Customs Clearance for Imported Goods

Customs Clearance for Imported Goods

Under the Ministry of Finance (Department of Revenue), there are two independent Boards of Revenue:

(a) Central Board of Direct Taxes (for income Tax, Wealth Tax etc.)

(b) Central Board of Excise and Customs.

The Customs administration vests with the Central Board for Excise and Customs, which shapes the policy and decides the customs formalities in the country, in terms of the provisions of the Customs Act 1962.

All goods imported in India have to pass through the customs clearance after they cross the Indian border. The goods so imported are examined, appraised, assessed, evaluated and then allowed to be taken out of customs charge for use by the importer.

The procedure for Customs clearance in general for goods imported in India is as follows:

(a) Import Manifest: As per the section 30 of the Customs Act, 1962, the persons in charge of a conveyance carrying imported goods should hand over, within 24 hours of the arrival of the conveyance, an import manifest to the customs. The import manifest is a complete list of all items the conveyance carries on board, including those to be transshipped and those to be carried to the subsequent ports of call.

(b) Entry in the Import Department of Customs House: On receipt of information regarding the arrival of the goods, the importers or their agents information to make an entry by filing a Bill of Entry, in a prescribed form in the Imports Department of Customs House. The date of presentation of Bill of Entry is an important date as the rate of duty applicable to the imported goods will be the rate, which is in force on the date of presentation.

(c) Presentation of Bill of Entry for Appraisal: After the Bill of Entry is noted in the import department, the same should be presented to the Appraising Counters along with the following necessary documents:

Import licence, if necessary.

Exporter's Invoice.

A copy of Letter of Credit

Original Bill of Lading and its non-negotiable copy.

Two copies of Packing List.

Weight specifications.

Manufacturer's test certificate

Certificate of Origin.

Delivery order issued by the Shipping company or its agent.

Freight and insurance amount certificate if the import is on FOB terms

A declaration from importer that he has not paid any commission to agents in India.

Customs declaration

Catalogue/drawing, etc for machinery imported.

In addition to the above, the following documents are also required to be submitted wherever necessary:

If spare parts are imported — exporters invoice showing unit price and extended total of each item;

if second hand machinery is imported — Chartered Engineer' If s Certificate;

If steel is imported — Manufacturer's Analysis Certificate;

If chemicals and allied products are imported - Literature showing chemical consumption;

If certificate. items are imported — Textile Commissioner's endorsement or certificate.

If the above documents furnished b the importer are found to be adequate for acceptance of the declared value and determination of classification and acceptance of ITC Licence, the Bill of Entry is completed by the Appraiser. it is then countersigned by the Assistant Collector and sent to the Licence Section with an order to the Dock Staff for examination of goods before clearance.

(d) Clearance of Goods: After payment of duty (the original copy of Bill of Entry is retained in the Customs House) the importer should obtain the duplicate copy of Bill of Entry on which order for examination of the goods is given by Customs and get the goods examined. If the description of goods is found to be correct, on the basis of declared and accepted particulars, clearance of goods is allowed by the appraiser.

(e) Warehousing the Goods: The imported goods can be warehoused at the port of shipment without the payment of duty by presenting a "Bill of Entry for Warehousing" to the Bonds Department along with a bond for twice the amount of duty payable. Initially the facility is granted for 3 months, which may be extended upto a period one year. The warehoused goods can be cleared in one or more instalments. For clearance of goods from the warehouse, the importer is required to present what is known as 'Ex-bond Bill of Entry'.

(d) Import Follow-up: Once an importer is allowed to remit foreign exchange out of the country he has an obligation to import the permitted goods of equivalent value in the country. If no goods or goods for lesser values are imported, it would lead to leakage of foreign exchange.


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vicky: hi i am going to import pp non woven bags from india . i got the CFR price and i want to know what is the custom dutyor other taxes on pp non woven bags

kamal bakshi: dear sir/madame we are an import export firm and would like your advise on a lot of subjects please i will send you the requirment thanking you kamal bakshi you name it we got it

selvaa: I want to IMPORT .177 air gun pellets for SPORTS PURPOSE from GERMANY MANUFACTURER. Please suggest me the process.

Kiran Maharjan: sir why my package GE6106700NP is on hold after i had already paid customs clearance in india and again central board of insurance is asking to pay delay n clearance fee why sir. looking forward for ur reply thankyou

parthasarathi: I am from CHILAKALURIPET - GUNTUR DIST ANDHRA PRADESH . my consignment is On Hold Indira Gandhi International Airport we want clearing in my article . This is my article information 1. booking point -Douala International Airport, Cameroon 2. DELIVERY POINT - CHILAKALURIPET - 522616.GUNTUR-DIST . 3. STATUS -On Hold - Indira Gandhi International Airport -03-11-2020 15 :36: 23 4. holding deportment information details of the shipment

vasif: Am presently working in an IT company at Calicut, Sir I would like to know what are the document required for customs clearance in order to receive the package from Chennai port. we have imported a machine from China, and have weighed about 115 kg. So kindly help me to generate all legal documents related to it. Expecting a quick response from you.

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