A Simple Guide to Customs Clearance
What is customs clearance?
Customs clearance is a compulsory process for any goods entering or leaving a country. It requires the submission of various export and import documentation, as well as the payment of duties, VAT and any additional costs such as storage and testing by customs agents.
Citizens should pay import duties to the customs according to law based on different customs policies of various countries and regions.
Please note that the tax is not collected by BT-Miners but by local customs.
How long does customs clearance take?
Customs clearance is typically completed in minutes or hours, but it can extend to days or weeks if there are missing documentation or if the goods needs to be inspected. In such cases the goods will be held until the necessary documentation has been provided or customs agents have completed their checks.
How are customs charges calculated?
Customs charges are determined by the following:
- Duty – This is a tax levied by a country on all imported goods. It is charged as a percentage of a product’s value, as determined by its commodity code and associated duty rating. Commodity codes can be found on your government’s Trade Tariff website.
- VAT – This is generally charged on the amount paid for the goods, the shipping costs and the duty. Combined, this is known as the ‘taxable import’. The rate of VAT differs by country.
- Additional costs – Customs charges also include any costs accrued as a result of goods being held by customs. Importers can be charged for any tests or X-Rays conducted to check whether a product is safe to enter the country and/or complies with trading or quality standards. They may also need to pay for storage should goods be held for longer than the allotted free-time period.
- Anti-dumping duty – Certain products may be subject to anti-dumping duty. This duty is imposed by countries when they wish to protect the domestic manufacture of the product and in turn deter the import of it at a lower cost than the supplier’s native market rate. Importers can find out if their goods carry anti-dumping duty (and how much) through the Trade Tariff website.
How do you pay customs charges?
Most importers and exporters will have a freight forwarder or customs broker that pays customs charges on their behalf, saving them the trouble of paying it themselves. If the importer manages their own shipments, they’ll typically be sent an invoice detailing the charges once the goods arrive in the country. These will need to be paid before the goods are released for onward transport.
In certain circumstances, the importer won’t be liable for the payment of import charges. It will depend which incoterms (International Commercial Terms) has been agreed between the importer and supplier (exporter).
What documentation is required for customs clearance?
The amount of documentation required for customs clearance will vary by country, but the following documents are required in the majority of countries:
Export Documentation
- Purchase order from the buyer
- Sales invoice
- Packing list
- Bill of lading or air waybill
- Certificate of origin
- Any other documentation as required by the buyer, or as outlined in a letter of credit from a financial institution
Import Documentation
- Purchase order
- Sales invoice from supplier
- Bill of lading or air waybill
- Packing list
- Certificate of origin
- All other documentation as required by the buyer or the terms of a letter of credit
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Customs and Import Duties in India
Almost all imported commodities into the country are subject to customs taxes.
Some countries have higher import taxes because the country promotes domestic and local industries. This is known as import substitution industrialization (ISI), a trade policy that focuses entirely on replacing import-based manufacturing and production with indigenous ones.
Basic Customs Duty (BCD): Basic customs duty is a type of tax imposed under the Customs Act, 1962. The basic customs duty charged differs from item to item, and the Central Government of India has the right to exempt or reduce any item from being taxed the basic customs duty.
Rates: 0 to 100% (depending upon the HS code and its origin, based on past customer response, typically 70 per cent)
In order to assist you with customs clearance, here are the documents we are able to provide:
- Purchase order (not applicable for most customers);
- A description of the product you purchased or a link to the product or the product page containing the price (please contact us for this);
- Commercial invoice (please contact us for this);
- Bill of lading or air waybill (you will receive from the courier);
- Certificate of origin (if requested please contact us)
*We will reconfirm with you about the customs declaration before shipment.
*If there are any documents that you would like us to provide, please contact us via email: store@bt-miners.wp-diary.com. -
Spain Customs and Import Duties
The first step to import a product is to pay the corresponding tariffs or custom duties.
Spain is party to the European Union’s Common Customs Tariff, therefore preferential rates apply to imports from countries which the EU has signed agreements with.
Remember that the European Union operates as a single block at the level of foreign trade, so no fees are paid for importing products to Spain from a member state. For instance, there won’t be any tariffs or custom duties if you were to import something from Germany, a fellow EU state. But if your products come from outside of EU, their entry into Spain will be subject to the payment of tariff rates that usually range between 0% and 17% of their value, with the general tariff averaging 4.2% .
In order to assist you with customs clearance, here are the documents we are able to provide:
- Purchase order (not applicable for most customers);
- Commercial invoice (please contact us for this);
- Bill of lading or air waybill (you will receive from the courier);
*We will reconfirm with you about the customs declaration before shipment.
*If there are any documents that you would like us to provide, please contact us via email: store@bt-miners.wp-diary.com.
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UAE Customs and Import Duties
ICP is the federal entity responsible for customs procedures, inspection, control, tariffs and customs data. It is also responsible for combating customs smuggling and fraud on all incoming, outgoing and transit shipments and goods through the UAE’s ports.
Residents shopping internationally over the stipulated value will now have to pay the following on their purchases:
- 5 percent import customs duty
- 5 percent value-added tax (VAT)
However, goods imported with a value of less than Dh300 will be exempted from customs duties. Tobacco, tobacco products, e-cigarettes, nicotine liquid, alcoholic beverages and foods containing alcohol are excluded from the exemption of customs duties.
In order to assist you with customs clearance, here are the documents we are able to provide:
- Purchase order (not applicable for most customers);
- Commercial invoice (please contact us for this);
- Bill of lading or air waybill (you will receive from the courier);
- Certificate of origin (if requested please contact us)
*We will reconfirm with you about the customs declaration before shipment.
*If there are any documents that you would like us to provide, please contact us via email: store@bt-miners.wp-diary.com.
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EU Customs and Import Duties
If you need to pay import duty on good, you’ll be contacted by Royal Mail (or your courier) and told how to pay. As your parcel will be from outside the EU, you may be charged VAT or excise duty on it. You’ll also need to pay customs duty on gifts if they’re worth more than a certain value. You’ll usually have 3 weeks to pay any charges, before they send parcel back.
You’ll need to know the tariff or HS code to calculate the exact rate due. If you also need to pay VAT, it’ll be charged on the total value of your goods, including import duty.
Type and value of goods Import duty rate Any goods under £135 No charge Gifts worth £135-£630 2.5% (lower for some goods) Gifts above £630 and any other goods above £135 Depends on the type of goods and country of export. Check the HS code of goods to get the exact rate. In order to assist you with customs clearance, here are the documents we are able to provide:
- Purchase order (not applicable for most customers);
- Commercial invoice (please contact us for this);
- Bill of lading or air waybill (you will receive from the courier);
*Please remember to note your VAT account number when placing your order!
*We will reconfirm with you about the customs declaration before shipment.
*If there are any documents that you would like us to provide, please contact us via email: store@bt-miners.wp-diary.com.