Customs Clearance Made Easy: Your Guide to International Trade

B2B businesses and e-commerce companies involved in foreign economic activity face customs authorities both in their own country and in the countries where products are sourced from. In international trade, customs clearance is a mandatory element. It determines how quickly and efficiently goods can cross borders, avoiding unnecessary delays or additional costs. For companies operating in the B2B sector, the customs clearance process is not just a technical aspect but a critical part of logistics.

Understanding the customs clearance procedure, document requirements, and potential issues helps avoid unnecessary financial losses and legal violations. Moreover, fast customs clearance directly impacts a B2B company’s reputation in its market segment.

This material will analyze the aspects of cargo customs clearance, from basic concepts to solving the most common issues that arise in practice. This article will be your practical guide. We will explain the customs clearance process, provide a list of standard customs documents, identify potential costs, and methods for optimization. We will also discuss how to avoid delays and simplify the cargo clearance procedure. For professionals in international trade, this will not only be useful information, but also the basis for making effective decisions.

What is customs clearance?

Customs clearance is an official process that is under strict government control. It is implemented for several reasons.

First, goods that need to go through customs clearance at the border (either export or import) must have customs duties (fees) correctly assessed according to established tariffs. The main goal of these fees is to ensure the state treasury is filled and that the customs legislation of the country importing or exporting goods is followed. The procedure includes checking whether the cargo complies with legislative and technical requirements and the payment of duties, taxes, and fees.

Second, the customs legislation of each state is designed to protect the domestic market and national producers from cheap imports. This is known as protectionist policy, which allows regulating import volumes through high customs tariffs. Therefore, e-commerce and B2B companies should carefully study the customs legislation of the destination countries for their cargo.

The customs clearance process is mandatory for all types of international transportation, whether by sea, air, road, or rail. It applies to both legal entities and individuals. Customs clearance involves submitting a full set of documents, accurately completing the customs declaration, and paying all necessary fees.

In international trade practice, customs clearance ensures the legitimacy of cargo transportation and eliminates the risks of violating local laws. Successfully completing this process guarantees that goods will quickly reach their final destination without unnecessary delays.

What does the customs clearance process consist of?

Customs clearance is a multi-stage process. It includes a series of consecutive steps that ensure the legal crossing of goods across the border, both in export and import. Each stage requires the preparation of a corresponding set of documents that confirm the legality of the operations.

Based on this, customs brokers strongly recommend preparing for customs clearance in advance. This significantly accelerates the customs procedures and guarantees timely fulfillment of obligations under international contracts by brands.

To better understand the structure of customs clearance, let’s look at the main stages of the process.

1. Document verification           
   At the first stage, customs authorities check the cargo accompanying documentation. Attention is paid to the completeness of the data, the correctness of the documentation, and whether the data entered matches the actual condition of the cargo. Errors or missing documents may cause delays or even fines.
2. Customs fees and taxes determination           
   The next step is calculating the customs payments. Their amount depends on several factors: the types of goods, their value, the country of origin, and the importing country. For imports to EU countries, for example, unified customs tariffs are used, while in the USA, goods valued over 760 EUR are subject to taxation.
3. Payment of customs fees and taxes           
   After calculating the customs fees, customs authorities issue an invoice to the company, which must be paid within the set deadline. Documents such as an invoice, the company’s tax number, a cargo description, etc., are provided for this. Late payment leads to additional delays.
4. Physical inspection of goods           
   Customs authorities may initiate an additional inspection of cargo containers to ensure that the goods match the documentation. This is particularly true for products with high risks of legislative violations or those subject to enhanced control.
5. Completion of customs clearance           
   The final stage is the issuance of a permit for the further transportation of goods. This is only possible after verifying documents, paying duties and taxes, and, if necessary, conducting an inspection.

During the customs clearance process, the following typical problems may arise:

• Insufficient documentation: the absence of even one document may halt the process.
• Errors in the Harmonized System Code (HS Code): incorrect classification of goods can lead to fines and complications in passing customs control.
• Counterfeit or prohibited goods: such cargo is invariably confiscated by customs.
• Failure to meet packaging requirements: if the cargo packaging does not meet size or weight standards, it may be delayed.

