Customs Clearance Process: 4 Easy Steps to Follow

Before your international shipment can be delivered to the customer, it must clear customs. Customs clearance is simply the act of moving goods through customs, so they can enter the country. It’s one of the most important steps in international trade.

Every country imposes import duties and taxes on goods crossing their borders. This helps to generate income, protect the economy, environment, and the citizenry.

But what actually happens within a customs office? For many merchants, this unanswered question is a stumbling block on the way to lucrative cross-border shipping.

For 99% of merchants, though, clearing customs is a simple 4-step process. All you need is a few documents, and you're done.

Easyship helps merchants generate all their customs paperwork, pre-pay import duties and taxes, and save on international shipping couriers that transport your package from customs to the customer.

The Customs Clearance Process

In four steps, here's what happens when a shipment arrives at customs.

1. A customs officer examines your customs paperwork

These documents must be accurate and complete, specifically the shipping label and commercial invoice so that there are no issues from the customs office. The commercial invoice is most important because it lists the contact information for the shipper, the receiver, as well as the export date and airway bill number, which is required for payment verification. Here's a full list of all necessary paperwork for customs clearance.

Easyship’s automation tools offer online store owners a straightforward process for automatically generating customs paperwork. With Easyship, you can easily create accurate and complete shipping labels and commercial invoices, ensuring that your customs paperwork meets all the requirements. This simplifies the customs clearance process and reduces the chances of delays or rejections due to incorrect or incomplete documentation.

2. Import duties and taxes are assessed using the customs paperwork.

Import fees vary depending on the type of goods, their value, and specific import regulations in the receiving country. Import duties are assessed on goods that exceed the de minimis value, or the minimum taxable threshold for imported goods. For example, a de minimis value of $100 means goods valued at $100 or less incur no import duties.

3. Customs requests payment for taxes and duties, if applicable. 

If your shipment exceeds the tax threshold, payment taxes and duties might come into the picture. The customs office checks if duty and taxes have been paid. Additionally, certain restricted goods may incur fees regardless of their value.

At this point, the choice between international shipping with Deliver Duty Unpaid (DDU) and Deliver Duty Paid (DDP) becomes relevant.

• Delivery Duty Paid (DDP) means that import duties and taxes have already been paid. Most express couriers services like FedEx have customs brokers who will process this payment on your behalf at customs. With DDP, the price you paid for shipping covers any import fees, and this is reflected on the attached shipping label. In other words, using DDP is the best way to ensure a smooth customs clearance process.‍
• Delivery Duty Unpaid (DDU) means that import duties and taxes are unpaid. In this case, the customs officer forwards the shipment to an independent customs broker to collect the required amount.

Customs brokers are middlemen who charge fees for facilitating the customs clearance process. These variable fees can be expensive because they include brokerage, storage, and late payment. With customs fees unpaid, the broker will contact the recipient to collect payment. Obviously, this may upset customers.

Here's a comparison of potential charges when shipping DDP and DDU:

With so many variable costs, shipping DDU makes it impossible to tell customers the final amount for shipping. This is why we recommend that sellers pre-pay duties for a smooth delivery experience. Learn more about DDU and DDP here.

4. Your shipment clears customs once all duties are paid

Once customs clearance is complete, your chosen courier service transports the shipment from customs to the end destination country. Shipments rarely get stuck at customs. When they do, it’s usually because of faulty paperwork or missing information required by the government agency. If the declaration is incomplete, customs may request further information to proceed. Here’s what to do if your shipment gets stuck at customs.

2025 Tariff Changes: What Importers Need to Know

As of mid-2025, significant shifts in global trade policies have introduced new tariffs and regulations affecting customs clearance processes. Staying informed about these changes is crucial for importers and exporters to ensure compliance and cost-effective operations.

Universal 10% Tariff Implemented

Effective April 5, 2025, the United States imposed a universal 10% tariff on all imports, regardless of origin. This baseline tariff aims to address trade imbalances and protect domestic industries. Importers should factor this additional cost into their pricing and supply chain strategies.

