Formal Customs Clearance vs Tax-Inclusive Clearance: What's the Difference?

What is Formal Customs Clearance?

Formal Customs Declaration refers to the process where a customs broker submits complete import declaration documents to customs after goods arrive at the destination, including Commercial Invoice, Packing List, Bill of Lading or Airway Bill, and Import Permits (if required).

Customs calculates duties and import taxes based on the declared actual value of goods, and these fees are borne by the recipient.

What is Tax-Inclusive Clearance?

Tax-Inclusive Clearance means the logistics provider pre-pays customs duties and import taxes on behalf of the customer, including the tax fees in the shipping quote. Recipients don't need to pay additional fees at customs clearance.

Key Differences

Tax-inclusive clearance is suitable for most personal shoppers and general consumer goods, while formal customs clearance is better for high-value items, business imports, and large-volume shipments.

GoodvShare uses tax-inclusive clearance to ensure you know the total cost before shipping.