You must be well aware that all kinds of perishable cargo that are intended to be exported overseas need to go through a customs clearance process. Every country has its own stringent policy, and based on that, all the shipping lines, carriers, and freight forwarders need to oblige them.
The customs official inspects all your paperwork before dispatching your perishable goods . You can hand over the documents to the customs department at the port of loading along with your shipment, or you can submit them digitally. The proper custom clearance documents for export can evaluate the duties, taxes, and other additional fees to carry out a seamless customs clearance of your perishable cargo.
What are the documents required for export customs clearance in India?
When it comes to sending or bringing perishable cargo into the country, it is a must to go through the customs clearance process. Failure to follow this protocol might result in penalties or heavy fines, and the authorities have the right to seize or halt your shipment.
The list of export customs clearance documents is as follows:
- Proforma Invoice: A pro forma invoice is a preliminary document that is provided to a buyer before the final payment is made. This export invoice involves the primary stages of shipping the perishable goods that need to be shipped. The bill is prepared by the exporters and provides an estimated price, quantities, shipping bills, and a fixed timeline.
- Customs Packing List: A customs packing list contains all the detailed items that are intended to be exported. The buyer or an importer can cross-check the details with the pro forma invoice to ensure that the items meet the exact descriptions. This list of information is required for customs clearance and needs to be sent along with the perishable shipment.
- Country of Origin Certificate (COO): The exporter issues the country of origin certificate , which states that the perishable goods were processed or produced in the respective country.
- Commercial Invoice: When conducting business internationally, an authorized document known as a commercial invoice is useful for customs clearance. It is a document that lists the amount and cost of goods being transported across international boundaries.Through the commercial invoices, the customs department can ascertain the amount of taxes and duties assessed on the import of goods. The invoice is considered a legal contract between the buyer and the seller engaged in the transaction.
- Shipping Bill: The shipping bill refers to the document with which the customs authorities allow the exporters to transport their perishable cargo from the local port to the desired port. The bill provides all the information relating to the perishable cargo being exported, including the name of the vessel, the intended destination where the shipment needs to be landed, its value, and other relevant details. You can submit the bill through ICEGATE, an online software method.
- Bill of Lading or Airway Bill of Lading: A bill of lading is an export document issued by the carrier to the exporter. It serves as proof of a mutual contract for shipping perishable goods. The bill includes the details of the product, the type, quantity, and destination of the goods. This document needs to be signed by the exporter, carrier, and receiving party. The bill of lading acts as a shipment receipt that needs to be presented at the port of loading for the customs clearance process.
- Bill of Sight: A Bill of sight is a form that is used by the exporter when the receiver isn't sure what is inside the shipment. Here, the receiver can verify the goods before paying to the relevant authorities. This bill can act as a substitute document if the exporter doesn't have the required information and documents for the regular bill of entry. The exporter must submit a letter along with the Bill of Sight to have the goods cleared by the customs officials.
- Letter of Credit: A letter of credit (LC) is a crucial document issued by the importer's bank on behalf of the importer. When it comes to conducting international trade between the two parties, the bank ensures the exporter that the transaction will be processed. The importer is the applicant, and the exporter acts as the beneficiary, and the importer is the applicant. Under the Letter of Credit, the issuing bank promises to pay the required amount as per the specified timeline and against essential documents.
- Bill of Exchange: A bill of exchange is a vital export document similar to an IOU or promissory note. This document serves as a payment substitute and can be issued to banks or individuals. The importer must pay for the perishable goods either on demand or as agreed. It provides the most secure method for completing transactions between exporters and importers, offering flexibility and smooth international trade operations.
- Export License: The Chief Controller of Imports and Exports issues an export license to the exporters. This license is a must for transporting perishable goods internationally. Any business involved with the perishable export must present this document to the customs officials so that they can ship the goods to the intended port.
- Warehouse Receipt: A warehouse receipt is generated after the exporter has paid all the applicable export duties, taxes, and freight charges.
- Health Certificate: If an exporter or a food sector business is shipping food products to international destinations, it is necessary to obtain a export health certificate . The document states that the perishable goods that are being shipped meet all the health and food safety standards that are fit for consumption.
