How important is customs clearance in the supply chain?

When the board of directors of a company wants to engage in international trade, the first thing they have to do is find a trustworthy supplier or consumer. Then, they sign the contract. After that, the next thing they care about is permits and licenses for their company and their products.

As we know, supply and demand in trading create the supply chain, and in order to run the supply chain, you need a logistics service. Logistics services provide delivery methods from door to door with many kinds of segments and transportation. In logistics services, customs clearance is the necessary part when you deliver a product from one country to another. Why? Because each country has a cross border protection law which is different between countries or regions. It protects the country from harmful imports by only accepting qualified products to enter the country. Besides that, when importing or exporting goods, businesses have to pay duties and taxes. This mechanism helps to protect the inner businesses of a country.

When the board of directors of a company wants to engage in international trade, the first thing they have to do is find a trustworthy supplier or consumer. Then, they sign the contract. After that, the next thing they care about is permits and licenses for their company and their products, because that will decide when they are ready for customs clearance, and shipping. The customs clearance part can only be done correctly and on time when the company has all the necessary permits and licenses, along with the correct documents when they do the customs declaration. This is one of the factors that influences the price of the product.

The third important thing in successful trading is to find a good freight agent to keep the delivery time and price competitive. 

So in order to avoid wasting time in trading, you have to have all the necessary information like the questions below:

Is your mode of payment safe? That means when you have already found a trustworthy supplier or consumer, then you and your partner decide to sign a contract. At that time, one of the important things you need to consider is your mode of payment. If you and your partner know each other well, you will choose TT (Telegraphic Transfer) as the mode of payment. In other cases, if you do not know your partner well, you should choose L/C (Letter of credit) as your mode of payment. 

Does your company have all the necessary permits and licenses? This is important because it will decide how smooth and fast the customs clearance will be. The customs clearance procedure will be stuck if you are lacking any important document. Your cargo will be held at the port longer. You need to pay more in extra charges and fees while you are waiting for the approval of the document. 

Do you have an updated policy on your product's import or export? This is to ensure your document team always catches the latest process, and your operations team doesn't miss any important step in the customs clearance activity.

What is your packing list, and how much duty and tax do you have to pay? Make sure you always have the latest duty and tax updates for every item on your packing list. Always ask yourself if there is another truthful supplier for your raw material or your product. This will help you reduce inbound logistics costs.

Customs clearance part is one of the important keys when you do international trading. The customs officer will decide if your goods and documents are qualified to be exported or imported. County tariffs decide how much the company needs to pay to fulfill tax obligations. In order to process this procedure quickly and correctly, you need a professional agent to do this. That could be a freight forwarder, or a customs services provider,... which are the typical agents who could do the consulting quickly, and get you the correct documents, permits, and licenses you need for your company and products.

This is the time for adaptation and renovation, as well as business environment reform. COVID-19, war, and a surge in oil prices Those are challenges somehow, but rethink it again. This would be a great opportunity to go lean in business, focus on core value, and main activities. 

Tuong Hoa Import Export Joint Stock Company.

We provide customs clearance services, offering the most appropriate approach for your business model.

We are here and ready for your call. We provide the customs clearance services, and help all of the businesses with permits and licenses in the process of importing and exporting. Our partners are law firms, certificate agents,... can help you do it easily, quickly, and correctly.

Hot Line: (+84) 28 7302 0880 /Email: sales@tuonghoa-imex.com

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Email: huynhanh@tuonghoa-imex.com