electronic customs declarations

What is an Electronic Customs Declaration?

By Alexander Maasik

Jun 18, 2021|3 min read

When goods or packages enter a country, they are declared in customs. This means you need an electronic customs declaration for customs agents. To know which goods are being imported.

Custom declarations give a variety of important information about the shipment. A customs declaration is an official document. It lists and gives details of goods that are imported or exported. It is used to determine the taxes and duties one needs to pay. Also, customs agents use the information in the declaration to check if the goods are even allowed into the country. Or if they can be shipped to the person who ordered them.

To comply with the legal obligations and to place goods under a customs procedure, one needs to lodge a customs declaration.

If the customs agents think the info in the declaration is wrong or incomplete, they will not release the goods. This delay and investigation usually bring with it increased fees and a time delay. So, it is important to make sure the electronic customs declaration is correct. That they include the right HS-code and are sent to customs promptly.

For marketplaces, carriers, and postal operators to comply with this, they need to switch to automatically generated electronic declarations. As it is impossible to meet this demand manually. That is why Eurora has developed an electronic declaration service that can comply and submit electronic declarations easily and quickly.

Which goods do you need to declare in customs?

There are a lot of situations where goods do not require a customs declaration. These rules are governed by international trade regulations and free-trade agreements.

For example, until 2021, you didn’t need to declare most goods entering the European Union. Because all packages under the cost of €22 were exempt from being declared under the Low-Value Item Exemption. However, On 1 July 2021, EU removed the de minimis threshold of €22. This means that all items that enter the EU will need to be declared. This will lead to an unprecedented number of declarations.

How does Eurora’s electronic customs declaration service work?

Eurora developed the Electronic Declaration service that automates the preparation of electronic declarations and allows for pre-lodgement to the respective customs authority.

This is done through an intelligent transformation engine. This engine consolidates the data sets the online seller sends and turns this data into electronic customs declarations. Then the AI-engine submits the electronic declarations via the interfaces with customs authorities or ICS2.

The system works best if one also uses other Eurora’s services like Duty & Tax Calculation or Denied Party Screening service. While Eurora can offer all of its services separately, for companies it makes sense to use the entire platform. This way you can be sure that all of your data is in one funnel and there is nothing lost in translation when moving data between services.

Eurora’s Intelligent Cross Border Compliance Platform can screen the package and recipient against denied parties and prohibited item lists. It automatically assigns a correct HS code based on product description, calculates duties and taxes for each item sent, then, the AI will create the necessary electronic declaration and present it to the proper customs authority.

This entire process will take less than a second. So by the time the parcels start moving, the AI has finished all the necessary procedures. Don’t hesitate to reach out to see how Eurora can help your systems become faster and more reliable.