All About Customs Clearance

1. All About Customs Clearance Trading has taken a mammoth form in recent decades. There is a tremendous rise in trading across the world and the growth in e-commerce and global logistics has increased it further. Countries are promoting international trade to accumulate valuable foreign exchange and create employment in the booming sector. Customs clearance is an important aspect of international trade. Every trader needs to take clearance from the competent authorities before importing or exporting goods in and out of the country. Customs Clearance Process It is a mandatory procedure before goods can be imported or exported internationally. After the shipment is cleared by the authorities, the shipper will be provided with documents confirming that the shipment is cleared and the necessary duties are paid. There is a standard procedure for customs clearance in India or any other country in the world. Let us look at some of the important ones. Customs clearance works primarily on the documents. Certain documents must be prepared and presented before the customs authorities in order to clear the shipments. It is then followed by an examination of shipment and payment of duty. Only then one can take the delivery of the shipments. Documents required for customs clearance for export of goods internationally include Buy order from buyer, Sales invoice, Packing list, Shipping bill, Bill of Lading or air waybill, Certificate of Origin While the documents required for clearance for import of goods from other countries include, Purchase Order from Buyer, Sales Invoice of the supplier, Bill of Entry, Bill of Lading or Airwaybill, Packing List, Certificate of Origin The procedure for customs clearance begins with the Bill of Entry. A customs officer will be assigned to check the paperwork for the cargo which is to be cleared. We will require four copies of this bill, original and duplicate for the customers, one for the importer and one for the bank to make remittances. Step-by-Step Custom Clearance Procedure  Bill of Entry is the first step toward the customs clearance procedure. The customs officer will be assigned to check the paperwork of the desired shipment. The customs clearance procedure officer is going to file bills in 4 copies such as the original and the duplicate one for the customs, the third copy for the importer to keep, and thereafter, the fourth copy for the bank to make remittances. The bills will be computerised.  The next step is the EDI (Electronic Data Interchange) assessment. In the EDI system the calculation of duty, taxes, cesses etc. is done by computers. The assessment offices may raise a query in case he needs clarification on any issues. After the evaluation is done the Bill of Entry is printed. Many times the documents are evaluated at the time for examination of the physical goods. Then the final bill of entry is printed. In some cases all the calculations are computerised and no assessment officer is needed for the same.

2.  whether all the documents are up to the mark and do modifications that are required as per the regulations. Some of the reputed importers and exporters provide a special facility called the Green Channel Facility. In this, there is no need for routine examination of the shipments. Instead, a declaration form must be given at the time of giving the bill of entry.  The next step is the payment of the duty through TR-4 challans. One must pay the duty in the designated banks only. Care must be taken that the duty is deposited in the right bank. After collecting and evaluating all the documents, the customs officers check Another question that the importer and exporter are concerned about is How much time will it take for the shipment clearance from customs? Well, there is no specific answer to this question. It may take as short as 20 minutes or it may take several days for the customs clearance. Once all the customs clearance procedures are done. The data is sent to the authorities. It is sent to the administrators and staff to examine where the goods are examined and the clearance is either given or rejected. This step takes around minutes or hours and days depending upon the availability of staff at the concerned port. Many times the shipment is rejected for many reasons, including:  Temporary rejection is primarily due to the difference between data that doesn't match the actual data. Or there is incomplete paperwork. This type of rejection can be rectified by correcting the issue and reproducing the required documents.  On the other hand, permanent rejection can be caused mainly because of misdeclaration of goods, under-valuing of goods or potentially hazardous material. • Customs clearance is an important part of international trade. It is important to check every product which is imported to the country or exported from it. If we abide by the regulations and follow the procedure there are lesser chances of mishaps and hazardous material being transported.