Customs Clearance

The process of getting goods approved by customs to leave the export country or enter the import country, including declarations, checks and payment of duties.

TL;DR: Customs clearance is the approval process goods must pass to leave one country and enter another. It happens twice in most shipments, once for export and once for import.

On the export side in China, the goods are declared to China Customs before loading. The declaration uses details from the Commercial Invoice and Packing List, including the HS Code and value. Once released, the container can be loaded onto the vessel. Who arranges export clearance depends on the Incoterm. Under FOB and CIF, the seller handles it. Under EXW, the buyer is technically responsible, which can be difficult for a foreign buyer.

On the import side, the buyer or their customs broker files an entry with the destination country’s customs. They present the Commercial Invoice, Packing List, Bill of Lading or Air Waybill, and any required certificates, such as a Certificate of Origin. Customs checks classification and value, may inspect the cargo, and collects import duty and taxes before release. Under DDP, the seller arranges and pays for this step instead.

Delays usually come from mismatched documents, unclear product descriptions, or missing permits. Inspections can also add time and cost, especially for full containers that must be moved to an exam site.

For crated or palleted tile shipments, confirm that wooden packaging meets ISPM 15 rules. Non-compliant wood is a common cause of holds at import. Prepare your documents before the ship arrives to avoid storage charges and Demurrage and Detention. See also Customs Broker.