Understanding Customs Clearance & Brokerage with Alphacon Logistics
Many small and medium-sized companies are afraid to export and import goods because they are not familiar with customs clearance. By learning how customs clearance works with the help of services from quality customs brokerage experts, companies will surely grab this good opportunity as a beneficial option for exporting and importing their goods.
What is Customs Clearance?
Customs clearance is a method of facilitating seamless delivery of goods and products through the Customs authorities to conduct the export and import products and goods into the country of origin and to its designated receiver country.
Moreover, customs clearance means that a particular document is released by the Customs Clearance authorities to a freight forwarder company like Alphacon Logistics, stating that all taxes and obligations have been paid and the products are cleared for export and import.
Customs brokerage experts assist in all the necessary shipment procedures for the export and import process of your goods and products. If the cargo is cleared from the customs clearance, the shipment can be transported.
Ease the Process of Customs Clearance
Logistics companies that handle these are also called customs brokerage experts or simply, customs brokers. Although rules and regulations, and even laws are different from country to country, the customs clearance procedure made it easy for experts such as Alphacon Logistics for the export and import process of your goods. That’s why having the wrong person arrange your customs brokerage can be chaotic.
Choosing the best freight forwarder companies such as Alphacon Logistics can reduce the complicated procedures that customs clearance does to businesses. Your logistics company should manage your customs clearance smoothly and free from all the chaotic issues it may give to companies.
Because of this reason, choosing the cheapest logistics company can be more expensive than hiring the most competent freight forwarder like Alphacon Logistics with a little different quote but with much more experience in customs brokerage..
Know the Customs Clearance Process
To understand better how customs clearance works, below is the typical process of customs clearance in the Philippines.
Customs authority will check the paperwork of the cargo.
All import and export shipments should have a commercial invoice. This document will state both the shipper and the receiver’s required information in lieu of the shipment details like export date and waybill number.
Customs authority will check if taxes and obligations are applied to the shipment.
Checking of taxes and obligations will depend on the type of goods, price, and the rules and regulations of the receiver’s country. If the goods’ cost is beyond the tax threshold, then the customs clearance authority will need to check whether taxes and obligations have been paid.
Customs authority will request payments for taxes and obligations if they haven’t been paid.
If cargo is marked as Deliver Duty Paid (DDP), it means that the fees for taxes and obligations have already been settled. However, if the freight is marked as Deliver Duty Unpaid (DDU), the customs authority will transfer the cargo to an independent customs broker to collect the payment.
Once the required fees have been paid, the cargo is released and shipped to its designated location.
That’s it! As long as the required documents are complete, taxes and obligations are paid, customs clearance in the Philippines is just a breeze.
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