EXPORT CUSTOMS CLEARANCE

EXPORT CUSTOMS CLEARANCE STEP BY STEP

Export customs clearance is necessary if you want to export your goods outside the European Union. How is it done, what documents are necessary and what should you pay special attention to? Please read the article in which you will learn the stages of a customs clearance step by step.

Export customs clearance – basic information

If you sell your goods to the USA, to your customers are in Australia or you want to send a parcel to the UK, you will need to go through an export customs clearance.
It applies to every company and natural person who wants to export a specific product outside the European Union. The entire process is controlled by the customs and tax office.
Therefore, what should be done to minimize the risk of an inspection or if it happens, it was just a formality, so – where should you start?

Firstly, documentation

As an exporter, you have to make a customs declaration. You can do it on paper, on an appropriate form, or electronically.

Remember that the documents that will be required in the customs declaration depend primarily on the goods you want to export and where they will ultimately be sent. However, some of the documents are the same for every exporter.

Therefore, the documents necessary for export clearance are:

 

  • commercial invoice – a document confirming a commercial transaction, containing details of contractors, description of goods, value of goods, product code (according to the HS (Harmonized System)), commercial terms and conditions according to Incoterms rules and other information
  • pro-forma invoice – a document specifying the value of goods for customs clearance, used in the case of non-commercial shipments or samples. The invoice must state “Non-Commercial Value” or “Not for Sale”
  • delivery note/waybill/bill of lading (road, sea, air, rail) – this document certifies the international transport of goods, it must contain the details of the shipper and recipient as well as information about the quantity and type of goods
  • permits and/or licences – these documents are required when shipping goods subject to export or import restrictions or bans, e.g. food, plants, animals, medicines, weapons, etc.
  • certificate of the chemical and raw material composition of the goods – similarly to the above, it applies only to specific exporters, in this case it is a document issued by the manufacturer or an authorized research facility, containing information on the composition and origin of the goods necessary to determine the commodity classification and customs duty rate.

Finally, don’t forget your EORI number. This is the identification number of each exporter who decides to export their goods to third countries, i.e. outside the EU. It is free of charge and can be applied for via the Tax and Customs Electronic Services Platform (PUESC).

And if you want to learn more about customs declaration, please read the article with a corresponding title “Customs declaration – what is it and how to submit it”.

What does export customs clearance look like?

If you have all the necessary documents, the EORI number, and you have already submitted your customs declaration, the next step is export customs clearance.

We would like to remind you that you can do it yourself or outsource it to a customs agency such as ours. We have been supporting entrepreneurs from all over the world in exports and imports for over 30 years.

Back to the topic. After accepting the customs export declaration, the customs and tax office will send the registration number of the export operation. This number is necessary to track the customs clearance status and confirm the export of goods.

Your goods cannot leave the European Union until the export procedure is checked. After this, an Export Accompanying Document (EAD) is generated. This document confirms that the goods have left the territory of the European Union and can be delivered to the recipient in the destination country.

What should you pay special attention to during export customs clearance?

One of the most important issues is correct documentation. It happens that documents may be rejected by the customs and tax office.

The most common reasons for rejection of documents during customs clearance include:

  • firstly, incorrect or incomplete data – documents must contain all necessary information, such as names and addresses of contractors, description and value of goods, commodity code (according to the HS – Harmonized System), trade terms according to Incoterms rules, EORI number of the consignor and consignee, etc. Any errors or omissions may result in delays or rejection of the customs declaration.
  • secondly – incorrect goods classification – each product must be assigned to the appropriate tariff item, which determines the customs and tax rate as well as possible restrictions or prohibitions. Incorrect classification of goods may result in the imposition of additional fees or even confiscation of goods.
  • another reason is the lack of permits or licences – some goods require special permits or licences for customs clearance, e.g. food, plants, animals, medicines, weapons, etc. The lack of such documents may make customs clearance impossible or result in penalties being imposed.
  • and finally – inconsistency between the documentation and the goods – the documents must correspond to the actual contents of the shipment. If non-compliance is found, the customs officer may physically inspect the goods and impose sanctions.

Importantly, export customs clearance itself does not involve customs or tax fees. Additionally, as an exporter, you can apply a 0% VAT rate to the products you sell if you have official confirmation of the export of the goods.

We hope that we have introduced the topic of export customs clearance. However, if you have additional questions or want to be sure that the entire process will run correctly, please contact us. Our customs agents are licensed to practice their profession, but more importantly, they have extensive experience and competences.