Import clearance through customs involves some formalities along with some procedure need to be followed,

List of below documents required for Import of clearing the goods, 

Bill of Lading to be endrosed by the importer and the Bank on the back side of the Original bill of lading, The same required to collect the Original Delivery Order ffrom liner,

• Commerical Invoice
• Packing List
• Proforma Invoice or Order Copy
• Catalogue/Technical write up of the item
• L/C from Banker
• Insuracne Cerificate
• Certificate of Origin
• I.E.C No.
• Permanent Income Tax. Account No.
• Cargo arrival Notice / Freight Invoice / Freight Certificate
• Authorisation letter to CHA (Custom House Agent)
• Original Documents (Bank Attested) If through Bank

The all the above documents are required for the clearance of Import consignment with by sea mode or air mode. Also some cases some other documents also required if other than normal cargo, and with different schemes

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A statement of Daily vessel Position is released by the Traffic Manager, Port Trust about the details of vessels which are already berthed and the quantity discharged for imports and quantity loaded for exports, vessels length, draft, Vacant berths name of the vessels Agent and Stevedores, vessels waiting etc. This details are made available everyday thro their website.

This facilitates the Clearing and forwarding to load their Cargoes in such a way to lead in their intended vessel for export and in the case of imports can plan their Clearing well in advance.

For the vessel Agents and Stevedoring Agents, this statement enable them to arrange for berthing of their incoming vessels and arrange for loading / unloading equipments like, Cranes, Grabs, Trucks, Labour force etc.

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Shipping                           

Shipping means the owner of the Ship

Mother vessel

It means large ship that carries cargo from load port to transshipment port.

Feeder vessel

The small ships that carries cargo to and from Transshipment port. Then after the cargo to be load or move through Mother vessel.

Liner service

The major steamer with more or less fixed routes with fixed schedule to carry goods from load port to destination port.

Charter

This a document of agreement made between charter and a ship owner. The activity we can called as chartering

C & F Agent

The customs clearing agent who is the Agents/middleman authorized by the customs to undertake customs formalities on behalf of the exporters or importers.

Containers

Metal boxes used to transport the cargo, The different types of container 20',40' (GP/OT/reffer)

Load lines

The load line convention regulates the safe depth to which vessels may be loaded.

TFUs

The capacity of container ships is measured in terms of the number of TEUs ( Twenty Foot / 40' container we can say 2 TEU's

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SEA CONSOL

Bill of lading

Bill of Lading is a receipt or profff of the consignment; the shipping/liner company or carrier certifies that it has received the goods mentioned in the B/L for transportation to the specified destination. This is proff or evidence of a contract in between shipper and liner for the transport movement of goods mentioned in the Bill of lading.

The master bill of lading or MBL is issued by the liner to forwarder/CHA and HBL or house bill of lading is issued by forwarder/CHA to the shipper     

Types of shipment

Containerization has greatly facilitated the import and export of good as as even small consignments can be traded. 

The types of shipments are LCL and FCL

LCL- less than container load

FCL- full container load

Activity

The process would start from an enquiry from the client. After getting the information from the customer regarding the nature of cargo, wt/volume, destination, inco terms. Rates are taken from the liners after comparison the quote is given. After getting approval from the client booking will be done on the liner

A pre alert would be send in case of exports and alert received in case of imports which would include documents namely hbl, mbl, invoice and packing list. In case of imports alert will be received this has to be acted upon.

In case of the consignee is mentioned as to order in CAN acknowledgment of the bank is checked before handing over the goods to party. 

Import general manifest

The shipping line has to give a detailed report of all the goods on board in a report known as "Import General Manifest" (IGM) within 24 hours after arrival of the vessel to the proper officer. In EDI System IGM has to be filed in the computer at the EDI Service Centre. IGM can also be filed in advance, i.e. before the arrival of the vessel.

AIR CONSOL :

Airway bill

A shipping document used by the airlines for air freight.  It serves as contract for carriage and includes carrier conditions such as limits of liability and claim procedures. The airway bill no also includes shipping instruction to airline a description of commodity and applicable transportation charges.

Airway bill contains sets of forms, following the IATA standard form. These are issued by the airlines or their airline agents, and has a serial number and the name and the three-digit identification number of the issuing airline. The main airline can issue AWB and the airline agent can issue HAWB to to the importer for further clearance of goods at respective ports,

The MAWB or HAWB might be filled by the airline, or by airline IATA agent, but in the name of the shipper. The required details provided by the shipper to agent to prepare the AWB.

