What is meant by Customs clearance and how does it help ship your goods internationally?

Customs clearance


According to Management Study Guide, Custom clearance work involves preparation, and submission of documentation to facilitate export or imports into the country, representing clients during a custom examination, assessment, payment of duty, and co-taking the delivery of cargo from customs after clearance along with documents.  The export and import custom clearance procedures are one of the most important parts of the international freight shipping process especially for companies that are small or medium-sized who are taking their first steps into the global business arena. In custom clearance, the documents involved are:

  • Import Documentation- Sales Invoice of Supplier, Purchase Order from Buyer, Bill of Lading, Bill of Entry or Air Way Bill, Packing List or Certificate of Origin, & any other particular documentation required by the financial institution, buyer or importing country regulations
  • Exports Documentation- Sales Invoice, Purchase Order from Buyer, Shipping Bill, Bill of Lading, Certificate of Origin, Packing List, Airway Bill, and any other particular documentation required by the financial institution, or LC, or as per importing country regulations

Different countries and sometimes ports in the same country can have different rules, regulations & laws. Hence, it’s important to have someone on your side who understands customer clearance very well. Customs clearance services include all the necessary documentation that helps facilitate & encourage more imports and exports in the country. Customs clearance services guide through the entire process of shipment with regards to the customs clearance processes. They offer the following business benefits:

Avoidance of delay in deliverables

It’s essential that goods which are exported and imported on an everyday basis reach their destination at the expected timing & through these customs clearance services, this process can get accelerated

Avoidance of increase in Shipping Costs

 If there is an issue in the customs clearance brokerage, & customs clearance doesn’t happen swiftly, the shipping costs could rise exponentially which can be controlled by using customs clearance services

Cost to Business

Moreover, if the cargo doesn’t reach its destination in time due to delay in getting the shipping containers released, a lot more costs to the business can be caused as the arrival of the shipment is delayed

Avoid unnecessary expenditure

 Customs clearance services can also ensure that the company is protected from getting any expensive deferrals or defaults, fines, different penalties, and reallocation of stock

The complication in administrative procedures

Customs clearance services are well versed in the prerequisites of different administrative formalities that are applicable to different countries & can be complicated in nature. Hence, this can be picked up by customs clearance services & can facilitate a smoother process of shipping

The two ways in which you can ensure that the customs clearance process is smoother for your shipment include:

  • One has to make sure that the cargo is loaded properly and if it is not loaded in the way it should, a red flag might go off at customs. This can lead to unnecessary examinations, searches of international shipments, or even a delay in delivery or costs associated with this
  • Provide complete and accurate information to the custom brokers & freight forwarder. This includes information about the business, an itemized list of the shipment, inventories, and value of cargo. This piece of information affects the custom fees & duties at the port, assesses the risk of the cargo shipment among other things


Customs clearance services have the experience and knowledge of shipping cargo from one country to another, hence, companies don’t need to get bothered about the details, hassles, and regulations of the same and can focus on their business instead.

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