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Taking your small business international is an exciting step. In today’s global economy, venturing into international shipping offers small businesses big opportunities.
Expanding beyond domestic markets opens a whole new customer base, with opportunities to increase sales along with diversifying your business portfolio. It also allows small businesses to tap into the unique demands of a new market and gain an edge over the competition. However, for small business owners looking to ship overseas, navigating the intricacies of customs can feel like a daunting challenge. How can they understand and efficiently manage customs clearance to grow their business globally?
This comprehensive guide is designed to simplify the customs clearance process for imports and exports, so your shipments can move smoothly across borders. By following these steps, you can avoid delays, ensure local laws are followed and reach customers worldwide.
Customs clearance is a vital process in international shipping, ensuring that goods entering or leaving a country comply with all local laws and regulations. It involves the submission and examination of various documents that provide details about the shipped goods, their value and their destination. This process is critical for determining the correct tariffs and taxes applicable to the shipment. Customs authorities scrutinise these details to prevent illegal imports or exports, ensure safety standards are met and facilitate fair trade practices.
Customs clearance includes four main steps: i) submission of detailed customs paperwork, ii) assessment of these documents, iii) calculation of duties and taxes, and iv) their payment.
A successful customs clearance means your goods are legally authorised to enter the destination country, having met all regulatory requirements. This step is crucial for avoiding delays, penalties or confiscation of goods, ensuring a smooth transition across borders.
The cornerstone of smooth customs clearance is accurate and complete documentation. Essential documents always include the air waybill and commercial invoice.
Depending on the destination, these documents may also be required:
Inaccuracies or omissions in paperwork can lead to fines, penalties or shipment rejections, so it’s important to know what’s required to clear customs smoothly. FedEx offers digital tools like the Global Trade Manager to help your business find the documents you need for your shipment. FedEx Electronic Trade Documents makes it easier to upload customs documents online, minimising potential delays.
The term “customs cleared” in the shipping process means your shipment has undergone the customs process and all related duties and taxes have been paid. This clearance is a green light for your shipment to move forward.
Customs clearance typically takes one to two days, assuming compliance with all regulatory requirements and accurate documentation. The main documents required are the commercial invoice and the air waybill, but additional documents may be necessary based on the shipment’s origin, destination and contents.
An important step in clearing customs is understanding and estimating the related duties and taxes. These charges vary based on the items shipped and their final destination. FedEx provides tools to estimate these costs, taking into account invoice values, customs valuations and local customs rules.
Once your shipment is cleared, it progresses from the bonded warehouse to its final destination. When shipping with FedEx, you can quickly and easily get near real-time updates on your shipment with FedEx Tracking.
For those new to international shipping, FedEx provides guidance on preparing packages and managing shipments. The import and export guide offers comprehensive information on completing key documents, enhancing your knowledge of international shipping and ensuring timely delivery.
Navigating customs doesn’t have to be a hurdle in your international business expansion. With the right support and guidance, you can confidently manage customs clearance, helping ensure your shipments are processed quickly and efficiently. This preparedness not only saves time but can also help you connect and build lasting relationships with customers around the globe.
FedEx Express is one of the world’s largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed up the delivery of time-sensitive shipments, by a definite time and date.
