Five reasons goods get stuck at customs

When your goods leave your premises, you expect them to reach your customer on time. Unfortunately, a missing document, incorrect commodity code or unsupported origin claim can bring that journey to an unexpected stop.

When your goods leave your premises, you expect them to reach your customer on time. Unfortunately, a missing document, incorrect commodity code or unsupported origin claim can bring that journey to an unexpected stop.

In my work with exporters, I regularly see how small errors made before dispatch can become costly problems at the border. Delays can lead to storage charges, missed delivery dates and difficult conversations with customers.

The good news is that many customs delays can be prevented. Here are five common reasons goods get stuck at customs – and the checks you can make before your next shipment leaves.

1. An incorrect or inconsistent commodity code

Every product being imported or exported needs a commodity code. It tells customs authorities what the goods are and helps determine:

• The duties and taxes that may apply.
• Whether a licence or permit is required.
• Whether the goods are subject to restrictions or additional controls.
• Which rules of origin apply under a Free Trade Agreement.

Commodity codes are based on the international Harmonised System. The first six digits are used worldwide, but countries can add further digits to reflect their own tariff and trade requirements. This means the full export and import codes will not always be identical.

Do not rely automatically on a code supplied by your overseas customer, supplier or freight forwarder. Classification should be based on what the product is, what it is made from and how it is used.

Use the UK Trade Tariff tool to check the appropriate UK code and overseas versions to confirm the import code required in the destination market (or ask your customer). A discrepancy between the export and import declarations may lead to questions or delays.

2. Missing customs documentation

Customs authorities need the right documents to identify the goods, check that they comply with the relevant requirements and confirm that the declaration is accurate.

Most shipments will need:

• A commercial invoice.
• A packing list.
• A transport document, such as a bill of lading or air waybill.

Depending on the goods, destination and reason for travel, you may also need:

• A Certificate of Origin.
• Proof of preferential origin, such as an EUR1 movement certificate or statement on origin.
• An ATA Carnet for goods being temporarily exported.
• An export or import licence.
• A health or phytosanitary certificate.
• Product-specific certificates, permits or supporting evidence.

Check the requirements early. Some certificates and licences take time to obtain and cannot simply be added once the goods have reached the border.

3. Inaccurate or inconsistent paperwork

Having the documents is only part of the process. The information on them must also be complete, accurate and consistent.

Common inaccuracies include:

• Vague descriptions such as “parts”, “samples” or a brand name without explaining what the product is.
• A missing or incorrect country of origin.
• Missing identification numbers, such as an EORI number.
• Incorrect consignor or consignee details.
• Differences in quantities, weights or values across the invoice, packing list and customs declaration.
• Incorrect packaging types or package numbers.
• An origin statement being added to an invoice without checking whether the goods qualify.

Descriptions should give customs officials enough information to identify the goods. Names, addresses, values, quantities and weights should also agree across the paperwork.

Take particular care with preferential origin statements. If some products on an invoice qualify for preferential treatment and others do not, they must be clearly distinguished. A statement should not imply that every item qualifies when that is not the case.

4. Unpaid or incorrectly calculated duties and taxes

The commodity code, customs value and origin of the goods all affect the duties and taxes payable in the destination country. If any of this information is missing or incorrect, the importer may be charged the wrong amount and the goods may be held while the issue is resolved.

There are three areas to check.

Free Trade Agreements

A Free Trade Agreement may reduce or remove import duty, helping to make your products more competitive. However, the saving is not automatic.

Your goods must meet the relevant rules of origin and the importer must make the claim using the correct proof. Depending on the agreement, this could be an EUR1 movement certificate, a statement on origin or another form of evidence.

Making a claim without checking that the goods qualify can lead to incorrect duty, a rejected claim or further customs enquiries, which may lead goods to be held up at customs.

Customs value

The customs value of goods must be accurate. Even when samples, promotional items or replacement goods are being supplied free of charge, they still need an appropriate value for customs purposes.
Writing “no commercial value” or entering a nominal figure without a valid basis can result in customs requesting further information.

Responsibility for payment

Make sure the buyer and seller understand who will arrange customs clearance and pay the relevant duties and taxes.

Incoterms can help clarify the responsibilities and costs agreed between the parties. However, everyone involved must understand what the chosen term means in practice. If duties or taxes remain unpaid, the goods are unlikely to be released.

5. Customs checks and inspections

Sometimes goods are held at customs for a random customs audit and compliance check. You cannot prevent every customs check, but you can prepare for one.

Keep clear records to support:

• The commodity code you have selected.
• The declared customs value.
• The origin of the goods.
• Any preferential tariff claim.
• The licences, certificates or permits supplied.
• The descriptions and information shown on the customs declaration.

If customs asks a question, being able to provide the supporting evidence quickly can prevent a straightforward check from turning into a lengthy delay. And FTAs often ensure that goods are in and out of Customs as quickly as possible, especially if goods are perishable. 

Getting your goods to their destination smoothly

Whether they are destined for a customer, exhibition, production line or international event, delays at customs can have consequences far beyond the border.

Checking your commodity codes, documentation, values and origin evidence before dispatch can make all the difference.

Don’t get stuck in customs. Your goods have somewhere to be.

If you are unsure which documents you need, whether your goods could benefit from a Free Trade Agreement or whether your current processes are working as they should, speak to Business West’s international trade experts before your next shipment leaves.