7 common mistakes when filling in customs declarations and how to avoid them

Filling out customs declarations correctly is essential for avoiding costly delays, fines, and shipment rejections. A minor error in the paperwork can result in unexpected costs, lost revenue, and even reputational damage in the wake of dissatisfied customers.

In this article, we break down the most common mistakes and how to prevent them – helping you to navigate the customs clearance process, avoid unnecessary expenses, and focus on growing your business.

Key customs declaration terms you need to know

Completing customs declarations accurately starts with understanding customs declaration terminology. Many of these terms can be confusing, and misinterpreting them may lead to delays, additional charges, or non-compliance penalties. Here is an overview of the most common terms you need to know:

HS Code (Harmonised System Code) – A standardised classification system for goods, used throughout the export and import process to determine duties and tariffs. HS codes harmonise the movement of goods around the world and help distinguish between different categories of goods. They are generally reviewed every five years to reflect new technologies and changes in trade patterns.

Incoterms® (International Commercial Terms) – The common language of international trade, established by the International Chamber of Commerce (ICC). They are standard terms which are commonly incorporated into contracts for the trade of goods, such as the responsibilities of buyers and sellers in international trade, including shipping, insurance, and customs clearance.

Customs Value – The declared monetary worth of imported goods, which is used by customs authorities to calculate import duties, taxes (like VAT or GST), and other applicable fees. This typically includes the cost of the goods themselves, freight charges (cost to transport the goods to the port of import), insurance costs, and any handling fees incurred before the goods reach the border.

Country of Origin – The country where the goods were produced or manufactured, which affects tariffs and trade agreements.

Tariff Code – A specific code used to classify goods for customs duty calculations.

EORI Number (Economic Operators Registration and Identification) – A required registration number for customs clearance in the customs territory of the European Union that relates to all types of customs operations such as export, import and transit. EORI uniquely identifies economic operators and other persons.

7 common customs declaration mistakes - and how to avoid them

1. Incorrect HS codes

Using the wrong HS code can lead to incorrect duty payments, fines, and even shipment seizures. Customs authorities rely on these codes to determine tariffs and regulatory requirements, so any misclassification can cause delays. To avoid this, always verify HS codes using official classification tools or consult a customs broker to ensure accuracy.

2. Misunderstanding Incoterms®

Incoterms® define responsibilities for shipping, insurance, and customs clearance, but misunderstandings can lead to unexpected costs or disputes. If the agreed Incoterms® do not align with the buyer's and seller’s expectations, one party may end up paying more than anticipated. Clarify Incoterms® before finalising a trade agreement to ensure both sides understand their obligations.

3. Declaring the wrong Customs Value

Incorrect customs value declarations can either inflate costs or result in penalties for underreporting. The declared value must include all applicable costs, including transport and insurance for example, to comply with regulations. Keeping accurate records and double-checking invoices before submission helps prevent errors and ensures transparency.

4. Inaccurate or missing Country of Origin information

The country of origin impacts tariffs, trade agreements, and compliance with import restrictions. Providing incorrect information can lead to shipment rejections or additional duties. To prevent this, verify supplier documentation and ensure the country of origin details match official records before completing the declaration. Notably, proofs or origin (EUR1, or other certificates of origin) may be needed, depending on the specific Free Trade Agreements (FTAs) in place between the applicable countries.

5. Not providing proper supporting documents

Missing or incorrect documentation can delay shipments and increase the likelihood of customs inspections. Invoices, packing lists, and certificates of origin must be complete and accurate to avoid unnecessary scrutiny. Maintaining a checklist for required documents ensures that all necessary paperwork is submitted correctly.

6. Using the wrong EORI (EU) or VAT number

Incorrect registration details can lead to customs clearance delays and additional administrative work. Businesses trading internationally must ensure their EORI number (if trading with an EU country) and VAT number are up to date and correctly entered on customs forms. Regularly reviewing business registration details helps avoid potential disruptions in cross-border trade.

7. Failing to double-check declarations before submission

In customs clearance, attention to detail is crucial as even small errors in customs declarations can cause costly delays or fines. A thorough review process before submission, as well as a structured submission process with checklists for avoiding mistakes and deadlines for submissions, helps catch mistakes early and ensures compliance with regulations. Implementing an internal verification system or using customs declaration software reduces the risk of human error and enhances efficiency.

To strengthen the process further, consider implementing formal audit practices and documented Standard Operating Procedures (SOPs). These provide consistency, reinforce compliance, and help identify issues before they escalate into larger problems.

How to ensure your customs declarations are correct

Accuracy in customs declarations is crucial for smooth logistics operations. Businesses should establish an internal review process to cross-check declarations before submission. Investing in customs clearance software can help automate and validate data entry, reducing human error. Additionally, staying informed about changes in customs regulations and understanding the different customs clearance charges ensures compliance and prevents costly mistakes.

Partnering with a logistics provider that offers customs clearance services can further streamline the process. Their in-depth knowledge of international trade regulations and experience in handling customs declarations ensures accuracy and compliance. This reduces the risk of delays and penalties while freeing up internal resources to focus on core business operations. A reliable logistics partner can also provide real-time tracking and updates, ensuring transparency throughout the supply chain.

The role of a customs broker

Hiring a customs broker (sometimes called a customs brokerage firm) can be a valuable investment – particularly for businesses without dedicated customs specialists. A broker ensures compliance with customs regulations, classifies goods correctly, and handles necessary documentation. While there is a cost associated with using a broker, the benefits often outweigh the risks of misfiled declarations, delays, and potential fines.

With its global footprint, deep industry expertise, and a commitment to staying on top of every regulatory change, Maersk Customs Services can be your trusted partner to assist with your customs procedures and help optimise cross-border trade.