What Are Customs In Shipping and Travel?

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International shipping can feel confusing when unfamiliar terms, fees, and clearance updates start appearing during the process. If you have ever stopped and asked what customs are, you are not the only one trying to make sense of how it all fits together.

Several parts of the customs process can affect a shipment, and each has its own purpose. Understanding the bigger picture can make international shipping feel much easier to follow.

I find that starting with the basics helps you understand later steps without getting overwhelmed. This blog breaks the topic into clear, simple sections you can follow easily.

What Are Customs?

Customs is a government authority that controls goods entering or leaving a country. It checks shipments, reviews required information, collects duties when applicable, and helps enforce import and export laws.

In the United States, U.S. Customs and Border Protection, or CBP, handles customs activities at airports, seaports, and land border crossings. It also checks imported goods and collects certain duties and fees.

Customs is different from a shipping company. Carriers transport packages, while customs decides if goods meet legal entry requirements.

It can also hold restricted, prohibited, or specially regulated items for further review before releasing them.

How Does Customs Work for International Shipments?

customs officer and importer reviewing payment with cargo boxes planes trucks and global shipping routes

Customs follows a standard process when goods cross international borders. While rules may vary by country, most shipments go through similar checks before reaching the final destination. The basic customs process includes:

  1. Shipment arrival: The package arrives in the destination country by air, sea, or land transport and enters the customs review process.
  2. Document review: Customs officials check shipment information, including product descriptions, declared value, invoices, and other required paperwork.
  3. Assessment of duties and taxes: Customs calculates applicable duties and taxes based on product type, shipment value, origin, and local import regulations.
  4. Inspection if needed: Some shipments may receive physical inspections to verify details, check restrictions, or confirm compliance with import rules.
  5. Shipment release: After customs approves the documents and completes charges, it releases the shipment for final delivery. This is known as customs clearance in shipping.

Note: I have noticed that many first-time international buyers expect the carrier to manage every step. In reality, customs clearance is a separate government process that works alongside shipping services.

What Happens During Customs Clearance?

Customs clearance is the official approval process that allows goods to enter or leave a country. It involves checking documents, confirming shipment details, and completing required payments before release.

A shipment may move quickly through customs when all information is correct. Missing paperwork or unclear product details can slow down the process.

The exact documents depend on the shipment type and destination country. For imports into the United States, common documents include:

  • Commercial invoice
  • Packing list
  • Shipping documents
  • Entry forms
  • Product-related certificates when required

A commercial invoice usually includes important details such as the product description, quantity, value, and classification information. These details help customs determine how to process the shipment.

For commercial shipments, freight forwarding may also involve coordinating transportation and documentation as goods move between countries.

What Are Customs Duties and Taxes?

Customs duties are government charges applied to certain imported goods when they enter a country.

These charges help regulate international trade and are usually calculated based on factors such as the product type, declared value, and country of origin.

When people ask what customs duties are, they usually mean the additional costs added to imported items before they can be delivered. In the US, imported products are classified using the Harmonized Tariff Schedule, which helps determine the correct duty rate.

The final amount may depend on product category, trade agreements, import rules, and manufacturing location. Customs duties are separate from shipping charges and may be collected even after payment at checkout.

Understanding Customs Fees and Charges

Customs fees are additional costs connected with bringing goods across borders. They can include government charges and service fees related to processing shipments.

Charge

Meaning

Example

Processing fee

Administrative fee related to customs entry procedures

A charge for handling required customs documentation

Brokerage fee

Cost charged by a customs broker for managing clearance

Payment for preparing and submitting customs paperwork

Inspection-related charges

Possible costs linked to additional shipment checks

Fees connected with extra review or inspection requirements

Note: For US imports, CBP may collect certain duties, taxes, and fees depending on the shipment type and transportation method. Additional charges may also apply based on the imported product.

Who Pays Customs Charges?

Who pays customs charges depends on the shipping terms, seller agreement, and applicable import rules. In many online purchases, the buyer pays import duties and taxes when the shipment arrives. However, some sellers offer arrangements to cover these costs before delivery.

