Minor errors in the declaration of product name, specifications, and materials on sea freight customs declarations may seem insignificant, but they can trigger a series of chain reaction customs clearance problems. At best, this leads to delays; at worst, it can result in return shipments, fines, and even damage to the company’s credit rating.
Below, Weefreight will provide a detailed analysis to help you understand these issues.
I. Directly Triggering Customs Inspection and Control
Manual/Machine Inspection: If the product name, specifications, and materials do not match the actual goods, the customs system will automatically issue a warning, triggering a container inspection, extending the customs clearance time by 3-7 days, and incurring inspection fees such as unpacking, lifting, and warehousing costs.
Risk Control: Multiple declaration errors or sensitive product names (such as machinery, chemicals, and textiles) can lead to the company being placed on a high-risk list, resulting in mandatory inspections for every subsequent shipment, creating a long-term inspection “curse.”
II. Customs Clearance Delays and Accumulated Costs
Soaring Port/Container Demurrage Fees: Inspections cause goods to be stored at the terminal for extended periods, resulting in daily accumulation of port and container demurrage fees. The daily cost for a small container can reach hundreds of yuan, and the longer the delay, the greater the loss.
Cumbersome Amendment/Cancellation Procedures: Declaration errors require amending or canceling and resubmitting the declaration, a process that takes 2-5 days and incurs amendment fees. Some customs offices have limits on the number of amendments allowed; exceeding this limit requires more complex approval processes.
Chain Reaction at the Destination Port: Declaration errors at the port of origin can lead to discrepancies in customs clearance documents at the destination port, triggering secondary inspections, cargo detention, and even fines at the destination port, delaying the consignee’s receipt of the goods. III. Classification Errors Leading to Tax Rate and Regulatory Risks
Tax Code Classification Discrepancies: Unclear descriptions of product names and materials can easily lead to incorrect tax code classification. If a low tax rate is declared for goods subject to a higher tax rate, the overpaid taxes are difficult to recover; if a high tax rate is declared for goods subject to a lower tax rate, it will be considered tax evasion, requiring payment of back taxes + late payment penalties + fines (0.5–5 times the tax amount).
Missing Regulatory Documents: Some goods (such as those requiring 3C certification, commodity inspection, or quotas) require specific regulatory documents. Failure to obtain these documents in advance due to declaration errors will result in the goods being detained, preventing customs clearance, and requiring return shipment or destruction.
IV. Credit Downgrade and Subsequent Trade Restrictions
Enterprise Credit Score Reduction: Declaration errors constitute customs violations, and customs will deduct points from the enterprise’s credit score. A lower credit rating will result in the loss of preferential customs clearance policies (such as consolidated tax payment and priority inspection).
Trade Barrier Risks: Long-term non-compliance with declaration regulations may lead to the company being designated as a key target for customs supervision, affecting import and export rights, and even leading to a loss of trust from cooperating clients and loss of orders.
V. Serious Consequences: Return Shipment, Destruction, and Legal Liability
Return Shipment or Destruction: If the product name or material involves prohibited or restricted import goods (such as endangered materials or infringing goods), customs will order the goods to be returned or directly destroyed. This results in a total loss of the goods, and the company will be responsible for round-trip shipping costs and port fees.
Legal Accountability: Deliberate false declarations or concealment (such as under-declaring prices or misrepresenting product names) constitutes smuggling. The company’s负责人 (responsible person) and customs broker will be subject to administrative and even criminal liability, resulting in a criminal record.
VI. Key Points for Avoiding Problems
Three-Way Consistency in Declarations: Ensure that the product name, specifications, and materials on the customs declaration, invoice, packing list, and bill of lading are completely consistent and match the actual goods. Precise Description: Specify the product name clearly (e.g., “100% Cotton Men’s T-shirt” instead of “Clothing”), indicate the size/model in the specifications, and clearly state the material composition (e.g., “100% Polyester” instead of “Synthetic Fiber”).
Pre-shipment Review: Have your freight forwarder/customs broker review the documents before shipment. For sensitive goods, confirm the tariff code and regulatory requirements in advance to avoid errors.
(Note: The timelines and costs mentioned above are for reference only. Please refer to the actual situation at the time of shipment for specific details. Thank you!)
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