What is Export Customs Clearance?

Each independent state has its own customs territory.

Every product, entering or leaving the customs territory of a specific country has to be subjected to customs procedures in accordance with the customs legislation of that country.

These procedures are also known as customs clearance.

If the customs clearance is carried out at the export stage, it is called export customs clearance.

Just on the other hand, if the customs clearance is carried out at the import stage, it is called import customs clearance.

Definition: Export customs clearance defines all the procedures and formalities that must be followed in order to export a particular good from an exporting country including but not limited to obtaining any export licence or other official authorization and carry out all customs formalities necessary for the export of the goods.


Understanding Export Customs Clearance Basics?


Export customs clearance procedures vary from product to product and country to country.

At present, as most of the countries apply export-oriented growth strategies, there is no customs tax is applied to the goods at export stage, except for rare instances.

Although export is an economic activity encouraged by states, exporters need to pay attention to restrictions and prohibitions on exports of certain substances.

For example, many countries have forbidden the export of historical artifacts in their countries.

Similarly, when exporting weapons and ammunition, it is necessary to obtain export permissions or export licenses from the competent authorities of the exporting countries.

How to Complete Export Customs Clearance?


As I have mentioned above export customs clearance procedures change from country to country and product to product.

But in general, the work flow of a basic export clearance process should be like below.

  1. Completing the production of the products, packing the goods and make them ready for export 
  2. Shipping Organization (container booking, etc.)
  3. Transport of the container by domestic carriage to the factory from where the goods will be loaded or delivery of the goods to the carrier's warehouse or delivery of the goods to the port of loading 
  4. Preparation of required documents in accordance with the exporting country's legislation 
  5. Customs declaration of the shipment via accepted channel
  6. Inspection of the documents and/or goods, if necessary, by the customs offices of the exporting country
  7. Departure of the goods from exporting country's customs territory.
  8. Closure of export customs declaration.

Who Should Make Export Customs Clearance?


According to Incoterms 2010 rules, the seller must obtain, at its own risk and expense, any export licence or other official authorization and carry out all customs formalities necessary for the export of the goods under all trade terms except Ex Works.
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