Exports and Imports Procedures and Documentation Hard

BMS@VES EXIM ROLE OF CLEARING AND FORWARDING
AGENTS
ACKNOWLEDGEMENT
We would like to thank Shailashree mam
for giving us an opportunity which gave us more
knowledge about the lengthy and the complicated
procedures of import and export. With the help of
this project we could understand the role of
clearing and forwarding agents in export and
import procedures.
TABLE OF CONTENTS
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Sr.n Title Pag

o e
no
1) INTRODUCTION. 4
(i) DEFINITION.
2) RESPONSIBILITIES OF 7
CLEARING AND
FORWARDING AGENTS.
(i) THREE FACETS OF
CLEARING AND
FORWARDING AGENTS.
3) ESSENTIAL SERVICES 13
PROVIDED BY C&F AGENTS.
(i) OPTIONAL SERVICES
PROVIDED BY C&F AGENTS.
4) ROLE OF C&F IN EXPORT & 17
IMPORT PROCEDURE.
(i) EXPORT PROCEDURE.
(ii) IMPORT PROCEDURE.
5) MODE OF PAYMENT. 25
6) DOCUMENTATION. 26
(i) PERFORMA INVOICE.
(ii) PACKING LIST.
(iii) BILL OF LADING.
(iv) CERTIFICATE OF ORIGIN.
(v) SHIPPING BILL.
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INTRODUCTION
Before the clearing and forwarding agents

came into the picture the export-import rules
and procedures were very complex, time-
consuming in short difficult to understand so
as to make it easy the commission rate of
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customs have issued clearing and forwarding

license to the people who have proved
themselves convergent with customs rules
and regulations. The clearing and forwarding
agents are also known by different names
such as custom house agent or freight
forwarders or shipping agents.
The clearing & forwarding agents are the
Companies, which have been authorised and
issued License by Customs and Airport
authority of India to get the goods inspected
at the customs warehouse.
Where entry of common man or even the
exporter is prohibited (exporter can always
go to get his goods inspected, but cannot
communicate directly with a custom
inspector)
These shipping and clearing agents only

prepare the export documents for the client’s
shipments.
As this area is highly sensitive in nature,
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due to all the stuff meant for export is

stocked here and because of risk of goods
being stolen, only authorised people like
employees of these licensed agencies are
allowed to interact with custom officials to
get the goods inspected, after which they
handover the goods to air/shipping lines for
them to airlift the cargo and send it to its
destination.
(i) DEFINITION
Clearing and forwarding agents are
authorised by the Government of India to not
only help the importers and the exporters but
also to bring it to the notice of the custom
officials any irregularities in the customs
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rules and regulations optated by the

customs, importer and exporter. The clearing
agent should be converse with customs act
rules and regulations.
RESPONSIBILITIES OF
CLEARING AND
FORWARDING AGENTS
(i) Furnish, whenever required by the

Licensing Authority, an authorization
from each of the firms or persons by
whom he is employed to act as their
Customs Agent;
(ii) Not represent a client before an
Officer of Customs in any matter
which the licensee dealt as an officer
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or employee of the Department or of

the facts of which he gained
knowledge while in Government
service;
(iii) Not appear, plead or act in any

proceedings under Sections 179, 193,
194 or 196 of the Customs Act’1969,
for and on behalf of any person other
than the person for whom he acted
as licensee in relation to matters out
of which the proceedings have
arisen;
(iv) Where he knows that a client has not
complied with the law or has made
any error in or omission from any
documents which the law requires
such client to execute, advise his
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client promptly of the fact of such

non-compliance, error or omission
and immediately bring the matter to
the notice of the appropriate officer
of Customs in writing.
(v) exercise due diligence to ascertain

the correctness of any information
which he imparts to a client with
reference to any Customs business;
(vi) Not withhold information relating to
any Customs business from a client
who is entitled to such information;
(vii) promptly pay over to Government
when due, all sums received for
payment of any duty, tax or other
debt or obligation owing to the
Government and promptly account to
his clients any money received for
them from Government, or received
from them in excess of
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Governmental, or the other charges

