Customs Clearance
The process of declaring goods to customs, paying duties/taxes, and obtaining release for import or export.
Customs clearance is the end-to-end process of declaring goods to the customs authority, lodging the required documents, paying applicable duties and taxes, undergoing any inspection, and finally obtaining release. It happens on both the export side (export clearance) and the import side (import clearance).
For Chinese exporters, core documents typically include the commercial invoice, packing list, bill of lading, HS code classification, and—depending on destination and product—certificates of origin and compliance certificates. Who bears clearance responsibility and cost is set by the chosen Incoterms: under DDP the seller handles destination import clearance and taxes, while under FOB/CIF import clearance is normally the buyer's responsibility.
Practical notes: import clearance usually requires a legally registered party in the destination (e.g. an EORI number in the EU, and possibly VAT registration). Mismatches between declared description/value/HS code and the actual goods are the leading cause of inspection, holds and penalties; under-valuation to reduce tax is non-compliant and can trigger back-taxes and fines.
FAQ
- What documents are needed for customs clearance?
- Usually a commercial invoice, packing list, bill of lading/airway bill, and the correct HS code; depending on destination and product you may also need a certificate of origin and compliance/test certificates. Confirm the exact list with the destination customs and your forwarder.
- Under FOB, who handles import clearance?
- Under FOB (and CIF/CFR), destination import clearance and duty/tax payment are normally the buyer's responsibility; the seller only handles export clearance. If you want the seller to clear and pay taxes to the door, use DDP.
- What is 'double clearance tax-included' and what are the risks?
- It bundles export clearance, import clearance and destination taxes into one service (common in dedicated lines/DDP). It is convenient, but you should pin down scope and liability in the contract and beware of grey practices like under-declaration that create compliance and seizure risk.
Related terms
Sources: https://taxation-customs.ec.europa.eu/customs_en · http://www.customs.gov.cn/