In eCommerce, delivering and receiving products is an essential part of the trade. Consequently, navigating the international border is an important part of the process. When you hear international trade, the first thing that comes to mind is customs clearance. In this blog, let us navigate the maze of customs clearance and look at the services that will make the process easier.
Before delving deeper into the process of international trade, it is important to know about customs clearance. Customs clearance is the process in which officials of relevant countries check, permit, and then release the product to either export (leave) or import (enter) the country. Custom clearance is in place to make sure that the shipments that arrive or leave a country are complicit to the regulations of the country. The relevant duties and taxes should be paid. The customs official also ensures that all the shipment documentation is updated. Customs clearance is pivotal in ensuring that all the appropriate taxes are paid, contributing to a country’s income. They also ensure that the goods included in the shipment are safe to import or export. Furthermore, they help in the smooth movement of the product across international borders.
Role of 3PL in Custom Clearance
Now that we understand what custom clearance is, we will discuss how the various custom clearance services provided by third-party logistics (3PL) companies can help a business owner whose products travel internationally.
Custom clearance can cause business owners a world of pain when done wrong. There are unplanned delays, documents not being submitted, and sudden costs accruing. Custom clearance can be a total maze of policies and procedures for the unversed. That is where custom clearance services come in handy and help you overcome this challenge of international import and export. They help you navigate this maze and tackle different policies and procedures. Let’s look at the different advantages of these services in detail.
• Expertise
The 3PL companies that provide custom clearance services are well-versed in international trade. Therefore, they are up to date with the current rules, regulations, and processes. Their custom-made services will help you understand the local and international laws that apply to your shipment. This explanation will help you understand the complications of goods and services.
• Inexpensive Solution
These services are the cost-effective solution to sometimes expensive custom clearance problems. They fast-track the clearance process, thus reducing the risk of unnecessary delays. Since these service providers are well-versed in the various aspects of customs clearance, they can predict the probable issues and deal with them. This proactiveness will save you time and money, two important currencies in product delivery.
• Complete Package
In certain cases, these service providers go above and beyond their custom clearance offerings. They provide additional items within the service, such as a complete logistic solution. That solution might include freight forwarding, placing the products in warehouses, and even distributing the product. As a business owner, you get a complete end-to-end solution to your logistics issues. They will meet all your logistics requirements.
• Better Technology
The 3PL service providers employ the latest technologies to smoothen customs clearance. The systems installed for these processes provide real-time information. Business owners can track their shipments transparently. These updates and tracking facilities give the business owner peace of mind and let them control the entire logistics process. Based on the requirements of individual businesses, these 3PL service providers can sometimes tweak the output of these systems based on what the business owners require.
• Worldwide Distribution
These 3PL customs clearance services often have agents all over the world. That has the unique advantage of dealing with customs clearance at the entry point of any country. This access to worldwide resources works a long way to simplify the customs clearance process. Crossing international borders can be tricky at best and unnecessarily complicated at worst. These agents present in the point of entry country can simplify the process.
Customs Clearance in International Trade
If you are a business owner chartering the international waters, customs clearance, and its policies and procedures can be daunting. While customs clearance is crucial for the economy and regulations, going through it and ensuring you do it right can be confusing. Customs clearance involves documentation, taxes, and multiple checks.
The processes differ depending on whether you are importing or exporting products. Your paperwork is required to be up to date. The rules and regulations vary based on the country you are shipping to or from. These are some of the key areas of customs to consider. All these puzzle pieces form the whole picture of customs clearance. Let’s look at these pieces individually.
• Export or Import
Although the basic rules and regulations are unchanged, certain subtle, nuanced changes are based on whether you import or export the product. If the business owner imports a product, they require appropriate paperwork to clear the tax payments.
However, if the business owner is exporting a product, they must have paperwork such as relevant invoices, applicable permits, and bills of lading.
• Destination Country
The customs clearance process is different for every country. There are rules and regulations based on the destination and target countries. Some countries have restrictions on the import and export of certain products. Others might have complicated tax calculations to understand and pay. Researching the rules and regulations of the source and destination countries is a good idea. Understanding these customs rules helps you regulate the import/export process better.
• Important documentation
Getting your paperwork in order is essential to avoid any customs delay. Some crucial documents mandatory for the customs process are the following:
- Packing list – This is a list of the products included in the shipment. This list is necessary to ensure your goods are not lost during transit.
- Bill of lading – is a document for your products mentioning the source and destination countries.
- Import/Export declaration – as the name suggests, encompasses your request to enter or exit a country and details of the goods you are importing or exporting.
- Commercial invoice – is a bill for your shipment declaring the cost of the products and other required details.
Conclusion:
The various rules and regulations for customs clearance can be confusing. Additionally, these rules differ from country to country. If you are importing or exporting your goods for the first time, employing a service that will help you with the customs clearance process is a good idea. Once you are well-versed in the regulations, the next step is to keep yourself updated on any changes in policies and regulations. Being aware of these regulations and adhering to them can also avoid potential delays in product delivery and unnecessary payment of extra taxes. As with anything, being prepared and having the basic know-how is crucial.
If you want to broaden your horizons and venture into a foreign market, contact with XPDEL for expert guidance on international trade and customs clearance.
About XPDEL:
XPDEL helps eCommerce brands accelerate their growth, empowering them with multi-channel fulfillment, whether shipping directly to consumers, delivering to businesses, or selling through retail stores. We are founded and operated by veterans with experience from Amazon, FedEx, UPS, JDA, Walmart, Target, and other leading companies in eCommerce and Retail. Guided by these experts, we provide customer experiences that help you grow your business.