properly payable in respect of the
clients Customs business;
(viii) not attempt to influence the conduct
of any officer of Customs in any
matter pending before the Custom
House, Station, Port or Airport by the
use of threat, false accusation,
duress or the offer of any special
inducement or promise of advantage,
or of any gift or favor or other thing
of value;
(ix) not procure or attempt to procure,
directly or indirectly, information
from Customs records or other
Government sources of any kind to
which access is not granted by
proper authority;
(x) not employ in any capacity, with
power of attorney, by delegation of
otherwise, for the promotion of or in
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connection with the work relating the

license :-
i. any person whose application for
license or Customs permit has
been refused; or
ii. any person whose license or
permit has been revoked or
whose conduct as a partner,
manager, director, officer or
servant has been the cause of
the revocation of the license or
permit;
(xi) not lend money to any officer or

employee in the service of the
Custom House or Customs-station or
become surety for the repayment of
money borrowed by any such officer
or employee ; and
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(xii) Intimate to the Licensing Authority

any change of address immediately
after such change is effected.
(i) Three facets of customs

clearance
A customs house agent clears and

forwards the goods arrived at the
following places:-
1. Goods which come by a foreign post.
2. Goods which come through Sea-ports.
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3. Goods which come through Airports
ESSENTIAL SERVICES
PROVIDED BY C&F AGENTS
The following are some of the services
provided by all kinds of C&F agents:
 Providing warehousing facility to the

exporters for warehousing the goods
before their transportation to the
docks/port.
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 Transportation of goods to the docks

and arrangements of warehousing at
the port.
 Arrangement of containers required

for shipment of the goods.
 Booking of shipping space or air

freighting.
 Advising the exporter as regards the
relative cost of sending the goods by
different airlines/shipping lines as
well as selection of the route of the
flight/ sea route.
 Making arrangements for shipment
of goods to be on board the
ship/plane.
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 Arranging for marine/cargo insurance

of the shipment.
 Preparation and processing of

shipping documents required for
custom clearance.
 Arranging for various

endorsements/issue of certificates
from various agencies.
 Providing assistance in the packing

of the shipment.
 Making arrangements for local

transportation of goods to the
port/docks.
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 Forwarding the documents to the

exporter for their negotiation with
the bank.
(i) OPTIONAL SERVICES

PROVIDED BY THE C&F
AGENTS:-
The following services are provided by
the leading c&f agents at the specific
request of the exporter:
1. Providing warehousing facilities
abroad at least in some of the major
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international markets in case the

importer refuses to take the delivery of
the goods for any reason.
2. Providing assistance to bring the
goods back to India if the situation so
demands.
3. Providing assistance to locate the
goods in case of shipment is misplaced
or the cargo is stranded at some port.
4. Making arrangements for assessment
of damage to the goods to title claim
with the insurance company.
Role of C&F in Import &
Export procedure
For smooth and timely shipment of cargo,

the exporter should appoint a suitable
Clearing and Forwarding Agent.
Nevertheless, he should prepare the shipping
documents himself as there are many
intricacies and technicalities which he alone
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would know properly. He should not depend

too much on the Clearing and Forwarding
Agent, who should be entrusted with getting
the documents processed and shipment only.
The different stages involved in the
shipment of goods are as follows:
Customs verification of Shipping Bills.
Carting and Receipt of Cargo of/in transit
Sheds.
Cargo examination at Docks.
Loading of Cargo.
Issue of Mate Receipt.
The procedure adopted at different ports

relating to different stages is different. Since
all these formalities are, by and large, to be
completed by the Clearing and Forwarding
Agents.
(i) Export procedure:-
Documents required:-
 Detail description of goods to be
exported.
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 Destination address with contact details.
 Invoices that would be raised on

