Customs clearance (export declaration and import clearance) is the most "technically demanding" part of foreign trade logistics—it involves not only complex regulations but also directly impacts whether goods can be smoothly exported or imported. For many newcomers to foreign trade, the first major question is "What exactly is the difference between export declaration and import clearance?" This article explains it in the most straightforward way.
I. Basic Concepts: Export Declaration vs. Import Clearance
| Concept | Scenario | Explanation |
|---|---|---|
| Export Declaration | When goods are exported | Declare to Chinese Customs "This shipment is for export," and Customs reviews and releases it. |
| Import Clearance | When goods arrive at destination port | Declare to the destination country's Customs "This shipment is for import," and Customs reviews and releases it. |
Simply put, export declaration is the declaration before leaving the country, while import clearance is the declaration after entering the country—two directions, two sets of processes, and two sets of regulations.
II. Export Declaration Process
Complete Export Declaration Process
Declaration → Document Review → (Inspection) → Release → Customs Clearance Completion| Step | Action | Duration | Explanation |
|---|---|---|---|
| ① Declaration | Customs broker submits electronic data to Customs | Immediate | Submission via Electronic Port System |
| ② Document Review | Customs system auto-review or manual review | Minutes to hours | Most are auto-approved |
| ③ Inspection (if applicable) | Container opened and inspected after Customs alerts | 1-2 days | Probability of being flagged is about 3%-5% |
| ④ Release | Customs approves and releases the shipment | Immediate | Ship can only be loaded after release |
| ⑤ End of Clearance | Customs closes the file after the goods are shipped overseas | After export | — |
Documents Required for Export Declaration
| Document | Explanation |
|---|---|
| Customs Declaration Form | Core document for declaration |
| Commercial Invoice | Proof of goods' value |
| Packing List | Details of goods packaging |
| Contract | Sales contract between buyer and seller |
| Power of Attorney for Customs Clearance | Authorization letter to delegate the customs broker |
III. Import Clearance Process
Complete Import Clearance Process
Arrival → Document Exchange → Customs Declaration → Tax Payment → (Inspection) → Release → Cargo Pick-up| Step | Action | Explanation |
|---|---|---|
| ① Arrival & Document Exchange | Exchange Bill of Lading for delivery order at the shipping line | First step of import |
| ② Customs Declaration | Declare imported goods information to Customs | Similar to export process |
| ③ Tax Payment | Pay customs duties and import VAT | A step unique to imports |
| ④ Inspection (if applicable) | Customs opens container for inspection | Probability of being flagged is higher than for exports |
| ⑤ Release & Cargo Pick-up | Pick up cargo from port after Customs release | — |
IV. Key Differences Between Export Declaration and Import Clearance
| Differentiating Factors | Export Declaration | Import Clearance |
|---|---|---|
| Taxes/Fees | No tax payable (eligible for export tax rebates) | Customs duties + import VAT payable |
| Document Direction | Chinese invoice + Chinese packing list | Foreign invoice + foreign packing list |
| Time of Declaration | Completed 24 hours before vessel loading | Completed within 14 days of arrival |
| Inspection | Approx. 3% to 5% flagged for inspection | Inspection rate varies by country |
| Handling Party | Chinese Customs Broker | Destination Country Clearing Agent |
V. Declaration Differences: General Trade vs. Processing Trade
| Differentiating Factors | General Trade | Processing Trade |
|---|---|---|
| Source of Goods | Finished goods purchased domestically | Imported materials processed and re-exported |
| Import/Export Relationship | Independent single import or single export | Material Import → Processing → Re-Export (Linked) |
| Customs Supervision | One-time supervision | Bonded supervision (imported materials exempt from duties) |
| Document Requirements | Standard customs process | Manual/electronic ledger management |
| Suitable Companies | Most export enterprises | Factories processing imported materials |
VI. When to Find a Customs Broker
Most foreign trade companies don't handle customs clearance themselves; they entrust it to a customs broker (or their freight forwarder subcontracts it). A customs broker's fee is typically a fixed cost (a few hundred RMB per shipment), offering good value for money compared to handling it yourself.
Contact the customs broker at the following times:
1. After the goods are produced and sailing schedule is confirmed
2. When trucking is arranged, before the loaded container is returned to the terminal
3. At the very latest, 2-3 working days before the Customs cut-off timeHeads-up: A step that new export businesses often overlook is the "Electronic Port IC Card." Declarations must go through the Electronic Port system, and without this IC card, nothing can be submitted. If you plan to export independently, it's advisable to apply 2-3 months in advance, as the approval process takes longer than expected.
💡 Customs procedures vary in every country. Export declarations are relatively standardized, but each country has its own rules for import clearance—this is why it’s recommended to find a local agent at the destination port.
📖 Further Reading:
- 👉 Customs Clearance Guide: Complete Export Clearance Process — Full step-by-step guide for exports
- 👉 Customs Clearance Guide: Complete Import Clearance Process — Detailed operations for imports
- 👉 Customs Clearance Guide: What to Do If Customs Inspects — what to do when shipments are flagged
📞 Customs concerns? The customs brokers Bofeng Logistics cooperates with offer export declaration and import clearance services. Helpline: 13075678958 | info@zhbfwl.com
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