Customs clearance is a necessary step for any goods entering or leaving a country. It ensures that shipments comply with the country’s rules and regulations. The process usually involves submitting a customs declaration, often prepared by a licensed customs broker, which provides important details about the goods, such as their type, value, and origin.

If the declaration meets the requirements of the customs authorities, it is accepted, and the goods are cleared. After paying all the relevant duties and taxes, the shipment can legally cross the border.

In case the statement is incomplete or needs clarification, authorities may request additional documents needed for customs clearance or inspect the goods. In such cases, the shipment is held until all necessary documents are in order, ensuring compliance and a smooth transit.

• Proforma Invoice: It is the initial invoice issued by the exporter before the sale is finalised. It outlines the details of the goods, pricing, and trade terms. This document helps both the buyer and exporter confirm the transaction specifics, facilitating smoother negotiations and planning.
• Customs Packing List: This contains detailed information about how the goods are packed, including weight, dimensions, and the number of packages. Customs authorities use this document to verify the shipment’s accuracy and to calculate duties appropriately. It also helps in efficient handling at ports.
• Country of Origin Certificate (COO): This certifies the manufacturing origin of the goods. Many importing countries require this document to qualify for preferential tariffs or meet specific trade agreement conditions, thus reducing customs duties.
• Customs Packing List: A commercial invoice is a final invoice that includes comprehensive details of the sale, such as product descriptions, unit price, total price, and payment terms. Customs officials use it to value the goods for taxation and duty assessment.
• Shipping Bill: The shipping bill is a key export document, acting as an application to customs authorities for clearance. It lists the goods being exported and contains crucial shipment details, enabling customs to authorise the export without delay.
• Bill of Lading or Airway Bill: These documents serve as proof that the goods have been shipped. It also acts as a title document representing ownership of the cargo, facilitating the transfer and delivery of goods.
• Bill of Sight: A bill of sight is sometimes used when detailed product information is unavailable at shipment time. This document allows temporary customs clearance while the complete details are provided later.
• Letter of Credit (LC): This is a financial document issued by the buyer’s bank guaranteeing payment to the exporter once shipment conditions are met. This reduces payment risk.
• Bill of Exchange: The bill of exchange is used to claim payment against the LC from the buyer’s bank, functioning as a formal demand for payment.
• Export License: This is mandatory for specific restricted goods. It ensures that the goods comply with government regulations before being exported.
• Warehouse Receipt: This confirms that goods are stored in a customs-approved warehouse, often used if duty payments are deferred.
• Health Certificates: The health certificates are needed for certain food and pharmaceuticals, certifying compliance with the importing country’s health and safety regulations.

• Bill of Entry: This is considered one of the most important documents required for customs clearance for importing goods. This is filed by the importer or their agent, and provides all key details about the shipment, such as IGST, quantity, additional duties, and the total customs duty to be paid.
• Commercial Invoice cum Packing List: Combining the invoice and packing details, this document allows customs authorities to check the shipment and ensure that goods are neither over- nor under-invoiced.
• Bill of Lading: Issued by the exporter or the shipping carrier, the bill of lading confirms that the goods have been shipped and outlines the terms of delivery. It acts as proof of shipment and is essential for the importer to take possession of the cargo.
• Import License: Certain products require government approval before import. This licence ensures the shipment complies with regulatory rules.
• Insurance Certificate: Confirms that the shipment is insured. It is also used to calculate customs duties based on the shipment’s value. Adequate insurance is always recommended to safeguard against transport risks.
• Purchase Order (PO): Outlines the terms of the sale contract and helps customs verify the value of the shipment. If the transaction involves a letter of credit, a copy must also be submitted.
• Technical Write-up or Literature: Required for specific technical or industrial goods, this document explains the specifications, features, and intended use of the items, helping customs classify and process them correctly.
• Industrial License: Necessary for restricted industrial products to ensure compliance with government regulations.
• Test Report: Confirms that certain goods, such as electronics or chemicals, meet safety and quality standards.
• RCMC (Registration cum Membership Certificate): Issued by trade promotion bodies, this certificate is needed to avail benefits under export-import government schemes.
• GATT/DGFT Declaration: Confirms compliance with World Trade Organisation (WTO) guidelines and India’s DGFT regulations.
• DEEC / DEPB / ECGC License: Licences that provide duty benefits or export incentives under government programmes, making the import process smoother and more cost-effective.

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Ignoring Trade Regulations

Each country has specific tax, licensing, packaging, and labelling rules and regulations. Non-compliance can lead to fines or shipment seizure.

Incomplete Documentation

Mistakes in applications for licences or missing documents and proofs delay customs approvals. It is necessary to always cross-verify forms and details.

Customs Clearance Issues

Many times shipments are delayed due to incorrect paperwork, and submitting accurate documents as required by the departure and destination countries is essential.

Product Classifications

Businesses need to use HS codes to classify goods. Otherwise, misclassification can lead to fines, delays, or shipment seizures.

Import Duties & Taxes

Stay updated on tariffs, duties, and tax regulations, as frequent changes can yield miscalculations, unexpected costs, or penalties. Check official updates regularly or talk to experts to stay compliant.

Work with Experts

There are customs brokers who ensure accurate paperwork and smooth clearance for import and export businesses, saving time and effort.

Use Technology

Use digital tools to simplify documentation, cut errors, and speed up customs clearance.

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1. Get a 10-digit Importer Exporter Code (IEC) from the DGFT. This is mandatory for all exporters.
2. Select the right port of shipment and appoint a licensed Customs House Agent (CHA) to handle all the formalities.
3. Prepare all the necessary documents, including the commercial invoice, packing list, shipping bill, certificate of origin, and other required papers, depending on the goods and destination.
4. Submit the shipping bill electronically via the Customs EDI system with all shipment details.
5. The customs department can physically inspect goods to verify accuracy and compliance.
6. If it is applicable, businesses must pay export duty through designated channels.
7. Once the shipment is cleared, customs issues the LEO authorising the shipment.
8. Businesses need to deliver goods to the shipping line or airline.
9. Get the lading bill or airway bill as evidence of export.

1. Importers need to have a valid Importer Exporter Code (IEC) issued by the DGFT.
2. The shipping line or airline submits the Import General Manifest (IGM) with shipment details to customs.
3. The importer or CHA files this electronically through the Customs EDI system. It helps declare goods for duty assessment.
4. The customs department determines duties based on value and HSN code. The importer pays applicable duty, IGST, and cess.
5. The customs department may inspect goods to confirm accuracy and compliance.
6. Once the documents and goods are cleared, the customs department issues this order authorising release.
7. Importers will need to collect goods from the port/airport, and must maintain proper records as per regulations.

Completing documents required for export and import is essential for smooth import and export customs clearance. Each of these documents plays a vital role, whether it is verifying product details, proving eligibility for duty exemptions, or meeting regulatory requirements. If businesses understand these obligations and ensure accuracy, they can avoid costly delays, penalties, or shipment complications.

From securing licences to submitting invoices and technical descriptions, compliance with documentation guidelines ensures smooth customs procedures and trade operations.

However, even after perfect paperwork, international trade has some risks, such as cargo damage, theft, delays, or loss in transit. Marine Insurance from TATA AIG can help. With comprehensive marine transport insurance coverage designed for importers and exporters, our online marine insurance policies help protect shipments.

Defend the business from unpredictable circumstances and trade confidently with the TATA AIG marine transit insurance policy.