Cross-border e-commerce logistics: analysis of customs clearance, tax number and logistics processing procedures

The smooth operation of cross-border e-commerce is inseparable from efficient logistics services, especially in the processing link of the customs of the recipient country. In order to ensure smooth customs clearance and final delivery of imported goods, it is crucial to understand the relevant processes.

Clearing Customs

Customs clearance refers to the necessary procedures for formally declaring import, export and transshipment goods to the customs and completing corresponding procedures to comply with national regulations. During this process, parties involved must ensure the accuracy of all documents and filing information to avoid delays and unnecessary costs.

Tax Number

The taxpayer identification number, often referred to as the “tax ID number”, is a unique identification number compiled by the tax department and assigned to each taxpayer. In some countries, such as Brazil and Australia, personal tax identification numbers also exist. The tax number is not only used for customs clearance, but also affects the ability to declare the amount. Especially when the value of the declared goods is high, the personal tax number may not meet the customs clearance requirements.

Quarantine Inspection

Inspection and quarantine include health quarantine and commodity quality inspection, etc., mainly for the certification and inspection of animals, plants and electronic products. Different types of goods may face different levels of inspection regulations upon entry. Understanding the quarantine requirements of the destination country can reduce the risk of goods being detained.

Custom Duty/Tax

Tariffs refer to taxes and fees levied by national customs on entry and exit goods. Most countries have set a threshold for declaring customs duties. If the value of the goods exceeds the tax exemption, you will need to pay customs duties. Before shipping, sellers and buyers should confirm the tariff policy of the destination country to avoid customs clearance difficulties caused by high tariffs.

Package circulation problem

In the logistics processing of cross-border e-commerce, several processing situations may occur after the package reaches the recipient country.

  1. Abandon/Return: If the package cannot be successfully delivered for some reason, it may be discarded or returned. In some countries, a “handling fee” may apply even if the package is discarded. Relatively speaking, the return of small packages is usually free, while commercial express delivery requires 3 to 5 times the return fee.

  2. Waiting Collection: If the package cannot be successfully delivered, it will usually be temporarily stored in the local logistics service center for up to 1 to 3 weeks. If the package is not picked up within the specified time, the package may be discarded or returned.

  3. Lost: When a package is confirmed to be lost, the post office usually provides limited compensation, which may cause losses to both consumers and businesses.

To sum up, the development of cross-border e-commerce depends on the efficiency and standardization of any link. When conducting international transactions, understanding customs clearance, tax code and logistics processing procedures is undoubtedly of great significance to both buyers and sellers.