Many merchants and retailers are hesitant when considering the idea of expanding their business and starting to sell internationally; For fear of the issue of international shipping and the consequent shipping customs. The reason is that the customs clearance process for them is a vague and unclear process.
Customs Authorities
The customs authorities are considered the first line of defense for any country, and are not just a body to examine and assess the products through which they are financially to collect taxes. Therefore, governments pay high salaries to customs officials to prevent them from taking bribes in order to prevent the entry of prohibited materials. Because of its danger to the state in health, security and legal terms.
Governments tax shipments from other countries because they want to:
- Protecting local companies from foreign competitors
- Control the flow of some products
- Increase revenue through taxes
Customs Clearance Steps
- The customs officer will look at the papers for your shipment:
All international shipments must contain a Commercial Invoice, which is an important document in the customs clearance process. This document includes information about the shipper and recipient's contact information, as well as shipping details such as the date of export and the bill of lading.
- The customs officer will see if there are taxes and duties that apply to your shipment:-
It depends on the type of goods, their value, and the laws of the importing country. Each country has its own set of rules, regulations, and taxes for import. If it is determined that the value of the goods is higher than the customs acceptable value, the officer will check whether these taxes and duties have been paid.
- Customs requires payment of taxes and duties, if not paid:-
While we are talking about customs clearance; Here comes the role of explaining two very important terms, DDU (Deliver Duty Unpaid) and DDP (Deliver Duty Paid).
- Paid tax value
- Unpaid tax value
- Once it is confirmed that the due taxes and duties have been paid, the shipment is released and proceeds to its final destination:-
And that's it! As long as you have the required paperwork and know how to deal with taxes and fees, customs clearance should be a breeze, and shipping companies often handle this for you.