consignee.
The goods that are to be exported would be

factory stuffed or stuffed at the port of
loading. In case the goods are factory
stuffed the exporter needs to make sure that
the container is stuffed in the presence of the
regional customs/excise officials and the
same is sealed by the concerned officer and
the same should be certified by him.
The customs house agent needs to keep the

shipping bill ready with all the particulars viz.
 Exporter name and address with contact

details (consigner), destination name and
address with contact details (consignee),
number of packages, its weight, details like
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freight paid mentioned in it, the name of

the vessel/flight
 The goods are taken in the port area for

either stuffing it into the container or
directly to the vessel/flight. This procedure
is known as carting of cargo.
 The customs officials will examine the

goods that have to be stuffed in the
container at the port. In case of factory
stuffed containers the custom official will
only verify marks and number of the
containers the custom official will only
verify marks and the number of the
container and seal number as shown by the
customs/excise officials remarked at the
factory stuffing.
 The goods will be loaded into the
designated vessel and only then the
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shipping company will issue bill of lading

showing the container is laden on board.
The bill of lading will have columns showing
the exporter’s name and address, name
and address of the person to whom the
container is consigned to, exporting
carrier’s name, post of loading will also the
number of packages, weight and volume of
the consignment.
 Bill of lading is very important document

for consigned partly as he will be able to
clear these goods only on surrender of Bill
of Lading issued by the port of loading.
Documents enclosed
♦ Copy of shipping bill.
♦ Copy of bill of lading.
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(ii) Import Procedure:-
The custom clearing and forwarding agents

once appointed by the consignee need to
have the following documents:
 Bill of Lading.
 Invoices.
 Packaging list.
 Certificate of Origin.
 Quarantine Certificate.
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 Letter of authority from the Importer.
 Importers IC code no. certificate.
On receipt of the above said documents

the custom house agent need to submit
duly filled Bill of Entry to the customs.
The Bill of Entry will be in quadruplicate

original copy for the customs, duplicate
being the importers copy, triplicate being
the exchange control and the fourth copy
to the port Authority.
 The cargo would be either first check or

second check. In first check, the cargo is
first checked by customs officials and duty.
In second check, the duty is first paid on
the strength of consigner’s declaration and
customs official would examine the cargo
after the duty is paid.
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 The custom house agent should make sure

that all sums received for payment of any
duty, taxes or other obligation owing to the
government is promptly paid on receipt of
the same from the client.
Documents enclosed:
♦ Copy of Bill of Lading.
♦ Packing List.
♦ Invoices.
♦ Certificate of Origin.
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MODE OF PAYMENT:-
The c&f agent offers various services to its

clients. While planning for distribution
logistics, the exporter should in the first
instance, appoint C&F agents to provide him
the required services. There are no
standardized rates of charges taken by these
agents. The exporter should negotiate with
these agents the amount of fees payable to
them in relation to the desired services or
even could pay him on commission basis.
DOCUMENTATION
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Documents are classified as commercial

documents and regulatory documents:
(a) Commercial Documents: Commercial

documents are required for effecting physical
transfer of goods and their title from the
exporter to the importer and the realization
of export sale proceeds. Out of the sixteen
commercial documents in the export
documentation frame work as many as
fourteen have been standardized and aligned
to one another. These are Performa Invoice,
Commercial Invoice, Packing List, Shipping
instructions, intimation for inspection,
certificate of inspection of quality control,
insurance declaration, certificate of
insurance, Mate’s Receipt, and Bill of Lading
or combined transport document, application
for certificate origin, certificate of origin,
shipment advice and letter to the bank for
collection or negotiation of documents.
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(b) Regulatory Documents: Regulatory

