Introduction: custom clearance procedure

Custom clearance procedure works include development and document submission that is expected to help export strategy or imports into the country, portraying the customer while customs assessment, evaluation, payment of duty, and taking delivery of cargo from customs after clearance with documents. The documents required for customs clearance are:

The documents included in customs clearance are :

Exports Documentation custom clearance 

  • Buy order from Buyer
  • Sales Invoice
  • Packing List
  • Shipping bill
  • Bill of Lading or air waybill
  • Certificate of Origin
  • Some other special documentation as characterized by the purchaser, or as needed by financial institutions or LC terms or according to importing country laws

Any other special documentation as defined by the buyer, or as needed by financial institutions or LC terms or as per importing country laws.

Imports Documentation

  • Purchase Order from Buyer,
  • Sales Invoice of the supplier
  • Bill of Entry
  • Bill of Lading or Airwaybill
  • Packing List
  • Certificate of Origin
  • Any other particular documentation needed by the purchaser, or financial institution or the importing country law.

It has been vital for the commuters, investors, and various other business officials to experience customs clearance procedures while importing or exporting goods from one country to another. This procedure has specific customs to follow that are obligatory. The importer or exporter is required to submit legitimate documents to clear the custom clearance process without fail. In this article, there are given some significant steps useful, in clearing customs clearance procedures in India. Find about Import-export code of India.

Custom clearance procedure

Bill of Entry

This is the initial move towards custom clearance methodology. The customs official will allocate to check the administrative work of the desired shipment. The customs clearance process officer is going to file bills in 4 copies, for example, original and the duplicate one for the customs, the third duplicate for the importer, and the fourth duplicate is for the bank to make settlements. The bills will be computerized.


The primary functions of the assessing officer for custom clearance process are given below

  • To determine the duty liability
  • Taking due note of any exemptions or advantages that have been asserted under export promotion schemes
  • To check if there is any restriction in the wholesome procedure
  • Proper classification of the goods exported or imported
  • Note of the invoice and other declarations submitted at the time of bill of entry
  • Undertake note on consecutive values and other detail on valuation available with the custom houses

EDI Assessment 

The assessment officer by taking into consideration all the parameters cautiously process the cargo statement manually. In the EDI framework, all the calculations are done via a computer. Furthermore, the system likewise gives adequate data for calculation of Duty. The assessment official may raise a query for explanation and this can be handled under the service center.

  • Post evaluation, the assessed bill of entry is printed in the service center. In EDI, the documents are mostly analyzed at the time of assessment of the goods itself. After that, the final bill of entry is printed.
  • In the EDI system, sometimes, a provision system appraisal is accessible. The system itself calculates the duty that is needed to be paid by the importer. There is no involvement of an assessment officer.
  • A facility of telephone inquiry is also possible in some of the Customs clearance procedure stations. This can discover the status of documents that have been filed through the EDI systems. Queries raised can be easily printed through fax.

Read on: Import Export Code Exemptions in India

Modification to the bill of entry

After the required documents are collected, the customs officer checks if any changes are required. This can be done after the permission taken from the Deputy/ Assistant Commissioner.

Green Channel Facility

Few importers and exporters are given the Green Channel Facility. This confirms that there is no need for routine assessment procedures for the checking of cargo. Rather with Green Channel Facility, the declaration in the declaration form will be made at the point of the bill of entry. There will be a normal process instead of any physical assessment of the cargos.

Payment of the Duty 

It is crucial for importers and exporters to pay the duty through TR-6 challans. Different customs houses have several bank branches, which are exclusively for depositing the payment of duty. One must ensure to check the name of the Bank properly before depositing the duty.

Prior Entry for Shipping Bill

In case an importer wants to fill up the bill of entry before the arrival of the goods, it can be done easily. The bill of entry will be valid if the goods have arrived 30 days prior to the actual date of submission of the shipping bill.

Specialised Bonds

Under specialized schemes like DEEC and EOU, import of goods requires to implement strong bonds with the customs clearance process authorities. By failing this, the importer will have to pay the duty that has been remarked on those cargos. The amount of bond will be equivalent to the amount of duty that has been livable on the imported goods. One must ensure to exhibit the bank guarantee alongside the bond. The bank guarantee amount is based upon the prestigious status of the importer.

Bill of entry for warehousing

There is a separate form of a bill of entry for customs clearance procedure of goods for warehousing. This bill’s evaluation is done just like the normal bill of entry thereafter, the duty payable is taken into consideration.

Delivery of Goods

Delivery of goods can be done easily once the whole procedure of the bill of entry is done legitimately. After the confirmation of customs clearances to the port officials, the importer can take the delivery of his goods. In the state of cargo stored in a warehouse, the importer is required to show a different bill of entry called the ex-bond bill of entry to clear the entire or a portion of the warehoused cargo.

How much time is taken for Goods to Clear Customs?

The customs clearance of a shipment can take 20 minutes to several days basing upon certain conditions. Once your Customs Broker has made your entry for customs and sends the data, it usually takes 20-30 minutes. After the entry has been received, it is up to the administrator to evaluate the entry, allow or reject the shipment – This might few minutes to several hours basing upon the amount of Customs staff ready at the port of crossing. 

Nonetheless, there is also be a possibility that before its release, one’s shipment might be taken for inspection. If one’s shipment is inspected, it will be located in a bonded warehouse and evaluated by Customs officers at their nearest convenience. Usually, Customs officer visits many sites on an entire day and directs their releases in the afternoon. The method might take 12-48 hours or more in case of traffic. Customs releases are also not insured.

The reasons for the rejections of shipment

  • TEMPORARY REJECTION: This happens when the data entered in the entry is different from the shipment’s paperwork. Customs will inform the broker and a switch to the entry will be made.
  • PERMANENT REJECTION: There are several reasons as to why a shipment is rejected entirely.
  • Mis-declaration
  • Under-valuing your goods
  • Not permissible due to health and safety reasons.
  • In this case, one will either have to transfer the goods shipped back to the supplier or have the goods destroyed by the officials at one’s price.

IGST on Imports procedure

The GST Registration is a significant process for customs clearance procedures these days. The customs for import and export have switched due to the introduction and execution of GST in India on 1st July 2017. Under GST, many types of duties and taxes like Basic Customs duty, Education Cess, Anti-dumping duty, Safeguard duty, etc proceeds.


The customs clearance procedure is an essential work that should be done by all the importers and the exporters prior to the exchange process that takes place within the countries. The importer and exporter should ensure, to have all the required documents needed for evaluation during the time of bill of the entry.