I often hear from frustrated exporters about shipments “stuck” in customs. The shipments may include critical parts needed for an equipment or plant shutdown, expensive high tech components not generally carried in inventory, or medical instruments for hospitals. Delayed orders also mean delayed payments, which gets everyone’s attention. Most exporters rely on their freight forwarders to review the documentation of their shipments. However, details can be easily overlooked, so here are a few best practices for exporters to check before tendering shipments to forwarders.
The data used in customs entries comes primarily from the commercial invoice for the transaction. All countries have different, and sometimes obscure, customs regulations. It is true, however, that most delays are caused by a few commercial invoice errors or omissions.
Commodity descriptions should answer the questions: What is it? What is it made of? What is it used for? Use plain language which can be understood by anyone. Avoid trade names, brand names, or part numbers in the description. These can be added below the description or to the packing list if needed. If using a harmonized code consider entering only the first 6 digits, which are universal. All countries apply their own last 4 or 6 digits.
Value for customs may appear to be questionable for the commodity being shipped. The customs agencies in the destination country need to make sure that duty rates are accurate and will hold up the shipment if in doubt. Make sure that your commercial invoice reflects the correct transaction value and that you can clearly justify the valuation method.
Importer of record (IOR) contact info is often lacking on the commercial invoice. Customs in the importing country will not contact the exporter if they have questions or issues. If they are unable to contact the IOR the shipment will go into storage. Make sure you include recipient name, address, phone number, and e mail address on your CI as well as complete customs broker contact info.
Contact mitch@adhoclogistics.com for immediate assistance.