Executive summary
Each country could have different regulatory requirements. Research the regulations for your specific destination, and don’t make assumptions based on other markets.
Be aware of all the documentation needs. Some products require additional paperwork in some destinations, so make sure you check before shipping.
Don’t forget packaging and labelling. These can both have specific requirements depending on the destination country, so check in advance.
Have clear communication with customers over customs charges. It’s essential that both parties have a clear understanding of who is responsible for any payment that’s due.
Customs clearance can be simple if you get it right. Here, we unpack some of the most common mistakes, so you know what to watch out for when shipping abroad.
1
Not checking regulations
Every country has its own specific customs requirements for international shipping. Following the regulations of one territory might get your package stuck in customs in another, so when planning your shipment – especially if you are shipping to a new destination – check you know how to meet the requirements for that location.
That includes assessing whether its contents are legally allowed to be shipped into that country, whether there are any specific manufacturing requirements for your particular product, and whether import approval needs to be granted before the import declaration is made.
Key takeaway: Make sure you’ve double-checked your destination’s regulations prior to sending your shipment, so you can manage your customers’ expectations of when they might receive their package. You can find out which items are prohibited in which country here, and stay up to date with regulatory changes here.
2
Incomplete or incorrect paperwork
One of the most common reasons for a shipment to be held at customs is not having the right information accompanying it when it gets there.
At the basic level is the commercial invoice. All international shipments of any retail value require one, and it’s the primary document used by most customs agencies for import control, valuation, and duty determination. It should be first on your to-do list when preparing your paperwork, while any packages shipped internationally will also need an air waybill.
But as well as this, you may need to fill out specific paperwork depending on the value or contents of your package, or obtain other documents, licences or certificates. This will depend on the goods being sent and the countries they are being shipped into.
Key takeaway: Depending on what you’re sending and where there may be documents you need to complete that you aren’t expecting. For example, permits are required when importing textiles and footwear into Mexico. So do your research thoroughly to ensure that all required customs documentation is complete and accurate.
"It’s important that both parties are clear – in advance – who pays customs duties and taxes. "
3
Incorrectly packaged and labelled goods
When packing your items safely for international shipping, consider the materials you use to pack them. Just as with your shipment’s contents, the packaging itself needs to comply with your destination country’s regulations: for example, the U.S. requires all wood packaging to be treated to prevent the introduction and spread of pests.1
Incorrect labeling can also be a common pitfall when shipping internationally, with each country having its own requirements. In Canada, for instance, labels must be written in both French and English, to meet the needs of a bilingual country. 2
Key takeaway: Always research the packaging and labeling requirements of your destination. Include the country of origin and the presence of any hazardous materials on the label, as well as a clear address.
4
Miscommunication over payment
Almost all shipments crossing international borders are subject to duty and tax assessment, which depend on the package’s value (according to the commercial invoice), as well as the country of origin and reason for import.
Yet there can often be confusion over whether the shipper or the recipient is responsible for paying any fees that are due. And that can cause delays.
So, it’s important that both parties are clear – in advance – who pays customs duties and taxes. Incoterms are used to specify who is responsible for paying what, and these should be clearly stated on your commercial invoice.
Key takeaway: If recipients aren’t expecting to pay any extra costs before they can get hold of their delivery, it can lead to increased returns and bad customer experiences that threaten future purchases. Up-front clarity is key. You can read more about duties and taxes here.
Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example (but not limited to) a licensed attorney, law firm, accountant, or financial adviser
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