One of the main challenges in international shipping is a stuck shipment. About 20% of stuck shipments are estimated to be seized or destroyed by customs authorities, and when shipping high-value tech hardware, this results in massive financial losses for businesses
With timelines and budgets on the line, you need a partner you can rely on to keep your tech moving. Let’s uncover why shipments get stuck in customs, and how an experienced trade partner can streamline your international shipments and ensure smooth customs clearance.
Why Do I Have a Stuck Shipment?
A stuck shipment is not a lost shipment; it’s just not currently moving forward along its supply chain.
Clearing customs is more challenging than it seems, as different countries enforce different regulations and restrictions, and varying technologies require different permits, licenses, and certifications. This is especially true for today’s rapidly advancing technologies. As new innovations hit the market, classifying products correctly becomes increasingly complex.
Some common culprits for a customs hold, or a shipment stuck in customs are:
- Incomplete information on necessary import documentation
- Incorrect paperwork (one of the biggest causes of stuck shipments!)
- Incorrect or missing import and export permits and licenses
- Outstanding duties, fees, tariffs, and taxes
- Damaged packaging or shipping labels
- Valuation disputes
- Forgotten Country of Origin on customs documentation
- Missing or inaccurate HS codes
- Use of inexperienced customs brokers
A shipment can also get “stuck” due to logistical challenges such as extreme weather, natural disasters, operational delays, or port congestion. Working with an expert is crucial for navigating unavoidable risks like these.
Stuck shipments occur when clearing customs becomes more challenging than it may have first appeared. Each country, like Australia, Brazil, Canada, China, South Africa, and the USA, all have nuanced import/export regulations that can change in an instant. Keeping up to date and fully understanding the requirements can be overwhelming at times.
Let TecEx take on the stuck shipment burden for you and speed up the customs clearance of your international shipments across 200+ destinations.
Why Does Tech Gear Get Stuck in Customs?
Wireless and radio equipment are at risk of being detained as they typically require special certifications to be imported.
Encrypted technology is usually considered dual-use, meaning it has both military and civilian applications and requires special permits for export.
AI chips with specific functions and materials require detailed product descriptions and accurate HS codes. Failure to supply these means customs delays, inspections, and stuck shipments.
Electronics going to countries with stringent tech regulations need to have various permits and licenses before shipping. Without preparing for these requirements, your tech could get stuck in customs.
The High Cost of Stuck Shipments for Tech Companies
Shipments stuck in the customs clearance process are an inconvenience that can have serious repercussions for your bottom line. Here are some of the significant implications that come with a stuck shipment:
Missed deadlines and disrupted engineering teams
Hefty fines for incorrectly declared values of goods
Forced return of shipments to the shipper
Possible loss of clients and reputational damage
In the worst-case scenario, your shipment risks seizure and destruction if it’s not declared correctly at the destination country.
When IT Shipments Cannot Clear Customs
Every stuck shipment situation is unique, and the resolution process varies depending on the country, type of goods, and specific customs regulations involved. Seeking professional assistance from leading experts like TecEx can make the process smoother.
High-Risk Tech Import Locations
Tech gear is inherently tricky to import and export, but some locations are more challenging than others. This is why it’s best to work with a trade compliance expert to navigate regulations seamlessly, clear customs smoothly, and mitigate the risk of stuck shipments.
Brazil:
Brazil has complicated import requirements and high tariff rates, and requires extensive documentation for tech imports. It has complex restrictions on goods like second-hand tech, unstable currency rates, and port inefficiencies.
China:
A major hub for global shipping, China’s large volume can lead to delays. It also has strict requirements like the China Compulsory Certificate, which is mandatory for various tech imports. Exports also face stringent controls.
India:
A particularly tricky destination for tech imports, India requires a BIS Certificate for most shipments as well as MTCTE certificates for teleco equipment. Importers must also be prepared to take on Extended Producer Responsibility.
South Africa:
A complicated import destination, South Africa has complex tax structures and strict permit requirements. Shipments risk CBCU detainment for inspections, which can cause significant delays. Secondhand and resale tech imports may require an ITAC permit or an NRCS Letter of Authority, while wireless tech needs an ICASA Certification.
United States:
As a major player in global trade, the USA sees many stuck shipments, though its infrastructure is generally considered advanced. Add complex tariffs and a trade war to the mix, and it’s easy for importers to miscalculate duties or misclassify their goods and get their shipments stuck. The US also has strict export controls to protect its technological dominance in various sectors and prevent geopolitical adversaries from accessing its advanced technologies.
How To Prevent Stuck Shipments and Customs Delays
Preventing stuck shipments requires efficient supply chain risk management. This comes from meticulous pre-compliance sweeps, a thorough understanding of nuanced trade regulations, and experience navigating country-specific requirements and challenges.
We have vast knowledge of tech- and country-specific complexities and regulations. With our extensive experience and thorough R&D and pre-compliance checks, we know what risks to expect and how to mitigate them, whether they’re bureaucratic customs processes or freezing, snow-covered terrain.
Our team is well-versed in international trade compliance, meaning we can ensure seamless customs clearance. With our expertise, we handle compliance requirements so you can focus on direct operations while your goods reach their destination. If any issues arise, our dedicated teams are available 24/7 to assist.
With TecEx’s DDP solution, we ensure full customs compliance and efficient logistics to prevent your goods from getting stuck. By handling the import process from end to end, we can:
- Prepare for country-specific complexities,
- Ensure classifications and valuations are correct,
- Obtain all of the necessary paperwork, permits, and licenses before shipping,
- Settle the correct duties and taxes before the import,
- Comply with all relevant, country-specific shipping regulations and requirements, and
- Facilitate seamless customs clearance.
Customs Clearance Solutions | Solving Stuck Shipments
If your shipment is stuck, know that it takes patience, persistence, and thorough compliance to get it back on the move. With the help of a specialist customs compliance provider, you should be able to get your tech unstuck.
Get Your Shipment Moving
TecEx is your trusted partner for solving stuck shipments, ensuring customs compliance, and optimizing your shipping channels. With our import expertise, we can help you fulfill complex customs requirements and clear your goods.
Get Your Shipment Moving
TecEx is your trusted partner for solving stuck shipments, ensuring customs compliance, and optimizing your shipping channels. With our import expertise, we can help you fulfill complex customs requirements and clear your goods.
