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Three Cut-offs and Four Customs Procedures in International Shipping

In international shipping, timing is everything. Each shipment must meet strict deadlines to avoid delays or even missing the vessel. The industry uses the phrase “Three Cut-offs and Four Customs Procedures” to summarize the key milestones from preparing cargo to completing customs formalities.

The Three Cut-offs

  1. Customs Declaration Cut-off
    The final deadline for submitting customs documentation and obtaining release, which must be shared with the carrier. Shipping lines usually accept customs declarations about four days before departure and close them one or two days prior.
  2. Bill of Lading Cut-off
    The last moment when Bill of Lading (BL) details can be submitted or amended. After this point, changes may be subject to fees. Some carriers even adopt a one-time amendment policy, where any further modification will incur charges.
  3. Gate-in Cut-off (also known as Heavy Container Cut-off)
    The final deadline for delivering fully loaded containers into the terminal yard. Containers arriving after this time will not be accepted for loading.

The Four Customs Procedures

  1. Customs Declaration
    The process by which shippers, consignees, or their agents submit shipment details to customs for both exports and imports.
  2. Customs Clearance
    Covers all import-related operations, including declaration, inspection, documentation, transportation, and delivery, often handled by freight forwarders.
  3. Customs Finalization
    Takes place after customs release. Shipment documents are filed with authorities for record-keeping, export tax rebates, or foreign exchange verification. The Customs Finalization Date marks the completion of all export procedures and authorizes vessel departure.
  4. Customs Procedures / Customs Clearance Process
    A general term for the entire set of customs formalities—declaration, inspection, taxation, and release. For processing trade, post-verification must also be completed before final clearance.

Conclusion

The concept of “Three Cut-offs and Four Customs Procedures” summarizes the critical milestones and formalities in international shipping. Understanding these steps is essential for ensuring timely shipment, smooth customs clearance, and a clearer grasp of how global logistics operates.

Glossary of Terms (for reference)

Dock Receipt (Terminal Receipt)
A receipt issued by CY/CFS confirming cargo has been received after customs release.

Bill of Lading Amendment
The process of submitting or revising BL details, subject to deadlines and fees.

Gate-in Cut-off (Heavy Container Cut-off)
The final deadline for delivering fully loaded containers into the terminal.

Customs Finalization Date
The date when all export customs procedures are completed and the vessel is authorized to depart.

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