Your Best Freight Forwarder Agent for Customs Clearance India.

Customs Clearance India| The Ultimate FAQ Guide

Introduction

International trading is export and import based from any other countries to India.

Commodities are transported and shipped by a variety of methods, including road, air, and sea, to reach their final destinations.

Therefore during importing and exporting customs permission is mandatory to get.

However, customs clearance from China to India is required to assure a fully legal and ethical freight transfer from China to India.

India Customs clearance is able to protect India’s economy from unlawful taxation.

This FAQ guide can assist you to know about customs clearance from China to India.

Table of Content

1. What Is Customs Clearance India?
2. What are the types of customs clearance in India?
3. Where is the customs clearance India service required?
4. What Are The Procedures of Customs Clearance India?
5. How Long Does Customs Clearance Take In India?
6. How Much Does The Custom Clearance Charge In India?
7. What Are The Terms And Conditions Of Custom Clearance Charges In India?
8. What Are The Responsibilities Of Customs Clearing Agents In Mumbai?
9. How To Check The New Customs Clearance Status In India?
10. What Are The Documents Required For Import Customs Clearance In India?
11. What Are The Advantages Of Customs Clearance Services For Importing In India?
12. How To Calculate The Customs Duty For Customs Clearance India?
13. Does freight forwarder do customs responsibility for customers of India?
14. When Do I Need To Organize Customs Clearance For Importing In India?
15. How Can I Find A Customs Broker For Getting The Customs Clearance India?
16. What Are The Causes A Shipment Can Be Delayed To Get India Customs Clearance?

1. What Is Customs Clearance India?

India’s shipments have increased as a result of the growth of trade credit and the elimination of trade obstacles.

The Foreign Exchange Regulation Act of 1973 (FERA) was abolished by the government, and the Foreign Exchange Management Act of 1999 was enacted in its stead.

The government increased the volume of imports in the country by implementing structural reforms and liberalization.

There was a need for India China customs clearance services as the country’s imports increased from China.

Customs clearance India refers to the paperwork and procedures associated with the import of goods and services into the country.

Customs paperwork is handled by various customs administrations in India.

The Central Board of Indirect Taxes and Customs is India’s principal customs regulating body.

Taxes are dealt with by this agency as well as  custom clearance from China to India.

2. What Are The Types Of Customs Clearance In India?

A document is given by a department of customs clearance India and China to a shipper showing that all tariffs are paid including import charges in India and the shipper’s goods are approved for importing is known as India China customs clearance.

There are three types of customs clearance India.

The followings are the types of customs clearance India:

● International Customs Clearance

In 1962, according to the Customs Act of the International customs clearance India law was established.

It analyzes the shipping goods and parcels that are importing from other countries or exporting to others and the import charges in India also.

● Import Customs Clearance

Import Customs Clearance India Services would cover all of the steps required in importing commodities and products from other countries.

● Export Customs Clearance

This export customs clearance India service covers India’s obligations for exporting products or goods to foreign countries.

Different authorizations must be secured by an exporter or company house in order to carry out product export.

HART is a worldwide logistics agency that can support you in getting any of these three customs clearance services.

We perform the responsibilities by our experienced customs department for your hassle-free shipment.

3. Where Is The Customs Clearance India Service Required?

During exporting and importing, custom clearance from China to India is mandatory.

But there are some particular places where customs clearance India is required as per transportation and shipping ways.

In the following locations, customs clearance India services are required:

• Seaports
• Airports
• Coastal ports
• Where exportable items are loaded
• Where cargoes of products are unloaded
• Land customs station
• Places where products are imported from the inland
• International courier services which are existed in airports
• International Terminal in airports

4. What Are The Procedures of Customs Clearance India?

Customs clearance India is required for importing and exporting the commodities into India from China and out of India.

To complete this procedure, the importer and exporter of the products must provide appropriate documentation including payment of import charges in India.

Here we’ll look at some of the most important stages and processes involved in passing customs in India through air freight:

Call for Vessel

The pilot of the vessel would normally call the vessel to the port of customs upon entering Indian territory.

Typically, when items arrive through air cargo, the pilot is in charge of calling the vessel.

The importer is under no obligation to participate in this procedure.

Normally, an airline or a shipping firm would be in charge of such procedures.

Import General Manifest (IGM)

Before the items arrive in India, the person in charge of transportation must submit an electronic Import General Manifest.

