Export Customs Procedures
There are several basic steps that must be adhered to ensure your Company is ‘EXPORT READY’. Before jumping ahead to export the goods, buyer and seller must have a sales contract; a sales contract can either be a verbal agreement, a collection of documents such as a purchase order and, or a formal, written agreement signed by the buyer and the seller. The latter is highly recommended especially if the agreement defines/covers complete terms and conditions of the sale. The type of agreement your company uses may depend on the value of the sale, the nature of the goods, and the complexity of the terms of the agreement.
All exporters must have the required export license, certificate or permits to commence cross-border exports (the requirement differs from country to country). Exporting goods must be declared for customs or relevant agencies, even though there is no tax and duties levied (not all export goods have duty/tax). Export permission must be granted by customs authorities before goods can be exported. Where required, necessary export inspection by exporting country’s customs authorities must be undertaken as part of the export process.
After sales agreement signing, goods packed in accordance to export worthy standards, required export customs clearance documents are submitted to customs or relevant agencies either manually or electronically. This submission is either done directly by the exporter or the appointed customs brokers/freight agents. In addition to the customs documents, there are other documents that must be submitted, namely but not limited to;
- - Commercial Invoice,
- - Packing list, and
- - Bill of lading or Airway bill,
- - Certificate of Origin
Note: Countries/Products have different documentation submission. Please refer to specific country/customs guide for complete information and compliance.
Upon obtaining required approval from customs and or relevant agencies for goods exports, generally the goods will be transferred from exporters location to customs facility for physical clearance and release. Subsequently, the goods will be forwarded to a bonded or free trade zone area where international carriers are operated. The export cargo will be transported by respective Carriers for cross-border movement to destination countries. These activities will be managed by either the buyer or seller’s appointed Freight Forwarder dependent upon the agreed Incoterms.
Export customs clearance methodology is similar in almost all ports or airports worldwide. Detailed information about export customs process and procedure is explained separately in respective country customs website.
Nominating a Freight Forwarder to deal with the export procedures is highly recommended.
Customs & Incoterms
Export Customs Procedures
The proliferation of the Internet, e-commerce, and opening up of international trade norms across the world have made it easier for buyers and sellers, importers and exporters across the world to conduct trade and business deals. The varying import and export norms and practices in different countries, however, present the risk of misunderstandings and disputes. To resolve these and to facilitate global trade the International Chamber of Commerce (ICC) has established the Intercoms (Internationa
Every day, millions of tons of cargo are shipped to destinations within a country or overseas. Hence, rules and regulations regarding incoterms have been enacted to manage this national and international trade. There are 11 incoterms, and these list out the responsibilities of both buyers and sellers. Delivery Duty Paid (DPP) is one of these 11 incoterms and defines the responsibility of sellers. Courtesy of seller.alibaba.comObligations of the sellers DPP is a delivery agreement between the bu
The EX Work Incoterm is commonly known as EXW Incoterm, often heard during the trade sector, especially for importing and exporting goods. When you opt for an EXW incoterm, the seller is only responsible for delivering goods to the designated location. Everything after that, including the shipping cost, is covered by the buyer. Therefore, this arrangement is more suitable for sellers as it has limited obligations for them. Under this incoterm, once the merchandise is packed, the full responsibi