Customs Clearance Procedure in India

Import and export of goods into and outside a country should undergo a customs clearance process. The importer and exporter of the goods should submit valid documents to clear this process. In this article, we look at some of the major steps and processes in clearing customs in India.

Calling of Vessels

Once the vessels carrying the goods reaches the country, the person who carried the vessels should make sure that the calling of vessels is done at the customs port. For instance, if goods are imported via aircraft, the pilot is responsible for call of the vessels at the customs airport. There is no requirement for the importer to get involved in this process and will be done by the airline or shipping line.

Filing Import General Manifest (IGM)

The person-in-charge of the vehicle should file an Import General Manifest electronically before the goods arrive. This file would include the details of all the goods imported by the vessel.

Post Verification Operations

On review of the Import General Manifest and post verification of documents, the customs authorities will grant entry inwards to the vessel, assign an IGM number to the manifest and permit the master of the vessel to land and unload the cargo.

Custody of Custodian

On arrival of the vessel, the goods would remain in the custody of the Custodian until it clears the customs process. A custodian may be a person approved by Principal Commissioner or Commissioner of Customs for this purpose. Imported goods can be unloaded subject to the following conditions:

A note to unload the goods should be mentioned on the manifest report.
Could be unloaded only at the approved places in the customs port.
Under the supervision of the approved authorities.
Should be unloaded only during working hours.

Filing Bill of Entry

The importer of the goods should file a bill of entry (customs copy) electronically for the clearance of the goods, before or on arrival of the goods. In the bill of entry, the duty and taxes to be paid is assessed by the importer himself and this is called self- assessment. The importer will self-assess the duty after considering the applicable rate of exchange and the rate of import duty. On approval of the Bill of Entry, the importer has to pay the GST and duty which will be entered in the Indian Customs Electronic Date Interchange System (ICEDIS). Once it is entered in ICEDIS, a bill of entry number will be generated. The importer should then submit the bill of entry (customs copy), the duty-paid challan and other supporting documents to the port authorities for making an order permitting clearance. After making an order permitting clearance, the port officer would generate duplicate bill of entry (importer's copy) and triplicate bill of entry (exchange control copy). Both the copies will be handed over to the authorized person later. Know more about GST on Imports and GST Bill of Entry.

Delivery of Goods

On showing the customs clearances to the port authorities, the importer can take the delivery of his goods. In case of cargo deposited in a warehouse, the importer would another bill of entry called the ex-bond bill of entry to clear the whole or part of the warehoused cargo.

Import Export Code

The Import Export Code is a primary document necessary for commencing Import-export activities. The IE code is to be obtained for exporting or importing goods or services. IEC has numerous benefits for the growth of the business. Indeed, you cannot ignore the necessity of IE code registration, as it is mandatory. You can apply for an Import Export code through

IndiaFilings and obtain it within 6 to 7 days.

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Frequently Asked Questions

Common questions about Customs Clearance Process in India: Import and Export Procedures.

The first step is the calling of vessels at the customs port or airport by the person in charge of the vehicle carrying the goods. For instance, if goods are imported via aircraft, the pilot is responsible for calling the vessel at the customs airport.

An Import General Manifest (IGM) is a document that includes details of all the goods imported by a vessel. The person in charge of the vehicle, such as the ship's captain or airline pilot, must file the IGM electronically before the goods arrive.

The Custodian is a person approved by the Principal Commissioner or Commissioner of Customs to take custody of the imported goods upon their arrival at the port or airport. The goods remain in the Custodian's custody until they clear the customs process.

A Bill of Entry is a document that the importer of the goods must file electronically for the clearance of the goods, before or on their arrival. In the Bill of Entry, the importer self-assesses the duty and taxes to be paid based on the applicable rates.

ICEDIS stands for the Indian Customs Electronic Data Interchange System. Once the importer pays the GST and duty assessed in the Bill of Entry, it is entered into ICEDIS, which generates a Bill of Entry number. This number is crucial for obtaining clearance from the port authorities.

After obtaining the necessary customs clearances and showing them to the port authorities, the importer can take delivery of their goods. If the cargo is deposited in a warehouse, the importer needs to file an ex-bond Bill of Entry to clear the whole or part of the warehoused cargo.

An Import Export Code (IEC) is a unique code required for commencing import or export activities in India. It is a primary document necessary for conducting international trade, and obtaining an IEC has numerous benefits for business growth. Obtaining an IEC is mandatory for importing or exporting goods or services.

An importer can apply for an Import Export Code (IEC) through authorized service providers like IndiaFilings. The process typically takes 6 to 7 days to obtain the IEC after submitting the necessary documents and information.

According to the article, imported goods can be unloaded at the customs port only if a note to unload the goods is mentioned on the manifest report, the unloading happens at approved places within the customs port, it is done under the supervision of approved authorities, and the unloading occurs during working hours.

An ex-bond Bill of Entry is required when an importer wants to clear the whole or part of the cargo that has been deposited in a warehouse. By filing this document, the importer can take delivery of the warehoused goods after completing the customs clearance process.