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International transportation is a constantly evolving industry in which customs procedures are an integral element. Meticulous customs clearance ensures smooth and trouble-free transportation of goods across borders. Below is a brief discussion of what customs clearance in international transportation entails and its key aspects.
What is customs clearance?
Customs clearance in international transportation refers to the process in which the customs authority verifies documents, permits, checks the conformity of declared goods transported across borders, and assesses and collects duties and taxes. While intra-European Union trade does not require customs clearance, it is necessary for both imports and exports of goods from outside the European Union countries.
The importer or exporter is responsible for the formalities related to customs clearance, who may handle the clearance independently, but there is also the option to use the services of a customs agency.
Customs documentation - what formalities must be fulfilled?
Customs clearance involves providing a complete set of required documents, which vary depending on the type of goods being transported, their destination, country of origin, and mode of transportation. However, there is a group of documents that are required regardless of whether it is import or export.
Commercial Invoice
The commercial invoice is one of the basic customs documents, also serving as a sales contract, based on which the customs authority calculates duties and taxes. It is the basis for customs declaration and describes the goods and their value.
Bill of Lading
The bill of lading in international transportation, also known as the loading list, is another key customs document. The document serves as evidence of the transportation contract, confirms the receipt of the cargo, and specifies the terms of carriage. The bill of lading contains essential information such as the type and quantity of the cargo being transported, as well as the starting and destination points of transport. It specifies the obligations of the sender and carrier, detailing the conditions and instructions for safe transport.
Depending on the type of transport, we can distinguish the maritime bill of lading, known as a "konosament," the air waybill (AWB), the road consignment note (CMR), and the railway consignment note (CIM and SMGS).
Customs Declaration
The customs declaration, also known as the customs declaration, is a formal document submitted to the customs authority. The main purpose of the declaration is to provide customs authorities with information about the type, quantity, and value of the goods being transported. This information helps officials verify compliance with customs regulations and assess applicable duties and taxes.
Classification of Goods
The Harmonized System for the identification and coding of goods (HS), commonly known as the international system for classifying cargoes, is a set of rules and criteria developed by the World Customs Organization, allowing businesses, customs agencies, or customs authorities to identify a product using a numerical code. The system classifies about 5000 six-digit categories of products organized into:
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sections,
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chapters,
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positions,
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subdivisions.
Common Customs Tariff (TARIC)
The European Union has its extended version of the Harmonized System used worldwide, adapted to the specific requirements of the EU. The Common Customs Tariff (TARIC) is a comprehensive database that consolidates various customs tariffs and additional conditions affecting imports and exports.
One of the main functions of TARIC is to determine the customs duties and measures applicable to goods involved in trade with countries outside the European Union.
Import and Export Procedures
Customs clearance in international transportation, despite many common points, differs depending on whether it involves import or export of goods. Below is a brief description of what customs clearance involves in import and export.
In import, customs clearance in international transportation involves officials checking whether the imported goods have all necessary documents, whether customs and tax obligations have been paid, and whether the cargo itself has been inspected.
The customs clearance procedure in import starts with customs declaration, followed by the submission of all necessary documents and payment of customs duties and taxes. If everything is in accordance with the declaration and standards of the destination country, the goods are released for circulation.
Customs clearance in export starts with the declaration of goods for export. The cargo must also be classified according to the Harmonized System for the identification and coding of goods, obtain all necessary permits and certificates, which are evidence of compliance with the standards of both the country of origin and destination.
Duties and Taxes
Duties and taxes are an integral part of customs clearance in international trade. Duties refer to all charges imposed on imported or exported goods, determined based on factors such as the type and origin of the product. Taxes, on the other hand, are financial obligations imposed by governments.
Customs Agency - Significance and Responsibilities
A customs agency serves as an intermediary in contacts with state authorities regarding customs clearance, and for many clients, it is an important link in relations with government services. The customs agency is often erroneously equated with the customs office, and the customs agent confused with the customs officer. Therefore, it is worth noting that a customs agency is a commercial institution and provides services of a commercial nature.
The main task of a customs agency is to represent the interests of the client - importer or exporter before the customs authority. It provides comprehensive support in customs formalities and increasingly provides broader assistance in organizing the entire transportation logistics. Year after year, there is a growing demand for such services.