inspection Agency (CFIA) or Health Canada. Importers who fail to secure these approvals before shipment risk delays, additional inspection fees, or even product confiscation.
To avoid such issues, always check whether your goods fall under regulated categories and get the required certificates or permits before your cargo reaches the border.
3. Ignoring Cargo Insurance
Some businesses try to cut costs by skipping cargo insurance, but this can be a costly mistake. For example, in Canada, insurance isn’t always mandatory, yet it’s strongly recommended because unexpected damage, theft, or loss during transit can result in significant financial setbacks. Without proper coverage, importers bear the full cost of any incident.
To prevent such losses, it’s important to arrange insurance before shipping and make sure the policy covers the full cargo value, freight, and any potential risks along the supply chain.
4. Declaring the wrong Customs Value
Providing the wrong value is one of the most frequent mistakes noticed by HMRC. Some importers try to lower their duty payments by declaring a lower value for their goods. However, modern customs systems can easily detect discrepancies by comparing declared values with global data. When caught, importers risk heavy fines, shipment seizure, and serious harm to their reputation.
To avoid these problems, always declare the true value of your goods. Remember that honesty and compliance save far more than trying to take shortcuts in the long run.
5. Misclassification of Goods
Declaring goods under the wrong customs classification can cause serious problems, even if the duty rate stays the same. HMRC may reject the declaration, and an incorrect code can result in paying too much or too little duty. Since authorities check only a small sample of goods, mistakes can go unnoticed until they lead to fines or other penalties later on.
For new importers, correctly classifying products can be challenging. Each invoice should include a clear description of every item, its purpose, materials, and main characteristics. Even if a freight forwarder prepares the documentation, getting guidance from a customs expert can help ensure the right codes are used.
As your business grows, keeping a record of commonly shipped products and their correct classifications will make future declarations more accurate, speed up the clearance process, and minimize the chance of expensive mistakes.
6. Poor Packaging and Labeling
Improperly packaged or labeled cargo can lead to damage, rejection, or denied insurance claims. For exports, it may even result in shipments being refused in the destination country.
To avoid these issues, you always need to use strong, internationally accepted packaging. Plus, and it’s important to label each item clearly with its contents, weight, and handling instructions.
7. Failing to Track Shipment Status
One common mistake in customs clearance is not monitoring the status of shipments. Importers who fail to track their cargo can miss updates on delays, inspections, or changes in arrival schedules. This lack of oversight can lead to unexpected storage fees, missed delivery deadlines, and increased stress during the clearance process. Additionally, if an issue arises, such as customs holding the goods or missing documentation, the importer may not be aware in time to take corrective action.
To avoid these problems, always use tracking tools provided by your freight forwarder or shipping company. Regularly check updates on your shipment’s location and expected arrival.
8. Neglecting to Prepare for Customs Inspections
Even when all paperwork is correct, customs officers may randomly inspect shipments to verify contents. Importers who are unprepared risk delays, additional inspection fees, or even temporary seizure of goods. Lack of preparation can also create confusion and increase the likelihood of errors during the inspection process.
To prevent these issues, make sure all cargo is properly documented, clearly labeled, and organized for easy access. Keep supporting documents, such as invoices and permits, ready for inspection. Working closely with experienced customs agents can also help anticipate what inspectors may require.
9. Relying on Unlicensed or Inexperienced Agents
Using inexperienced or unlicensed clearing agents can cause serious problems. They may mishandle paperwork, miss important deadlines, or even take part in practices that put the importer at risk of fines or penalties.
To avoid these issues, always work with licensed customs agents and choose trusted terminals, such as Parsian International Trading (Shanghai) Co., Ltd. (PITCO Shanghai). All processes in PITCO are transparent and our experts have proven experience.
The role of a customs broker
Customs clearance is rather complex, but most of the hurdles importers face are avoidable. Hiring an international customs broker can be a smart solution, especially for new importers. A broker helps ensure compliance with customs regulations, correctly classifies goods, and manages all necessary documentation. While there is a cost involved, working with a broker often saves money and stress in the long run by preventing misfiled declarations, delays, and potential fines.
With its global reach, industry expertise, and dedication to staying updated on regulatory changes, PITCO’s customs services can be a reliable partner.
Parsian International Trading (Shanghai) Co., Ltd. is a company that operates in the field of import and export throughout the Middle East, China and Canada. At PITCO Shanghai, we assist with customs procedures and help streamline cross-border trade, making the entire process smoother and more efficient for businesses of all sizes. Contact us.
Improper customs clearance can lead to significant delays, penalties, storage fees, and even seizure of goods. It’s crucial for maintaining a smooth supply chain and avoiding costly disruptions, especially when dealing with the complexities of trade between regions like the Middle East, China, and Canada.
Common mistakes include inaccurate HS code classification, incomplete documentation, incorrect valuation, failing to meet labeling requirements, and lack of understanding of specific import regulations in destination countries.
Yes! China has evolving import policies & strict documentation requirements. Canada emphasizes product safety and compliance with standards. The Middle East presents varying regulations depending on the specific country (e.g., Saudi Arabia’s labeling rules). Our expertise covers these nuances.
Valuation refers to the declared value of your goods. Accurate valuation is crucial for calculating duties and taxes correctly. Under- or over-valuing can lead to penalties.
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Pitco is an Iranian-Chinese company that operates in the field of export and import from three countries: Canada, China and Iran. Our company’s full name is Parsian International Trading (Shanghai) Co., Ltd. We have been operating in the field of export and import for more than 14 years. To learn more about us and our services, you can connect with us through social networks.