pre-shipment export documents are
prescribed by the different government
departments and bodies in order to comply
with various rules and regulations under the
relevant laws governing export trade such as
export inspection, foreign exchange
regulation, export trade control, customs etc.
Out of nine regulatory documents four have
been standardized and aligned. These are
shipping bill or bill of export, exchange
control declaration, export application dock
challans or port trust copy of shipping bill and
receipt for payment of port charges.
FOLLOWING ARE THE
DOCUMENTS ATTACHED WITH
THEIR EXPLANATIONS.
(i)Proforma Invoice
The starting point of the export contract is
in the form of offer made by the exporter to
the foreign customer. The offer made by the
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exporter is in the form of Proforma invoice. It

is a quotation given as a reply to an enquiry.
It normally forms the basis of all trade
transactions.
Contents of Proforma invoice
 Name and address of the

exporter.
 Name and address of the
importer.
 Mode of transportation, such
as sea or air or multimodal transport.
 Name of the port of loading.
 Name of the port of discharge and final
destination.
 Provisional invoice number
and date.
 Exporter’s reference
number.
 Buyer’s reference number
and date.
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 Name of the country of

origin of goods.
 Name of the country of final
destination.
 Marks and container
number.
 Number and packing
description.
 Description of goods giving details of
quantity, rate and total amount in terms
of internationally accepted price
quotation.
 Signature of the exporter
with date.
(ii) PACKING LIST
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The exporter prepares the packing list to

facilitate the buyer to check the shipment. It
contains the detailed description of the goods
packed in each case, their gross and net
weight, etc. The difference between a
packing note and a packing list is that the
packing note contains the particulars of the
contents of an individual pack, while the
packing list is a consolidated statement of
the contents of a number of cases or packs.
(iii) BILL OF LADING

Bill of lading is a document issued by the
shipping company or its agent acknowledging
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the receipt of goods on board the vessel, and

undertaking to deliver the goods in the like
order and condition as received, to the
consignee or his order, provided the freight
and other charges as specified in the bill
have been duly paid. It is also the document
of title to the goods and as such, is freely
transferable by endorsement and delivery.
A bill of lading serves three main purposes:-

(a) As a document of title to the goods;
(b) As a receipt from the shipping company;
(c) As a contract for the transportation of
goods.
CONTENTS OF BILL OF LADING
Name and logo of the shipping line.

Name and address of the shipper.
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Name and the number of the vessel.

Name of the port of loading.
 Name of the port of discharge and place of
delivery.
Marks and container number.
Packing and container description.
Total number of containers and packages.
Description of goods in terms of quantity.
Container status and seal number.
Gross weight in kilogram and volume in
terms of cubic meters.
Amount of freight paid or payable.
Shipping bill number and date.
Signature and initials of the Chief Officer.
(iv) CERTIFICATE OF ORIGIN
The importers in several countries require

a certificate of origin without which clearance
to import is refused. The certificate of origin
states that the goods exported are originally
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manufactured in the country whose name is

mentioned in the certificate. Certificate of
origin is required when:-
(1) The goods produced in a particular

country are subject to preferential tariff
rates in the foreign market at the time
of importation.
(2) The goods produced in a particular

country are banned for import in the
foreign market.
CONTENTS OF CERTIFICATE OF ORIGIN
Name and logo of chamber of commerce.

Name and address of the exporter.
Name and address of the consignee.
Name and number of the Vessel of Flight.
Name of the port of loading.
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Name of the port of discharge and place

of delivery.
Marks and container number.
Packing and container description.
Total number of containers and
packages.
Description of goods in terms of quantity.
Signature and initials of the concerned
officer of the issuing authority.
Seal of the issuing authority.
(v) SHIPPING BILL

Shipping bill is the main customs
document, required by the customs
authorities for granting permission for the
shipment of goods. The cargo is moved
inside the dock area only after the shipping
bill is duly stamped, that is certified by the
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customs. Shipping bill is normally prepared

in five copies:
(a) Customs copy.
(b) Drawback copy.
(c) Export promotion copy.
(d) Port trust copy.
(e) Exporters copy.
CONTENTS OF SHIPPING BILL
 Name and address of the exporter.