Common shipping agreements include:

  • Delivered Duty Paid (DDP): The seller generally handles import clearance and applicable import duties and taxes under the agreed shipping terms.
  • Delivered At Place (DAP): The seller delivers the goods to the agreed location, while the buyer generally handles import clearance and applicable duties and taxes.

For example, if you purchase electronics from another country, the product price may not include the customs charges required when it enters the United States.

I always recommend checking the seller’s shipping terms before ordering internationally, since the listed product price may not represent every cost due at import.

How Long Does Customs Clearance Take?

Customs clearance time depends on the shipment details and whether you submit everything correctly.

A simple shipment with complete paperwork may clear quickly. However, delays can happen when customs needs more information. There is no fixed clearance time because customs reviews each shipment based on its details.

Common reasons for longer clearance times include:

  • Incorrect documents
  • Missing product details
  • Unpaid charges
  • Required inspections
  • Restricted products

Why Do Packages Get Stuck in Customs?

stacked cargo boxes marked custom duty and shipping cargo inside a busy international freight warehouse

Packages can get stuck in customs for several reasons, and a delay does not always mean something is seriously wrong. Customs may need more information before releasing the shipment.

Common causes include incorrect address details, missing invoices, unclear product descriptions, incorrect declared values, unpaid duties, or missing permits. Some packages may also be selected for additional review.

A customs-related delay may also appear as a shipment exception in tracking when an issue temporarily interrupts the normal delivery process.

If your tracking shows a customs delay, check the latest carrier update first. It may explain what information or payment is needed. Once the missing details are provided, the shipment can usually continue through the clearance process.

What Items Can Be Held or Restricted by Customs?

  • Food products
  • Plants and seeds
  • Medicines
  • Hazardous materials
  • Certain animal products
  • Counterfeit goods

Note: Some products may need permits or certificates before they can enter a country. Import requirements depend on the item and the destination rules.

Main Differences Between Customs and Shipping Companies

Customs and shipping companies may be involved in the same shipment, but they do different jobs. Customs controls legal entry, while the carrier focuses on transportation and delivery.

Area

Customs

Shipping Company

Main role

Controls goods entering or leaving a country

Moves shipments between locations

Type of organization

Government authority

Private carrier or logistics company

Document handling

Reviews import and export information

Collects and submits shipping documents

Duties and taxes

Calculates or collects applicable charges

May collect charges from the customer on behalf of customs

Inspections

Can inspect or hold shipments

Cannot approve or reject customs entry

Tracking and delivery

Does not manage final delivery

Provides tracking updates and delivers the shipment

How Can You Avoid Customs Delays: Simple Tips

Preparing your shipment correctly can reduce common clearance problems. Follow these steps before shipping:

  • Provide accurate product descriptions
  • Include complete paperwork
  • Check import restrictions
  • Use correct product classification details
  • Keep receipts and shipment records
  • Understand possible duties and fees

In my experience, checking the paperwork before a shipment leaves is much easier than correcting missing or unclear information after customs holds it.

Conclusion

International shipping becomes easier to understand once the different customs terms and processes start making sense together.

If you started this blog asking what customs are, you should now have a clearer picture of where customs fits into the shipping process.

The main thing is to pay attention to the details connected with your shipment and check requirements before sending or receiving goods across borders. That can help you avoid unnecessary confusion later.

I always find it useful to treat customs as one part of the wider shipping process rather than something separate and complicated. A little preparation can make the whole experience much easier to manage.

Frequently Asked Questions

Can I Refuse to Give My Phone to TSA?

Yes. At a standard TSA checkpoint, you can generally refuse to unlock your phone or allow TSA to search its digital contents.

Do You Go Through TSA or Customs First?

When entering the US from an international flight, you usually go through immigration and customs before TSA screening for a connecting flight.

What Should I Not Say to Customs?

Avoid jokes about threats, weapons, illegal items, or security. Answer questions clearly, briefly, and truthfully.

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About the Author

With 16+ years in global freight, Thomas Reid designs repeatable playbooks for freight & shipping, oversized/escort moves, and portable home delivery. He holds a B.S. in Supply Chain Management, Michigan State University, and previously ran inventory and export compliance for a multinational manufacturer. Thomas now consults carriers on heavy-haul routing, NMFC classification, and last-mile crane/set services for modular units, translating complex regulations into clear, on-time operations.

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