Understanding Customs Delays and Customs Notifications

Customs delays are bad for business. When your cargo or shipment sits at the port or airport forever, you fail to meet your delivery deadlines and customer expectations. The situation gets worse especially when you get scary and unusual letters and messages from customs or various freight companies such as FedEx, UPS, and DHL. The inspection of cargo or freight is usually long & intricate, and involves a process known as HTS (Harmonized Tariff Schedule), which provides a uniformed framework under which statistical categories and tariff rates for all merchandise entering the United States are set.

Some common reasons why your merchandise get stuck with the customs longer than expected include, but not limited to the following:

1. You might not have relevant or appropriate shipping documents or a part of the documentation might be missing.

2. You might have an incomplete and/or incorrect shipper (the shipping company) and consignee (the receiver) information.

3. You might lack a proper description of merchandise (customs requires individual and specific goods to be adequately and individually described).

4. If the client master file data (a database where individual shipper’s information, your POA (power of attorneys), and/or bond information is stored) is missing some information or not up-to-date.

5. If the shipper has not used company letterhead on documents (such as a logo) or uses some kind of discreet company brand, the merchandise will be delayed as customs try to establish its ingenuity.

6. For failing to discuss the “incoterms” (a set of 11 internationally recognized rules), which define the responsibilities of buyers and sellers when it comes to taking the risk of delivery, insurance, and other associated costs. Popular incoterms include FOB (free on board) and CIF (cost, insurance, and freight).

7. Having an incorrect currency code for the designated countries.

8. Failing to fill out the type of shipment or freight (whether it is an import or export).

9. Indicating an incorrect country of origin.

10. Missing or failing to provide the appropriate broker information.

11. Failure to provide accurate HTS (Harmonized Tariff Schedule) information.

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