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MODULE 2
Customs Clearance Procedures
OBJECTIVES
By the end of this module, you should know
1. The trade documents required for Customs clearance of imports and exports
2. Goods restricted or prohibited from importation and exportation
3. The procedures for the importation and exportation of goods
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UNIT 1: CUSTOMS CLEARANCE
Cargo entering or leaving the customs territory of a specific country has to be subjected to
customs procedures under the customs legislation of that country. These procedures are also
known as customs clearance.
If the customs clearance is carried out at the export stage, it is called export customs clearance.
If the customs clearance is carried out at the import stage, it is called import customs clearance.
The customs clearance process typically involves preparing documents (called Trade documents)
that may be submitted electronically or physically with the consignment. This helps concerned
authorities to calculate taxes and duties that will be levied on the cargo.
Tools for a Smooth Customs Clearance
A tariff code is a unique code
that's assigned to every type of
product. E.g. the tariff code for a
lead pencil is 96091000 and the
tariff code for an alarm clock is
91091100.
Tariff codes are used by customs
authorities around the world to
determine the level of import duty
to be applied.
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UNIT 2: TRADE DOCUMENTS
In this section, we will review the custom clearance documents; Trade Documents, required to
process cargo at seaports and airports. Without these documents, clearing goods may prove to
be a difficult exercise, if not impossible.
These trade documents and the information they contained are defined and set by national and
international regulatory requirements in fields such as health, consumer protection, safety, tax and
revenue, trade policy, environment and security. Examples of trade documents and the data they
carry are provided below.
Cargo Manifest
The manifest is a list of all goods, which was loaded onto a ship or other transport vessel in one
certain port and which has a single certain destination. Therefore, the number of manifest onboard
a vessel equals the number of different travel routes. The cargo manifest lists the details of the
goods (nature, quantity, types and numbers, sender, destination, etc.) and service for customs
declaration of the goods.
Customs Declaration
A customs declaration is a legal document that shows proof of the total value and contents of
goods being imported and exported. It’s used by customs in both the origin country and the
destination country to ensure trades are compliant and pay the correct taxes and duties. Customs
declarations are also necessary for security, as certain goods are subject to licences or permits.
The following modules will provide more in-depth information on submitting the required trade
documents to Customs.
Commercial Invoice
A commercial invoice is used by customs officials to estimate the value of goods shipped into
the country. With the information sourced from the commercial invoice, the customs official will
be able to calculate the duty the importer should pay. An invoice should include all the
information necessary for the shipment to clear customs.
Invoice Information Shipper Information
The information regarding the commercial The information about the sender of the Goods
invoice • Name: The name of the sender
• Invoice Number: The supplier invoice • Address: The complete address of the
reference number sender
• Invoice Date: The issue date of the • Telephone: The telephone number of the
invoice sender.
• Number: The customer order number • Fax: The fax number of the sender
of the goods • VAT Number: The sender Value Added
Tax Reference Number (if applicable)
• Country: The country the sender is
located in.
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Consignee Information Shipment Information
The information about the receiver of the The information about the goods to be shipped
goods • Number of Pieces: The number of parts
• Name: The name of the receiver the shipment consist of
• Address: The complete address of the • Specification of Commodities: The
receiver, which includes the postal/zip description and nature of the Goods to
code and the city be shipped.
• Telephone: The telephone number of • Weight: The gross weight of each piece
the receiver. • Quantity: Number of units of the Goods.
• Fax: The fax number of the receiver • Unit Price: The value of each item unit
• VAT Number: The receiver Value • Amount: The amount of each set of
Added Tax reference Number, for Goods
countries that apply the VAT. • Total Weight: The total gross weight of
• Country: The country the receiver is the goods
located in • Currency: The Currency used for pricing
• Notify Party: The name of the party the item
that affects the delivery of the goods. • Total Amount: The total value of the
• Address: The address of the party to be shipment
notified • Country Of Origin: The country where
• Shipping Information Refers to the the Goods were manufactured
information about the shipping of the • Name: The name of the sender
goods • Signature: The signature/company stamp
• AWB Number: The Air Waybill number of the sender
under which the goods are shipped
• Forwarding Agent: The shipping
company name
• Date of Export: The date on which the
goods are shipped
• Payment Mode: The paying mode of
shipping that may be prepaid, collect
or free domicile.
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Sample invoice
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UNIT 3: RESTRICTED AND PROHIBITED GOODS
The Customs Department has been entrusted with enforcing laws and regulations of other
government departments and agencies, such as the Department of Agriculture, Department of
Environmental and Coastal Resource, and the Royal Turks and Caicos Islands Police Force.
