What Happens When Your Goods Arrive at Port: Customs Clearance Explained

From Ship to Warehouse: The Clearance Process

Your goods have crossed the ocean. Now they're sitting in a container at the port, and they can't move until customs says so. The clearance process is straightforward if your paperwork is in order — and painfully slow if it isn't.

Step 1: Vessel Arrives and Discharges

When the ship arrives, your container is unloaded and placed in the port's container yard. Your freight forwarder or shipping line will notify you of arrival.

Timeline: 1–2 days from vessel arrival to container availability.

Step 2: Customs Declaration Submitted

Your customs broker (or freight forwarder acting as broker) submits an electronic customs declaration. This includes:

• Your business details and EORI/import number
• Product descriptions and HS codes
• Country of origin
• Customs value (product cost + freight + insurance)
• Any preferential trade agreement claims

The declaration is submitted electronically in most countries before or upon arrival.

Step 3: Risk Assessment

Customs authorities run your declaration through automated risk-scoring systems. They check for:

• Unusual values (too high or too low for the product type)
• HS code accuracy
• Country-of-origin risk flags
• Importer compliance history
• Random selection for inspection

Most shipments clear without inspection. If you're a compliant, regular importer with accurate declarations, you're low risk.

Step 4: Route Assignment

Based on the risk assessment, your shipment gets one of three routes:

Green Route — Cleared

No inspection required. Your goods are released immediately after duty payment. This is the most common outcome.

Orange/Yellow Route — Documentary Check

Customs reviews your documents more carefully. They may request additional paperwork (certificate of origin, conformity certificates, etc.). Resolution: usually 1–3 days.

Red Route — Physical Inspection

Customs physically inspects the goods. Your container is opened, products are examined, and they verify that the contents match the declaration. Resolution: 2–7 days, plus examination fees ($200–500).

Step 5: Duty and Tax Payment

Once cleared (or concurrently), duties and import taxes are calculated and must be paid:

• Customs duty — based on the customs value and the duty rate for your HS code
• Import VAT/GST — calculated on (customs value + duty)

Payment is usually required before goods are released. Some importers have deferred payment accounts that allow monthly settlement.

Step 6: Release and Collection

After clearance and payment, customs issues a release notice. Your freight forwarder arranges:

• Container collection from the port
• Transport to your warehouse, FBA preparation centre, or 3PL

Timeline: Same day (green route) to 7+ days (red route with complications).

Total Timeline: Port to Warehouse

Common Reasons for Delays

Incorrect HS Code

If customs disagrees with your classification, they'll hold the goods until it's resolved. Use the HS code lookup tool to verify your codes before shipping.

Value Discrepancy

If the declared value seems unusually low, customs may request proof — purchase orders, bank payment records, or market value evidence.

Missing Documents

A missing certificate of origin, phytosanitary certificate, or import licence will stop clearance until provided.

Compliance Issues

Products requiring specific certifications (CE, UKCA, FDA, etc.) may be checked. If certification is missing, goods can be refused entry.

How to Ensure Smooth Clearance

1. Verify HS codes before shipping — use the HS code tool
2. Ensure all documents are complete and consistent — commercial invoice, packing list, bill of lading, certificates
3. Declare accurate values — never undervalue goods to save duty
4. Use a reliable customs broker — they know the system and can resolve issues quickly
5. Build a compliance history — regular, accurate declarations lower your risk score over time

Track your shipment's clearance status alongside all costs in LandedCost.io for a complete picture from order to delivery.