Names: Kalisa Idrissa
Reg: 1998612
Assignment of freight clearing and forwarding
UTB
Evening session
Any commercial cargo, whether it is for import or export, requires customer clearance. Simply put, this
means that businesses engaged in exporting and importing goods to and from the country need to clear
specific customs barriers as outlined by the government.
The customs clearance process typically involves preparing documents that may be submitted
electronically or physically with the consignment. This helps concerned authorities to calculate taxes and
duties that will be levied on the cargo
Six of 6 List of Documents required for Exports Customs Clearance
Pro Forma Invoice
The Pro Forma Invoice documents the intention of the exporter to sell a predetermined quantity of goods
or products. This invoice is generated as per the outlined terms and conditions agreed upon between the
exporter and the importer, through a recognized medium of communication such as email, fax, telephone
or in person. It is similar to a ‘Purchase Order’, which is issued prior to completing the sales transaction.
Customs Packing List
The customs packing list states the list of items included in the shipment that can be matched against the
pro forma invoice by any concerned party involved in the transaction. This list is sent along with the
international shipment and is especially convenient for transportation companies as they know exactly
what is being shipped. Individual customs packing lists are secured outside each individual container to
minimise the risk of exporting incorrect cargo internationally.
Country of Origin or COO Certificate
The Country of Origin Certificate is a declaration issued by the exporter that certifies that the goods being
shipped have been completely acquired, produced, manufactured or processed in a particular country.
Customs Invoice
A customs invoice is a mandatory document for any export trade. The customs clearance department will
ask for this document first as it contains information about the order, including details such as description,
selling price, quantity, packaging costs, weight or volume of the goods to determine customs import value
at the destination port, freight insurance, terms of delivery and payment, etc. A customs representative
will match this information with the order and decide whether to clear this for forwarding or not.
Shipping Bill
A shipping bill is a traditional report where the downside is asserted and primarily serves as a measurable
record. This can be submitted through a custom online software system (ICEGATE). To obtain
the shipping bill, the exporter will need the following documents:
GR Forms for shipment to all the countries
Packing list (with various details such as information about the content, quantity, the gross and
net weight of each package)
Export License
Indent
Acceptance of Contract
Invoices (with all relevant information such as the number of packages, quantity, price, correct
specification of goods, etc.)
Purchase Order
Letter of Credit
AR4 and Invoice
Examination or QC Certificate
Port Trust document
Bill of Lading
Bill of Lading is a legal document issued by the carrier to the shipper. It acts as evidence of the contract
for transport for goods and products, mentioned in the bill provided by the carrier. It also includes product
information such as type, quantity, and destination that the goods are being carried to. This bill can also be
treated as a shipment receipt at the port of destination where it must be produced to the customs official
for clearance by the exporter. Regardless of the form of transportation, this is a must-have document that
should accompany the goods and must be duly signed by the authorised representative from the carrier,
shipper, and receiver. The Bill of Lading comes in handy if there is any asset theft.
Bill of Sight
Bill of Sight is a declaration from the exporter made to the customs department in case the receiver is
unsure of the nature of goods being shipped. The Bill of Sight permits the receiver of goods to inspect
them before making payments towards applicable duties. Applying for a bill of sight becomes necessary
as it acts as a substitute document if the exporter does not have all the must-have information and
documents needed for the bill of entry. Along with the bill of sight, the exporter also needs to submit a
letter that allows for the clearance of goods by customs.
Letter of Credit
Letter of credit is shared by the importer’s bank, stating that the importer will honour payment to the
exporter of the sum specified to complete the transaction. Depending on the terms of payment between
the exporter and importer, the order is dispatched only after the exporter has this letter of credit.
Bill of Exchange
Bill of Exchange is an alternative payment option where the importer is to clear payments for goods
received from the exporter either on-demand or at a fixed or determinable future. It is similar to
promissory notes that can be drawn by banks or individuals. You can even transfer a Bill of Exchange by
endorsement.
Export License
Businesses must have an export license that they can provide to customs in order to export or forward
any products. This only needs to be produced when the shipper is exporting goods to an international
destination for the very first time. This type of license may vary depending on the type of export you
intend to make. This can be done by applying with the licensing authority, and the permit is eventually
issued by the Chief Controller of Exports and Imports.
Document require in importation procedure
There may have bilateral import export agreements between governments of different countries.
Imports and exports from such countries may have exemptions on documentation for export and
import clearance.
Bill of Entry:
Bill of entry is one of the major import document for import customs clearance. As explained
previously, Bill of Entry is the legal document to be filed by CHA or Importer duly signed. Bill
of Entry is one of the indicators of ‘total outward remittance of country’ regulated by Reserve
Bank and Customs department. Bill of entry must be filed within thirty days of arrival of goods
at a customs location.
Commercial Invoice.
Invoice is the prime document in any business transactions. Invoice is one of the documents
required for import customs clearance for value appraisal by concerned customs official.
Assessable value is calculated on the basis of terms of delivery of goods mentioned in
commercial invoice produced by importer at customs location
Bill of Lading / Airway bill :
BL/AWB is one of the documents required for import customs clearance.
Bill of lading under sea shipment or Airway bill under air shipment is carrier’s document
required to be submitted with customs for import customs clearance purpose. Bill of lading or
Airway bill issued by carrier provides the details of cargo with terms of delivery. I have
discussed in detail about Bill of Lading and Airway bill separately in this website. You can go
through those articles to have a deep knowledge about documents required for import customs
clearance.
Import License
As I have mentioned above, import license may be required as one of the documents for import
customs clearance procedures and formalities under specific products. This license may be
mandatory for importing specific goods as per guide lines provided by government. Import of
such specific products may have been being regulated by government time to time. So
government insist an import license as one of the documents required for import customs
clearance to bring those materials from foreign countries
Insurance certificate
Insurance certificate is one of the documents required for import customs clearance procedures.
Insurance certificate is a supporting document against importer’s declaration on terms of
delivery. Insurance certificate under import shipment helps customs authorities to verify,
whether selling price includes insurance or not. This is required to find assessable value which
determines import duty amount.