The products that the Customs Department prevent from entering the Turks and Caicos Islands
are those that would injure community health, public safety, or domestic plant and animal life or
those that would defeat our national interests.
Restricted goods
Restricted means that special licenses or permits are required from a government department
before the item is allowed to be imported into or exported from the Turks and Caicos Islands.
Controlled drugs Firearms and Explosives and Endangered plants and
ammunitions fireworks animals
The following goods are restricted;
a) controlled narcotics
b) firearms (including blank firing or replica firearms that can be converted to fire bullets),
firearm parts, ammunition and explosives (including fireworks), unless accompanied by a
valid license signed by the Commissioner of Police.
c) Hawaiian slings and spear guns.
d) Any goods from
• Iraq and Kuwait (United Nations Sanctions) (Dependent Territories)
• Angola (United Nations Sanctions) (Dependent Territories)
• Libya (United Nations Sanctions) (Dependent Territories)
• Former Yugoslavia (United Nations Sanctions) (Dependent Territories)
e) Live animals.
This includes fish, crustaceans, molluscs, insects, cats, dogs and birds. All animals (including
pets) arriving in the Turks and Caicos Islands are required to be accompanied by health
documents as well as an Import Permit issued in advance by the Department of
Agriculture.
Plants and animals must be presented to the plant or animal quarantine officer for
quarantine inspection before Customs examination.
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Animals arriving without proper documentation will be refused entry and will be
immediately returned to the country of origin or euthanised, at the owner’s expense.
f) Plants, fruit, vegetables and plant products. All plants arriving in the Turks and Caicos
Islands are required to be accompanied by an importation permit issued in advance by the
Department of Agriculture.
Prohibited Goods
Prohibited means the item is forbidden by law to enter the Turks and Caicos Islands.
Counterfeit Meats and vegetables Obscene literature Some breeds of dogs
money and cards unfit for human and videos
consumptions
The following goods are prohibited to be imported into, exported from, or carried coastwise
within, the Islands––
a) Illegal drugs such as heroin, morphine, cocaine, amphetamines, barbiturates, LSD and
cannabis.
b) Offensive weapons such as flick and gravity knives, butterfly knives, push daggers, belt-
buckle knives, throwing stars, swordsticks, knuckledusters, blowpipes, spear guns, spring-
loaded batons and some martial arts equipment.
c) Self-defence sprays containing noxious or inflammatory gas or liquids.
d) Stun guns or incapacitating weapons that momentarily disable a person with an electric
shock or directed energy.
e) Counterfeit, altered, or imitation coins, paper money, banknotes, or securities, and forged
credit cards;
f) meat, vegetables or other food unfit for human consumption;
g) goods and any package of goods bearing any name or mark which states or implies that
such goods were manufactured or produced in any country in which the same were not
manufactured or produced;
h) Indecent or obscene materials including books, magazines, films, videos, DVDs and
software, sex toys. This includes:
• Material featuring children;
• Material containing extreme violence or cruelty; and
• Any other pornography
i) Books, drawings, carvings, and any other article which may harm public safety or morals
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j) all plants, articles packed therewith or packages likely to be a means of introducing plant
disease into the Islands
k) the following breeds of dogs—
• Dogo Argentino
• American Pit Bull Terrier
• American Staffordshire Terrier
• American Bull Dog
• Japanese Tosa
• Canary Dog
• Perro de Presa Canario
• Fila Brasileiro.
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UNIT 5: IMPORT AND EXPORT PROCEDURES
This unit provides the general procedures for imports. Goods imported temporarily
with a view to re-exportation, or exported temporarily with a view to re-importation are
required to meet specific conditions. Potential importers requiring this service may contact
the Assistant Collector, Entry Processing Unit at the Customs Department for assistance.
Purpose: This Standard Operating Procedure (SOP) provides a detailed step-by-
step process to promote the efficient administration of customs
procedures, and the expeditious clearance of goods.
Scope: The procedure covers the entire clearing processes of exports and
import. It shows the various stakeholders involved with the process, as
well as their roles.
Definitions: Agent: Any person appointed as an agent under the Customs
Ordinance 2018
Cargo/Goods declaration: A statement made in the manner prescribed
by the Customs, by which the persons concerned indicate the Customs
procedure to be applied to the goods and furnish the particulars which
the Customs require for its application.
Carrier Agent: The agent for the Carrier/Principal transporting cargo
to/from the Turks and Caicos Islands, e.g. Tropical Shipping, Turks Air
Clearance: The accomplishment of the Customs formalities necessary
to allow goods to enter home use, to be exported or to be placed
under another Customs procedure.
