Smooth Sailing Through Customs: GSI's Commitment

Customs clearance is the process of preparing and submitting necessary documentation to facilitate the export or import of goods into a country. This ensures that all applicable duties, taxes, and regulations are met before goods can be released from customs control.

“For import, key documents include:

Bill of Entry

Airway Bill or Bill of Lading

Import License

Letter of Credit or Purchase Order

Import Export Code (IEC)

Other necessary licenses and certificates

For export, essential documents include:

Customs Declaration

Commercial Invoice

IEC Certificate

Inspection Certificate

Packing List”

Customs duty in India is calculated based on the value of goods, which includes the cost, insurance, and freight (CIF). The applicable duty rates are determined by the Harmonized System (HS) code assigned to the products.

HS codes are internationally standardized codes used to classify products. They are crucial as they determine the duty rates, regulatory requirements, and admissibility of the goods. Misclassification can lead to penalties and delays.

An Import General Manifest (IGM) is a document filed by the shipping company detailing all the goods being imported on a particular vessel. It must be submitted electronically and includes comprehensive information about the cargo​

A Bill of Entry is a legal document filed by importers or customs brokers on behalf of importers in the Indian Customs Electronic Data Interchange System (ICEDIS). It contains details about the imported goods and the duties and taxes applicable to them. Approval of the Bill of Entry signifies the payment of applicable duties and taxes​

Many businesses choose to use customs clearance agents to avoid errors and ensure a smooth process. These agents are experienced in navigating complex customs regulations and can expedite the clearance process.

“Common errors include:

Incomplete or inaccurate documentation.

Incorrect HS code classification.

Misstatement of goods’ value or country of origin.

Failure to comply with import regulations and product-specific requirements.”

Filing customs documentation before the arrival of goods can expedite the clearance process. Pre-arrival processing allows for potential issues to be addressed early, ensuring that goods can be released promptly upon arrival.

Customs officials may physically inspect the cargo to verify that the contents match the declared information and to check for compliance with regulatory standards. If discrepancies are found, the goods may be detained, and penalties could be imposed.

“Non-compliance can result in several outcomes, including:

Detention of goods.

Fines and penalties.

Delay in the release of the shipment.

Possible confiscation of goods in severe cases.”

The duration can vary but generally, customs clearance in India can be completed within 24 to 48 hours, provided all documentation is in order and there are no compliance issues. Delays can occur due to inspections, missing documentation, or non-compliance.

Under Indian customs regulations, dangerous goods are substances that pose risks to health, safety, property, or the environment. They are classified into nine classes, including explosives, flammable liquids, toxic substances, and corrosives, based on the International Maritime Dangerous Goods (IMDG) Code and International Air Transport Association (IATA) regulations. Customs regulations must be followed according to the HS code and similar procedures as for other goods. However, the customs clearing agent must be DGR-certified to ensure proper transport arrangements for these goods until their final destination.

“Key documents include:

Bill of Entry: Declaration form.

Safety Data Sheet (SDS): Detailed information on the properties of the dangerous goods.

Dangerous Goods Declaration (DGD): Certification of the shipment’s compliance.

Import License: As required by DGFT.

Certificate of Origin: Specifying the country of origin.

Packing List and Commercial Invoice: Detailed cargo information.

Transport Document: Bill of Lading/Airway Bill.

Approval from the Ministry of Environment, Forest, and Climate Change: For certain hazardous materials.”

The customs duty is calculated based on the classification under the Harmonized System (HS) codes, which consider the type and nature of the dangerous goods. The valuation is typically based on the cost, insurance, and freight (CIF) value of the goods.

“Perishable goods are items that have a limited shelf life and can deteriorate rapidly if not stored or transported under specific conditions. This includes fresh fruits, vegetables, meat, seafood, dairy products, and flowers.”

“Key documents include:

Bill of Entry: Declaration form.

Phytosanitary Certificate: For plant products.

Health Certificate: For animal products.

Import Permit: From relevant authorities like FSSAI.

Certificate of Origin: Specifying the country of origin.

Packing List and Commercial Invoice: Detailed cargo information.

Cold Chain Compliance Documentation: Evidence of temperature control during transit.”

Perishable goods must be packaged to maintain their quality and prevent spoilage. This includes using insulated containers, refrigeration units, and proper ventilation. Packaging must also comply with international standards and labeling requirements, indicating the nature of the goods and storage instructions.