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Most Important Documents Required For Customs Clearance in 2020

Before we order anything, we must know what are the documents required to be submitted for Customs clearance. In simple words, we can say that “Documents Required For Customs Clearance”.

Now the world has shrunk to just a click or phone call away and we can easily start importing articles, goods, machinery and much more from other countries without the knowledge of Customs Clearance in India. In my view, we should study in details about the documents required for Customs Clearnace.

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Documents Required For Customs Clearance-Naveen Associates

Documents Required For Customs Clearance in India

For any goods being imported from other country, we need to submit some mandatory documents required to the customs officials and in this blog, I have mentioned all the documents required for Customs Clearance in india.

First of all, let me clarify: Documents required for customs clearance under all products are not the same. However, we can discuss mandatory documents required for customs clearance for importing countries.

We shall discuss with some general information on Import and Export documents required for customs clearance from which you can have a common idea on the subject. I hope, this information will helps you a lot to know about the mandatory documents required for import and export.

Since various types of commodities are imported from different countries, a complete list of documents reuired for customs clearance procedures cannot be provided. Moreover, different countries have their policies to turn different procedures and formalities for import clearance.

Each product under import and export is classified under a code number accepted globally which is called the Indian Trade Clarification (ITC) number.

Different countries have bilateral import-export relations in terms of agreements between their Governments and our Government. Imports and exports from those countries may or may not have exemptions on documentation and filing for export and import clearance.
Documents Required For Customs Clearance-Naveen Associates

Customs duty is also levied on these bilateral trade agreements and relationships. For example, customs duty on personal use items purchase in NIL for Nepal, Bhutan, and Myanmar, but duty is chargeable for other countries.

There are certain legal and specific documents required to be submitted at Custom Department for customs clearance and certain procedures are mentioned to certain articles as well as goods. To start with detailed knowledge of customs clearance in India, the following are common documents required to clear your goods from Custom Deptt.

Export-Import Documents: Documetns Required for Customs Clearance in India

To send or receive of your shipments, the following Import Export documentation is required:-

Table of Contents :-

1. Bill of Entry

2. Commercial Invoice.

3 Packing List

4. Bill of Lading or Airway Bill

5. Import License

6. Insurance Certificate

7. Technical Literature or Write up for Specific Goods

8. Purchase Order or Letter of Credit

9. Industrial License

10. Registration cum Membership Certificate (RCMC)

11. Test Report/ Inspection Certificate or Certificate of Origin

12. General Agreement on Tariff and Trade (GATT) Declaration

What is the import procedure in India?

In the last decade, India has progressively replaced licensing and discretionary controls over imports with deregulating and easier import procedures. Most heavy things fall at intervals the scope of India’s EXIM Policy regulation of Open General License (OGL).

This means that they’re deemed to be freely importable while not restrictions and while not a license, except to the extent that they’re regulated by the provisions of the Policy or any other law.

Import licensing requirements

Imports of goods (Not covered in Open General License) are regulated by three categories division i.e. Illegal or prohibited items, Restricted things requiring import license, and the third by “canalized” items importable only by the government.

The following area unit selected import certificate issuance authorities (ICIA):

The Department of Electronics covers imports related to computer and Information Technologies related items and the Department of Industrial Policy and Promotion for organized sector firms except for the import of computers and Information Technologies related items.

Defense-related items are procured by the Ministry of Defense. The Director-General of Foreign Trade for small-scale industries for their related items.

Capital merchandise will be foreign with a license below the Export Promotion Capital merchandise set up (EPCG) at reduced rates of duty, subject to the fulfillment of a time-bound export obligation.

The EPGC set up currently applies to all or any trade sectors. It is conjointly applicable to all or any capital merchandise with none threshold limits, on payment of a 5 p.c. custom duty charges.

For the particular user, a non-transferable advance license is one such license. For those that don’t want to travel through the advance-licensing route, a post-export duty-free replenishment certificate is available.

Advance Authorization

An advanced license is issued to permit the duty-free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). Also, fuel, oil, energy, catalysts, etc. that area unit consumed throughout their use to get the export product, may also be allowed under the plan.

