Documents For Import Customs Clearance

A. Essential Documents

(i) Invoice.

This should be preferably bank attested.

(ii) Packing List.

The Packing List must be box wise that facilitates customs examination.

(iii) Duly Endorsed B/L for Sea Shipments.

Duly endorsed means that the B/L must be signed and stamped on the reversed by the consignee. If the

consignee is ‘To Order’ then the B/L should be endorsed on the reverse by the supplier and also endorsed

by the party that has been in whose favour an endorsement be given by the supplier.

Duly endorsed B/L is surrendered to the Shipping Line or it’s agent and a Delivery Order is obtained.

Delivery Order is a letter from the Shipping Line addressed to customs for handing over the goods to the

party in whose favour the D.O. has been made.

In case original B/L is not received, then D.O. can be obtained from the Shipping Line by furnishing to the

Shipping Line an Indemnity Bond / Bank Guarantee as required by the Shipping Line.

(iv) Air Way Bill for Air Shipments.

(v) Customs Declaration Forms duly signed and stamped by the importer:

4 copies of B/E Declaration and 2 copies of GATT Valuation Declaration are required.

B. Supporting Documents

In addition to the above essential documents, the following supporting documents may also be required for facilitating faster clearance.

(i) Copy of Proforma Invoice(ii) Copy of Purchase Order(iii) Copy of Order Confirmation (iv) Copy of Letter of Credit

The above documents are required for justification of value.

(v) Manufacture’s Invoice(vi) Manufacture’s Price-list

If the customs authorities are not satisfied with Purchase Order / L/C documents, then the above documents

may be called for justification of import value.

(viii) Catalogue / Technical Write-Up

These are essentially required for machinery / parts import.

(viii) Chemical Literature / Write Up / Specifications.

These are essentially required for chemicals / plastics / rubber and similar items.

(ix) Industrial Licence

Required to prove actual user condition.

(x) Certificate of Origin

Required for valuation aspects or in case any preferential area duty is being claimed.

(xi) Chartered Engineer Certificate

Required for second hand machinery imports. The Chartered Engineer Certificate must specify the value

of machinery in the year of manufacture, the reconditioning cost, the year of manufacture, the residual life,

operational worthiness, and the fair value of the machinery imported.

Import Values relevant for Customs Clearance

1. Ex-Works :

This is the value of the goods at the factory gate at origin.

2. FOB (Free On Board) :

This value is the ex-works value + charges at origin upto loaded on vessel / aircraft. Such origin

charges include local transportation, customs clearance charges and handling at origin port /

airport.

3. C & F (Cost & Freight) :

This value comprises of the FOB value + air / ocean freight upto the airport / port of discharge.

4. CIF (Cost Insurance Freight) :

This value comprises of the FOB value + air / ocean freight upto the airport / port of discharge +

insurance cost for insurance the goods upto the country of destination.

If insurance cost is not available, standard insurance charges equivalent of 1.125% of FOB value

are considered for calculation of CIF price.

If the air freight amount is not ascertainable or if the actual air freight is more than 20% of FOB,

then 20% of FOB is considered as the air freight for calculation of CIF value.

5. Assessable Value :

The customs duty in India is charged on the assessable value which is 1.01 CIF value. A

standardized 1% landing charges are added to the CIF value arriving at the assessable value.

If any local commissions are payable by the importer to the intending agent, such commissions are

also to be added for arriving at the assessable value. Assessable value is calculated after

converting the foreign currency CIF value into Indian Rupee at the current customs notified

exchange rate.

Information on Import Customs Duties and their Calculation

A. Basic Customs Duty

This duty is leviable on the assessable value. The basic customs duty rates 0%, 15%,

25% or 35%. The duty rates are dependant upon the tariffs classification of the it3ems of

import. The applicable duty rate would be arrived at after taking into account the

relevant notification applicable to the chapter under which the item has been classified.

B. Additional Duty or Counter Veiling Duty

This duty is leviable on the assessable value + basic customs duties. The duty rate is

equivalent to the Central Excise Duty leviable on the similar item manufactured in India.

The duty rate is therefore ascertained from the Central Excise Tariff. Generally the CVD

rate is 16%. However, the applicable duty rate would be arrived at after considering the

notification applicable to the relevant chapter under which the item has been classified.

In certain cases (mostly consumable goods) the CVD is chargeable on Minimum Retail

Price (MRP). In such cases the importer has to declare the MRP item and the CVD is

chargeable on MRP and not on assessable value plus basic customs duty.

C. Special Additional Duty

This is a duty chargeable in lieu of sales tax and the general rate is 4%. Specific

exemptions notifications may also be applicable. The special additional duty is leviable

on assessable value + basic customs duty + CVD.

The Gross Duty calculation for different duty rates is as follows:-

DUTIES

BCD CVD SAD Gross Duty on

Assessable Value

Gross Duty on

CIF value

General idea on ocean transit times for shipments arriving into India from:

UK - 21 days ~ 25 daysJapan - 16 days ~ 20 daysUSA - 35 days ~ 45 daysDubai - 3 days ~ 5 daysSingapore - 7 days ~ 10 days

Note:- For checking the ETA of the vessel, check the on board B/L date and check the above transit time into consideration.

Import Customs Clearance Procedure

Import documents scrutiny by CHA

Completion of deficiencies in documents by importer

B/E Preparation

Submission of B/E through Customs EDI

Check List obtain from Customs EDI

Check List Confirmation by CHA