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Question

Explain briefly the process of customs clearance of export goods.

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Solution

Before the final loading of goods for export, it is necessary for the exporter to get the goods cleared by customs. This is known as securing customs clearance. In this regard, an exporter first requires to submit the following documents to the customs appraiser at the Customs House:

(a) Shipping bill

(b) Export order

(c) Letter of credit

(d) Commercial invoice

(e) Certificate of origin

(f) Certificate of inspection, if necessary

(g) Marine insurance policy

After the submission of the documents, a carting order is obtained from the superintendent of the port concerned. The carting order acts as a gate pass for the cargo to enter the dock as it gives the necessary instructions to the staff. The physical movement of cargo then takes place from the dock to the port area and finally the goods are stored in an appropriate storage. It may not be possible for the exporter to be present at all times for performing these formalities, and therefore the task is assigned to a clearing and forwarding (C&F) agent.


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