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Questions and Answers
What document does a clearing agent fill out to determine the custom duties for imported goods?
What document does a clearing agent fill out to determine the custom duties for imported goods?
The endorsement for delivery is signed by the customs officer only after all dock dues are paid.
The endorsement for delivery is signed by the customs officer only after all dock dues are paid.
False
What fine is charged for delayed collection of goods after clearing?
What fine is charged for delayed collection of goods after clearing?
Demurrage
The clearing agent must check the condition of the goods before ________.
The clearing agent must check the condition of the goods before ________.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Which of the following describes the bill of sight?
Which of the following describes the bill of sight?
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An importer can sell goods before taking delivery.
An importer can sell goods before taking delivery.
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What must the clearing agent submit to the port authorities to take delivery of goods?
What must the clearing agent submit to the port authorities to take delivery of goods?
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Study Notes
Clearing Goods
- Clearing agents fulfill formalities to clear goods
- Payment of Custom Duties: Agent fills three copies of a bill of entry detailing imported goods. Customs authorities determine payable duties. If agent lacks full knowledge, a bill of sight is used. Available details are recorded, and remaining columns are left blank. Duties are assessed after inspection.
- Payment of Dock Dues: After paying customs duties, agent fills two copies of dock challan for dock dues. One copy is returned as a receipt.
- Endorsement for Delivery: Agent receives a signed bill of lading (endorsement for delivery) from the shipping company. Shipping company's officer signs after all ship and related expenses are paid. Sometimes, a delivery order is issued instead. The ship captain delivers the goods according to the order.
- Taking Delivery of Goods: Agent presents customs duty receipt, dock dues receipt, and signed bill of lading (or order) to port authorities. If satisfactory, goods are allowed to be collected. Agent checks goods for damage at the time of delivery and informs the shipping company if problems are found. Goods must be collected within a timeframe; if not, a demurrage fine applies.
Sale of Goods Before Delivery
- Importer can sell goods before receiving them, and instructions are given to the authorities.
- The purchaser receives goods; alternatively, parts go to the purchaser and the clearing agent.
Keeping Goods in Bonded Warehouse
- If payment isn't possible immediately or if delivery is delayed, goods are placed in a bonded warehouse by a goods warehouse agent.
- A warehouse receipt, known as a dock warrant, is given to the clearing agent.
- Goods can be picked up later after paying the due or as needed.
Loading Goods
- Goods are loaded by the clearing agent; either by road or rail.
- Railway receipt is provided if goods are shipped by rail.
- Information of loading, including railway receipt and other expenses, is provided to the importer afterward.
Taking Delivery from Railway or Transport
- Importer or their agent receives goods from the railway or transport company.
Payment of Octroi Duty
- Local tax (octroi duty) is paid on goods that enter a town.
- Some goods are exempt.
- After paying duty, goods are transported to the importer's warehouse.
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Description
Test your knowledge on the customs clearance process for imported goods. This quiz covers the roles of clearing agents, payment of custom duties, dock dues, and the delivery of goods. Perfect for anyone studying logistics or international trade.
