Custom clearance process: 4 easy steps to follow

4 Simple Steps for Customs Clearance

4 Simple Steps for Customs Clearance in India

intimidating process to many businesses and individuals who are involved in the import-export industry. But it doesn’t have to be. In fact, by following 4 Simple Steps for Customs Clearance in India, you can easily navigate the customs clearance process and avoid unnecessary delays. Whether you’re a first-time importer or a seasoned professional, understanding these steps is crucial for smooth and efficient clearance of goods.

Let’s go over the four steps to ensure your shipments move efficiently through Indian customs.

Step 1: Documentation

This is the most important step for the customs clearance process. Here, the whole process starts with the preparation of the necessary documents. The process ensures that the goods are properly classified and meet all regulations. The usual documents required include:

  • Bill of Lading: Provided by a shipping company that details that the cargo is received on board
  • Commercial Invoice: This document details the sale transaction or value that occurred regarding the goods.
  • Packing List: Detailing the contents of any package or shipment
  • Import Declaration: A declaration submitted to Indian customs containing details regarding the goods and their value
  • Receipt of Customs Duty Payment: Proof of payment for any duties and taxes applicable.

Accuracy and currentness of such documents make all the difference when it comes to the clearance speed of your consignment at customs. Poor or incomplete documentation is one of the main reasons for delay.

Customs Examination Step 2

After submitting the documentation, customs will conduct the examination. Customs officials in India would go through all the documents presented and may carry out an examination of the goods themselves. The scrutiny level depends on various factors: the type of goods, their declared value, and whether it arouses any suspicion of wrongdoings.

The examination generally follows one of two paths:

  • Physical Inspection: In some cases, the customs officers may physically inspect the goods to ensure that they match the description in the documents. This process takes time, especially if the shipment is large or contains complex items.
  • Non-Physical Inspection: If everything is in order and there are no red flags, customs may approve the clearance without inspecting the goods physically.

Note: India has an automated system known as the Indian Customs EDI System, which makes the process of clearing customs much faster. This system clears most shipments with very little delay.

 

Step 3: Payment of Customs Duty

India imposes and collects duties on imported goods. The amount of duty you need to pay depends on what you are importing, its value, and its origin. Customs authorities calculate duties based on the assessable value, which includes the cost, freight, and insurance costs.

Various forms of customs duty exist.

  • Basic Customs Duty (BCD): The basic duty levied on imported goods.
  • Integrated Goods and Services Tax (IGST): A tax levied on imports as well as domestic goods.
  • Additional Duties: Countervailing duty (CVD) or special additional duty (SAD) may be levied in addition to the above.

The clearance process cannot be complete without the payment of customs duties. The Indian government offers online payment through the Customs Department Portal and physical payment at the respective banks.

Once you pay the customs duty, you will receive a payment receipt. You then submit this receipt to the customs authorities to complete the clearance process.

Step 4: Release of Goods

After completing the assessment of customs duty and the checking procedure, customs officials clear the goods into the Indian market. Customs will then give a Clearance Certificate as a proof of confirmation that all checks are clear, and that such goods are allowed for distribution or sale.

This is the time when all your products can be shipped to your warehouse or any other business location. This is important so as to ensure that you have complied with all the regulations and all fees have been paid before shipment.

Why Follow the 4 Simple Steps for Customs Clearance?

As such, India’s customs clearing process ensures that all imported goods adhere to Indian laws, taxes, and regulations. By following these four phases, you significantly reduce the risk of facing a hold-up or potential fines and seizures. Proper preparation, correct documentation, and timely payment are what ease the clearance process.

If you are unfamiliar with the procedure for clearing customs or need assistance, hire professionals such as Air Import Custom Clearing Agents in India. Companies like Falcon Freight offer all logistics services with a customs clearance solution tailored for your needs. With their knowledge and expertise, they will guide you on how to navigate the complex issues of Indian customs and ensure the timely delivery of goods to their destinations. Import Clearance of Food Products in India and others; visit their official website.

It helps to save time, minimize the risk of mistakes, and focus on growing your business with a trusted partner.

For more details or to get professional help with your importing and exporting needs, log onto Falcon Freight. They will make your customs clearance process easy and ensure that your goods are in good hands at all times.