Standard Operating Procedure for Customs and Shipping

What a good one includes

• A master registry of your products paired with their verified Harmonized System (HS) codes to ensure accurate tariff calculations and prevent border delays.
• A detailed documentation checklist specifying who generates and approves mandatory forms like commercial invoices, packing lists, and certificates of origin.
• A clear visual matrix defining the exact Incoterms used for each supplier or buyer relationship to establish who pays for shipping, insurance, and duties.
• A structured communication protocol for sharing shipping documents with your customs broker ahead of cargo arrival to facilitate pre-clearance.
• A step-by-step exception handling guide outlining immediate actions to take in the event of customs holds, inspections, or damaged cargo.
• An archiving process detailing how long shipping documents must be stored to satisfy domestic and international tax or customs audits.

Common mistakes to avoid

• Leaving HS code determination entirely to the supplier or broker without internal verification.
• Using vague product descriptions on commercial invoices instead of precise, customs-friendly language.
• Failing to update the SOP when trade agreements, local tariff rates, or carrier requirements change.
• Omitting clear ownership roles, leaving staff confused about who is responsible for resolving clearance delays.

Frequently asked questions