Custom Clearing Process starts once the exporter satisfies all the prerequisites to export and obtains the shipping order for reserving the space in the ship. Find below the steps involved in custom clearing process for the export of goods from India:
1. Arrival of Goods at the Port
After the arrival of goods at the port, the clearing and forwarding agent submits the documents to the Custom House for further procedure. The checklist of the document includes a packing list, invoice, letter of credit, certificate of origin and other relevant documents. In addition, duty drawback and MEIS benefit if any on that particular commodity should be mentioned on the shipping bill. The checklist is uploaded to ICEGATE.
2. Generation of Shipping Bill
On receiving the required documents, the customs officer verifies the documents according to the physical quantity of goods received. He/she generates the shipping bill for export of goods from India and gives a copy to the dock appraiser.
3. Examination of Goods
The dock appraiser examines the goods according to the examination order. If the goods are found as declared in the documents, he/she generates a ‘Let Export’ order. In case of any discrepancy in the order, the goods might be sent back to the export department. Otherwise, goods are forwarded to the preventive superintendent and loaded to the assigned vessel under supervision. In such a case there will be delay in the custom clearing process for export of goods from India.
4. Loading of Goods
The clearing and forwarding agent forwards the ‘Let export’ marked bill to the steamer agent. The loading of cargo takes place under the supervision of the preventive officer. If the preventive officer is satisfied with the loading of goods on the vessel then the officer gives ‘Shipped on Board’ endorsement on the shipping bill. Besides, the commanding officer of the ship issues ‘Mate receipt’ confirming the export of goods. Custom clearing process is almost completed at this step.
5. Export General Manifest
The shipping agents are to submit shipping wise Export General Manifest to the Customs Department, both electronically and manually, within seven days from the date of sailing of the vessel.
6. Claim of Duty Drawback
Shipping Bill facilitates the exporter to claim duty drawback on the exports. The drawback branch officer processes the drawback electronically, once the exporter ascertains the status of the shipping bill and drawback claim from the query counter. The claim is credited to the exporter’s bank account after completion of the procedure.
Finally, the custom clearing process for goods is completed. GST refund is initiated after filing GSTR-1 before the 10th of the corresponding month and GSTR-3B before the 20th of corresponding month. If all figures and dates in GSTR-1, GSTR-3B and shipping bill match then the refund is initiated within 15-20 days from filing of GSTR-3B. For exporters benefit we have given complete details of how to claim GST Refund in a separate article.