For most people, DIY is the most prudent way to get things done. But while it’s generally a good idea for home improvement projects and the like, there are some undertakings that should be left to trained professionals. Amongst importers, one such undertaking is securing Customs Clearance.
An essential stage in the importation procedure, Customs Clearance can be highly complicated, fraught with a web of conditions, categorisations and regulations that can leave the best mind in a spin. So, unless you are an expert in the area, the chances of making a costly error are extremely high.
International Cargo Express Managing Director Ronald Spahr understands every business wants to keep their expenses low, but he warns that taking on the task themselves doesn’t always pay.
“Everyone can take care of their Customs Clearance paperwork themselves if they like, but it’s discouraged by the Customs Service,” he explains. “They make it very difficult so it’s likely to take all day to do it and, in the end, errors will be made. It’s like doing tax. Everyone can do their own tax return, but do they do it as well as an accountant?”
The Australian Customs Service points out that correctly filling out the required paperwork lies firmly on the shoulders of the importer and that “penalties may be imposed for the submission of incorrect or misleading information”.
Where The Complexities Lie
Trade agreements between Australia and the EU can be different to those agreed with the US, ASEAN bloc countries, or individual nations, like Chile or Malaysia. These agreements have a significant influence over the tariffs that are charged.
The category that product types fall into is also influential. For example, the percentage alcohol content in one imported spirit may mean it is put into a different category to other drinks. Tariffs are then linked directly to these categories.
These are just two of many examples that affect the import duty charged, but the chief complexity is created by the regular series of amendments applied as the Australian government negotiates new trade agreements with existing and first-time trading partners. Simply staying on top of these amendments is a full-time job.
The Advantage of Using Professionals
In order to make sure the customs process does not delay delivery, cargo needs to be pre-cleared before arriving at its destination port. But getting Customs Clearance finished in advance is only part of the advantage of leaving it to the experts. They will also know where loopholes might exist.
The entire customs tariff is extremely intricate, and a good customs expert will be familiar enough to know quickly how to get the lowest tariff for the importer. Certain items can be declared differently to what an individual might declare it as. For example, screws can be left-threaded or right-threaded but one might be duty free, the other might not. The customs expert can declare it as the most beneficial for the importer.
To Ronald Spahr, hiring a professional to deal with customs issues is the only logical option for any importer, and providing such expertise is essential for a modern freight forwarder.
“Customs Clearance is a hugely important aspect of the entire importation process, and that’s why we have invested in it,” he explains. “We have five highly paid and highly experienced customs experts working for us in-house. You will also find a lot of forwarders these days outsourcing that service, but we don’t because having our own experts means we can offer our customers the best possible advice.”
Contact Your ICE Team
International Cargo Express has a long history of providing accurate customs advice that saves its customers time and money. With a team of dedicated customs experts looking after your customs concerns, our customs and barrier clearance services cover everything from documentation preparation to electronic duties payment.
If you’re interested in finding out more about what we can do for you, call your nearest ICE team, or read more more information on complying with customs requirements.
