Who Is Responsible for Customs Clearance in Steel Profile Export?

Customs clearance is one of the most frequent confusing points in steel section foreign trade. Many buyers and sellers misunderstand who should handle customs declaration, submit documents, pay import duties and bear inspection risks.

The core rule is simple: customs clearance responsibility is determined by the Incoterms® 2020 term agreed in your sales contract.

We split clearance into two separate parts: export customs clearance at the country of origin (China) and import customs clearance at the destination country. Freight forwarders only operate clearance procedures on behalf of the appointed party; they will not undertake the legal risks, duties or taxes.

Clearance Responsibility by Incoterms

1. FOB / CFR / CIF / FCA / CPT / CIP These are the most widely used terms for H beams, IPE sections, UPN channels, angle steel and steel pipes.

• Export customs clearance (China): Seller’s responsibility We complete Chinese customs declaration, prepare required documents including MTC (Mill Test Certificate), commercial invoice, packing list, certificate of origin and inspection certificates.
• Import customs clearance (destination port): Buyer’s responsibility The buyer appoints a local customs broker, submits import declarations, pays import tariffs, VAT and any penalties caused by customs inspection.

Important note: Even if we help recommend a local clearing agent for you, the import clearance risk and charges still belong to the buyer.

2. DAP / DPU DAP and DPU mean the seller delivers goods to the named destination place.

• Export customs clearance: Seller
• Import customs clearance, duties and taxes: Buyer This is a common trap for steel buyers. DAP does NOT include import clearance or import tax.

3. DDP (Delivered Duty Paid) Under DDP:

• Export clearance + import clearance + all import duties, taxes and import permit formalities are the seller’s responsibility. We rarely quote DDP for steel profiles. Steel products face complicated anti-dumping duties, import quotas and local import license requirements in many countries. It brings huge, unpredictable risks for sellers.

4. EXW (Ex Works)

• Export customs clearance and import customs clearance are both the buyer’s responsibility. We only prepare steel goods ready in our warehouse. The buyer arranges pickup, export declaration and all overseas import formalities. EXW is seldom adopted in our steel business.

Special Reminders for Steel Section Trade

Steel products such as H beams, channel steel, angle steel and seamless pipes have strict customs control requirements:

• The seller provides export documents: MTC, CO, invoice, packing list.
• The buyer is responsible for confirming local HS code, import tariff rate, anti-dumping policy and import permission before placing orders.
• Any fines, cargo detention or extra charges arising from destination customs non-compliance fall on the responsible party defined by Incoterms.

Our Standard Practice

Unless we sign a special DDP agreement, our steel quotations are based on FOB / CFR / CIF terms. Import customs clearance, import duties and local customs risks are for the buyer’s account. We will fully support you by providing all documents required for your import declaration.

If you have any questions about Incoterms or document preparation for steel shipment, feel free to contact us.