In international trade, having knowledge about customs procedures is of great importance to manage a successful logistics process. When sending cargo abroad, there are various procedures and documents that apply to both the exporter and the importer. Completing the customs processes correctly and completely prevents additional costs by ensuring the timely delivery of the cargo.
To speed up the customs process, acting in accordance with export legislation, preparing the necessary documents completely, and taking advantage of the customs services offered by transportation companies provide a great advantage. If you are also wondering how customs procedures are carried out, which documents are required, tax calculation methods, and common problems that may be encountered, let us take a look at the details together.
Customs Process When Sending Cargo Abroad
When sending cargo abroad, the complete completion of the export process ensures that the products pass through customs without any problems. Factors such as the legislation of the country of export, the type and value of the cargo determine how customs procedures will be carried out. First of all, an appropriate carrier company should be selected and shipment planned according to the transportation mode of the cargo (road, air, sea). Then, relevant export declarations and invoices must be prepared and submitted to customs authorities. The customs declaration is an official document containing the details of the products carried and must go through customs control.
After the customs procedures are completed, the cargo departs from the exporting country and is checked again when it reaches the customs of the importing country. It must be processed in accordance with the taxes and tariffs of the importing country. Some countries may request additional documents for specific product groups. Therefore, the customs policies of the destination country should be researched in advance.
Required Customs Documents and Paperwork Procedures
In order for customs processes to proceed smoothly, certain documents are required in import and export transactions. Every country may have different regulations, but generally, the most commonly requested documents are:
• Commercial Invoice: It contains details such as the description, quantity, value of the product, and buyer information.
• Packing List: It shows the contents, packaging method, and weights of the products in the cargo.
• Customs Declaration: It is the official declaration form submitted to customs and is mandatory for export and import transactions.
• Certificate of Origin: It shows the country where the product was manufactured and is mandatory for some countries.
• Bill of Lading / Air Waybill: It is the document issued by the carrier company stating that the product has been transported.
• Insurance Policy: If cargo insurance has been taken out, it is the document showing that the products are safe during the transportation process.
How are Customs Duties Calculated?
Customs duties, which are one of the most important cost items in international trade, vary depending on the country of origin of the sent product, the customs tariffs of the importing country, and the type of the product. Each country shapes its national economic policies by applying different rates of customs duties and additional charges on imported products. These taxes are generally implemented to balance imports, protect local manufacturers, and increase government revenues. Therefore, it is of great importance for exporting companies to research the customs legislation and import procedures of the target market in advance.
One of the most important factors in calculating customs duty is basing it on CIF (Cost, Insurance, and Freight) or FOB (Free on Board) values. While the CIF price includes insurance and transport costs in addition to the product cost, the FOB price only covers the product cost. Countries determine which price type they will calculate tax on according to their own import policies. In addition to this, the tax rate determined over the product's customs code (HS Code - Harmonized System Code) is applied. The HS Code, as an international system that allows the classification of products, may vary according to the importing country.
Apart from this, in addition to customs duty, additional taxes such as VAT (Value Added Tax) and, in some countries, SCT (Special Consumption Tax) may also be applied. Different additional costs may be involved depending on the value, category, and usage area of the imported product. Especially in imports made from certain countries within the scope of free trade agreements (FTA), customs duty exemptions or low tax rates may be applied. Therefore, companies need to examine trade agreements, tax rates, and legal regulations in the target market before exporting. Official customs sites and professional logistics companies are the most reliable sources for keeping track of current tax rates and import rules.
Common Problems Encountered in the Customs Process
One of the most common problems encountered in the customs process is that the required documents are incomplete or incorrect. The lack of documents such as the commercial invoice, bill of lading, certificate of origin, or customs declaration can cause delays in customs procedures and lead to additional costs. Shipments with missing documents are held at customs or are not allowed to depart until the relevant paperwork is completed. In addition, documents containing incorrect or inconsistent information can also negatively affect the customs process. For example, writing the invoice value incorrectly or product descriptions not being compliant with the coding system of the importing country can lead to prolonged customs inspections and the application of additional audits. To prevent such errors, it is necessary to work with professionals who are experts in customs legislation and to ensure that all documents are prepared fully and correctly.
Another important issue is the incorrect calculation of customs duties and fees. Incomplete or incorrect determination of tax rates can lead to unexpected additional expenses, reducing the profitability of commercial activities. Factors such as HS Code (Harmonized System Code) applications, which change between countries, and free trade agreements can directly affect tax rates. Additionally, some countries may apply import restrictions, not allowing the entry of certain products, or may request additional licenses and certificates. For instance, specific quality standards and permit documents may be mandatory in sectors such as medicine, cosmetics, food, and electronic products. To prevent such risks, the customs legislation of the country to be exported to should be researched beforehand, and all processes should be planned in accordance with international trade rules.
Ways to Speed up Customs Processes
To speed up customs processes, digital customs systems (E-Customs) are becoming increasingly common. Many countries shorten processing times by using systems that allow customs declarations to be submitted electronically. Thanks to electronic customs clearance, import and export transactions can be tracked digitally, ensuring that documents are complete, and manual processing errors can be minimized. Furthermore, planning and automating customs inspections in advance helps speed up cargo flow. Especially for businesses engaged in high-volume trade, digital systems offer a great advantage for the smooth progress of the customs clearance process.
In addition, working with authorized customs brokers ensures the process proceeds without errors. A professional customs broker can prevent delays and additional costs that may arise at customs by helping to prepare all necessary documents completely. Furthermore, some carrier companies allow products to be delivered faster in the target country by ensuring that import taxes are paid in advance. This method is particularly advantageous for products that require fast delivery, while also preventing the importer from facing tax surprises. By combining digital solutions and professional support services, businesses can manage more effectively using a customs processes guide and gain a competitive advantage in international trade.
Customs Services of Cargo Companies
Many international cargo companies offer additional services for easier management of customs processes. Some prominent logistics companies are:
• DHL Express: Offers fast delivery and automated customs services.
• FedEx International Shipping: Provides digital documentation and online tax calculation capabilities for customs procedures.
• UPS Customs Brokerage: Offers customs brokerage and trade consultancy services.
• TNT Express: Offers expedited customs services and solutions that facilitate import-export.
By working with the right logistics company, you can manage customs processes in international shipments in the most efficient way. Navlungo provides advantages to your business with fast and reliable customs services that facilitate your export and import processes. With digital logistics solutions, professional customs consultancy, and cost-effective shipping options, you can carry out your product shipments abroad smoothly. Meet Navlungo, optimize your logistics processes, and gain a competitive business advantage in the global market!
