Understanding List Clearance vs. General Import Declaration: Key Differences for Overseas Direct Purchases Released

When engaging in cross-border e-commerce (overseas direct purchasing), one of the most confusing aspects for importers is distinguishing between 'List Clearance' and 'General Import Declaration'.

These terms refer to the specific customs clearance procedures applied when goods purchased abroad enter the domestic territory. The method of clearance is determined by the type of goods, the purpose of purchase, and the value of the shipment. This classification directly impacts clearance processing time and whether customs duties and taxes are incurred.

1. What is 'List Clearance'?

'List Clearance' is the simplified procedure most consumers anticipate when buying from overseas. As the name suggests, clearance is granted based solely on the list of goods (manifest).

• Value Limit: Applicable when the item price is USD 150 or less. However, for goods shipped from the United States, the threshold extends up to USD 200.
• Purpose: Strictly limited to purchases for personal use (non-commercial).
• Procedure: Clearance proceeds using only the basic information on the waybill (Consignee name, Personal Customs Clearance Code, contact info, address, item description, price, and weight).
• Key Benefits: Since the formal import declaration process is omitted, customs duties and VAT are exempted. Additionally, no separate import approval is required, allowing for faster delivery.

2. What is 'General Import Declaration'?

Any shipment that does not qualify for List Clearance must undergo 'General Import Declaration'.

• Value Limit: If the item price exceeds USD 150, it principally becomes subject to General Import Declaration, attracting customs duties and VAT.
• Exceptions: Even if the item price is USD 150 or less and intended for personal use, it will undergo General Import Declaration if it falls under the 'List Clearance Exclusion Items' (detailed below). In this specific scenario (under $150 but excluded item), duties and VAT remain exempted.
• Procedure: A formal Import Declaration form must be submitted. This involves additional documentation compared to List Clearance, potentially extending delivery times as Customs reviews the details and compliance of the goods.

3. Critical 'List Clearance Exclusion Items'

Even if the value criteria are met, certain goods cannot undergo List Clearance and must be processed via General Import Declaration. These are known as 'List Clearance Exclusion Items'.

• Medicines and Herbal Medicines: Strict control is required for safety reasons.
• Wildlife Products: Items regulated under CITES (Convention on International Trade in Endangered Species), such as ivory, crocodile skin, and snake skin products.
• Quarantine Items: Agricultural, forestry, livestock, and fishery products requiring plant or animal quarantine.
• Health Supplements, Food, Liquor, and Tobacco: Items directly affecting public health or subject to specific tax criteria.
• Electronics: Following the revised notice effective June 7, 2022, broadcasting and communication equipment subject to the "Radio Waves Act" enforcement decree have been added, making List Clearance difficult for most electronic devices.
• Specific Cosmetics: Functional cosmetics (whitening, anti-wrinkle, UV protection), placenta-containing products, steroid-containing cosmetics, or items with unidentified ingredients posing potential risks.
• Other Items: Goods suspected of Intellectual Property Rights violations, shipments with inaccurate or additionally submitted manifest information, and items deemed inappropriate for List Clearance by the head of the customs office.

4. Criteria for Determining 'Item Price'

It is essential to understand exactly how the value is calculated to determine the clearance method and taxation.

• List Clearance Threshold: Based on the product price + local taxes (e.g., US sales tax) + local shipping fees. This total must be USD 150 or less (USD 200 or less for US shipments).
• General Import Declaration Taxation Threshold: Calculated based on the CIF value (Product price + local tax + local shipping + international shipping). If this total exceeds USD 150, duties and VAT are imposed. (Note: The USD 150 taxation threshold applies regardless of whether the goods are shipped from the US or elsewhere once it shifts to General Import Declaration).

Important Note for Mixed Shipments

A crucial point to remember is that if you purchase multiple items together, and even a single item in the shipment is subject to General Import Declaration (an exclusion item), the entire shipment will be processed under General Import Declaration.

Therefore, before finalizing an overseas purchase, it is prudent to verify whether your items are on the exclusion list and ensure the total value does not exceed the relevant thresholds.