Free course · Compliance + documents
Customs Clearance
Customs brokers, HS codes, duty and tax calculation, bill of entry and shipping bill, assessment, examination, bonded warehouses and compliance risks.
What you must take away
- Every product has an HS code; it decides the duty rate and any restrictions.
- Duty is usually charged on the customs (assessable) value, often CIF value.
- Core documents: commercial invoice, packing list, bill of lading/airway bill, certificate of origin.
- Wrong codes or values lead to penalties, delays and storage charges.
In the SAP process
- Maintain HS/commodity codes in the material master (foreign trade data).
- Record country of origin per material/vendor.
- Check duty conditions on the import PO.
- Post duty and clearance costs to the shipment or GR.
Case study
Ten days stuck at the port
Setting. A trader importing electronic accessories by sea.
Problem. Containers were held for examination and demurrage charges piled up.
How it was investigated
- Invoice description did not match the packing list.
- The HS code used carried a lower duty than the product deserved.
- The certificate of origin arrived late.
What was changed
- Created a pre-shipment document check with the broker.
- Got an HS classification confirmed and corrected the master data.
- Required documents from suppliers before vessel departure.
Outcome. Clearance time came down to two or three days and demurrage stopped.
Lesson: Customs clears documents first, then goods — fix the papers early.
Illustrative composite of common shop-floor situations — no client names or confidential figures.
Practical template
Customs document checklist
Confirm every document is ready and consistent before arrival.
| Shipment | HS code | Invoice value | Packing list OK | B/L or AWB | Certificate of origin | Licence needed | Ready (Y/N) |
|---|---|---|---|---|---|---|---|
| IMP-2026-041 | 8504.40 | 12,400 USD | Y | MAEU123456 | Y | N | Y |
How to use it
- Fill one row per shipment before it sails.
- Match invoice, packing list and B/L descriptions.
- Send the row to the broker for pre-check.
Quick quiz — check your understanding
The quiz questions stay hidden until you have spent at least one minute reading this lesson — answer from what you learned, not from clues in the options.