Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
18 views2 pages

Ffoc

The customs clearance process involves several key stages, starting with document preparation, including essential documents like the commercial invoice and packing list. After filing the customs declaration, customs authorities assess duties and may conduct risk assessments, leading to goods release once all requirements are met. Finally, importers must arrange transportation and maintain customs documentation for potential audits.

Uploaded by

bablu889292
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
18 views2 pages

Ffoc

The customs clearance process involves several key stages, starting with document preparation, including essential documents like the commercial invoice and packing list. After filing the customs declaration, customs authorities assess duties and may conduct risk assessments, leading to goods release once all requirements are met. Finally, importers must arrange transportation and maintain customs documentation for potential audits.

Uploaded by

bablu889292
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Sure!

Here's a more detailed expansion of each stage of customs clearance, along with a
few additional steps and considerations that importers commonly deal with.

1. Document Preparation (Pre-arrival stage)


This step is critical because errors can delay clearance. Common documents include:

●​ Commercial Invoice: Price, product description, seller/buyer details


●​ Packing List: Weight, dimensions, packaging details
●​ Bill of Lading / Airway Bill: Issued by the shipping line/airline; acts as proof of
shipment
●​ Import License: Needed for controlled/restricted goods
●​ Insurance Certificate: Proof of marine or cargo insurance
●​ Certificate of Origin: For claiming preferential duty under trade agreements (like
ASEAN-India FTA)

2. Filing the Customs Declaration (Bill of Entry)


The importer or customs broker files a Bill of Entry (BoE) in the customs portal.

●​ It can be filed before the arrival of goods (advance filing).


●​ Data entered includes:
○​ HS Code
○​ Country of origin
○​ Value of goods (FOB/CIF)
○​ Port of shipment and discharge
○​ Details of duties payable

Once filed, the customs system assigns a risk category for assessment (Green, Yellow,
Red channel).

3. Duty Assessment & Payment


Customs authorities verify:

●​ Correct classification under the Harmonized System (HS Code)


●​ Accurate valuation (to avoid under-invoicing)
●​ Applicable duties:
○​ Basic Customs Duty (BCD)
○​ Integrated GST (IGST)
○​ Social Welfare Surcharge
○​ Anti-dumping duty (if applicable)

The importer pays the duties through an online portal (e.g., ICEGATE in India).

4. Risk Assessment & Examination (If Applicable


Based on risk level:

●​ Green Channel – Automatic clearance without examination


●​ Yellow Channel – Document verification only
●​ Red Channel – Full physical inspection of goods

Customs officers may check for:

●​ Compliance with import restrictions


●​ Proper labeling (e.g., FSSAI for food products, BIS for electronics)
●​ Samples for lab testing (in case of sensitive goods)

5. Goods Release (Out of Charge)


After successful verification and payment:

●​ Customs gives “Out of Charge” (OOC) status


●​ Importer receives a Release Order
●​ The goods are handed over by the Custodian (port, airport, or CFS/ICD)

6. Delivery and Post-Clearance


●​ Importer arranges for transportation from the port/warehouse to their business
location
●​ Goods are entered into inventory
●​ Importer must maintain all customs documents for several years
●​ Customs may conduct Post-Clearance Audit (PCA) to verify past shipments for any
fraud or duty
●​ E-way bill or equivalent may be required for interstate transport (in countries like
India).
●​ Importers should check import policy conditions (DGFT in India) before placing an
order.
●​ Using a licensed Customs House Agent (CHA) can help navigate this procdure

You might also like