Name and address of the importer.
Name of the vessel, master of agents and
flag.
Name of the port at which goods are to be
discharged.
Country of final destination.
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Details about packages, description of

goods, marks and numbers, quantity and
details of each case.
F O B price and real value of goods as
define in the Sea Customs Act.
Whether Indian or Foreign Merchandise to
be re-exported.
Total number of packages with total weight
and value.
(vi) BILL OF ENTRY
Bill of entry is a document, prepared by

the importer or his clearing agent in
prescribed form under bill of entry
regulations, 1971, on the strength of which
clearance of imported goods can be made.
Bill of entry is a document, which states
that the goods of the stated values and
description in the specified quantity have
entered into the country from abroad. The
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bill of entry is drawn triplicate. The customs

authorities may ask the importer to supply
other documents like invoice, broker’s
notes and insurance policy, etc in order to
verify the correctness of the information
supplied in the bill of entry form.
The bill of entry goods are classified into

three categories:
1)Free Goods.
2)Goods for Home Consumption.
3)Bonded Goods.
The importer has to fill up a separate bill of
entry form for different classes of goods. In
India, separate forms are not used but all
entries are made in one form
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CONTENTS OF BILL OF ENTRY
Name and address of the Importer.

Name and address of the Exporter.
Import license number of the importer.
Name of the port/dock where goods are to
be cleared.
Description of goods.
Value of goods.
Rate and amount of import duty payable.
Other relevant documents.
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BIBLIOGRAPHY
Primary Data:
(1) Mr.Gajendra Shetty.
- Clearing and Forwarding Agent.
- Owner of Akanksha Shipping.
Secondary Data:
(1) www.google.com
(2) Export Management
- D C Kapoor
(3) Export Management
- Khurana
(4) Export Import Procedures and
Documentation
- Jain Acharya
- 38 -

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BMS@VES EXIM ROLE OF CLEARING AND FORWARDING

Sr.n Title Pag

Before the clearing and forwarding agents

customs have issued clearing and forwarding

These shipping and clearing agents only

As this area is highly sensitive in nature,

due to all the stuff meant for export is

rules and regulations optated by the

(i) Furnish, whenever required by the

or employee of the Department or of

(iii) Not appear, plead or act in any

client promptly of the fact of such

(v) exercise due diligence to ascertain

Governmental, or the other charges

connection with the work relating the

(xi) not lend money to any officer or

(xii) Intimate to the Licensing Authority

(i) Three facets of customs

A customs house agent clears and

1. Goods which come by a foreign post.

2. Goods which come through Sea-ports.

3. Goods which come through Airports

 Providing warehousing facility to the

 Transportation of goods to the docks

 Arrangement of containers required

 Booking of shipping space or air

 Arranging for marine/cargo insurance

 Preparation and processing of

 Arranging for various

 Providing assistance in the packing

 Making arrangements for local

 Forwarding the documents to the

(i) OPTIONAL SERVICES

international markets in case the

For smooth and timely shipment of cargo,

would know properly. He should not depend

The procedure adopted at different ports

(i) Export procedure:-

 Destination address with contact details.

 Invoices that would be raised on

The goods that are to be exported would be

The customs house agent needs to keep the

 Exporter name and address with contact

freight paid mentioned in it, the name of

 The goods are taken in the port area for

 The customs officials will examine the

shipping company will issue bill of lading

 Bill of lading is very important document

♦ Copy of shipping bill.

♦ Copy of bill of lading.

(ii) Import Procedure:-

The custom clearing and forwarding agents

 Letter of authority from the Importer.

 Importers IC code no. certificate.

On receipt of the above said documents

The Bill of Entry will be in quadruplicate

 The cargo would be either first check or

 The custom house agent should make sure

♦ Copy of Bill of Lading.

The c&f agent offers various services to its

Documents are classified as commercial

(a) Commercial Documents: Commercial

(b) Regulatory Documents: Regulatory