Clearing Goods Procedure PDF

## Clearing the Goods - The clearing agent clears the goods by fulfilling the following formalities: - **Payment of Custom Duties:** - The agent fills out 3 copies of the bill of entry with full information about the imported goods. - Custom authorities determine the duties pay...

## Clearing the Goods - The clearing agent clears the goods by fulfilling the following formalities: - **Payment of Custom Duties:** - The agent fills out 3 copies of the bill of entry with full information about the imported goods. - Custom authorities determine the duties payable. - 2 copies of the bill of entry are returned to the agent. - If the agent does not have full knowledge of the imported goods, the bill of sight is filled, which is a partially filled bill of entry. - After inspecting the goods, the custom duty is determined. - **Payment of Dock Dues:** - The clearing agent fills out 2 copies of the dock challan to pay the dock dues. - One copy is returned to the agent as a receipt. - **Endorsement for Delivery:** - The clearing agent obtains a signed bill of lading from the shipping company's officer. This is called endorsement for delivery. - The shipping company's officer only signs after the freight and other expenses related to the ship are paid. - The endorsement is an order for the captain of the ship to deliver the goods. - In some cases, the shipping company doesn't sign the bill of lading but issues a delivery order separately. - The captain delivers the goods mentioned in the delivery order. - **Taking Delivery of Goods:** - The clearing agent submits the customs duty receipt, dock dues receipt, and the signed bill of lading or order for delivery to the port authorities. - When the authorities are satisfied with the documents, they allow the goods to be picked up from the dock. - The clearing agent should check the condition of the goods before picking up the goods. - If the goods are damaged, the shipping company should be informed immediately. - The goods should be picked up immediately after receiving confirmation from the authorities. - A fine is charged for delayed collection of the goods, which is called demurrage. - **Sale of Goods before Taking Delivery:** - The importer sometimes sells the goods before taking delivery. - The importer issues written instructions to the dock authorities authorizing the purchaser to take delivery. - These instructions are written on the bill of lading. - If all imported goods have been sold to the purchaser, they are received in full. - If only a portion of the goods are sold, the purchaser receives their portion, and the clearing agent receives the rest. - **Keeping Goods in Bonded Warehouse:** - If the importer cannot pay the customs charges immediately or does not want to take delivery immediately, the goods are kept in the bonded warehouse. - The officer of the warehouse gives a receipt for the goods to the clearing agent, which is called a Dock Warrant. - The goods are cleared from the bonded warehouse after payment of the dues or upon request. - **Loading the Goods:** - The clearing agent arranges for loading the goods. - The goods are shipped by road or rail transport. - When shipped by rail, the clearing agent receives a Railway Receipt (R/R) after booking the goods. - The clearing agent sends information about loading, along with the R/R, commission, and other expenses to the importer. - **Taking Delivery from Railway or Transport:** - The importer arranges for delivery of the goods, either from the railway or transport company, through their agent or the clearing agent. - **Payment of Octroi Duty:** - Local administration imposes a tax on the goods when they reach the town, called octroi duty. - Some goods are exempt from octroi duty. - The importer can carry the goods to their godown after paying the octroi duty.