What are the Most Common Documentation Errors that Cause Import Delays

If you are involved in international shipping, you must know how tricky and complex the customs process can be. The biggest nightmare for importers is customs delay, which is all too common due to documentation errors committed by preventable human error. As per DHL, documentation errors are the number one factor behind an overwhelming 80% of customs delays. The fact that  60% of customers expect timely deliveries of goods means that a delay is the last thing you want. Here is a list of the most common documentation errors you should look out for to avoid that:

1. Incomplete Documentation

Having incomplete documentation is a huge deal-breaker in the import clearance process. Make sure that your paperwork includes all permits and licenses for paperwork, including the Bill of Lading and Customs invoice, which are the most critical documents for most shipments. The customs invoice is needed to determine whether any restrictions apply to your shipment as well as access duties, fees, and taxes that are to be paid.

2. Incomplete Consignee or Shipper Information

Incorrectly filled information or failing to provide one, as well as something as trivial as a spelling error, could spell trouble. When preparing your import documents, see to it that your invoice clearly shows your company’s name and complete address. If you are simply an importer on record, make sure that it also contains the name, address, and tax ID of the company to which the shipment is being delivered for a correct custom entry.

3. Incorrect Country of Origin

An incorrect country of origin can also stall the document process, as it directly influences the payable tax and other duties for a given import shipment. All shipments carry a country of origin, which informs customs as to where the product was manufactured or created. If you get the country of origin wrong, you are likely to face delays, fines, and seizure at worst.

4. Wrongly Declared Currency

This is another common error encountered in customs documentation. Although the dollar is the standard currency in which most transactions occur,  at times, goods are purchased and sold in other currencies like GBP, EUR, or DKK. Be careful to convert the value of goods into VND on the customs forms to avoid customs issues later on.

5. Inaccurate Product Description

The purpose of product descriptions is to let customs officers know about the nature and purpose of an imported product. If the product description is inaccurate or inconsistent, this can open you up to detailed scrutiny by customs officials and render you ineligible for entry into the country.

A potential error is to name your product using inappropriate descriptors that could be flagged as health or security risks, or using irrelevant numbers, random symbols, or SKU codes in your product description, as this can incur administrative fines and extend the time for customs clearance.

6. Wrong HS Code

A core part of your customs paper week is the tariff or HS code – a six to 10-digit code that allows customs to determine what is being brought into the country and the taxes, fees, and duties to be levied on the shipment. An incorrectly filled or missing  HS code or Harmonized System (HS) code is attributed to a considerable number of delays in customs, including excess costs for clearing customs, so do your research to identify the correct HS code for your product category.

Don’t rely on purchase invoices or contract documents or invoices to get the product label; instead, check the actual product label to adjust the invoice and contract accordingly.

7. Incorrect Value and/or Quantity of Goods

An error in the value or quantity of goods listed on the invoice can expose you to customs delays. You must be careful when filing the correct quantity of goods and the unit value for each item on your invoice, as even a single typo can result in a census error. For example, if you are importing 10 electronic devices on one pallet, you should not forget to enter both 1 and 0, not just 1.

8. Missing Signature On Invoice Or Contract

The presence of a seal in transactions should be consistent with the provisions of law. When companies are involved in a contract, a signature can suffice, but try to get a stamp from the import and export parties, especially when using commercial invoices and purchase orders generated from automated systems. The lack of a seal or signature on an invoice or contract can cause your application to be dismissed.

Conclusion

Custom delays can be a pain, but knowing the most common paperwork can spare you the hassle and ensure your business keeps up and running. An error on your customs documentation can prove to be costly, leaving your shipment in limbo and leading to unwanted shipment delays that can ruin your business process. Being mindful of the country you are shipping or importing to can guarantee a successful customs process and ensure faster shipping speeds to satisfy your customers.