When shipping goods internationally, understanding how customs clearance works is essential. It’s one of the most important parts of cross-border logistics—and also one of the most misunderstood.

If you’re new to international shipping, this guide will walk you through the customs clearance process, explain why it matters, and help you avoid common delays.

What Is Customs Clearance?

Customs clearance is the process your shipment goes through when entering or exiting a country. Customs authorities review your documents, inspect the goods if needed, and confirm that all required duties and taxes have been settled.

Without clearance, your shipment cannot legally move forward. It may be held, delayed, or even sent back.

The Step-by-Step Customs Clearance Process

1. Document Preparation

Customs authorities require several documents to verify what’s being shipped, its value, and its origin. These include:

• Commercial Invoice: Details the buyer, seller, item descriptions, quantities, and values.
• Packing List: Lists the physical contents of each package in the shipment.
• Bill of Lading (or Airway Bill): A transportation contract between the shipper and carrier.
• Import/Export Licenses: Required for certain restricted or regulated items.
• Certificate of Origin: Proves the country where the goods were manufactured, which can affect duty rates.
• HS Codes (Harmonized System Codes): Used to classify goods for duty and tax calculations.

Accurate, complete documentation is critical. Any errors can lead to delays or rejections.

2. Customs Entry Submission

The next step is submitting the required documents to customs—often through a licensed customs broker. The broker files an entry summary that declares:

• What the goods are
• Their value and quantity
• Country of origin
• Destination and consignee information

The customs authority uses this information to assess whether the shipment complies with local laws.

3. Customs Review and Inspection

After reviewing the documentation, customs agents may:

• Approve the shipment without further action
• Request clarification or corrections to the paperwork
• Flag the shipment for inspection

Inspections can be random or triggered by discrepancies in the documents. A physical inspection involves opening containers or boxes to verify the contents match what was declared.

4. Duties, Taxes, and Tariffs

Customs calculates any import duties, taxes, or tariffs owed. These are usually based on:

• Declared value of the goods
• Classification under the HS Code
• Country of origin
• Applicable international agreements

Some shipments qualify for reduced or zero duties under specific treaties. Otherwise, the importer must pay the required fees before customs will release the goods.

5. Customs Release

Once all requirements are met and any fees are settled, customs will issue a release. The shipment is then cleared to move to its next destination—usually a warehouse, distribution center, or customer location.

This final step is often the quickest, assuming there are no errors or complications earlier in the process.

Common Customs Issues That Cause Delays

Many delays can be traced back to issues with documentation or communication. Some of the most common problems include:

• Missing or incomplete paperwork
• Misclassification of goods under the wrong HS code
• Incorrect declared values
• Failure to obtain required licenses or permits
• Unsettled duties or unclear responsibilities
• Shipment flagged for inspection due to inconsistent information

These issues can lead to delays ranging from a few hours to several weeks, depending on the country and type of goods.

Tips for Smoother Customs Clearance

If you’re just starting out with international shipping, here are a few ways to prevent problems:

• Double-check all required documents before shipping
• Use the correct HS codes to classify your goods
• Make sure your invoice and packing list are consistent
• Understand the import regulations of your destination country
• Keep digital copies of all shipping paperwork organized and accessible
• Consider working with a licensed customs broker for added support

Even experienced shippers occasionally run into issues. But with a clear understanding of the process and attention to detail, most problems can be avoided.

About Thomas Witt

Thomas Witt is a transportation consultant with over 40 years of experience in freight logistics and international operations. He has helped companies of all sizes optimize shipping strategies and scale global operations.