Customs Clearance Procedures

Most import delays don't start at the port. They start at your desk - with bad paperwork. Standard Import Package: 1. Commercial Invoice  *Prepared By:* Exporter   *Primary User(s):* Customs, Broker, Importer  This document shows the sale between the buyer and seller. It lists the goods, their value, and payment terms. 2. Packing List *Prepared By:* Exporter   *Primary User(s):* Customs, Forwarder, 3PL      This list details how items are packed. It helps with inspections and logistics. 3. Bill of Lading / Air Waybill  *Prepared By:* Carrier or Forwarder   *Primary User(s):* Carrier, Customs      This is a contract for transport. It proves ownership and details the shipment. 4. Certificate of Origin *Prepared By:* Exporter / Chamber   *Primary User(s):* Customs      This document certifies where the goods come from. It can affect tariffs. 5. Import License / Permit *Prepared By:* Importer   *Primary User(s):* Customs      This license allows the goods to enter the country. It’s often required for certain products. 6. Insurance Certificate *Prepared By:* Insurer / Exporter   *Primary User(s):* Importer, Carrier  This certificate shows that goods are insured during transit. It protects against loss or damage. 7. Customs Declaration (e.g., Entry Summary, SAD) *Prepared By:* Broker/Importer   *Primary User(s):* Customs     This document provides details about the goods for customs clearance. 8. Other Documents *Prepared By:* Varies   *Primary User(s):* Customs, Importer  This may include inspection certificates, MSDS, or fumigation certificates. Common Mistakes & How to Prevent Them: 1. Missing or Incorrect HS Codes   *Prevention Strategy:* Use validated tariff classifications. 2. Inconsistent Descriptions  *Prevention Strategy:* Maintain a master data sheet for SKUs. 3. Wrong Incoterms *Prevention Strategy:* Align terms across all documents. 4. No Certificate of Origin *Prevention Strategy:* Pre-check FTA eligibility and requirements. 5. Incorrect Values *Prevention Strategy:* Ensure the declared value matches the invoice. 6. Wrong Consignee Details *Prevention Strategy:* Double-check against records. 7. Expired Import Permits *Prevention Strategy:* Track license validity in a compliance calendar. Final Compliance Checklist Before Submission: Are all documents complete & accurate?  Any region-specific requirements? Have all trade parties reviewed and confirmed? Smooth imports dont just happen. They're the result of documentation excellence. CTA: If you found this helpful, follow for more trade compliance insights.

When a product is refused or seized at the border, most people jump straight to asking what was wrong with the goods? But the better question is what broke down in your process before that shipment even left the supplier’s facility? Compliance is not only about what's in the box” or what is printed on the label. It is also about who you are doing business with, how well you know them, who has had access to the box, and whether you can trust that the paperwork matches reality. Sometimes, it is not the product that triggers a seizure. It is the involvement of a flagged party or a questionable transaction. To reduce the chances of costly delays or seizures, companies need to focus on full compliance at every step. That includes having accurate labels, correct country of origin markings, valid certificates, knowing your supply chain, and making sure the product is not violating the rules of any federal agency. Customs enforces more than just customs law. If your product violates FDA, EPA, DEA, CPSC, USDA, “ABCD” requirements, it is at risk. Many companies miss this entirely. Want to see what this actually looks like in practice? I explain it all here: https://lnkd.in/ekAZPMkZ #FDACompliance #CustomsSeizures #ImportLaw #ProductLabeling #CBP #RegulatoryStrategy

