What is a Customs Declaration?
A customs declaration is a document submitted to customs authorities when goods cross international borders. It contains detailed information about the goods being imported or exported, such as their value, quantity, origin, and the purpose of shipment. Customs declarations are essential for regulatory compliance and are used to assess any duties, taxes, or restrictions on the goods.
For businesses and individuals involved in international trade, submitting a customs declaration ensures that shipments are cleared legally, avoiding fines, delays, or confiscation. It also enables customs authorities to monitor and control the flow of goods, ensuring that all regulations and safety standards are upheld.
CN22 and CN23 Customs Declaration
The CN22 and CN23 are standard customs declaration forms used for international shipments, specifically with postal services. They contain details about the goods in the package, including item descriptions, values, and weights, which helps customs officials assess any applicable duties or taxes.
- CN22 Form: This form is used for lower-value items, typically under a specified threshold, such as 300 SDR (Special Drawing Rights), roughly equal to about €300. It is a simple form that can usually be attached to the outside of small parcels.
- CN23 Form: This form is used for higher-value items and more complex shipments. It requires more detailed information and is usually attached to larger parcels. The CN23 form often includes additional fields, such as country of origin and Harmonized System (HS) codes, to ensure thorough customs processing.
Both forms play a crucial role in streamlining customs clearance by clearly communicating the contents and value of a package to customs authorities.
What is the Difference Between a Commercial Invoice and a Customs Declaration?
While both a commercial invoice and a customs declaration are essential in international trade, they serve different purposes:
- Commercial Invoice: This is a document issued by the seller to the buyer that includes the details of the sale, such as the items purchased, quantities, prices, and terms of sale. It is a legally binding document that records the transaction and provides proof of the sale’s value.
- Customs Declaration: This is a document required by customs authorities that provides specific information about the goods entering or leaving a country. Its purpose is to ensure regulatory compliance, determine applicable taxes and duties, and facilitate border control.
In short, a commercial invoice details the sale itself, while a customs declaration details the shipment to ensure it complies with customs regulations.
How to Fill Out a Customs Declaration
Filling out a customs declaration accurately is essential for smooth customs processing. Here are the main steps:
- Provide Sender and Recipient Information: Include full names, addresses, and contact information for both the sender and recipient.
- Describe the Items: Clearly describe each item in the package, including its quantity, purpose (e.g., gift, sale, sample), and any other relevant details.
- Indicate Item Value: Accurately list the value of each item, as this will be used to calculate customs duties and taxes. If the items are samples or gifts, state their estimated market value.
- Country of Origin: Specify where each item was manufactured or produced. This can affect the applicable duties and potential import restrictions.
- Add a Commodity Code: Include the HS code or commodity code for each item, which helps customs identify the goods and determine the correct tariff.
- Check for Additional Requirements: Some countries may require specific documentation, such as certificates of origin or licenses. Verify whether any additional forms are needed.
Careful completion of a customs declaration ensures transparency with customs authorities and reduces the risk of delays or additional fees.
A Good Product Description for Customs Clearance
A good product description on a customs declaration should be clear, accurate, and specific. Here are some tips for crafting effective descriptions:
- Be Specific: Avoid vague descriptions. Instead of “clothing,” specify “cotton T-shirts.”
- Include Key Details: List the material, purpose, and any distinguishing features. For example, “stainless steel kitchen utensils” is better than “kitchen items.”
- Avoid Industry Jargon: Use simple, understandable language. Terms like “tech accessories” should be more specific, like “mobile phone chargers.”
- State Quantity and Value: Make sure to indicate the quantity of each item and its value, as customs uses this to assess taxes and duties.
Well-described goods make it easier for customs officials to process shipments without confusion, reducing the likelihood of inspection delays.
How to Find the Commodity / Tariff Code
A commodity or tariff code, often called an HS code, is a classification used to identify goods for customs purposes. Here’s how to find the correct code:
- Use Online Databases: Many countries have online customs databases, such as the World Customs Organization’s Harmonized System, where you can search for your product.
- Check Government Trade Websites: Customs authorities often provide HS code lookup tools. For example, the EU’s TARIC system or the U.S. HTS (Harmonized Tariff Schedule) allow you to search by product type.
- Consult with Shipping Providers: Many logistics providers offer assistance with tariff code classification.
- Ask a Customs Broker: For more complex items, consulting with a customs broker can ensure the correct classification.
Finding the correct commodity code ensures that your goods are classified accurately, reducing the risk of delays, fines, or reclassification by customs officials.
