Release Before Import Permit (BP) — Customs Procedures, Security and Inspection
Interlink編集部What Is Pre-Permit Pickup?
Pre-Permit Pickup is a system that allows cargo to be collected before the issuance of an import permit, subject to approval by the Director-General of Customs.
In practice, it is often referred to as BP, Before Permit, Pre-Import Permit Pickup, Pre-Permit Pickup Approval, or Import Permit Pre-Cargo Pickup Approval. Normally, imported cargo cannot be taken inland until an import permit has been granted. However, under certain conditions, pickup before the import permit may be allowed.
That said, Pre-Permit Pickup is not a system for freely releasing cargo in urgent situations. It is an exceptional system used only after confirming approval by the Director-General of Customs, posting security equivalent to customs duties and consumption tax, justification for the application, cargo details, compliance with other regulations, status of customs inspections, and post-pickup management arrangements.
Scope Covered in This Article
This article clarifies the basic meaning of permission-before-pickup, the differences from standard import permission, situations where it may be considered, decision-making flow, provision of security, confirmation of other regulations, relation to customs inspection, scenarios where approval is denied, and key practical points that freight forwarders should verify.
| Item | Content Covered in This Article | Topics Covered in Other Articles in Detail |
|---|---|---|
| Basics of Permission-Before-Pickup | Explanation of the system allowing cargo withdrawal before import permission with approval by the Director-General of Customs. | Import permission, import declaration, customs examination |
| Differences from Standard Import Permission | Comparison between cargo release after standard import permission and pickup under permission-before-pickup approval. | Cargo release after import permission, post-permit delivery, D/O exchange |
| Situations for Considering Use | Typical cases such as factory lines, exhibitions, quality deterioration, tariff classification review, and undetermined dutiable value. | Tariff classification, dutiable value, certificates of origin, sample exports |
| Decision-Making Flow | Sequential review of import declaration, bonded cargo entry, necessity, other regulations, inspection, security, and post-pickup management. | In-gate confirmation, bonded area, customs inspection, other regulations |
| Provision of Security | Clarification of the purpose, amount, type, and internal processes for securities equivalent to customs duties and consumption tax. | Providing security, payment deadline extensions, customs duties, consumption tax |
| Confirmation of Other Regulations | Risks when compliance with the Food Sanitation Act, Pharmaceuticals and Medical Devices Act (PMD Act), quarantine, PSE, etc. is pending. | Other regulations, Food Sanitation Act, PMD Act, plant quarantine, animal quarantine |
| Relation to Customs Inspection | Considerations when inspection designation, requests for additional documents, or verification of item names, quantities, or values remain. | Customs inspection, inspection designation, inspection attendance |
| Cases Where Approval Is Denied or Blocked | Summary of prohibited imports, pending other regulations approval, false origin marking, insufficient security, and unclear post-pickup management cases. | Prohibited imports, origin markings, security changes, submission of additional documents |
| Freight Forwarder’s Involvement Scope | Division between adjustments freight forwarders can support and customs or regulatory decisions that should not be definitively determined. | Customs brokers, importers, customs authorities, relevant government agencies roles |
Situations Where It Is Used
Pre-permit pickup is considered when leaving cargo in a bonded area for an extended period poses significant commercial difficulties for the importer.
For example, it becomes an issue when there are circumstances that do not allow waiting for the standard import permission, such as raw materials that cannot stop a production line, parts with tight delivery deadlines, cargo intended for exhibitions or events, cargo whose quality may be affected by prolonged storage, or cargo requiring extra time to finalize tariff classification or assessed value.
Additionally, if the submission of a certificate of origin is delayed or if the invoice is a proforma requiring additional time to determine the taxable value, pre-permit pickup may be considered after confirming compliance with the regulatory requirements.
However, this system is not automatically available simply because the importer is in a hurry. Approval from the Director-General of Customs is required after verifying conditions such as the cargo content, duty amount, other applicable laws, inspection status, collateral, the importer’s circumstances, and the management method after pickup.
