Understand in One Article: Core Differences Between Customs Declaration and Clearance & Global Customs Clearance Key Points

In the tide of globalized trade, “customs declaration” and “customs clearance” are two frequently mentioned concepts that are easily confused. For foreign trade enterprises, cross-border e-commerce sellers, and logistics practitioners, clarifying the core boundaries between the two and mastering the practical key points of global customs clearance are crucial for avoiding trade risks and improving logistics efficiency. This article will systematically analyze the core logic of customs declaration and clearance from five dimensions—essential definitions, process differences, responsibility division, global policies, and risk response—in 3,000 words, providing comprehensive guidance for cross-border trade practitioners.

I. Core Definitions of Customs Declaration and Clearance: Essential Differences Between a Single Link and the Entire Process

(I) Customs Declaration: The “Initial Declaration” for Customs Supervision

Customs declaration refers to the legal act where the consignor/consignee of import and export goods or the entrusted customs brokerage enterprise submits detailed information about the goods (including product name, quantity, value, HS code, trade method, etc.) and relevant documents to the customs to apply for handling the formalities of goods entry and exit. Its core essence is “information declaration,” which is a preliminary link for customs to supervise goods and a legal prerequisite for goods to enter or exit the country legally.

From a legal perspective, customs declaration is a mandatory legal obligation. According to the provisions of the Customs Law of the People’s Republic of China, all import and export goods must be declared to the customs, and goods without declaration are not allowed to leave or enter the country. The core goal of customs declaration is to obtain the customs’ declaration approval, laying the foundation for the subsequent transportation and customs clearance of the goods. In practical operations, the core documents required for customs declaration include: customs declaration form, commercial invoice, packing list, trade contract, certificate of origin, import and export license (if required), etc. The accuracy of the documents directly determines whether the declaration can be approved.

(II) Customs Clearance: The “Full-Process Closed Loop” for Trade Circulation

Customs clearance refers to the entire process of operations for imported goods from their arrival at the port of the destination country to the final completion of all legal formalities and obtaining the qualification for circulation. It covers multiple key links such as declaration, inspection, tax payment, and release. Its core essence is “execution and release,” which is the closed-loop end of the customs supervision process, marking that the goods have met all compliance requirements of the importing country and can legally enter the market for circulation.

It is particularly important to clarify that the core difference between customs clearance and customs declaration lies in the “scope attribute”: customs declaration is a core sub-link in the customs clearance process, but customs clearance is by no means a simple extension of customs declaration. The complete customs clearance process includes: document exchange (obtaining the delivery order) → declaration (i.e., the customs declaration link) → customs inspection → tax payment → inspection and quarantine (if required) → customs release → cargo pickup. Compared with customs declaration, customs clearance involves more physical operations and responsibility undertaking, and special attention must be paid to the personalized policy requirements of the destination country (such as certification, quarantine, taxation, etc.).

(III) Clarification of Easily Confused Concepts: The Relationship Between Customs Clearance Completion, Customs Passage, Customs Declaration, and Customs Clearance

In cross-border trade, “customs clearance completion,” “customs passage” are often confused with customs declaration and customs clearance, so their definitions need to be clearly defined:

• Customs clearance completion: Refers to the state where the goods have completed all customs formalities and the customs has lifted supervision. The final result of import customs clearance is customs clearance completion, while export goods complete customs clearance after being released;
• Customs passage: A general term for the entire process of import and export goods from the place of departure to the destination, covering the entire chain of customs declaration, customs clearance, transportation, etc., and is a more macro concept;
• Logical relationship: Customs declaration is the starting point of customs passage, customs clearance is the core process of import customs passage, and customs clearance completion is the end state of customs passage.

II. Core Differences Between Customs Declaration and Clearance: A Comprehensive Comparison from 10 Dimensions

To present the differences between the two more intuitively, the following is a systematic comparison from 10 core dimensions such as definition, process, and subject of responsibility, helping practitioners quickly clarify the boundaries:

In-depth Analysis of Key Differences

1. Different Subjects of Responsibility and Risk Undertaking

The subject of responsibility for customs declaration is the exporter (or the entrusted customs brokerage enterprise), which is responsible for the authenticity of the declared information and the completeness of the documents. If the declaration fails due to errors in filling out the customs declaration form or improper HS code classification, the exporter faces risks such as declaration delay fees (0.05% of the goods value per day for declarations exceeding 14 days), goods detention, or return, and the progress of export tax rebates will also be affected.

The subject of responsibility for customs clearance is the importer (or the entrusted customs clearance agent), which is responsible for tax payment, compliance certification, inspection and quarantine, etc. If customs clearance is delayed due to lack of materials (such as failure to provide PVOC certification) or false declaration of value, the importer faces consequences such as port detention fees (up to several hundred US dollars per day), goods confiscation, and being included in the customs blacklist, and may even lose import qualifications in severe cases.