The raw materials/inputs area unit allowed in terms of normal Input-Output Norms (SION) or self-declared norms of the bourgeois.

Physical exports

An advance license could also be issued for physical exports to a manufacturer bourgeois or businessperson bourgeois tied to supporting manufacturer(s) for import of inputs needed for the export product.

Intermediate supplies

An advance license could also be issued for an intermediate provider to a manufacturer- bourgeois for the import of inputs needed within the manufacture of products to be provided to the last word exporter/deemed exporter holding another Advance License.

Deemed exports

An advance license may be issued for deemed exports for the import of inputs needed within the manufacture of products. Such provisions are mentioned in the FTP Policy in April 2015 – March 2020. An advanced license for deemed exports may be availed by the sub-contractor to such a project provided the name of the sub-contractor(s) seems within the main contract.

Such a license for deemed export may be issued for provides created to international organization Organizations.

What are the imported products in India?

We are importing 7500 types of goods all around the world and our export, and it  is increasing YoY basis. India imported US$507.6 billion worth of goods from around the globe in 2018-19, which is up by 10.5% since 2014-15 and up by 14.3% from the financial year 2017 to 2018.

From a continental perspective, 60.3% of India’s total imports by the worth in 2018 were purchased from Asian countries.

European trade partners equipped 15.8% essential purchased by the Asian nation. 8.2% worth originated from Africa with another 8.1% coming from exporters in North America.

Smaller percentages arrived in Asian nations from the geographic region (4.2%) excluding North American country however together with the Caribbean, and Oceania (2.9%) led by Australia.

Given India’s population of 1.297 billion people, it’s total $507.6 billion spent on 2018 imports translates to roughly $400 in yearly product demand from every person living in the vast South Asian country.

India’s Top 10 Imports

The following product teams represent the best dollar worth in India’s import purchases throughout 2018. Also shown is that the share of every product class represents in terms of overall imports into the Asian nations.

1. Mineral Fuels including Crude oil: US$168.6 billion which is 33.2% of total imports of India.

India imports thirty-fifth of its crude oil needs from foreign. Petroleum comes from Persia, Kuwait, Asian country and the Kingdom of Saudi Arabia. In 2004-05, petroleum worth Rs. 134095 crore was imported.

2. Gems, precious metals: $65 billion (12.8%)

Precious stones are Germs, Ruby and Sapphire, etc. These area units foreign from the European nations and America and when finishing, these are exported. In 2004-05, stones worth Rs. 42385 crore were imported.

3. Electrical machinery, equipment: $52.4 billion (10.3%)

4. Machinery including computers: $43.2 billion (8.5%)

To meet the requirement of manufacture, the Asian nation imports machines on an oversized scale. We import machinery and computer-related goods from America, England, Germany, Japan, and Russia. In 2004-05 machines worth Rs. 37335 crore were imported.

5. Organic chemicals: $22.6 billion (4.4%)

6. Plastics, plastic articles: $15.2 billion (3%)

Plastic is foreign from the USA, Britain and Japan Plastic value Rs. 6290 crore was imported in 2004-05.

7. Iron, steel: $12 billion (2.4%)

India continues to be dependent on the production of iron and steel. It imports steel every year. It is foreign from the USA, UK, European nation and France. In 2004-05, steel was imported worth Rs. 11675 crore.

8. Animal/vegetable fats, oils, waxes: $10.2 billion (2%)

9. Optical, technical, medical apparatus: $9.5 billion (1.9%)

10. Inorganic chemicals: $7.3 billion (1.4%)

Chemical fertilizers:

To increase the productivity of the land fertilizer area unit used. India imports a great number of chemical fertilizers from the U.S.A., Russia, and E.U. In 2004-05. Chemicals fertilizers worth Rs. 5140 crore were imported.

India’s prime ten imports accounted for four-fifths (80%) of the general worth of its product purchases from alternative countries.

Imported mineral fuels together with oil had the fastest-growing increase in worth among India’s prime ten import classes, up to thirty-seventh percent on Year on Year basis.

In second place for increasing import purchases was the inorganic chemicals class via a twenty-nine. 8% improvement, trailed by the 25.6% increase for organic chemicals and the 20.1% gain for machinery including computers.

