What happens when your order is stuck at customs? Find out what to do and how freight forwarders can help.
So, you logged on to your shipment tracking dashboard to check your cargo’s status in the hopes of some improvement in its itinerary. But instead of something indicating progress, you’re seeing a “Clearance Delay – Import” message or something similar.
So, you log on a few hours later, same thing. The next day, the same. The day after… well, you see where this is going. Should you be worried or is it just something that happens? Well, that depends.
In this post, you’ll learn why there are customs clearance delays so you won’t be worried or anxious if you experience shipment delays at the ports due to customs activities. Also, you’ll learn what steps to take to fix the problem so you can get the ‘Customs Clearance Completed’ notification and take delivery of your cargo.
Quick Overview – Common Causes of Customs Clearance Delays
Here’s a quick summary of the common issues that lead to customs delays. We’ll expand on each later on in the post:
- Seasonality and port congestion
- Missing documentation, paperwork errors, or incomplete information about the cargo
- Safety concerns
- Regulatory problems
- Compliance issues
- Political tensions and economic instability
If you’re dealing with any of these issues, you can either wait and hope that things sort themselves out or hire a customs broker to look into the situation. The best option is hiring a customs clearance professional, as the wait-and-see approach may not be optimal when you have delivery obligations to your customers.
If your cargo is delayed at customs, our customs clearance professionals at Ship4wd can quickly help you figure out what’s going on and deploy proven solutions to have your goods cleared and on their way to you.
Check out our customs clearance services today.
What Does Customs Clearance Delay Mean?
Clearance delay means your shipment is being held up during the customs process, often due to missing documents, unpaid duties, or further inspection requirements. This delay prevents the goods from moving forward until the issue is resolved. Once cleared, the shipment can continue to its destination.
Sometimes, it can take customs some time to release shipments. If you cargo has been stuck for an unusually long period without any notice of issue, reach out to your partners to ensure all documentation and duties have been submitted and paid, and wait for a few days to about a week.
If you don’t receive any notifications from the U.S. Customs and Border Protection (CBP) agency, supplier, or freight forwarder after a week, contact us, we will do what to connect you with our network of customs brokers.
Impact of Customs Delays on Businesses
Some common effects of delayed customs clearance for a business include:
- Supply chain and production schedule disruptions
- Missed customer delivery schedules
- Unsatisfactory customer experience
- Additional fees, such as demurrage and detention costs
- Inventory shortages
- Higher transport costs
SMBs and eCommerce businesses often rely on the prompt delivery of imports to keep running. Significant delays at the ports can lead to massive disruptions in operational processes.
6 Reasons Behind Customs Clearance Delays
If your goods are delayed at customs, chances are it’s due to one or more of the following:
1. Inaccurate Paperwork or Documentation Errors
Missing information or paperwork errors are the biggest causes of cargo delays at customs. Documents with missing originating or destination addresses and incorrect merchandise descriptions force customs officers to seek clarification.
Also, lacking specific product descriptions, differences in listed documentation and freight content, and inaccurate cargo value can prevent customs officials from pulling the cargo for a more detailed inspection, leading to delays.
2. Seasonality and Port Congestion
Seasonality or peak import/export seasons, when importers and businesses start preparing for the year-end holiday festivities by importing large shipment volumes, can affect how fast your cargo is cleared. Also, if there’s significant port congestion, the customs officials will take a bit longer before they get to your goods.
3. Safety Concerns
The Customs and Border Protection Agency (CBP) prioritizes border and national security. Therefore, shipments that are suspected to be dangerous are often flagged for detailed inspection.
Examples of cargo that might trigger heightened scrutiny include prohibited items, hazardous goods, imports requiring special permits, and shipments from countries historically known for manufacturing illicit or fake products.
4. Regulatory Problems
Some goods require additional permits or approvals from regulatory agencies. For example, food-related imports will require special permits from the Food and Drugs Administration agency (FDA). Cargos without these permits or declarations will likely be held until the approvals are provided.
5. Compliance Issues
Before any cargo can enter the country, they must meet all regulatory requirements. Customs will hold non-compliant shipments until the importer shows proof of compliance with all regulatory standards.
6. Political Tensions and Economic Instability
Economic and geopolitical problems can alter established trade policies, leading to trade disputes. These issues can lead to new regulations that can impact the smooth flow of goods between countries, leading to delays for cargo originating from such countries.
