Customs Clearance Services, A Key to Successful Global Trade

Customs Clearance Services

Customs Clearance Services

Today, custom clearance is a critical step to move goods smoothly across borders. Without right handling, businesses may face heavy fines, goods being detained at customs, or even confiscation of goods.

Customs clearance services simplify the import/ export process and assist businesses navigate complex rules. Any company or individuals involved in international trade may need custom clearance services. This is more important for high-value or regulated goods.

What are customs clearance services?

Customs clearance services are a range of legal activities through which goods pass the customs of a country. These services ensure companies that their import/ export goods meet all legal requirements for entry or exit in a country. Customs clearance is a necessary step in international trade, as any error or delay in this process can result in confiscation of shipments, costly delays, or penalties.

Custom clearance services include:

  • Customs consultancy
  • Recognizing and advising any profitable trade agreement 
  • Document preparation like packing listed, invoices, and origin certification.
  • Ensuring compliance with customs rules in target markets
  • Cargo services
  • Smoothing necessary licenses and import/ export permits
  • Payment of fees such as taxes and duties
  • Goods categorizing and estimating based on international tariff codes
  • Providing post-clearance support for clients, such as compliance audits and record-keeping.
  • Resolving any inspections by Liaising with the relevant authorities

Understanding the types of customs clearance services

As a business involved in import/ export goods, it is very necessary to understand the customs clearance process. This can help you handle most challenges that occur during international transit. But, doing these services correctly requires deep customs knowledge and being updated. Therefore, It is advisable to ask an experienced and professional customs broker such as Persian International Trading (PITCO Shanghai) to handle the work. Now let’s take a look at the types of customs clearance.

Import clearance services

Import clearance process requires preparing and offering documentation to customs authorities, ensuring goods comply with local regulation, and duties payments. It is better to work with an expert to handle the import clearance process.

Import clearance experts guide you in document preparation and pass the complete import clearance procedure. So, you will be able to save a considerable amount of time as well.

Export clearance services

When the goods leave a country, export clearance is required. Export clearance may be done in the original country or the destination country. It involves giving an export declaration, and several key documentation such as commercial invoice, landing or airway bill, packing lists, and any necessary export permits, or licenses. This assures customs authorities your goods comply with both local export regulations and the requirements of the destination country. 

Working with a permitted customs broker can facilitate the export clearance procedure. These experts help you prepare export documentation and submit export declarations to customs. Screening for trade restrictions or sanctions, and assistance with export licensing and permits are the other export clearance services which customs brokers do.

Custom transit clearance services

Another type of customs service is transit clearance. Transit clearance lets goods move one or two countries, without paying taxes, or customs duties at each border, as long as the goods aren’t planned for sale or use in those countries.

Customs brokers can help you handle the transit process by managing customs seals, and bonded transport, and coordinating with multiple customs authorities en route. They also can simplify the issuance of transit documents such as T1, and TIR.  Working with reliable customs brokers avoids getting involved in the transit clearance process and going through all the stress associated with it.

Temporary import/ export clearance

In temporary import/ export clearance, goods are permitted to be brought into or out of a country for a limited time. In this case, there is no need to pay full duties, and taxes, as long as the goods aren’t planned for sale.

Temporary clearance services are commonly used for exhibition goods, samples, professional equipment, or the goods which are sent for repair. These services include handling ATA carnet processing, coordination of re-export process, and preparing documents of time-bound entry/ exit.

Breaking Down the Customs Clearance Process

Specialized customs clearance includes 3 key steps. It is not important if you are a budding ecommerce entrepreneur or a seasoned exporter. To ensure smooth international trade, you need to understand these steps of the customs clearance process.

Document inspection

When shipments arrive at a port of entry in the destination country, an officer checks the shipment paperwork to be completed and accurate. The most common documents required for clearance are:

  • A packing list
  • Proof of insurance
  • Transportation invoice
  •  Port spending (when applicable)
  • Air waybill, inland bill of lading, through bill of lading, and ocean bill of lading
  • Certificate of origin (when applicable)
  • Pre-shipment inspection certificate (when applicable)

When the paperwork is confirmed, the document will list a shipper and contact info of the receiver. The shipment will also include the export date and airway bill number. To avoid delays, it is best to ensure the paperwork is complete and accurate, and also be transparent about the products’ descriptions and their value.

Duty and tax payment

After your shipment has been verified, you must pay customs duties and taxes. There are several factors that affect the amount of duty and taxes such as the goods declared value, the type of goods, and the applicable customs rules. Moreover, you need to pay the processing, or inspection fees. 

Knowing the tax, and duty laws for your specific goods in the destination country, and being updated on global shipping policies save your time and money. In addition, if you use DDP (Delivery Duty Paid) shipping, you won’t need to make any additional payments.

Release of Shipment

Once duties and taxes are paid, and all paperwork is verified, shipments are released. The release process can vary depending on the type of imported goods but typically involves paying any customs duties or taxes owed. Now, the importer can take the possession of goods, and transit them to their final destination.

In some cases, goods need to meet certain requirements before they are released. So, the goods may be released on a conditional basis. For example, toxic items may be correctly labeled and packaged before they are cleared by customs, 

Customs clearance documents

The main documents that are needed to an specialized customs clearance are:

Customs declaration

Customs clearance is a formal statement about shipment. It contains the detailed information of the import/ export goods such as their quantity, value, and destination country.

