Ocean Shipping is an elaborate procedure with each step having its own significance in the entire journey of the cargo from Shipper to Consignee. One of the most important steps in the process of Shipping is Custom formalities for allowing cargo to cross borders as customs is the custodian of the cargo in ports prior to approval for release to leave or enter a particular origin or destination Customs typically gives the documented customs clearance (‘Let Export” or “Import Out of Charge”) to the shipper/his agent after ensuring fulfillment of all the Import/Export laws of the respective country of origin or destination.
Customs clearance work involves preparation and submission of documentation required to facilitate export/imports from and into the country, wherein during the process assessment, payment of duty, customs examination and taking delivery of cargo or Examination, verifying documents and providing Let Export is the major part of the custom process. Mainly Customs Clearing Agents/Brokers help Shippers/Importers and represent them at the ports if required by the latter.
The process of Import and Export require certain standardized documentation including Purchase order from Buyer, Sales Invoice, Packing List, Shipping bill, Bill of Lading or air waybill, 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.
Every port in every country around the world puts all incoming and outgoing cargo through a customs clearance process. What’s more, the rules, regulations, and laws vary from country to country, sometimes even from port to port within a country, making someone who specializes in customs clearance very important to a shipper exporting and importing goods. These specialists are called customs Agents/Brokers (In India – Custom House Agent -CHA) and the work they do is called customs clearance/brokerage.
Import Clearance Process:
* Filing of BOE can be done in advance up to 30 days prior to arrival.
Export Clearance Process:
Ensure for zero error in documentation especially in Invoice and waybill/BL.
Any delay in clearance due to document error could lead to hefty demurrage charges levied by port making the cost of import very high.
Ensure all applicable Licenses or permission are in place before import/export.
The process of customs clearance is one of the most important steps in the entire trade industry as it grants the final legal permissions in a documented form for the incoming and outgoing cargo. No cargo can ever legally leave or enter a country’s port without the clearance of the custom’s authority