Customs Business Etiquette

Everything you need to know about customs business etiquette

At Bring, we have professional customs advisers who can help you with dealing with your customs. Here are 10 tips for you who want to succeed with your cross-border trade.

Customs controlling a Bring truck

1. Plan the movement of your goods. Get help from people with customs expertise

Customs clearance ensures that the goods can be legally dispatched internationally, while levying charges properly and meeting the increasingly restrictive safety requirements. If the preliminary work, customs clearance and post-work are carried out smartly, the administrative burden does not have to be great. Without planning, however...  

If you have any questions, get in touch with our competent customs advisers. They will be happy to help you if you need customs advice! 

2. Be sure to classify your items correctly

All correct customs clearance requires a detailed description of your product. Rules for customs processing and tariff rates are based on a customs tariff code, so it pays to have this ready. A customs tariff code is an 8- or 10-digit number (NO=8, EU=10) that describes the product in detail in accordance with the international HS code order. 

In addition to this classification, it is also important to have the country of origin ready. With the correct country of origin, it is possible to obtain a reduced customs duty. In some cases, this requires a binding classification decision from the customs authority. 

It is important to provide correct information, as incorrect information can give rise to penalties from the authorities concerned. 

3. Determine the goods’ customs value 

The customs value is the basis for the fee. On the basis of this calculation, the customs value is the same as the price determined for the transaction of the product. It may be difficult at times to state the goods’ customs value, e.g., if it is not a purchase between two independent parties. In such a situation it is important to be aware of alternative methods for determining the customs value.  

4. Apply for permits and simplifications 

Some countries and goods require additional permission from the authorities to export or import. The application for permits and simplifications may apply to you as a trader or a goods owner. 

In addition, you can apply for customs reductions if you trade in goods and countries that have agreements with the free trade agreement. Investigate the requirements and opportunities because it is possible to save money here.  

The EU and the customs authorities provide good information about requirements and opportunities.

5. Apply for a customs credit if you trade in customs-liable goods 

With customs credit, the person who imposes customs duties on you can charge your credit with the authority instead of your representative having to pay your customs costs. This will save you any expense commission. 

You report import VAT to the tax authority, so customs credit is not relevant if you import goods that are not subject to customs duties.  

Every country follows its own rules for calculation, reporting and payment of import charges. We happy to help you get the right information about what applies to your particular shipment. 

Read more about our customs advice service here

6. Create a good digital customs invoice 

The customs invoice describes what is to be cleared by customs. Remember to include information about sellers, buyers, the goods and delivery terms. 

We recommend that you transfer the information digitally to your forwarder. It's good to send customs invoices in the form of EDI files, Excel files, generated PDFs or similar formats. Then you will potentially receive a more reasonable customs price and experience faster processing, and you can be sure that your information is used in the same format with the authority.

7. Acquire a digital customs archive for all your customs clearences

Piles of invoices and customs clearance documents have previously been found on the desks of exporters/importers with customs officers. Nowadays, more people have discovered the benefit of having a digital archive for customs declarations and associated documentation. More freight forwarders are offering digital archives for storing documents.

Our digital customs archive solution is called Bring E-Doc and can help you to archive and keep an overview of the customs documents from all freight forwarders. You can easily analyse international trade, report correct fees and check that everything is in order. This means that you do not need to be concerned about a possible audit.  

A digital customs archive solution is a separate platform for fast and efficient document management. Whether you are in the office, at home, or on the road, you have immediate access.

8. Report if something is wrong - there is no shame in recalculating

In a customs process, errors can always occur. There may be an error in the documentation, the agreed goods were not sent, or there is an error in the declaration that has been sent electronically to the customs authority. 

Our advice is that you react to errors as soon as you discover them, so the customs clearance is correct. If errors are discovered, the case must be reconsidered. If this is not done, penalties may be imposed if it comes to the attention of the authority.  

Contact the person who carried out the customs clearance. It is usually a relatively simple thing to correct. It can be more costly to not say anything. 

9. Calculate import VAT, reports and pay

Import VAT must be paid for imported goods every other month and reported to the Tax Agency. However, the road to correctly reported and paid import VAT can be complicated if your company lacks an overview and does not know the methodology for calculating import VAT.

Bring E-Doc supports you with this, so you can save time and can also be confident that the reporting is correct. 

10. Remember to get the fees back for returned goods 

When you return goods internationally, in most cases you will be able to apply for a refund of fees paid. This does not happen automatically; it requires a reassessment of the import customs clearance and an export customs clearance with reference to the original import. To implement this, your customs agent is dependent on a clear link between the original import and the re-export. If this is available, you can apply for a refund, which means that you only pay fees for the goods that are permanently exported. 

Do you want to know more?

We are happy to assist you with all rules and procedures regarding refunds and returns. Contact our customs advisers today!