The two declining categories for India’s imports were animal and vegetable fats, oils and waxes (down -14.4%) and gems and precious metals (down -12.6%).

Note that the results listed above are at the categorized two-digit Harmonized Tariff System. For an additional careful read of foreign merchandise at the four-digit HTS code level, see the section Searchable List of India’s Most Valuable Import Products further down near the bottom of this text or underneath the adjacent product folder tabs.

What are the documents required for Export-Import License?

What is the IEC code?

IEC code stands for Import Export Code. It is a ten-digit license code needed by firms or Companies or people to start associated with Import-Export Business in India. It is also necessary for availing benefits under schemes like MEIS and SEIS.

Applicants may apply on the website of The Director-General of Foreign Trade (DGFT), Department of Commerce, Government of India to grant this Import Export code and the department issues the certificate after a thorough analysis of their application.

How to Apply For IEC code?

There are specific laws ordered down by the Government of India that require to be followed and furnishing with proper documents. Here could be a transient rehearsal of documents needed alongside the IEC application.

First, transfer the IEC form online from the Director-General of Foreign Trade web site. The application form should be ANF 2A. You can also fill out the form online now.

You will need the subsequent list of documents as per the instructions:-

1. Current Bank Account Details of the firm or the Company.

2. Self-attested copy of the Permanent Account Number (PAN) card favoring firm/company.

3.  Banker’s Certificate or Banking details of your firm/company.

4.  Passport size photograph (2 copies) of the applicant duly attested by the banker of the applicant.

5.  In case of physical submission, you have to submit a covering letter on the letterhead of the applicant’s firm or company to request for the issue of the IEC certificate.

These documents can facilitate to justify your identity as a person or a non-public company to urge the IEC code.

Next, submit the shape associated above-listed documents with an application fee of Rs. 250 /-.

When applying on-line, transfer the scanned copies of all documents associated with build an electronic (online) payment for the applying fee to the Director-General of Foreign Trade.

Whereas, within the offline application, submit a demand draft of Rs. 250/-, payable to the Regional Office of DGFT. Following this, send the certificate and receipt of the demand draft along with copies of documents in person to the nearest DGFT office.

Also, attach a self-addressed envelope along with Rs.25/- postal stamp for delivery of the IEC certificate through registered post or challan/DD of Rs.100/- for speed post. The physical application ought to reach the DGFT workplace among fifteen days of the web submission of the shape.

Top 100 Indian Import Items?

Searchable List of India’s Most Valuable Import Products

At the additional granular four-digit HTS code level, India’s top import products are crude oil followed by gold, diamonds, coal, petroleum gas then mobile phones.

List of top 100 of India’s most in-demand imported goods during. Shown beside each product label is its total import value then the percentage increase or decrease since 2017.