Differences from Standard Import Permission
Under standard import procedures, cargo is released after import declaration, customs examination, necessary inspections, compliance with other regulations, payment of customs duties and consumption tax, and issuance of import permission.
In contrast, pre-permission pickup allows cargo to be retrieved before import permission is granted, subject to approval by the Director-General of Customs. However, this does not mean cargo can be released freely; it requires customs approval, provision of security, justification for the request, verification of cargo details, and proper management after pickup.
| Stage | Standard Import Permission Flow | Pre-Permission Pickup Flow | Practical Considerations |
|---|---|---|---|
| Cargo Arrival and Receipt | Cargo is received into the bonded area and becomes subject to import declaration and inspection. | Cargo is received into the bonded area, and it is confirmed whether pre-permission pickup (BP) can be considered. | Before in-gate confirmation, verifying cargo location and devanning status takes priority. |
| Import Declaration | Import declaration is filed, proceeding to customs examination. | Import declaration is filed, and the need for pre-permission pickup is reviewed. | Insufficient documentation, missing HS codes, valuation, or importer information can hinder progress. |
| Customs Examination and Inspection | Customs examination, necessary inspections, and checks for compliance with other regulations are conducted before permission is granted. | Even if examinations or verifications require more time, confirmation is sought from customs as to whether pickup will be permitted. | Pending inspections, additional document requests, or doubts about description, quantity, or value impact BP eligibility. |
| Security | Handled as usual through tax payment or extensions of payment deadlines, etc. | Provision of security equivalent to customs duties and consumption tax is required. | Security amount, type, guarantee arrangements, and internal approvals may take considerable time. |
| Pickup | Cargo is picked up after import permission is granted. | Cargo is picked up before import permission following approval by the Director-General of Customs. | Clear definition of storage location, intended use, sale eligibility, and management responsibility after pickup is essential. |
| Final Procedure | After import permission, proceed to release and inland delivery. | After unresolved issues are finalized, documents are submitted and import permission is granted. | Do not neglect submission of finalized documents such as quantity, value, tariff numbers, and certificates of origin after BP approval. |
Decision Flow for Considering Pre-Permit Pickup
Whether pre-permit pickup can be used is determined by sequentially verifying multiple conditions. Even with urgent cases, if there are issues with the declaration, receipt into the bonded area, other regulations, inspections, guarantees, or approval reasons, the process may not proceed immediately.
| Verification Stage | Items to Confirm | If No Issues | If Issues Exist |
|---|---|---|---|
| 1. Import Declaration | Has the import declaration been filed? | Proceed to consider the Bonded Pickup (BP) application. | Prepare necessary documents, HS codes, assessed value, and importer information for declaration. |
| 2. Bonded Cargo Entry | Has the cargo been received into the bonded area? | Confirm cargo location and condition. | Check receipt confirmation, cargo unstuffing status, and cargo location. |
| 3. Necessity | Is there a specific reason to pickup before Import Permit? | Organize the reasons for application. | Clarify concrete commercial obstacles beyond mere urgency or preference. |
| 4. Other Regulations | Have checks for the Food Sanitation Act, Pharmaceuticals and Medical Devices Act (PMD Act), quarantine, PSE, etc. been completed? | Proceed to check BP approval possibility. | If other regulations are incomplete, BP approval may not be granted. |
| 5. Customs Inspection | Are there pending designated inspections or requests for additional documents? | Confirm approval feasibility and timing of pickup. | Prioritize completion of inspections, submission of additional documents, and customs confirmation. |
| 6. Guarantee | Can a guarantee covering customs duties, consumption tax, etc. be provided? | Confirm guarantee details and proceed with application. | Check guarantee amount, method of provision, internal approvals, and bank guarantees. |
| 7. Post-Pickup Management | Are the storage location, planned use, planned sale, and management responsibility after pickup clearly defined? | Proceed with arrangements for pickup after customs approval. | Clarify the importer’s management system and scope of responsibility. |
Approach to Providing Security
For pre-permit release, it is necessary to provide security equivalent to customs duties, consumption tax, and other taxes. This mechanism ensures the payment of taxes due after the cargo is taken before import permission is granted.