2. Different Time Requirements and Efficiency Impacts

Customs declaration starts earlier and has stricter time windows: sea freight goods need to complete declaration 24-48 hours before shipment, and air freight goods need to declare 12 hours in advance. Failure to declare on time will result in the goods being unable to be loaded onto the ship or aircraft. Thanks to policies such as “paperless customs clearance” and “advance declaration,” the compliant customs declaration process can usually be completed within 1-3 working days.

Customs clearance takes a longer time and has higher uncertainty, affected by multiple factors such as the policies of the destination country, inspection probability, and completeness of documents. The conventional customs clearance process takes 3-7 days. If inspection, tax disputes, or special commodities (such as food, medical equipment) are involved, the customs clearance time may be extended to 15-30 days. For example, due to cumbersome customs procedures in countries such as Brazil and India, the average customs clearance time can reach more than 20 days.

3. Different Connections with Trade Terms

Customs declaration is directly related to export trade terms (FOB, CIF, CFR). According to the International Commercial Terms (INCOTERMS 2020), under FOB, CIF, and CFR terms, the exporter is responsible for customs declaration formalities and expenses; under EXW terms, the importer is responsible for customs declaration.

Customs clearance is closely related to import trade terms: except for DDP (Delivered Duty Paid) terms where the seller is responsible for customs clearance, the buyer is responsible for customs clearance under other terms (such as EXW, FOB, DAP). This division of responsibilities directly affects the cost accounting and risk allocation of trade contracts. For example, under DDP terms, the seller needs to predict the customs clearance costs and policy risks of the destination country in advance, otherwise, it may face losses.

III. Key Points of Customs Clearance in Major Countries/Regions Around the World

The customs policies, supervision focuses, and certification requirements of different countries/regions vary significantly, which are the core difficulties in the practical operation of customs clearance. The following sorts out the customs clearance key points of 20 major trade economies around the world, providing practical guidance for cross-border practitioners:

(I) North America: Emphasis on Compliance Declaration and Security Inspection

1. United States

• Core Requirements: All imported goods must submit the Importer Security Filing (ISF Declaration, i.e., “10+2” Declaration) 24 hours in advance. Failure to submit or incorrect submission will result in a fine of 5,000-10,000 US dollars;
• Key Supervision: Food, pharmaceuticals, and cosmetics must pass FDA (Food and Drug Administration) certification; electronic products must comply with FCC certification; children’s products must obtain CPSIA certification;
• Tax Policy: Customs duty rates are determined based on HS codes, with an average rate of approximately 3.4%. Anti-dumping duties may be imposed on some commodities (such as steel and aluminum products);
• Inspection Characteristics: The random inspection rate is about 10%-15%. The inspection probability of goods with a declared value exceeding 2,500 US dollars increases significantly. False declaration of value will result in goods confiscation and fines.

2. Canada

• Core Requirements: The importer’s BN (Business Number) or tax identification number must be provided; import licenses must be additionally provided for agricultural products and pharmaceuticals;
• Tax Policy: The federal GST rate is 5%, and each province levies HST (Harmonized Sales Tax) with rates ranging from 8% to 15% (e.g., 13% in Ontario). Tax exemptions can be applied for some people’s livelihood commodities;
• Special Requirements: Health and safety certificates must be provided for food and cosmetics; wooden packaging must comply with the ISPM 15 quarantine standards.

(II) Europe: Strict Compliance Certification and Environmental Requirements

1. European Union (27 Countries)

• Core Requirements: All import enterprises must have an EORI number (EU Unified Declaration Number); products must comply with CE certification (such as electronic products and mechanical equipment); chemicals must comply with the REACH Regulation;
• Tax Policy: The average customs duty rate is approximately 5.1%, and the value-added tax (VAT) rate ranges from 15% to 27% (e.g., 19% in Germany, 20% in France). Starting from 2025, an environmental tax of 0.8 euros per kilogram will be levied on plastic packaging;
• Special Requirements: VAT must be paid for cross-border e-commerce goods with a value exceeding 150 euros; food must pass the inspection of EFSA (European Food Safety Authority); products containing batteries must comply with UN38.3 certification.

2. United Kingdom (Independent Customs System After Brexit)

• Core Requirements: A separate GB EORI number must be applied for; imported goods must be declared 24 hours before arrival at the port;
• Tax Policy: Customs duties are partially consistent with those of the EU; the standard VAT rate is 20%, and the reduced rate is 5%;
• Inspection Characteristics: The inspection rate for textiles and electronic products exported from China is relatively high, and special attention must be paid to ensuring that the declared information is consistent with the actual goods.

