Did you know the UAE ranks globally as the top region with an efficient customs process? So, if you’re planning to grow your business beyond the borders, you can expect quick guide to customs clearance.
While this is the case, having proper documentation is essential when exporting goods out of the country. This is the only way to avoid shipment delays and costly penalties. You can also expect your clients to receive the shipment within a reasonable time.
If there are goods you’re expecting from abroad, you must receive the correct documents and information from the sender. This will ensure timely clearance of such items.
Does the customs clearance procedure confuse you? This guide highlights a few crucial aspects involved in customs clearance.
What Is Customs Clearance?
Custom clearance is a governmental procedure of declaring imported Goods to destination country by presenting the documentation issued by the shipper to declare type of Goods, units description, quantities, weight and dimensions before and after packaging along with its harmonised system codes defined for this type of materials (known as HS Code or HSN Code) plus a letter of conformity to state the country of origin (COO); which usually issued by Chamber of Commerce.
Next, you need to submit above to Customs office using their formal applications through their special systems (usually handled by authorized Customs clearing Agent) to obtain initial approval to permit the entry of Goods into the market at destination country.
Upon obtaining initial approval Goods goes for physical inspection and verification, by completing previous step it heads to payment of Duty and Taxes (duties and taxes; shall be disclosed more in to details in another article). Once payment step is completed then carrier of Goods can proceed to the next his next destination whether delivery or next transit point.
Moreover; Customs can be one of biggest challenge to many businesses due to other relevant laws and restrictions related to the product or materials imported, as well as the compliance that applies to consignee and his qualification to import similar product/material which we shall discuss it more further in different article and blog.
By understanding the customs clearance process is critical in international shipping as it helps you avoid costly mistakes rather than demurrage and storages, therefore GHS Logistics are taking this matter as one of top priorities to support startup businesses and companies with high number of inbound and outbound shipment that may slip into a fatal mistake.
a Quick Guide to Customs Clearance Process
Once your shipment arrives at customs, there are several steps you should take before it’s cleared to leave the country. Here’s a brief overview.
Customs Representatives Will Review Your Paperwork
Upon arrival at customs, you need to present the custom paperwork. These documents include information such as the export date and your contact information.
The Assessment of Taxes and Import Duties
The total duty you’ll pay will vary based on the goods you’re importing and the regulations of the country receiving them. Usually, your product taxes and custom duty will be computed depending on their customs value.
It’s advisable to use the services of a broker in such cases as they’re responsible for paying duty and taxes.
The Request for Payments of Taxes and Duty
If the products you’re shipping exceed the taxable threshold, the customs representatives will check whether you have cleared the taxes and duty. If you’ve paid the duty, the customs official will mark your shipment as DDP (Delivered Duty Paid).
If not, they’ll refer you to an independent customs broker to process your shipment. You’ll have to incur extra fees such as insurance, inspection, etc. Once paid, your courier of choice will transport the shipment to the end destination.
You’ll hardly experience cases where your shipment gets stuck at customs unless you have issues with paperwork.
Calculating and Paying of Duties in UAE
When clearing your items in the UAE, customs usually set their custom taxes at 5% of the CIF. You can expect to pay a 50% duty for carbonated and sweetened products. Note that you won’t pay any customs charges for agricultural products.
Expect severe restrictions if you’re planning on importing goods such as pig products or alcohol.
Learn the Key Aspects of Customs Clearance
Customs clearance is critical if you plan to clear goods you’re importing or exporting. While clearing your products, you need to provide documentation indicating that you have paid duty. This process is quicker if you work with a customs broker.
Are you planning to import or export goods but don’t know the steps to take? Talk to us today, and we will guide you on the right approaches to take.
