What is Custom Clearance?

What is Custom Clearance?

This is one of the important and basic articles in export and import trade

Some important points to remember

1) The act of passing goods through customs so that they can enter or leave the country.

2) A document given by customs to a shipper to show that customs duty has been paid and the goods can be shipped .

Customs clearance work involves –

Ø Preparation and submission of documentations required to facilitate export or imports into the country.

Ø  Representing client during customs examination, assessment, payment of duty and co taking delivery of cargo from customs after clearance along with documents.

Some of the documents involved in customs clearance are :-

1.    Exports Documentation:

·       Purchase order from Buyer

·       Sales Invoice

·        Packing List

·        Shipping bill

·        Bill of Lading or air way bill

·        Certificate of Origin and any other specific documentation as specified by the buyer, or as required by financial institutions or LC terms or as per importing country regulations.

(Refer my next blog for detail understanding of each export document)

2.    Imports Documentation

·       Purchase Order from Buyer

·       Sales Invoice of supplier

·        Bill of Entry

·       Bill of Lading or Air way bill

·        Packing List

·       Import License

·       Insurance certificate

·       Technical write up, literature etc.( if any)

·       Test report (if any)

·        Certificate of Origin, and any other specific documentation required by the buyer, or financial institution or the importing country regulation.

(Refer next blog for detail understanding of each import document)