Customs clearance is a key part of importing and exporting goods. For businesses that trade internationally, understanding customs clearance in London is crucial to avoid delays and extra costs. Whether you’re moving goods into or out of the UK, following the right steps can make a big difference in keeping your business running smoothly. For companies like Sky & Moon Ltd, which rely on the smooth movement of goods, mastering customs clearance is critical to maintaining a competitive edge. This blog aims to demystify the process, highlight the key requirements, and offer tips on how businesses can streamline their operations.

What Is Customs Clearance?

Customs clearance is the process of getting permission from the government to move goods across borders. It involves checking that all the paperwork is in order, paying any taxes or duties, and making sure the goods meet all legal requirements. In London, one of the UK’s busiest trading hubs, customs clearance is especially important for businesses dealing with international shipments.

How Has Brexit Affected Customs Clearance?

Before Brexit, goods moved freely between the UK and European Union (EU) without needing customs clearance. However, since the UK left the EU, all goods moving between the UK and EU must now go through customs checks. This means more paperwork and stricter rules.

For example, businesses now need to provide proof of where their goods come from (rules of origin) and meet new regulatory requirements. This change can be challenging, especially for companies that were used to the easier trading rules before Brexit.

Why Is Customs Clearance Important?

  1. Avoid Delays: Goods can get stuck at the border if customs clearance isn’t handled properly. Delays can cost money and lead to unhappy customers.
  2. Save on Costs: If you don’t follow customs rules, you may face fines or extra fees. On the other hand, using trade agreements like the UK-EU Trade and Cooperation Agreement (TCA) can help you avoid tariffs on certain goods if they meet the rules.
  3. Stay Compliant: Failing to follow customs laws can result in serious legal problems, including the seizure of your goods. Understanding the process helps ensure your goods move without issues.

Steps to Customs Clearance in London

Here’s a simple guide to the customs clearance process in London:

Step 1: Prepare Your Documents

You need to have all your paperwork ready before your goods reach the border. Common documents include:

  • Commercial Invoice: This shows the value and details of the goods.
  • Bill of Lading or Airway Bill: A transport document that proves the goods are being shipped.
  • Customs Declaration: A form you submit to the UK customs authorities with details about the goods and any taxes or duties that need to be paid.

Having these documents prepared in advance is important to avoid delays.

Step 2: Submit to Customs

Once your documents are ready, you submit them to UK customs. In London, this is done through the National Clearance Hub. You can submit these forms electronically, and in most cases, it takes about two hours for the goods to clear.

Step 3: Pay Taxes and Duties

You will need to pay any taxes or customs duties before your goods are released. In the UK, this often includes:

  • VAT (Value Added Tax): The standard VAT rate is 20%, though it can be lower for certain goods.
  • Customs Duty: The duty amount depends on the type of goods and their value.

Goods coming from the EU may qualify for zero tariffs under the TCA, but only if they meet specific rules.

Step 4: Goods Inspection and Release

In some cases, customs may decide to inspect the goods before releasing them. This can happen if there are concerns about the contents or if the paperwork doesn’t match the shipment. Once everything is cleared, the goods are released and can continue on their way.

Common Challenges in Customs Clearance in London

  1. Paperwork Issues: Mistakes in documents can cause delays. Make sure all forms are filled out correctly.
  2. Regulation Confusion: Customs laws have become more complicated after Brexit. If you’re unsure about the rules, it’s helpful to work with a customs broker or expert.
  3. Unexpected Delays: Even with proper planning, delays can still happen. Having a good freight forwarder or customs agent can help solve problems quickly.

How Sky and Moon Ltd Can Help in Customs Clearance in London

For businesses looking to simplify customs clearance in London, Sky and Moon Ltd (Sky and Moon) offers expert services to help navigate the process. Moreover, our services include Sea Freight, Road Freight, Air Freight, Transport and more, accordingly. With experience in handling the complexities of customs clearance, they ensure your goods move smoothly, avoid delays, and comply with all UK laws.

Conclusion

Customs clearance in London can be complex, especially with the changes brought by Brexit. However, by following the right steps, preparing documents in advance, and understanding the rules, businesses can reduce the risk of delays and extra costs.

Whether you’re a small importer or a large exporter, staying informed about customs procedures is key to keeping your supply chain running smoothly. If you need help with your customs process, Sky and Moon Ltd is ready to assist you every step of the way.