Customs clearance and restrictions: a guide to smoother international shipping

In today's globalized economy, international shipping plays a crucial role in connecting businesses with customers worldwide. However, navigating the complexities of customs clearance can be a challenging endeavor, with various regulations, procedures, and potential delays to consider.

A smooth and efficient customs clearance process is vital for minimizing delays, reducing costs, and ensuring a positive shipping experience. This guide provides a comprehensive overview of the customs clearance process in India, including key entry types, strategies for avoiding delays, and how DHL Express can assist you in navigating this critical aspect of international trade to avoid customs delays.

Ensure your shipment is customs clearance ready

When a shipment crosses international borders, customs officials meticulously review the accompanying paperwork and shipment contents to ensure adherence to all applicable rules and regulations. This process, known as customs clearance, is essential for maintaining compliance with import and export laws, safeguarding national security, and collecting revenue.

The importance of customs clearance cannot be overstated. Delays can lead to substantial financial losses for businesses, damage to their reputation, and disruption to their supply chains. A thorough understanding of the customs clearance process in India and meticulous adherence to the necessary regulations are paramount for ensuring smooth and efficient international shipping.

Key customs entry types

The specific customs clearance process employed varies depending on several factors, including the value of the goods, the type of commodity being shipped, and the designated entry type. Familiarizing yourself with the different customs entry types can help you prepare the necessary documentation and mitigate potential delays.

De Minimis entry

De Minimis entry applies to shipments with a value below a certain threshold, referred to as the de minimis value. These shipments are often eligible for consolidated pre-clearance using manifest data as they are considered low-risk. For instance, small e-commerce packages ordered directly by an individual buyer or gifts sent between individuals often qualify for de minimis entry, streamlining the customs clearance process and reducing associated costs.

Informal entry

Informal entry is typically used for low-value commercial shipments or personal effects. It involves a less complex process than formal entry, with fewer documentation requirements. Small and Medium Enterprises (SMEs) often utilize informal entry for importing bulk but low-value goods, such as raw materials or components, where the streamlined process can save time and resources. For shipments handled by DHL Express, informal entry type clears customs as part of an informal manifest clearance managed under a DHL bond. Duty payment may be required depending upon the classification.

Formal entry

Formal entry is required for high-value shipments or goods that are subject to specific regulations or controls. This includes items like electronics, pharmaceuticals, and hazardous materials. Formal entry involves a more comprehensive customs clearance process, with detailed documentation and potential inspections, to ensure compliance with stricter import regulations. Shipments are held for separate Automated Broker Interface (ABI) entry. Duty and Merchandise Processing Fee (MPF) payment is required.

Avoiding customs delays

Minimizing delays in customs is a top priority for businesses engaged in international shipping. Such delays can disrupt supply chains, negatively impact customer satisfaction, and lead to financial losses.

Here is a checklist of some practical strategies to ensure smooth and efficient customs clearance, and even expedite customs clearance of import shipments:

• Provide all necessary documentation: Provide all necessary documents, including the commercial invoice, packing list, and any required permits or licenses. List each commodity separately and ensure all information is accurate, consistent, and clearly presented. Provide as much detailed information as possible.
• Check for consistency and accuracy across all documents: Common document errors include incorrect Harmonized System (HS) codes, mismatched values, and missing information, which can lead to delays and additional scrutiny by customs officials.
• Use proper packaging and labeling: Package your goods securely and label them clearly with all necessary information, including the sender's and recipient's addresses, contents of the shipment, and any special handling instructions.
• Ensure compliance with regulations: Ensure your shipment complies with all relevant import and export regulations including restrictions on prohibited items for international shipping. Shippers can utilize resources like DHL's My Global Trade Services (MyGTS) to stay informed about country-specific regulations.
• Leverage DHL Express’ pre-clearance services: DHL Express offers pre-clearance services that can help identify potential customs issues before shipment, minimizing the risk of delays at the border. This proactive approach can save valuable time and resources by addressing potential problems before they escalate.
• Utilize DHL Express’ AI-driven tools: DHL Express employs AI-driven tools to check documents for accuracy and consistency, reducing the likelihood of errors that can cause delays. This helps streamline the documentation process and minimize the risk of human error.

