CUSTOMS CLEARANCE
Customs clearance is refers to the process of inspection, declaration, approval, detention and other procedures for imported and exported goods under the supervision of the customs.
A customs declaration is the process of submitting documents to customs to declare goods before they arrive for import or export. These two steps are closely linked and are typically handled by the carrier or designated agents.
Countries have different customs import regulations, including tariffs and fees for imported goods. If goods are detained by customs, they must be adjusted to comply with local rules. It’s crucial to review relevant laws and regulations for each country before importing.
WHAT ARE CUSTOMS CLEARANCE/DECLARATION/CUT-OFF/CLOSING AND CUSTOM RELEASE?
Customs Clearance
Customs clearance is the process required for importing and exporting goods to and from a country. It involves declaring goods to customs authorities, completing customs declarations, undergoing inspections, and paying taxes. Only after these steps can the owner or declarant collect the goods.
Transport vehicles must also declare their contents to customs and obtain permission for entry, exit, or transit. During this process, goods are supervised and cannot circulate freely. In freight forwarding, “customs clearance” refers to all operations related to imports, including declaration, inspection, and delivery.
Customs declaration
Customs declaration is one of the necessary steps to fulfil customs entry and exit procedures. It refers to the process in which the person in charge of the inbound and outbound means of transport, the consignee or consignor of goods and articles or their agents make declarations and go through relevant procedures in accordance with the law when passing through the customs control port.
Customs declaration is a specific action, generally the consignee or consignor of import and export or the agent declares specific cargo information to the customs, not only referring to the export customs but also including the import. The corresponding agent is the customs declaration agency.
CUT-OFF
As mentioned, each shipping company will have a time limit for customs declaration of the loaded goods. Usually, the declaration can be made about 4 days before sailing, and the customs release information will be stopped one or two days before sailing. This is the customs cut-off time.
Closing
Customs clearance is the process that follows customs release, involving the submission of information about the released and loaded goods for filing and archiving. It includes the export tax refund and foreign exchange write-off. The customs clearance date is when customs allows international ships to depart after all formalities and payments are completed.
Custom Release
Customs clearance is the process that includes customs declaration and other formalities required for importing and exporting goods. It involves completing procedures such as declaration, inspection, taxation, and release of goods as they enter or leave a country’s customs territory. In processing trade, a post-verification must also be completed. Once all these steps are finished, the process is called customs clearance.
THE IMPORT CUSTOMS CLEARANCE PROCESS USUALLY INCLUDES THE FOLLOWING STEPS
WHAT IS HS CODE? INTERNATIONAL HS CODE?
The main common economic language and code developed by the World Customs Organization (WCO) is a 6-digit code called the Harmonized System Code or HS Code. HS is the abbreviation of Harmonized System. HS Code is a commodity classification and coding system used by customs statistics, import and export management, and all parties involved in international trade.
It is the basis of a system used by 212 countries around the world. While some countries go straight to 6 digits, most extend it to 7-12 digits to allow for more precise classification.
In simple terms, the HS Code system is used to unify the definition standards of commodity classification by customs in various countries, classify commodities, and determine the corresponding tariffs and other management measures. The HS Code adopts the international standard unified 6-digit code, and the codes above 6 digits are determined by each country.
HS Code is generally 9 or 10 digits.
The first 4 digits of the product code are “Header”, which represents the type of product. This code is unified globally and can be checked online.
The fifth and sixth digits are “Sub”, which represent a more detailed analysis of the product, such as material classification and purpose of use.
The 7th to 10th digits represent the “quantity” (Item), and the codes above 6 digits are determined by each country for the corresponding products.
Necessity and Importance of HS Code
Malaysian Customs regulations require importers to accurately classify their goods with the correct HS Code on all documents. Incorrect classification can lead to tariff and tax errors, resulting in the need to repay misclassified amounts, incur fines, or face detention of the goods.
Do you have a deeper understanding of the HS Code? In addition to the HS Code, the documents required for imports also include Form E, K1 Form, import permits, etc., which are familiar to importers, and many other cumbersome and complicated related documents.
WHAT IS A CERTIFICATE OF ORIGIN
Certificate of origin has door-to-door use?
In international trade, the certificate of origin plays an important role. Sometimes, customs clearance is impossible without the certificate of origin. It is an important certificate for customs to collect tariffs. Preferential certificates of origin can enjoy specific tariff reductions and exemptions.
The main functions of the certificate of origin issued by the exporting country on the importing country are:
1)The main basis for determining tax rate treatment (whether to grant specific preferential treatment)
2)An important basis for trade statistics (country/region statistics of imported goods)
3)The basis for implementing foreign trade control measures such as import quantity control, anti-dumping, and anti-subsidy (determining which foreign trade control measures apply based on the country of origin)
4)Control the import of goods from specific countries and determine the basis for release (specific control based on the “nationality” of the goods)
5)Proof of the product’s intrinsic quality or basis for exchange.
Different types of certificates of origin have different requirements, such as:
The requirements for issuing the China - ASEAN Free Trade Area Certificate of Origin (FORM E Certificate) are as follows:
1) The headings of customs clearance documents such as packing list, invoice and bill of lading must be consistent with the heading of FORM E certificate. The heading of FORM E certificate is the first column: 1. Goods consigned from (exporter’s business name, address, country)
2) When applying for the issuance of FORM E certificate, you must provide these documents: a copy of the original bill of lading, a copy of the export declaration form, as well as the packing list and invoice.
What are the three main categories of certificates of origin?
Our country’s certificates of origin are mainly divided into three categories: non-preferential certificates of origin, preferential certificates of origin and special certificates of origin.
Special certificates of origin mainly include:
“Certificate of Origin for Agricultural Products Exported to the European Union”, “Certificate of Tobacco Authenticity”, “Kimberley Process International Certificate”, “Certificate of Origin for Handicrafts”, “Certificate of Origin Marking”, etc., as well as various certificates of origin such as “Certificate of Cheese Products”, “Certificate of Origin for Tokay Wine”, “Certificate of Authenticity for Emperor Wine”…
GB INTL FREIGHT
CHINA’S LEADING AND EXPERIENCED FREIGHT FORWARDING TEAM