🌐✈️ Benefits of AEO for Exporters and Importers! 🚢📦 . . . . AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. The programme aims to enhance international supply chain security and facilitate movement of legitimate goods.AEO encompasses various players in the International supply chain. Under this programme an entity engaged in international trade is approved by Customs as compliant with supply chain security standards and granted AEO status & certain benefits. India’s AEO Programme is in sync with the commitments made under Article 7.7 of WTO TFA. AEO is a voluntary compliance programme. It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators. The Indian AEO Programme is implemented vide CBIC Circular 33/2016 – Customs dated 22.07.2016, as amended & Circular 26/2018- Cus dated 10.08.2018, which provides the statutory framework for the AEO programme. The circular is in line with the WCO’s SAFE Framework. The circular provides for a three tier AEO Status for Exporters and Importers. The three tiers are AEO T1, AEO T2, AEO T3, where AEO T3 is the highest level of accreditation. All three tiersprovide for varying and incrementally increasing level of facilitation to the status holder. There is one more category of AEO- LO that covers all other entities in the supply chain other than the importers and exporters. The Circular 33/2016 – Customs was amended by the Circular 03/2018 – Customs dated 17.01.2018. Amendment Circular 03/2018 – Customs has further liberalized, simplified and rationalized the AEO accreditation process so as to promote Ease of Doing Business and to emulate global best practices. Recently, the AEO T1 processing was rationalized via new circular 26/2018 - cus. The present circular has cut down on the Annexure required for AEO T1 certification from earlier 7 to the present 2. The present circular has not just rationalized the AEO T1 processing by taking away redundancy in earlier processing but it has also made more thorough certain key compliance requirements. For that, the new circular has relied upon the latest SAFE framework 2018 edition and best practices from domestic AEO Programme of different customs administrations. Apart from the above changes, the new circular has completely decentralised the processing of AEO T1. In the present the setup, the AEO T1 file can be approved at the Customs Zonal level. This has completely eliminated the time that was wasted in transit of application from zonal offices to DIC (AEO HQ). In effect, the present AEO processing has not just been simplified but is also comprehensively aligned to security requirements as provided in the latest SAFE Framework. #MakeInIndia

→ You think #Brexit barriers are bad now? 𝗡𝗘𝗪 𝗕𝗥𝗘𝗫𝗜𝗧 𝗕𝗢𝗥𝗗𝗘𝗥 𝗖𝗢𝗡𝗧𝗥𝗢𝗟𝗦 𝗦𝗧𝗔𝗥𝗧 𝗧𝗛𝗜𝗦 𝗠𝗢𝗡𝗧𝗛 Starting on 31 January, the UK government is imposing full Brexit border controls on imports from the #EU, having delayed them on five previous occasions. This is three years after the UK left the EU’s Single Market, when the EU had no qualms in immediately imposing full border controls on goods from the UK entering the bloc. But the UK government kept delaying border controls on goods coming to Britain from the EU because of worries about the complications, confusion, and costs for British businesses. None of that has changed now that the government is finally biting the Brexit bullet. According to a poll last October by the The Institute of Export & International Trade, less than 20% of UK businesses understood how the upcoming border control changes would affect them. ▪ From 31 January, full customs controls of imports of fresh food such as meat and dairy products from the European Union comes into force. ▪ From 30 April, the second phase starts, which will introduce more physical and document checks on animal products, plants, and foods of non-animal origin from the EU. ▪ From 31 October, safety and security declarations for EU imports will come into force. The UK imports most of its imported food from the EU. How could anyone think that putting up barriers to most of our imported food would ever result in lower food costs? The opposite will happen. More costs. More delays. More complications for British trade. Increased cost-of-living for British consumers. Before Brexit, imports and exports between the UK and the EU were entirely frictionless without any border controls. The NFU (National Farmers' Union) has also warned that new checks for young plants coming into the UK from the EU is likely to cause long delays at the border and could result in plants being damaged or destroyed. UK growers are reliant on the EU for young plants that start life in countries such as the Netherlands before being imported into the UK for planting. [See The Guardian: https://bit.ly/3UaX3j0] ▪ Since Brexit began for real on 1 January 2021, British exporters have had to endure complicated and costly customs barriers and delays to getting their goods to the EU, when none existed before. ▪ Now British importers will have to endure complicated and costly customs barriers and delays to getting goods from the EU to Britain, when none existed before. Putting up barriers to trade with our most important customers and suppliers in the world – right on our doorstep – was a brainless Brexit idea that should never have gone ahead. Another reason to ‘Get Brexit Undone’? ▪ The situation is different for Northern Ireland, that has unique friction-free access for goods in the Single Market. © Report and graphic by Jon Danzig #imports #exports

