Customs Clearance Completed Meaning, And What's Next?
Navigate common customs clearance challenges with ease and ensure your packages always reach their destination on time! One of the major issues businesses face is when their shipments arrive at the port and have to go through customs to be cleared. The waiting period between the “arrived at customs” and “customs clearance completed” notifications can often feel like a very long time because shipments can be delayed for several reasons. If you’re new to international shipping, this post will help you understand how to avoid delays at the port of entry and enjoy a smooth and stress-free customs-clearing process.
What Does ‘Customs Clearance Completed’ Mean?
In simple terms, it means that your cargo has successfully passed its screening by the Customs and Border Protection (CBP) agency and you’ve settled all outstanding fees, tariffs, and customs Duty. Therefore, customs has released your goods to your preferred destination. It’s good to receive a notice that your goods have cleared customs.
Key Benefits of Completing Customs Clearance
Some benefits of your goods being cleared by customs include:
- Your preferred courier can transport the cargo to its next destination.
- You may be able to take delivery of your goods quickly.
- Your shipment won’t be impounded or seized.
- It shows that there’s no problem with your imported goods.
- You have no outstanding import duties or tariffs.
Step-by-Step Guide to Customs Clearance
There are five crucial steps to getting your cargo through customs quickly:
- Accurate Documentation: Submission of the right and complete documentation to the CBP. The documents you’ll submit depend on the shipment’s destination; however, you must always submit a Bill of Lading (or Airway Bill if you’re using air freight), a packing list, and a commercial invoice.
- Customs Documents Review: After submission, the CBP will review the documents to determine whether you have the right paperwork and ensure that it matches what’s listed in your cargo.
- Duty, Tax, and Tariff Calculation: If your documents are in order, the agency will calculate your taxes and duties and wait for you to settle all outstanding charges. If not, you or your customs broker will be notified so that you can either rectify the mistakes, provide valid documentation, or pay any necessary fines.
- Duty and Tariff Payment: You’ll then proceed to pay all outstanding duties or tariffs.
- Customs Releases Goods: Once all fees and taxes are settled, customs will release your goods, and you’ll receive the “customs clearance processing complete” notification.
Even though it seems simple, clearing goods can be a rather tedious process that can easily overwhelm a regular person. Worse, a small error can lead to delays in clearing your shipments and a lot of headaches.
Common Challenges in Customs Clearance
When goods are delayed at the point of clearing, the most common reason is that the paperwork has errors, such as incorrect product information, missing details in the commercial invoice or packing list, or missing consignee information. However, there are other issues, including:
Consolidated Shipping Issues
In an ideal scenario, most importers who choose ocean freight services would use Full-Container Load freights for their shipment. But that’s not usually the case, as most SMBs don’t need it. That leaves them with the Less-Than-Container Load freight option. This means they often have to share a container with others. When that container goes through the customs clearance process, all parties may be required to be available to pay their duties and tariffs. If one or more parties are missing, that could lead to delays.
Split Shipments
If an importer needs to ship multiple items urgently but can’t find a slot for everything in one container, this can lead to further complications. As an importer of goods, you should ensure that your customs broker has the accurate information and documentation they need. Since most customs delays are caused by errors or missing documents, doing this will help move things along quickly and get your shipments out of customs faster.
Why Hire a Professional Customs Broker?
At Ship4wd, we provide an effective 24/7 customs brokerage service designed to swiftly get your packages through customs. Our experienced customs brokers can make this rather difficult process easy and stress-free. Learn more about how Ship4wd makes customs clearance easier and stress-free. Let us help you today.