Navigating prohibited and restricted items

Before you ship with DHL Express, it's important to check the restrictions on prohibited items for international shipping. Commonly restricted items include:

• Dangerous goods: This broad category encompasses a range of items that pose potential hazards during transportation including flammable liquids, explosives, lithium batteries, and toxic substances. Specialized handling, packaging, and labeling of these goods may be necessary to ensure safety and compliance with regulations.
• Counterfeit goods: Fake or replica products that infringe on intellectual property rights are strictly prohibited in most countries. Importing or exporting counterfeit goods can lead to legal penalties and damage your business reputation.
• Narcotics and illegal drugs: The import and export of illegal drugs are universally prohibited and carry severe legal consequences.
• Weapons and firearms: Strict regulations govern the import and export of weapons and firearms, often requiring special permits and licenses.
• Perishable goods: Certain perishable goods, such as food and plants, may require special permits or certifications to ensure they meet import requirements and do not pose a risk to public health or the environment.

Shippers can use MyDHL+ to access a comprehensive list of prohibited and restricted items based on origin and destination countries, helping you ensure compliance with regulations. If you have any doubts about the acceptability of your goods, contact a customs clearance agent, DHL Customer Service, or your Account Manager prior to shipping for clarification.

Introducing MyGTS: simplifying customs for businesses

Shipping cross-border can seem complex, and incorrect customs paperwork is one of the main causes of delays for SMEs shipping across borders.

To speed up international shipping and simplify customs transactions, DHL Express has developed My Global Trade Services (MyGTS), an intuitive, all-in-one portal.

What is MyGTS? MyGTS is a free, user-friendly online platform that will help businesses seamlessly navigate all international shipping regulations and customs transactions.

• Pre-shipment planner: A dedicated tool to help businesses comply with all import/export regulations and calculate Landed Cost. For example, if you're exporting apparel from India to the USA, the Pre-shipment Planner can help you determine the HS code, applicable duties and taxes, and total landed cost, allowing you to make informed shipping decisions.
• Accurate HS codes: MyGTS leverages AI to provide accurate HS codes for your shipments, eliminating guesswork and ensuring faster customs clearance. Users can search for HS codes using keywords or the code directory.
• Landed Cost calculation: Businesses can calculate product cost, duties & taxes, and freight charges to develop more effective price strategies and give customers transparency over shipping fees – which builds consumer trust and satisfaction.
• Country-specific guidance: Access detailed guidance on each country's import and export requirements, including specific regulations like BIS certification in India or FDA requirements in the USA. This helps with compliance and avoids costly delays or rejections at the border.
• Document cross-check: MyGTS allows you to cross-check the required documents and clearance requirements for specific countries, ensuring you have everything you need for smooth customs clearance.
• Product catalog: The product catalog feature enables users to save past searches, product details and tariff codes for quicker repeat shipping, further streamlining the international import and export process.

You can log in to MyGTS with your existing DHL Express account, or register a new MyGTS account. Click below for your options.

Partnering with DHL Express for seamless customs clearance

DHL Express offers a range of customs services and solutions to help businesses navigate the complexities of international shipping. Our global expertise, advanced technology, dedicated customer support ensure seamless customs clearance and efficient international shipping from India to destinations around the globe.

Our value-added services include:

• Proactive notifications: We provide proactive notifications about potential customs issues or delays, allowing you to take corrective action promptly and minimize disruptions to your supply chain.
• Tailored solutions: We offer customized customs clearance solutions tailored to the specific needs of SMEs, ensuring compliance and minimizing disruptions. Our solutions are designed to be flexible and adaptable to your unique business requirements.
• Sustainability options: Our GoGreen Plus options support sustainable customs management by offsetting the carbon emissions associated with your shipments. This allows you to reduce your environmental impact while enjoying efficient customs clearance.
• DHL Import Easy Tool (DIET): DIET is a user-friendly tool that simplifies import logistics by providing a streamlined process for managing import shipments. It complements MyGTS by offering a dedicated solution for businesses handling both import and export operations.

By partnering with DHL Express, businesses can leverage our expertise, technology, and global network to navigate the complexities of customs clearance and achieve seamless international shipping.

Ensure seamless international customs clearance with DHL Express

Knowing how to avoid customs delays is the cornerstone of successful and prompt international shipping. By understanding the key customs entry types, implementing best practices for avoiding delays, and utilizing tools like MyGTS and DIET, businesses in India can streamline their customs processes and enhance their global trade capabilities.

DHL Express is committed to providing comprehensive customs services and solutions to support businesses in navigating the complexities of international trade. Our customs clearance agents possess comprehensive expertise, technology, and commitment to empower businesses to achieve seamless customs clearance and unlock their global trade potential.

Take the next step in optimizing your international shipping from India by registering for MyGTS, leveraging DIET for imports, or opening a DHL Express Business Account today.