Clearing Instructions
Clearing instructions are mandatory documents completed by the exporter or importer for their forwarding or clearing agent, what this does is it sets out all activities required to move the goods either from the seller to the lncoterms handover point (in the case of exports) or from the lncoterms handover point to the buyer.
An Example of an Electronically Produced Clearing Instruction
Glossary
Country of Destination: The country of final destination as consigned and addressed to on the transport document. (House Air waybill).
Country of Export: This is the country from which the goods are being exported from, as per the shippers from address on the invoice or the shippers address as indicated on the transport documents. It may not be the country of manufacture ( Origin ).
Country of Origin/Manufacture: The Country of Origin is the country in which the goods have been produced or manufactured and is not necessarily the country of export. This is identified according to the rules of origin criteria available on www.sars.gov.za. The Country of Origin is important for the purposes of preferential duty rates according to special trade agreements between countries or regions.
INCO Term: INCO Terms are International Commercial Terms used in international transactions where it indicates the allocation of risk associated with international transportation and delivery of goods. It is also a key aspect to determine the correct Customs value for clearance processes. As an example the South African Customs (SARS) point of valuation is FOB (Free on Board), which includes all handling and transport to point of loading for Export at port of Export.
Tariff Heading/Code: All goods imported and/or exported requires the individual commodities to be classified according to an appropriate tariff item/heading and is directly linked to a rate of potential duty and other governmental regulatory requirements. In order to allow correct classification (HSTH) detailed descriptions of the goods are required. The HSTH (Harmonized Commodity Description and Coding System) is an internationally standardized system of names and numbers to classify products.
UCR Number (Optional): A Unique Consignment Reference (UCR) number needs to be reported on all export proceeds as per the South African Reserve Bank (SARB). The format of a UCR number (min 12 & max 35 characters). It consists of the last digit of the calendar year of export, two letter country of origin code, 8 digit exporters customs code, followed by a unique reference to the export in question (invoice number, consignment number, order number etc.). This number is used to track any foreign funds received for export consignments as well as for destination clearance purposes within the SACU region. If you do not have a UCR one will be created for you by DHL using the mandated formula.
Valuation Code (Optional): Section 66(2)(c) of the Customs Act determines that every importer shall indicate which Valuation Method is applicable to his/her goods by inserting in the field "Valuation Code" on the Customs declaration, after the letter "R" or "N" as required by Rule 66.03 the appropriate method number.
Related to the supplier of the goods - insert the letter "R";
Not related to the supplier of the goods - insert the letter "N"; or
Exempted in terms of Rule 66.01 - insert the letter "E".
Valuation Method: The methods, in order of precedence, are:
- The transaction value of the goods, i.e. the price actually paid or payable
- The transaction value of identical goods
- The transaction value of similar goods
- The "deductive" method (where the customs value is derived from the selling price of the imported goods in the Republic)
- The "computed" method (where the value is derived from the built-up cost of
- the imported goods);
- The so-called "fall back" method, being one of the other five methods applied more flexibly.