What does customs cleared mean in shipping?

For small business owners who want to expand to international markets, shipping internationally can be overwhelming. One of the biggest challenges is getting their international shipments cleared by customs, and it is a must-do process for every international shipper.

Failures at customs clearance can result in shipment delays, rejection and/or fines. Submission of incorrect information on customs clearance documents may even break laws in the respective export destinations/or import origins.

If you are ready to ship overseas, this is a guide that will help you understand the customs clearance processes for both imports and exports. Let’s get started and learn these useful tips and tools that will make your life easier.

What is customs clearance?

Customs clearance is the process through which an import or export shipment is reviewed and cleared by the Customs Office.

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

i. Submission of customs paperwork for a Customs Officer to examine.¹

ii. Assessment of the customs paperwork.²

iii. Calculation of duties and taxes.

iv. Payment of duties and taxes.

1. Documentation must be accurate and complete. The customs documentation required varies by destination, but always includes the air waybill and commercial invoice. Other customs documents that may be required are certificate of origin, specific government certifications, packing list, pro forma invoice, bill of lading, certificate of conformity, export license, certificate of insurance, letter of credit, import license, customs bond and bill of entry.

2. If the paperwork is inaccurate or incomplete, the customs broker will need to step in to fix the problem, otherwise fines or penalties may apply.

What does “Customs cleared" mean in the shipping process?

“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.

Frequently asked questions about customs clearance (FAQs)

How long does customs clearance take?

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

What are the documents needed for customs clearance?

The main documents you need for customs clearance are the commercial invoice and the air waybill.

You may need additional documents depending on the origin, destination and commodity being shipped, these include:

Certificate of origin
Export/Import license/permit

Visit our Customs Clearance hub for more information about what kind of documents are required for your shipment.

What duties and taxes are needed for international shipping and customs clearance?

Duties and taxes vary based on the items being shipped and the final destination. FedEx provides estimated duties and taxes based on invoice value, customs valuation and Incoterms^® as per local customs rules. Please visit our FedEx Global Trade Manager and the Document Preparation Center for a one-stop support resource for international shipping information, including how to calculate estimated duties and taxes.

What is the next step after the shipment has been cleared?

Once your shipment clears customs, FedEx will transport your shipment from the bonded warehouse to its final destination.

How can I track my package’s shipping status?

Go to FedEx Tracking, enter your 12-digit tracking number and click “Track." To learn more about how to track your shipment, visit FedEx Tracking Quick Help.

How do I fill out and submit my customs documentation?

Follow the three steps below to fill out and submit your customs documentation.

STEP 1
Use Global Trade Manager to find all the necessary customs documents specific to your shipment.

STEP 2
Generate and upload a commercial invoice for your shipment using FedEx Ship Manager^TM at fedex.com and upload your necessary customs documents, if needed.

STEP 3
Print out the international air waybill and necessary documents.

Additional customs clearance support

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 have learned the key concepts around customs clearance, you are ready to ship!

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