Customs Clearance

Customs Officer and Your Shipment Documents

All international shipments must include a commercial invoice, which is an essential document in the customs clearance process. This document contains the shipper’s details, the consignee’s contact information, as well as shipment details such as the export date and the bill of lading. Most importantly, the invoice will include a description of the item and its total value.

Taxes and duties applicable to your shipment

This depends on the type of goods, their value, and the regulations of the importing country. Each country has its own rules, regulations, and import taxes. If it is determined that the value of the goods exceeds the customs-accepted threshold, the customs officer will check whether these taxes and duties have been paid.

What happens if the taxes and duties are not paid?

When discussing customs clearance, it is important to understand two key terms:

• Deliver Duty Paid (DDP)
• Deliver Duty Unpaid (DDU)

If a shipment is marked as DDP, it means that the duties and taxes have already been paid. Some express carriers have specialized customs brokers who handle these payments on your behalf, offering the service at a flat rate when you pay for your shipping label.

On the other hand, if a shipment is marked as DDU, customs will redirect the parcel to an independent customs broker to collect the required amount. The broker will then contact the consignee (your customer) to collect payment. This may come as an unexpected cost to your client, so it is best to inform them beforehand about the possibility of additional customs charges.

Once the applicable duties and taxes have been paid, the shipment is cleared and continues to its final destination.

And that’s it! As long as you have the required paperwork and understand how to handle taxes and duties, customs clearance should be straightforward. In many cases, shipping companies manage this process for you.

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This is the most important summary regarding sea freight. Please contact us via email if you have any questions about shipping or if you would like to learn more about shipping, international freight information in Riyadh, and the incentives we provide.

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