In international trade, customs plays a crucial role in ensuring regulatory compliance and facilitating the safe flow of goods between countries. Within this process, customs channels (green, orange and red) are a system designed to classify and manage shipments based on their level of risk and the documentation presented.
Understanding how these channels work not only helps companies anticipate potential delays or inspections, but also allows them to optimize their logistics operations and minimize costs.
From the green channel, which ensures immediate clearance, to the red channel, which involves thorough physical and documentary inspections, each classification has a significant impact on transportation times and costs.
In this article, we’ll explore what customs channels are, what they mean and how they affect the logistics of your international shipments. In addition, we will share tips to avoid delays and explain how Across Logistics can be the perfect partner to manage these processes efficiently.
What are customs channels?
Customs channels are a classification system used by Customs authorities to manage and monitor international shipments. This system divides shipments into three main categories: green, orange and red, each of which indicates the level of control that will be applied to the goods before they are allowed to enter or leave the country.
The aim of this system is to ensure compliance with international regulations, prevent the entry of illegal or undeclared goods, and protect countries’ economic and health interests.
Through these channels, Customs determines whether a shipment can be released directly or whether it requires additional inspections, either documentary or physical.
How is a channel assigned to a shipment?
The assignment of a channel is done automatically by means of computerized systems that analyze various factors associated with the shipment, such as:
Documentation: If the documents provided are complete and in order.
Type of goods: Low-risk products, such as common items, are more likely to pass through the green channel.
Importer/exporter history: Companies with impeccable records tend to face fewer controls.
Specific regulations: Some products, such as drugs, food or dangerous goods, require additional controls.
Green channel in customs
The green channel in customs is the most desired by companies that ship internationally, as it allows the immediate release of the goods without the need for additional physical or documentary inspections. This means that customs authorities consider that the shipment complies with all legal and regulatory requirements, significantly reducing clearance times.
What does the green channel mean?
When a shipment passes through the green channel, the goods are automatically released after initial analysis by the customs system. This process is ideal for companies with strong document management and a reliable track record in their business operations.
Advantages of the green channel
Fast clearance: By not requiring additional inspections, shipments are released in the shortest possible time, speeding up the delivery of goods.
Cost reduction: Avoids costs associated with physical or documentary inspections, such as additional fees or temporary storage expenses.
Increased logistics efficiency: Allows companies to maintain fluidity in the supply chain, meeting established delivery deadlines.
When is the green channel assigned?
A shipment is more likely to be assigned to the green channel when:
Documentation is complete and accurate.
The goods are low risk, such as common or non-regulated products.
The importer/exporter has a reliable track record and regularly complies with customs regulations.
Common green channel cases
Low-value products: Small shipments or with goods not subject to special regulations.
Frequent importers and exporters: Companies with clean records and regular operations often benefit from the green channel.
Full regulatory compliance: Goods with all required documentation and no irregularities.
Orange channel in customs
The orange channel in customs implies that the shipment will be subject to a documentary inspection, but without the need for a physical inspection of the goods. This level of control seeks to ensure that the documentation presented is accurate and complies with legal regulations before releasing the shipment.
Although it may cause a moderate delay compared to the green channel, the orange channel is less stringent than the red channel and, if the documents are in order, the goods can be released quickly.
What does channel orange imply?
When a shipment passes through the orange channel:
Customs authorities review only the documents associated with the shipment, such as the commercial invoice. The customs authorities only review the documents associated with the shipment, such as the commercial invoice, bill of lading, certificate of origin, among others.
The goods are not physically inspected, which minimizes time and costs compared to a complete review.
Reasons for assigning the orange channel
A shipment may be assigned to the orange channel for a variety of reasons, including:
Incomplete or inconsistent documentation: Minor errors in documents may lead to a more detailed review.
Goods subject to specific regulations: Products such as foodstuffs, drugs or chemical materials often require additional document checks.
Routine verification: Customs sometimes randomly selects shipments for document review as part of their control processes.
Impact of the orange channel on logistics
Moderate delays: Additional time depends on the complexity of the documentation and the speed of response from the importer/exporter.
Possible additional requirements: If errors or inconsistencies are detected in the documents, corrections or new certificates may be requested, which could lengthen the process.
How to prepare for Channel Orange
Pre-check documentation: Make sure that all documents are complete and properly prepared before shipment.
Know the applicable regulations: Check if the product is subject to specific regulations in the destination country.
Have a trusted logistics partner: A partner such as Across Logistics can help ensure that documents are accurate and comply with customs requirements.
Red channel in customs
The red channel in customs represents the highest level of control in the clearance of goods, as it includes both a documentary inspection and a physical inspection of the cargo. This channel is assigned when customs authorities consider that a shipment may represent a high risk or when irregularities are detected in the documentation presented.
Although the red channel involves more time and costs for the company, it is also a crucial tool for ensuring safety and compliance in international trade.
What does the red channel imply?
When a shipment is classified in the red channel, customs authorities perform the following actions:
Exhaustive documentary review: they verify every detail of the documents presented, such as the commercial invoice, bill of lading, certificates of origin, certificates of origin and any documentation required for the merchandise in question.
Physical inspection of the goods: They inspect the contents of the shipment to confirm that they match the description and quantities declared in the documentation. They also look for possible legal non-compliance or undeclared goods.
Reasons for assigning the red channel
High-risk products: Regulated goods, such as food, drugs, chemicals or hazardous materials.
