China’s prominence in manufacturing makes it a global hub for procuring goods. However, it is hard to navigate the last hurdle – custom clearance efficiently.
The process is complicated, and if you are a new importer, it is wise to gain knowledge about the customs clearance process for a smooth and efficient importing experience.
What’s custom clearance?
Custom clearance process facilitates imported goods to enter your country legally. The process involves documentation verification, payment of applicable tax & duties, and potential inspection of goods by the customer authorities.
If you are new or unfamiliar with custom clearance for import goods from China, it is sensible to partner with a reliable Maple Sourcing Company.
They have licensed customs broker who can help you recognize the correct classification code for your product. It is crucial to determine the applicable custom duty. The professionals even ensure that all the necessary documents are accurate and compliant with regulations.
Key documents for customs clearance
Several essential documents for a seamless custom clearance process are:
1 Bill of entry – It is an official document defining the imported products’ nature, quantity and value to the customs authorities.
2 Commercial Invoice – The seller issues a commercial invoice. It includes a detailed breakdown of goods, their unit price, total value, and permanent terms.
3 Packing List – In this document, details about the content, quantity, and packaging information of each unit in the shipment are shared.
4 Bill of Lading/Airway Bill – BOL is issued by the carrier [ocean freight or air freight]. It is a contract of carriage and has details about the shipment, including weight, origin, and destination.
5 Import License – Certain goods need specific import licenses depending on your country’s regulations.
6 Certificate of Origin – Certificate of Origin certifies the country where your goods were manufactured. It is required for certain trade agreements or duty calculations.
Understanding duties and taxes
When you have goods imported from China, you are responsible to pay various taxes and duties based on your country’s regulations and the goods nature. It can include:
1 Import Duty – Import duty is a tax charged on the imported product’s value.
2 VAT or Value Added Tax – It is a consumption tax added to imported goods value and any applicable imported duties.
3 Excise Duties – Specific taxes are levied on certain products – e.g. fuel, tobacco, and alcohol.
General steps involved in custom clearance process
The general steps involved in the customs clearance process are:
1 Pre-arrival preparation – Ensure to have all the necessary documentation in order and understand the applicable duties and taxes [if any].
2 Arrival & Examination – Once the goods arrive at your destination port, the customs authorities will physically inspect them to verify the information on the documentation.
3 Duty & Tax Assessment – Based on the submitted documents and their examination findings, the authorities will assess the applicable taxes and duties.
4 Payment & Release – Once payment is made, the customs authorities will release the shipment for onward transportation to your designated location.
Importers on China global sourcing advise you to hire a professional customs broker as they stay updated and can guide you smoothly through the customs clearance process. Their experience expedites the clearance process and reduces delays.
Conclusion
Get to know the complicated custom clearance process and avoid delays. Partner with a reliable sourcing company to navigate the final step confidently
