Shipping
|
Brazil PRC

Overcoming Customs Clearance Issues: Simplifying Complex Processes

Monday, July 9, 2018
|
by
Skypostal
| Updated On:
September 16, 2024
4 mins

While some customs clearance issues are beyond our control (e.g., natural disasters like earthquakes or hurricanes), many other customs hang-ups can be avoided with the right processes in place. In international logistics, the following challenges are common:

  • Shipments stuck in customs for days or weeks
  • Unexpectedly high duties and tariffs
  • Incorrect or incomplete customs paperwork

Logistical missteps and miscommunications are always frustrating, but when compounded by language barriers, time zone differences, and the geographical distance between you and your products, the frustration is magnified. It’s crucial to be well-informed about customs clearance issues and plan ahead to minimize these challenges.

Common Causes of Customs Clearance Issues in International Shipping

From the moment an international order is shipped, various shipping documents are created. These documents indicate what is being shipped, its value, and its weight. As a result, a large amount of paperwork and verification is required during the shipping process, especially at customs.

Customs clearance issues can arise due to miscommunications or misunderstandings and can be construed as fraud, leading to penalties. Whether the issue is paperwork-related or a logistical delay, these customs issues are costly for businesses and frustrating for customers.

customs clearance issues
Customs clearance issues can keep your goods locked up in ports instead of at their destination. - image source

How to Avoid Delays in Customs Clearance

To ensure smooth customs clearance, it’s important to address potential problems before your shipment is in transit. Here are key areas to focus on:

Are you allowed to ship your goods to that country?

Before shipping internationally, confirm that your goods can be legally imported into the destination country. Some countries have strict regulations—such as Singapore’s ban on importing chewing gum or Chile’s special permit requirement for perfume imports.

Are Your Goods Classified Correctly?

Accurate classification of goods is essential for customs clearance. Goods are classified using HS codes (Harmonized System codes), but classification systems vary by country. Misclassification can result in penalties, as seen in an example where canned chickpeas were incorrectly classified as dry chickpeas, leading to higher tariffs.

misclassified goods can cause big problems at customs
Misclassified goods can cause big problems at customs. - image credit: Dr. Jean-Paul Rodrigue, 2016

Did You Pay All the Necessary Duties and Taxes?

Each country has its own tax regulations. Understanding de minimis limits (the threshold under which items are exempt from duties and taxes) can save money. Be sure to classify your goods accurately and provide the correct weight to avoid customs delays.

Is All Your Paperwork Correctly Filled Out?

Incomplete or inaccurate customs paperwork is one of the most common reasons for shipment delays. The paperwork required varies by country, but it’s vital to ensure every detail is correct before shipping.

The Port of San Antonio in Chile
The Port of San Antonio in Chile is one of the largest ports importing goods to South America. - image source

Avoid Customs Clearance Issues by Using 3rd-Party Logistics Providers

Partnering with a third-party logistics (3PL) provider can help you navigate the complexities of customs clearance. They have the expertise to handle the most challenging parts of the process, reducing the risk of abandoned merchandise, unexpected costs, and customer dissatisfaction.

Try the SkyPostal Way

If you're a retailer looking to expand into Latin American markets and need guidance on navigating customs, SkyPostal is here to help. Our fully integrated logistics solutions manage the entire import process—from duties and tax management to customs paperwork and resolving clearance issues. With our expertise, you can avoid unnecessary delays and ensure smooth, hassle-free shipments.

Contact us today to learn how SkyPostal can streamline your international shipping and support your growth in the Latin American market.

FAQs on Customs Clearance Issues

What are common causes of customs clearance issues?

Common causes include incomplete paperwork, incorrect classification of goods, and unpaid duties or taxes. Miscommunication and language barriers can also lead to delays.

How can I avoid customs clearance delays?

Ensure all paperwork is accurate and complete, classify goods correctly, pay all duties and taxes, and partner with a reliable third-party logistics provider to streamline the process.

What happens if my shipment gets stuck in customs?

If your shipment is delayed at customs, it may result in additional storage fees or penalties. Resolving paperwork or classification issues quickly can help release the shipment.

How do third-party logistics providers help with customs clearance?

A 3PL provider offers expertise in navigating customs regulations, handling paperwork, managing duties and taxes, and ensuring that shipments comply with all local regulations.