Customs declaration and clearance are two distinct concepts in international trade, each playing a different role in the import and export process of goods.
Customs Declaration refers to the act where exporters or their agents declare relevant information about the goods to customs, requesting the handling of import and export procedures. This process includes submitting detailed information about the goods, such as name, quantity, value, and country of origin, to allow customs to regulate and collect statistics. Customs declaration is a unidirectional process focused on completing the declaration procedures.
Customs Clearance, on the other hand, refers to the process where customs inspects, audits, and releases imported or exported goods. This process includes declaring, providing necessary documents, paying customs duties and other taxes, and ensuring the legal importation or exportation of goods. Customs clearance is a bidirectional process that not only involves the administrative procedures related to entering and exiting goods but also includes customs supervision and management of transportation means, goods, and articles, approving their entry or exit.
Customs Declaration Process:
1-Preparation Stage:
- Domestic clients sign export contracts with foreign traders, specifying the type of goods, quantity, price, and relevant requirements and regulatory documents (such as export licenses).
- Contact transportation companies to arrange trucking, booking, customs declaration, and shipping procedures.
- Provide necessary documents for export customs declaration, such as foreign exchange verification forms, export contracts, invoices, packing lists, and letters of authorization for customs declaration.
2-Declaration Stage:
- Proceed to customs with the bill of lading and customs documents.
- Customs documents include the bill of lading, original packing list, original invoice, contract, and import customs declaration.
3-Customs Operation Phase:
- Customs conducts document review, inspection, tax collection, and release.
4-Precautions:
- Verify goods information, consult customs tariff schedules, and confirm import duty rates and regulatory conditions.
- Urge the shipping agency to timely transmit the manifest to customs and confirm whether the manifest has been transferred to customs.
Customs Clearance Process:
1-Preparation Stage:
- Prepare necessary documents, including import and export contracts, invoices, transportation documents (bill of lading, transportation insurance), and customs clearance documents (import and export customs declarations).
2-Declaration Stage:
- Submit customs declaration forms to customs, containing detailed information about the goods.
- Customs reviews the submitted customs declaration forms and related documents.
3-Inspection Stage:
- Customs may inspect some or all of the goods on-site to verify the accuracy of the declared information and documents.
4-Tax Payment:
- Calculate and pay customs duties, value-added taxes, etc., based on the value, category, and country of origin of the goods.
5-Release:
- After customs approval and tax receipt, a release notice is issued, and the goods can officially enter or exit the country.
6-Post-Clearance Handling:
- Collect clearance documents, such as import or export certificates, customs documents, etc.
- For eligible exported goods, customs declarants or owners may qualify to apply for a refund of some or all of the value-added tax, excise tax, etc.
- Complete final delivery, delivering the goods to their final destination.
Customs Declaration Process and Required Documents for Imported Goods:
1-Preparation Stage:
Before the arrival of imported goods, importers need to prepare a series of documents and information to smoothly complete the customs declaration process.
Required Documents:
- Contract: Specifies the rights and obligations of both parties.
- Invoice: Proves the value of the goods.
- Packing list: Detailed list of the packaging information of the goods.
- Bill of lading or waybill: Proves the transportation arrangements for the goods.
- Import permit (if applicable): Some goods require a specific import permit.
- Certificate of origin: Proves the country of origin of the goods.
- Inspection and quarantine certificate (if applicable): Some goods need to pass specific inspections and quarantines.
2-Customs Declaration:
Required Documents:
- Import goods customs declaration: Detailed list of goods information, including names, quantities, values, etc.
- Commercial invoice: Shows the transaction value of the goods.
- Packing list: Provides packaging details of the goods.
- Bill of lading: Displays transportation information of the goods.
- Authorized customs declaration agency agreement (if applicable): If the declaration is conducted through an agent.
- Other relevant documents: As required by the customs administration for import and export.
3-Customs Review:
Customs reviews the submitted documents to ensure all information is accurate and correct.
Required Documents:
- Customs declaration: Customs will review the information on the customs declaration to ensure it matches the actual goods.
- Relevant certification documents: Such as import permits, certificates of origin, etc.
4-Inspection and Release:
If required by customs, an on-site inspection of the goods may be necessary.
Required Documents:
- Inspection notification: Notification issued by customs for inspection.
- Goods samples (if applicable): In some cases, customs may require samples of the goods.
5-Tax Payment:
Based on the assessment by customs, importers need to pay corresponding taxes.
Required Documents:
- Tax bill: Issued by customs, showing the amount of taxes to be paid.
- Proof of payment: Document proving that the taxes have been paid.
6-Goods Retrieval:
After completing all customs procedures, importers can retrieve the goods.
Required Documents:
- Release notification: Notification issued by customs for the release.
- Bill of lading: Document used to retrieve the goods.
Customs Declaration Process and Required Documents for Exported Goods:
1-Preparation Stage:
Exporters need to prepare a series of documents to ensure that the goods can be smoothly exported.
- Required Documents:
- Export contract: Specifies the rights and obligations of both parties.
- Invoice: Proves the value of the goods.
- Packing list: Detailed list of the packaging information of the goods.
- Export permit (if applicable): Some goods require a specific export permit.
- Certificate of origin: Proves the country of origin of the goods.
2-Customs Declaration:
- Exporters or their agents need to submit a customs declaration form to customs, along with all necessary documents.
Required Documents:
- Export goods customs declaration: Detailed list of goods information, including names, quantities, values, etc.
- Commercial invoice: Shows the transaction value of the goods.
- Packing list: Provides packaging details of the goods.
- Bill of lading or waybill: Proves transportation arrangements for the goods.
- Authorized customs declaration agency agreement (if applicable): If the declaration is conducted through an agent.
3-Customs Review:
Customs reviews the submitted documents to ensure all information is accurate and correct.
Required Documents:
- Customs declaration: Customs will review the information on the customs declaration to ensure it matches the actual goods.
- Relevant certification documents: Such as export permits, certificates of origin, etc.
4-Inspection and Release:
If required by customs, an on-site inspection of the goods may be necessary.
Required Documents:
- Inspection notification: Notification issued by customs for inspection.
- Goods samples (if applicable): In some cases, customs may require samples of the goods.
5-Tax Payment:
Based on the assessment by customs, exporters need to pay corresponding taxes.
Required Documents:
- Tax bill: Issued by customs, showing the amount of taxes to be paid.
- Proof of payment: Document proving that the taxes have been paid.
6-Shipping of Goods:
- After completing all customs procedures, exporters can ship the goods.
- Required Documents:
- Release notification: Notification issued by customs for the release.
- Bill of lading or waybill: Document used for shipping the goods.
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