CUSTOMS CLEARANCE: FUNCTIONS AND TYPES - CULTURE VOCABULARY - 2025

The clearance is the documented permission to pass through customs a national customs authority granted to imported goods so they can enter the country or to be granted to goods to be exported so that they can leave the nation.

Customs clearance is usually given to a customs broker to prove that all applicable customs duties have been paid and that the shipment has been approved. Each port in each country in the world makes the merchandise have to go through a customs clearance process.

Also, the rules, regulations and laws are a bit different from country to country, even sometimes from port to port within the same country, making someone who specializes in customs clearance very important to an exporting shipper. and imports goods. These specialists are called customs brokers and the work they do is called customs brokerage.

Features

All imported goods must go through customs procedure for proper examination and evaluation. This helps customs authorities to collect the appropriate tax, and also to control the goods against illegal importation.

The function of customs clearance involves the preparation and presentation of the documentation required to facilitate the export or import of merchandise. It is done as follows:

- Intercept the smuggling of prohibited merchandise (such as illegal drugs).

- Evaluate the payment of duties and collect the payment of customs duties, special taxes and the tax on goods and services from imports.

- Protect the country's companies against illegal trade.

- Enforce import and export restrictions and prohibitions.

- Collect the precise data of import and export.

Customs Broker

Its function is to represent the client during the examination, evaluation, payment of duties and receipt of the merchandise together with the documents, delivered by customs after authorization.

Ensures accurate compliance with customs requirements and timely clearance of products. Whether you're shipping by air, sea, or land, it helps reduce the risk of delays or fines.

It can be very troublesome for the wrong person to handle the customs broker. Shipping containers must be stored while it is going through customs clearance.

Custody and storage fees can add up quickly. If there is a problem with the customs agency and the customs clearance goes awry, the shipping costs could increase from hundreds to thousands of dollars.

In addition to these costs, delayed delivery of shipping containers due to customs clearance problems could cost the company more money because the arrival of the shipment is delayed.

Required documents

Along with the import declaration submitted by the importer or his representative, the following documents are generally required:

- Vendor sales invoice.

- Packing list.

- Bill of lading or airway invoice.

- Letter of credit or bank draft, whenever necessary.

- Certificate of origin, if a preferential tariff rate is claimed.

- Import license.

- Insurance document.

- Industrial license, if necessary.

- In case of chemical products, test report.

Import declaration

An import declaration is a declaration on the nature and value of the goods to be imported or exported, prepared by the sender and presented to customs.

Payment of the fee

The import duty can be paid at designated banks. The different customs have authorized different banks to pay the tax.

Types

Definitive customs clearance

Also known as customs clearance for the consumption of goods, it occurs when any foreign merchandise enters the country, owned by a company that is in it.

Therefore, as foreign goods enter the territory, they are already considered as a new asset of the importer.

The final customs clearance is not carried out to nationalize the goods, since the foreign merchandise must have been nationalized in order for it to be cleared from customs.

Your authorization is necessary for all legal procedures to be carried out before the goods are delivered to the importer.

Foreign goods subject to final customs clearance also include the following goods:

- Brought to the country with the benefit of being a return.

- Intended for a free trade zone or any other export processing zone

- Admitted under a special admission regime, but still subject to the common import process.

Non-final customs clearance

Also known as temporary customs clearance, it occurs when imported goods remain an asset of the exporting country.

Therefore, these goods are not necessarily an asset of the importer, who enters the territory under normal conditions. Upon arrival, they are given a specified period for these goods to be re-exported.

The main characteristic of this type of customs clearance is the tax exemption granted to foreign goods entering the country.

It is also important to mention that these taxes will only be suspended while the goods are kept within the period established for the special regime of special admission.

Technically, the main difference between the two types of customs clearance is completing the information on the import declaration, the most important import document.

In addition, no fees are charged for the type of non-definitive customs clearance. The only exception to this occurs in cases of temporary admission of assets that will participate in any income-generating activity. In these cases, the tariffs will be applied in proportion to the duration of the stay of the goods.

Customs clearance in advance

Although it is not exactly a different type of customs clearance, but rather a different modality, it should be mentioned here.

Advance customs clearance occurs when there is a special need for goods to be cleared as quickly as possible, and then shipped to the importer.

In this modality of customs clearance, all document verification is carried out before the product arrives in the country. Normally, this procedure is adopted for the importation of perishable products. Other cases in which customs clearance is adopted in advance are:

- Products transported in bulk, whose unloading must be carried out directly to oil terminals, silos, special warehouses or special vehicles.

- Flammable, corrosive, radioactive products or any other product that may be dangerous.

- Printing paper for books, newspapers and periodicals.

- Public entities.

References

1. BusinessDictionary (2018). Custom clearance. Taken from: businessdictionary.com.
2. Patrick Bruha (2018). Types of Customs Clearance In Brazil. The Brazil Business. Taken from: thebrazilbusiness.com.
3. Raymond Rau (2013). What is Customs Clearance? Universal Cargo. Taken from: universalcargo.com.
4. New Zealand Post (2018). What is Customs and what role do they play? Taken from: support.nzpost.co.nz.
5. Ei Group (2017). Types of customs clearance and their functions. Taken from: blog.grupoei.com.mx.