November 18, 2025
Customs codes and processes
Laws, legislations, tariffs and rules
International trade has grown significantly over recent years, and as trade becomes more and more interconnected, it has also become more complex, particularly in a post-Brexit landscape. Whether you’re a small business shipping overseas for the first time or a multinational corporation operating across several continents, compliance with customs and trade regulations is non-negotiable.
When we talk about compliance, we’re referring to following the trade regulations of the countries you are exporting from and importing to. The international trade regulations, and therefore compliance, for each country will vary, so it’s essential to have an understanding of the requirements of your host and receiving countries.
Every business has a duty to adhere to customs and international trade regulations; otherwise, you may face hefty fines and lengthy delays at borders. Compliance is essential to keep your business moving in the highly regulated world of international trade.
What is Trade Compliance?
Trade compliance involves businesses following the laws and regulations that govern how goods move between countries. This includes having accurate paperwork, labelling the goods with the correct commodity codes, and making sure you have obtained relevant licenses. No matter what you’re exporting, compliance is key.
Having strong trade compliance will safeguard your business’s reputation and help keep you operating ethically and legally within borders, as well as preserving the smooth-running of your company and keeping delays to a minimum.
Understanding Customs Compliance
Customs compliance sits within the trade compliance framework, but focuses on meeting a specific country’s customs laws. Customs compliance works off a three-pillar approach:
| Classification | When importing goods, you must ensure that they have been assigned the correct commodity classification code so the correct tariff can be applied. This is achieved by using the Harmonised System, a numerical system that works across the globe to clarify what the imported product is. |
| Origin | Labelling where the product originates, or where it is made, is key to staying customs compliant and, depending on the origin, may determine whether an importer can benefit from a reduced or zero tariff rate. |
| Valuation | The value of the goods needs to be declared to determine the amount of customs duty and VAT payable on them. To calculate the valuation, the following methods can be used:
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What happens during a Customs Compliance Check?
A customs check allows agencies and authorities to check that all of the relevant documents and goods’ classifications are correct. This will involve a pre-clearance check (before the goods can be released) and a post-clearance compliance check.
Pre-clearance check: May involve examining all supporting documents and the goods to be traded. Questions may be asked about various aspects of the goods, including the declaration and classifications used. Samples of the goods may be taken for help in identifying them.
Post-clearance compliance check: May involve receiving a visit at your business premises to inspect the goods and documents relating to customs and international trade, as well as questions around the international supply chain you currently supply, and what you may supply in the future.
International Trade Compliance: The Bigger Picture
Whilst customs compliance deals with just countries’ importing and exporting requirements, international trade compliance takes a broader, more diverse view.
If your business is trading internationally, you must align with global trade laws, free trade agreements and export control regimes which apply to multiple jurisdictions. Businesses will need to navigate regulations like World Trade Organisation’s frameworks, trade sanctions and embargoes, and Export Administration Regulations (EAR) for US exports.
International trade compliance for businesses with a global supply chain is all about consistency in remaining at the same level of compliance diligence across every market.
Best Practices for Staying Compliant
Staying compliant with international trade regulations is vital for your business’s future success. Fines, shipping delays and reputational damage are all at stake if you fail to adhere to the varying regulations each country requires. To make sure you remain customs and trade compliant, follow these tips when importing or exporting goods.
Stay up-to-date: Customs laws can change quickly, and businesses are expected to adapt quickly to any change. Your business should stay informed of any amendments made to customs regulations for your import/export country.
Set up a compliance strategy: Handing over the task of customs compliance to an individual or team and creating a clear, robust compliance strategy will allow focus on the changing legislation and ensure your business and your goods remain within the standard boundaries.
Training and education: Keeping all of your staff, not just those in charge of the customs compliance process, informed of your compliance strategy and the expectations of your import/export countries helps keep your team prepared and capable of facing any compliance challenges.
How AGI can help
Customs and international trade compliance can be a complicated and exhaustive process. Here at AGI, we are on hand to help, and our leading customs brokers can walk you through the customs clearance service. To find out more about how we can streamline your trading processes, please get in touch.