All You Need to Know About Customs Clearance

1. All You Need to Know About Customs Clearance What is Customs Clearance: The Customs Department is an important government authority of a country. It regulates, controls and looks over the movement of the people along with the import and export of goods in and from the country. The prime role of the customs clearance process is to collect customs duties and ensure the smooth functioning of the trade. Jurisdiction and Powers of Customs Clearance: Customs Department has its presence all across the country, especially at the entry and exit points of cargo and people, especially at the seaports, airports and borders. The department has the power to check the goods, documents and other details. It can even take legal action against dubious-looking people or cargo.

2. Working of Clearance Process: At the port of origin, the customs clearance department confirms that all the goods to be exported go through a thorough check from the authorities and then it is processed for customs clearance for export. Likewise, when the cargo arrives at the destination port, it goes through a thorough check along with document verification before it moves to the clearance process for imports. A similar procedure is followed at the intermediate ports or ports of transit. Customs Clearance Costs: The cost of customs clearance process or fees depends upon several factors like the type of products, their value, quantity, volume etc. It also depends upon the countries which are trading, distance and number of intermediate ports. Customs duty also has many elements like education cess, Basic Customs Duty, Countervailing Duty, Education Cess, Protective Duty, Safeguard Duty, Anti- Dumping Duty etc. Custom Clearance Documents: Documentation is an important part of the customs clearance process. Without producing proper documents, the Customs Departments won’t allow the import- export of the goods even after paying the required custom duty. Document for Export: Export Licence: It is a mandatory document for every person or organisation engaging in exporting goods to other countries. Exports Licences vary according to the types of products you want to export. Purchase Order From The Buyer: It provides the details of the goods and products to be exported. It also has the list of agreed terms and conditions of the trade between both parties. Sales Invoice: A sales invoice contains detailed information about the goods to be exported such as ordered details, product descriptions, selling price,

3. packaging, cost of the product, weight, quantity, volume, origin and destination ports, freight insurance details and other relevant terms and conditions. This customs clearance document must be produced when asked by a customs officer. Packing List: The packing list gives details about the items included in the shipment. This list is sent with the shipment and verified by the customs officer. Country of Origin or COO Certificate: COO certificates are a declaration of the exported goods that are produced and manufactured in a particular country. Along with the above-mentioned documents, customs clearance process requires a Letter of Credit, ProForma Invoice, Commercial Invoice, Warehouse Receipt, Health Certificates Documents for Import: Apart from documents like Purchase order from the buyer, sales invoice of the supplier, Packing list COO certificate etc following are required for import customs clearance Import Licence: Like Export Licence, Import Licence is a compulsory document for any person or company wishing to import goods from other countries. It is also required for availing certain trade benefits offered by the government. Bill of Entry: A Bill of entry is an important customs clearance document to be filled out and signed by the importer. It is required by the customs authority to carry out examination and assessment of goods. After that, the importer can avail ITC claim for the imported goods. Bill of Landing or Airway Bill: This document is issued by the carrier to the shipper. It acts as a contract for the transportation of goods, pre-mentioned in the bill. It has details about the goods such as the type of products, origin and destination etc. Bill of Landing is useful in case of theft or other unforeseen events.

4. Benefits of Customs Clearance Services Customs Clearance is a cumbersome process. It requires a lot of time and dedicated persons to carry out the intricate processes of customs clearance. Here, customer clearance services come in handy. Here are a few benefits of Customer Clearance Services: They have detailed knowledge and information about all the processes involved in customs clearance, customs duty, legal and pragmatic solutions to the arisen issues. These services ensure that your cargo reaches your desired destination without delay and any administrative hurdles. Many a time individuals are charged with extra duty or charges because of lack of knowledge or other allied reasons. But the customer clearance services help you avoid unnecessary expenses. These services are experts in these domains with years of experience under their belt. Thus they know exactly what kind of documents are required for the end-to-end customs clearance process. How they are filled and how they are processed. This reduces unnecessary paperwork and makes the work more convenient.