Security is not a "fee for expedited cargo release." Even after taking the cargo before import permission, the importer must submit the required documents to customs and obtain the Import Permit once the final quantity, price, tariff classification, and tax amount are confirmed.
| Item | Meaning | Practical Confirmation Points | Actions if Issues Arise |
|---|---|---|---|
| Purpose of Security | To secure the customs duties, consumption tax, and other taxes ultimately payable. | Confirm if the required security can be prepared even when tax amounts are not yet finalized. | If estimated tax amounts are unclear, coordinate with the customs broker to estimate. |
| Basis for Amount | Based on the equivalent of customs duties, consumption tax, and other applicable taxes. | Check for taxable value, duty rates, consumption tax, local consumption tax, and potential surtaxes. | Since insufficient security will delay approval, account for the risk of tax amount changes. |
| Form of Provision | Provided in forms accepted by customs. | Confirm acceptability of cash, guarantor's guarantee, government bonds, municipal bonds, securities, real estate, etc. | In practice, guarantees from financial institutions or cash deposits are common, so verify preparation time. |
| Internal Procedures | Importer-side approval for security provision or guarantees is required. | Approvals from accounting, finance, legal, and administrative departments may take time. | If deadlines are tight, involve finance department early alongside sales. |
| Security Changes or Increases | Issues may arise if security value decreases, estimated tax increases, or guarantor’s financial strength changes. | Confirm possibility of increasing security, changing guarantors, or altering security forms. | Follow instructions from customs or customs broker and consider additional security or change procedures. |
| Process After Cargo Retrieval | Submit documents and proceed to Import Permit once outstanding matters are confirmed. | Ensure final documents for price, quantity, origin, tariff classification, etc. are not left pending. | Delays in final permit affect security release and internal processing. |
Main Types of Security
Security used for pre-permit release must be provided in a form accepted by customs. In practice, the key issues are whether the importer can prepare it promptly, whether a financial institution’s guarantee can be obtained, and how long it takes for security registration or internal approval.
| Type of Security | Description | Main Supporting Documents | Practical Considerations |
|---|---|---|---|
| Cash Deposit | A method where the amount equivalent to the tax liability is deposited in cash. | Original deposit receipt, security provision letter | It significantly impacts cash flow, so financial verification on the importer side is required. |
| Guarantor’s Guarantee | Security provided through a guarantee from a financial institution or similar entity. | Guarantee letter, security provision letter, security receipt | Obtaining bank guarantees, guarantee period, guarantee amount, seal registration, and internal approvals may take time. |
| Government / Municipal Bonds | Providing government bonds or municipal bonds as security. | Original deposit receipt, registration notice, etc. | When used in practice, confirm valuation, redemption, and whether substitution is needed. |
| Corporate Bonds and Other Securities | Securities recognized as reliable by the Director-General of Customs can be used as security. | Original deposit receipt, securities-related documents | Not all securities qualify as acceptable security. |
| Land, Buildings, etc. | Providing real estate as security. | Certificate of registered matters, certified copy of registry, valuation documents | Valuation, registry, and rights verification may require considerable time. |
| Standing Security | Security usable for multiple pre-import permit releases within a set period and limit. | Guarantee letter, security provision letter, security registration number | Confirm remaining security balance, authorized customs office, and applicable procedures. |
Relationship with Other Regulatory Confirmations
In cases of pre-permit pickup, it may be necessary to address confirmations related to other regulations such as the Food Sanitation Act, Plant Protection Act, Act on Prevention of Infectious Animal Diseases, Pharmaceuticals and Medical Devices Act (PMD Act), chemical regulations, and the Electrical Appliance and Material Safety Act.
Cargo that has not completed the required permits, approvals, notifications, or inspections under other laws cannot be freely picked up before the import permission is granted. Taking delivery without confirming whether the cargo is legally importable or approved for domestic use or sale poses significant practical risks.
