Easy Ways To Ensure Customs Compliance

Customs compliance can be confusing, especially when different countries have different policies. Whether you are a business owner looking to transport across the border or a carrier who needs to know how to get through customs in the least amount of time, it is essential to understand what it takes. By understanding everything you need to do before and during arrival at the border, you can save time, money and avoid penalties— and get the most out of your journey.

When we speak about customs compliance, we are referring to regulations or rules for import and export, and ensuring that a shipment crossing the border meets all of the requirements. The regulations and rules are in place to ensure safety and security in international trade, so they do serve a purpose. In order to be in compliance with customs, and get cleared to cross, the rules and regulations need to be understood and followed. Failure to meet requirements or follow the rules will often lead to delays and even potential penalties such as fines. In order to have a smooth and efficient border crossing experience, there are a few effective ways to ensure effective customs compliance. 

Keep Up With Changing Regulations

In order to ship seamlessly across the border, it is important to maintain an understanding of the most recent regulations. Failure to comply with updated rules or regulations will delay your border crossing, so staying informed is key. You will want to research the rules in the country you are shipping to or heading towards, as well as any special requirements the cargo may need. Duty rates and tariff schedules are also subject to change, so it is important to understand the market you are in. Shippers will need to know if their goods are subject to any special restrictions or requirements, so research or working with an experienced customs broker is key.

Develop a System For Your Documentation

There is nothing more beneficial for a smooth customs clearance process than having documents correctly completed and organized. Your required documents, such as customs invoice, packing list, BOL, and certificate of origin should be correct and organized, for ease of access. A common violation of customs is wrong valuation of a shipment, so it is important to be meticulous with paperwork. Any errors in documentation can lead to a delay, and at times you may even get fined or penalized if your documents are not consistent or contain significant errors.

Ensure Goods Are Classified Correctly

In order to avoid fines as well as delays, the goods in any shipment need to have correct classification as well as paperwork. One of the most common customs violations which can result in penalties is wrong classification of the products. HS codes, or a tariff code, is essential in the international shipping process. In order for customs to be able to calculate duties and fees correctly, the classification is crucial. Errors in this area could result in significant penalties or fines. If you are unsure of a correct code, use technology to help you along the way. One way to maximize efficiency of your documents is to use one single platform to compile and complete your forms.

When you use the Zipments.io customs invoice forms, you can automatically get an AI generated tariff code, which ensures greater accuracy and less time compiling your information.  The platform also provides seamless communication between broker, carrier and shipper, so that misunderstandings and form errors are less likely to occur.

Easy Customs Invoice Forms

Prioritize Effective Communication

In order to ensure the shipping process runs smoothly, it is essential to have clear lines of communication between all of the parties involved. Customs brokers, carriers and shippers need to be able to communicate effectively, in order for the customs clearance process to be completed correctly. Information sharing and open communication can alleviate any potential issues which may come up. Any potential issues can be addressed early, or avoided. It is important to maintain contact information and consistent communication when a shipment is heading towards the border.

To access customs broker information more easily, you can find brokers using the Zipments Broker Directory.

Review Your Paperwork

It is not enough to package a shipment or load it on a truck and assume that all of the requirements are met. It is important to review the origin, tariff classification and value of the shipment to ensure that there are not errors or discrepancies in customs entries. Invoices cannot be mismatched, and the information such as shipment weight or value has to correlate and be the same on all paperwork. All items need to be declared in customs. If you do encounter an error was made after the customs clearance process, you do usually have within 90 days to notify customs authorities and avoid a potential penalty.

Keep Records of Shipments

It is important to maintain customs records for at least a few years after a shipment has crossed the border. You want to keep records for at least 7 years, to be safe. In the case that there are any audits, you will need to be able to access records and documents to prove due diligence was done and that you did not make any errors. In today’s day and age you can digitize much of the customs clearance process, so to becomes easier to maintain record of customs clearances.

The right customs clearance solution will help your business run smoothly, avoid penalties and keep you happy with the service. If you are looking to clear customs easily, try Zipments; a one stop platform for customs invoices, carrier code applications, PARS and PAPS tracking, as well as a vast trucking companies database and broker directory. 

Remember that freight can be delayed for days or up to several weeks, if there are issues with customs compliance, especially paperwork. While many assume that a customs broker would take care of customs compliance for them, remember that brokers are also human and susceptible to error, so it is beneficial to understand what is going on in the process as well. Now that you know the key areas to focus on, you can ensure customs compliance and keep moving.