What Is Customs Clearance of Cargo

For many companies importing goods for the first time, customs clearance seems like a fairly complex process. It requires knowledge of the specific features of cargo clearance, which differ from country to country. Correct completion of all procedures can significantly reduce delivery time and lower the risk of additional costs.

Most trading companies engage customs brokerage services at the customs clearance stage, as a qualified specialist knows the nuances of legislation and the peculiarities of bureaucratic procedures.

What Is Cargo Customs Clearance

Customs clearance of cargo is the process of formalizing and registering a shipment of goods at the border to allow for the legal import or export of goods. It is governed by a series of laws and regulations aimed at ensuring security, protecting the domestic market, and fairly collecting duties and fees.
It includes document checks, calculation of duties and taxes, and inspection of the cargo for compliance with safety requirements and quality standards adopted in the country.

Types of Customs Clearance

Depending on the type of goods, their characteristics, composition, and purpose, the document processing may differ. Specifically:

• Expedited procedure — for emergency goods requiring immediate or priority entry into the country. Expedited clearance can apply to medicines, perishable goods, humanitarian aid, etc. This involves the use of special channels for fast-track checks.
• Import for processing — implies a temporary exemption from duties and taxes for goods stored under customs control. Applied to raw materials and products intended for further processing, assembly, or export, not to be sold in the domestic market.
• Pre-arrival customs clearance — allows submission of necessary documents in advance. Customs authorities can perform checks and calculate duties beforehand, speeding up release upon arrival. Suitable for large and frequently imported shipments.
• Temporary importation — entry of foreign goods with an obligation to re-export them within a set period without altering their condition (except for natural wear and tear). Used for exhibitions, repairs, testing, cultural events, equipment use, etc. It may come with full or partial exemption from customs payments.
• Re-importation — import into Ukraine of goods that were previously exported from the customs territory.

Customs clearance regulations may change — monitor updates on the official websites of the Customs Service.

Customs Clearance Procedure

In addition to special types of clearance based on goods’ characteristics, there is a standard procedure, which includes several steps:

1. Submission of documents. Providing complete information about the cargo, including invoices, transport documents, certificates of origin, etc.
2. Document and cargo check. Customs authorities verify the submitted documents for accuracy and compliance, and conduct inspections if necessary.
3. Calculation and payment of duties, taxes, and fees. The amounts are determined based on the characteristics, value, and country of origin of the goods.
4. Release. If customs clearance is properly completed, the cargo receives permission for importation and can proceed to further transportation or sale.

If violations are found during the check, the importer may face fines, confiscation of the goods, and even criminal liability.

What Documents Are Required for Cargo Customs Clearance

The documents for customs clearance (when importing into Ukraine) include:

1. Foreign trade contract with all annexes, appendices, and specifications.
2. Transport documents (depending on the type of transport): TIR Carnet, CMR, Bill of Lading, AWB, TTN.
3. Invoice (commercial invoice).
4. Packing list.
5. Documents confirming the delivery cost to the border.
6. Insurance contract, policy, payment invoice.
7. Certificate or declaration of origin.
8. Documents confirming the customs value.
9. Customs declaration.

The declaration is the most important document for customs clearance. There are several types:

• Regular, which includes all necessary information for customs control.
• Preliminary, submitted before the goods enter Ukraine’s territory or transit.
• Temporary, submitted if the owner or broker lacks precise data about the cargo condition required for a standard declaration. A full declaration must be submitted within 45 days of the temporary one.
• Periodic, may be submitted for regular border crossings of goods by the same person under the same conditions (no more than 180 days).
• Simplified, used for the declaration and release of goods into the customs regime by an authorized company.
• Supplementary, submitted as a note to all others.

The list of customs clearance documents may vary; this is a general overview. Always check details with a customs broker. They have extensive experience accompanying and clearing cargo, know legal nuances, and understand documentation procedures.

Their services are especially relevant for complex procedures, such as shipping goods from Ukraine to the USA.

Customs Clearance Cost

The cost of customs clearance depends on the cargo, customs duties by HS code for a particular goods group, taxes, and other payments. You also need to account for customs broker fees. Therefore, the exact cost is calculated individually for each shipment.

How Much Time to Allow for Customs Clearance

With a complete set of documents submitted on time, customs clearance typically takes around 4 hours. If issues arise, the cargo may be delayed for several days or weeks. It's best to allow about 48 hours to account for checkpoint workload and buffer time for force majeure.

Why Cargo May Be Delayed

The time required for customs clearance depends on various factors, including cargo type, volume, document complexity, and inspection times. Typically, it takes a few hours to several days, but in complicated or disputed cases, it can stretch into weeks. It is crucial to prepare all necessary documents in advance and follow procedures.

Cargo delays at the border can occur due to the following reasons:

• incorrect documentation or incomplete submission. Leads to delays and extra inspections;
• violation of labeling and packaging regulations. Can also cause delays until resolved;
• inaccurate declaration of cargo value. This customs clearance mistake may result in fines and increased duty and tax amounts;
• late document submission. Significantly increases the cargo’s time at customs;
• incorrect HS code classification. Errors in the commodity nomenclature can cause problems with duty and tax calculations.

Many entrepreneurs ask how to handle customs clearance independently. If you lack experience or knowledge of laws and regulations, it’s better to delegate the process to a customs broker.

Smooth Customs Clearance Is Possible

For sellers who want to simplify the customs clearance process, the obvious solution is to contact professionals. The DiFFreight team can help avoid mistakes and delays at customs.

We organize and execute international logistics with customs clearance of exports and imports. Our customs brokerage services include complete documentation support, calculation of duties and taxes, and consultations on all customs-related matters. Our experts will handle all customs clearance stages to minimize risks and ensure smooth supply chain operations.