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CUSTOMS CLEARANCE

Speed up your business with these expert tips on "Customs clearance". Analyse and discover this TIP!

An important part of the customs process concerns the management of documentation.

In addition to the obligation, the factors to be taken into account when adding or not adding further documents to an import or export traffic are as follows

  • Territory of destination or origin. 
  • Content of the consignment or nature of the goods. 
  • Declared value of the goods. 
  • Type of export / import: definitive or temporary Territory of destination or origin.

This first criterion refers to the zones, countries or territories between which the goods are moved and that there are no trade agreements that exempt the sending of more documentation than the delivery note. 

For example, agreements between EU member states allow buyers and customers to move all kinds of goods within the EU as if they were in one country. All that is needed is the alabaran. 

On the other hand, for goods traffic between Spain and the Canary Islands, despite being part of the same country, additional documents are required in addition to the delivery note, as the islands have their own customs regime. 

Content of the consignment or nature of the goods 

Depending on the criteria set by customs in each country, a product may be considered "non-declarable" or "declarable". A non-declarable consignment is not taxable and can travel with only the transport document, whereas declarable consignments must be accompanied by other documents: at least one non-commercial invoice. 

In some cases, the same item, depending on the quantity or weight, is considered differently. For example, Spanish customs classify magazines as documents, but from 30 units upwards, they are classified as goods and customs procedures change. 

Declared value of the goods 

The monetary value of a declared good on the invoice is a determining criterion in the customs clearance process. However, if the consignment does not exceed the cut-off value set by the customs office of destination, the consignment will be considered as a document and the transport document is sufficient to justify entry into the country. 

Exports / Final imports 

Usually goods for sale. It arrives in the country of destination and is used for consumption or as an input for the assembly and manufacturing processes of other goods. It is always customs cleared and in very few cases is usually duty free. 

Exports / Temporary imports 

A temporary export is when a customer sends goods that have to travel for a limited period of time and then return to the country of origin. Ex. Repairs, exhibitions, shows, etc. 

Within a specified time limit, the shipment must be returned to the country of origin, unless the goods are sold at destination, in which case they lose their temporary status. Temporary exports will never generate tariffs at destination but do require a guarantee or security: same amount as the customs charges that would be incurred if it were permanent. 

Inward and outward processing traffic 

The processing of goods is understood to be the series of operations to which they must undergo in order to complete their manufacturing process. The rules of international trade allow these processing operations to be carried out in a country other than the country of origin of the goods, provided that technological advances and/or labour costs impossible to apply in the country of origin are applied. 

TWO MODALITIES:

  1. Active Enhancement.
  2. Passive Improvement.

Customs clearance is the process of complying with the regulations and legal requirements necessary to import or export goods across international borders. This process is carried out by a customs broker, who is a professional with specialised knowledge of customs procedures and formalities.

The customs clearance process includes the preparation and submission of the necessary documents, payment of the relevant taxes and duties, inspection and classification of the goods, and verification of compliance with applicable rules and regulations. The objective of customs clearance is ensure that goods being imported or exported comply with all relevant laws and regulations and are processed safely and efficiently.

Customs clearance is a critical step in international trade, as any error or non-compliance with customs regulations can result in delays in delivery, fines or even confiscation of goods. Therefore, it is important to have a reliable and experienced customs broker who can guide companies through this complex process and ensure that all legal requirements are met.

PRACTICAL EXAMPLES OF CUSTOMS CLEARANCE:
A US COMPANY WISHES TO EXPORT A QUANTITY OF AUTOMOTIVE SPARE PARTS TO MEXICO.
  • For customs clearance, a customs broker must prepare and present the necessary documents, such as the commercial invoice, bill of lading, certificate of origin and packing list.
  • The customs broker must also verify whether any special licences or permits are required to export the goods. Once the documents and requirements are met, the customs broker performs the classification and valuation of the spare parts and pays the corresponding duties and taxes at the Mexican customs.
A COMPANY IN JAPAN WANTS TO IMPORT A BATCH OF HIGH-END MOBILE PHONES FROM SOUTH KOREA:
  • For customs clearance, a customs broker in South Korea must prepare and present the necessary documents, such as the commercial invoice, bill of lading and certificate of origin.
  • The customs broker must also ensure that the mobile phones comply with the safety standards and import regulations in Japan, and coordinate with the customs broker in Japan for inspection and payment of applicable duties and taxes.
A COMPANY IN SPAIN WISHES TO EXPORT A BATCH OF WINES TO BRAZIL:
  • For customs clearance, a customs broker in Spain must prepare and present the necessary documents, such as the commercial invoice, bill of lading, health certificate and certificate of origin.
  • The customs broker must also check whether any special permits are required to export the wines and coordinate with the customs broker in Brazil for inspection and payment of the corresponding duties and taxes at Brazilian customs.

