Common Customs Issues Faced by Importers and Exporters in 2024
Common Customs Issues Faced by Importers and Exporters in 2024 Global trade plays a pivotal role in a country’s economy. A country’s focus on imports signifies robust local demand and a thriving economy, while a significant export volume creates numerous job opportunities. Thus, to keep the economy stable, it is imperative to maintain a balance between imports and exports, which is heavily influenced by the volume of trade. The volume of global trade is increasing progressively. As per Global Trade Outlook’s recent report “The volume of global merchandise trade is predicted to increase by 2.6% in 2024 and 3.3% in 2025, after declining by 1.2% more than anticipated in 2023.” With the prediction of this massive rise in the number of trades, there come a lot of hurdles and challenges that importers and exporters have to deal with to become successful in the trading world. When you are well informed about all the customs issues that come across importers and exporters prior to trading, you can make better plans on how to tackle them. In this blog, we will take you through all the common challenges and equip you with simple solutions. Changes in customs regulations in 2024 Before delving into the challenges, let’s first examine any modifications in the trading and customs regulations. There exist separate regulations for both imports and exports: Customs import regulations Customs export regulations The UK Government introduced a series of changes in the Border Target Operating Model for 2024. These changes are specifically designed for importers of animals, plants, and Food & Feed Systems. January 31, 2024: There are 3 risk categories for the products (Low, medium, and high). Export health certifications are required for medium and high risk commodities. Certain products, such as medications, plastics, or cosmetics containing animal ingredients, might need to be declared with the IPAFFS. A phytosanitary certificate and an IPAFFS pre-notification for medium and high risk commodities are required for plants and plant products. Fruits and vegetables in the EU are mostly low-risk. April 30, 2024: Depending on the risk level, document and physical checks at designated Border Control Posts. Inspections of EU plants and products deemed high risk are moved to specific Border Control Posts. Oct 31, 2024: Safety and security declarations for imports into the EU will begin on this date. Details will be provided closer to the date. Common customs issues Customs clearance involves ensuring that all imported goods are compliant with the governing rules and regulations. Most traders can find it problematic and complicated, leading to customs clearance delays. Major customs clearance problems are discussed below: Customs documentation Handling custom documents for imports and exports is a major challenge as it requires keen attention and time to be done accurately. According to a report by the Federation of Small Business (FSB), “Nearly 10% of small businesses in the UK have come to an end in the previous five years due to complicated customs documents.” The common documents are the following: Bill of lading The bill of lading acts as a contract between the carrier and shipper. It provides details about tracking the parcel and confirms that the products are received for the shipment. The common bill of lading issues are: Missing or incorrect information, which can lead to clearance delays. Getting the original paper copy for release can be costly and time-consuming. Commercial invoice The commercial invoice provides information about the goods’ quantity and total value. Moreover, it helps calculate the amount of duty and tax to be paid. The common commercial invoice issues are: Missing details, such as product descriptions or origin information, can result in clearance rejections. Inconsistencies between the invoice value and the real value may result in delays and inspections by customs. Packing list A packing list is a comprehensive inventory of the shipment that includes the quantities and contents of every package. The common packing list issues are: Discrepancies in quantity or inaccurate itemisation can result in physical inspection delays. The missing packing list, which can completely impede clearance Certificate of origin The certificate of origin shows the country in which the goods are produced. It helps to determine whether there are any trade restrictions or if a trade agreement is eligible. The common certificate of origin issues are: Acquiring them may necessitate intricate procedures and authentication by governmental entities, resulting in prolonged periods of time. Errors in the certificate may give rise to customs rejections. Adjusting to new customs rules and regulations Customs rules and regulations for importing and exporting countries can change anytime, becoming a nightmare for global traders. Thus, having access to AI-driven customs declaration software that automatically adjusts to any updates is a key to stress-free trading. iCustoms is at the top of the market in this regard, providing you with a sophisticated AI-driven tool, i.e. CDS, to keep you alert of all the fluctuations in customs regulations. The following are some ways that importers and exporters in international trading face difficulties while responding to new customs laws and regulations: Intricacy and Insufficient clarity Updated rules may be hidden: If new regulations are not extensively announced, businesses may not be aware of significant modifications. Uncertainty in interpretation: New rules may be written in technical language, making it difficult to understand their precise intent and scope. Differential implementation: Uncertainty arises from the possibility that new regulations may be implemented differently in various nations or even within the same customs agency. Limitations on time and resources Adaptation costs: Organisations must devote time and money to learning new rules, revising protocols, and retraining employees. Shipments delayed: Uncertainty about new rules may cause delays at customs as documentation is examined or resubmitted. Enhanced compliance costs: New regulations may require additional paperwork or inspections, which would raise operating expenses. Competitive disadvantage Unequal information access: Smaller organisations may be at a disadvantage since larger enterprises with specialised compliance teams may adjust more quickly. Supply chain disruption: Delays caused by adjusting to new regulations may affect delivery