In particular, for products such as food, tableware, cosmetics, medical devices, pharmaceuticals, electrical appliances, plants, animal-derived goods, and chemicals, separate permits, approvals, notifications, inspections, or confirmations under the relevant laws may be required independently of customs procedures. Before considering pre-permit pickup, it is essential to verify that no outstanding issues remain under other regulatory requirements.
Relationship with Customs Inspections
For cargo subject to designated customs inspections, whether and when pre-permit pickup is allowed depends on the inspection’s progress and findings.
If the inspection is incomplete, there are discrepancies in item descriptions or quantities, additional documentation is required, or classification and valuation remain under review, pre-permit pickup may not be immediately permitted.
Furthermore, when cargo needs to be moved while customs requires a physical inspection, practical issues such as inspection location, cargo condition, sample verification, unpacking, and repacking come into play. Freight forwarders must confirm not only whether an inspection is designated but also what outstanding issues remain after the inspection.
Situations Where Approval Is Denied or Problems Arise After Approval
Pre-permit cargo pickup is an exceptional system that requires approval by the Director-General of Customs. Therefore, submitting an application does not guarantee approval. Furthermore, even after approval, unresolved issues, collateral, compliance with other laws, or cargo management problems could affect the final Import Permit or release of collateral.
| Situation | Reason for Issue | Parties and Documents to Confirm | Practical Response |
|---|---|---|---|
| Possibility of cargo prohibited from import | Prohibited cargo creates issues with import itself before any bonded receipt confirmation. | Importer, customs broker, customs office, product documentation | Priority is verifying cargo contents and import eligibility, not reviewing pre-permit pickup. |
| Pending approval or permission under other laws | Cargo without completed checks on other law compliance poses significant risks for domestic pickup, use, or sale. | Relevant government agencies, customs broker, importer, application and permit documents | Organize unresolved compliance issues and confirm whether they can be resolved prior to pre-permit pickup approval. |
| Suspicions regarding country of origin marking | Cargo with false country of origin markings may not qualify for pre-permit pickup approval. | Certificates of origin, product labels, manufacturer information, importer | Verify consistency between markings and documents; consider label corrections or additional documentation if needed. |
| Insufficient collateral amount | Increases in estimated tax, changes in taxable value, or tax rate changes may cause collateral to fall short. | Customs broker, customs office, importer, finance department | Consider increasing collateral, modifying existing collateral, or adjusting guarantee amounts. |
| Collateral value decline | Decline in the value of collateral or changes in guarantor’s financial status can render collateral inadequate. | Customs office, guarantors, financial institutions, importer | Follow customs instructions and consider increasing collateral or changing guarantors. |
| Unclear usage or sales plans after pickup | High risk if the storage location, intended use, or sale permission of pre-permit picked up cargo is unclear. | Importer, delivery destination, warehouse, customs broker | Clearly define storage location, intended use, and management responsibility. |
| Unresolved pending documentation | After pre-permit pickup approval, submission of finalized documents such as quantity, price, tariff classification, or certificates of origin to customs is required once confirmed. | Importer, customs broker, sales department, accounting department | Manage document submission deadlines and responsible parties to proceed to final Import Permit issuance. |
Common Misunderstandings
Since permitted pre-release allows cargo pick-up before import permission is granted, customers often mistake it for a normal early release method. However, in reality, it involves conditions such as customs approval, security deposits, other regulatory requirements, and inspection status.
