Frustrating isn’t it?
Custom clearance is, without a doubt, one of the pain points in the logistics industry. In particular, custom clearance can cause many problems to air and sea freight services. Your cargo can be delayed or even worse, rejected and returned back to you. At Haulystic, we understand that this is a situation that everyone wants to avoid.
Too bad it’s impossible...
Or is it?
So, how can you avoid custom clearance problems?
Well, firstly, you need to understand all the custom clearance challenges that may rise. You need to know everything if you want to be prepared. Secondly, you need to create a plan and be as prepared as possible.
I will help you with the first step, providing you with all the knowledge that you will need for the second step.
Inaccuracy of Information
In many cases, cargo is being misclassified, leading to delays at custom clearance process and increased costings. Bear in mind to always provide your freight forwarder, with accurate information and classification of your products, Especially, products such as food, pharmaceuticals and technological products which are at high risk of this custom clearance issue.
Further, remember that the laws and regulations are not always the same among different countries, so be careful and prepare for the specific policies of your destination. If you need any information about each country’s regulations or the classification of your products, give Haulystic a call and a subject matter expert from our team is always here and happy to help you!
Another common mistake in the custom clearance process is the missing or incorrect documentation. The Airway bill is the most important document in the entire custom clearance process, so be careful and don’t lose it. If this document goes missing, then your freight’s release process is likely to be delayed or extra charges may affect your shipment. In addition, many shipments are being delayed or rejected, as the exporter does not submit all the necessary forms.
Delays can also occur due to problems with labelling, involving weight, certificates of origin and identification marks. Building a trusting relationship with your freight forwarder, can save you a lot of trouble and headaches when it comes to custom clearance problems. A freight forwarder, such as Haulystic, can help you with different documentation required in different destination countries.
Duties and Taxes
Your business may present the right information about your products, and it may submit all the required documentation, but your sea freight or air freight, cannot be released to your importer or buyer during the custom clearance process. Depending on the destination, you may need extra paperwork, while in some countries, certain commodities are not allowed or special permits are needed. What is more, upon the arrival to the final destination, you may discover, that the there are duties that exceed the amount that you initially paid.
Your air or sea freight may be delayed until you resolve all the custom clearance issues and pay all the excessive fees and duties. If the loading / unloading of your products takes more than 2 hours to complete, then keep in mind that you will be charged with a detention fee for every hour that you hold the truck. Hence, you should be prepared and keep a contingency protocol in case any issues need to be resolved during the loading / unloading of your goods.
Have you heard of the term Demurrage? Let me explain this term so you can understand and prepare your supply chain accordingly. Demurrage, is the excess fee that you will have to pay, if your products are held longer than the arranged free time at the final destination port. The issues for holding your cargo at the port may be due to a lengthy examination of your goods, custom clearance issues or damaged containers. In case of your container being damaged, you should report it within the stipulated time, otherwise no compensation will be given. You should always make an estimation on the lead times and plan accordingly.
Be careful of the health and safety issues that may rise in the custom clearance process. Your products can be viewed, by the local office, as a potential risk for health and safety. If that occurs, then your goods will not be cleared through customs and they will be rejected to enter the country. Additionally, regulations regarding the packing of your products may differ from country to country. Be aware of these policies and try to pack your items properly, or else your goods will be rejected during custom clearance.
All in all, you can now see that custom clearance is a difficult process, that can cause many problems to your business. If the issues mentioned above rise, then, in the best-case scenario, your cargo will be delayed and in the worst-case scenario, your cargo will be rejected and returned back to you.
Before sending your products to another country, always consider the problems that may be caused in custom clearance process and create an efficient supply chain strategy on how to avoid these issues and how to effectively clear your products through customs.
Never forget, to collaborate with a trusting freight forwarder that will help you to be entirely compliant with the regulations and policies of each country, while making sure that the logistics solution is tailored to your requirements.
At Haulystic, we want to make shipping simple! Our expertise on custom clearance means that we can foresee the hurdles of customs and create an approach for you, so you can avoid them and send your products to your buyer effectively.
Call us now to discuss all the custom clearance problems and see how Haulystic can ease your worries about your shipments.