Therefore, timely preparation of the cargo and customs documents, as well as a profound understanding of each stage, is the key to smooth customs clearance without unnecessary difficulties.

Documents for customs clearance

Customs clearance requires the provision of a full set of accompanying documents. B2B and e-commerce companies operating on international markets or planning to enter them must carefully approach their preparation. Even one mistake can lead to a delay in the cargo or even a refusal of clearance. Below is a list of the main documents required for customs clearance, with a detailed explanation of what they should contain:

1. Pro forma invoice

The pro forma invoice serves as the basis for the transaction. It should contain:

• The name and address of the seller and the buyer.
• A description of the goods (name, model, article number).
• Quantity of the goods.
• Agreed price per unit and total amount.
• Delivery terms according to Incoterms.
• Currency of the transaction.

2. Commercial invoice

A financial document confirming the sale. It must include:

• The same data as the pro forma invoice.
• The date of issuance and the unique invoice number.
• Bank details for payment.
• Information about the country of origin of the goods.

3. Certificate of origin

The certificate confirms the country of manufacture of the goods. The document includes:

• The name of the manufacturing country.
• The seal of the authorized body (chamber of commerce).
• Information about the goods and their HS code.

4. Free sale certificate

The document confirms that the goods are legally sold on the domestic market of the manufacturing country. It is typically used for food products, cosmetics, and pharmaceuticals.

5. Packing list

A document for identifying the cargo contents. It must include:

• A list of goods with quantity, weight (gross and net).
• Type of packaging (boxes, pallets, bags, etc.).
• Dimensions and volume of each package.
• Cargo markings.

6. Transportation documents

• Bill of lading – the contract for sea transport, indicating the consignee, shipper, route, and delivery terms. Used when the container is shipped by sea.
• Air waybill – a document containing information about air transport, including the route, cargo weight, and airline details. Used for air delivery.
• Inland bill of lading – used for domestic transport, indicating the shipper, consignee, and cargo details.

7. Shipper’s letter of instruction

A document with clear instructions for the carrier or customs broker. The letter includes:

• Delivery terms (port of departure, port of arrival).
• Specific cargo handling requirements (temperature conditions, special instructions).
• Contact details of the parties.

8. Shipper’s declaration

A mandatory document for dangerous goods. It must include:

• Information about the goods, confirming they meet safety standards.
• Signatures and certification from the shipper.

9. Letter of credit

A letter of credit is used to confirm financial guarantees between the seller and buyer. It includes:

• Terms of the letter of credit.
• The amount, payment terms, and method of payment.

10. Certificates of conformity

• Technical regulations or certificates of quality standards (ISO, CE).
• Veterinary or phytosanitary documents if the goods are food products or raw materials.

11. Export or import license

A license is required for goods that need special permission to cross the border. It must clearly indicate:

• The name of the goods and their HS code.
• Signature and seal of the authorized body.

12. Customs declaration

The main document for customs clearance. The declaration must include:

• A full description of the goods and their HS code.
• The value, quantity, and country of origin of the goods.
• Information about the shipper and consignee.
• The number of customs duties.

13. Cargo insurance policy

A document that confirms the insurance. It includes:

• The amount of insurance coverage.
• Types of risks covered (damage, loss).
• The validity period of the insurance.

14. Proof of payment of customs duties and taxes

A document indicating the amounts paid, dates, and payment details. Early preparation of all documents is the key to successful customs clearance without the risk of delays and fines. For complex cases, it is recommended to involve professional customs brokers who will ensure compliance with all legal requirements.

Each of these documents contributes to the overall customs clearance time and can impact the cost of customs clearance. Therefore, it's crucial to prepare them in advance to avoid customs clearance delays. Be aware of the customs clearance regulations that vary by country, as they could affect the customs clearance request and documents needed.

Customs declaration: types of forms, content

A customs declaration is the main document used for regulating export-import operations and the transit of goods. The declaration records full information about the cargo and serves as a data source for customs authorities. A correctly completed declaration ensures smooth customs clearance procedures.

