Executive summary
Customs regulations can vary countryby- country, so research the requirements for specific locations and products rather than relying on previous experience.
Monitor regulations to stay aware of any changes and understand how they could have an impact on the way your business operates.
Stay on top of import responsibilities by discussing Incoterms with suppliers and preparing necessary documentation in advance.
Navigating customs compliance is an essential – and unavoidable – part of shipping successfully. And it can sometimes feel hard to get to grips with. But it’s important not to let any confusion distract you from your business goals and ambitions.
That’s because, while international trade regulations can initially seem complex, there are a few simple steps you can take to build the knowledge you require to ship successfully across borders. Consider these three steps to lift your confidence and prepare your business.
1
Do your research
If you want to feel confident when exporting abroad, it can pay to do some pre-planning. A good place to start is to remember that you don’t need to know everything. A little knowledge can go a long way.
So, think about what you really need to know. That could involve taking it back to researching the paperwork you need – plus how to complete it correctly – and any specific requirements for your products in the country or countries you’re exporting to.
For instance, there may be differences in the way your products are treated by different customs authorities. Labelling requirements, applicable duties and taxes, product standards and documentation requirements can all differ across customs territories.
Another important thing to get right is the Harmonised System (HS) code. Similar products can all have different codes, so it’s important you choose the right one for your specific goods. And remember that some countries require different levels of information. The first six digits are generally the same for most countries. The remaining digits can vary, and often countries can require up to 10 digits.
Action plan:
Contact the customs authorities in the country you are shipping to or check for relevant information on their official websites. To find your HS codes, you can search on your country’s government website or use HS code search tools available online.
2
Stay alert
Customs regulations can change frequently, so it’s important to be aware of any updates in the markets you are shipping to or from.
New regulations can lead to anything from changes in documentation requirements to different clearance procedures or adjustments to the level of duties and taxes that are applied at the border. Mistakes can lead to delays and increased costs, so review whether any rule changes affect your shipments.
It’s also worth considering if any changes you need to make to remain compliant will have a broader impact on your business or how it operates – and if so, how to factor that into your plans.
Action plan:
Make an ongoing commitment to compliance. Put processes in place to ensure you are regularly monitoring regulations in the countries you are shipping to – whether that’s checking official government and trade association websites or working with experienced brokers or other experts. There may also be software solutions that you could put in place to help give you peace of mind.
"Mistakes can lead to delays and increased costs, so review whether any rule changes affect you shipment"
3
Don’t forget about imports
Remaining customs compliant is not just about exports. Often imports are a factor too, so it’s important to be aware of any responsibilities you may have and prepare in advance (or ensure your importer is prepared).
For example, you may need to provide certain documentation, or you could be liable for duties and taxes on imports you bring into the country. These could depend on the agreements you have with your suppliers, so it’s important to keep on top of the details to know what you may be responsible for.
Ensuring you’re fully aware of your obligations – and how they may vary as you change suppliers or the goods you import – will help keep your business running smoothly and enable you to ship with confidence into your country.
Action plan:
As an importer, it’s a good idea to contact your country’s customs authorities to check what documentation may be needed for your imports. Keep in regular contact with your suppliers and ensure you maintain a close eye on the Incoterms associated with your shipments. These set out which party is responsible for paying duties and taxes, and understanding this in advance will help you allocate necessary budget in advance and avoid unexpected costs.
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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