What Is Customs Clearance? Meaning, Process and Documents

Customs clearance is the process of getting goods officially approved by a country's customs authority so they can legally enter (import) or leave (export) that country. It involves declaring what the goods are and what they are worth, paying any duties and taxes due, and passing any inspection customs requires. Until customs clears them, the goods stay under customs control at the port, airport or land border and cannot be delivered.

In Bangladesh, customs clearance is handled by the National Board of Revenue (NBR) through custom houses such as the Chittagong Custom House, Dhaka Custom House at Hazrat Shahjalal International Airport, and the land ports like Benapole. This guide explains what customs clearance means in practice, how the process works, what it costs and how long it takes.

What customs clearance means in simple terms

Think of customs clearance as the government's checkpoint for goods crossing the border. Customs wants to confirm three things before it lets a shipment through:

1. What the goods are, identified by an HS code, so the right rules and tax rates apply.
2. What they are worth, because import duty is charged as a percentage of the value.
3. Whether they are allowed: some goods are banned, and others need a licence, permit or certificate.

When all three are settled and the duty is paid, customs issues a release, and the goods are "cleared". In everyday trade, people also use "customs clearance" to mean the whole job of getting cargo out of the port, including the shipping line and port formalities.

Import clearance vs export clearance

• Import customs clearance happens when goods arrive in Bangladesh. It is usually the more demanding of the two, because import duties and taxes are collected and the goods are often examined. The main document is the bill of entry.
• Export customs clearance happens before goods leave Bangladesh. Most exports carry no duty, but customs still checks the declaration, the export permit (EXP) and, for some products, certificates. The main document is the shipping bill (bill of export).

Both are lodged electronically in ASYCUDA World, the customs IT system used in Bangladesh.

Who does customs clearance?

The importer or exporter is legally responsible for the declaration, but in practice most businesses use a licensed C&F agent (clearing and forwarding agent), also called a customs broker. The C&F agent:

• prepares and lodges the bill of entry or shipping bill;
• works out the HS code and duty, and deals with the assessing officer;
• attends the physical examination of the goods;
• pays duty, port and shipping line charges on the client's behalf;
• arranges release and delivery of the goods.

C&F agents in Bangladesh are licensed by customs and work at a specific custom house or port.

The customs clearance process, step by step

For a typical import, clearance follows these steps:

1. Documents arrive. The bank releases the shipping documents (invoice, packing list, bill of lading or airway bill) to the importer under the letter of credit.
2. Classification and valuation. The C&F agent confirms the HS code and the value to be declared.
3. Bill of entry lodged in ASYCUDA World, with copies of the supporting documents.
4. Assessment. Customs checks the HS code and value and calculates the duty.
5. Examination of the goods, if the shipment is selected for it.
6. Payment of duty and taxes.
7. Release. Customs issues the release order, port and shipping line charges are paid, and the goods leave the port.

Our detailed guide to the customs clearance process at Chattogram port explains each step and where delays usually happen.

Documents needed for customs clearance

For an import into Bangladesh, the core documents are:

• commercial invoice and packing list;
• bill of lading (sea) or airway bill (air);
• letter of credit and LCA form;
• insurance cover note;
• certificate of origin;
• the importer's IRC, e-TIN, BIN and trade licence;
• any product-specific certificates or permits, for example plant quarantine, BSTI or Drug Administration approval.

See the full checklist in documents required for import customs clearance.

How much does customs clearance cost?

The cost of clearing a shipment has three parts:

1. Duties and taxes paid to the government: customs duty, regulatory duty, supplementary duty, VAT, advance tax and advance income tax. This is normally the largest part, from zero on some essential goods to well over 100% of the value on luxury items. Calculate it for your product with our free import duty calculator.
2. Port and shipping charges: handling, storage, delivery order and container charges.
3. The C&F agent's fee for handling the clearance.

To understand how the duty part is worked out, read how import duty is calculated in Bangladesh.

How long does customs clearance take?

When the documents are complete and the goods are not selected for examination, clearance can be finished within a few working days of the cargo arriving. Physical examination, laboratory testing, a dispute over the HS code or value, or a missing certificate can add several days or more. Air cargo usually clears faster than sea cargo because volumes are smaller.

Why shipments get stuck in customs

• the HS code declared is wrong or disputed;
• the declared value is lower than customs' assessment value;
• the documents don't match each other or the goods;
• a required certificate or permit is missing;
• the goods are restricted or prohibited;
• duty or port charges are not paid on time.

Most of these can be avoided by checking the HS code, value and documents before the goods are shipped.

Frequently asked questions

What does "customs clearance" mean on a tracking update?

If a courier or shipping tracker says your parcel is "in customs clearance", customs is checking the declaration and deciding whether duty is due. "Customs cleared" or "released by customs" means that step is finished and the goods can be delivered.

Is customs clearance the same as paying import duty?

No. Paying duty is one part of customs clearance. Clearance also includes declaring the goods, assessment, any examination and the final release.

Can I do customs clearance myself?

For commercial imports in Bangladesh, the declaration is in practice lodged through a licensed C&F agent. For personal baggage at the airport, passengers declare goods themselves at the red channel.

What is a customs clearance agent?

A customs clearance agent, called a C&F agent in Bangladesh, is a licensed professional who prepares the customs declaration, deals with customs officers and handles the formalities needed to release goods on behalf of the importer or exporter.

What is the difference between customs clearance and freight forwarding?

A freight forwarder arranges the transport of goods from one country to another. Customs clearance is the legal process of getting the goods through customs at either end. Many companies offer both, but they are different services.

Need help clearing a shipment?

We are a C&F agent handling customs clearance at Chattogram port and Dhaka airport. Send us your shipment details and we will confirm the HS code, the expected duty and what documents you need before your cargo arrives.