What does ‘cleared by customs’ mean?

Customs cleared means your shipment has completed the customs clearance process and that any applicable duties and taxes have been calculated and paid.
When a shipment is cleared by customs, the customs officer will release the shipment and it is then free to move on to its next destination.

Proper documentation, including invoices, packing lists, and shipping details, helps customs officers verify the shipment’s contents, value, and origin. According to Export Solutions, missing or incorrect information could lead to a clearance delay.

Non-compliance can result in shipment seizure, additional fees, or rejected goods, making adherence to customs and clearance requirements a critical part of the shipping process.

In general, customs clearance can be broken down into four key steps:

The customs documentation required varies by destination, but may include:

• Airway bill: Proof of air cargo transport

• Commercial invoice: Lists goods' value and details for duties

• Certificate of origin: Confirms goods' country of manufacture

• Packing list: Details shipment contents and weight

• Pro forma invoice: Preliminary invoice before shipment

• Bill of lading: Proof of sea shipment and ownership

• Certificate of conformity: Confirms goods meet standards

• Export license: Permission to export restricted goods

• Certificate of insurance: Proof of shipment insurance

• Letter of credit: Bank-guaranteed payment for shipment

• Import license: Permission to import restricted goods

• Customs bond: Guarantee for duties and compliance

• Bill of entry: Declares imported goods to customs

Individual countries may also require specific certifications or declaration forms. It is important to carry out due diligence and understand what is required to clear customs in your shipment’s destination. 

Customs officers review the submitted documentation and may inspect goods to ensure compliance with local regulations. For example, the International Trade Administration advises “Australian importers are legally responsible for the accuracy of information supplied to customs … and may be subject to compliance checks.”

While not every transaction will be scrutinized, it remains crucial to understand customs clearance practices in order to be well-prepared. When a shipment is inspected, customs officers typically evaluate the contents of shipments to identify restricted or regulated goods. They may also ensure all items meet local standards and do not pose risks.

Carriers like FedEx will verify that the submitted documents meet destination customs requirements. If any documents are incorrect or missing, the customs clearance team will contact customers to prevent further delays.

Duties and taxes are calculated based on the product's declared value, classification, and the destination country’s tariff schedule, which is typically published by local authorities.

Carriers such as FedEx provide tools for estimating duties and taxes, incorporating factors like invoice value, customs valuation, and Incoterms®.

Importers can typically pay duties and taxes in advance or upon the shipment’s arrival to expedite clearance.

Customs authorities generally issue clearance once all payments and assessments are complete, and officially release the goods.

FedEx will try to clear customs for most shipments, so when landing, those shipments can proceed to the next stop immediately.

Customs clearance usually takes one to two days as long as the goods are shipped in compliance with all customs regulatory requirements, including accurate documentation and information required for clearance. If anything is out of order, there will be delays.

Shipments that are not formally cleared by customs are held in a bonded warehouse.

A bonded warehouse is a customs-controlled facility to retain imported goods upon entry into the country. Goods that customs have not formally cleared are held here until the duty fee is paid. These facilities are used by businesses to help improve cash flows since the assessment of duty and tax is applied once an order is ready to leave the location.

Once your shipment clears customs, FedEx will transport it to its final destination.

Smooth customs clearance relies on accurate documentation and compliance with regulations. Common mistakes or oversights can cause costly delays and additional scrutiny. These issues may prevent shipments from reaching their destinations on time.

Errors in documentation are among the most common causes of customs delays. Missing, incorrect, or incomplete paperwork often triggers reviews by customs authorities.

Common examples include mismatched invoices where the declared value does not align with supporting documents or missing HS codes, which are essential for determining duties. Insufficient or vague commodity descriptions may also create confusion that requires clarification.

Under-declaring the value of goods can also raise red flags. According to the Australian Customs and Border Protection Service, customs officers commonly use the transaction value—the price the importer pays or will pay for the goods—as the basis for valuation.

However, if the transaction value can’t be used, they may use alternative methods – such as identical goods value, similar goods value, deductive value, computed value, or fall-back value – to determine the value of the shipped goods.

If customs officers suspect the declared value is too low, they may apply additional duties, penalties, or longer processing times.

Resolving discrepancies may take days or weeks, depending on the customs authority’s efficiency. Transparency and accuracy in paperwork help prevent unnecessary delays.

Certain goods, such as hazardous materials, controlled substances, or perishables, may face strict regulatory restrictions.

According to the Customs and Excise Department (C&ED) in Hong Kong, any persons importing or exporting prohibited articles must apply for licenses, permits or certificates from the Government Departments concerned in advance and are subject to the conditions imposed thereof

To avoid compliance issues, check if the items you are shipping require special licenses or permission. In addition, make sure to provide accurate paperwork, declare shipment values honestly, and understand destination regulations to ensure goods are customs cleared without delays.

Efficient customs clearance requires thorough preparation and accuracy. Follow these essential tips to avoid delays, fines, or audits and ensure your shipments meet international requirements while reaching their destinations on time.

• Use customs brokers: Partnering with customs brokers simplifies compliance with international regulations. Brokers handle documentation, duty calculations, and multi-country requirements.
  
  

• Pre-check documentation: Ensure all required documents, such as commercial invoices, HS codes, and certificates of origin, are accurate and complete before submission. Cross-check for consistency to avoid discrepancies.
  
  

• Classify goods correctly: Use precise HS codes for all products. Incorrect classification can lead to miscalculated duties and unnecessary delays. Tools and resources, such as online HS code finders, can help verify classifications.
  
  

• Declare the true value: Always declare the true value of your shipment. Undervaluation risks fines, audits, and delays, as customs may request proof of payment and apply duties based on the correct value.
  
  

• Track shipment status: Real-time tracking systems give timely updates on shipment status, enabling proactive management of potential delays or issues. When shipping with FedEx, go to FedEx Tracking, enter your 12-digit tracking number and click “Track" to view real-time updates.

Customs clearance requirements vary by country, including key documents, tax regulations, and compliance needs. The table below provides a general reference, but it’s essential to confirm current requirements or contact FedEx for support. 

*This table is not an exhaustive list and is subject to ongoing updates. Please confirm the latest requirements when preparing international shipments.

Thorough preparation and accurate documentation are key to smooth customs clearance.

By ensuring compliance and transparency, you can prevent delays, avoid fines, and keep shipments moving efficiently.

To facilitate and simplify the customs clearance process, FedEx provides digital tools that help you prepare your customs documents online easily.

Electronic Trade Documents allows you to streamline your customs declaration process by uploading customs documents online, which gives you a head start with customs clearance and helps avoid any potential delays. If you are a first-time shipper, you can find tips and instructions on how to prepare a package and manage your international shipments here.

Our import and export guide provides everything you need to complete the key documents, build your knowledge about shipping internationally and ensure your international shipments arrive exactly when they need to.

Now that you understand key concepts around customs clearance, you are ready to ship with confidence!