Main types of customs declarations

1. Export declaration (EX1):         
   Used for goods exported outside the customs territory. It includes details about the sender, recipient, a list of goods, HS codes, value, and delivery terms.
2. Import declaration (IM4):         
   Used for the import of products. It includes product characteristics, customs value, Harmonized System codes, country of origin, and participant details.
3. Transit declaration (T1):         
   Required for the movement of goods through the customs territory without releasing them into free circulation. It includes the route, transportation details, and product characteristics.

What a customs declaration should contain?

• Parties to the agreement         
  Detailed information about the sender and recipient (names, addresses, contacts).
• Cargo description         
  A full description of the goods: name, HS code, quantity, weight (gross and net), and customs value.
• Delivery terms         
  Information based on international Incoterms rules, including the distribution of costs and risks between the parties.
• Transportation data         
  Route, type of transport, flight or container number, and carrier.
• Country of origin         
  The declaration must confirm the production of the goods in a specific country, which may affect tariff preferences.

Customs declaration composition: what’s needed for smooth customs processing         
To ensure correct customs clearance, prepare a few important documents. Depending on the types of goods and their value, customs authorities may require different forms and additional documents.

• Commercial invoice         
  This is the main document that customs uses to determine the goods' value. If the goods have no commercial value (e.g., gifts or samples), a pro forma invoice with estimated value is sufficient.
• Customs value declaration         
  This document contains information about the goods' value, delivery terms, purchase price, exchange rates, and additional costs (e.g., delivery or insurance). Important: it’s not always required if the goods' value is below 20,000 EUR, or customs duties are not dependent on value.
• Documents for preferential rules or special conditions         
  To use customs preferences or special conditions, additional documents are needed. For example, an EUR.1 certificate to confirm the country of origin.
• Additional documents         
  Depending on the product type, quality certificates, certificates of origin, import permits, or excise duty confirmations may be required. Some goods also require documents from other sectors of law, such as CITES certificates for endangered species or veterinary certificates for animal products.
• Transport documents         
  Sometimes documents are needed to confirm previous customs procedures or the transportation route. They show the supply chain to the customs post.

These documents may be required by customs authorities for the registration of goods and to ensure their smooth release to the market. Proper preparation helps avoid delays and fines.

Specifics of filling out

1. Accuracy        
   Any mistake in numbers or descriptions can cause cargo delays. Double-check data against all accompanying documents.
2. Accompanying documents        
   The information in the declaration should match invoices, packing lists, certificates of origin, etc.
3. Customs requirements        
   For certain goods, such as dangerous cargo or products requiring licensing, additional requirements may be imposed.

Types of customs declarations

1. Electronic filing        
   In many countries, declarations are submitted electronically via specialized systems. For example, in Germany, the electronic declaration can be submitted through the «Atlas» customs declaration system.
2. Paper filing        
   A paper declaration is used in cases of technical problems with the electronic declaration system or when the electronic format is unavailable. Main features:
3.   • The declaration is filled out manually on a special form.
4.   • It includes standard data such as product description, HS code, value, origin, sender, and recipient.
5.   • Signature and seal are required.        
   Customs authorities may ask for additional documents to verify the provided information. Paper filing often takes more time due to physical verification of documents and their further processing by customs.
3. Oral declaration        
   Oral declaration is usually used for personal belongings of travelers or small shipments of goods that are not subject to mandatory written or electronic filing.

It’s possible in the following cases:

• Transportation of personal items across the border, not exceeding established customs limits.
• Goods that do not require special permits or certificates.

In oral declaration:

• The traveler or carrier informs the customs officer about the contents of the baggage or cargo.
• The customs officer may perform a selective inspection to verify the declared information against the actual situation.

Both declaration types are used less frequently than electronic filing, but they remain significant tools for ensuring customs control in non-standard or simplified situations.

Successful customs processing begins with a correctly completed declaration. Even the smallest inaccuracy can cost time, money, or result in the loss of goods. If in doubt, consult professional customs brokers who can help avoid mistakes.

Harmonized System (HS) in customs clearance: the role of product classification for smooth customs processing

Goods crossing the border for import or export must have a Harmonized System (HS) code. The Harmonized System is an international goods classification system used for customs processing. It contains over 5,000 categories, each with its own 6-digit code. These codes determine customs duties, certification requirements, licensing, and other customs procedures.       
Correctly choosing the HS code for goods in the customs declaration is a crucial aspect of the customs process. Incorrectly indicated HS codes can lead to:

• Incorrect calculation of customs duties and taxes.
• Delays in customs clearance.
• Disputes with customs authorities, which may lead to fines or even confiscation of goods.