Incomplete or questionable documentation: Serious errors or inconsistencies detected during initial analysis.
Importers or exporters with no track record: New companies or companies with a history of non-compliance may be subject to stricter controls.
Customs alerts: When a shipment comes from a country with specific restrictions or alerts.
Impact of the red channel on logistics
Significant delays: Physical inspection can prolong the clearance of goods, especially if the cargo is complex or extensive.
Additional costs: Expenses may be incurred related to storage, inspection fees and possible penalties if non-compliance is detected.
Risk of penalties: If serious irregularities are found, the goods may be detained, confiscated or even destroyed.
How to handle the red channel
Documentary preparation: Make sure all documents are clear, complete and in order before shipping the goods.
Complies with product regulations: Verify that goods comply with the specific regulations of the destination country.
Respond promptly to requests: If authorities request additional documentation, submit it as quickly as possible to minimize delays.
Count on an experienced logistics partner: Companies like Across Logistics can help you manage red channel inspections and resolve potential problems quickly and efficiently.
Factors that determine the assigned channel
Customs channel assignment (green, orange or red) is not random; it is based on an automated risk analysis that considers multiple factors related to the commodity, the importer/exporter and local and international regulations. Understanding these criteria can help companies better prepare their shipments and minimize delays or complications.
Main Allocation Factors
1. Documentation submitted
The quality, accuracy and completeness of the documents is one of the most important factors.
Errors, inconsistencies or missing documents increase the likelihood of being assigned to the orange or red channels.
Key documents such as commercial invoice, bill of lading and certificates of origin must be in order.
2. Type of merchandise
Goods considered low risk, such as unregulated or low-value products, are usually assigned to the green channel.
Regulated or high-risk products, such as food, pharmaceuticals, hazardous chemicals or restricted goods, are more likely to be inspected.
3. History of the importer/exporter
Companies with a reliable and consistent history of compliance are usually assigned to the green channel.
On the other hand, new companies with a history of irregularities or no previous experience in international trade are more likely to be assigned to the orange or red channels.
4. Country of origin or destination
Shipments from countries with trade restrictions, sanitary alerts or high rates of customs fraud tend to receive greater scrutiny.
Some trade agreements may facilitate clearance, increasing the likelihood of passing through the green channel.
5. Specific regulations
Each country has unique regulations for certain products, which may include additional certification requirements, permits or specific declarations.
Shipments that do not comply with these regulations will automatically be routed to the orange or red channels.
How does the Automated Allocation System work?
In most countries, channel allocation is done through computerized systems that analyze shipment data in real time. These systems consider all of the above factors to classify shipments according to their level of risk, ensuring that customs resources are focused on the operations that require the most control.
Keys to reduce inspection risk
Accurate and complete documentation: Review all documents before shipping to avoid inconsistencies or errors.
Regulatory compliance: Make sure goods comply with applicable local and international regulations.
Building a reliable track record: Operating with transparency and consistency helps build a positive reputation with customs authorities.
Working with a Trusted Logistics Partner: A company like Across Logistics can help you properly manage documentation and comply with all regulatory requirements.
Related content.
Fiscal Representative. What it is and its importance in international trade
Commercial Invoice. What it is, parts, types and how to make it.
Temporary Storage Warehouse (TSW). What it is and its main functions
How long does it take to dispatch in each channel?
The time it takes to clear goods through customs depends largely on the channel assigned to them (green, orange or red). Each of these channels has different inspection requirements, which directly impacts shipment clearance times. Below is a breakdown of how long each process can take and the factors that influence its duration.
1. Green Channel: Immediate Dispatch
The green channel offers the fastest release time, as it does not require additional inspections.
Estimated time: Goods are usually released automatically within hours or even minutes after entering customs.
Key Factors: Documentation must be complete and the shipment must show no signs of risk.
2. Orange Channel: Documentary Inspection
In this case, the shipment will undergo a detailed review of the documents submitted, which may add some time to the process.
Estimated time: Between 24 and 48 hours, depending on the complexity of the shipment and the availability of inspectors.
Key Factors: If errors or inconsistencies are detected, the clearance time may be extended until the necessary corrections are delivered.
3. Red Channel: Physical and Documentary Inspection
The red channel is the slowest due to the exhaustive controls required.
Estimated time: 2 to 5 working days, although this may be extended if the physical inspection is complex or if problems are identified with the goods or documents.
Key factors: Type of product, volume of shipment and any irregularities detected during inspection.
Additional factors that may influence timing
Customs cargo volume: Periods of high demand may delay processing of all channels.
Local regulations: Some goods may require special approvals or additional permits.
Importer/Exporter Responses: The speed with which the shipper delivers documents or corrects errors significantly affects times.
How to reduce dispatch times
Advance preparation: Ensure that all documents are accurate, complete and comply with the regulations of the destination country.
Know the regulations: Research whether your goods are subject to special inspections in the destination country.
Rely on a logistics partner: Working with an expert such as Across Logistics ensures that documentation is reviewed in advance, minimizing errors and delays.
Across Logistics: Your partner in customs management
The customs brokerage can be complex, but with Across Logistics you’ll have the peace of mind of having experts handle it all. From preparing documentation to dealing with inspections, we streamline every step so your shipments reach their destination without a hitch.
Rely on Across Logistics to simplify your customs operations and ensure your goods comply with all regulations. Contact us at today and find out how we can be the logistics partner you need.