Export Documentation Checklist For Sea Shipments (Ocean Freight): Make sure these documents are ready before shipping by vessel: 1. Commercial Invoice – Details the transaction between buyer and seller (value, terms, description). 2. Packing List – Describes each package: quantity, dimensions, weight, HS codes. 3. Bill of Lading (B/L) – Proof of shipment and ownership, issued by the shipping line. 4. Export Declaration / Shipping Bill – Essential for customs clearance. 5. Certificate of Origin – States where the goods are made (helps with import duty benefits). 6. Insurance Certificate – Covers cargo during transit (important for CIF terms). 7. Letter of Credit / Bank Documents – Needed for bank-related payments. 8. Dock Receipt – Confirms delivery of goods at the port. 9. Mate’s Receipt – Issued by ship’s officer once cargo is loaded. 10. Dangerous Goods Declaration – Mandatory for hazardous cargo. 11. Inspection Certificate – Required for regulated goods like food or machinery. For Air Shipments (Air Freight): These documents are usually required for shipping by air: 1. Commercial Invoice 2. Packing List 3. Air Waybill (AWB) – Provided by the airline or freight forwarder. 4. Export Declaration / Customs Filing 5. Certificate of Origin 6. Insurance Certificate 7. Security Declaration – Confirms cargo is safe for air transport. 8. Dangerous Goods Declaration 9. Inspection Certificate (if applicable) Pro Tip Even one missing document can delay or stop your shipment! Always double-check your paperwork before exporting

What is AEO (Authorised Economic Operator)? AEO is a customs-to-business partnership program that aims to strengthen international supply chain security while facilitating legitimate trade. It was introduced by the World Customs Organization (WCO) under the SAFE Framework of Standards. In simple terms, AEO-certified companies are recognized as low-risk and reliable by customs authorities and therefore receive various operational benefits. 📌 Key Objectives of AEO To enhance security in the global supply chain. To simplify and expedite customs processes. To promote compliance and trust between customs and businesses. To reduce time and cost of trade-related operations. 🇲🇾 AEO in Malaysia Managed by: Royal Malaysian Customs Department (RMCD) Malaysia’s AEO program is aligned with international standards and is open to companies involved in cross-border trade. ✅ Types of AEO Certification Malaysia recognizes two main categories: AEO-C (Compliance-based) For companies with a strong record of customs compliance. AEO-S (Security-based) For companies that meet both customs compliance and supply chain security requirements. Some companies may qualify for both, depending on their operations and internal controls. 🏢 Who Can Apply for AEO? Manufacturers Importers and Exporters Logistics providers Customs brokers/forwarding agents Warehouse operators Eligibility usually depends on: A clean compliance record with Customs over a set period (e.g. 3 years) Strong internal control systems Secure supply chain practices (e.g., cargo security, employee vetting, etc.) 🛠️ AEO Benefits Depending on the level of certification and country agreements, benefits may include: ⭐️Benefit ➡️Faster Clearance - Priority processing at customs checkpoints ➡️Reduced Inspections - Fewer physical/document checks ➡️Lower Compliance Costs - Less delay = less storage, admin, or demurrage costs ➡️Mutual Recognition - Accepted in other countries with AEO programs (if bilateral agreement exists) ➡️Business Reputation - Seen as a secure and reliable trade partner ➡️Simplified Customs Procedures e.g., consolidated declarations, post-clearance audit 🌍 Mutual Recognition Agreements (MRA) Countries that have AEO Mutual Recognition Agreements with Malaysia may honor the AEO status, allowing similar benefits across borders. This helps facilitate smoother international trade. 📄 How to Apply for AEO (Malaysia) •Submit an application to RMCD (Customs AEO Unit). •Prepare supporting documents, including: Internal SOPs •Risk management practices Supply chain security controls •Undergo site audits and evaluations by Customs. •Receive certification upon approval.

The European Commission adopted a Delegated Regulation updating the EU dual-use export control list in Annex I of Regulation (EU) 2021/821. The update brings the list in line with decisions taken in the multilateral Export Control Regimes, and also introduces controls on certain emerging technologies in light of commitments that Member States have accepted, as members of the Wassenaar Arrangement - e.g. in the area of quantum technology, semiconductor manufacturing a and advanced computing integrated circuits as well as additive manufacturing.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐀𝐄𝐎 𝐒𝐜𝐡𝐞𝐦𝐞? 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐢𝐭𝐬 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬? The Authorized Economic Operator (AEO) is a partnership between customs administrations and businesses involved in international trade. It aims to: +Enhance supply chain security standards +Identify safe and reliable business entities in international trade +Facilitate legitimate trade by providing benefits to certified operators 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐀𝐄𝐎 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 AEO-certified entities enjoy several advantages: +Deferred payment of duties +Priority treatment for customs clearances +Improved competitiveness and reputation +Reduced data requirements for cargo release +On-site inspection/examination upon request +Reduction or exemption from bank guarantees +Minimum number of cargo security inspections +Faster customs clearance and reduced inspections. +Recognition as a secure and compliant trader internationally +Facility for Direct Port Delivery (DPD) of import containers and Direct Port Entry (DPE) of export containers 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐀𝐄𝐎 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚 India has a three-tier AEO program for importers and exporters: + AEO-T1 + AEO-T2 + AEO-T3 (highest level of accreditation) There's also an AEO-LO certification for logistics operators 𝐄𝐥𝐢𝐠𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 To be eligible for AEO certification, businesses typically need to: + Have been involved in international trade for at least three years + Demonstrate compliance with customs requirements + Have a satisfactory system for managing commercial records + Prove financial viability + Meet specific security standards for cargo, conveyance, premises, and personnel The AEO scheme offers significant benefits to businesses engaged in international trade, helping them streamline their operations, reduce costs, and enhance their global competitiveness.