These are just a few practical examples of how customs clearance is carried out in international trade. Each country has its own customs regulations and requirements, so it is important to have a reliable and experienced customs broker who can guide companies through this complex process.

How can I use Artificial Intelligence (AI) to find out about customs clearances in each country?

IF YOU WANT TO USE CHATGPT TO ARRANGE CUSTOMS CLEARANCE IN EACH COUNTRY, HERE ARE SOME STEPS YOU CAN FOLLOW:

  1. Make a list of the countries you are interested in and where you want to learn about customs clearance processes.
  2. Ask ChatGPT about the customs requirements and clearance processes in each country. For example, you can ask: "What are the customs requirements and clearance processes in [country of interest]?"
  3. ChatGPT will provide you with information on the clearance processes and customs requirements in each country, including the necessary documents, deadlines and specific regulations that must be met. In addition, it will inform you about the possible costs associated with customs clearance.
  4. If you would like more detailed or specific information, you can conduct an additional search online or consider consulting a local customs broker for expert advice.

It is important to note that customs clearance processes may vary from country to country and may also depend on the type of product or service being imported or exported.

Therefore, it is important to thoroughly investigate the specific requirements and processes for each situation. ChatGPT can be a good source to start your research, but you should always be sure to confirm any important information with additional sources.

APPLY THIS TIP TO YOUR PROJECT

TASK

CASE STUDY OF A CLARIFICATION PROGRAMME ENTREPRENEUR WHO HAS STARTED TO INTERNATIONALISE AND WANTS TO BE AWARE OF AND COMPLY WITH CUSTOMS CLEARANCES

Juan is the founder of a technology start-up in Colombia that has been accepted into an accelerator programme. His company is dedicated to the development of mobile applications and has been very successful in the local market. Juan now wants to expand his business to other international markets, so he has decided to explore opportunities in the United States and Europe.

Before he starts exporting his products, Juan knows that he must be aware of the customs clearance processes and legal requirements in the destination countries.

TO OBTAIN INFORMATION, JOHN DECIDES TO USE CHATGPT IN THE FOLLOWING WAY:
  • "Hello ChatGPT, I would like to know what the customs requirements are for exporting mobile applications from Colombia to the United States and Europe."
CHATGPT PROVIDES THE FOLLOWING INFORMATION:

"Customs requirements for exporting mobile applications from Colombia to the United States and Europe may include the preparation and presentation of documents such as the commercial invoice, bill of lading, packing list, and certificate of origin. In addition, special permits or licences may be required in some cases. It is also important to comply with all applicable rules and regulations in each destination country."

  • "Thank you, ChatGPT, and what are the customs clearance processes I need to follow in the United States and Europe?
CHATGPT PROVIDES THE FOLLOWING INFORMATION:

"Customs clearance processes in the United States and Europe may include the submission of documents, inspection and valuation of goods, payment of applicable duties and taxes, and verification of compliance with applicable rules and regulations. In addition, special permits or licences may be required in some cases."

With this information, Juan can start preparing for the customs clearance processes and ensure that he complies with all legal requirements. He might also consider hiring a local customs broker to help him navigate the customs processes and comply with all applicable regulations.

In a nutshell, Knowing and complying with customs clearance processes is essential for any company wishing to internationalise and export its products.

ChatGPT can be a useful tool for obtain general information on customs requirements and processes in different countries, but it is always recommended to confirm information with additional sources and work with international trade experts to ensure compliance with all applicable regulations.

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