The Role of Customs Clearance in

Import Export Process

Reading Time: 5 minutes

Are you aware of the customs clearance involved in international business?

Customs plays a vital role when we are dealing in an import-export business. The

goods have to undergo through a customs clearance for its release. Here we will

discuss the procedures required for the release of the shipment in the Import

Export Process.

As we all know, every country has its laws and these laws are governed by

different authorities in a particular country. The person handling your shipment

documentation and customs documentation must be an experienced one. This is

required for you to be on the safer side.

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What is Customs Clearance?

The role of customs clearance in the Import-Export Process involves the

preparation as well as the submission of import and export documentation. It

helps in the following:

 To represent a company before the customs examination

 Assessing the document

  Payment of duties and releasing the cargo from customs after the
clearance of documentations.

Understanding the Import-Export Process and its customs procedure is

important. Customs involved a set of documentations, both while importing or

exporting of goods. Few of the documents are mentioned here:

For Import Export Process

 A purchase order from the buyer

 Bill of entry

 Assessment

 Signed invoice

 Packing list

 Bill of lading or delivery order/ airway bill

 Importer’s/ CHA’s declaration

 Import license

 Insurance documents

 LC or Letter of Credit or a Bank Draft

 Certificate of origin, etc.

For Exports–
 Registration

 Purchase order from the buyer

 

 Sales invoice

 Processing of shipping bill, both, EDI and Non-EDI

 Export of Goods under Drawback scheme.

 Status of shipping bills

 Customs examination of export cargo, etc.

VIDEO INSERT

Watch exclusive Incoterms video to relate the process of customs

clearance.

 
Apart from the procedure mentioned above for clearance of import and export
goods, others also follow simultaneously.

The Import-Export Process needs a well-defined and the right forwarder, who

can easily handle the release of shipments without any fail. A wrong customs

broker may lead to a delay in the shipment. In such cases, heavy payments are

to be borne you, resulting in hefty penalties.

1. Choosing the right freight forwarder should be the main

aim of any business owner or a company:

This is because, as a wrong freight forwarder with less experience and

knowledge not only makes your company bear the loss, it might also result in

losing the reliability, credibility, and delay in the shipment to the international

customers.
Once the material is delayed, the chances of losing a potential buyer increases,

which no business owner wants, especially when dealing in international

supplies. So, whether you are new in business or not, you should be aware of the

basic Import Export Process well to avoid such issues.

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2. What not to do?

If you want your customs clearance are handled in the right way and smoothly,

here is what not to do.

 Selecting the cheap freight forwarder to save money

 Selecting the freight forwarding company, which is new in the business

Thus, the people mentioned above might help you save money by luring you to

pay the lowest price, but when the further process comes, you will be in trouble.

So, paying a little extra buck to the company which is handling shipment &

warehousing, in the long run, is the best option.

Big companies have contacts with the customs department guys, which will be

another factor to make the process easier and faster.

Want to know more? Let’s explore a few more important

points.

The role of customs clearance in Import-Export Process requires a

wider aspect to explore the actual requirements which come in its way.

Moreover, there are certain problems which might come into your way while the

shipment is loaded and put-on hold in the warehouse department.

But there are ways to make customs clearance work in your favour, these are:

1 Giving Accurate Information to your Customs Broker:

The first and basic thing should be clear, i.e., ‘The Right Info’. Providing the

details to your customs broker accurately will make the further process easier. It

helps the customs broker or a freight forwarder to perform their tasks efficiently.

If you are dealing with an import-export business, then it is well known, it requires

a lot and a lot of paperwork. If the details asked by your customs clearance

department executive are given properly, the paperwork is carried in a couple of

times. Otherwise, it takes a lot of time.

2. A Right Info Saves from the Risk:

The Import-Export Process, though, seems to be easy, is a hectic one. As a

business owner, you have to carry out your manufacturing processes without any

delay. A delay in the supply means you are more likely to lose the international

client. 

So, to avoid such delays, providing the right information to your customs broker

saves from the risk of delay. It saves from extra duties and customs fees from

you at the ports.

Many companies try to hide the info while letting their cargo managed by a freight

forwarding company. Think, will it benefit you? No. Sharing the details is an

advantage in getting your shipment to be exported or imported in a risk-free

means.
 
Conclusion:

While dealing in the import-export business or one can say, an Import-Export

Process, the role of Customs Clearance is big. One must fully understand the

process involved, the documentation required, risks-factors in the shipment, and

overall choosing the right company to handle the logistics, customs, and

companies which can make your shipment documents easier.

Overall, an import export business is a lucrative one. Earning good money and

maximising the profits are factors which makes the international business looks

good. So, to make your business run smoothly, the major role is played by a

customs clearance department.

 
https://www.impexperts.com/blog/import-export-process/

09-09-2019 by Vaibhav Sharma

IMEXPERTS WORLD OF IMPORT AND EXPORT