| Misunderstanding | Correct Perspective | Practical Notes |
|---|---|---|
| You can always use permitted pre-release if the cargo is urgent | Urgency alone is insufficient; customs approval, security deposit, application reasons, and cargo content must be verified. | Clearly organize any commercial disruptions or specific needs. |
| Once a security deposit is provided, you can pick up the cargo | A security deposit is only one necessary condition; issues with other regulations, inspections, or cargo contents may prevent approval. | Check not only the security deposit but also the status of other regulatory confirmations and customs approvals. |
| Other regulatory approvals can be confirmed later | Cargo lacking other regulatory permits or approvals may not qualify for pre-release approval (BP approval). | Verify pending matters relating to food, the Pharmaceuticals and Medical Devices Act (PMD Act), quarantine, PSE, etc. |
| Cargo can be released ahead even while customs inspection is ongoing | Depending on the inspection details and issues found, release may not be permitted. | Confirm completion of inspection, any additional documents required, and unresolved tariff classification or valuation issues. |
| Using permitted pre-release means import permission is no longer required | Even after BP approval, once pending issues are resolved, documents must be submitted and import permission finally obtained. | Do not forget to submit documents and secure the import permission after cargo pick-up. |
| After BP approval, cargo can be freely sold or used | Depending on other regulations, cargo contents, approval conditions, and post-release controls, caution is required for use or sale. | Confirm the importer's management responsibility and their planned use or sale of the cargo. |
| Customs brokers alone can easily decide | The importer, customs broker, customs authorities, and sometimes other regulatory agencies need to be consulted. | Clarify the importer's responsibilities, security deposits, planned use, and storage location. |
Common Practical Issues
| Case | Potential Issues | Documents / Parties to Confirm | Practical Response |
|---|---|---|---|
| Wanting to pick up raw materials quickly to avoid factory line stoppage | Although urgency exists, the process cannot proceed without proper declaration, guarantee, other regulatory compliance, and inspection status. | Importer, customs broker, delivery destination, production schedule, declaration documents | Clarify the impact of line stoppage and simultaneously coordinate with customs for confirmation and guarantee preparation. |
| Deadline for exhibition cargo entry is approaching | Time constraints may justify BP consideration, but approval becomes difficult if cargo contents or other laws present issues. | Exhibition documentation, entry deadline, Invoice, Packing List, customs broker | Clarify exhibition schedule, cargo entry deadline, and alternative measures to organize application rationale. |
| Delay in tariff classification review | If considering pick-up before classification is finalized, estimated duty and guarantee settings become key issues. | Product description, ingredient list, samples, tariff inquiry documents, estimated duty amount | Estimate duty differences if classification changes, ensuring guarantees cover potential shortfalls. |
| Taxable value is undetermined on proforma invoice | Because final price is uncertain, guarantee amount and subsequent document submission may cause issues. | Proforma Invoice, contract, price documents, anticipated final Invoice | Arrange estimated taxable value based on the premise of submitting official documents once pricing is confirmed. |
| Delay in submitting certificate of origin | If documents for preferential or EPA tariff rates are missing, issues may arise regarding submission extension and guarantees. | Certificate of origin, declaration of originating goods, submission schedule, customs broker | Confirm if submission extension for certificate of origin is allowed and estimate any duty differences. |
| Other regulatory checks are incomplete | If checks for food, Pharmaceuticals and Medical Devices Act (PMD Act), quarantine, PSE, etc., are incomplete, BP approval may not be granted. | Notification forms, permits, inspection results, documents from relevant authorities | Verify whether outstanding regulatory issues can be resolved before applying for BP approval. |
| Guarantee preparation takes time | Bank guarantees, guarantee letters, internal approvals, and guarantee registrations can cause delays in cargo release. | Guarantee certificates, guarantee letters, internal approval documents, finance department | Involve importer's accounting and finance departments from the early stages of BP consideration. |
| Undetermined documents are left unresolved after approval | There is a risk of complacency after pick-up, leading to delays in completing final import permission procedures. | Final Invoice, quantity documents, tariff classification, certificate of origin | Manage deadlines for post-pick-up document submission, responsible contacts, and customs follow-up status. |
Scope of Freight Forwarders' Involvement
Freight forwarders may assist in coordinating communication among importers, customs brokers, CFS, CY, bonded warehouses, delivery companies, and consignees regarding cargo release before import permission.
