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Unit 6: Custom Clearance of Import and Export Cargo

The main purposes for which customs act has been enacted are as: Notes
1. Regulating the exports and imports of the country in a free and transparent manner
according to the laws of the land and controlling illegal trade in drugs and narcotics.

2. Protecting Indian industry from dumping of goods from other countries by imposing
antidumping duties and countervailing duties on such country products.
3. Collecting revenue by imposing customs duty on various exportable and importable
items from the country so as to meet the developmental requirement of other agencies.
In addition to the above, Indian Customs has been assigned many other activities. Important
among them are as follows:
1. Collecting the customs duties as per the Customs Tariff Act, 1975 on exports and imports
by following procedure under Customs Act, 1962;

2. Ensuring that the various provisions of the Customs Act 1962 are enforced which has been
enacted for the sake of regulating exports and imports of products and services, travel
baggage, postal and courier articles and rules for arrival and departure of vessels, air
crafts, etc.
3. Ensuring that Customs officials are able to discharge their duties and function under the
legal provisions of various customs related Acts for the prohibitions and restrictions on
exports and imports which are announced by government of India from time to time.

4. Ensuring that there shall be no drug trafficking, smuggling or narcotics and taking all
preventive measures to control them.
5. Processing the facilitating the baggage clearance for international passengers.

6.1 Procedure for Clearance of Imports Cargo

The various procedure for clearnace of import cargo are discussed below:

6.1.1 Bill of Entry – Cargo Declaration

1. Intimation to Customs through IGM: When goods are imported they are subject to certain
duty to be imposed as per customs rules and regulations. The importer has to inform to
customs department through Bill of Entry about the arrival of vessel/aircraft. He can
submit such bill of entry thirty days in advance so as to process the customs clearance
works speedily. As soon as the ship reaches the port, the importer or his CHA has to
submit an IGM (Import General Manifest) to the customs official. No cargo can be unloaded
or moved without the permission of customs from the port/air cargo station.
2. Transshipment Allowed: In cases where the importer is located at far flung places such as
Delhi or Ludhiana, the transshipment of cargo is allowed without payment of duty by
CHA. The importer has to submit the bill of entry meant for transshipment to the Customs,
which allows transit without payment of duty.
In such cases, the importer need not follow the detailed customs procedure. Rather, a
simple transshipment procedure is to be followed by the carrier of cargo as well as the
customs departments. The importer also needs to comply with the simple procedure for
the customs clearance formalities after the arrival of the goods at the customs station.
Under the provisions of Customs Act, especially under Section 52 to 56, the importer is
allowed for transshipment and customs assessment and payment of duty has to be
completed at importer nearby ICD/CFS stations or customs house.

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