If you ship internationally, a clearance delay at customs is the last thing you want. 60% of consumers say fast shipping speeds have a significant to very significant influence on their decision to make a purchase.
Unfortunately, customs delays are all too common—usually because of a preventable product description or documentation error.
This blog will cover common issues like vague descriptions, unacceptable characters, and marketing names that can raise red flags on imports and exports. We’ll also review how to ensure your product description includes sufficient details and product classification for international shipping.
But first, let’s start with some customs clearance basics.
What Are Customs Delays?
Customs delays, or clearance delays, refer to packages or shipments being held at customs. Delays are often caused by errors or missing information on customs invoices. Customs invoices are required for all international shipments that are not documents.
22% of delays are caused by Harmonized Tariff Schedule (HTS) code errors, 21% by value and description discrepancies, 16% by inaccurate descriptions, and 9% due to incorrect country of origin.
The most common cause of customs delays, missing information, includes:
- Providing an incorrect phone number
- Providing an incorrect HTS code/harmonized code
- Not including a Receivers tax ID number (when required in countries like Argentina and Brazil)
- Not listing the terms of sale
- Listing an incorrect currency code
- Not filling out the type of import or export
Inaccurate product descriptions also represent a substantial percentage of errors, so let’s review the most common product description mistakes you should avoid to speed up customs clearance.
Most Common Product Description Errors That Cause International Shipping Delays
1. Vague Descriptions or Insufficient Details
Descriptors like “apparel,” “merchandise,” or “items” don’t offer enough information about the goods you are shipping.
Customs authorities need to know what type of goods are being imported. For example, “goods” could refer to home goods, textile goods, food and beverage goods, or hundreds of other types of goods.
For US imports, carriers must report to the Customs and Border Protection (CBP) and identify the goods being imported. If your product description is unclear, inaccurate, or too vague, your package may not get cleared.
When describing a product, omitting important details such as the fabric used or any additional features like embroidery or knitting can result in incorrect product classification at customs as well. For instance, instead of just saying “kids’ hoodie,” specify if it is made out of cotton or synthetic fibers.
2. Extraneous Details
Including extraneous details such as item codes, markdowns, or unrelated wording may increase the chances of customs inspection and delay. Only include essential information in your product description and leave out unnecessary details.
3. Unacceptable Characters
Using irrelevant numbers, random symbols, or SKU codes in your product description can cause confusion at customs, resulting in holds or delays. Avoid using these characters whenever possible.
4. Inappropriate Product Naming
Some sellers use marketing names or inappropriate descriptors in their product descriptions. These terms could include words that customs officials flag as health or security risks.
Terms that refer to alcohol, drugs, medicines, supplements, weapons, biological flora and fauna, and elements/metals (e.g. hydrogen, zinc) are at a higher risk for customs delays. For example, anything with a produce name (orange, plum, peach, cherry, etc.) going to Australia will be held. AU charges an inspection fee to make sure it isn’t fresh fruit and a disposal fee if you decide to abandon the package.
How To Write A Product Description
Good product descriptions for international shipments ensure proper commodity classifications, list applicable duties and taxes, and identify potential import restrictions.
Improper descriptions can lead to customs delays and holds. A good product description eliminates subjectivity and informs customs agencies of 3 key things:
- The nature of the product
- The composition of the product
- The intended use of the product
To ensure the proper classification of HTS code/harmonized code and collection of taxes and duties, customs brokers and agencies need the specific details of your shipment.
Remember to keep your product descriptions specific, succinct, not too vague, and free of any random symbols or inappropriate descriptors that might raise security concerns.
Other Errors That Prevent Customs Clearance
1. Improper Documentation
The majority of customs delays for international shipping are due to missing or incomplete information. These mistakes include incorrect values or quantities, incorrect HTS codes/harmonized codes, missing commercial invoices, unspecified currencies, and incorrect product codes. To receive customs clearance on freight shipments, certain documents may also be required.
2. Incorrect Quantity or Value of Goods
Customs delays will likely occur if you change the value or amount of goods in your shipment to evade taxes or duties, or if there are mistakes in the quantity or value of goods due to clerical errors.
Many customs agencies also have programs and algorithms to look for values that don’t seem right. For example, $10 for a laptop computer would likely get flagged.
3. Outstanding Taxes or Fees
If you don’t pay taxes or fees in a timely manner, your shipment will likely be delayed. If your shipment is worth more than $2500, consider using a customs broker. Brokers will handle taxes and the customs clearance process.
While brokers are an additional cost, they’ll likely save you more money than if you tried to navigate the international shipping process yourself.
4. Packing Regulation Violations
Depending on the regulations at the port of entry, you may have to follow specific packing guidelines. You should properly pack all shipments to avoid customs delays caused by packing violations.
Why Accurate Product Descriptions Are More Important Now
Customs agencies are now requiring merchants to provide an accurate product description in advance of the shipment arriving in the destination country. This past March, the European Union (EU) rolled out the second phase of an initiative called the Import Control System (ICS2). This initiative is designed to improve border security and safety through enhanced data collection for imported shipments. ICS2 requires specific data elements on every import, including an accurate product description. Without this, the package could be refused entry or held.
“It used to be that if you put anything in the Description of Goods field, the customs broker would fix it for you,” says Thomas Taggart, Head of Global Trade for Passport. “Now, customs agencies are putting that responsibility back on the shipper. If you don’t provide enough information or if the product description doesn’t tell the customs authority exactly what’s in the box, they are likely to take a closer look at your shipment.”
How Jay Group Can Help With International Shipping
Choosing the right 3PL can prevent expensive hold-ups during customs clearance. Your shipments get cleared faster and at a reduced cost when you work with an experienced partner who understands the clearance delay process and provides eCommerce fulfillment solutions.
Jay Group’s team works with carriers such as Passport who have a compliance team of LCBs to help your business navigate the customs clearance process.
Want to avoid customs delays and ensure you have the proper product description on every shipment? Contact our team to learn more about why a 3PL fulfillment partner could be right for you.
