For traders, knowing and navigating customs regulations is very important. These regulations manage and administer the import and export of products across borders. They ensure that these movements are in accord with each country’s trade policies.
Customs regulations are in place to maintain the safety of public health, national security, as well as industries in a country. Traders who fail to follow these customs regulations can face fines, delays, and confiscation of their products. So, to make this easier, we have shortlisted some essential customs information that you need to know for import as a trader.
Explanation of Key Customs Terms
There are some key terms that play a huge role in the world of international trade. Knowing these concepts will help you move freely from one operation to another in the importing process by avoiding mistakes. Some of them are:
Harmonized System (HS) Codes
Harmonized System (HS) Codes are numerical codes assigned to trade products to classify and identify them easily. These codes decide on the restrictions, duties, and taxes set on any goods. In Bangladesh, every trader should accurately put HS codes on their products to avoid any penalties. Exporters and importers can access detailed Bangladesh customs import information to facilitate their trade processes and calculate accurate duties.
Customs Duty
Customs duties are tariffs put on products depending on their origin, classification, and value by the government. What this does is protect the local industries from any foreign competition. Additionally, understanding tariff calculations is important because it leads to cost transparency and more profit.
Import Tariffs
Import tariffs are taxes that are imposed in order to manage trade volumes or increase revenue. They can be in the form of a percentage of value (ad valorem), a specific amount per unit, or a combination of both. Knowing what a particular country’s tariff structure is like will help traders in finding a cost-effective source.
Incoterms
In simple terms, these are a group of international rules set by the International Chamber of Commerce (ICC). These rules define the specific responsibilities of both exporters and importers. They are also recognized internationally.
Preparation for Importing Products
Preparation is key to ensure that your import process flows smoothly. There are some crucial steps you should consider before participating in any international trade operations. A few things to take into consideration are:
Researching Import Regulations
Every country has different and specific regulations when it comes to imported products in particular. This is set based on security, safety, and economic policies.
So before anything else, you should research these import regulations. This includes looking at official customs websites and talking to legal experts and other traders. Moreover, traders should confirm if their products need any special permit, certification, or clearance.
Partnering with a Customs Broker
To properly prepare for importing goods, consulting with a customs broker will make the process much simpler. Custom brokers are the middlemen between traders and customs authorities. Due to this, they will ensure you will have the appropriate documentation, have categorized products accurately, and as well as speed up the clearance process. Overall, partnering with a licensed customs broker will help in minimizing any errors.
Customs Documentation Requirements
Having the right documents is mandatory if you want to move forward with your import trade. They will ensure that you go through the customs clearance process smoothly. Below are some of the most important documents to have:
Commercial Invoice
This document contains all the transaction details, such as the description, prices, and medium of sale of your products. Commercial invoices are very important as the customs authorities depend on them to check and verify the quality and legal circumstances surrounding the products.
Packing List
Another important document is the packing list. It includes all the details on the content in each and every shipment package. It is necessary because it ensures an efficient customs inspection, particularly in cases where there are a lot of products in large shipments.
Air Waybill (AWB)
Air Waybill (AWB) is a legal document that is needed when businesses ship their goods using an international courier. It is a contract between the importer and the courier. AWB confirms all the shipment and transport terms set. It is also used to claim products easily when they arrive.
Certificate of Origin
Certificate of Origin establishes where a certain product has been manufactured. This document is very important as it determines whether the product is eligible for tariffs.
Conclusion
Overall, it is quite tricky and complex to navigate through customs if you want to import products. Thus, it is an important skill for any trader to know customs import information before going headfirst into the global marketplace. Knowing the crucial customs terminology, preparing all the right documents, and keeping the regulations and rules in mind will make the whole process simple and is key for successful importing.
