Introduction
Customs clearance is often the most stressful part of international trade. Delays at customs can disrupt your supply chain, increase costs, and damage business relationships. But with proper understanding and preparation, you can sail through customs smoothly.
This guide covers the basics of customs clearance for India trade — for both imports and exports.
What is Customs Clearance?
Customs clearance is the process of getting your goods approved by customs authorities to enter or leave a country. It involves:
- Submission of required documents
- Payment of applicable duties and taxes
- Physical or document inspection (if required)
- Release of goods for delivery
Key Documents for Import Clearance
For importing goods into India, you typically need:
- Bill of Lading/Airway Bill: Proof of shipment
- Commercial Invoice: Details of the transaction
- Packing List: Contents and packaging details
- Certificate of Origin: Country of manufacture
- Import License: If required for your product
- BIS/Product Certifications: For regulated items
- Insurance Certificate: Proof of cargo insurance
Key Documents for Export Clearance
For exporting from India:
- Shipping Bill: Primary export document
- Commercial Invoice: Transaction details
- Packing List: Shipment contents
- Bill of Lading/Airway Bill: Carrier document
- Certificate of Origin: Often required by buyer
- Export License: For restricted items
Understanding HSN/HS Codes
The Harmonized System (HS) code is crucial for customs clearance:
- Determines applicable duty rates
- Identifies if licenses or certifications are needed
- Wrong classification leads to delays and penalties
In India, HSN (Harmonized System of Nomenclature) codes are used for GST and customs purposes. Getting this right is essential — consider expert help if unsure.
Duty Calculation Basics
Import duties in India typically include:
- Basic Customs Duty (BCD): Based on product category
- Social Welfare Surcharge: 10% on BCD
- IGST: Integrated GST on the assessable value
- Other Cess: For specific products
The total duty is calculated on the CIF (Cost, Insurance, Freight) value of the goods.
Common Causes of Customs Delays
- Incomplete or incorrect documentation
- Wrong HSN code classification
- Missing licenses or certifications
- Discrepancies between documents and cargo
- Random inspection selection
Tips for Smooth Clearance
- Prepare all documents accurately in advance
- Verify HSN codes with customs experts
- Ensure product compliance with regulations
- Work with experienced customs brokers
- Maintain communication with your logistics partner
How Valcor Can Help
Our customs clearance services include:
- Expert documentation preparation and review
- Accurate HSN code classification
- Clearance at all major Indian ports and ICDs
- Duty calculation and payment handling
- Integration with logistics for seamless delivery
Contact us to ensure your customs clearance is hassle-free.