Similarly, if you need to bring perishable goods from another country, you need to keep some important documents handy to make a way for easy customs clearance.
The list of import documents is as follows:
Bill of Entry : A Bill of Entry (BOE) is a legal document filed by the importers or customs clearance agents upon the arrival of perishable goods. The BOE facilitates the import cargo's easy customs clearance. The BOE is a vital component of the customs clearance procedure as it enables the government to keep track of the movement of goods and services into the nation. Once the imported goods go through an inspection by the customs officials, importers may be eligible to apply for tax credits on the perishable goods if they qualify.
Import License: As directed by the government, an import license is necessary to bring certain restricted goods into India. An individual or business must apply to the licensing authority to obtain this license. This will enable the authorized importers to enter the restricted goods into India and regulate the flow. The importers should comply with the national laws to avoid legal issues and ensure hassle-free customs clearance.
Insurance Certificate : The insurance certificate plays a crucial role when you import perishable goods. Through this certificate, the customs officials verify the imported goods and check whether the selling price includes insurance coverage or not. This document facilitates the customs clearance process, and the importers must adhere to the import regulations. The insurance certificate allows customs officials to accurately evaluate the total value of your shipment. The amount of import tax and fees that you need to pay depends on the total value.
GATT/DGFT Declaration: As per the guidelines mentioned in the General Agreement on Tariffs and Trade (GATT), every importer needs to submit a GATT/DGFT declaration during customs clearance for importing perishable goods. It got all the information to determine the applicable customs duties and taxes, ensure compliance with trade regulations, and go through an ease of customs clearance. An importer should maintain three copies, two for customs administration and one for the declarant, for record-keeping and future reference. The accurate documentation helps in avoiding delays and heavy penalties or legal proceedings during customs clearance. You must keep these records for at least three years, as required, to address any potential audits or inquiries from customs authorities.
Technical write-up: A technical write-up is a document needed for some specific goods. It describes the features and usage of the perishable product, mostly for better handling of goods. This helps the authorities have a better understanding of the imported product and the value-added cost associated with it.
Industrial License : You need to have an industrial license to import specific commodities. If an importer wants to avail of any import duty benefit, incentive, or any other discount, an industrial license can be used as proof. If you are bringing goods from other countries, you need to get a copy of an industrial license for seamless customs clearance.
Import General Manifest (IGM) : If your shipping vessel carries imported goods that need to be received at the Indian ports, the carrier must notify the customs department, not the importer. When vessels with imported goods arrive in India, the carrier (like an airline or shipping line) must notify customs, not the importer. Prior to the perishable goods arriving, the carrier should file an electronic Import General Manifest (IGM) with details about the shipment. After reviewing the manifest and examining the perishable goods, the customs officer will assign an IGM number and permit the unloading of the imported cargo. Once the perishable shipment arrives, an approved custodian will hold the goods until the customs clearance process is completed. Keep in mind to add a note to the manifest to unload the cargo.
Which documents can be benefited by both the importer and the exporter?
Registration and Membership Certificate (RCMC)
The RCMC (Registration and Membership Certificate) is a custom clearance document you need from Export Promotion Councils (EPCs) in India. If you’re an exporter or importer looking for benefits under the Foreign Trade Policy (FTP) or any EPC schemes, you must present your RCMC at customs. This certificate proves that you are a registered member of the EPC and can access various government trade benefits and incentives. It’s essential for participating in international trade and getting support from trade promotion policies.
Import/Export Code
The IEC stands for Import Export Code . The IEC consists of a 10-digit number that is issued by the Directorate General of Foreign Trade (DGFT) to execute any import or export business. The IEC code makes it easy to track the shipping process. The IEC Code strengthens your relationship among international patterns and ensures credibility. You can’t conduct import or export business without the IEC Code, unless they are specially exempt.
Conclusion
In summary, having the right paperwork ensures you can go for a smooth customs clearance. Each document plays a key role, from verifying goods details to availing various duty benefits. You can avoid potential delays in your shipment by cooperating with the customs authorities.
Citrus Freight can simplify the shipping process of importing or exporting perishable goods, including the crucial documentation required during customs clearance. Citrus Freight ensures that both parties can enjoy the benefits of facilitating a seamless trade transaction while importing or exporting perishable goods.