Commercial invoice

Similar to the customs clearance, commercial invoice provides information about the goods being imported/ exported. This is an important document since customs authorities can assess taxes and duties based on it.

Origin certificate

This document confirms the origin country from which the goods are imported, or exported. Origin certificate is necessary in determining the applicable tariffs and duties.

Lading bill

It acts as an agreement between the carrier and the shipper. The bill confirms that the carrier has received the goods and determines the terms of transportation.

Packing list

A list that shows a clear inventory of the shipment. The contents of each package are listed in the packing list. Customs authorities can verify the commercial invoice by means of a packing list.

 Inaccurate, or incomplete documents can cause fines, and penalties, disrupting the whole shipping trend. Therefore, consulting with a certificated trade consultant such as Parsian International Trading (Shanghai) Co., Ltd helps you assure that these documents are accurate and complete for customs clearance.

Customs clearance services fee

Customs clearance services fees are different because each customs broker based on the type of clearance services, and the customs broker. However, the clearance services fees are determined based on the goods imported/ exported, their value, and point of origin.

Generally, customs clearance services fee covers these items:

  • Inspection fees by government agency’s
  • Customs clearance charge
  • Necessary delivery costs
  • Agency fees, or bank transfer fees

Time taken to complete customs clearance of goods

A customs clearance usually takes an average of 24 hours to complete. But, in some cases, it may take several days, depending on the type, and number of goods. Therefore, it is better to plan and allow for additional time.

Advantages of the customs clearance services

In today’s fast- paced economy, smooth and efficient cross-border movements of goods are really important for businesses. On the other hand, the customs regulations vary widely and are subject to changes. A reliable and experienced trade consultant can guide the company to handle the clearance process successfully. The key benefits of clearance services are:

  • Mitigating the risk of penalties, fines, or seizure of goods.
  • Ensuring document compliance with the laws of origin and destination country.
  • Minimizing costs by using suitable trade agreements
  • Avoiding delays at borders because of incomplete or inaccurate paperwork

PITCO Shanghai, the right custom clearance partner

Parsian International Trading (Shanghai) Co., Ltd (PITCO Shanghai), with 14 years of experience in international trade, offers specialized customs clearance, export, and transit services, focusing on the customs of China, Iran, and Canada. We manage complex business processes in a simple, transparent, and guaranteed manner, helping you deliver your goods faster, more cost-effectively, and with less risk to global markets.

Our specialized services are:

Customs clearance from Iran (Shahid Rajaee, Imam Khomeini, West, Free Zones like Aras)

Customs clearance from China (Shanghai, Guangzhou)

Customs clearance in Canada (Toronto, Vancouver)

In PICTO Shanghai, we :

  • Reduce delays by 40% with smart planning.
  • Network of 500+ suppliers in China and Iran.        
  • Real-time tracking of goods via our dedicated app.
  • Quality assurance with three-stage inspection (raw materials, production, packaging).
  • 24/7 support in Persian, Chinese, and English

Contact us today to ship your first consignment with complete confidence.

What is Customs Clearance?

Customs clearance refers to the legal and administrative process through which imported or exported goods pass through the customs of a country. Customs clearance is a critical step in international trade, as any error or delay in this process can result in goods being detained at customs, heavy fines, or even confiscation of goods.

What steps does the customs clearance process include?

This process includes document verification, payment of customs duties and taxes, compliance with the laws and regulations of the country of origin or destination, and obtaining the necessary permits.

What is the Importance of Customs Clearance?

•          Ensuring compliance with customs laws and destination country standards.
•          Preventing unnecessary delays and additional costs.
•          Facilitating the legal entry or exit of goods into target markets.

What is Export of Goods?

Export refers to the process of sending goods from one country to another for sale or use in international markets. Export not only helps develop new markets but also plays a key role in the economic growth of countries.

What steps does the process of Exporting Goods include?

This process includes preparing the necessary documentation (such as proforma invoices, certificates of origin, and bills of lading), adhering to the export laws of the origin country, and complying with the import regulations of the destination country.

What is the Importance of Export?

•          Creating new business opportunities in global markets.
•          Increasing foreign revenue and strengthening the national economy.
•          Expanding international trade relations and transferring technology.

What is Transit of Goods?

Transit refers to the movement of goods from one country to another through one or more intermediary countries. Goods transit can occur through various transportation methods (air, sea, land), and it involves meticulous documentation management and coordination with the customs authorities of the transit countries

What is the transit of goods used for?

This process is typically used for goods whose final destination is outside the country of origin, and it requires adherence to the customs laws of the countries through which the goods pass.

What is the Importance of Transit?

•          Reducing transportation costs by selecting optimal routes.
•          Facilitating international trade by passing goods through multiple borders.
•          Ensuring timely delivery of goods to their final destination.

How PITCO Shanghai can help you?

PITCO Shanghai, with 14 years of experience in international trade, offers specialized customs clearance, export, and transit services, focusing on the customs of China, Iran, and Canada. We manage complex business processes in a simple, transparent, and guaranteed manner, helping you deliver your goods faster, more cost-effectively, and with less risk to global markets.
At PITCO Shanghai, we minimize these risks to near zero by combining technical expertise, a global network of partners, and cutting-edge technology.

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