5 Common Customs Clearance Mistakes Businesses in China and Vietnam Make

Customs delays cost businesses in China and Vietnam millions every year. Here are the five most common mistakes and how to avoid them.

Customs clearance is often the most stressful part of international trade. A single documentation error can hold up cargo for days or weeks, racking up storage charges and causing supply chain disruptions. After processing thousands of declarations, our customs brokers have identified the five most common and costly mistakes.

1. Incorrect HS Code Classification

The Harmonised System (HS) code determines your tariff rate and eligibility for FTA benefits. Many businesses use outdated codes or misclassify goods, resulting in overpayment of duties or, worse, underpayment penalties. Always verify codes against the current BTKI 2022 tariff book.

2. Incomplete or Inaccurate Commercial Invoices

The commercial invoice must exactly match the packing list and B/L. Common errors include wrong country of origin, incorrect Incoterms, missing currency or unit prices, and vague goods descriptions. Customs officers compare all three documents carefully.

3. Missing Permits and Licences

Certain goods — food products, pharmaceuticals, chemicals, weapons, and electronics — require special import permits from the relevant regulatory bodies in China and Vietnam. Not securing these before arrival leads to cargo holds and potential seizure.

4. Not Utilising FTA Benefits

China and Vietnam have FTAs with ASEAN countries, Japan, Korea, Australia, and more. Many businesses pay full MFN duties when they could claim preferential rates with a Certificate of Origin or applicable FTA form. This oversight can cost 5-25% of goods value.

5. Using an Unlicensed Customs Broker