Customs clearance – or customs brokerage – services make it possible for goods to cross international borders. The services make sure that commercial freight (and goods from individuals) meet the legal and documentation requirements needed for the destination country.
What are Customs Brokerage Services?
Customs clearance requirements can often be complex and extensive. However, in the simplest of terms, they are really not much different than what a traveler goes thorough when entering a country.
In the case of crossing a land border like the one between Canada and the U.S., a traveler may be asked by Customs & Border Services where they are going and where they are staying in the destination country. Also, where they come from, what they are carrying and how much it is worth.
The requirements are similar for the customs clearance of freight, but are far more in depth and detailed.
What Sorts of Information Does A Customs Brokerage Service Need To Generate?
To get shipments cleared at a border, licensed customs clearance services gather information specific to each shipment. The information must be properly compiled and presented in the correct documentation.
Among other information, the brokerage must document the following for each shipment.
- Country of origin and destination
- Supplier and receiver addresses and other company information
- Freight information including the nature of the freight, its weight, unit counts, country of origin/manufacture, etc.
- Tariff classifications
- Routings
- Intended Use
Why Do You Need Customs Clearance Services?
The basic advantage of hiring a customs brokerage comes from the fact that your company isn’t in the business of customs clearances.
In other words, every bit of time and resources you spend on the lengthy process of ensuring you comply with customs clearances, and properly compile all the documentation to prove it, takes that time and resources away from what you do best.
But that’s not the only advantage of using licensed customs clearance services.
Lower Your Costs
The detail, complexity, and variations in customs clearance requirements and procedures, from shipment to shipment, and country to country, make it a massive, time consuming undertaking. But, customs brokerages do it everyday. So, they are able to offer the services to you at a far lower cost than you would incur if you did them in-house.
And, your brokerage company assumes the risk of any issues that arise from their work. Risk that you would have to manage it if you did it all.
Services Are Customized To Your Requirements
Customs clearance requirements, compliances, and processes can also be different from one company to the next, even for similar cargo. You may also choose to handle some of the requirements yourself because it’s convenient and more cost effective to do so. Your customs brokerage service will work with you in a way that suits you best.
Get Consultation & Advice
Depending on your shipment and its destination, the documentation can be anything but straightforward. But there are ways to streamline the process, and even the requirements, that a brokerage can help you with.
Avoid Delayed Shipments
Issues with the documentation, procedures, and clearance of your shipments are not always neat and tidy. For example, if you miss just one piece of information, your shipment isn’t necessarily returned. It may be held for an unspecified period of time until the information is provided in the correct format.
While we mentioned ‘lower your costs’ before, the cost of a delayed shipment is difficult to assess. And its effects can go beyond hard costs to include damage to client satisfaction and your brand reputation.
If you enjoyed this post, check out our recent article FCL vs LCL: Which Shipping Method Should You Choose?
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