FAQ's about customs clearances
Frequently Asked Questions
If you or your business is involved in shipping goods from the European community to a non-EU country, it is necessary to perform an export customs clearance. This process allows the goods to be legally transported out of the European community. The export procedure entails adhering to exit formalities, which may include trade policy measures and potentially export duties, if applicable.
To fulfill the role of a customs broker, they need to obtain a power of attorney (POA) directly from either the importer or the exporter of the shipment. It is not permissible for a broker to receive authorization from a freight forwarder or any other third party. The POA should be obtained in its original form, and in specific EU countries such as Hungary, the POA may need to be registered with the Tax and Customs Office.
EORI stands for “Economic Operators Registration and Identification Number”.
Businesses and people wishing to trade must use the EORI number as an identification number in all customs procedures when exchanging information with Customs administrations.
Having one common type of identification number across the EU is more efficient, both for economic operators and customs authorities.
A commodity code is a code that is used as an international product identifier. Almost all countries in the world use this system for border control. Everything has a commodity code. This code will determine the tariffs to be applied for duty & tax , also highlight if licenses and or additional health and border checks are required. Correct commodity codes are very important and must be accurate.
The main documents you need for customs clearance are the commercial invoice and the CMR or CIM documents.
You may need additional documents depending on the origin, destination, commodity, and value of the shipment, these include:
- Certificate of origin
- Export license
- Certain declarations related to the given HS code
Inaccurate goods descriptions on the commercial invoice are one of the main reasons for shipments being delayed or held by customs authorities.
The description of your goods, along with the country of origin and the Harmonised System (HS) code, helps the authorities to identify exactly what the product is and determine what import controls are needed, and calculate the duties and taxes.
The certificate of origin is a document stating where the goods you’re shipping were grown, manufactured or produced. It’s needed to confirm the goods being shipped can enter a country and potentially be eligible for relief or reduction in duty.
The commodity code of your items will determine the rate of duty to be paid. This will be calculated during the customs clearance process and is done so based on the value of your goods, your selected INCOTERM, and origin of the goods (which is where the goods were originally manufactured).
This depends on Incoterms, but it will never be the carrier. It is either exporter, importer or both! Possibly the best choice is for the exporter to arrange export declaration and importer to arrange import declaration.
To fulfill the role of a customs broker, it is essential for them to obtain a power of attorney (POA) directly from either the importer or the exporter of the shipment. It is not permissible for a broker to receive authorization from a freight forwarder or any other third party. The POA should be obtained in its original form, and in specific EU countries such as Hungary, the POA may need to be registered with the Tax and Customs Office.
In case Your company is registered within any EU country and has a valid EORI number You can carry out the export customs clearance in Hungary. Authorize Trivium by signing a POA and we will be glad to assist You through the process.
In theory such customs clearances are possible. Import VAT should be paid at the country where You place the shipments into free circulation while customs duties (if any) should be paid in Hungary.
In practice such customs clearances are very rare and put considerable amount of administartive burden on the parties. Therefore we accept such assignments only in special cases.
As a basic rule all import VAT payment and customs duty payment obligation becomes actual right at the time of customs clearance. Therefore the simplest way it to pay all duties and taxes directly to the Hungarian State Treasury right at the time You clear Your shipment.
In case You would like to postpone the payment we are able to offer You several solutions which will enable You to settle Your obligations with deferement. Please ask us about these possibilities.
In case You do not have a person within Your company who has in-depth knowledge about customs regulations You need to assign a customs broker through POA . The POA should be obtained in its original form. In Hungary, the POA must be registered with the Tax and Customs Office through the so-called “EGYKE” form.
We have the solution to make your customs clearance hassle-free and efficient!
Join countless satisfied businesses who have unlocked the benefits of our hassle-free customs clearance services. Say goodbye to the complexities, delays, and uncertainties, and say hello to seamless international trade.