Customs clearance: top tips for your business

Before we divulge our tips on making customs clearance smooth, for you to be really prepared we want to look first of all at the bigger picture: how customs complexity is set to increase, and how correct customs procedures can protect businesses – and increasingly the environment.

The DHL Fulfillment Network partners closely with Gerlach, customs experts of 140 years and the leading neutral provider of customs services in Europe. They tell us more about what to expect in the coming months and years, and how to be ready.

Politics

Political landscapes globally are going through a particular period of change. “Tariffs on cross-border movement of goods are set to increase between some countries,” says Thomas Weins, CEO Gerlach. “This means there will be more customs requirements and more customs duties.”

Regulation

Regulation will be tightening too. “With the huge boom in B2C e-commerce, non-compliant practices have increased,” explains Maryam Bernhardt, Business Development Customs, Gerlach. “This can include unregulated goods crossing borders – for example toys, which can be unsafe – or goods being undervalued on customs declarations.” Increased legislation including the EU’s ICS2 program will mean legitimate suppliers are not competing with unscrupulous competitors, who are undercutting them on cost and quality.

Major reform of customs is underway with the EU. Markus outlines one key aspect: “Certain sellers and platforms will be accountable for completing the customs declarations for goods entering the EU. A term you will hear is ‘deemed importer’: these are any companies involved in sales of goods into the EU from a third country.”

There also other customs regulations to be aware of. Thomas outlines how the application of customs procedures can protect the environment: “EU deforestation legislation helps reduce the EU’s impact on deforestation globally. Although this creates more paperwork, it shows the impact legislation can have on sustainability.” In addition, the Carbon Border Adjustment Mechanism “helps encourage cleaner production methods outside of the EU,” continues Maryam.In addition, the

Digitalization

A major strand of the EU customs reform is the planned EU Customs Data Hub. Ultimately, it will replace the existing IT customs infrastructure and will simplify customs procedures. It will incorporate AI into its methodology, and will bring EU customs into the digital age.

1. Call in the experts

Our biggest overall tip is to lean on customs experts to help ensure you’re compliant – and to give you peace of mind. “Companies like ours know the pitfalls of getting things wrong, or inadvertently omitting an important piece of information,” says Thomas.

For example, the team at Gerlach finds that companies can overlook the fundamental fact that with all cross-border trade there is always an exporter and an importer to consider. The exporter must declare that goods are leaving their country, and the importer must declare that the goods are entering theirs. “Without factoring both sides in, companies can run into unnecessary delays, leaving their end-consumers waiting,” notes Thomas. Since Brexit, this also needs to be kept in mind for shipments between the UK and the EU.

2. Your classifications and registrations

Here are two key elements to you will need to have in place.

• HS codes, or harmonized system codes, are given to physical goods, and are used to determine how much customs duty will be owed on them. They are a numerical system that is used globally and administered by the World Trade Organization. As the name suggests, they help harmonize the flow of goods around the globe. If the correct HS code is on your paperwork you can avoid your goods being delayed at borders, seized, or denied import.
• An EORI number is an identification number given to any company that is exporting out of or importing into the the European Union. Having one is mandatory and can be obtained from your organization’s national customs authority. Other customs unions globally have similar requirements.

3. Your paperwork: is it accurate and complete?

Once you know your HS codes and have your EORI number, the final key step is to ensure your paperwork is accurate:

• A commercial invoice is a critical document that covers details used by customs authorities, such as the country of origin of the goods, their quantity and weight, the receiver’s details and the shipment’s value.
• You can give power of attorney to your customs agency, who will then screen your paperwork for you, and can handle anything from filing customs declarations to paying duties and taxes and preparing your products for customs clearance. Having power of attorney means they have the legal right to navigate customs regulations on your behalf.
• Consider the licenses and permits you need for your goods and ensure these are up to date.

Your job is to produce and sell a great product. Our job is to help you  with reliable & cost effective fulfillment. Look no further than our end-to-end service: we have warehousing, pick and pack, liaison with last-mile providers… and also customs expertise… ready and waiting for you.

Talk to our in-country experts today to find out how we can help your business.