(III) Asia: Strict Quarantine and Detailed Document Requirements

1. Japan

• Core Requirements: Food must pass the hygiene inspection of the Ministry of Health, Labour and Welfare; labels must be marked in Japanese (including ingredients, origin, shelf life, manufacturer information);
• Certification Requirements: Import licenses from the Ministry of Health, Labour and Welfare must be obtained for pharmaceuticals and cosmetics; electronic products must obtain PSE certification;
• Tax Policy: The average customs duty rate is approximately 2.5%, and the VAT rate is 10%. Higher customs duties are imposed on some agricultural products (such as rice);
• Special Requirements: Wooden packaging must undergo heat treatment and be marked with the IPPC logo to avoid carrying harmful organisms.

2. South Korea

• Core Requirements: Detailed commercial invoices (indicating FOB price, freight, insurance premium) must be provided for imported goods; import licenses must be handled in advance for sensitive commodities;
• Inspection Characteristics: Strict verification is conducted on goods with a declared value lower than the market price, and price certification documents (such as transaction records of similar commodities) must be provided;
• Tax Policy: The average customs duty rate is approximately 4.2%, and the VAT rate is 10%. Special consumption taxes are imposed on some luxury goods.

3. India

• Core Requirements: 100% advance payment is recommended to avoid customs clearance delays due to payment issues;
• Declaration Requirements: Extremely strict requirements are imposed on the declaration of goods value. False declaration or under-declaration of value will result in high fines and goods detention;
• Certification Requirements: Electronic products must obtain BIS certification; food must obtain FSSAI certification; medical equipment must obtain CDSCO certification;
• Special Requirements: The importer’s PAN number (Permanent Account Number) must be displayed on the bill of lading, otherwise, customs clearance cannot be conducted.

(IV) South America, Africa, and Other Regions: Special Policies and High Risks

1. Brazil

• Core Requirements: All imported goods must provide compliant invoices (in Portuguese); the bill of lading must indicate transportation costs (priced in US dollars or euros);
• Certification Requirements: Electronic products and medical equipment must be registered and certified with INMETRO (National Institute of Metrology, Quality and Technology);
• Tax Policy: The average customs duty rate is approximately 13.5%, and the VAT rate ranges from 17% to 25% (varying by state). The tax calculation is complex;
• Customs Clearance Characteristics: The process is cumbersome and time-consuming (average 10-15 days). It is recommended to choose the “door-to-door double clearance” service.

2. Kenya

• Core Requirements: All goods must obtain PVOC certification (certification from KEBS – Kenya Bureau of Standards). Goods without certification will be directly refused entry;
• Insurance Requirements: Insurance must be purchased through local insurance companies in Kenya; overseas insurance policies are not recognized;
• Special Requirements: The bill of lading must list the names of the goods in detail, and general terms cannot be used, otherwise, the goods may be detained.

3. Russia (Within the Framework of the Eurasian Economic Union)

• Core Requirements: Goods must comply with the standards of the EAEU (Eurasian Economic Union); additional testing is required for food and pharmaceuticals;
• Payment Requirements: It is recommended to pay more than 75% of the payment. Failure to pay in a timely manner may result in goods detention;
• Risk Reminder: Avoid “gray customs clearance” (evading formal procedures). There have been cases where the Cherkizovsky Market was closed and goods were confiscated due to gray customs clearance.

IV. Practical Processes of Customs Declaration and Clearance: A Full-Chain Guide from Declaration to Release

(I) Standard Process of Customs Declaration (Export Side)

1. Document Preparation: Organize core documents such as commercial invoices, packing lists, contracts, certificates of origin, and customs declaration forms, and ensure the consistency of information (e.g., product name, quantity, HS code must match the actual goods);
2. HS Code Classification: Determine the goods code according to the Harmonized Commodity Description and Coding System (HS Code). Accurate classification is required to avoid obstacles to tax rebates or fines due to incorrect coding (e.g., misclassifying “Bluetooth headsets” as “ordinary headsets” will affect the tax rebate ratio);
3. Electronic Declaration: Submit the customs declaration form and relevant documents through the “Single Window” system (the official platform of China Customs) for automatic or manual review by the system;
4. Customs Inspection (If Required): The customs conducts random inspections or targeted inspections (for sensitive goods, high-value goods, etc.). The inspection content includes whether the documents are consistent with the actual goods and whether there are prohibited goods;
5. Tax Handling (Export): Most commodities are exempt from export duties, while export duties must be paid for some resource-based commodities (such as rare earths). After completion, the tax rebate copy of the Export Goods Customs Declaration Form is obtained;
6. Customs Release: After passing the review, the customs issues a release notice, and the goods can be loaded onto the ship or aircraft for departure.

(II) Standard Process of Customs Clearance (Import Side)

1. Document Exchange: The consignee or agent obtains the delivery order (D/O) from the shipping company or airline with the bill of lading, which serves as the certificate for cargo pickup;
2. Declaration (Customs Declaration Link): Submit the customs declaration form, commercial invoice, packing list, certificate of origin, import license, and other documents to the customs of the importing country to complete the electronic declaration;
3. Customs Review and Inspection: The customs reviews the authenticity and completeness