Logistics Made Simpler- Import Customs Clearance

Now that we know a little bit more about the Export Customs Clearance process, let’s get to know about the Import Clearance process. Although it is quite similar to Export Customs Clearance in a lot of ways, there is the additional process of tax and duty assessments that make it slightly different.

As we already know commercial cargo can’t leave or enter any country without customs clearance which requires various documents to be submitted to the Customs Agency and duties and levies to be paid. While based on the product type and country of origin for the cargo, the regulations and documents required by the customs authority for import may vary from country to country, the basics can indeed be considered similar.

Before importing anything into the country, there are a few things that need to be taken into account-

Businesses planning on importing goods may have to have an import business number besides import licenses or permits if required.

You will also need to make sure the good you are planning to import aren’t banned from the country of origin or destination and determine the Harmonized System Codes for the materials or products you are importing.

Once these two are done, there is a list of documents that you will need to submit to the Customs Agency before you can finally get your goods cleared-


· Certificates of Origin- Certifies the origin country of the goods being shipped



· Letter of Credit- A document by the importer's bank stating that the importer will honour the payment to the exporter as per the agreement and once the letter of credit is received by the exporter, only then the goods are dispatched.



· Bill of Lading- Issued by the carrier to a shipper, acts as a contract between both the parties that includes product information and destination of the goods that are required at the port of destination for customs clearance.



· Customs Packing List- Contains the list of items being shipped which can be used to minimize the risk of exporting the wrong set of goods.



· Insurance policy- stating the insurance policy under which the shipment is covered



· Import Declaration- A document submitted to Customs in a prescribed format containing the description of goods, value, name of exporters, name of buyers/importers, and name of transport operators.



· Customs Invoice- Containing the details of the goods such as price, quantity weight, etc that will help the customs authority to determine the customs import value at the destination port, freight insurance, terms of delivery and payment, etc.

Once all the documents have been submitted, you will need to wait for the Customs officials to approve your declaration, which once done, will have to finally pay the taxes and levies placed on the goods you are importing. If everything goes smoothly and there aren’t any other concerns, the customs agency will release your goods right after the payment is complete.

Both these articles have shed some light on the process of export and import clearance however, this is just scratching the surface. In reality, this process is a lot more complicated as there are various factors to be accounted for such as the nature of goods being traded, the countries between which the goods are being shipped to and from and the regulation followed and the technologies being used by the respective countries’ customs departments.

It may seem daunting to handle all these activities on your own, which is why we are here.

At MGH, we handle all sorts of customs clearance processes depending on the countries and goods involved along with providing our customers with live tracking of their shipment with our very own portal - myshipment.com so that you can focus on increasing your business while we ensure getting your goods at the right place, at the right time.