Custom clearance process involves preparing and then submitting documents which can facilitate export or import. The laws related to custom clearance differ in each country and it also varies from one port to the other. The custom clearance procedure checks against illegal import and ensure that proper taxes are levied against the import and export of the goods. Importer and exporters should have a valid IEC code (Importer-exporter code) for clearance of goods.
Categories of Import Goods
• Freely importable goods are goods which can be imported freely under open general license
• Restricted/ licensed imports require a license
• Prohibited items cannot be imported from other countries
Categories of Export Goods
• Freely exportable goods can be freely exported under open general license
• Negative list of exports include goods which cannot be exported to other countries
• Restricted/ licensed export are goods which require a license for export
Filing of documents is either done by the agent or the importer. The shipment has to be tracked to ensure timely arrival or else demurrage charges have to be paid to the import handling authority. The essential documents required are bill of lading, packing list, commercial invoice, Freight certificate, Cargo Arrival Notice, purchase order or LC and other specific documents.
Step by Step Process in Export Clearance
• The export of the cargo from the factory is informed to the export officials
• An empty container is sent to the factory from the container yard for loading
• The container is filled in the presence of an excise official
• The export documents are kept ready
• The container is loaded , sealed and then sent to the port
• The documents for custom clearance are filed at the gateway port
• The container then moves for vessel loading
Role of custom clearing agents
A company that is involved in imports and exports requires the service of a third party namely a custom clearance agent. They are also known as carrying or forwarding agents. Approval and coordination with the regulatory agencies is facilitated by the custom clearance agent. The clearance agent has an understanding of custom rules and ensures compliance with the same. They make sure that the consignment gets cleared within the stipulated time and no demurrage is incurred. They also have responsibilities prior to custom clearance such as gathering documents that need to be submitted from the importer and preparing the custom documents that have to be filed for clearance process. They prepare the bill of entry which is the main document based on which custom approves clearance. It is important to have the right custom clearance agent because warehousing and storage fees increase if the process is not handled smoothly.
Categories of Import Goods
• Freely importable goods are goods which can be imported freely under open general license
• Restricted/ licensed imports require a license
• Prohibited items cannot be imported from other countries
Categories of Export Goods
• Freely exportable goods can be freely exported under open general license
• Negative list of exports include goods which cannot be exported to other countries
• Restricted/ licensed export are goods which require a license for export
Filing of documents is either done by the agent or the importer. The shipment has to be tracked to ensure timely arrival or else demurrage charges have to be paid to the import handling authority. The essential documents required are bill of lading, packing list, commercial invoice, Freight certificate, Cargo Arrival Notice, purchase order or LC and other specific documents.
Step by Step Process in Export Clearance
• The export of the cargo from the factory is informed to the export officials
• An empty container is sent to the factory from the container yard for loading
• The container is filled in the presence of an excise official
• The export documents are kept ready
• The container is loaded , sealed and then sent to the port
• The documents for custom clearance are filed at the gateway port
• The container then moves for vessel loading
Role of custom clearing agents
A company that is involved in imports and exports requires the service of a third party namely a custom clearance agent. They are also known as carrying or forwarding agents. Approval and coordination with the regulatory agencies is facilitated by the custom clearance agent. The clearance agent has an understanding of custom rules and ensures compliance with the same. They make sure that the consignment gets cleared within the stipulated time and no demurrage is incurred. They also have responsibilities prior to custom clearance such as gathering documents that need to be submitted from the importer and preparing the custom documents that have to be filed for clearance process. They prepare the bill of entry which is the main document based on which custom approves clearance. It is important to have the right custom clearance agent because warehousing and storage fees increase if the process is not handled smoothly.
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