Customs clearance is the process of obtaining permission from a country's border authorities to import goods. It requires correct documentation, accurate HS code classification, payment of applicable duties and taxes, and — for regulated product categories — presentation of compliance certificates. Errors in any of these cause delays, fines, or confiscation.
How to Calculate Landed Cost
Landed cost is the true total cost of importing goods — not just the factory price. Many buyers are surprised by the gap between the price they negotiated with the factory and the price they actually pay to get goods into their warehouse. Calculate landed cost before placing every order.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Factory (FOB) price | Base | Negotiated with supplier |
| Inland freight to port (China) | $100–800 | Depends on factory location and container size |
| Export customs clearance (China) | $50–150 | Origin handling and documentation |
| Ocean freight (FCL) | $800–3,500+ | Route, season, and market rate dependent |
| Marine cargo insurance | 0.3–0.5% of CIF value | Recommended for all shipments |
| Import duties | 0–35%+ of CIF value | Varies by product and destination country |
| VAT / GST at import | 0–25% of dutiable value | Applies in EU, UK, Australia, most African markets |
| Customs broker fees | $150–500 | Destination country clearance |
| Port handling / terminal fees | $200–600 | Varies by port |
| Local delivery (last mile) | $100–800 | Port to warehouse |
| Total landed cost: FOB price + 15–45% depending on product and destination | ||
What Is an HS Code and Why It Matters
The Harmonized System (HS) code is an internationally standardised numerical classification for traded goods. Every product category has a specific HS code, and the code determines the import duty rate applied at the destination country's customs authority.
Using the wrong HS code — even accidentally — can result in underpayment of duties (creating legal liability), overpayment of duties (unnecessary cost), or shipment delays while customs reclassifies the goods. Always verify the correct HS code with a licensed customs broker before shipping.
Country-by-Country Customs Guide
US Customs and Border Protection. Section 301 tariffs on Chinese goods remain in effect — additional 7.5–25%+ on many product categories. Formal entry required for shipments over $2,500. FDA approval required for food, drugs, medical devices.
Post-Brexit, the UK applies its own Global Tariff. Most goods face UK customs duty plus 20% VAT at import. Products previously CE marked need UKCA marking for UK market. Commodity codes use 10-digit Trade Tariff.
Single customs union — one clearance covers all 27 member states. Common External Tariff applies. VAT at import varies by member state (17–27%). CE marking, RoHS, REACH, and WEEE compliance required for applicable products.
Nigerian Customs Service processes all imports through Apapa or Tin Can Island (Lagos), Onne, or Apapa. SONCAP certification required for regulated products. NAFDAC registration for food, drugs, cosmetics, and medical products. Import levy varies by product.
Kenya Revenue Authority manages customs. KEBS conformity assessment (PVoC) required for many product categories — inspection at origin before shipment. Port of Mombasa is the primary entry point. EAC common external tariff applies.
Zakat, Tax and Customs Authority manages Saudi customs. SASO conformity certification required for regulated products. SALEEM program for medical devices. 15% VAT applies on most imports. Port of Jeddah (Islamic Port) is primary entry for Red Sea.
Jebel Ali Free Zone (JAFZA) is the world's 9th largest port and a major regional hub. 5% VAT applies. Many product categories have 0% or 5% customs duty. Dubai is commonly used as a re-export hub for GCC and East Africa.
Australia-China Free Trade Agreement (ChAFTA) provides preferential duty rates for many products. 10% GST applies on imports. Strict biosecurity rules — quarantine inspection for certain product categories. Most goods formally entered at Melbourne, Sydney, or Brisbane.
Required Customs Documents — Standard Set
Must show seller/buyer details, product description, HS code, quantity, unit price, total value, and incoterms. Errors here are the most common cause of customs delays.
Detailed breakdown of each package: carton numbers, dimensions, weights (gross and net), and contents. Must match the commercial invoice exactly.
The title document for sea freight. Issued by the shipping line. Required to release goods at destination. Surrendered in exchange for delivery order.
Confirms goods were manufactured in China. Required to claim preferential duty rates under free trade agreements (ChAFTA, etc.) and for some destination country requirements.
Pre-shipment inspection report. Required by some importing countries (Nigeria, Kenya, Saudi Arabia) as part of their conformity assessment programs.
SONCAP, NAFDAC, SASO, KEBS PVoC, CE, FDA — depending on product category and destination. Coordinated before goods ship to avoid port delays.