As a cross-border seller, you’re undoubtedly familiar with the term “customs clearance.” It refers to the customs inspection, taxation, and release process that goods must undergo when entering another country from one country. But have you ever encountered a situation where your goods, even though they’ve been shown as “cleared” in the destination country, still have to wait a long time for delivery? This is likely because your goods have undergone “double customs clearance.”
I. A Brief Understanding: What is Double Customs Clearance?
Double customs clearance, as the name suggests, means that goods must complete two separate customs clearance procedures.
This typically occurs when the shipment route involves a transit country (or region). The overall process is generally as follows:
First customs clearance (in the transit country): Goods shipped from China first arrive at a transit location (for example, Hong Kong, Singapore, the Netherlands, or the United Arab Emirates). Here, the goods must complete export transit customs clearance to legally unload, store, and then be reloaded onto the next flight or vessel.
Second Customs Clearance (in the Destination Country): When goods arrive at their final destination (e.g., the United States, Germany, Brazil, etc.) from the transit country, they must undergo another round of import customs clearance in the destination country. This is the customs clearance you’re most familiar with, and the destination country’s tariffs and VAT are also payable.
A vivid analogy:
Imagine international logistics like a long-haul flight. If you’re flying from Beijing to New York, but connecting in Tokyo:
First Customs Clearance: Just like at Tokyo Airport, you’ll need to disembark and pass through the transfer lane (equivalent to customs inspection in the transit country) before boarding your flight to New York.
Second Customs Clearance: Upon arrival at New York’s JFK Airport, you’ll need to clear immigration, collect your baggage, and pass through US customs (equivalent to customs clearance in the destination country).
If you don’t complete “transfer clearance” in Tokyo, you won’t be able to board your next flight.
II. Why Does Double Customs Clearance Occur? Common Transportation Routes
Double customs clearance isn’t a deliberate attempt to complicate the process; it’s based on the following common logistics scenarios:
Transiting through a free trade port/hub:
A typical example: Hong Kong, China. Hong Kong is a free trade port, offering virtually zero tariffs on goods entering and leaving the country, and boasts an efficient logistics system. Many freight forwarders will first ship goods to Hong Kong for consolidation, less-than-container load (LCL), or transfer to larger cargo planes/ships before shipping globally. This process requires export transit customs clearance in Hong Kong.
Other examples include Singapore, Dubai (UAE), and Rotterdam (Netherlands).
Specific logistics services, such as the “China-US dedicated line”:
Many so-called “dedicated line” services may utilize fixed transit routes to reduce costs and improve efficiency. For example, a “China-US dedicated line” might regularly ship from Shenzhen to the United States via Hong Kong Airport. Therefore, “Hong Kong export customs clearance” is a necessary step.
Less-than-Container Load (LCL) shipping:
If your shipment does not fit within a full container, you need to combine it with other sellers’ goods into a single container. Freight forwarders will typically first ship all goods to a warehouse in a transit port for consolidation, which naturally requires customs clearance at the transit port.
III. The Impact of Double Customs Clearance on Sellers (Pros and Cons Analysis)
Advantages:
Potential Cost Reductions: By using large hubs for transit, freight forwarders can consolidate resources and obtain better freight rates. These cost savings may be reflected in your quote.
Improved Logistics Efficiency: Hub airports/ports with frequent flights/ships help goods connect to their next leg more quickly, eliminating the need to wait for direct flights in the country of origin.
Flexibility: At the transit port, freight forwarders can sometimes handle special requirements such as relabeling and packaging changes.
Risks and Challenges to Be Aware of:
Double Customs Clearance Risk: Customs offices in two countries (regions) represent two potential checkpoints. Documentation issues, discrepancies in product descriptions, or inaccurate value declarations at any point can result in customs clearance delays, fines, or even cargo seizures.
Lack of Transparency in Logistics Information: If you’re unaware that your freight forwarder is using a double customs clearance route, you might assume your shipment is ready for delivery when the tracking information shows “Customs Cleared at Destination.” However, in reality, this “destination” may refer to a transit country (such as Hong Kong), and the goods have only just begun their journey to the actual destination. This can lead to misjudgment of logistics timelines and miscommunication with customers.
Increased overall timeline uncertainty: Double customs clearance means the total processing time may be longer, especially when customs inspections in the transit country are busy.
IV. Key Action Guidelines for Sellers
Now that you understand double customs clearance, how can you address it to ensure smooth business?
Proactively ask your freight forwarder:
Before shipping, ask your freight forwarder directly, “Does this route involve transit? Does double customs clearance require?”
Clarify the transit point so you understand the entire logistics chain.
Carefully review logistics tracking information:
Learn to interpret logistics status. If you see a status such as “Customs Released” or “Import Clearance” in a city other than the destination (such as HKG, SIN, or Amsterdam), it means the first customs clearance is in progress.
Don’t relax when you see “Customs Clearance Completed”; be sure to understand the location where it is occurring.
Ensure that customs documents are complete and accurate:
Due to the increased number of customs clearances, the commercial invoices, packing lists, and other documents you provide must be absolutely accurate. Information such as product names, HS codes, quantities, and values must be consistent to avoid errors at any stage.
It is recommended to work with a professional freight forwarder who has extensive experience with customs clearance requirements in transit countries.
Incorporate customs clearance time into logistics delivery expectations:
When setting an Estimated Time of Delivery (EST) for customers and managing your own inventory, be sure to allow for additional time for “double customs clearance” (an extra 2-5 days is common).
Purchase freight insurance:
The more customs clearance steps involved, the higher the potential risk. Purchasing insurance for high-value shipments is an effective way to mitigate risk.
In summary: Double customs clearance is a common and reasonable practice in cross-border logistics and is not inherently alarming. What is alarming is sellers being completely unaware of it.
The key lies in “information” and “communication.” As long as you understand the shipping route in advance from your freight forwarder, prepare your documentation, and anticipate your future, double customs clearance can become a stable and reliable logistics option for your cross-border business, and may even help you save costs.
We hope this guide will help you better navigate the complexities of cross-border logistics and ensure a smoother shipping experience for your goods!