Question

Write short notes of the following.

Process of customs clearance of export of goods.

Answer 1

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 needs to submit the following documents to the customs appraiser at the Customs House:

i. Shipping bill
ii. Export order
iii. Letter of credit
iv. Commercial invoice
v. Certificate of origin
vi. Certificate of inspection, if necessary
vii. 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, allowing entrance to 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 house. 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.