Custom Clearance
Customs clearance refers to declaring goods to customs authority when transiting in or out a country.
When you ship goods cross borders, there is a need for customs clearance.
Make clearing customs a breeze. Contact us to learn more.
Who Provides Custom Clearance Services
Custom clearance services are provided by customs brokers and freight forwarders.
Customs Brokers
Customs brokers are licensed professionals that facilitate customs clearance for both export and import of goods.
Unlike freight forwarders, the duty of a customs broker ends after customs are cleared.
Freight Forwarders
Freight forwarders serve as the intermediary between sender and receiver by shipping goods on behalf of their clients.
They are suitable for clientele seeking integration where both shipping and customs are handled for them.
Benefits Of Engaging A Custom Clearance Service
Fast and Hassle-Free
Customs clearance can be a confusing and frustrating process for the inexperienced.
That is why custom clearance providers help you navigate the complexities by reducing delivery lead time for you.
Reliable And Experienced
Customs clearance service providers are able to advise you on common mistakes to avoid.
Their knowledge and experience will certainly give you confidence and set your mind at ease.
Cost-Efficient
Benefit from cost savings by avoiding the need to spend unnecessary time and money by engaging a skilled professional.
Custom Clearance Procedure
There are many steps involved during the customs clearance procedure. These are the main steps that you will need to be aware of when going through the process.
Seek approval from external agencies
Apply for a binding ruling
Complete clearance documents
Sign a customs bond contract
Checking of shipment paperwork
Verifying of tariffs and taxes
Pay taxes and duties
Release of shipment
Still confused about customs clearance procedures? Consult our customer service team at Haulx to clarify your doubts!
How Are Custom Duties Calculated
There are four ways in which countries calculate duties:
- Ad valorem based on CIF (Cost, Insurance, & Freight) – Method for calculating import duties where the tax is calculated on the cost of the order plus the cost of freight, insurance, and seller’s commission
- Ad valorem based on FOB (Free On Board) – Method for calculating import duties where the fees are calculated only on the cost of the goods sold. FOB is not calculated on the shipping, duty, insurance, etc.
- Weight – Method for calculating import duties based on how much the goods weigh
- No Duties Assessed (Free Port) – Not necessarily a method per se, but rather when countries do not assess duties at all, i.e. imports are duty-free
Example:
Note: Applies only to duty rates. Other applicable fees may include landed cost calculation, including tax, carrier fees, and other governmental fees.
Assumptions:
- Item Cost: 100 USD
- Weight: 5 KG
- Shipping: 25 USD
| Calculation Method | Duty Formula | Equation and Result |
|---|---|---|
| Ad Valorem (10% CIF) | Duty rate * (Item Cost + Shipping Cost) | 10% * (100 USD + 25 USD)= 12.50 USD |
| Ad Valorem (10% FOB) | Duty rate * Item Cost | 10% * 100 USD = 10 USD |
| Weight-based (5 USD/kg) | Duty rate * Weight | 5 USD * 5 KG = 25 USD |
| Free | No duties applied | 0 |
NOTE!
Customs Duty Fees should not be confused with import taxes.
Import Taxes refer to the additional cost of importing products into the destination country.
For example, all imported goods in Malaysia are subjected to a Sales & Service Tax (SST) of 10%. Depending on the type of good, some are taxed at a reduced rate of 5% while others are exempted from sales tax.
Make customs clearance hassle-free
Customer Reviews
Seia has been handling our shipment for over 1 year. She is professional, attentive to details, and able to resolve any issue efficiently. No regret in engaging Haulx for our shipments, highly recommended!
Haulx is really the best service and fast response. I recommend them to anyone who is looking for a shipping service.
Nick and Wren is supporting me when i need help.