Rank India’s Import Product 2018 Value in USD Change
1 Crude oil $114.5 billion +39.6%
2 Gold (unwrought) $31.8 billion -12%
3 Diamonds (unmounted/unset) $26.7 billion -2.2%
4 Coal, solid fuels made from coal $24.6 billion +22.5%
5 Petroleum gases $19 billion +45%
6 Phone system devices including Smartphone’s $18.8 billion -8.9%
7 Integrated circuits/micro assemblies $7.1 billion +239.1%
8 Computers, optical readers $6.3 billion +13.1%
9 Processed petroleum oils $5.7 billion +48.7%
10 Palm oil $5.5 billion -18.8%
11 Automobile parts/accessories $4.8 billion +10.4%
12 Silver (unwrought) $3.8 billion +28.4%
13 Solar power diodes/semi-conductors $3.6 billion -29.7%
14 Iron or steel scrap $3.4 billion +38.8%
15 Light vessels, fire boats, floating docks $3.2 billion +53.2%
16 Fertilizer mixes $3.1 billion +78.5%
17 Turbo-jets $3 billion +32.9%
18 Cyclic hydrocarbons $2.9 billion +30.8%
19 Copper ores, concentrates $2.7 billion -31%
20 Ethylene polymers $2.5 billion -6.7%
21 Aluminum waste, scrap $2.5 billion +34.6%
22 Vinyl chloride polymers $2.3 billion +16%
23 Soya-bean oil $2.3 billion -17.3%
24 Acyclic alcohols $2.3 billion +0.01%
25 Miscellaneous machinery $2.2 billion +38.6%
26 Petroleum oil residues $2.2 billion -2.5%
27 Electrical converters/power units $2.1 billion +15.6%
28 TV receivers/monitors/projectors $2 billion +20.6%
29 Heterocyclic’s, nucleic acids $2 billion +18.1%
30 Polyacetal /ether/carbonates $1.9 billion +33.4%
31 Sun/safflower/cotton-seed oil $1.9 billion +2.8%
32 Phosphoric/Poly Phosphoric acids $1.9 billion +11.1%
33 Air or vacuum pumps $1.8 billion +19.2%
34 Coke, semi-coke $1.8 billion +52.6%
35 Copper wire $1.8 billion +25.9%
36 Coconuts, Brazil nuts, cashews $1.7 billion +16.8%
37 Electro-medical equip (e.g. xrays) $1.7 billion +14.4%
38 Electric storage batteries $1.7 billion +76.3%
39 TV receiver/transmit/digital cameras $1.6 billion +66.1%
40 Lower-voltage switches, fuses $1.6 billion +23.5%
41 Saturated acyclic mono acids $1.6 billion +46%
42 Computer parts, accessories $1.6 billion +12.9%
43 Nitrogenous fertilizers $1.6 billion +10.3%
44 Printing machinery $1.5 billion +11.2%
45 Unrecorded sound media $1.5 billion -19.9%
46 Flat-rolled other alloy steel products $1.5 billion +0.7%
47 Hot-rolled iron or non-alloy steel products $1.5 billion +7.1%
48 Machinery parts $1.4 billion +28.1%
49 Antibiotics $1.4 billion +31.4%
50 Aluminum oxide/hydroxide $1.4 billion +69.6%
51 Taps, valves, similar appliances $1.4 billion +26.6%
52 Packaged insecticides/fungicides/ herbicides $1.3 billion +7%
53 Paper/paperboard waste, scrap $1.3 billion +66.5%
54 Air conditioners $1.3 billion +26.3%
55 Physical/chemical analysis tools $1.3 billion +8.9%
56 TV/radio/radar device parts $1.3 billion -13.7%
57 Propylene/olefin polymers $1.3 billion +12.9%
58 Other measuring/testing machines $1.3 billion +25.5%
59 Piston engine parts $1.2 billion +18.6%
60 Ball, roller bearings $1.2 billion +28.2%
61 Transmission shafts, gears, clutches $1.2 billion +19.8%
62 Potassic fertilizers $1.2 billion +10.5%
63 Poly carboxylic acids $1.2 billion +50.6%
64 Flat-rolled iron or non-alloy steel products (plated/coated) $1.2 billion +7.8%
65 Liquid pumps and elevators $1.2 billion +24.8%
66 Plastic plates, sheets, film, tape, strips $1.1 billion +51.5%
67 Synthetic rubber $1.1 billion +12.4%
68 Rough wood $1.1 billion -7.6%
69 Insulated wire/cable $1.1 billion +16%
70 Aircraft, spacecraft $1.1 billion -58.6%
71 Miscellaneous nuts $1.1 billion +2.8%
72 Acyclic hydrocarbons $1.1 billion +54.8%
73 Iron ferroalloys $1.1 billion +13%
74 Precious/semi-precious stones (unstrung) $1.1 billion -39.5%
75 Medication mixes in dosage $1.1 billion +3.3%
76 Dried shelled vegetables $1.1 billion -73%
77 Centrifuges, filters and purifiers $1.1 billion +24.4%
78 Iron ores, concentrates $1 billion +124.9%
79 Rubber/plastic article making machines $1 billion +4.6%
80 Electric motors, generators $1 billion +38.7%
81 Iron and steel screws, bolts, nuts, washers $951.7 million +17.8%
82 Breaker vessels $937.8 million +17.7%
83 Natural rubber $915.3 million +21%
84 Regulate/control instruments $914.5 million +13%
85 Ammonia $910 million +28.6%
86 Newsprint (rolls or sheets) $909.4 million +7.9%
87 Miscellaneous plastic items $909.3 million +1.7%
88 Iron or steel tubes, pipes $904.1 million +82.3%
89 Copper waste, scrap $895.4 million +12.9%
90 Piston engines $895 million +27.5%
91 Microphones/headphones/amps $893.7 million +29.6%
92 Chemical industry products/residuals $878.9 million +15%
93 Unrefined copper $849.3 million -3.6%
94 Electric circuit parts, fuses, switches $847.8 million +14.7%
95 Hydrocarbon derivatives $846.2 million +15.2%
96 Unsaturated acyclic mono acids $842.5 million +22.1%
97 Miscellaneous iron or steel items $837.1 million +29.6%
98 Amine-function compounds $825 million +29.6%
99 Other coloring matter, luminophores $807 million +14.7%
100 Phenols/phenol-alcohols $794.6 million +39.4%