This file would contain information on all of the items that the vessel brought to the specified location.

IGM Verification

The vessel would be permitted to enter the customs port after the Import General manifest and the paperwork had been checked.

To unload the cargo, the master of the vessel would be given a unique reference number known as the Import General Manifest (IGM) number.

Custody Of Goods

The commodities would be in the custody of the custodians until all of the permissions for the import of goods and products were acquired after paying import charges in India.

A custodian is a person who has been approved for this function by the Principal Commissioner or Commissioner of Customs.

The following requirements must be met in order for imported items to be unloaded:

• On the manifest report, make a note that the products should be unloaded.
• Only permitted areas in the customs port might be used for unloading.
• Approved authorities are in charge of oversight.
• Only during working hours should be unloaded.

Bill of Entry

Before or on the arrival of the goods, the importer of the items shall file an electronic bill of entry (customs copy) for clearance.

Self-assessment refers to the process of the importer determining the duty and taxes that must be paid on the bill of entry.

After evaluating the appropriate exchange rate and the rate of import duty, the importer will self-assess the duty.

The importer must pay the GST and tax after the Bill of Entry is approved, which will be recorded in the Indian Customs Electronic Data Interchange System (ICEDIS).

A bill of entry number will be created once it has been registered into ICEDIS.

The importer should next give the port authorities the bill of entry (customs copy), duty-paid challan, and other supporting documents, and they will issue a clearance order.

After issuing an order permitting clearance, the port officer would prepare a duplicate bill of entry (importer’s copy) and a triplicate bill of entry (exchange control copy).

Later, the authorized individual will receive both copies.

Delivery Of The Goods

The importer will be able to deliver his products once the customs clearances have been presented to the port authorities.

If the cargo is stored in a warehouse, the importer will utilize an ex-bond bill of entry to clear the entire or portion of the stored goods.

Here are the procedures of India customs clearance through ocean freight:

• A shipping business sends cargo in on an ocean freight liner.
• Loads of cargo have been dumped at the port.
• Forms and papers that the agent has declared
• Cargo is checked out of the freight terminal
• Examinations and customs duties are taken care of
• The cargo is dispatched

HART handles the procedures for you.

We work as a customs broker besides your freight forwarders.

Therefore, if you get our service, you will get a customs supporting hand also.

5. How Long Does Customs Clearance Take In India?

There is no exact time limit for customs clearance from China to India.

Customs clearance usually takes a minimum of 25 days to a maximum of 45 days in India.

Actually, if the bill of entry is not filed, customs clearance can be delayed.

You can get a clear idea about customs time limit by this video:

6. How Much Does The Custom Clearance Charges In Mumbai India?

The customs clearance import charges in India are different based on the size of the clearinghouse for custom clearance charges in Mumbai.

A fee of around 5%-6% of the items’ worth is charged as an agency charge.

Plus an estimated $100-$200 for repacking, loading and strapping

A 2% passing and examination fee is added to the invoice separately

On custom clearance charges in Mumbai, there is a service tax of 10.3%-11%.

Any additional fees for container transportation or warehouse storage may be added on top of the survey price.

Any fees paid to third-party service providers will be additional, so ask about them ahead of time.

6.5%-7.5% octroi charges in India

There are some important things you need to know about custom clearance charges in Mumbai

The things about custom clearance charges in Mumbai are mentioned below:

• The GST imposed by the government of India applies to the charges.
• Additional taxes and customs duty charges
• Charges are only applicable to general cargo, not to special cargo, etc.
• For the valuable shipments, charges are invalid.

7. What Are The Terms And Conditions Of Custom Clearance Charges In India?

To determine custom charges in India from China, there are some important terms and conditions that are not skippable.

Therefore, it is essential to know the terms and conditions of custom charges in India from China.

The followings are the terms and conditions:

• Import Custom clearance charges in India are only applicable to the ports included in the quotation.
• All India customs charges including freight and duty have to be given in advance once the actual figures are communicated to you.
• All statutory fees are based on actuals and are in addition to the India customs charges included in the quote.
• Any unexpected India customs charges will be disclosed ahead of time and will be charged to your credit card once you have confirmed your reservation.
• There is a three-day demurrage-free period. Please be aware that the demurrage will not be funded by OTIL.
• The consignor must have an import-export code (IEC) as well as a VAT registration number (TIN no) for India customs charges.
• If a pre-alert is not sent before 24 hours after the shipment arrives, customs will assess penalty India customs charges that will not be covered by OTIL.