Consolidator: An individual or company that provides services to group
shipments, orders, and/or cargo to facilitate movement.
Degroupage/Deconsolidation: Separating a consolidated (usually
containerised) shipment into its original constituent shipments, for
delivery to their respective consignees.
Examination of goods: The physical inspection of goods by the
Customs to satisfy themselves that the nature, origin, condition,
quantity and value of the goods are in accordance with the particulars
furnished in the Goods declaration.
Exporter: Concerning goods for exportation or use as stores, includes
the shipper of the goods and any person performing concerning any
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aircraft functions corresponding with those of a shipper.
House Bill of Lading/Air Waybill: This contains all the information of a
BL/AWB but is not a financial document. This is a contract between the
shipper and freight forwarder. All the shipments covered by the
individual house AWBs/BLs are consolidated, and a single AWB/BL,
called the Master AWB/BL, is issued to cover the consolidated
shipment.
Owner: In respect of a ship or aircraft, includes a charterer of the ship
or aircraft or a non-vessel operating common carrier or freight
forwarder responsible for the transportation of goods on the ship or
aircraft.
Perishable goods: Goods that rapidly decay due to their natural
characteristics, in particular in the absence of appropriate storage
conditions.
Release of goods: The action by the Customs to permit goods
undergoing clearance to be placed at the disposal of the persons
concerned.
Legislation: Customs Ordinance 2018, as amended and any subsidiary legislation.
Any other enactment related to the importation of cargo into or
exportation of cargo out of the Turks and Caicos
Minimum Required 1. Duly completed SADs
Document(s): 2. Bill of Lading (sea freight)/Airway bill (air freight)
3. Supplier Invoice(s)- Invoices will be checked for authenticity
and values, consignor, consignee, currency, origin, destination,
etc.
4. Packing list
5. Concession letter for exemption of duties and taxes if any
6. Permit for import of food, agro products, drugs and
pharmaceuticals
7. Adhoc development order- The development order must be
signed.
8. For imports for the government include the letter from OPSM
9. Phytosanitary Certificates for imports of agricultural products
Equipment/Software: Computer with internet access
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Direct Import Procedures
For the release of goods from
Customs, the following
documents need to be
submitted along with the
declaration;
• Bill of Lading (sea
freight)/Airway bill (air
freight)
• Supplier Invoice(s)-
Invoices will be checked
for authenticity and
values, consignor,
consignee, currency,
freight, insurance, origin,
destination, etc.
• Packing list
• Concession letter for
exemption of duties and
taxes if any
• Permit for import of food,
agro products, drugs and
pharmaceuticals
• Adhoc development
order- The development
order must be signed.
• For imports for the
government include the
letter from OPSM
Additional required
documents for specific
imports
• Phytosanitary Certificates
for imports of agricultural
products
• Worksheet for the
importation of more than
three (3) items.
Goods imported temporarily with a
view to re-exportation, are required to
meet specific conditions. Potential
importers requiring this service may
contact the Assistant Collector, Entry 11
Processing Unit at the Customs
Department for assistance.
Import Procedures- Perishable Goods
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Import Procedure
Motor Vehicle
Documents Required To Import
a Motor Vehicle or Motor Cycle:
General
• Title/Export certificate-
Issued to the owner of the
vehicle by the government
of the country where the
vehicle was purchased.
• Bill of lading
• An original invoice from
the suppliers indicating;
the condition of sale, the
supplier’s name, the
buyer’s name, the price
paid or payable, the terms
of delivery e.g. C.I.F, full
description of the vehicle
(type, model, engine
number or VIN number,
colour, engine size, and
weight), Year of
manufacture, manufacturer
• Bill of Sale
• Vehicle examination sheet
Civil Servants
• Letter from OPSM
• Concession letter from
Customs
Taxi Drivers
• Road Safety (Public
Service) Vehicle
Regulations Licence
• Business Licence
• Concession letter from
Customs
Motor vehicles imported temporarily
with a view to re-exportation, are
required to meet specific conditions.
Potential importers requiring this
service may contact the Assistant
Collector, Entry Processing Unit at the
Customs Department for assistance.
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Export Customs Clearance
For the export of goods
from Customs, the following
documents need to be
submitted along with the
declaration;
• Bill of Lading (sea
freight)/Airway bill (air
freight)
• ProForma Invoice
• Customs Packing List
• Export License
• Health Certificates
• $0.80 Export stamp
Goods exported temporarily with a
view to re-importation, are required to
meet specific conditions. Potential
importers requiring this service may
contact the Assistant Collector, Entry
Processing Unit at the Customs
Department for assistance.
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