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.
Benefits Of Engaging A Custom Clearance Service
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.
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
Note: Applies only to duty rates. Other applicable fees may include landed cost calculation, including tax, carrier fees, and other governmental fees.
- 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|
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.