Custom Clearance

custom

Customs clearance involves the “clearing” of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties, and excises, and facilitating communication between government authorities, and importers and exporters. It includes customs declaration, inspection, taxation, release, and other formalities. All of this must be completed before the goods can be released to the owner or the recipient.

We are also required to declare to customs, follow customs formalities, and get customs permission. During the period when the goods are in Custom’s clearance whether import, export, or transit, no one is allowed to circulate freely.

Custom Clearance In USA.

1. No custom duties are charged if the value of the shipment is less than $800

2. The shipper and consignee’s must provide the complete telephone number and address, and state them on the invoice.

3. For shipment values greater than $800, a Power of Attorney, Invoice, and a Photo ID of the receiver are needed for clearance. If the consignee does not have a bond, then a temporary bond needs to be purchased.

4. For more detailed information please refer to the U.S. Customs and Border Protection website.

Custom Clearance In India.

S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends Para 2.25 of Foreign Trade Policy (FTP), 2015-2020 as under:

Existing Para 2.25 to FTP, 2015-2020 Revised Para 2.25 of FTP, 2015-2020
Import of gifts shall be ‘FREE’ where such goods are otherwise freely importable under ITC (HS). In other cases, such imports shall be permitted against an authorization issued by DGFT. Import of goods, including those purchased from e-commerce portals, through post or courier, where customs clearance is sought as gifts, is prohibited except for life saving drugs / medicines and Rakhi (but not gifts related to Rakhi)
Explanation:
1. Rakhi (but not gifts related to Rakhi) will be covered under Section 25(6) of Customs Act, 1962 that reads “No Duty shall be collected if the amount of duty leviable is equal to or less than Rs.100/-“
2. Import of goods as gifts with payment of full applicable duties is allowed.

Effect of the Notification: Para 2.25 of Foreign Trade Policy, 2015-20 revised prohibiting import of goods, including those purchased from e-commerce portals, through post or courier, where Customs clearance is sought as gifts, except for life saving drugs / medicines and Rakhi (but not gifts related to Rakhi). Rakhi will be exempted as under Section 25(6) of Customs Act, 1962. Further, import of goods as gifts with payment of full applicable duty is permissible.

This issues with the approval of Minister of Commerce & Industry.