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Customs Clearance

Customs Clearance

Ever wondered what happens when your international shipment arrives in customs, and what you can do to speed up the delivery of your items?

Ask any importer and exporter, chances are they all will say paperwork is one of the biggest headaches when making shipments.

In this article we will look at what customs clearance is, how it works and what you can do to speed it up as much as possible, to prevent delivery of your shipments being affected by inspections and delays.

What is Customs Clearance?

Before any international shipment can be delivered to a customer, it must clear customs.

Customs clearance is simply the process of moving goods through customs once official permission has been given to bring the goods into a country (import) and or out of the country (export).

Also, customs clearance means a document is issued by the customs authority to a shipper indicating that all duties have been paid and the shipper’s goods have been inspected and is cleared for import/export.

Customs clearance is an even simpler process when a customs broker is used to refer to during imports and exports.

What is a Customs Broker?

A customs broker is defined as a private logistics expert, partnership, or company licensed, regulated and empowered by the specific countries customs service to assist importers and exporters in meeting government requirements governing imports and exports.

A broker will submit all the necessary information and appropriate payments to Customs on behalf of their clients and charge a fee for this service. They must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.

Breaking Down the Customs Clearance Process

Every country imposes import duties and taxes on goods crossing their borders. This helps to generate income, protect the economy, environment, and the citizenry.

But what actually happens within a customs office? For many merchants and individuals, this question is a stumbling block on the way to lucrative cross-border shipping.

For 99% of merchants, though, clearing customs is a simple 4 step process. All you need is a few documents and you're done.

  1. Paperwork Verification

Once submitted a customs officer will verify that the paperwork completed for shipments are correct. Once the paperwork is verified, the document will list a shipper and contact info of the receiver. The shipment will also include the export date and airway bill number.

The following documents are required when clearing commercial imports and exports for Zimbabwe:

  • Bill of Entry (Form 21)
  • Suppliers’ invoices
  • Export or Transit Bill of Entry from the country of export (where applicable)
  • Value Declaration Forms.
  • Consignment notes, for instance Rail Advice Notes or Air Way Bill (AWB) or Bill of Lading
  • Freight statements
  • Cargo manifests
  • Insurance Statement
  • Certificates of Origin where preference is claimed
  • Port charges invoices (where applicable)
  • Original permits
  • Licences, Duty Free Certificates, Rebate Letters, Value Rulings (where applicable)
  • Agent / Importer’s Worksheet

Importers are encouraged to engage the services of professional clearing agents because of the complexities of the valuation system and the Harmonised System of classification of goods.

  1. Customs Officer Checks

A customs officer will see what fees may be applied to a shipment. Depending on the type of goods, their value, and laws that the importing country enforces. If the value of goods surpasses a taxable minimum (sometimes know as De Minimis), the officer will check to see if taxes and duties have been paid.

  1. Payments, Taxes, Duties

If there are outstanding taxes and duties, customs will ask that they are paid. There are two options for payment, with one being DDU (Deliver Duty Unpaid) and the other being DDP (Deliver Duty Paid). As a result, if a shipment is marked as DDP, then a payment of taxes and duties were paid for. These services may be offered at a fixed price when you pay for a label. This process can be expensive as brokers are independent with differing fee charges. Brokerage, storage, late payment, and various fees may apply which will affect the total shipment fee.

  1. Release of Shipment

Once taxes and duties are paid, shipments are released. From this point, if paperwork, duties, and taxes are handled properly then the goods should be shipped to their destination.

Advantages of Customs Brokerage

A customs broker will be able to take care of shipping for products. A customs brokerage firm will verify if you’re complying with customs regulations. If custom regulations are not met, it will result in a time delay.

It is a well known fact that any company will be able to save money on duties and time by retaining the services of a  customs broker. A customs broker will guide a company so that it is able to avoid shipment problems that will also follow trade agreement opportunities. There are multiple trade agreements that are dedicated to scaling down duties and taxes. In Africa these trade agreements include SACU, AfCFTA, TDCA and SADC-FTA. .

A customs broker will tell you if they’re unable to handle products that you want to ship. If this occurs, they will be able to defer your shipment in the safest way possible.

Is Customs Clearance Right for You?

FAMS International is a specialist customs broker. With over 30 years of experience, we are experts in our field and we make it our business to clear your goods through customs.

From the representation of the client during customs examination, assessments, payment of duty and the delivery of cargo from the customs after clearance has been completed we will be there eery step of the way with you.

For more information please get in touch with us. One of our many experienced agents will be more than willing to assist.