Key Strategies to Prevent Delays at Customs
If there are trade wars or political tension between countries, you can do little or nothing to prevent delays. But if you’re dealing with everyday issues that result in customs delays, here’s what to do:
- Prepare and provide accurate shipping documents.
- Make sure that your documents and cargo comply with all import regulations.
- Declare all sensitive or dangerous goods before they arrive.
- Submit your documentation through the Electronic Data Interchange (EDI) portal.
- Make allowances for longer wait times if you’re importing cargo during peak seasons and plan accordingly.
- Pay attention to new customs requirements and import regulations.
- Hire an experienced customs clearance or freight forwarding professional to handle your cargo imports.
What to Do if Your Order is Delayed at Customs
If the customs officials are holding your shipment for an unreasonably long time, here’s what you can do:
- Contact the Carrier: Contact your freight forwarder or carrier to determine what’s causing the delay. They can often give you specific and accurate reasons for the delay.
- Check Documentation: Ensure there are no errors in your documentation. If there are mistakes, rectify the issue quickly and resubmit the documents to customs.
- Consult Professionals: Talk to experienced customs clearance professionals who understand import regulations, have up-to-date knowledge of customs clearing, and can navigate the process to ensure speedy shipment clearance.
- Be Patient: Delays at customs can induce anxiety and panic among SMB and eCommerce business owners. Even if the process seems long-standing, exercise some patience, particularly during peak import seasons or festive periods.
- Inform Stakeholders: Inform all stakeholders, including employees, customers, and manufacturers, about the delay. This will help minimize friction and manage expectations.
- Respond Quickly: Attend to all information, documents, or clarification requests from customs promptly.
Role of Freight Forwarders in Mitigating Customs Clearance Delays
Since the biggest cause of customs clearance delays is errors in documentation and inaccurate information, you can easily avoid or minimize delays by hiring a digital freight forwarder like Ship4wd.
Our experienced freight forwarding professional can help SMBs and eCommerce business owners navigate the often difficult customs clearance process by doing the following:
- Provide error-free documentation, including the Importer Security Filing (ISF), to the customs authorities.
- Use our up-to-date knowledge of import regulations to expedite your clearance process.
- Ensure your cargo and documentation meets all regulatory compliance requirements.
- Pay all duties, tariffs, or taxes on time.
- Handle your power of attorney submissions.
- Liaise and communicate with customs officials to clear up any issues.
- Follow up with and handle any extra filing requirements.
- Reroute shipments to another port where there’s less congestion (if port congestion is the cause of the delay).
At Ship4wd, we provide professional customs clearance and freight forwarding services designed to streamline your freight import and delivery process.
So, if you’re looking to import or export your goods, want to avoid unnecessary customs clearance delays, and swiftly get your shipment out of customs, sign up with us today.
Frequently Asked Questions (FAQs)
Some of the most common questions we’re asked include the following:
How Long Does It Take for a Package to Go Through Customs?
Depending on a variety of factors including cargo size, type, documentation, shipping option, and season, customs clearance can take anywhere from 24 hours to 2 months (could be even longer depending on the circumstances).
What Are the Financial Implications of a Customs Clearance Delay?
If customs hold your cargo, you could incur the following costs:
- Detention costs
- Demurrage fees
- Product depreciation (particularly if it’s perishable cargo)
- Lost customers or clients
- Higher insurance premiums (prolonged cargo detention at the ports may mean extended insurance coverage)
- Supply chain disruptions
These can result in unplanned costs that can eat into an SMB’s and eCommerce business’s bottom line.
How Do Customs Clearance Procedures Vary by Country?
Regardless of the country, customs clearance is designed to do just one thing: inspect and approve or deny inbound cargo. However, the procedures often differ in terms of required documentation, the need for customs declarations, required taxes and duties, additional tariffs, inspection procedures, cargo clearing speed, penalties, and compliance requirements. So, you may need to look up country-specific customs clearance processes and requirements to avoid delays or penalties.
Conclusion
For SMB and eCommerce business owners, shipment delays at the port of entry can cause significant anxiety and unnecessary stress. However, unless the circumstances surrounding your shipment import are unusual, you can often get your cargo through customs pretty quickly with the help of Ship4wd’s experienced freight forwarders or customs brokers.
We’ll meticulously prepare and submit your documents, liaise with customs officials, handle any arising issues, promptly pay all duties and taxes, ensure your cargo meets regulatory standards, and work hard to get your goods out of the port and on their way to you quickly.
Sign up with us today for a swift, stress-free customs-clearing experience.