Uploaded on Nov 19, 2020
It is an act which denotes the supremacy of the Government of the land. It tells people what you can do while coming into the Country and what you should do while going out of the Country.
What is Customs Clearance_ Get The Basics Clear
Every Country in the world has an organization called
Customs. The job of the Customs is a sovereign act. It is an act
which denotes the supremacy of the Government of the land.
It tells people what you can do while coming into the Country
and what you should do while going out of the Country.
It is a barrier that has to be crossed, and that process of
crossing that barrier is called Clearance, so Customs Clearance
is the process of passing the barrier that is Customs. I can give
you a small example. When you go to a shopping mall, you
find that the security at the gate checks your bag, they check
your body, they check what you are taking inside, and they
check what you are taking outside.
But what are they checking?
They only check whatever the mall owner wants to permit
comes inside, and whatever the mall owners do not wish to
allow remains outside.
The security decides the process of checking at some places
you are frisked. At some places, you go through a wire at
some places you open your bag for them to check. Now let us
replace the mall with India.
Let us replace the security with Customs and let us replace the
mall owner with the Ministry of Commerce that is the DGFT
that is Director General of Foreign Trade.
As per experts of Custom Clearance in Ahmedabad, it is
Director General of Foreign Trade (who) decides what can
come in and what can go out under what condition and in what
form. It is a job of Customs (to) ensure that only what is
permitted by the DGFT comes into the Country and goes out of
the Country in the form in which it has to happen. The process
of Customs Clearance generally happens through what is
known as a licensed Customs Broker.
A licensed Customs Broker is an agency that represents active
working in it and who have passed Customs examination. This
is called the Regulation-6 exam and those people who have
passed the exams are authorized to act on behalf of that
company or firm or on their own to undertake Customs
Clearance.
As per the experts of Custom Clearance in Ahmedabad, the
process of Customs Clearance involves filing documents with a
lot of details. These documents are called the Bill of Entry or
Shipping Bill under which materials are processed in Customs.
The cargo which is covered by these documents is also
handled in Customs and thereafter Customs gives what is
known as ‘out of Customs charge’. On export cycle, it provides
what is known as a ‘Let export order.' The process of getting
out of Customs charge or OCC and on export cycle getting ‘Let
export order’ or ‘LEO’ indicates that the process of Customs
Clearance is complete.
Your cargo can move into the Country or can
move out of the Country. As per the
Custom Brokers, it implies
==> Whatever conditions are imposed by the DGFT have been
fulfilled.
==> It means that whatever conditions imposed by other
Government Departments (if any) have been fulfilled.
==> It implies that all processes of Customs have been
complied with.
So Customs Clearance is a simple process of filing documents
with Indian Customs ensuring that all the requirements of the
Government of India being through the Ministry of Commerce
or other Ministry are fulfilled. All processes of Customs, which
may include checking of documents, which is called
assessment or checking of the cargo, which is called
examination and payment of duty and other charges are all
completed, and thereafter the cargo is permitted to move into
the Country or to move out of the Country.
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