What is “Double Customs Clearance”? A 3-Minute Guide to Understanding the “Customs Clearance Code” of Import and Export Trade

In the vast ocean of international trade, transporting goods from one country to another is far more than a simple “ship and receive” process. The most critical and complex step is customs clearance. When you hear the term “double customs clearance,” it implies that someone has provided you with a “one-stop” customs clearance solution.

So, what exactly is “double customs clearance”? How does it simplify import and export trade? Today, we’ll decipher this “customs clearance code” in 3 minutes.

  1. What exactly is “double customs clearance”?
    Simply put, double customs clearance means a logistics service provider (usually a freight forwarder) handles both the customs clearance process for goods in both the exporting and importing countries, and also arranges transportation throughout the journey.

Think of it like a cross-border trip:

Regular customs clearance: It’s like traveling independently. You need to handle your own exit procedures (export customs declaration) in your home country. Once you arrive at your destination, you also need to handle your own entry procedures (import customs declaration), and you also have to worry about transportation in between. Double customs clearance: It’s like signing up for an all-inclusive tour package. The travel agency will help you with your passport and visa (export customs clearance), arrange your airfare (international transportation), and ensure smooth entry upon landing (import customs clearance). All you have to do is “pick up your luggage” at your destination airport.

In trade terminology, “double customs clearance” is often expressed as “DDP” – Delivered Duty Paid. This means the seller (or designated freight forwarder) is responsible for shipping the goods to the buyer’s designated destination, bearing all costs and risks (including all taxes and transportation fees associated with double customs clearance).

II. What exactly does “double customs clearance” involve?
The core of “double customs clearance” lies in the customs clearance procedures of both countries, each with its own focus:

  1. Customs clearance in the exporting country (export customs declaration)
    This serves as the “factory permit” for goods to leave China. It primarily involves:

Submitting documents: Submitting contracts, invoices, packing lists, customs declarations, and other documents to Chinese Customs.

Declaration and inspection: Customs inspects the goods in accordance with the law to ensure that they match the documents.

Tax Refund Processing: For eligible export goods, export tax refund procedures are completed.

Departure Release: After all compliance procedures are met, customs clearance is granted and the goods can be loaded onto the vessel/machine and depart the port.

Key Points: This step primarily ensures that the goods are legally exported and comply with Chinese laws and regulations.

  1. Customs Clearance in the Importing Country (Import Declaration)
    This is the “entry ticket” for goods to enter the destination country. The process is more complex and primarily involves:

Document Submission: Submit import documents to the destination country’s customs (requirements vary, such as the US ISF and the EU ENS).

Duty and Tax Payment: Calculate and pay customs duties, VAT, etc. according to the destination country’s tariff schedule.

Addressing Trade Barriers: Dealing with special tariff issues such as anti-dumping and countervailing duties.

Compliance with Local Standards: Ensure that goods meet local safety, hygiene, and environmental standards (such as CE and FDA certification).

Release for Collection: After all formalities are completed and taxes are paid, customs clearance is granted and the goods can enter the destination country’s market.

Key Points: This step is the most challenging part of “double customs clearance,” as it requires the service provider to be well-versed in the destination country’s customs policies, tax systems, and commodity access requirements.

  1. Why is “double customs clearance” so popular?

For importers (buyers), choosing “double customs clearance” services offers three core advantages:

Easy to manage and transfer risk: No need to research complex and ever-changing foreign customs policies; outsource all the tedious tasks to a professional freight forwarder, who will handle all issues and emergencies.

Controllable costs and avoid surprises: This typically uses a “fixed price” all-inclusive model. Importers lock in total costs at the outset of the transaction, avoiding unforeseen expenses such as high taxes, warehouse rent, and fines in the destination country.

Improved efficiency and accelerated turnover: Professional freight forwarders can leverage their experience and connections to expedite the customs clearance process, allowing goods to reach warehouses or markets faster and accelerating capital turnover.

  1. What should I pay attention to when choosing “double customs clearance” services?
    While “double customs clearance” is convenient, choosing a service provider requires careful consideration:

Confirm the scope of services: Make sure the quote includes all taxes (tariffs, VAT), transportation fees, and port charges to avoid incurring additional costs later.

Investigate the destination’s capabilities: Ensure the freight forwarder has reliable partners or branches in the destination country who can effectively handle local customs clearance.

Goods compliance is a prerequisite: Sellers must ensure that the goods themselves (name, materials, intended use, etc.) comply with the destination country’s import regulations and provide accurate and truthful information. Any concealment or misinformation may result in customs clearance failure.

Summary
“Double customs clearance” is a “customs clearance manager” and “all-round guide” for import and export trade. It seamlessly connects the two independent and complex processes of export and import, providing significant convenience and security for both buyers and sellers, especially importers.

Understanding this “customs clearance code” will help you navigate the global market with greater ease, whether shopping on cross-border e-commerce platforms or engaging in traditional foreign trade, ensuring a smooth and seamless cross-border journey for your goods!

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