Course 4: Customs Affairs

Module 2: International Customs Practice

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There has been a ton of work and progression to move the global economy towards free and open trade. Most governments still impose restrictions on goods entering and leaving their countries. This is usually done through the introduction of import and export control, which is facilitated by the country’s customs authority. It is important to understand that fulfilling these mandates means mainly focusing on types, amounts and values of goods imported into their territories rather than the types, amounts and values of goods imported into their territories. This is well reflected in the fact that traded goods are subject to far fewer export controls than import controls. This means that, depending on whether you are exporting or importing, you will be either directly interacting with, or via a clearing agent with either country’s customs authority or that of a foreign country.

This module covers the role of customs in an international trade transaction, which includes registration as an exporter for customs purposes. It also covers customs control measures, including both tariffs and non-tariffs and the basis for their application. Examples of this include the types of goods’ description, their origin and their value. The module also breaks down procedures for exports, such as documentary requirements. This also includes customs clearance procedures for imports and their documentary requirements. Once these topics have been thoroughly explained, the next step is to explain key terminology and processes, such as claiming duty drawbacks, refunds and rebates for imported components used in products intended for export or subsequently exported.

The first topic of the module is focused specifically on the role of customs in an international trade transaction and registration as an exporter for customs purposes. We will look into the three primary functions of customs officials that need to be performed in the clearance of goods for export or import purposes. Followed by a run down of the correct documentation required to support the clearance of all goods concerned. We then round the topic off with the duties and taxes collected on particular goods, if applicable.

By the end of this module you should be able to describe the role played by customs authorities in international trade transactions. Explain the importance of registration as an exporter for customs purposes and be able to access information relevant to the particular procedures of your country’s exporter registration process. You should also be able to identify the various customs control measures that customs authorities are tasked with implementing. Identify the information customs authorities require to administer customs procedures and implement customs control measures effectively. You should also be capable of indicating the documentary requirements for successful customs clearance for both imports and exports, and identify the circumstances under which a rebate, drawback and refund apply to an exporter or importer.