If you run a small business, whether you are a new importer or have years of experience, navigating the customs clearance process can be a challenging task. It is a complex procedure, and understanding what customs clearance means and how to maintain operations accordingly can reduce your expenses and prevent delays. This detailed guide will give you insight into custom clearance tips for small businesses so that you can ensure smoother operations, cost reduction, and easy shipment.
Top 10 Customs Clearance Tips to Save Costs and Avoid Delays
1. Optimize Documentation to Avoid Extra Fees
If you want to avoid extra fees, make sure you possess correct and complete customs clearance documents. Failure to do so can result in penalties and delays. All the required essential paperwork must be accurate, including your invoices, bills, packing lists, and others.
But are you even familiar with the required documents for your import customs clearance? Let us help with the terminologies;
- Commercial Invoice– A Commercial invoice gives a clear description of the product, its origin, and current value.
- Certificate of Origin– This might not always be required, but in some specific trade agreements, it can be a mandatory option.
- Customs Declaration Form– This is an important document as it will provide the details of your shipment.
2. Correctly Classify Goods to Minimize Costs
One of the most important segments of this procedure is determining the duties and taxes, and accurate product classification is critical for that. To prevent overpayment and penalties, you need to ensure that you do not misclassify the goods. You can use the Harmonized System (HS) codes for the correct identification of your products.
Are you unsure how to get customs clearance right? DTDC Australia has long been an expert in Customs Clearance and delivery, you can get the correct guidance by connecting with us.
3. Benefit from Free Trade Agreements (FTAs)
Free Trade Agreements can be beneficial in a number of cases as they offer significant cost savings by reducing tariffs and even eliminating them on qualifying goods. You must check whether your business can benefit from various FTAs including the ASEAN-India, NAFTA, or EU trade agreements.
Following this can help you improve your cash flow and also lower the total costs that are associated with cleared import customs. However, you need to first make sure that the products meet the eligibility criteria.
4. Partner with a Trusted Broker for Small Business Customs Clearance
You might be now aware of the basics of customs clearance, yet, professional support is required to overcome the customs challenges. If you hire a licensed customs broker, then you can be ensured of-
- Regulatory compliance
- Managing and ensuring that you possess the correct and required customs clearance documents
- Preventing delays in your shipment
When you hire a reliable broker, then they can also guide you on what is customs in shipping, and help you make informed and appropriate decisions. There is a cost involved, no doubt, but it will be a long-term savings and your business will be benefited. Therefore, a broker can help implement effective customs clearance tips for small businesses to avoid delays.
5. Consolidate Shipments to Cut Down Expenses
Those who are already a part of the shipping business are well aware that frequent shipments that are in small volumes can majorly increase customs and freight costs. However, if you consolidate all your multiple orders into one large shipment, then this will reduce administrative fees and freight expenses. Inspection charges can even be lowered in this way.
This can work even better for businesses that are shipping to a common destination. This is one of the many custom clearance cost-saving strategies that can help you during the procedure.
6. Use Digital Tools for Efficiency
During regular and continuous shipments, you may encounter several repetitive tasks, so it is better to invest in reliable logistics and customs management to perform those automotive tasks. These tools will simplify the monitoring of how long after clearing customs to delivery, will provide you with status updates, and will help identify inefficiencies during the process.
When you have options, you should definitely adopt digital solutions, as they help reduce manual labor and errors and will save both time and money.
7. Explore Exemptions
Do you know that many countries offer exemptions on a number of goods? This works even better, especially when the product’s value is below a specified threshold or it meets specific criteria, such as for raw materials or machinery for manufacturing.
This is a pro tip for small business owners, and they should definitely find out whether their imports qualify for exemptions like these. If they do, this can lead to a substantial cost reduction. This is one of the many best practices for custom clearance.
8. Stay Compliant with Import Restrictions
We discuss this quite a lot that every country has its own unique set of import regulations that range from a number of prohibited items to restrictions on particular goods. If businesses fail to adhere to these regulations, then this can result in shipment delays or even confiscation with surely excess fines.
If you follow these steps carefully, then your concerns, like how long can customs hold my package, etc, will be addressed openly.
9. Choose Cost-Effective Shipping Incoterms
One of the most important tips that can help you reduce your customs and shipping expenses is choosing the right shipping terms, or what we call Incoterms. These terms define the responsibilities between buyers and sellers.
some important Incoterms like:
- FOB (Free on Board)– It helps the shippers avoid unnecessary freight costs during their shipment procedure.
- DDP (Delivered Duty Paid)– This minimizes uncertainty by placing the responsibility for customs duties on the seller.
- EXW (Ex-Works): This is the most suitable when the buyer wants full control of the shipment procedure.
- Some other Incoterms include- FCA, CFR, CIP, and more.
10. Educate and Train Your Team on Custom Clearance
The Customs Clearance process can go even smoother when your staff is at least well aware of its basics. You should invest in training your staff on custom clearance tips for small businesses to equip your team so that they are able to handle the process effectively. They should be made aware of common and important requirements like-
- Learning about the basics of what is customs clearance
- What are the steps to be followed if they have to handle customs clearance documents
- If common issues arise during the process, then in what ways can they handle those situations?
Or you can just talk to an expert in this field and reduce your stress and burden. DTDC Australia has helped thousands through guidance and services on Customs Clearance and Delivery.
Conclusion
When small businesses plan on going international, the daunting task that can be seen as a hurdle for them is Customs clearance. It can be a bit complex, and if not handled well can also affect your shipment. However, you can easily overcome this with the right strategies and expert help.
We have discussed a great number of tips above and Implementing these custom clearance cost-saving strategies can help small businesses to stand even stronger in the global market competition. From proper documents to FTA’s and even Incoterms, if you understand them well then there is no doubt that your business will excel well.
