Foreign traders must know the difference between customs declaration and clearance!
Simply put, customs declaration is to report the import and export status of goods to the customs, while clearance is to ensure that these goods comply with all regulations and can flow freely. Today, lets delve into the content of customs declaration and clearance together!
1、 Customs Declaration
Customs declaration refers to the process in which importers or exporters or their agents declare the import and export of goods to customs. It involves submitting necessary documents such as commercial invoices, packing lists, bills of lading, etc., as well as filling out customs declarations, detailing the type, quantity, value, and other information of the goods.
Customs declaration is the first step in the import and export process, ensuring that the information of the goods is correctly recorded and calculating the customs duties and other taxes that should be paid accordingly.
Customs declaration also requires compliance with relevant laws and regulations of the exporting and importing countries, including product classification codes (HS codes), certificates of origin, etc.
2、 Customs Clearance
Customs clearance refers to the process in which goods are officially allowed to enter or leave a country after passing through customs inspection and completing all necessary procedures. This usually means that the corresponding tariffs and value-added taxes have been paid, and all regulatory requirements have been met.
Customs clearance may involve actual inspection of the goods to verify whether they match the declared content and comply with the safety, health, and quality standards of the importing country. After customs clearance is completed, the goods can be legally sold or transported to the final destination in the market
Simply put, customs declaration is to report the import and export status of goods to the customs, while clearance is to ensure that these goods comply with all regulations and can flow freely.
3、 Customs declaration process for imported goods
Confirm the import shipping schedule and wait for the ship to arrive. Start the import operation
1. Firstly, it is necessary to provide the arrival notice, original bill of lading, or electronic release guarantee to exchange for the document
2. Take the goods to the customs supervised warehouse
3. Prepare the necessary documents for import customs declaration: Essential documents include a list, invoice, one copy of the contract, and one copy of the customs declaration and inspection authorization letter.
Imported goods from the European Union, the United States, South Korea, and Japan require a heat treatment certificate or phytosanitary certificate for wooden packaging boxes, and no wooden packaging for non wooden packaging. The various documents stipulated by the tariff (such as import license, mechanical and electrical certificate, and certificate of important industrial products).
4. Provide a tax reduction and exemption certificate manual for those who have tax reduction and exemption manuals
5. After the import declaration, if the customs need to review the price, the customer needs to provide relevant price proof. Documents required by customs, such as letters of credit, original factory insurance policies, original factory invoices, bidding documents, etc.
6. After the customs prints the tax invoice, the customer needs to pay the tax within 7 working days. If the deadline is exceeded, the customs will charge a daily late fee
7. After customs clearance inspection and release, the goods can be picked up and returned home (warehouse)
The goods must be declared to the customs within fourteen days after arrival at the port. If the customs levy a daily late declaration fee (calculated at 0.05% of the value of the goods) beyond the deadline for more than three months, the customs will sell it as unclaimed goods
8. After paying taxes, the goods can be picked up and released
Export goods customs declaration process
1. First, book the cabin with the shipping company
2. Documents required for export customs declaration: After the goods arrive at the customs supervision area, prepare all the required documents for customs declaration to the customs 24 hours before loading
Essential documents: one copy each of the list, invoice, contract, verification form, customs declaration authorization letter, shipping company loading order, and other documents. According to the customs tariff regulations, provide various documents. (such as customs clearance documents, export licenses, etc.). Export manuals are required for customs declaration.
3. Documents required for export inspection
Prepare all necessary documents three days before the customs declaration date and declare to the inspection and quarantine bureau. Provide one copy each of the following documents: invoice, contract, inspection authorization letter, factory inspection form, cardboard packaging form, etc.
If exporting goods to countries such as the United States, Australia, Canada, and the European Union with wooden packaging that requires fumigation or heat treatment, the required documents include a list, invoice, contract, and inspection authorization letter. If the fumigation product is made of wood, a factory inspection report is also required. Products undergoing fumigation or heat treatment should be transported to the designated yard or port area for fumigation two days before customs clearance. (Fumigation time takes 24 hours)
4. The export declaration is officially submitted to the customs. If taxes and fees are required for export, they should be paid in a timely manner
5. Customs on-site document review has ended. After the release of the cargo documents, the shipper shall transport the goods to the customs supervision area for inspection and release within the time specified by the customs.
If inspection is required, the customs broker should promptly contact the customs to inspect the goods. After inspection, the goods should be sealed with the designated lead seal by the shipping company. Items that do not require inspection should be released in a timely manner, and the loading order should be sent to the port for loading according to the deadline
6. After the goods are exported, the shipping company will transmit the export manifest data to the customs. After the customs receives the data, the customs broker will promptly go to the customs to print the tax refund verification copy after the customs data is cleared