However, freight forwarders are not in a position to independently decide on BP approval, the adequacy of security, compliance with other laws and regulations, tariff classification, customs value, or the final import permission. It is important to separate site coordination from customs and legal determinations in pre-permit release cases.
| Category | Support Easily Provided | Matters Not to Decide | Practical Approach |
|---|---|---|---|
| Cargo Status | Confirm in-gate status, devanning status, cargo location, and possible gate-out dates | Assert that BP approval will be granted | Confirm cargo status with CY, CFS, warehouse, and customs brokers |
| Application Reason | Gather information from customers about deadlines, factory shutdowns, exhibitions, quality deterioration, etc. | Determine alone if the reason is sufficient for application | Organize the information and liaise with customs brokers for customs confirmation |
| Security | Inform customers of the need to prepare security | Decide on security amounts, types, or guarantee eligibility | Encourage coordination among importer’s finance department, customs broker, and customs for confirmation |
| Other Regulations | Check with customers and customs brokers whether other regulatory confirmations remain outstanding | Decide on legality under food laws, PMD Act, quarantine, PSE, etc. | Verify with relevant authorities and confirm the presence of permits or approval documents |
| Customs Inspection | Coordinate inspection designation, scheduled inspections, CFS operations, and supervision arrangements | Guarantee cargo can be released before inspections are completed | Confirm any outstanding issues after inspection with customs brokers |
| Post-Release Management | Coordinate delivery location, storage site, delivery schedule, and gate-out booking | Assert that post-release use or sale is unrestricted | Confirm management responsibility, planned usage, and sales plans with the importer |
| Customer Explanation | Summarize and explain the current stage, remaining tasks, costs, and expected timeline | Assure customers that BP will always enable early release | Explain status using terms like “awaiting approval,” “security verification in progress,” “inspection ongoing,” “waiting for final permission,” etc. |
Freight Forwarder Decision Checklist
When considering pre-permit cargo pickup, each condition must be carefully verified, and the customer should be informed not simply whether it is possible but what specific confirmations are needed to proceed.
| Verification Stage | Contact Party | Items to Confirm | Actions if Issues Arise |
|---|---|---|---|
| Start of BP Consideration | Customs Broker, In-house Customs Department | Has the import declaration been completed? Are all required declaration details available? | If not declared, first prepare the declaration documents, HS code, taxable value, and importer details. |
| Before Application | CY, CFS, Bonded Storage, Warehouse | Has the cargo been received into the bonded area? | If receipt is unconfirmed, verify cargo location, planned entry, and devanning status. |
| Consultation with Customer | Importer, Cargo Owner, Sales Representative | Specific reasons for urgent pickup | Clarify concrete reasons such as production stoppage, exhibitions, quality degradation, or missed business opportunities. |
| Before Application | Importer, Accounting, Finance, Customs Broker | Is security for applicable customs duties and consumption tax available? | Confirm the amount equivalent to the tax, type of security, internal approvals, and time needed to arrange the guarantee. |
| From Before Application to Before Approval | Importer, Customs Broker, Relevant Government Authorities | Have other legal permissions, approvals, notifications, or inspections been completed? | If incomplete, organize the status of other legal requirements before submitting the BP application. |
| After Declaration, Before Application | Customs Broker, Customs Liaison Staff, CFS, Warehouse | Status of customs inspections, additional document requests, tariff classification, and value verification | If inspections are pending or additional documents are requested, confirm approval feasibility and expected completion of inspections. |
| Before Application | Importer, Cargo Owner, Warehouse, Delivery Destination | Storage location, intended use, sales plans, and management responsibility after pickup | Clarify storage location, intended use, sales plans, and responsible party for management. |
| Before Customer Notification | Importer, Customs Broker, Freight Forwarder, Warehouse, Delivery Company | BP procedure fees, security-related costs, storage charges, release fees, and delivery costs | Review whether additional costs will be incurred compared to normal post-permit release. |
| After Pickup | Customs Broker, Importer, Customs | Have confirmed documents on value, quantity, tariff classification, origin, etc. been submitted? | Do not neglect document submission; proceed toward final import permission. |
Cost and Responsibility Overview
In cases of pre-permit cargo pickup, additional checks and procedures may occur compared to the usual post-import permit cargo release. This may involve storage fees within bonded areas, CFS handling charges, release labor fees, drayage costs, customs broker processing fees, and costs related to financial security.
