Customs Clearance, Documentation -...

Pacific Logistics

Customs Clearance, Documentation

Customs Clearance,

Documentation

Pacific Logistics


Agenda

• Customs Outline & Responsibilities

• International Agreements

• Internationally agreed terms

• Customs Structures

• Common Players

• Documentation

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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?

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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.”

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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

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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

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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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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

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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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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

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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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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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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

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Some Common Players

• Customs & clearing agents

• Consignee

• Supplier

• Forwarding agents

• Stevedores

• Customs brokers

• Land/Air/Sea transport companies

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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

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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.

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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

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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

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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

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Questions

5

Date post:	09-Jun-2018
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