Customs declaration is one of the most important stages in import-export. A single small error in the goods information, HS code, or documents can delay clearance, add demurrage and storage costs, and even trigger penalties under the regulations.
Most customs declaration errors stem from a lack of experience, failing to keep up with new regulations, and not checking the dossier before transmitting the declaration. That is why recognizing these errors and having remedies helps save time and minimize risk. Below are the common customs declaration errors, along with solutions to help businesses handle them effectively.
1. Incorrect HS Code Declaration
This is the most common error in import-export. The HS code is the basis for:
- Determining the duty rate.
- Applying the goods management policy.
- Specialized inspection.
- Determining import or export conditions.
If the HS code is declared incorrectly, a business may:
- Face tax reassessment.
- Be subject to administrative penalties.
- Have to amend the declaration.
- Face a post-clearance audit.
- Experience delayed clearance.
How to fix it
- Analyze the true nature of the goods.
- Consult the current import-export tariff schedule.
- Prepare catalogues or technical documentation.
- Seek advice from an expert or customs service provider for goods with a complex composition.
2. Incorrect Goods Description
Many businesses declare only the trade name or a description that is too short. For example:
- Motor.
- Plastic.
- Chemical.
Such declarations do not fully reflect the characteristics of the goods.
How to fix it
The goods description should show:
- The type.
- The function.
- The material.
- The model (if any).
- The basic technical specifications.
A clear description helps customs easily determine the HS code and management policy.
3. Incorrect Declared Value
The customs value is the basis for calculating duties. Common errors include:
- An incorrect unit price.
- Omitting freight charges.
- Omitting insurance costs.
- Not adding the amounts required to be added under the regulations.
- Applying the wrong Incoterms.
How to fix it
- Carefully check the commercial invoice.
- Determine the correct delivery terms.
- Cross-check with the foreign trade contract.
- Keep complete payment documents to provide explanations when needed.
4. Inconsistent Documentation
A very common error is inconsistent information across documents. For example:
- The invoice states 500 products but the packing list shows 480.
- Incorrect weight.
- Incorrect container number.
- Incorrect seal number.
- Incorrect consignee name.
How to fix it
Before transmitting the declaration, cross-check all documents:
- Commercial Invoice.
- Packing List.
- Bill of Lading.
- Foreign trade contract.
- Certificate of origin (if any).
5. Missing Customs Documents
Some businesses prepare only the basic documents and forget:
- The import license.
- The quarantine certificate.
- The quality inspection results.
- The declaration of conformity dossier.
- The technical catalogue.
This leaves the dossier short of the requirements for clearance.
How to fix it
Build a checklist for each type of goods before opening the declaration to ensure no document is missing.
6. Incorrect Customs Regime Declaration
Each type of import-export has its own process and policy, such as:
- Business/commercial.
- Processing.
- Manufacturing for export.
- Temporary import for re-export.
- Non-commercial.
If the wrong regime is chosen, a business may have to cancel or amend the declaration.
How to fix it
Determine the exact purpose of the import-export and cross-check it against the current regulations before declaring.
7. Not Preparing the Specialized Inspection Dossier
Many goods must also undergo procedures such as:
- Plant quarantine.
- Animal quarantine.
- Quality inspection.
- Food safety inspection.
- Cosmetic product declaration.
- Energy efficiency testing.
Without preparing in advance, the goods will have to be stored at the port or warehouse until these procedures are completed.
How to fix it
Look up the management policy for the goods as soon as the import contract is signed, so you can prepare the dossier proactively.
8. Late Tax Payment
Once the declaration is accepted, the business must settle its taxes as required. If taxes are not paid on time:
- The goods are not cleared.
- Demurrage charges accrue.
- Delivery is delayed.
How to fix it
- Register for electronic tax payment.
- Monitor the payment status on the system.
- Proactively arrange the funds before the goods arrive.
9. Not Monitoring the Channel Classification Result
After declaring, the system classifies the channel:
- Green channel.
- Yellow channel.
- Red channel.
If a business does not monitor it regularly, it may miss a request for supplementary documents or the physical inspection schedule.
How to fix it
Assign staff to monitor the declaration status continuously until the goods are cleared.
10. Not Retaining Documents After Clearance
Many businesses focus only on receiving the goods and forget to retain the dossier. Meanwhile, customs authorities have the right to conduct a post-clearance audit.
Documents to retain
- The customs declaration.
- The invoice.
- The packing list.
- The bill of lading.
- The contract.
- The C/O.
- The payment documents.
- The specialized inspection records.
Keeping complete records makes it easy for the business to provide explanations when requested.
Tips to Limit Errors in Customs Declaration
To minimize risk, businesses should:
- Carefully check all documents before declaring.
- Determine the correct HS code.
- Prepare a complete specialized dossier.
- Cross-check the information across documents.
- Regularly update on new import-export regulations.
- Use suitable customs declaration software.
- Work with a reputable customs service provider for shipments with special requirements.
When Should You Hire a Customs Service?
Businesses should consider using a customs declaration service when they:
- Are just starting out in import-export.
- Have no dedicated import-export department.
- Handle goods subject to specialized management.
- Need urgent clearance.
- Regularly handle high-value goods or many product types.
A professional service provider will help check the dossier, advise on HS codes, monitor clearance progress, and quickly resolve any issues that arise.
Conclusion
Errors during customs declaration can affect clearance time, logistics costs, and business plans. Preparing a complete dossier, declaring accurately, determining the correct HS code, and complying with the regulations are the factors that help limit risk and improve import-export efficiency.
For businesses that carry out customs procedures regularly or handle shipments with special requirements, choosing a professional customs service provider helps optimize the process, minimize errors, and ensure goods are cleared quickly.
We are committed to delivering the most effective solutions that save time, cut costs, and minimize risks throughout the customs clearance process at Cai Mep Port. Contact Embassy Freight now via Hotline: 0936911656 for the fastest consultation and quote!
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