Each product must be classified based on its characteristics, such as composition, purpose, or methods of production or processing. For example, a product made of different materials may have several possible codes, and the precise classification is critical for avoiding mistakes during customs processing.       
Misclassification can also lead to ineffective customs duties or non-compliance with trade agreements. Remember that each country may have additional class variations and requirements, which may change depending on customs policy or amendments in customs law.       
Correctly using the HS code also allows taking advantage of preferential tariffs or reduced customs duties available under free trade agreements or other bilateral agreements.       
For detailed information on the Harmonized System and HS codes, check our article Customs Tariff Number (HS code): complete information for E-commerce.

Customs clearance costs

The process of customs clearance involves several costs that depend on the nature of the goods, their value, volume, and destination country. To avoid unexpected costs, it is necessary to analyze the main components of customs clearance.

1. Customs duties and taxes      
   The main cost is duties and taxes. Rates are determined by the Commodity Code (HS Code) in accordance with the Harmonized System. They depend on the types of goods, country of origin, and trade agreements that may provide benefits (e.g., reduced duties or exemptions).
2. Customs broker services      
   If you work through a broker, consider paying for their services. Brokers help fill out the customs declaration correctly, clarify document requirements, and ensure smooth customs clearance. Their fees may be fixed or calculated as a percentage of the goods' value.
3. VAT (Value Added Tax)      
   Most countries charge VAT on imported goods. The rate depends on local laws and is usually calculated from the customs value of the goods, including duties and transportation costs.
4. Transportation costs      
   Transporting goods across the border often involves additional costs. This includes delivery costs, handling, storage at customs warehouses, and the cost of documents confirming the delivery route (e.g., CMR or bill of lading).
5. Goods insurance      
   Many countries require mandatory goods insurance. The cost of insurance depends on the types of goods, their value, and the risk volume.
6. Additional document costs      
   In some cases, customs may require specific documents: certificates of origin, licenses, security or compliance certificates (e.g., for foods, hazardous cargo, or medical goods). Obtaining such documents can involve additional costs.
7. Fines or additional fees      
   If violations are found (e.g., errors in the declaration or incorrect classification of goods), customs authorities may impose fines or charge extra fees for storage or inspection.

How to reduce costs

• Prepare all necessary documents in advance.
• Use professional broker services to avoid mistakes.
• Ensure goods are correctly classified by HS Code to avoid extra fees or fines.

Careful planning and control of customs clearance help minimize costs and reduce customs clearance time.

Duties and taxes on supplies

Taxes and customs duties are mandatory payments for importing/exporting goods. This expense significantly impacts the total cost of the cargo. The number of taxes and duties depends on the nature of the goods, the legislation of the importing or exporting country, and the customs procedure.

What to consider when paying duties

1. Customs duties      
   This is the import/export fee set based on the commodity code according to the classification (HS). Customs duties may be a percentage, fixed, or sometimes combined. For example, goods from strategic sectors are subject to higher rates, while raw materials for production may have preferential terms.
2. VAT (Value-added tax)      
   Value-added tax is charged on the customs value of goods, which also includes delivery and insurance costs. Each country has its own rate, so prior calculation is mandatory for e-commerce and B2B companies.
3. Excise tax      
   This applies to goods of special consumption, such as alcohol, tobacco, fuel, or equipment. It is calculated in addition to the main duties and plays a significant role in the final budget.

Special aspects that may affect payment

• Free trade zones: if your goods are imported from a country with a trade agreement with the destination country, you may benefit from preferential conditions.
• Preferential certificates: documents like EUR.1 can reduce customs duties for certain categories of goods.
• Product specifics: goods subject to regulation, such as technical devices or chemicals, may have additional restrictions or individual tariffs.

Why it's important to understand taxes and duties

1. Incorrect calculation may lead to customs delays, fines, or extra costs.
2. Differences in rates for similar goods can significantly affect your business's competitiveness.
3. Knowing the rules allows you to optimize logistics and minimize costs in advance.

