Everything Related to Customs Clearance Procedures and Documents and How to Choose The Right Company
What is Customs Clearance?
Customs clearance is a fundamental process that international trade transactions must undergo. Due to its crucial role, both importers and exporters need to thoroughly understand it. The customs clearance process can be summarized into two main aspects. The first involves the movement of goods through customs, while the second includes the preparation and submission of all necessary documents for the goods, as well as the payment of customs duties and taxes. Customs clearance can be divided into four main steps:
1- Submission of required documents to the customs office: These documents typically include the shipping invoice, shipping statement, shipping bill, certificate of origin, and inspection certificate.
2- Evaluation of goods: Customs officials assess the value of the goods and determine any applicable fees or taxes.
3- Payment of fees and taxes: The required fees and taxes must be paid before the shipment can be released.
4- Release of the shipment: After payment of fees and taxes, a customs release permit is issued, allowing the shipment to be transported to its final destination.
Importers or exporters can handle customs clearance procedures for their goods themselves without resorting to customs clearance companies or agents. However, customs clearance experts strongly advise against this, as a lack of experience in customs clearance procedures can lead to complications, resulting in increased costs for port berth rentals and storage fees. Customs clearance can be a complex and time-consuming process, especially if the shipment is large or contains goods subject to specific restrictions or regulations. Therefore, it may be beneficial to enlist the services of a specialized customs broker through the Yellow Pages Guide for customs clearance companies.
Customs Clearance Procedures:
Customs clearance procedures are a legal process through which imported or exported goods are allowed to exit or enter a country. Customs clearance procedures vary from country to country, but there are some basic steps that most countries have in common
Customs Clearance Steps:
1- Submit the required documents:
The first step in customs clearance procedures is to submit the required documents to the customs authorities. The documents required vary from country to country, but some common documents include:
Customs declaration: It is a document that contains all the important details of products imported or exported by land, air, or sea. The details of the customs declaration include the source of the shipment, its type, value, quantity, and others.
Commercial invoice: It is the legal document issued by the supplier to the customer or importer in an international transaction, which is considered a contract proving the sale between the customer and the seller or exporter, and it is one of the most important documents in foreign and international trade. The commercial invoice is characterized in that it does not clarify ownership of the goods, unlike the bill of lading. However, it is necessary for customs clearance to calculate and evaluate the taxes and fees due. It also shows the prices, quantity, and value of the goods sold, and includes the commercial terms agreed upon by the importer and supplier.
Certificate of Origin: A document that shows where the goods you are shipping are grown, manufactured, or produced. It is necessary to ensure that the goods being shipped can enter a country/region and potentially qualify for duty-free or tariff reduction under an agreement, such as EPA (Economic Partnership Agreement) and FTA (Free Trade Agreement). You can usually indicate where the goods were grown, manufactured, or produced on a commercial invoice; However, some countries/regions require a specific certificate proving the origin of the goods. This document must also be signed by the relevant government department, chamber of commerce or embassy of the exporting country/region.
Bill of Lading: It is a legal document between the company that ships the items and the carrier. This document accompanies shipped items and serves as the shipping receipt when the items are delivered at the destination. If you use warehouse management, there are two ways to create a waybill:
1- Create the report manually, using the Waybill page.
2- Create the report from the load planning workbench.
2- Inspection of goods: After submitting the required documents, the customs employee inspects the goods. This includes verifying the authenticity of documents and ensuring that the goods match the description provided.
3- Determination of customs duties and taxes: Based on the results of the examination, the customs employee determines the customs duties and taxes due on the goods. Customs duties and taxes vary from country to country and depend on the type and value of the goods.
4- Payment of customs duties and taxes: Due customs duties and taxes must be paid before the goods are allowed to exit or enter the country. Customs duties and taxes can be paid in cash, check, or bank transfer.
5- Customs Clearance: Once customs duties and taxes are paid, a customs release is issued for the goods. Customs release allows goods to exit or enter the country.
Time taken for customs clearance procedures: The time taken for customs clearance procedures varies from one country to another and from one type of goods to another. In general, customs clearance procedures can take from a few hours to several days.
Factors affecting customs clearance time include:
1- Type of goods: Some goods, such as food or medicine, require more detailed examination, which may take longer.
2- Quantity of goods: Large quantities of goods require more detailed inspection, which may take longer.
3- Customs status of the goods: Goods that are subject to special customs procedures, such as goods subject to import tax, require more time for clearance.
Customs Clearance Documents:
First: The following customs documents:
1- Customs handling card.
2- Navigational delivery permit, excluding prior release, which is submitted electronically.
3- The bill of lading or a copy thereof for prior release, which must be submitted electronically.
4- Approval of the competent regulatory or security authority, as the case may be.
5- The commercial invoice does not require the packaging list if it includes details of the goods.
6- Statement of analysis if required
7- Catalogs of incoming items if the item requires it.
