Customs is a fundamental institution in international trade, responsible for regulating the flow of goods across borders, collecting tariffs and duties, and ensuring compliance with trade laws. Understanding basic customs concepts is essential for traders, logistics companies, and import/export businesses.
Key terms in customs operations:
- Customs Tariff: A tax imposed by a government on goods imported into or exported out of the country. The rate depends on the type of product, its value, and its country of origin or destination.
- Transit: The movement of goods through a country en route to a third destination, without being subjected to import duties. Both domestic and international transit are key services in global logistics.
- Customs Declaration: An official document submitted by the importer/exporter or their agent, providing detailed information about the shipment, including product type, value, weight, origin, and destination. It is the basis for customs review and clearance.
- Customs Clearance: The process by which goods are officially approved for entry into or exit from a country after inspections, duty payments, and compliance checks.
Familiarity with these terms can streamline trade operations and prevent legal issues or additional costs.
