Expanding your business beyond borders is exciting — new customers, bigger markets, endless potential. But there’s one hurdle that can turn that excitement into stress fast: customs.
For many small businesses diving into cross-border shipping, customs rules can feel like a maze of jargon, forms, and fees. And while the opportunities are huge, so are the risks if you get it wrong. A missing document, a misclassified product, or a misunderstood regulation can lead to delayed deliveries, surprise costs, or even seized shipments.
But here’s the good news: these pitfalls are avoidable. In this guide, we’ll walk you through the top five customs mistakes small businesses make — and how to dodge them like a pro.
Related Reading: Why most SMEs fail at customs—and how to win
Mistake 1: Incomplete or Incorrect Paperwork
If customs had a “most wanted” list of shipping issues, this one would be at the top. Documentation is the backbone of international trade, yet it’s where many small businesses slip up. From commercial invoices to packing lists and certificates of origin, even a single error can bring your shipment to a halt.
How to fix it: Double-check everything (then check again)
Create a simple checklist for every shipment — what documents are needed, what details must be included, and who signs off. Better yet, consider using shipping software that automates documentation and flags missing information. It’ll save you time, stress, and potentially thousands in fines.
Mistake 2: Misclassifying Goods
Every product shipped internationally needs an HS (Harmonised System) code, which determines the duty rate and regulations that apply. Get this wrong, and you could end up overpaying on duties, underpaying (and facing penalties), or seeing your goods stuck in customs limbo.
How to fix it: Learn your HS codes (or get help)
Use online tools or consult a customs broker to ensure your goods are classified correctly. Understanding your HS codes is essential for accurate tariffs and smoother customs compliance. It’s not glamorous — but it’s the kind of detail that keeps your SME logistics operation running smoothly.
Related Reading: Customs delays are costing you: Here’s how to beat them
Mistake 3: Ignoring Customs Compliance
Customs isn’t just about ticking boxes — it’s about understanding the rules of international trade. Each country has its own set of regulations, and failing to follow them can result in fines, delays, or even confiscated goods.
How to fix it: Stay informed and proactive
Make customs compliance a non-negotiable part of your logistics process. Subscribe to updates from customs authorities, attend webinars, and train your team regularly. Or, better yet, partner with a shipping solutions provider for small businesses that specialises in compliance. They’ll help you navigate rule changes and make sure your shipments stay on the right side of the law.
Mistake 4: Underestimating Shipping Costs
Shipping internationally isn’t just about postage — it’s a mix of duties, taxes, insurance, and handling fees. Many small businesses underestimate these expenses, only to be hit with unexpected costs later.
How to fix it: Know your total landed cost
Before shipping, calculate the total landed cost — that’s the full price of getting your product from the warehouse to the customer, including every duty, tax, and fee. Doing so helps you set realistic prices and prevents last-minute financial shocks. Many SME logistics providers offer online calculators or built-in tools to make this easier.
Related Reading: Stop losing money: Customs tips every small business should know
Mistake 5: Choosing the Wrong Shipping Partner
Not all logistics providers are created equal. Some excel in cross-border shipping for SMEs, while others focus on large-scale operations. Choosing the wrong partner can lead to late deliveries, missing parcels, or lacklustre customer support — all of which can hurt your brand.
How to fix it: Find the right fit
When researching partners, look beyond cost. Seek out shipping solutions designed for small businesses — providers who understand the challenges SMEs face and offer flexibility, transparent pricing, and reliable delivery times. Check their track record, read reviews, and ask about technology integrations that make tracking and reporting easier.
Pro tip: A trusted logistics partner can act as an extension of your business, not just a courier.
Key Takeaway: Streamline customs for faster shipping
Navigating customs doesn’t have to be overwhelming — and it certainly shouldn’t hold your small business back from going global. By avoiding these five common mistakes and partnering with the right logistics experts, you can save money, prevent delays, and deliver a smoother customer experience.
Whether you’re sending products across the border for the first time or scaling up your international operations, mastering customs compliance is one of the smartest investments you can make. With the right shipping solutions for small businesses, you can expand confidently, knowing your shipments are handled with care every step of the way.
Get in touch today and streamline your cross-border shipping!
