In import-export activities, customs procedure quotation is one of the extremely important factors that help businesses estimate costs and optimize profits. However, in many cases, the customs declaration fee is not fixed but is influenced and affected by many different factors. Among them, the most influential factors include the type of import-export, documentation, and the method of transportation. Today, let us join HNT Shipping in analyzing in detail 5 important criteria affecting customs declaration costs to have the most optimal plan for your business's goods!
5 factors affecting customs procedure quotation
Type of import-export – The factor determining the complexity when performing procedures
Each type of import-export will have its own requirements and different procedures, thus leading to differences in customs declaration costs. For example, for businesses performing normal commercial import-export, the customs clearance process is relatively fast and simple, just submitting a set of documents and completing tax declaration. Conversely, if it is processing goods or manufacturing goods for export, the business needs to declare material norms and prove the production process to enjoy tax incentives.
Another case is temporary import – re-export, which means imported goods are only for processing, repair, or display before being exported. This requires the business to commit to re-exporting within the specified time; otherwise, it will be subject to import tax like commercial goods. Therefore, depending on the type of import-export, the customs procedure quotation will be different.
Each type of import-export will have its own requirements and different procedures, thus leading to differences in customs declaration costs
Import-export documentation – the factor determining customs clearance speed
One of the reasons causing costs for making dossiers and customs procedures to soar is the lack of or many violations and errors in the import-export documentation. A standard set of documents usually includes a sales contract, packing list, commercial invoice, bill of lading, and customs declaration. With a set of export documents that is not complete, the business may have to face the situation of being requested to supplement documents, extending customs clearance time, and incurring warehouse and storage costs. Not to mention that it also affects the quality of the product, especially agricultural products.
Some specific types of goods such as cosmetics, food, or machinery need to provide full additional quality inspection certificates, import licenses, or documents in import-export according to separate regulations. If your business has never done this or is not proficient in this matter, it is mandatory to hire a professional outside customs declaration unit to minimize risks and save unnecessary costs.
Some special items such as food, must provide full additional quality inspection certificates, import licenses, or documents in import-export according to separate regulations.
HS code and goods management policy – factors affecting tax and inspection
Accurately determining the HS Code of goods helps businesses estimate the tax amount to be paid, while avoiding the risk of tax collection or inspection at the port. Some items may be subject to specialized inspection or require additional export documents such as Certificate of Origin (C/O), phytosanitary certificate, food safety certificate...
If a business imports functional foods but declares the wrong HS Code, the customs authority has the right to request a re-inspection of the entire shipment, causing delays in the customs clearance process. The business not only loses additional inspection costs but also risks administrative penalties. Or even refused customs clearance if not providing valid documents in time.
Transportation method and procedure location – factors determining speed and cost
Customs procedure quotation also affects the method of transporting goods. If the business chooses to transport by air, the customs declaration process can be carried out faster, which means the cost will be higher compared to sea freight charges normal. Conversely, with shipments transported by road, the declaration procedure will depend on the regulations of each border gate, although the time may be longer if encountering problems with document inspection or traffic congestion.
In addition, the location for performing procedures is also one of the factors you need to consider more than ever. At large ports in Vietnam such as Cat Lai, Hai Phong, the volume of goods is extremely large, and customs declaration can take much more time compared to smaller ports. This can increase storage costs if the business does not have a reasonable clearance plan.
Transportation method and procedure location are also factors determining the speed and cost of import-export
Required completion time – the factor determining priority level when declaring
It is not always the case that the business's orders or shipments have enough time to complete customs procedures according to the normal process. In cases requiring special customs clearance, shortening the customs clearance time as much as possible to meet production or delivery progress, businesses are required to pay additional costs to be prioritized for handling dossiers outside office hours. This aims to speed up the inspection process or support customs clearance at the border gate more smoothly and quickly.
For example, if a shipment of imported raw materials is delayed, the production unit may be stalled, leading to great losses. In that case, hiring a professional external customs service unit, such as HNT Shipping, will help businesses ensure progress and minimize risks.
In some special cases, if you cannot handle it in time, hire a professional external customs service unit
HNT Shipping – the optimal solution for customs procedure quotation
Clearly understanding the factors affecting customs procedure quotation will bring many benefits to businesses, helping them have better plans when importing and exporting goods. To save time and costs, let HNT Shipping accompany you in all customs procedures. Contact HNT Shipping today!
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