Introduction
If your business involves international trade, you’ll encounter customs, duties, and taxes. While many companies have EORI numbers, they might not be fully prepared to handle customs procedures. That’s why many businesses turn to customs agents who connect with the customs department through APIs. This blog is tailored for import/export companies that rely on customs agents for their customs-related tasks.
List of services of customs agents
Import
Importation is the essential procedure for formally acknowledging inbound shipments from overseas, whether transported by land, air, train, or sea. This process is straightforward; you declare your merchandise and fulfill any relevant duties, taxes, and excise obligations to facilitate its entry into the country. However, it’s crucial to note that there are stringent compliance measures in effect to ensure the smooth execution of this operation.
Note: Caplinq can fiscally represent you to help you import into Europe without having the need of any legal entity.
Export
Exportation is the vital process of formally dispatching products to foreign destinations, using various transportation modes such as road, air, train, or sea. This procedure involves systematically declaring your merchandise, complying with international regulations, and fulfilling any necessary export duties, taxes, and documentation requirements. It’s important to understand that strict compliance measures are in place to ensure the seamless execution of export operations.
If you are our order fulfillment customer, Caplinq can help you export your goods to other countries provided you have the necessary permits.
Re-export & re-import
Re-export and re-import are specialized procedures that streamline international trade operations. Re-export involves the re-dispatch of goods to foreign destinations after they have previously been imported into a country. Conversely, re-import is the process of bringing previously exported goods back into the originating country.
These processes offer unique advantages for businesses seeking to optimize their global supply chains. Re-export allows for the efficient distribution of goods to new markets, while re-import enables companies to reutilize or refurbish products.
Both re-export and re-import operations necessitate meticulous compliance with customs regulations, duties, taxes, and documentation. Understanding and adhering to these requirements are essential for the successful execution of these international trade activities.
Central clearance
Central clearance is a logistics strategy revolutionizing international trade. It consolidates customs procedures into a centralized hub, simplifying import and export processes. This yields faster customs clearance, less paperwork, and reduced administrative burdens. Standardized compliance with customs regulations, duties, taxes, and documentation further enhances efficiency. Central clearance empowers businesses to compete globally by optimizing their supply chains and expediting the movement of goods. However, it necessitates strict adherence to customs rules for seamless cross-border trade. Embracing central clearance can substantially boost competitiveness and efficiency in the dynamic world of international commerce.
Transit
Transit facilitates the movement of goods across international borders without immediate payment of import duties and taxes. It’s a crucial process in global trade, reducing delays and costs associated with customs clearances, and is governed by international agreements and customs regulations.
Process improvement steps
1.Enhance Your Documentation Process for Customs Agents
“Unless you have special preferential privileges, the fundamentals for non-preferential treatment are as follows. Familiarize yourself with the necessary documentation in advance to facilitate smooth customs clearance procedures with your customs agent. Here are some key items on the checklist:”
- Commercial Invoice
- Packing Slip
- Bill of Lading or Seaway bill or Airway bill(preferably Master)
- Freight cost until the entry point(Also known as FOB cost)
- Country of origin of each line of product in the HS code
- Weights per HS code
- Quantity per HS code
- Costs per HS code
- Any other local declaration like REACH or TSCA.
Gather all these data and submit it to your customs clearance
2.Improve the communication to your customs agent
Effective communication is paramount in the realm of customs clearance. Regardless of your preparedness, there can be information gaps or additional requirements. Therefore, maintaining precise and direct communication with your customs agents is essential to avoid time-consuming misunderstandings. Unless you have an API integration with your customs agent, email remains the primary mode of operation for most of them
- Use Relevant Subject Lines: Typically, use your order number for easy searching. Note that the subject line is less critical for customs agents.
- Maintain a Single Email Thread: Keep all communication related to a shipment within one email thread to minimize confusion.
- Clear Arrival Notification: Provide your company’s email address for arrival notifications to prevent confusion among customs agents. Minimize direct communication between customs agents and logistics carriers.
- Forward Arrival Notices: Once you receive an arrival notice from the carrier, promptly forward it within the same email thread you’ve been maintaining. This helps customs agents link the jobs with the relevant documentation.
- Receive Customs Documents: Following the arrival notice, your customs agent will send the necessary Customs filing declaration and customs duties (sometimes ENS) and duties document within the same email thread.
- Email Documents to Forwarder: Forward these documents directly to your forwarder for processing.
- Consider a Deferment Account: If possible, set up a deferment account to settle duties immediately; otherwise, duties will need to be paid upfront.
- Product Delivery: Your forwarder will arrange the delivery of your product once you’ve sent the required documents.
Become our order fulfillment customer to let Caplinq take care of all of this for you.
3.Improve the providing rights to your customs agent
If your company wants to improve everything, then standardizing is much more important. Here are the few things you can consider.
- Consistent Customs Agent: Maintain the same customs agent for the country of import whenever possible.
- Grant Power of Attorney: Ensure that you provide Power of Attorney to both your export and import agents.
- Customer Authorization: If you’re shipping on behalf of another company, make sure your customers sign a Power of Attorney for the customs agents.
