Customs Clearance, Documentation -...
Transcript of Customs Clearance, Documentation -...
Pacific Logistics
Customs Clearance, Documentation
Customs Clearance,
Documentation
Pacific Logistics
Customs Clearance, Documentation
Agenda
• Customs Outline & Responsibilities
• International Agreements
• Internationally agreed terms
• Customs Structures
• Common Players
• Documentation
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Customs Clearance, Documentation
Customs Dealings
• Who has had experience dealing with
customs, importation, exporting, etc?
• Are the following comments true or false?
• Customs processes are easy to work with!
• Customs processes are transparent and easily
understood!
• Customs processes are designed to ensure
quick processing of goods!
• Customs personnel are friendly and helpful?
Pacific Logistics
Customs Clearance, Documentation
Some Comments
• “…Bureaucratic governmental systems are
confusing, complicated and problematic for
NGO’s.”
• “Though we have duty free privileges, the
whole governmental administrative process
is dis-organised.”
• “Clearance and registration is time
consuming and frustrating as officials are
often out, and things just stop.”
Pacific Logistics
Customs Clearance, Documentation
Why do we have Customs?
• Collection of funds, ie taxes
• Protection through isolation and quarantine of flora, fauna, etc
• Protection of manufacturing industries
• Legal obligations
• Customs may not only be applicable at international boundaries, may include regions, areas, towns, etc
• In this presentation generally refers to importing
Pacific Logistics
Customs Clearance, Documentation
Customs Responsibilities
• Central Government
• Customs departments often reside in:
• Ministry of Interior
• Ministry of Finance / Customs
• Ministry of Foreign Affairs / Trade
• Local custom and regimes independent from
central authority:
• Warlords, Tribes, Military, Rebels, etc
• Civil Aviation / Port Authorities
Pacific Logistics
Customs Clearance, Documentation
International Agreements
• WCO (World Customs Organisation)
• Promotion of international trade through cooperation
• 177 members, 95% of global trade, Fiji, Samoa,
Tonga are signatories
• Model Customs Facilitation Agreement
• Approved by the Permanent Technical committee of
WCO in April 1996
• Kyoto Agreement
• First signed in 1954 to harmonise customs
administration globally. Last amendment in 2003
(Annex on relief consignments)
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Customs Clearance, Documentation
Kyoto Agreement ’03 (WCO)
• Chapter 5 Relief (Annex) Consignments:
• Relief Consignments should be subject to minimal
Customs control and documentation
• Priority treatment for relief consignments (incl.
export, import, transit, temporary admission)
• Clearance without regard to country of origin and
waiver for economic export prohibitions and
restrictions
• If gifts and for use by approved organizations,
should be free of import duties, taxes and economic
import prohibitions and restrictions
Pacific Logistics
Customs Clearance, Documentation
Chapter 5 Annex, Implications • The relief materials can be imported (normally) free
of import duties, subject to the importing country / its foreign office issuing an acceptance letter
• If the relief is for any national calamity the transportation is also undertaken free thru the importing countries national carriers
• Priority clearances are also allowed to enable the relief material to reach the place faster.
• Importing country to issue a letter the material received are for relief and no remittances are involved
• Doesn’t remove other documentation requirements
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Customs Clearance, Documentation
Logistics Cluster Role Towards
Customs
• Identification of main entry points and their
logistics capacities
• Identification of the main corridors for
humanitarian relief
• Identification of the main logistical issues at
arrival points and definitions of provisional
assistance available
Pacific Logistics
Customs Clearance, Documentation
INCOTERMS
• Internationally accepted commercial terms
defining the respective roles of the buyer
and seller in the arrangement of
transportation and other responsibilities
and clarify when the ownership of the
merchandise takes place
• Described as
‘XXX Named Location’
• Always reference year
e.g. 2000 or 2010
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Customs Clearance, Documentation
Any mode / modes of transport
• EXW – Ex Works
• FCA – Free Carrier
• CPT - Carriage Paid To
• CIP – Carriage and Insurance Paid to
• DAT – Delivered at Terminal
• DAP – Delivered at Place
• DDP – Delivered Duty Paid
All to a named place of delivery/destination
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Customs Clearance, Documentation
Sea & inland waterway transport
• FAS – Free Alongside Ship
• FOB – Free on Board
• CFR – Cost and Freight
• CIF – Cost, Insurance and Freight
All to a named port of destination
Pacific Logistics
Customs Clearance, Documentation
Some Common Players
• Customs & clearing agents
• Consignee
• Supplier
• Forwarding agents
• Stevedores
• Customs brokers
• Land/Air/Sea transport companies
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Customs Clearance, Documentation
Supplier ships
goods and sends
forms
Customs Process
Need pre-approval by Government that organisation is humanitarian
Customs approval
sent to Consignee Form approved
and stamped by
customs
Goods arrive
along with docs at
sea/air port
Take delivery of
goods
Consignee
submits letter of
application to
customs plus
Airbill/BL, inv, etc.
Maybe also need
copy of letter of
agreement
Humanitarian
Form for custom
lodgement
completed by
agents plus other
docs submitted.
Taxes paid if
required
Normal
Consignee/
Agent receives
forms
Forms
Goods
Pacific Logistics
Customs Clearance, Documentation
Customs Process Notes
• Sometimes transport companies such as
DHL/TNT/Fedex, etc have agreements that
allow for express clearance of airport goods
which allows goods release prior to
documents being completed.
• Seaports need goods plus docs.
• Special requirements for drugs,
communication gear, animals. Need extra
approvals from relevant Government Dept.
Pacific Logistics
Customs Clearance, Documentation
Documentation
• Airway Bill / Bill of Lading / Waybill
• Packing List
• Certificate of Origin
• Certificate of insurance
• Third party inspection agency certification for
Quality
• Commercial / Proforma invoices often not
required for humanitarian imports
Pacific Logistics
Customs Clearance, Documentation
Other Documents • For importaion of medicine you may need to
get a pharmacy permit.
• All fruit, vegetable and animals must have an import permit issued by the agriculture quarantine section
• Electrical machinery and appliances could also need special permission
Remember, Check Exact Documentary Requirements
Pacific Logistics
Customs Clearance, Documentation
Summary
• Remember systems are often overloaded due to supplies arriving for operations which may far exceed the scope of routine operations
• Talk to Government bodies prior to arrival of supplies
• Ensure you know the documentation requirements and make sure you have them available
• Think of using clearing agents, etc
Pacific Logistics
Customs Clearance, Documentation
Questions
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