How to release imported goods arrived at Destination customs location?

Posted on 10 April 2023 Category : For Beginners

What happens, once import cargo arrived at destination port customs location?

Import cargo at Customs bonded Area

Who regulates import cargo arrived at Customs location? What are the procedures to take out imported goods from customs bonded area, once arrived at destination port? What is the role of custodian of cargo on imported commodities? Can carrier of cargo stop taking delivery of import cargo from a customs location?

I am trying to make you understand about the procedures and formalities at a customs bonded area where imported goods landed.

As I have explained in other posts in this website, Import General Manifest is being filed electronically by carrier. If a consolidator also involved in the said import transaction, the CONSOL IGM is also required to be filed.

On arrival of imported goods at destination port customs area, the cargo is bonded by custodian of cargo with the supervision of customs officials.

When does custodian release cargo to Importer/Consignee?

There are three parties involved mainly in an import consignment arrived at destination port customs location before releasing the said imported goods to consignee.

Who are those three parties involved or reserved right to release import shipment out of custom bonded area?

The three parties involved in reserving the right to release imported goods are Customs Department of importing country, Carrier of cargo who transported goods to customs bonded area from load port at overseas and Custodian of cargo who handles cargo at destination customs location by providing space and infrastructure to handle goods.

01. Customs department.

As you know, the customs department is the government agency who regulates all imports and exports of any country on behalf of the government of such country. Once after arrival of imported goods, the cargo is moved to customs bonded area. Any cargo arrived at customs bonded area can be moved only after obtaining permission from customs authorities.

When does customs department permit consignee to take delivery of imported goods out of customs bonded area?

As you know, any goods imported to a country needs to undergo import customs clearance procedures of the importing country. Once after completion of import customs clearance process, customs department of imported country permits to move imported goods out of customs location subjected to approval of carrier of goods and custodian. In India, once after completing import customs clearance procedures by filing bill of entry, customs authenticate “PASSED OUT OF CUSTOMS” in Bill of entry.

02 Carrier of Goods.

The imported goods are transported from load port to destination by carrier. The carrier can move any imported goods to a customs bonded area only. Here, once after movement of goods by carrier to a customs bonded area, the goods are bonded by custodian of cargo. Now, the cargo can be moved out of customs bonded area with the permission of carrier.

When does the Carrier allow consignee to take imported goods at destination customs location?

As you know, one of the three parties who are authorized to control over the imported goods at a destination customs location is carrier. Normally carrier releases goods only after receiving their dues if any. As you know, different freight and other handling fee terms are in a logistics business. The freight and other charges could be ‘Pre-Paid’, “Collect”. Sometimes, main carrier payment would have paid at load port by consolidator, but ‘collect’ from consignee. Although airfreight ‘PRE PAID’, there could be ‘Delivery Order’ fee by destination carrier’s agent at final destination location.

So, the carrier release import consignment, once after confirming all dues to carrier have been paid. The carrier issues ‘Delivery Order’ to consignee once after such confirmation on all payments due to them.

In short, the carrier could be main carrier and consolidator if involved. If only main carrier involved, the DO of main carrier will do for release of imported goods apart from customs and custodian. However, if consolidator is involved as carrier, the DO from consolidator (s) is also required apart from DO from main carrier.

03. Custodian of Cargo

Custodian of Cargo is the party appointed to handle import and export cargo at customs location.

When does the custodian of cargo release imported goods to consignee?

Once after completion of import customs clearance at port of destination and payment of dues to carrier if any, the custodian releases import cargo to consignee or their order to other party after receiving their dues (custodian’s dues). Normally the custodian dues would be the charges of handling cargo at customs bonded area, warehouse charges, ground rent and other charges specified as per custodian rules and regulations approved by government time to time.

I hope, I have easily explained about the import release of goods after arrival at destination customs location at importing country.

In a nutshell, let me conclude as below:

The imported goods are under the control of mainly three parties; The customs department of importing country, the carrier of goods and the custodian of cargo. The imported goods at customs bonded area at final destination of importing country is released with the permission of all the three parties only. The customs department issues release order after completion of import customs formalities of importing country. (in India, bill of entry release by Indian customs by mentioning “PASSED OUT OF CUSTOM”). The carrier of cargo (if consolidator involved, both carriers) issues “Delivery Order” after obtaining their dues under the said consignment. The custodian of cargo delivers imported goods to consignee or their order to another party after obtaining custodian charges.

The above information is about release of imported goods from a destination customs location.

Have you satisfied with this information about how to release imported cargo from destination customs location? Share below your thoughts:

How to get Export Order?

GST Registration Guidelines

Learn Imports and Exports business free of cost

Find HSN code of your product.

How to export goods from India?

What are the risks and solutions in Export Business?
Service Tax - Click here to read complete notification under Budget 2014
What is Bank post shipment credit to exporters?
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation