What Is Customs Clearance?

Customs clearance is the procedure of declaring goods to a country's customs authority so that they can be lawfully brought in or taken out. The authority checks the declaration, determines the duty and VAT due, and then releases the goods. Under the Union Customs Code (UCC), release happens once the conditions of the procedure are met and the declaration data has been verified or accepted without verification (Article 194 UCC).

Clearance applies to goods crossing a customs border in either direction, so it is not specific to one country. The examples below use the United Kingdom and the EU, because since Brexit the movement of goods between them requires customs formalities. Need help on the UK side? See customs clearance from the UK.

Import clearance vs export clearance

Import clearance is the declaration made when goods arrive from another customs territory. It sets out the procedure the goods are placed under (for example release for free circulation), and import duty and import VAT depend on it. In the UK, a full import declaration is made in HMRC's Customs Declaration Service (CDS) (GOV.UK: full import declaration).

Export clearance is the declaration made when goods leave a territory. In the UK, an export declaration is also made through CDS, and you need, among other things, the EORI numbers of all parties involved, the commodity code, value, weight and packaging, and details of the destination and transport (GOV.UK: export declaration online).

These are two separate declarations with different obligations: the importer deals with duty, import VAT and import controls, while the exporter deals with proof of export and any export licences. For a practical look at both directions, see how to submit a UK customs declaration and export to the UK.

Who is involved in customs clearance?

• The declarant. The person who lodges the declaration. Under the UCC, this can be anyone who is able to provide all the information required for the procedure and to present the goods to customs; as a rule the declarant must be established in the EU customs territory, with exceptions including transit and temporary admission (Article 170 UCC).
• The customs representative (customs agent or broker). Anyone may appoint one. Representation is direct where the representative acts in the name of and on behalf of another person, and indirect where the representative acts in their own name but on behalf of another person (Article 18 UCC). The representative must tell customs which of the two applies (Article 19 UCC).
• The carrier. Responsible for ensuring that a safety and security declaration (the entry summary declaration, ENS) is made before the goods arrive in Great Britain; the carrier can make it themselves or use a third party, such as a customs agent (GOV.UK: entry summary declaration).
• The customs authority. In the UK this is HMRC; in the EU it is the customs administration of the relevant Member State (in Poland, the National Revenue Administration – Krajowa Administracja Skarbowa, or KAS). It accepts the declaration, analyses risk, may verify it, and releases the goods.

Using an agent does not remove all of your responsibilities. HMRC states that when you appoint someone to deal with customs for you, you remain responsible for taking reasonable care over declarations, the agent must have your written instructions saying whether they act directly or indirectly, and liability depends on the scope of the services and the contract (GOV.UK: appointing someone to deal with customs). Under the UCC, the customs debtor is the declarant and, in the case of indirect representation, also the person on whose behalf the declaration was made (Article 77(3) UCC).

How customs clearance works, step by step

1. Prepare the data. Gather EORI numbers, the commodity code, value, description, quantity, packaging, consignor and consignee details, and transport information. For an import declaration, HMRC lists, among other things, the customs procedure code, commodity code, consignor and consignee, type, quantity and packaging of the goods, means and costs of transport, currency and valuation method, and certificates and licences (see the link above). Classification of the goods is explained in the article on HS codes.
2. Safety and security declaration (when required). For goods entering Great Britain, the ENS is made before they arrive, and can be submitted up to 200 days in advance. Customs use it for risk analysis and to select consignments for inspection on arrival. See what an ENS is.
3. Customs declaration. It is submitted electronically (in the UK, through CDS). Under the UCC, a declaration is accepted once the goods have been presented to customs, and the date of acceptance is the date used for applying the provisions of the procedure (Article 172 UCC). A declaration can be lodged in advance, but if the goods are not presented within 30 days of lodging, the declaration is considered not to have been lodged (Article 171 UCC). HMRC guidance: you can sometimes lodge a declaration up to 30 days before the goods arrive, but it is only formally accepted once the goods have arrived and been presented.
4. Risk analysis and checks. Customs authorities may carry out any controls they deem necessary, for example examining the goods, taking samples, or verifying the declaration and documents (Article 46 UCC). They may also require additional documents or examine the goods (Article 188 UCC). HMRC may likewise ask for supporting documents before releasing goods. If your goods are detained, see what to do if a customs check holds your goods.
5. Duty and VAT. On import, the amounts due are determined from the declaration. In the UK, HMRC tells you the amount after the declaration is accepted, and duty must be paid before the goods are released; regular importers can set up a duty deferment account and pay by a single monthly direct debit instead of for each consignment. Import VAT is usually paid on import, but a UK VAT-registered business can account for it on its VAT return (postponed VAT accounting). In the EU, for goods subject to import duty released for free circulation, the customs debt is incurred at the moment the declaration is accepted (Article 77 UCC). See also how to settle VAT on import and the differences between customs duty and VAT.
6. Release of the goods. Once the conditions are met and the declaration data has been verified or accepted without verification, customs release the goods (Article 194 UCC). On export, the goods then leave the territory; many border locations notify HMRC of the export through their own systems, and at the others you will be told whether you need to report the arrival and departure of the goods yourself.
7. Corrections. The declarant may apply to amend the declaration after it has been accepted, but not after customs have informed them that they intend to examine the goods, have established that the data is incorrect, or have released the goods; after release, amendment is possible only to a limited extent, within three years of the date of acceptance (Article 173 UCC). See what to do about an error in a customs declaration.

