International Freight Documentation (2): Legislative

Customs regulations protect domestic industry by the levying of import duties on incoming products. Charges are usually imposed on the importing party. Customs checks the following:

• the declared value of the goods matches the value stated on the shipment documentation,
• the goods are correctly marked labelled according to the law of the country of sale,
• the goods are legal and meet local standards and the laws of the country into which they are being imported,
• the quantities reported on the shipping documents are true,
• the invoice is correct and true, and
• the shipment does not breach quota amounts (these will be set by the government of the importing country to prevent dumping and maintain the competitiveness of domestic industry).

Goods will not be released until customs are satisfied with the documentation. Any errors or oversights result in costly delays and charges. Firms often use customs brokers to help with customs processing and resultant transactions. 

Licences and permits are the main legislative documents. Tariffs and duties on imports are applied by governments to protect domestic industry; quotas limit the quantities of specific products that can be sold domestically. Exporters in breach of quotas are likely to be fined. The following describes the necessary licences and permits:

• A customs declaration

This allows monitoring of the movement of goods. In the United Kingdom, this document is known as the C88/SAD (single administrative document). This document is required for all goods, except goods that have no statistical importance or are not restricted (personal effects or private belongings etc.).

• Special permits, certificates, and licences
  In addition to the C88/SAD, specific permissibility may have to be demonstrated by inclusion of appropriate documentation. The type of permit required depends on the nature of the product shipped.

Licences help regulate, monitor, and control markets. UK shippers require licences to ship outside the European Union. Certain textiles, all guns and ammunition, any nuclear radioactive materials (including equipment and materials used in the construction of nuclear apparatus) iron, and steel require special permits and licences. The importation of meat products, milk, blood, plant life, furs, animals belonging to endangered species, is legal and permitted only if accompanied by a licence from DEFRA. Pharmaceuticals, materials or gases that are ozone hazardous, dangerous chemicals, and any form of volatile substance require special licences and certificates.