Demystifying the Customs Clearance Process

​Customs clearance is the process of declaring goods being imported or exported to the government. It is a complex process that can be daunting for businesses that are new to international trade.
In this blog post, we will explain the key steps involved in customs clearance. We will also discuss the role of customs brokers and freight forwarders, and how they can help businesses to clear customs more efficiently.

What is Customs Clearance?
Customs clearance refers to the process of verifying that imported or exported goods adhere to the applicable customs guidelines. This includes ensuring that the goods are properly declared, that the correct duties and taxes are paid, and that the goods are not prohibited or restricted.
Depending on the country, the customs clearance process may vary. For New Zealand customs clearance, we generally follow these steps:

• Gathering the necessary documentation. This includes the commercial invoice, packing list, bill of lading, and any other documents that may be required by the customs authorities.
• Declaring the goods to customs. This is done by completing a customs declaration form.
• Paying any duties and taxes. The amount of duties and taxes that are payable will vary depending on the type of goods, their value, and the country of origin.
• Releasing the goods. Once the duties and taxes have been paid, the goods will be released by customs.

The Role of Customs Brokers and Freight Forwarders
Customs brokers and freight forwarders can help businesses to clear customs more efficiently. Customs brokers are licensed professionals who are authorized to represent businesses before customs authorities. They can help businesses to gather the necessary documentation, prepare the customs declaration, and pay any duties and taxes.
Freight forwarders are companies that specialize in arranging the transportation of goods. They can help businesses to move goods from A to B either domestically or internationally. 
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How to Select the Right Incoterm
Incoterms are international trade terms that define the responsibilities of the buyer and seller in an international transaction. They are used to clarify who is responsible for paying for transportation, insurance, and customs clearance.
There are 11 Incoterms, and the right one for your business will depend on the specific terms of your transaction.
 
Conclusion
The customs clearance process can be complex, but it is an essential part of international trade. By understanding the key steps involved and by working with a customs broker or freight forwarder, businesses can clear customs more efficiently and avoid any delays or penalties.