Who is who
Four parties take part in a clearance and it is worth not mixing them up. The exporter is you: whoever sells and owns the goods. The customs broker or customs representative files the declaration for you. The freight forwarder organises transport and usually hires the broker. And customs decides.
Representation can be direct — the broker declares in your name and on your behalf — or indirect, where they declare in their own name and are jointly liable with you. On exports the usual arrangement is direct, which means responsibility for the data remains yours.
What happens, step by step
- You hand over the documentationInvoice, packing list, tariff heading, value, transport details and whatever your goods require. The more complete it is, the fewer the questions.
- The broker files the declarationElectronically. The system validates the data and, if everything fits, accepts the declaration and assigns it an MRN, which is the number the transaction is tracked by.
- Customs assigns a channelGreen, orange or red. It is decided by an automatic risk analysis that cross-checks operator, goods, destination and history. It is not chosen, but a coherent file reduces the probability.
- The channel is resolvedGreen: nothing to do. Orange: customs reviews the documents and may ask for more. Red: physical inspection, with the goods made available and handling costs borne by whoever holds them.
- ReleaseCustoms authorises the goods to move. From here on they can be loaded and leave.
- Exit confirmationWhen the goods leave the territory of the Union, the customs office of exit confirms it. That is the document that justifies the VAT exemption and it has to be asked for.
The channels
| Channel | What it means | How long it usually takes |
|---|---|---|
| Green | Automatic release, no review | Minutes |
| Orange | Documentary review: customs reads your papers | From hours to a day |
| Red | Physical inspection of the goods | From one to several days, with handling costs |
The timings are indicative and depend on the office, the day and the workload. What is constant: a coherent file resolves faster in any of the three.
What drags a clearance out
- Sending the documentation in piecesThe broker does not file until they have everything. Every round-trip email is half a working day.
- Commercial descriptions on the invoiceIf customs cannot relate what the paper says to the heading declared, they ask. And asking is an orange channel.
- An undivided value under Incoterms that include freightCustoms needs to know which part is goods and which is transport in order to check the customs value.
- Licences or certificates that arrive laterIf your heading requires a certificate, the declaration is not accepted without it. That process starts weeks ahead, not on loading day.