Additionally, managing responsibility after taking cargo before the import permit is critical. Proceeding without clarifying where the cargo will be stored, whether it can be used, if it may be sold, or whether any other regulatory restrictions still apply can lead to future problems.
| Cost/Responsibility Item | Typical Situations | Party to Confirm With | Key Points for Customer Explanation |
|---|---|---|---|
| BP Application & Customs Clearance Fees | When pre-permit pickup approval application, customs confirmation, or additional documentation submission is required | Customs broker, importer | Additional procedures may be required beyond the usual declaration process. |
| Financial Security Costs | When bank guarantees, cash deposits, security registration, or guarantee period settings are necessary | Importer, finance department, financial institution, customs broker | Security serves to secure tax amounts; it is not a handling fee. |
| Storage Fees | When cargo remains in bonded areas during BP consideration, security preparation, inspection, or other regulatory checks | CY, CFS, bonded warehouse, freight forwarder | Even if BP is under consideration, longer preparation times can increase storage fees. |
| Release & Delivery Costs | When cargo is released from CY, CFS, or warehouses after approval and delivered to the consignee | Delivery company, warehouse, freight forwarder | Similar to normal release, booking release, arranging vehicles, and delivery charges are required. |
| Post-Pickup Management Responsibility | When cargo is collected before import permit and placed under the importer’s control | Importer, consignee, warehouse, customs broker | Clearly define storage location, intended use, sale permission, and management responsibility until final permit is obtained. |
Example 1: Considering Pre-Permit Pickup for Raw Materials That Could Halt a Production Line
When an importer brings in raw materials used on a manufacturing line and the cargo has already been received, but classification of tariff codes or valuation verification is taking time, pre-permit pickup may be considered. If the raw materials do not arrive on time, the production line may stop, leading to delays in delivery schedules and suspension of supply to clients.
In this situation, simply stating "it is urgent" is insufficient. It is necessary to clarify which production line the materials will be used for, what operational disruptions will occur if delayed by a certain number of days, whether substitute raw materials are available, and how storage and usage are planned.
Additionally, it should be confirmed whether sufficient security equivalent to customs duties and consumption tax can be provided, whether other regulatory checks have been completed, and if there are any remaining customs inspections or requests for additional documents. The freight forwarder can assist with schedule adjustment and cargo status confirmation but does not have the authority to guarantee approval of the bonded procedure (BP).
Example 2: When the Delivery Deadline for Exhibition Cargo Is Approaching
For cargo intended for exhibitions or events, the venue delivery date is fixed, and waiting for standard import permission may cause the cargo to miss the exhibition schedule. In such cases with tight deadlines, pre-permit release may be considered.
However, even for exhibition cargo, this does not eliminate the need for other regulatory checks, customs inspections, provision of security, or clarifying the reason for the application. Especially for food, cosmetics, electrical goods, medical devices, and plant or animal-derived products, if non-customs approvals remain pending, BP approval may not be granted.
In practice, details such as the exhibition name, event dates, delivery deadline, intended use, whether the items are for sale, plans for return shipment, and storage location are organized and confirmed with customs through the customs broker. The freight forwarder also simultaneously checks the scheduled delivery time to the venue and arranges transportation.
Example 3: When Pre-Permit Pickup is Delayed Due to Incomplete Compliance with Other Laws
For products such as food, tableware, cosmetics, medical devices, and electrical appliances, submission, permission, approval, or inspection under relevant laws and regulations may be required separately from customs procedures. Even if the importer requests expedited handling through a Bonded Pickup (BP), unrestricted pickup may not be possible if the compliance review with other laws remains incomplete.
In this case, the issue is not logistics speed but legal confirmation of whether the cargo is permitted for import or allowed for use and sale domestically. Cargo that has not obtained required permissions or approvals under other laws may not be eligible for BP approval.
Freight forwarders should avoid making definitive judgments regarding other law compliance and instead encourage consultation with customs brokers, importers, and relevant government agencies. It is important to inform customers that submitting a BP application does not guarantee faster release and that progress may be halted until all other regulatory reviews are complete.
Example 4: Delays in Release Due to Time Required for Security Preparation
For pre-clearance pickup, a security deposit corresponding to customs duties, consumption tax, and other charges must be provided. Even if the importer requests a BP, arranging a bank guarantee, cash deposit, security letter, internal approvals, or finance department authorization may take time.
