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It is an act which denotes the supremacy of the Government of the land. It tells people what you can do while coming into the Country and what you should do while going out of the Country.
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Every Country in the world has an organization called Customs. The job of the Customs is a sovereign act. It is an act which denotes the supremacy of the Government of the land. It tells people what you can do while coming into the Country and what you should do while going out of the Country.
It is a barrier that has to be crossed, and that process of crossing that barrier is called Clearance, so Customs Clearance is the process of passing the barrier that is Customs. I can give you a small example. When you go to a shopping mall, you find that the security at the gate checks your bag, they check your body, they check what you are taking inside, and they check what you are taking outside.
But what are they checking? They only check whatever the mall owner wants to permit comes inside, and whatever the mall owners do not wish to allow remains outside. The security decides the process of checking at some places you are frisked. At some places, you go through a wire at some places you open your bag for them to check. Now let us replace the mall with India.
Let us replace the security with Customs and let us replace the mall owner with the Ministry of Commerce that is the DGFT that is Director General of Foreign Trade. As per experts of Custom Clearance in Ahmedabad, it is Director General of Foreign Trade (who) decides what can come in and what can go out under what condition and in what form. It is a job of Customs (to) ensure that only what is permitted by the DGFT comes into the Country and goes out of the Country in the form in which it has to happen. The process of Customs Clearance generally happens through what is known as a licensed Customs Broker.
A licensed Customs Broker is an agency that represents active working in it and who have passed Customs examination. This is called the Regulation-6 exam and those people who have passed the exams are authorized to act on behalf of that company or firm or on their own to undertake Customs Clearance.
As per the experts of Custom Clearance in Ahmedabad, the process of Customs Clearance involves filing documents with a lot of details. These documents are called the Bill of Entry or Shipping Bill under which materials are processed in Customs. The cargo which is covered by these documents is also handled in Customs and thereafter Customs gives what is known as ‘out of Customs charge’. On export cycle, it provides what is known as a ‘Let export order.' The process of getting out of Customs charge or OCC and on export cycle getting ‘Let export order’ or ‘LEO’ indicates that the process of Customs Clearance is complete.
Your cargo can move into the Country or can move out of the Country. As per the Custom Brokers, it implies ==> Whatever conditions are imposed by the DGFT have been fulfilled. ==> It means that whatever conditions imposed by other Government Departments (if any) have been fulfilled. ==> It implies that all processes of Customs have been complied with.
So Customs Clearance is a simple process of filing documents with Indian Customs ensuring that all the requirements of the Government of India being through the Ministry of Commerce or other Ministry are fulfilled. All processes of Customs, which may include checking of documents, which is called assessment or checking of the cargo, which is called examination and payment of duty and other charges are all completed, and thereafter the cargo is permitted to move into the Country or to move out of the Country.
