Does the documentation process of the customs department always stress you out? Well, if yes, then you are facing the general query as most of the traders face the same problem. The customs services are quite complicated and confusing to people, more so because the CHAs (Customs House Agents) are the trained individuals for the same. Operating a shipping business is one thing, and getting all the formalities done for it is another! Some traders think it is best to avoid getting involved in these complications as the CHA will handle it all. But you should always be well-aware of every aspect of the shipping industry even when you have a reliable team of shipping agents.
For a detailed understanding of the customs services and its regulations, you can start by addressing your queries using the common FAQs (Frequently Asked Questions). These questions are the familiar concerns that almost all the traders come across while governing their freight shipments. Here are a few common ones that will help you clear most of your confusions and understand the nitty-gritty of the customs department to some extent.
Face your concerns and questions to get the answers and develop your knowledge!
Top FAQs To Reflect Some Light on Customs Services
Traders in the international shipping industry keep coming across queries related to the vital part of the freight shipment journey, the customs clearance. You can take reference from the top FAQs to understand the process and significance of the customs services in a better way!
1. What Are The Essential Documents For Customs Clearance?
The list of documents for getting customs clearance is a bit long and may vary depending upon the country you are shipping to and the nature of the goods. However, the general ones include:
- Bill of Entry – Bill of Entry is needed for import customs clearance at the time of acquiring goods from any other country.
- Bill of Lading – Bill of Lading is the document needed for exporting goods to any other country. You will get this one from your shipper/freight forwarder.
- Shipping Bill – The shipping bill is the application that you have to submit to the customs department of your country for getting the “Let Export Order”.
- Import License – A copy of the import license is mandatory for importers for getting the customs clearance.
- Letter of Credit/Purchase Order – The letter of credit is issued by the bank where the importer claims to pay the money
after receiving his cargo. - Commercial Invoice cum Packing List – The commercial invoice cum packing list is the descriptive document that comprises
all the details regarding the goods. - RCMC (Registration Cum Membership Certificate) – The RCMC is an important document that you need to get for exporting
the goods. - Technical Write-up – This part concerns the CHA (Customs House Agent) that he has to submit on your behalf for completing
the customs services. - DEPB/DEEC/ECGC – All these documents and certificates are also a part of the customs documentation.
- Industrial License (if any) – If you have an industrial license and the cargo is under your production house, you need to submit this document.
- Central Excise Document – The central excise payment certificate is also essential for this process.
2. Are Customs Declaration and Customs Tariff The Same Thing?
No, the customs declaration is the document that enlists the details of the goods that are exported or imported while customs tariff is a type of tax that you have to submit against the shipment of certain goods. The rate of customs tariff may differ from country to country and also depends upon the nature of the goods.
3. What Are The Common Customs Clearances?
The common types of customs clearance are – on-wheels clearance, factory clearance, and dock clearance. Almost all the CHA and shipping service providers offer assistance for these services. You can consult with your CHA to discuss the processing of these clearances.
4. What Are The Most Frequently-Used Customs Certificates?
The most frequently-used certificates that are compulsory for getting customs clearance at the time of export or import are – VGM certificate, COO (Country of Origin) certificate, and Phytosanitary certificate. You need to acquire these certificates beforehand given any delay in getting the customs clearance can lead to uninvited delays in your cargo shipment.
5. How Long Does It Take To Get Customs Clearance?
You can get customs clearance within 24 hours, a week, or a month! Yes, there is no specific time as this one is a time-taking process, and the period will depend upon the accuracy of your documents. That is why hiring the best CHA is vital to get the fastest customs services.
While these common FAQs mark most of the queries that you might have faced regarding the customs clearance services, you should consult your shipping partner if you have any further queries. Also, finding the best shipping partner and services will help you to a great extent! The more precise you are with your choices, the higher will be your chances of simplifying the shipping process.