In import-export operations, customs procedures are one of the key stages that determine whether goods are cleared on schedule. Especially for air freight, even a small error in the declaration or document preparation can delay a shipment, incur storage and demurrage costs, or disrupt a company's production and delivery plans.
When Long Thanh International Airport becomes operational, it will be a large-scale air transport and logistics hub for Vietnam. The volume of import-export cargo through the airport is expected to rise rapidly, bringing with it demands for accuracy and compliance during customs declaration.
So what mistakes do businesses commonly make when handling customs procedures? How can risks be limited and clearance time shortened? Let's explore this in detail in the article below.
Why Do Businesses Easily Make Customs Mistakes?
Customs procedures today are carried out mainly on the electronic system; however, businesses still have to prepare complete documentation and comply with many regulations relating to:
- HS code classification.
- Goods management policy.
- Import-export duties.
- Specialized inspection.
- Certificate of Origin (C/O).
- Import or export licenses.
If they do not keep up with regulations or lack practical experience, businesses can easily make errors during the declaration process.
1. Declaring the Wrong HS Code
This is the most common mistake and also the one with the most consequences.
Why is the HS code important?
The HS code determines:
- Import duty.
- Value-added tax (VAT).
- Special consumption tax (if any).
- The management policy.
- Import conditions.
- Specialized inspection requirements.
If the HS code is declared incorrectly, a business may:
- Be subject to back-tax collection.
- Face administrative penalties.
- Have to amend the declaration.
- Experience delayed clearance.
- Be subject to a post-clearance audit.
How to fix it
- Look up the HS code according to the true nature of the goods.
- Refer to the current tariff schedule.
- Prepare a catalogue or technical documentation.
- Ask a customs consultancy for support when the goods are complex.
2. Missing or Inconsistent Documents
A standard set of documents includes:
- Commercial Invoice.
- Packing List.
- Air Waybill.
- Foreign trade contract.
- Certificate of Origin (if available).
- Catalogue.
- Specialized license (if subject to management).
Many businesses run into problems such as:
- Incorrect quantity.
- Incorrect weight.
- Incorrect product name.
- Incorrect Incoterms.
- Incorrect unit price.
- Information that is inconsistent between documents.
This leads customs to request explanations or additional paperwork.
How to fix it
Check all documents before transmitting the declaration and make sure the key information is completely consistent.
3. Not Checking the Product Policy
Not all goods are imported or exported through the same process. Some items require:
- Import license.
- Plant quarantine.
- Animal quarantine.
- Quality inspection.
- Food safety inspection.
- Declaration of conformity.
- Certificate of conformity with standards.
If a business does not check beforehand, the goods may be held until the procedures are completed.
How to fix it
Look up the management policy for each item right from the time the foreign trade contract is signed, and prepare all paperwork before the goods arrive at the airport.
4. Declaring the Wrong Customs Value
The declared value is the basis for calculating taxes. Common errors include:
- Not adding the additions required by regulation.
- Declaring the wrong delivery terms.
- Incorrect exchange rate.
- Incorrect unit price.
- Missing freight or insurance costs (where they must be included in the value).
The consequences can be:
- Back-tax collection.
- Value adjustment.
- Post-clearance audit.
- Administrative penalties.
5. Late Tax Payment
After the declaration is accepted, the business must fulfill its tax obligations as required. If payment is late:
- The goods are not yet cleared.
- Storage costs are incurred.
- Delivery to customers is delayed.
Solution
Use electronic tax payment and proactively monitor the payment status to avoid disrupting the clearance process.
6. Declaring the Wrong Product Name
Some businesses declare only the commercial name instead of a full description of the goods. For example:
Do not write:
- Motor
- Chemical
- Plastic
Instead, describe them specifically:
- AC electric motor with a capacity of…
- Chemical used in the manufacture of…
- Virgin Polypropylene resin pellets…
A clear product name helps customs easily determine the HS code and management policy.
7. Not Preparing Documents for Specialized Inspection
Many businesses only start applying for licenses once the goods have arrived at the airport. This prolongs clearance time. The types of documents that may be needed include:
- Quarantine.
- Cosmetics declaration.
- Quality inspection.
- Declaration of conformity.
- Import license.
- Food safety certificate.
How to fix it
Prepare specialized documents before opening the declaration to avoid waiting time.
8. Not Monitoring the Declaration Status
After transmitting the declaration, businesses need to monitor regularly:
- The channel assignment result.
- Requests for additional documents.
- Notifications from the customs authority.
- The tax payment status.
If these notifications are missed, the processing will be prolonged.
9. Not Keeping Records After Clearance
Many businesses focus only on receiving the goods and forget to keep records. Meanwhile, customs may carry out a post-clearance audit. Businesses should keep: the declaration, invoice, packing list, air waybill, contract, C/O, specialized inspection documents, tax payment records, and so on.
10. Doing It Yourself Without Experience
For new businesses, handling the procedures alone can pose many difficulties, such as:
- Not knowing how to prepare the documents.
- Difficulty determining the HS code.
- Not understanding the regulations.
- Spending a lot of time on issues that arise.
In these cases, using professional customs services is the solution to minimize risks and optimize costs.
Tips to Limit Mistakes
To ensure smooth clearance, businesses should:
- Prepare documents right from the time the contract is signed.
- Check the HS code before importing.
- Look up the product policy.
- Prepare specialized licenses.
- Check all documents before transmitting the declaration.
- Pay taxes on time.
- Monitor the processing status on the system.
- Keep complete records after clearance.
- Work with a reputable customs service provider for complex shipments.
Conclusion
Mistakes during customs clearance not only slow down the process but can also cause financial losses and damage a company's reputation. Preparing complete documentation, declaring accurately and staying up to date with new regulations are the key factors for fast, smooth clearance.
For businesses that frequently import and export by air, choosing a customs service at Long Thanh Airport is an effective solution to limit errors, optimize the process and improve logistics efficiency.
We are committed to delivering optimal solutions that save time, cut costs and minimize risks throughout the import-export process via Long Thanh Airport. Contact Embassy Freight now via Hotline: 0936911656 for prompt advice and a quote!
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