Customs clearance is the authorization granted by a government’s customs department that allows a shipment to enter or exit a country’s borders.
Customs clearance is a critical step in the international shipping process. Once a shipment is cleared, shippers must provide the necessary documentation demonstrating that all applicable duties and fees have been paid before the shipment can be released.
This procedure applies to all international shipments, with each country imposing its own duties, fees, and regulatory requirements. Shippers may either research and calculate these independently or work with a customs broker who brings local knowledge and expertise.
The Customs Clearance Process Can Be Divided into Four Main Stages:
- Paperwork Verification
A customs officer verifies that all required shipment documentation—such as commercial invoices, shipper and receiver details, and other relevant forms—has been completed accurately and completely. - Customs Officer Check
The customs officer evaluates the shipment to determine applicable fees based on the type of cargo, declared value, and the importing country’s laws. At this stage, they also confirm whether duties and other charges have been paid. - Taxes, Duties, and Other Payments
When Customs assesses duties on a shipment, the shipper can opt for either:- Delivery Duty Paid (DDP): All duties and fees are paid by the shipper.
- Delivery Duty Unpaid (DDU): The buyer/importer is responsible for paying the required duties upon delivery.
- Release of Shipment
Once all paperwork is verified and all duties, taxes, and fees are paid, Customs authorizes the release of the shipment for final delivery.