What Custom house agent (CHA) does in Import clearance

Being custom clearance agent is just like any other profession, but is more similar to lawyer as custom has their own laws and process which must be followed by the importers and exporters. So what it takes to become Custom house agent we will discuss that another time. Today will see what customer house agent do to clear the imported goods from custom department.

ARTICLE BY

JAINIK MAKWANA ( Customer Services and Import executive @ CKB Group)

First of all, CHA Receives original documents like bill of lading, certificate of origin, certificate of analysis, freight certificate, insurance certificate, and many other, it is depending on what type of goods you are importing. Once such documents are received he checks whether all the documents are proper like goods details, invoice details, currency details, incoterms, under which type of scheme customer wants to get benefit of duty free imports as there are many schemes for duty free import like MEIS license, re-export bond, under EPCG scheme and many others.

Once all documents verify and seems correct, he checks with shipping line the estimated arrival of shipment. Here onwards two process work simultaneously:

1)       Custom clearance process

2)       Delivery order collection process

1)      Custom clearance process

First CHA will prepare checklist with help of bill of lading, Commercial invoice, certificate, duty benefit certificate like EPCG, MEIS, re-export Bond. As said earlier this are necessary documents for clearance of goods at custom department.

Once checklist prepared he will send for approval from importer to take importer in faith that all details are correct and once importer or consignee approved it CHA will do process of filling the Bill of entry on customs website ICEGATE. (Bill of entry is the document which is consist of all details regarding goods and its approval from custom departments that documents is clear under all the laws and its legalised to use)

Once Bill of entry filed, CHA will approach respective port or ICDs custom departments, with physical original documents and as custom proceed itself may be goods approves for clear or shipment will be examined by custom directed laboratory for verification of goods. After clearance given by custom department CHA receives Final Bill of entry and shipment gets out of charge.

2)      Delivery order collection process

Along with that CHA start approaching shipping line for required documents to collect delivery order from shipping line (delivery order is document which is necessary to take authority of the goods once you make payment to shipping line they will hand over the ownership of goods to authorised owner).

Delivery Order collection process are different from one shipping line to another line. But here we will some are common documents which required by all shipping line generally, original bill of lading, if shipment is unloaded at owner's premises then factory de stuffing bond on legal stamp paper along with notarised and bank as guarantor. Some shipping line needs security cheque as security for any damage to container while loading /unloading and shipping of container from one place to another. Sometimes if forwarder involve then it also needs house bill of lading which is of forwarders BL.

Once all the necessary documents arranged CHA approach for shipping line invoice payment. Along with payment details he shares required documents to shipping line, once the payment and required documentation confirmed by shipping line they will provide delivery order and then consignee or importer can take delivery of goods once it is out of charge from custom department.

Hope you might get basic of what is custom import clearance process. It might sound easy but there are laws and guidelines which must be followed while clearance otherwise it can be penalised with charges by custom department.

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