Sales and on-site personnel often assume that cargo can be picked up immediately once the security deposit is submitted. However, practical tasks such as calculating the security amount, arranging a guarantor, setting the guarantee period, registering the security, and obtaining customs confirmation require considerable time. Especially for importers using BP for the first time, internal approval processes may not be fully established.
Freight forwarders should confirm with customs brokers not only the possible cargo release date but also the status of security provision preparations. When explaining to customers, it is important to distinguish whether BP-related delays stem from security preparation or customs approval waiting times, rather than issues with the CFS or delivery company.
Example 5: Delay in Submission of Final Documents After BP Approval
Even after receiving BP approval and withdrawing the cargo, if quantities, prices, tariff numbers, certificates of origin, or other details that were previously undecided become finalized, the necessary documents must be submitted to customs to ultimately obtain the import permission.
If the consignee misunderstands that "customs clearance is complete" upon cargo withdrawal, the submission of the final invoice, quantity confirmation documents, certificates of origin, price information, and similar materials may be delayed. This could impact import permission issuance, bond release, and internal accounting processes.
Freight forwarders and customs brokers should not close the case after BP approval but must continue managing the remaining tasks until final import permission is obtained. It is important to explain to customers that "cargo withdrawn" and "import permission granted" are not the same.
Points to Explain to Customers
When explaining to customers, it is important to clarify that pre-permit cargo release is an exceptional system allowing cargo to be picked up before import permission is granted, and it is not a routine early release service.
Additionally, its use involves approval from the Director-General of Customs, provision of security, justification of the application, verification of compliance with other laws and regulations, confirmation of cargo contents, and post-pickup management. Therefore, it is not automatically granted simply because there is urgency.
Freight forwarders should explain the current status by categorizing it as “Import Declaration Submitted,” “Under Customs Examination,” “Under Inspection,” “BP Review in Progress,” “Security Confirmation in Progress,” “Awaiting Approval,” “Pickup Available,” or “Final Permit Pending.” This helps customers better understand the situation.
Practical Considerations
- Pre-permit cargo release allows for the exceptional pickup of cargo before import permission is granted.
- Urgency alone does not guarantee BP approval.
- Collateral equivalent to customs duties, consumption tax, and other charges must be prepared.
- Collateral serves to secure the final tax amount payable, not to cover fees.
- Collateral may involve cash, guarantor guarantees, government or municipal bonds, securities, real estate, or other assets.
- If the collateral value is insufficient, additional collateral or changes to the collateral may be required.
- If approvals, notifications, or inspections required by other laws are incomplete, BP approval may not be granted.
- Cargo prohibited for import or cargo with problematic country of origin labeling may raise import eligibility issues before BP issuance.
- If customs inspections or requests for additional documents remain, confirm pickup eligibility and timing with the customs broker.
- Even after BP approval, submission of unresolved details such as quantity, price, tariff classification, and origin documentation is required to obtain the final import permission.
- Freight forwarders should not make binding decisions on approval but rather assist in confirming status with importers, customs brokers, customs authorities, and relevant government agencies.
Summary
Pre-permit pickup is a system that allows cargo to be collected before the Import Permit is issued, subject to approval by the Director-General of Customs.
This system can be effective for cargo with tight delivery deadlines or where delays would significantly impact commercial transactions. However, it requires verification of collateral provision, customs approval, compliance with other regulations, customs inspections, reasons for the application, and post-pickup management responsibilities.
In particular, collateral is not simply a fee but is intended to secure the amount equivalent to customs duties, consumption tax, and other taxes. If there are unresolved issues related to other regulations, prohibited imports, origin labeling problems, insufficient collateral, or incomplete inspections, approval for pre-permit pickup may be denied or final clearance after approval could be delayed.
In freight forwarding practice, it is important not to treat pre-permit pickup merely as an early release option but to proceed by clarifying the importer’s needs, customs procedures, collateral requirements, cargo management, costs, and the scope of responsibilities.