8- Certificate of origin in the event of claiming a customs exemption or preference and any other cases in accordance with the list of rules implementing the provisions of the Import and Export Law.
Second: Import Documents:
1- An import card for consignments received for trade, specifying the commodity group.
2- The document proving the activity, the import needs card, the investment certificate, or the Investment Authority’s stamp on the invoice (import for production of goods or services).
3- License indicating the activity (import for private use)
4- Financing Request Form No. 4 (Import for Trade / Production of Goods and Services / Government)
5- Receipt of payment of administrative expenses.
6- Special Use Form No. 6.
7- Production requirements model No. 5.
Third: Issuing a Customs Declaration of 19 k m:
The data is filled in, the most important of which are:
1- Type
2- Value
3- Origin
4- Quantities
5- Attach the value declaration
Fourth: Inserting Data Into the Computer:
1- The person concerned (or his representative) enters the customs declaration data into the computer through one of the electronic link methods, in particular:
2- The terminal at the importer’s office, or his representative, or the customs clearance companies linked to the customs automated system.
3- Customer Service Center in the executive customs sectors.
4- Developed logistics areas connected to the Customs Authority’s computer network. Care must be taken to include complete customs declaration data, and to include price data in accordance with the World Trade Organization Agreement for each item of invoice in detail in foreign currency.
5-Including the data is the responsibility of the person concerned.
6- In the event that the declaration is submitted by a representative of the person concerned, he must be one of the extractors approved by customs
Laws of the Egyptian Customs Authority:
The Egyptian Customs Authority regulates international trade by collecting fees and taxes on goods entering and leaving the country. It also monitors the movement of goods to prevent the entry of prohibited or restricted items.
Here are the key laws governing the work of the Egyptian Customs Authority:
1- Customs Law No. 207 of 2020 and its executive regulations issued by the Minister of Finance's Decision No. 430 of 2021: This law regulates all customs procedures related to the movement of goods entering and leaving the country. It specifies the types of customs duties and taxes imposed on goods.
2- Import and Export Law No. 118 of 1975 and its executive regulations issued by the Minister of Trade and Industry's Decision No. 252 of 1976: This law regulates the procedures for importing and exporting goods, as well as the rules and procedures related to customs tariffs and duties.
3- Customs Tariff Law No. 186 of 2005 and its executive regulations issued by the Minister of Finance's Decision No. 217 of 2005: This law determines the types of customs duties imposed on goods entering the country and specifies the rates of customs duties for each type of goods.
4- Competition Protection and Prevention of Monopolistic Practices Law No. 3 of 2005 and its executive regulations issued by the Prime Minister's Decision No. 347 of 2005: This law aims to protect competition and prevent monopolistic practices in the markets, contributing to promoting free trade and increasing productivity.
5- Consumer Protection Law No. 181 of 2018 and its executive regulations issued by the Prime Minister's Decision No. 1545 of 2018: This law aims to protect consumer rights and ensure their safety, contributing to building trust in the markets and increasing trade.
Importance of the Laws of the Egyptian Customs Authority:
The laws of the Egyptian Customs Authority play a crucial role in regulating international trade by:
1- Protecting local industries: By imposing customs duties on imported goods that compete with domestic products.
2- Generating revenue for the state treasury: By imposing customs duties and taxes on goods entering the country.
3- Protecting consumer rights: By preventing the entry of prohibited or restricted goods into the country.
How to Choose the Right Customs Clearance Company?
1- Licensing and Accreditation: Ensure that the company holds the necessary licenses and accreditations for customs clearance. You can verify this information through relevant government authorities.
2- Experience and Reputation: Look for companies with a long history in customs clearance and a good reputation. It may be helpful to read reviews from previous clients or seek recommendations from relevant businesses.
3- Services Provided: Check the range of services offered by the company. Services can vary, and you may need a company that provides services tailored to your specific international trade needs.
4- Service Costs: Compare the costs of customs clearance services among different companies. Be aware of the fees and various costs associated with importing and exporting.
5- Support and Communication Availability: Check the company's customer support availability and how communication can be established in case of issues or inquiries. Good communication and effective support are crucial in this context.
6- Information Technology: Ensure that the company effectively utilizes information technology to facilitate customs clearance operations and provide accurate and timely information.
7- Geographic Location: The geographic location of the company may be important, especially when dealing with international shipments. Choosing a customs clearance company close to major regions can facilitate the procedures.
8- Qualifications and Experience: Verify the company's credentials, such as licenses and certificates. For example:
1- Certificate of Conformity (COC): Issued by an accredited body (sometimes the manufacturer, sometimes an independent lab), certifying that the product meets required standards or specifications.
2-Materials Invoice (MATS): A comprehensive list of raw materials, components, and instructions needed for building, manufacturing, or repairing a product or service. The material list is usually presented in a hierarchical format, showing the final product at the top and individual components and materials at lower levels.
By researching the Yellow Pages business directory for customs clearance offices and considering these factors, you can make a more informed decision when choosing a customs clearance office.
