Your Guide to Simplifying Cross-Border Shipping for U.S. Businesses

What is Customs Clearance?

When you’re shipping goods internationally—whether entering (importing) or leaving (exporting) a country —there’s a crucial step that you can’t overlook: customs clearance. This is a mandatory process where Customs authorities require you, the shipper, to declare your goods through a customs declaration. Think of it as a formal introduction of your shipment to the country’s Customs officials. The Customs declaration is a set of documents that accompany your shipment – often digitally - that provides vital information about what you’re shipping, including details like the nature of the goods, their value, and their classification.

Based on the customs declaration, the Customs authority will assess the paperwork and shipment for compliance and adherence to local legal regulations. They’ll then issue a Duties & Tax Assessment, which indicates what you owe in taxes and duties for the shipment to be released. After you make the necessary payments, Customs will confirm the Customs Release—or “Customs Clearance”—often right when your shipment arrives.

Why Understanding Customs Clearance is Essential 

Navigating international shipping can be tricky. If you don’t comply with Customs regulations, your goods could be delayed, inspected further, or even seized. This could lead to unhappy customers and potential fines for your business. But don’t worry! We’re here to help you avoid these common pitfalls. Below, we’ll explore the top reasons for customs clearance delays and how you can steer clear of them.

7 Common Reasons for Customs Clearance Delays—and How to Avoid Them

1. Inaccurate Data or Incomplete Documentation

Missing or incorrect information is a common cause of customs delays. If your Commercial Invoice isn’t detailed enough, your shipment could be stuck in limbo.

Solution: Pay special attention to the two most important Customs documents - your Commercial Invoice and Waybill or shipping label. Make sure to provide a thorough description of the goods, their value, and the correct tariff code, along with correct contact information for the shipper and the receiver. This guide will help you fill out the Commercial Invoice correctly, and make the customs clearance process smooth.

2. Incorrect HS Code

What’s an HS Code? Harmonized System Codes (HS Codes or Tariff Codes) are globally standardized codes that classify your shipped goods. Without the correct HS Code, Customs can’t identify your shipment’s contents or calculate the required duties owed.

Solution: Use your country’s government website or DHL’s MyGTS (My Global Trade Services) tool to find the right HS Code for your products.

3. Undervaluation of Goods

All shipments are required to declare the value of their goods on the Commercial Invoice. Some shippers try to lower their customs duties by undervaluing their goods. This practice is illegal in many countries and can lead to hefty fines.

Solution: Always declare the true market value of your goods on the Commercial Invoice. Transparency is key! If Customs suspects undervaluation, they may ask for proof of payment or receipts, which could lead to delays and increased duties.

4. Non-Compliance with Import/Export Regulations

Every country has its own set of customs rules, including lists of restricted or prohibited items. Ignoring these regulations can result in your shipment being held or seized.

Solution: Research the Customs regulations for both the country you’re exporting from and the one you’re exporting to. DHL’s MyGTS can help you quickly and easily check the necessary import and export requirements.

5. Failure to Pay Duties and Taxes on Time

Customs duties and taxes must be paid before your goods are released at the time of import in the destination country. Delays in payment can delay your shipment or even risk being returned back to you at origin and create frustration for everyone.

Solution: Establish who will pay the Import Customs Duties & Taxes before shipping. Learn about the two types of payment options:

1. There are two options: 
   If the shipper has pre-selected the option to pay for the Import Customs Duties & Taxes using DDP terms, then no further payment is needed from the receiver prior to delivery. 
   
   

2. If the shipper has NOT pre-selected the option to pay for the Import Customs Duties & Taxes using DDU terms, then the receiver will be charged prior to delivery. There are two options for that payment: 
    

a.  If the receiver has a DHL account, DHL will bill the receiver’s account.

b.  If the receiver does not have a DHL account, DHL will send a link to the receiver for payment to be made online. Please make the online payment as soon as possible to ensure a smooth delivery of your shipment.

6. Improper Labeling or Packaging

Labels that are unreadable or incomplete, along with inadequate packaging, can lead to damaged or rejected shipments—especially for “hazardous” materials.

Solution: Double-check the packaging and labeling requirements for your destination. Make sure everything is clear and compliant, especially if your shipment includes “Hazardous” or “Dangerous Goods.” If you have any doubts, our Certified International Specialists are here to help.

7. Lack of Communication with Customs Authorities

Customs authorities or a Customs broker may reach out for additional information about your shipment. Ignoring these requests can cause delays.

Solution: Always respond promptly to any inquiries from customs or DHL Express. Quick communication ensures that any missing or inaccurate information can be addressed, keeping your shipment moving smoothly.

Understanding Customs clearance is vital for U.S. businesses engaged in cross-border shipping. By being aware of common delays, staying knowledgeable and implementing best practices, you will be more likely to experience timely deliveries, maintain compliance with Customs regulations and ultimately create a great experience for your customers. Partnering with DHL Express will help you stay compliant and successfully grow your business globally.

MyGTS: Your platform to easy international shipping

To speed up international shipping and simplify Customs clearance, DHL Express has developed My Global Trade Services, an intuitive, all-in-one portal.

MyGTS is a free, user-friendly platform that will help you navigate all international shipping regulations, seamlessly. You can log in with your existing DHL Express Business Account or register a new MyGTS account to access:

• Pre-shipment Planner: a dedicated tool to help your business comply with all import/export regulations and calculate Landed Cost.

• Harmonized System (HS) Codes: no more guesswork; MyGTS leverages AI to give you the potential tariff classification for your shipment, making customs clearance faster. Search for HS Codes using keywords or the code directory. 

• Landed Cost for your international shipments: calculate your estimated product cost, duties & taxes, and freight charges to enhance your pricing strategy and give your customers transparency over estimated shipping fees.

• Guidance on a country’s import and export requirements – so you can understand some of the key requirements before shipping.

• A product catalog feature – where you can save past searches, product details and tariff codes for quicker repeat shipping.

You can log in to MyGTS with your existing DHL Express account or register a new MyGTS account.