These 100 imported goods were worth a subtotal of US$268 billion or 58.9% by value for all products imported into India during 2018-19.

What is Export Documents Checklist?

1. Bill of Entry

2. Commercial Invoice.

3 Packing List

4. Bill of Lading or Airway Bill

5. Import License: –

6. Insurance Certificate

7. Technical Literature or Write up for Specific Goods

8. Purchase Order or Letter of Credit

9. Industrial License

10. Registration cum Membership Certificate (RCMC)

11. Test Report or Inspection Certificate

12. General Agreement on Tariff and Trade (GATT) Declaration

Download Import Export Documents Pdf, click here?

Documents Required For Customs Clearance in India

1. Bill of Entry:-

Bill of Entry is also one of the most important documents required for Customs Clearance. This document is a legal document that is filed by Custom House Agent (CHA) or Importer duly stamped and signed. It is regulated by Reserve Bank and Custom Deptt of the importer country.
Documents Required For Customs Clearance : Bill of Entry

Most important about the Bill of Entry is that it must be filed within 30 days of the arrival of your goods/product at a custom location.

On submission of Bill of Entry along with customs clearance documents, customs officer assesses examination of imported goods/product. Custom Department confirms the exact value of customs duty as per prevailing rules and you have to pay that amount first to receive your goods.

On completion of customs documentation, “Pass out Order” is issued with the Bill of Entry. An importer or his authorized representative (Customs House Agent) may collect the imported goods on paying necessary import charges to the Customs Department.

2. Commercial Invoice.

Commercial Invoice is also amoung the important documents required for Customs Clearance. Commercial Invoice is the second important document in business transactions. It is required for value assessment of imported goods by the concerned custom official. Such an invoice is presented by the importer at Customs Office. The assessment of value is calculated on terms and prices mentioned in Commercial Invoice.
Documents Required For Customs Clearance-Commercial Invoice

Concerned Appraising Office at Custom Department checks the value mentioned in the Invoice and its calculation is done at the current market price of that articles or goods.

Appraising Officer of Customs Department prevents fraudulent activities being done by importer or exporter and confirms about over-invoicing or under-invoicing. Appraising Officer calculates duty as per market price and charges custom duty as per Government norms.

3. Packing List

The Invoice cum Packing List is a detailed document similar to the commercial invoice but it is without rate and price information. It must include the following: Invoice Number, Quantity and Outline of the Products, the load of the products, Number of packages, and shipping marks and numbers.

A copy of the Invoice cum Packing List is usually attached to the shipment itself and another copy is shipped on to the consignee to help in checking the shipment when received. Although not required altogether transactions, it’s required by some countries and a few buyers. This document is ready by the exporter and addressed to the importer, the carrier and therefore the import customs clearance.

4. Bill of Lading or Airway Bill
Documents Required For Customs Clearance-Airway Bill

Bill of Lading is also abbreviated as “BL” and Airway Bill as “AWB”. Such bills are the third important document that is required to be submitted at the Customs Department for the clearing of imported goods.

Bill of Lading is prepared when your consignment is shipped and the Airway bill is prepared under air shipment.