On the UK side, postponed VAT accounting is one way import VAT can be handled.

Customs procedures, including in the UK

Every customs declaration relates to a specific customs procedure. On import, the most common is release for free circulation; if the goods are subject to import duty, the customs debt is incurred when the declaration is accepted (Article 77 UCC). EU law also distinguishes four categories of special procedures: transit (external and internal), storage (customs warehousing and free zones), specific use (temporary admission and end-use) and processing (inward and outward processing) (Article 210 UCC). Some of them, including processing, temporary admission, end-use and operating a customs warehouse, require authorisation from the customs authorities (Article 211 UCC).

The UK follows a similar logic. HMRC describes special procedures as a way to store, temporarily use, process or repair goods with partial or full relief from duty, or with duty suspended. If you do not have an authorisation, in some situations you can use "authorisation by declaration": up to 10 times in 12 months and for goods worth up to £500,000 per consignment (the limits do not apply to temporary admission), usually with a guarantee covering the full amount of duty (GOV.UK: using a special procedure without authorisation). Goods moving from Great Britain to the EU are also often moved under transit: HMRC states that movements starting in Great Britain almost always have T1 status (GOV.UK: transit from Great Britain); details are in the article how T1 transit works. More on special procedures: UK special procedures.

What documents are needed?

The set depends on the goods and the procedure. For an import declaration, HMRC lists, among other things: the customs procedure code, commodity code, consignor and consignee, type, quantity and packaging of the goods, means and costs of transport, currency and valuation method, and certificates and licences. On export, the person transporting the goods needs the invoice and any export licences or certificates. In practice this usually means:

• a commercial invoice and packing list;
• a transport document (for example a CMR, air waybill or bill of lading; see the note on the CMR);
• the EORI numbers of the parties (see how to get an EORI number);
• licences, certificates or proof of origin where the goods or preferential tariff treatment require them.

Common mistakes

• Missing or incorrect EORI number. HMRC states that you may need an EORI number if you move goods between Great Britain and another country, including the EU (GOV.UK: EORI).
• No ENS or GMR before departure. For ports that use GVMS you need a GMR, and without it you risk delays at the port (GOV.UK: GVMS). See GMR and GVMS.
• Declaration lodged too early. A declaration lodged before the goods are presented is considered not lodged if the goods are not presented within 30 days (Article 171 UCC).
• Unclear status of the representative. A person who does not state that they are acting as a customs representative is considered to be acting in their own name and on their own behalf (Article 19 UCC).
• Incorrect data discovered too late. Once customs have announced an intention to examine the goods, or after the goods have been released, amendment is limited (Article 173 UCC), and underpaid duty requires a separate procedure; HMRC explains what to do about underpaid duty and who is liable for the debt.

How long does customs clearance take?

There is no single official time. It depends on whether the declaration is complete and correct, whether the goods are selected for inspection, and whether licences or certificates are needed. The UCC provides for release of the goods as soon as the declaration data has been verified or accepted without verification (Article 194 UCC), so complete data submitted in advance is what shortens the process. For the UK–Poland route, see how long UK–PL customs clearance takes.

Example: clearance between Great Britain and the EU after Brexit

Before Brexit, goods moved between Great Britain and EU Member States within the single market. Since the UK left the EU, a consignment from Great Britain to Poland is an export from one customs territory and an import into another. You therefore need an export declaration in Great Britain and an import declaration in the EU; in the opposite direction, an export declaration in the EU and an import declaration in Great Britain. EORI numbers are needed on both sides. Goods arriving in Great Britain also require an ENS, and every movement between the EU and Great Britain through a port that uses the Goods Vehicle Movement Service requires a GMR (GMR and GVMS). Practical guides: import from the UK to Poland and T1 transit.

When can a customs agency help?

This article describes the process in general terms. If you need an agent to prepare and lodge declarations for goods travelling to or from Great Britain, see customs clearance from the UK, check the costs or contact us. The declaration itself is covered in the article what is a customs declaration.

Frequently asked questions