Import Clearance: A Step-by-Step Guide for Beginners

Import clearance might seem like a sticky patch in India, but it can be a smooth and efficient experience with the right knowledge and preparation.

This guide will walk you through the detailed steps in this process, providing essential information for beginners. We will cover everything from understanding custom regulations to completing necessary documentation and paying duties. By the end of this guide, you will be equipped to handle the import clearance process confidently. So join us to get a detailed overview.

What is custom clearance?

It refers to the official process where customer authorities inspect, reject/approve, and release goods entering or leaving the country. The import clearance process is crucial as it adheres to the local regulations and ensures the taxes are paid.

It is a crucial step, especially in international trade, because it protects a Nation’s economic security and health while facilitating cargo movement across borders.

An in-depth look into the FCL import process in India

Here is a detailed guide on how the process takes place:

1.   Origin activities till the vessel departs

Once the importer and exporter have agreed on the terms of sale and shipping arrangements, the former provides the following information to the latter to receive import clearance.

●     It starts with this container’s details.

●     Shipping introduction outlining the shipping details

●     The origin agent provides the draft house bill of lading.

●        Import clearance paperwork that shows the exporter had paid local fees associated with the shipment at the port of origin

●     Courier details stating the final house where the cargo will be sent

●     Surrender details

●        A statement confirming that the goods have been loaded onto the ship, along with the details of the vessel’s departure, is also mentioned while getting import clearance.

●     Finally, the shipping carrier issues a master bill of lading to the origin agent. Unlike the house bill of lading, which lists the importer and the exporter, the master bill provides the name of the origin agent as the shippers and the destination agent as the consignee.

2.   Activities while the cargo is in transit

Once the goods have received import clearance, the ship leaves the port of origin.

A couple of days before the cargo arrives at its destination, the carrier will file an Import General Manifest with the customs. It will continue all the information along with their corresponding B/L numbers.

Suppose the goods have to be transferred to an Inland Container Depot to complete the import clearance process. In that case, the carrier will file a Sub-Manifest Transhipment Permit detailing the cargo being moved from the port to the ICD.

A cargo arrival notice will be sent to the importer to update them about the status.

3.   Unloading and reloading the container at its destination

In this import clearance step, the containers are unloaded and packed up on trailers to reach the container freight stations once the cargo has arrived. They can be transferred through inland haulage, which is generally of two types:

●     Merchant haulage

●     Career haulage 

4.   Bill of entry filing

Once the cargo arrives within 48 hours, the destination or import clearance agent will file the entry bills. This is one of the most important documents and is a legal requirement before warehousing or consumption.

To file the BOE, the import clearance agent will enter the required information on ICEGATE and generate a checklist. Once verified, the agent will do the final billing and receive an electronically generated number for the cargo.

5.   Custom assessment and clearance

In the next step of import clearance, once the shipment reaches CFS/ICD, BOE numbers are generated, and the cargo is classified based on its declared value.

The customs officer will check the details, such as licenses and other permits. They can even request an open examination of the shipment if necessary.

Upon completing the assessment, the cargo will receive an import clearance stamp of “Pass Out Order” after clearing the dues. 

6.   Handing over relevant documents

Following the import clearance rules, the importer will hand over all the paperwork, including license copy certificate of origin, BOE number, etc.

7.   Final delivery

The final step of import clearance is concluded by delivering the shipment. In this phase, the importer will de-stuff the containers and hand the cargo over to assigned delivery agents. They return the empty containers to the container yard, loaded and moved to the importer’s premises.

Stakeholders in FCL import

Here is the list of the group of people who influence the import clearance process:

1. Exporter     
2. Importer
3. Destination Agent
4. Customs Authorities
5. Origin Country
6. Port Authorities
7. Intermodal Transportation Providers
8. Destination Country
9. Shipping Line
10. Origin Agent

Wrapping up

By taking notes from this thorough import clearance guide, you will clearly understand the steps in making the process streamlined. Lastly, staying organised, communicating effectively, and choosing the best logistics partner will make the operation smooth.