Page 163 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws Gopika Juneja, Lovely Professional University

Notes Unit 10: Clearance Procedure of Imported and
Exported Goods

CONTENTS
Objectives

Introduction
10.1 Procedure for Clearance of Imported Goods
10.2 Clearance Procedure of Exported Goods
10.3 Summary

10.4 Keywords
10.5 Review Questions
10.6 Further Readings

Objectives

After studying this unit, you should be able to:

 Know about Procedure for Clearance of Imported Goods
 Understand clearance of Exported Goods.
 Know processing of Shipping Bill

Introduction

In this chapter we will discuss about clearance procedure of imported and Exported Goods. In
terms of the Customs Act, 1962 read with the relevant rules and regulations, imported and
export goods are subjected to certain legal and procedural formalities before being permitted
clearance by Customs. These requirements include the submission of prescribed documents and
adherence to laid down procedures before an appropriate legal order is given by the proper
officer permitting the importer/exporter to clear the goods for the intended purpose.

10.1 Procedure for Clearance of Imported Goods

Import Procedure- Bill of Entry

1. Goods imported in a vessel/aircraft attract customs duty and unless these are not meant for
customs clearance at the port/airport of arrival by particular vessel/aircraft and are intended
for transit by the same vessel/aircraft or transshipment to another customs station or to any
place outside India, detailed customs clearance formalities of the landed goods have to be
followed by the importers. In regard to the transit goods, so long as these are mentioned in
import report/IGM for transit to any place outside India, Customs allows transit without payment
of duty. Similarly for goods brought in by particular vessel aircraft for transshipment to another
customs station detailed customs clearance formalities at the port/airport of landing are not
prescribed and simple transshipment procedure has to be followed by the carrier and the
concerned agencies. The customs clearance formalities have to be complied with by the importer
after arrival of the goods at the other customs station. There could also be cases of transshipment

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