Why Customs Clearance process is necessary?
Custom clearance procedure is necessary as it permits the goods or products to be imported or exported in a country via an authorized customs broker. A customs broker is an agent who is authorized by tariff laws and assists the importers with the transaction of their customs business.
There are some documents required for export customs clearance which are necessary for the importer or exporter to have. With the help of your freight forwarder, you can get these documents cleared. Let’s look at the export clearance documents:
List of Documents Required for Export Customs Clearance in India:
BIN:Exporter who wants to export the products needs to obtain a PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade prior to the filing of shipping bill for clearance of export goods. The exporter should also register themselves as an authorized foreign exchange dealer and open a current account for the credit of any drawback incentive.
Export/Purchase Order:One of the essential documents required for export customs clearance is the export or purchase order which is based on the invoice. The invoice is generated according to the outlined terms and conditions that have been agreed upon between the importer and the exporter. The purchase order is similar but is issued prior to the completion of the sales transaction.
Shipping Bill:Shipping bill is also one of the essential export clearance documents which is a traditional report and can be submitted through a custom online software system. This document serves as a measure bale record and needs GR Forms, packing list, export license, indent, acceptance of contract, invoices, purchase order, letter of credit, AR4 and invoice, port trust document, and examination or QC certificate to obtain shipping bill.
Industrial License:For export clearance procedure, one needs to have a legit industrial license in case they want to import duty benefit. A copy of the industrial license also becomes one of the customs clearance documents required for importing the goods.
Certificate of Origin:Certificate of Origin is also an essential export clearance document usually used in international trade as it establishes the country of origin of the product that is important for the exporter claiming import duty befits against the products. COO is often obtained in the form of a statement attached to the commercial invoice that tells the custom department of the origin of the products being exported.
Letter of Credit:The export clearance procedure requires the letter of credit as well which is an assurance given by the exporter’s bank to remit the amount to the seller. All the letter of credits for export or import trading is handled under the guidelines of Uniform Customs and Practice of Documentary Credit of International Chamber of Commerce (UCP 600).
Product’s inspection:In the documents required for export customs clearance one must keep a document that also mentions and clears that the products that are verified before being exported. These documents are kept to verify the fulfillment.
Packing List:When you’re exporting products from one place to another, it is required for you to have a document of the products you’re exporting which is also an essential document required for the export clearance procedure.
Airway Bill (AWB) or Bill of Lading (BL):Airway Bill is a document that accompanies the products being exported via international air courier and this document provides all the information needed for the export clearance procedure and helps in tracking the shipment as well. Bill of Landing on the other hand is a document that is issued by a carrier to the shipper that lists down the type, quantity, and the destination of the products/goods being exported. Bill of Landing also serves as a shipment receipt as the products reach their destination.
Export General Manifest:Export General Manifest is one of the documents required for export customs clearance which is to be filed by the airlines that explains that the products along with the required documents are being exported.
Freight forwarders should be considered in order to make your export clearance procedure hassle-free as they are professionals connected with the supply chain and concentrate on the logistics and transportation of the products. The freight forwarders are in touch with the entity in the exporting process and thus, making the entire process right from the documentation to the delivery hassle-free.
At Boxnbiz, our team of experts will provide you with all the documents that are necessary for the export customer procedure and make sure that the products that are being exported are in the right condition when they are shipped and delivered. The system prompts you with all the information needed to track the products and the team of customer service is always available for queries if you have any.