Things To Know About Customs Clearance

The procedure of getting your items across international borders can be confusing and irritating. Custom clearance in India not only needs a huge deal of preparation and documentation, but its process also carries from country to country. While international trade is easier now than it was a few years ago due to the lessening of trade barriers, the introduction of modern technology, and simplification of rules – custom clearance in India and import and export business India still remains tough.

Documentation for Custom clearance in India

Shipping Bill: You can't export products by sea, air, or road without this document, which is also known as a bill of export. In India, a shipping bill is submitted online on Icegate in the form of an application in a recommended format. 

Commercial Invoice cum Packing List: A copy of the commercial invoice cum packing list must be included in an e-filed shipping bill. The packing list comprises cargo information like description, amount, and weight, while the commercial invoice is a contract of sale between the exporter and the importer.

Bill of Lading: The bill of lading is an agreement of carriage between the carrier and the shipper, as well as a receipt for shipped products and a document of title (ownership) of the products. It must be presented to customs for final clearance at the port of destination.

Bill of Entry: A bill of entry, which is a legal requirement for import clearance, ticks the arrival of products into a country prior to consumption or warehousing. It's filed on Icegate in India.  

Import/export licenses: Import/export licenses: In India, import and export licenses are needed for trade-in restricted products, and they are authorized by the Directorate General of Foreign Trade (DGFT). Also, Indian exporters require 2 more permits – an Import Export Code (a unique import and export business India number authorized by the DGFT) and an Authorized Dealer (AD) Code (registered at the export port and is necessary for customs clearance).        

Certificate of Origin: For customs clearance in many countries, a certificate of origin is required. It attests to the fact that a product was purchased, produced, made, and/or processed in a specific country.    

Health certificates: Health certifications, which are usually required for food items, certify that the products are suitable for human consumption and meet the required safety and quality requirements.

Insurance certificate: The items are covered for any loss or damage during shipment, according to this certificate from an insurance company. Insurance certificates assist customs officials in determining the duty that applies to the items.

Inspection certificate: This certification certifies that the items are pest-free, which could include packaging materials like wooden pallets.

Consular invoice: This invoice serves as documentation that the sent items have been approved by the embassy of the destination country. A consular invoice is required by many importing countries.      

Import/export declarations: These are declarations made by the importer or exporter about the products getting imported or exported, and they are frequently required by customs for the collection of foreign trade data.

What are the steps involved in customs clearance? 

Pre-departure steps

Getting import/export-ready:  The first step, as noted above, is to register with your country's customs authority and receive the relevant import/export licenses and permits.

Filing the shipping bill: The export procedure begins with the filing of the shipping bill by the exporter. But first, the exporter must examine the items' HS code, weight, value, and place of origin, as well as the duty due on them, to determine whether they are restricted/dangerous/prohibited, or whether the importing country allows them. Any cargo-specific certificates and permissions, like health/inspection/insurance certificates, dangerous material declarations, certificates of origin, or consular invoices, must be obtained by the exporter.

Export customs clearance: Customs performs the required checks after the shipping bill is submitted. This involves double-checking the shipping bill to ensure that the code, weight, value, duty rate, requested exemption, and any other details, as well as any accompanying documentation, are accurate, genuine, and in order. The shipping bill is endorsed with a Let Export Order, which is the final compliance requirement for export approval if the goods do not trigger an alarm.

Post-arrival steps

Filing the Bill of Entry: The importer or their agent files the bill of entry after the goods arrive in the destination country.

Import customs clearance: Customs checks the goods once again through a verification process if the amount, weight, HS code, and duty are right, as well as whether the items are restricted or prohibited for import, and whether any required documents are missing, and all. Customs may seek an examination, scanning, or inspection of the products if the products get red-flagged for some reason. If not, it may add a Pass Out Order to the bill of entry, allowing the importer to take delivery of the products after paying the applicable duty.

Exim Anything is an import and export business India where their global trade experts deal with every clearance need, offering fast custom clearance in India and assisting your business to succeed.