Customs Clearance Step by Step: Import & Export
How import and export customs clearance works: documents, classification, valuation on CIF or FOB, duty payment, inspections and release.
Quick Answer: Customs Clearance Step by Step
Step 1: prepare documents
The core set is the commercial invoice, packing list, bill of lading or air waybill, and where needed a certificate of origin, licences and inspection certificates. Data must agree across documents.
Step 2: classify and value
Classify the goods to the national tariff code and declare the customs value. Under the WTO Valuation Agreement the transaction value is the price actually paid, adjusted for items such as freight and insurance where the country values on CIF.
Step 3: file and pay
The importer of record or its licensed broker files the declaration electronically. Customs calculates duty, VAT or GST and other charges, which are paid or secured by a bond or deferment account.
Step 4: risk checks and release
Customs risk systems release most shipments straight away. Others are held for a document check or a physical inspection. Once cleared, customs issues a release and the carrier lets the goods go. Export clearance follows the same pattern in the origin country before loading.
At a glance
| Step | Who | Key document |
|---|---|---|
| Prepare documents | Exporter and importer | Commercial invoice, packing list |
| Classify and value | Importer or broker | Tariff code, customs value |
| File declaration | Importer of record or broker | Entry or bill of entry |
| Pay duty and tax | Importer of record | Payment or bond |
| Release | Customs and carrier | Release notice |
Worked example
Goods invoiced at USD 20,000 FOB with freight USD 1,500 and insurance USD 100 have a CIF value of USD 21,600. At a 5% duty rate the EU charges USD 1,080 duty. Import VAT of 20% is then charged on USD 22,680, which is USD 4,536. In the US the same goods are valued on FOB, so 5% duty is USD 1,000.
Frequently asked questions
How long does customs clearance take?
Most compliant shipments clear within hours to a day or two. Inspections or missing documents can add several days.
Who is responsible for customs clearance?
The importer of record is responsible for import clearance. Under the Incoterms rule the seller or buyer arranges export and import clearance.
Is customs value based on CIF or FOB?
Most countries use CIF. The United States, Canada and a few others use FOB.
Frequently asked questions
How long does customs clearance take?#
Most compliant shipments clear within hours to a day or two. Inspections or missing documents can add several days.
Who is responsible for customs clearance?#
The importer of record is responsible for import clearance. Under the Incoterms rule the seller or buyer arranges export and import clearance.
Is customs value based on CIF or FOB?#
Most countries use CIF. The United States, Canada and a few others use FOB.