8. What Are The Responsibilities Of Customs Clearing Agents In Mumbai?

India customs clearance is a complex process with many subtleties and layers of bureaucracy, necessitating a great deal of practical experience.

As a consequence, the greatest outcomes may be obtained while avoiding the imposition of fines and other consequences for mistakes.

Apart from that, Customs Clearing agents in Mumbai is foreign trade specialists who are responsible for clearing tariffs and paperwork on the import and export of all sorts of products and commodities in accordance with customs and government laws.

However, there are some responsibilities of customs clearing agents in Mumbai who work for importers India China customs clearance.

The followings are the responsibilities:

• India China Customs clearance procedure planning, registration, and supervision, and also presenting all associated paperwork in Mumbai;
• Reception of approved goods for India China customs clearance;
• Customs clearing agents in Mumbai do the departure from customs examination;
• Transmission of India China customs clearance paperwork, including conditions of duty;
• Observing the product inspection at the customs meeting, including collecting samples for technical help and knowledge;
• receipt of the summons, notifications, violation notices, orders, and decisions relating to customs clearance, among other things;
• Customs investigation request and monitoring for India customs clearance..

HART maintains good communication with local customs clearing agents to provide smooth and hassle-free custom clearance services.

9. How To Check The New Customs Clearance Status In India?

The Indian Customs Authority has established a tracking system that will give you information on the status of your import package.

Your UPS air waybill number can be used to check the status of non-document shipments.

A customs tracking number provided by a UPS customer service agent may be used to check the status of your letter and document shipment.

But, the status tracking system only shows shipments with a Consignment Note, a PIB (formal entry), or a PIBK (consolidated shipment).

This video will show you how the customs work:

10. What Are The Documents Required For Import Customs Clearance In India?

Legal paperwork, common documents, and commodity-specific documentation are all necessary to pass the customs clearing step during shipping.

So, the following are the documents are required for import customs clearance from China to India:

• Bill of Entry
• Bill of Lading for custom clearance from China to India.
• Certificate of Insurance
• Commercial Invoice of custom charges from China to India
• Technical documentation, literature for specific items if there are any.
• Import License for custom clearance from China to India.
• Letter of Credit of custom charges from China to India
• Industrial License (if applicable)
• Test report (if applicable)
• DEEC /ECGC/DEPB
• Declaration of DGFT/GATT.
• Central excise document (if applicable)
• Registration cum Membership Certificate (if applicable)

11. What Are The Advantages Of Customs Clearance Before Sending Goods To India?

The value of having a custom clearance service is that it allows us to help customers through the shipping procedure in terms of clearance.

It aids in the quickening of the procedure through these clearance services.

The advantages of Customs clearance are mentioned below:

Works In Accordance With The Requirements

It establishes long-term relationships with our users by offering exceptional and quality services.

This provides a clear image of all import custom clearance charges in India made during the procedure, as well as a general overview of the overall process before it arrives at its destination.

It Can Offer Guidance.

Import permits, categorization, valuation, tariff reliefs are all things that must be understood.

Import and export cargo must be handled by agents via air, ocean, and land transit at cheaper import custom clearance charges in India.

Examining Each And Every Document

It examines all of the paperwork to see whether they match the criteria of that particular country.

As a result, it provides solutions that result in lower import custom clearance charges in India and tax payments in the future.

Keeping Deliverables On Schedule

Considering that on-time delivery is critical for every international merchant.

This is one of the main reasons for outsourcing custom clearance services.

Complicated Administrative Requirements Information

Many businesses struggle to keep track of the costs of employees who are familiar with the complicated administrative requirements that accompany international product shipment.

In this case, they might choose to outsource this business barrier and hire custom clearing services.

HART worldwide manages customs clearance services at the lower cost of import custom clearance charges in India on behalf of importers who keep believe us.

12. How To Calculate The Customs Duty for Customs Clearance India?

The charge levied on products when they are moved across international boundaries is known as Indian customs duty through sea freight or air freight.

In basic words, it is a tax placed on products imported and exported. This duty is used by the Indian government to increase income, protect domestic industries, and restrict the flow of products.

It is actually maintained by customs clearance authorities because after paying the custom charges from China to India, your goods will get clearance.

