What is Customs Filing?
Term: Customs Filing
Customs filing is a vital element of global trade that involves brands providing the proper documentation required by customs authorities to legally move parts, components, goods, parcels, and services across international borders. There are generally three parties involved: the importing brand, a government customs agency, and a customs broker (who assists the importer with filing their documentation). Oversight is typically provided by the customs agency, whose interest is in ensuring compliance with international trade laws.
There are four steps involved in customs filing:
- Entry: This step involves filing the proper entry documentation (including shipment packing lists) at a port of entry.
- Clearance and inspection: Customs agents review the necessary documentation and decide whether to clear a shipment or hold it for further inspection. They may also perform a random check that requires additional compliance assessment.
- Duties and taxes: Customs agents assess whether you owe any duties on imported goods, which then need to be paid.
- Release: The shipment is released and given a green light to move across the border to its destination.
Brands can either choose to prepare and self-file their own customs documentation or outsource the manual tasks to a customs broker firm. As customs agencies modernize their own processes, many brands are also choosing to modernize by using automated customs filing applications.
Key benefits of customs filing
Compliance
Customs filing allows brands to move goods legally across multiple borders in compliance with international laws to minimize the risk of incurring fines, penalties, or legal issues.
Improved efficiency
Automated customs filing significantly reduces wait times at borders, supply chain operations and ensuring the timely.
