When developing an international distribution system, customs compliance plays a very important role
The import and export of manufactured goods enables businesses to enter new markets and increase their sales by adding more customers. In order to do this, a business must have the appropriate knowledge of international shipping. When developing an international distribution system, customs compliance plays an important role in the proper functioning of the system. Though customsis considered a challenge across various industries, if done correctly, customs can act as a tool that optimizes the overall costs and workflows of the distribution network.
What is Customs?
Customs. which is commonly known as acustoms office or department, has offices located at the dock, airport terminals or international borders where custom obligations are imposed, goods are stored and related paperwork is processed.
Important things to keep in mind about Customs
The process of customs compliance for a cross-border consignment is initiated at the source country from where the goods are dispatched and ends at the destination country where the goods are received. There are many features that need to be considered in relation to the customsfor an international consignment.
1. Customs Planning:
A precise analysis of the certifications and agreements which are required to export or import a consignment is required to avoid any kind of delays in the clearing process. Customs support documents which are provided at the time of declaration, should be utilized properly in establishing optimized workflows, which in turn will help reduce business costs and boost sales.
Every international consignment requires you to provide the customs compliance authorities with documents such as the Exporting Bill, Dangerous Goods Notice, Licences, etc. These documents are very important for the successful clearing of your consignment through customs. It is critical for you to have proper knowledge of these rules and regulations for the seamless flow of your shipment through customs.
3. Packaging :
During international shipping, the consignments get inspected by the customs in order to review and ensure that only permitted goods enter the country. Your consignment should have proper packaging and labeling to reduce delays in the customs inspection process. If there are any delays in the clearing of the consignment, the planned delivery date can be altered which may result in a monetary loss to your company.
International Commercial Terms, abbreviated as Incoterms, were created by the International Chamber of Commerce which eases international and domestic business processes. There are currently 3leven different types of Incoterms which describe details about paperwork, tariffs and other costs that are to be paid by the sender or receiver. Incoterms apply to all international consignments. It is very important for you to be clear about which incoterms will be applicable to you and the receiver, so that the correct person is responsible for the customs clearing.
5. Categorization of Goods:
It is important for you to categorize your goods for customs compliance. Accurate categorization of your goods can help you in determining the correct tariff calculation including taxes, duties and surcharges and other compliance-related policies such as quantity limits. Customs carefully observes these metrics for the clearing of goods for both import and export.
6. Monetary Value of Goods:
In addition to the categorization of goods, determining the value of your consignment is also important for proper customs compliance management of the imported and exported goods. Determining the correct value of goods will help you to accurately calculate the duties which are to be levied on the consignment.
7. Determining Place of Origin:
One of the important parts of customs is to determine the location of the origin of the consignment. This is primarily based on the classifications given by customs as it assists in recognizing the actions needed and the payment of duties to be levied on the consignment. By determining the place of origin, customs can partially waive off the duties imposed on the consignment depending upon reasonable sales and other incentives provided by the local government.
Given all the points discussed above, if each is taken into consideration, you can strive to make international exporting and importing a seamless process, which in turn will help your business grow and revenue rise.
- Posted by admin
- On May 18, 2021