Customs Clearance

The purpose of JiffyStock is to connect businesses from all around the world and provide them with an all-in-one B2B platform to carry their trade. We offer all the B2B wholesale services that a business can possibly need. Since the majority of trades are to be shipped to another country, buyers and sellers have to deal with the process of customs clearance to get their shipment approved in the receiving country.

Every government has a different set of policies for importing and exporting various types of goods. Depending on the type of product, its price, and volume, you have to pay a customs duty tax to the government. For example, the most common example is importing electronics and automobiles. All countries have a different policy on the amount of tax applied to these products. 

You can’t get your shipment without paying a customs duty tax on it. Only then the customs clearance department will allow your goods to leave the port to be shipped at your given address.

What is Customs Clearance?

In simple words, customs clearance is the process of getting your products approved by the relevant agency or government whenever you are moving goods in or out of a country. While in tourism, the government allows tourists to use certain items for some time without having to pay customs duty for them, it is different for B2B trading. Since the products are being moved in or out of the country in bulk and for the purpose of trade, there is no way to avoid paying customs clearance fees and every other cost associated with the whole process unless the respective government doesn’t charge any tax on your products.

It is important to do your research on what customs trade is if you are going to use our services. You can also use a customs clearance company or agent to do everything for you but even in that case, you need to know all about the basic process and what documents are required in the process. The absence of requested documents can also result in the delay of clearance and your products can get stuck on the port for too long. 

Is Customs Clearance only for Importers?

While you will be charged tax on importing goods, customs clearance is not limited to imports. You also have to go through this as an exporter/supplier during the export. Every country checks all the goods before they are shipped to see if the products qualify as legal export, allowed in the country of import and if the products are bought legally and there are documents available for confirmation. The supplier will be asked to pay export duty for the shipping procedure to begin.

The Whole Process of Customs Clearance: Simplified!

When your products are on their route to get shipped by air or sea freight, they are checked for customs clearance by an officer from the customs office at the seaport of the airport. Your documents are checked thoroughly, tax is calculated and everything is ensured before releasing the shipment. 

Inspection of Relevant Documents

The customs officer will thoroughly check your documents in order to decide if to approve your shipment or deny it. There are some key documents that you should know about and have in your possession before you start the procedure of customs clearance. The availability of certain documents is compulsory while the rest just make the process much easier for customs officers and help you approve your shipment faster. Here is the list:

Commercial Invoice:

This is the most important document for not just customs clearance but for other business purposes. A commercial invoice is like proof of sales which shows clearly that buyer has bought a specific number of goods from the seller. This invoice is used as the basis for calculating the customs tax since this document contains the product type, quantity, etc. A commercial invoice should contain some necessary information such as:

  • The date when the invoice was generated
  • The name and type of products that are being shipped
  • The quantity of the products
  • Weight and Size of the products
  • Unit price and commercial value of products
  • Insurance details (if any)
  • Names of buyer and seller
  • Tax Identification number of buyer and seller

Customs Packing List:

While everything is listed in your commercial invoice, you should also generate a list of all the products included in shipping. This packing list contains the types of products, the quantity of each type of product, weight, and size. It is used by the fright carriers to keep track of your shipment. Having this list during the customs clearance is necessary.

A Bill of Lading from the Freight Carrier:

The bill of lading is basically generated by your logistics company. This bill contains the information about the type or products you are shipping and the whole list of it. It is needed at the time of customs clearance to ensure that the right products are being shipped.

Import/Export License (Optional):

Import or export license is only needed for some products. If you are importing or exporting a product that is restricted, you are supposed to provide your import or export license that you have obtained from the relevant authority. 

How Does JiffyStock Help You in Customs Clearance?

Figuring out the whole process of customs clearance is hectic. Everyone recommends buyers and sellers hire a customs broker to do everything for them. Hiring a customs broker isn’t a rule but they make the process much easier and faster. Since they know about all the rules and regulations of the respective county, they will seamlessly approve your shipment. Sometimes, the country of import can have different policies that you don’t know about, and hence, your products can get stuck in the clearance process. Hiring a broker beforehand helps you avoid all these issues and generate relevant documentation for the customs clearance. 

Hiring a Customs Broker

If you are looking to hire a customs broker for your products, we also provide you with a list of customs brokers in every country. You can choose your respective country, search for a customs broker and contact them to do everything on your behalf. They will help you figure out the rest of the process. You can head over to our Customs Clearance section to find brokers.

Note that JiffyStock only provides you with the list of available brokers in each region. If you wish to use another agency, it is up to you but in both cases, we won’t be responsible for any problems that arise during the process. We only provide the list and contact information of brokers and not the services.