Formal Clearance Thresholds
A formal clearance threshold is a predefined limit based on either the monetary value or the quantity of items in an order. Exceeding this limit triggers additional import requirements imposed by the destination country.
When this threshold is exceeded and a formal clearance process is triggered, a customs broker is required to clear the goods. This process is more complex, time-consuming, and expensive, and is generally not part of the typical cross-border e-commerce model.
Each country has its own formal clearance threshold. To prevent orders from crossing this threshold, a message is presented at checkout advising the customer if their cart value exceeds the threshold.
There are two ways in which the formal threshold is handled.
The customer is unable to complete checkout until they adjust their cart to meet the threshold requirements
Example
The customer can check out but they may be charged additional costs by customs for releasing the parcel.
Example