Elevated Tariffs on Specific Countries

In addition to the universal tariff, the U.S. has introduced higher tariffs on imports from certain countries:

• China: Tariffs on Chinese goods have increased up to 145%, encompassing various product categories, although these numbers are subject to change. 
• Canada and Mexico: A 25% tariff has been applied to most goods from these countries, with some exemptions under the USMCA agreement.

De Minimis Threshold Adjustments

The de minimis exemption, which allowed duty-free entry for low-value shipments, has been suspended for goods originating from China, Hong Kong, and Macau. All shipments from these regions are now subject to duties, regardless of value.

Sector-Specific Tariff Increases

Certain industries have been particularly affected by the new tariffs:

• Steel and Aluminum: Tariffs on these materials have doubled from 25% to 50%, impacting construction and manufacturing sectors.
• Automotive Imports: New tariffs ranging from 10% to 15% have been imposed on vehicles and parts from Japan and the EU.

Tips for Navigating the New Tariff Landscape

• Stay Informed: Regularly consult official resources and trade advisories to keep abreast of tariff changes.
• Review HS Codes: Ensure accurate classification of goods to determine applicable tariffs.
• Consider DDP Shipping: Opting for Delivered Duty Paid (DDP) can streamline customs clearance by prepaying duties and taxes.
• Utilize Automated Tools: Platforms like Easyship offer calculators and resources to estimate duties and ensure compliance.

By understanding and adapting to these 2025 tariff changes, you can better manage costs and maintain efficient international shipping operations. Using customs clearance services provided by platforms such as Easyship can help you avoid customs clearance delays.

How Do I Ensure a Smooth Customs Clearance?

While we know the processes involved in a typical international customs clearance process, here are some key points to note to ensure things go smoothly.

1. Make sure your paperwork is in order

Incorrect paperwork and documentation are one of the primary reasons why your shipment will not cross the border. In such situations, it is always better to be overprepared. Make sure you have all the required documents, including invoices, the air waybill (AWB) as a key document for air shipments, customs declarations, and other necessary documents. Preparing each document accurately is essential to ensure smooth customs clearance.

2. Switch to DDP

While it does not make economic sense to pre-pay the taxes, try looking at the bigger picture. If your shipment is stuck at customs, and worse, takes long time to go through the custom brokers who will first collect the tax from your customer and then take time to release your package, you’re reputation might go for a toss. That is a bigger price to pay than the DDP. 

3. Try pre-determining your taxes with a tax and duties calculator

A tax and duties calculator makes it easier to estimate the taxes you are likely to pay when sending your packages internationally. This helps avoid surprises and makes it easier to add a layer of customer satisfaction.

Solutions like Easyship helps entrepreneurs streamline customs clearance process that:

• Simplifies documentation generation
• Provides pre-payment of import duties and taxes
• Offers expert guidance and support

Make Customs Clearance Simple with Easyship

By leveraging Easyship's marketing-leading shipping tools, store owners can save time, ensure compliance, and optimize their cash flow. With Easyship, store owners can now effortlessly navigate the complexities of customs clearance, expand their business globally, and focus on what matters most – boosting sales.

For all things duties and taxes, don't forget to check out our comprehensive guide. Try our Free Tax and Duty Calculator now and unlock sales in over 220+ countries and territories. Easyship has got you covered, for example, shipping a $50 fashion item from the US to the UK.

Check out our Tax and Duties Calculator

FAQ

What does custom clearance mean?

Customs clearance is the act of moving goods through customs, so they can enter the country.

How long does custom clearance take?

Typically, a customs clearance takes less than 24 hours. If your paperwork is lacking, however, it could take several days before your shipment clears customs.

What documents are required for customs clearance?

The key documents for customs clearance are the commercial invoice and the packing slip and shipping label.

Can I organize the customs clearance myself?

Yes. This requires you to pre-pay all import duties and taxes, either when you choose your cross-border shipping service or separately. In other words, opt for Delivery Duty Paid shipping options.