CBM: Customs regulations seem to be becoming more complex every year. What are the biggest customs clearance challenges online retailers are facing today?
Guy Cliffe: Interestingly, the biggest challenge isn't necessarily the regulations themselves—it's how quickly customs requirements are evolving across the world.
Authorities are moving away from paper-based processes and placing far greater emphasis on advance electronic data, automated risk profiling and supply chain transparency. That means retailers need to start thinking about customs much earlier in the fulfillment process.
Businesses are also selling into more international markets than ever before, each with different thresholds, documentation requirements and customs rules. Managing that complexity while still delivering the seamless customer experience consumers expect has become one of the biggest operational challenges in cross-border e-commerce.
The retailers that perform best are those that stop viewing customs as an administrative obligation and start treating it as a strategic part of their international operation.
"The biggest challenge isn't necessarily the regulations—it's how quickly customs requirements are evolving."
Guy Cliffe, Director at UKP Worldwide
Guy Cliffe: Brexit fundamentally changed how goods move between the UK and the European Union. Customs is now part of every shipment. Most businesses have adapted remarkably well, but I still see companies underestimating the importance of customs preparation.
One of the most common mistakes is assuming customs only matters when goods are ready to leave the warehouse. In reality, customs begins with the quality of the product data inside a retailer's own systems. Incorrect commodity codes, incomplete product descriptions or inaccurate customs values all create unnecessary delays, additional costs and poor customer experiences.
Returns are another area that is frequently overlooked. Many retailers are missing opportunities to recover import duties or simplify reverse logistics because customs isn't being considered as part of the overall returns strategy.
Guy Cliffe: Most delays aren't actually caused by customs authorities. They're caused by the information businesses submit. Missing shipment data, inconsistent documentation, inaccurate classifications, or discrepancies between commercial documents are what typically trigger additional inspections.
As customs authorities increasingly rely on automated risk assessment systems, data quality becomes the deciding factor. Retailers often assume they need a faster logistics solution when, in reality, improving the quality and consistency of their customs data will have a much greater impact.
Guy Cliffe: They're absolutely fundamental. Good customs clearance starts long before a parcel reaches the border. Every product description, HS code, declared value and shipment detail contributes to how customs authorities assess risk.
Generic descriptions like "gift" or "clothing" are no longer sufficient. Retailers that invest in detailed product information don't just reduce delays—they improve compliance, minimize manual intervention and ultimately create a much better customer experience.
"Good customs clearance starts long before a parcel reaches the border."
Guy Cliffe, Director at UKP Worldwide
Guy Cliffe: The most important thing is recognizing that ICS2 isn't a standalone regulation. It's part of a much broader shift towards digital customs. Authorities increasingly expect shipment information before goods even begin their journey.
Retailers should review the quality of their customs data today, work closely with experienced customs partners, and ensure their systems can support different international reporting requirements. Businesses that build flexibility now will adapt far more easily as new regulations continue to emerge.
Guy Cliffe: Large marketplaces benefit from enormous scale and sophisticated technology, but they also have to manage millions of products from thousands of different sellers. Maintaining consistent customs data at that scale is extremely challenging.
Mid-sized retailers usually have much greater control over their own product information, but often lack dedicated customs expertise or experience entering new international markets. Despite those differences, the fundamentals remain exactly the same. Success depends on accurate data, robust processes and choosing the right customs partner.
Guy Cliffe: Returns should be part of every retailer's customs strategy. Every returned item may involve import duties, VAT, and customs procedures. One of the biggest missed opportunities is the recovery of duty.
Many retailers are entitled to reclaim duties on returned goods but simply don't have the processes in place to do so. A well-managed returns operation doesn't just improve customer experience—it improves cash flow and reduces unnecessary costs.
Guy Cliffe: Automation is removing much of the manual work that has traditionally slowed customs. Direct integration between retailer systems and customs platforms helps ensure information is captured accurately and submitted consistently.
We're also seeing automated validation tools identify missing or inconsistent data before shipments even reach customs. Looking ahead, intelligent technologies that provide better supply chain visibility and identify compliance risks before goods move will become increasingly valuable.
Guy Cliffe: Customs authorities will continue placing greater emphasis on advance electronic data, digital compliance and security screening. Manual processes will continue to disappear, while scrutiny of low-value e-commerce shipments is likely to increase.
The retailers that invest today in robust data, integrated technology and flexible customs processes won't simply remain compliant.They'll be the businesses best positioned to compete internationally while delivering the frictionless customer experience consumers increasingly expect.
"The retailers investing in robust data today won't just remain compliant—they'll become more competitive internationally."
Guy Cliffe, Director at UKP Worldwide
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