Shipment Documentation : In logistics, proper documentation is essential to ensure the seamless movement of goods across borders. These documents help meet legal requirements, facilitate customs clearance, and ensure accurate and secure handling of shipments. The key documents involved in shipment processes includes following : 1. Commercial Invoice A core financial document that mirrors the details of the proforma invoice. It serves as a request for payment and is used by customs to assess duties and taxes. It typically contains -: -Customer name and contact details -Product description -Quantity of items -Total value of goods -Payment terms and currency -Incoterms (e.g., FOB, CIF) -HS Code, Part Number 2. Packing List This document outlines the physical details of the shipment and assists in handling, verification, and inspection. It contains: -Container number and seal number -Itemized packing information (e.g., number of boxes, pallets) -Weight and volume of goods -Dimensions and packaging type -Reference to invoice numbers -Markings and handling instructions 3. Certificate of Origin A declaration that specifies the country where the goods were manufactured or assembled. It is essential for: -Customs clearance at destination -Compliance with bilateral or multilateral trade agreements -Determination of import duties and tariff benefits It may be issued by a Chamber of Commerce or a certified trade authority. 4. Health Certificate Required primarily for regulated goods such as food, agriculture, animals, and pharmaceuticals. It confirms that the products meet health and safety standards of the exporting and importing countries. It includes: -Product specifications and lot numbers -Producer or manufacturer information -Compliance with sanitary and phytosanitary regulations -Certification by a government-authorized agency 5. Bill of Lading (B/L) A legally binding document between the shipper and carrier that outlines the terms of shipment. It serves multiple functions: -A receipt confirming goods have been loaded -A document of title allowing transfer of ownership -A contract of carriage between parties Enables the consignee to take possession of goods at destination There are different types such as Master B/L, House B/L, and Sea Waybill, depending on the shipment arrangement

🫠 Everyone’s buzzing about the new tariffs.. here’s what we’re actually seeing on the ground. Reporting from our front row seat at Airpals, especially with large manufacturing companies, here’s what’s really happening and what operators should be thinking about right now. 👉 In pharma manufacturing, some finished drugs are exempt, for now. But raw materials, lab supplies, and production equipment aren’t. That’s where the cost increases are already hitting: R&D, clinical trials, compliance. These aren’t products being sold, but the impact still trickles down to margins. 👉 We’re seeing a surge in domestic parcel shipments as companies stockpile materials from overseas and move them across multiple U.S. facilities. Operators are managing hundreds of active shipping accounts, often across multiple carriers and thousands of employees. It’s chaos. And it’s expensive. 👉 Localization can only go so far. Whether you’re shipping U.S.-made components overseas or moving imported materials into the U.S. for testing or clinical trials, cross-border movement is still critical. And here’s the kicker: most teams are missing real savings by not classifying these shipments properly. Here are a few customs exemptions and classifications every ops or logistics leader should be familiar with: ✅ HTSUS 9817.85.01 – Duty-Free Entry for Prototypes Used for articles imported exclusively for product development, testing, or quality control. Think early-stage pharma compounds or lab devices...not for sale. ✅ HTSUS 9811.00.60 – Samples of Negligible Value Applies to commercial samples marked “not for resale” or physically altered. Good for reagents or product samples sent for testing. ✅ HTSUS 9813 – Temporary Importation Under Bond (TIB) Used when you’re bringing something in temporarily (testing, research, exhibition) and then exporting or destroying it. Useful for clinical trial materials or diagnostic instruments. Most teams know of these, but very few have the systems in place to use them effectively, especially across fragmented shipping accounts and workflows. If this resonates, or you know someone trying to adapt operations in the face of new tariffs, share this with them. This is where savings are slipping through the cracks. #tariffs #pharmamanufacturing #pharma #CPHI #logistics