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Customs clearance is an essential process that ensures goods entering or leaving a country comply with local regulations and that any applicable duties and taxes have been paid.

As this process can be a hurdle for many eCommerce businesses looking to import or export goods overseas, we’re often asked ‘what is customs clearance’ and ‘how can I navigate it’.

With over 25 years’ experience, we have produced a comprehensive guide that addresses the most common customs clearance questions.

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What is customs clearance?

Customs clearance is the official documentation that gives products or goods permission to enter a country.

The mandatory process declares that the imported or exported item adheres to the destination country’s legislation, states a packing list, classifies the item with the correct HS (Harmonised System) code, verifies manufacturing origin and details the tax that has been paid.

Failing to complete customs clearance processes or paying tax incorrectly means the item cannot legally cross the border and it will be held at customs for further investigation.

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What documentation is required?

As standard, customs clearance documentation will need to include:

• Customs declaration – official declaration of your cargo to the customs officials

• A commercial invoice – details the buyer, seller, description and value of the item being shipped

• Packing list – details of the packaging, weight and dimensions

• Certificate of origin – declares where the goods have been manufactured

• Transport document – A carriage document that varies depending on the type of freight forwarding method you use

• Any required licenses or certification required for controlled or high-risk items

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What does it mean when a shipment is held at customs clearance?

When a shipment is held at customs, this usually means it’s under investigation because a process within the customs clearance has been completed incorrectly.

Common reasons for a shipment to be held at customs include:

• Misclassification of goods (wrong HS codes)

• Inaccurate duty, tax and value declarations

• Failing to comply with import restrictions and licenses

• Requests for additional inspections or supporting documentation

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What is a HS code in customs clearance?

A HS (Harmonised System) code is an internationally recognised, 6-digit code that’s used to categorise a product.

These codes help customs authorities classify the product’s duty rates, taxes and whether additional licences or controls apply.

Using the wrong HS code can result in overpaying duties, facing penalties, triggering audits or causing clearance delays.

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What is an import license?

An import license is government-issued permit that enables businesses to bring certain controlled goods into the country.

This license ensures the importer is adhering to health and safety standards, applying to items that could be high-risk, such as food, livestock, agricultural products, medicine, chemicals and defence equipment.

For standard consumer products, an import license is not required.

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Do customs officials open every package?

No – customs officials will typically only use the provided documentation to clear the product. However, packages can be searched by law if further inspection is required or documentation is missing.

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Who pays customs duties and taxes?

In many cases, the seller will be responsible for the payment of any duties or VAT included within the customs clearance of goods. This method is referred to as DDP (Delivered Duty Paid).

However, in select cases, the buyer can be responsible for any customs payments that are made before the goods can be released. This method is known as DAP (Delivered At Place).

These payment obligations are subject to the Incoterm agreed between both parties.

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What is the next step after customs clearance?

After a shipment reaches customs and officials have verified that all documentation is correct and any applicable duties and taxes have been paid, the goods are released for their final-mile delivery.

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Can I complete customs clearance myself?

Yes - if you’re looking import or export goods overseas, you can complete any customs clearance processes yourself.

However, as this process can be quite complex, many sellers will instead use a customs clearance consultant to ensure their goods are released smoothly and there are no delays on their shipment.

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What happens if I need to return imported or exported goods?

International returns can involve additional customs procedures depending on where the goods are being returned from and why they are being returned.

In the UK, returned goods may qualify for customs relief in certain circumstances, helping businesses avoid paying customs duties twice. To benefit from these reliefs, the correct customs declarations and supporting documentation must be submitted.

Whether you're returning defective products, rejected shipments or customer returns, it's important to follow the correct customs process to prevent delays or unnecessary costs.

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How long does UK customs clearance take?

There is no fixed timeframe for customs clearance, as processing times depend on several factors.

Most shipments with accurate documentation can be cleared quickly, while others may take longer if customs authorities require additional checks or supporting information.

Common factors that can affect clearance times include:

• The accuracy of customs declarations  

• Correct HS commodity classification  

• Payment of duties and VAT  

• Whether import licences or certificates are required  

• Customs inspections or compliance checks  

Ensuring all documentation is complete before your goods arrive in the UK is the best way to minimise delays.

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CCL – your gateway to smooth customs clearance

Customs clearance can be highly technical and time-consuming, with added risks of product delays or penalties if any documentation is missing or incorrectly processed.

At CCL, our highly trained and experienced customs clearance consultants can take the stress out of your compliance processes – ensuring your goods have all the necessary documentation for the country they’re entering.

More information about CCL can be found at: https://www.ccllhr.com/