Custom Clearance Procedure In India

Each country has its own set of rules on import and export while goods cross the borders. This is one of the largest sources of income for the countries which also helps the economy, citizens, and the environment. However, many shippers get confused as to the role of a custom house agent. To answer this, a customs clearance agent in Delhi undergoes 4 steps to complete your shipment across the country.

Jay Kay Logistics is one of the top five customs clearing agents of Delhi that helps their customers in easy shipping of their goods. Moreover, they provide quality services at affordable prices. All the customs paperwork, saving shipping couriers, pre-pay import taxes and duties, etc., are provided for your shipping from customs to the customer. 

1. Examination of Customs Paperwork by Customs

At first, when you start the transportation of your shipment across the country, you need to complete all the documents & paperwork. These documents are very important and should be accurate for an easy custom clearance procedure. They specify the details regarding the shipment, and the shipping label & commercial invoice should have clear information. The commercial invoice here is a mandatory document as it involves contact information of the receiver, shipper, and the airway bill number & export date. 

2. Assessment of Import Taxes and Duties Through Customs Paperwork 

The custom clearance charges usually vary based on the type of goods, their value, and the laws of tax duty in the specific country. Import duties on goods are evaluated if they exceed the minimum value or minimum threshold on imported goods. Custom clearance procedure agents are well-aware of all the required information about import taxes, thereby ensuring secure completion of customs.

3. Requesting Payment for Taxes and Duties

Custom clearance agents at Jay Kay Logistics are experienced and know which step needs to be done and when. Also, these agents ask their customers to pay for duties or taxes wherever applicable. Such a case often arises when the shipment crosses a minimum threshold and the customs assure that the taxes are paid. Moreover, there is a certain type of restricted goods that needs to pay taxes irrespective of their value.

Here, Delivery Duty Unpaid (DDU) and Delivery Duty Paid (DDP) come into the role. DDP refers to the deduction of taxes on imported goods. There are plenty of courier services that process the payment on behalf of their customs brokers. DDP means the inclusion of import fees while paying the shipping charges, and it’s reflected on the shipping label. In simple terms, shipping charges include import fees and this is available on the shipping label. DDP is considered the best method to ensure a safe custom clearance procedure. 

DDU refers to unpaid import taxes and duties. Here, a customs clearance agent in Delhi will process your shipment to a customs broker who collects the taxes from you. Custom brokers act as a middleman who facilitates the entire process. However, their fees may be expensive due to brokerage, storage, and late payment.

4. Completion of the Process after Duties are Paid

When a custom clearance agent completes the process of customs, the transport service takes your shipment and delivers it to the destination. In some cases, the shipment does not surpass the border or gets stuck before living in the area due to faulty papers. 

Conclusively, custom clearing services are a mandatory task that should be done by every shipper for smooth transportation of goods. The shippers should make sure to have all the necessary documents required for assessment during the bill of entry. Thus, to avoid any error or mistake, hiring a customs clearance agent in India can benefit you in your shipment while they process all the steps involved in customs.