Custom Clearance

custom

Customs clearance involves the “clearing” of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties, and excises, and facilitating communication between government authorities, and importers and exporters. It includes customs declaration, inspection, taxation, release, and other formalities. All of this must be completed before the goods can be released to the owner or the recipient.

We are also required to declare to customs, follow customs formalities, and get customs permission. During the period when the goods are in Custom’s clearance whether import, export, or transit, no one is allowed to circulate freely.

Custom Clearance In USA.

1. No custom duties are charged if the value of the shipment is less than $200

2. The shipper and consignee’s must provide the complete telephone number and address, and state them on the invoice.

3. For shipment values greater than $200, a Power of Attorney, Invoice, and a Photo ID of the receiver are needed for clearance. If the consignee does not have a bond, then a temporary bond needs to be purchased.

4. For more detailed information please refer to the U.S. Customs and Border Protection website.

Custom Clearance In India.

1. No Custom duties are charged if the shipment is a gift from an individual to another individual, only with values less than INR 10,000 with invoice clearly marked as “GIFT”. The value will then be assessed by the customs officer if he feels the shipment value has been misdeclared. If the value is misdeclared then there will be a penalty and/or duty charged.

2. No Custom duties are charged if the shipment is a sample from company to company as long as the invoice is clearly marked as “SAMPLE.” The Custom office will assess if the shipment is a genuine “SAMPLE.” If not then there will be a penalty and/or duty charged.

3. Values (Cost of Product + Freight + Insurance) INR 10,000 to INR 1,00,000 need to be cleared using Form IV.

4. Values (Cost of Product + Freight + Insurance) more than INR 1,00,000 need to be cleared using Form V and is compulsory to have an IEC.

5. If the value of the shipment is more than INR 1,00,000 and there is no IEC with a consignee, the penalty is at the discretion of the commissioner, which can be anywhere from 40% to 100 % of the total shipment.

6. The shipper and consignee’s must provide the complete telephone number and address, and state them on the invoice.

7. For more detailed information please refer to the Indian Customs website.