It is a carrier document and submitted with customs for import customs clearance.

BL or AWB is issued by the carrier providing all necessary details of cargo with terms of delivery.
Documents Required For Customs Clearance-Import Export Certificate

5. Import Export License (IEC Licence): –

Import Export Licence is one amoung the major documents required for Customs Clearance.Import License is the fourth compulsory document to be submitted for import customs clearance procedures and formalities under specific products.

If you are importing any item for your personal use, then you need not show your import license to customs authorities.

If you are importing quantities for commercial purposes, this license is mandatory.

Government issue necessary guidelines for importing specific goods and regulates their guidelines from time to time.

To check the procedures are followed, the Government insists to submit an import license as mandatory documents for customs clearance.

6. Insurance Certificate
Documents Required For Customs Clearance-Insurance Certificate

The insurance certificate is the fifth mandatory document for import customs clearance procedures. Insurance of the goods is required as a supporting document against the importer’s declaration on terms of delivery.

With the help of an Insurance Certificate, customs authorities verify whether the selling price is including insurance of the goods or excluding insurance. An insurance certificate is required to be submitted to find out the assessable value and helps in the calculation of the import duty amount of the goods.

7. Technical Literature or Write up for Specific Goods

For calculation of import duty by customs officials, technical literature or write up /pamphlets or any other similar documents help in the speedy clearing process of your goods. In many cases, customs officials ask about such documents. Non-availability in producing literature documents delay in the clearing process.

In many cases, officials ask to produce these documents and hold clearing procedures. While importing unique/latest technology goods, it is recommended to ask such documents from the exporter. By submitting such document, customs official derives an exact market value of the machinery or goods and easy for value assessment.

8. Purchase Order or Letter of Credit

Purchase Order (PO) is a document prepared for the sender party before importing any goods or products. This document is not only prepared for overseas purchases but also prepared for in-nation purchases. Rates, amount, quantity, payment terms and conditions, and many other related specifications are mentioned properly in any PO.

This document is also required for import customs clearance. With the help of a purchase order (PO), customs officials can confirm on value assessment of the product. This document is written proof for both importer and exporter for financial transactions.

9. Industrial License

Though an industrial license is not mandatory, it is a helping document for the importer. The government may have given some benefit or liberty to any particular product or goods. With the help of these documents, the importer can claim benefits on customs duty.

To avail that benefit, an industrial license copy is required to be submitted with customs officials as import clearance documents.
Documents Required For Customs Clearance-Registeration cum Membership Certificate

10. Registration cum Membership Certificate (RCMC)

To avail duty exemption from Government agencies under specific goods import, RCM Certificate is required to be submitted to the customs official. Importer’s or registered agencies/institutions have to get their registration done for Membership certificate.

On submitting this certificate, some benefit is given in customs duty. This is also an added advantage to avail custom duty exemption.

11. Test Report/Certificate of Origin

Test Report with Certificate of Origin is also amoung additional documents required for Customs Clearance. To assess the value of imported products or goods, customs officials may send your product to Government Authorized Laboratories for necessary Lab Reports. On receiving that Lab Report, the customs officials complete the appraisement of that goods or product. In many countries, a Certificate of Origin is also a mandaotry document required.

In this way, this Lab Report automatically becomes an important document for customs clearance.
Documents Required For Customs Clearance-GATT Declaration

12. General Agreement on Tariff and Trade (GATT) Declaration

An importer needs to file a declaration under the General Agreement on Tariff and Trade (GATT) as per the Government of India guidelines.

GATT declaration is also submitted with other customs clearance documents to the customs officials.

Import Export license and its procedure and documentation in PDF format

Download Export documentation pdf

Export documents pdf.

Download Import documents pdf.

I have listed all the documents for customs clearance of imported goods. But the Government can change or ask some more documents as per the guidelines issued from time to time. So you should consult from Custom House Agent or Customs officials before receiving any such goods.

Preparation wins half the battle. You should keep yourself ready with the above documents prepared if you are expected to receive any consignment. You may also call us at +91-9319418930 & +91-7827285782 as customs clearance agent or you may also write at the author for your customs clearance in Delhi.

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