Causes of delays at customs and how to avoid them

Customs delays are one of the most common challenges for businesses involved in import/export. Causes can range from simple document errors to violations of international norms. Let's explore the main reasons for delays and how to avoid them.

Document errors

One of the main reasons for delays is incorrect or missing documents. Customs authorities require accuracy and consistency in all declared data.

• Incorrect product codes: incorrect HS code classification may lead to improper duty calculations or fines.
• Missing certificates: some goods require special permits, such as certificates of origin or compliance.
• Invoice errors: inaccuracies in declared value or delivery terms raise suspicions among customs officers and may lead to additional checks.

How to avoid

• Verify all documents for compliance with the importing country's requirements.
• Use customs brokers to fill out papers accurately.
• Regularly update knowledge of customs regulations.

Incorrect declaration of value

Customs value is the basis for calculating taxes and duties. Any under- or overvaluation of customs value may cause delays.

• Underpricing may raise suspicion of attempting to avoid paying taxes.
• Failure to explain additional costs (e.g., transportation or insurance) creates confusion.

How to avoid

• Declare the real value of the goods, including all expenses.
• Provide supporting documents like the commercial invoice or contract with the logistics company.

Physical inspection of goods

Customs may initiate additional cargo checks, which can delay the process.

• Risky goods: alcohol, tobacco, equipment, and other categories are often checked more thoroughly.
• Non-compliance with packaging standards: improper labeling or missing information on the packaging may cause doubts.

How to avoid

• Follow packaging and labeling rules according to standards.
• Provide a clear description of the goods with all details in the declaration.

Untimely or incorrect payment of customs duties

• Insufficient balance may delay the release of goods.
• Payment discrepancies due to calculation errors.

How to avoid

• Calculate all customs duties and taxes in advance.
• Ensure payment is made on time and in full.

Lack of licenses or permits

Some goods require special permits for import/export. This applies to dual-use products, pharmaceuticals, or goods with protected copyrights.

How to avoid

• Check in advance if your goods require additional permits.
• Ensure all necessary documents are obtained before shipping.

Unforeseen circumstances

Sometimes delays occur due to factors beyond business control:

• Customs system failures.
• Port congestion or checkpoints.
• Strikes, weather conditions, or political restrictions.

How to avoid

• Prepare a backup plan in case of delays.
• Use cargo tracking systems to predict timing.

Summary

To minimize customs delays, it is crucial to prepare thoroughly for the process. Checking documents, calculating payments accurately, and understanding regulations will help avoid unnecessary difficulties. Collaboration with professional customs brokers and forwarders ensures fast and smooth customs clearance.

FAQ

Which European countries require customs clearance?

Customs clearance is required in all European countries for goods crossing EU borders from non-member countries. Intra-EU trade usually does not require customs clearance due to the common market. However, certain goods such as alcohol, tobacco, pharmaceuticals, or weapons may be subject to special rules.

How long does it take to clear customs?

Customs clearance time depends on the accuracy of customs documents, the types of goods, and the regulations of the country. Typically, the process takes from a few hours to 2-3 business days. Delays may occur if documents are incomplete or additional checks are needed.

What are the most important documents needed for successful customs clearance?

For successful customs clearance, you need a commercial invoice or pro forma invoice, packing list, customs declaration, certificates of origin or compliance (if required), and transport documents such as the bill of lading, CMR, or air waybill.

Who is responsible for customs clearance?

Responsibility for customs clearance can lie with either the importer or exporter, depending on the terms of the contract (Incoterms rules). Often, this process is outsourced to customs brokers or forwarders to avoid mistakes and ensure compliance with all requirements.

What is the best way to avoid customs fees?

To reduce or avoid customs duties, take advantage of trade agreements between countries, properly classify goods according to the Harmonized System, declare the correct value of goods, and prepare all necessary documents.

Is it necessary to contact a customs broker?

Although it is not mandatory, using a customs broker greatly simplifies the customs clearance process. Brokers have experience with regulations, ensure document accuracy, and help avoid costly mistakes. Their services are highly recommended for expensive, valuable, or regulated goods.