Custom Clearance of Import Cargo

Introduction

• Goods imported attract customs.• Source of revenue• Checks smuggling• Regulates trade• Undertakes agency functions• Collects trade data

Types of import

Import of Unrestricted Items

• Import of goods having restriction under Import policy 2002-07 cannot be imported.

• An intending exporter has to check ITC(HS) Classification.

• Only requirement is payment of import duties.

Import of Restricted Items• Import license required to import restricted items.

• It is known as NEGATIVE LIST.

• Justification for import of such items required.

• Import of such items not a matter of right but privilege extended by government.

Import of Capital Goods• Import of capital goods is liberal.

• The only requirement is payment of applicable import tariff, and arrangement of custom clearance

• Should not be more than 10yrs old

• Cannot be transferred, sold or otherwise disposed off within 2yrs.

• Export Promotion Capital Goods Scheme.

Advance Licensing

• Import of raw material under Duty Exemption Scheme.

• Duty free license to import for the purpose of export.

• It includes raw materials, components, spares, packaging materials.

• Export obligation imposed on importer.

Required Documents

The importer is required to fulfill the following documents to the bank:

• Letter of authorization to debit his account along with the bank charges.

• Form A-1 for sending remittance to the exporter.

• Exchange Control Copy of the Import License, if applicable.

Procedure

1.Arrival of goods & import general manifest2.Preparing bill of entry3.Services of C.H.A.4.Presentation of bill of entry for noting5.Presentation of bill of entry for appraisal.6.Payment of duty7.Physical examination as per exam order8.Release order9.Confiscation of goods

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