TECH & INNOVATION  /  SME

By FedEx | August 18, 2025

Customs compliance has become a strategic cornerstone of global trade, playing a vital role in ensuring smooth cross-border operations. Discover tools that simplify the complexities of trade compliance and keep your business moving forward.

• Customs regulations are not one-size-fits-all. Every market has its own set of rules, documentation requirements, duty structures, and product restrictions.
• Staying informed on shifting customs rules is essential for maintaining compliance and minimizing trade disruptions.
• With the right, up-to-date knowledge, tools, and partners, businesses can navigate customs with confidence and unlock smoother cross-border trade.

With global trade rebounding, businesses face a more complex regulatory landscape – particularly in Asia Pacific, where fast-changing customs rules require more than paperwork. Today, compliance demands precision, agility, and a new level of digital intelligence.

A recent study revealed that one in three businesses cite customs compliance as one of their top international trade challenges – and that number is only expected to grow. In this dynamic environment, even a single misstep – such as an incorrect HS code, a vague product description, or a missed update to US de minimis rules – can derail a shipment and damage customer trust.

At FedEx, we believe companies that thrive in this environment are those that view customs as a strategic lever for growth and efficiency. 

From reactive to proactive: Rethinking the role of customs in global trade

Businesses in Asia Pacific have traditionally viewed customs compliance as a transactional necessity – a box to tick at the end of a shipping workflow. But in today’s interconnected world, that mindset no longer holds. Compliance is now a front-line function. It affects customer experience, cost predictability, and brand reputation.

With increasingly complex trade regulations, particularly in key import markets like the US, businesses that understand and act on customs nuances early gain a clear competitive advantage.

Essential customs terms every Asia Pacific shipper should know

Before diving deeper, it's essential to understand the basic customs terminology. Here are a few key terms every shipper, whether a small business or large enterprise, should know:

HS and HTS codes: These are internationally recognized codes used to classify goods for customs, determine duty rates, and identify whether the goods require special licenses or inspections.

Commercial invoice: This is the single most important shipping document that customs authorities use to assess goods, verify their value, and calculate duties and taxes. Your commercial invoice should include clear item descriptions, the declared value in the correct currency, the HS or HTS code for each item, the terms of sale, and the sender and recipient information.

De minimis value: This is the minimum dollar amount below which goods can enter a country without incurring duties.

DDU (Delivery Duty Unpaid) and DDP (Delivery Duty Paid): These are international commerce terms (also known as Incoterms) that specify which party is responsible for paying customs duties.

Entry summary: This is a customs clearance form that provides detailed information about the shipment.

Cross-border shipping tips: Avoiding common pitfalls in customs clearance

Customs clearance challenges are often avoidable – with the right knowledge and tools. Here are the five most common issues we see across the region and how to solve them:

1. Misclassified products

Problem: Misclassifying goods with the wrong HS code is one of the most common and costly customs errors. It can lead to shipment delays, incorrect duty payments, or fines.

Solution: Always verify HS codes before shipping. At FedEx, we've developed Customs AI – an AI-powered chatbot that guides APAC customers shipping to the US to create specific item descriptions and select matching HS codes. Additionally, our HTS Code Lookup feature assists customers in selecting appropriate HTS codes based on their item descriptions. Available on FedEx Ship Manager, these industry-first tools make it faster and easier than ever to get customs classification right the first time, reducing errors and keeping shipments on schedule.

2. Vague item descriptions

Problem: Using broad or ambiguous terms like “parts,” “accessories,” or “samples” can cause customs officers to flag a shipment for inspection, delaying clearance and increasing the risk of rejection.

Solution: Detailed item descriptions will expedite processing. Write specific item descriptions that clearly identify the product, what it’s made of, and its purpose. For example, “injection-molded polyethylene water bottle cap, 20 mm” is much clearer than “plastic item” as an item description. The more precise the description, the smoother the clearance process.

3. Incomplete documentation

Problem: Even if everything else is in order, missing or incomplete paperwork can stop a shipment in its tracks – especially when entering highly regulated markets like the US.

Solution: Ensure all paperwork is complete with FedEx Global Trade Manager, which allows shippers to prepare and upload customs documentation directly through the FedEx Document Preparation Center.

4. Underestimating duties and taxes

Problem: Unexpected duties and taxes can erode margins, cause shipment refusals, and damage customer trust, especially in regions with complex or shifting tariff regimes.

Solution: Estimate applicable duties and taxes in advance using FedEx Global Trade Manager, which helps businesses understand landed costs before shipping. Transparent cost planning helps reduce surprises for everyone involved in the customs compliance process in Asia Pacific – customers included.

5. Outdated regulation knowledge

Problem: Customs authorities frequently update regulations. Relying on outdated rules can lead to delays, fines, or confiscated goods.

Solution: With FedEx Trade Solutions, you'll get access to experienced trade specialists who will provide customized support and even training on the latest customs regulations. For US-bound shipments, the FedEx Tariff Info Hub offers timely updates on tariffs, de minimis changes, and trade regulations to help you ship smoothly. You can also track global de minimis thresholds through the Global Express Association.

Turning compliance into a competitive advantage with FedEx

At FedEx, we understand that international growth depends on more than logistics – it demands regulatory mastery. Our suite of cross-border shipping tools empowers shippers across Asia Pacific to navigate customs confidently, plan shipments accurately, and quickly adapt to changing global trade conditions.

When compliance becomes part of your growth strategy, the border becomes a bridge – not a barrier.