The following table is the example of calculation of the customs duty for customs clearance India:

SL. No	Items and Description	Value (INR)	Import without FTA (INR)	Import After FTA (INR)
A	CIF at Indian Port	99	99	99
B	Assessment Value of as landing charges	1	1	1
C	Basic Custom Duty (BCD) @ X % of Assessment Value	100*X%	100*20%=20	100*0%=0
D	Social Welfare Surcharge (SWS) 10% of C (As applicable under the Customs Act)	(100*X)*10%	20*10%=2	0
E	Integrated Goods & Services Tax (A+B.C.D) “GST Value. India has five slab rates for IGST — 0%, 12%, 18%, 28%	(A+B+C+D)*IGST value	122*28%=34.16%	100*28%=28
F	Compensation Cess (As applicable The Goods and Services Tax (Compensation to State) Act, 20171 Total Applicable Duty	(A+B+C+D+E)*Compensation Cess value	None	None
G	Total Value	A+B+C+D+E+F	156.16	128
H	Total Applicable Duty		56.16	28

Table 1: Calculation Example Of Customs Duty For Customs Clearance India

Basic Customs Duty (BCD)

BCD tax is computed based on the Assessment Value of items that have arrived at India’s customs border.

It might range from 0% to 100% percent.

Social Welfare Surcharge (SWS)

SWS is a tax on the value of products, including the value of the BCD. Unless the product is exempt from the tax, it is usually 10%.

Integrated Goods & Services Tax (IGST)

GST, which went into effect on July 1, 2017, absorbed most indirect taxes, including excise custom charges in India from China and a unique extra customs levy.

The IGST is levied on imported goods to level the playing field for local producers as custom charges in India from China.

Importers must also pay an equal tax (Central GST + State GST or IGST) on the sale of their products.

In India, IGST on imported products can be offset against any other GST payment. IGST is divided into five slabs: 0%, 5%, 12 %, 18 %, and 28 %.

Compensation Cess

This is a tax that is levied in addition to GST on both imported and locally made products that are classed as notified, such as Special Utility Vehicles, Cigarettes, Tobacco, Aerated Water, and so on.

13. Does Freight Forwarder Do Customs Responsibility For Customers Of India?

Yes, freight forwarders like HART worldwide do the customs responsibility for customers of India if they have a customs department with an expert customs handling team.

In this matter, the freight forwarder needs to maintain good communication with local brokers, customs clearing agents, and customs authorities.

Brokerage services are available to HART, so we can perform the responsibilities as a customs broker.

Any service you need like, FCL, LCL, Air Shipping, or FBA shipping, we manage the shipment with customs clearance.

14. When Do I Need To Organize Customs Clearance For Importing In India?

When transporting commercial products from China to India by road, air, or sea, customs clearance is almost always required.

Smaller shipments are also excluded from the necessity for a formal customs clearance procedure in India.

Due to the fact that import and export clearance procedures vary per country.

It is essential that the trader conducts the necessary research or consults an expert like HART as a customs broker or freight forwarder during FCL or LCL or any other shipping service.

15. How Can I Find A Customs Broker For Getting The Customs Clearance India?

Allowing your freight forwarder to handle customs clearance for you is the easiest way to find a customs broker for getting the customs clearance India.

But you will be charged a customs fee for this service.

But hire that freight forwarder who has licenses as customs brokers across the world.

You can opt to use your own customs broker even if you’re dealing with a freight forwarder.

For import clearance, you’ll need a customs broker at the point of origin and at the point of arrival.

You should also be aware that your freight forwarder will not be responsible for any additional custom charges from China to India incurred.

16. What Are The Causes A Shipment Can Be Delayed To Get India Customs Clearance?

There are three main reasons which can be the cause of shipment delays.

The reasons are mentioned below:

• Not to submit all documents which are required for customs clearance India
• Not to pay whole custom charges from China to India
• The items are prohibited by customs authorities for shipping.

Therefore to get a hassle-free customs clearance India you can forward the responsibilities to HART.

Because HART not only works as a freight forwarder, also examines whole regulations of customs clearance India and then maintains the shipment as per the regulations.

Final Words

When someone wants to import from China to India, whether by air or marine freight, customs clearance is a must-do procedure.

Before any goods may depart the origin port or airport, the transporter must first get export clearance.

Before the freight may be delivered to the consignee, the freight must first clear customs in the destination country.

But if you want a hassle-free shipment including customs clearance India at lower custom charges from China to India, you just contact HART.

HART is always ready to provide you the best shipping service to India and performs as a customs broker also.