The below the types of Airway Bills,

1 MAWB  issued by the airline

2 HAWB issued by sindhucargo.

The billing would be done on the weight basis categories would be as <45,+45,<100,+100,+350,+1000

Activity

The query from the customers is recd for the destination. After confirming the nature of cargo ,weight ,volume.The consol asks for the quotes from the airline. On the receipt of the competitive quote the CHA/Forwarder margin is added and quoted to the customer.

Some of the airline are

Cathay Pacific

Singapore Airlines

Air France,

Emirates,

Lufthansa,

Air Lanka

Thai Airways

Air India

Jet Airwarys.

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The documents are received through prealert after which the filing is done through ice gate ,The important documents for the clearance would be as below

·       Airway bill / bill of lading

·       invoice

·       packing list

·       can (cargo arrival notice)

·       technical write up / catalogue

·       insurance policy for specific rate

·       delivery order

·       certificate of origin

·       test certificate

·       importer declaration (GATT)

·       documents for schemes like EPCG,DEPB  etc.,

·      Declaration under DGFT whether for manufacturing or Trading,

if trading have to give MRP declaration

·     Authorization letter to agent

·      IE Code

·      Letter of Credit or Purchase order copy.

It is important to note that the details in the invoice and the packing list should be the same and it should tally with the physical goods.

The duties are calculated depending upon the category of goods which are classified under various chapters. The duties are arrived from the customs duty book also the countervailing duty has to be arrived from the central excise tariff book in the chapter the goods would come under. Notification will have to be checked regarding antidumping duty, safeguard duty, additional duty. The bill of entry can be filed through the ice gate terminal or manually.

Types of Bill of Entries:

Bill of Entry for Home Consumption

Bill of Entry for Ware Housing  in warehousing which are for  a) Bonding b) Debonding)

Customs department has specified three colors of Bill of Entry.

White color of Bill of Entry  - is for Home Consumption

Green color of Bill of Entry - is for De Bonding.

Yellow color of Bill of Entry: is for  Bonding

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The activities related to the export of goods by the shipper to the consignee, is carried out by this department. The CHA may be the freight forwarding agent.

The process runs through as initially with the preparation of the shipping bill, with the registration done for the service number. Then the lead goes through with next stage of customs verification and formalities. The documents required by the shipper for further proceedings are sent, when the shipment is over physically from the port. After the shipment is finished, the commencement of Post Shipment is initiated. This includes the processing of ARE forms, Mate receipt, drawback application (if any), etc., along with the bill of lading.

Finally, after completion of formalities and attaining the original BL, the respective copies are sent to the shipper, bank and the customs. This would fulfill the practical functions. But the responsibility still rests on the agent until the consignment reaches the destination safely. Any interruptions should be dealt accordingly to clear the way for the customer.

Clearing and Forwarding Agents (CHA)

The One who take charge of its his importers and exporters cargo either from the Port to the client’s destination or from client’s premises to the Port is known as Clearing and Forwarding Agent (i.e.), the one who clear the import cargo and forward the export cargo.

For import cargo, the Clearing and Forwarding (C&F) agent on behalf of the importer present the Bill of Lading (B/L), Invoice, Packing List, Certificate of Origin, Plant Quarantine (in case of food grains and seeds) and other relevant documents to Customs for their endorsement and inspection of the cargo and pay the necessary Duty, prior to clearing of goods. And then transport the cargo to the Importer’s desired destination by Road.

And for export cargo, the C&F Agent take delivery of the exportable cargo from its client’s premises or at C&F Agents premises or Container Freight Station (CFS) and arrange to book the cargo in the immediate next vessel after customs examination and stuffing the cargo into the container.

POST SHIPMENT PROCEDURE:

Scheme Verification

DEPB (Duty Entitlement Pass Book Scheme):

DEPB is one of the schemes to introduce to benefit the Exporters in covering the duty. The DEPB Scheme had most of the exporters making a switch from complex advance licensing scheme. The scheme is simple to operate & an exporter gets the DEPB scrip after submission of shipping bill & Bank Certificate.

The following documents are required;

Time Chart

Part A, Part B & Part C

Original DEPB License / 1 Photo copy

Authorization Letter

Appendix 10(c)

Original Quadruplicate / DEPB copy of EDI / 1 photo copy

Customs verified Invoice

ARE; if applicable

B/L copy / 1 photo copy

BRC Certificate

Customs Procedure: -

To check shipping bill entry for particular shipper maintained a record for the customs. (Separate page for each customer in the notebook). Then round a shipping bill no and send it to the Inspector and the note of the DEPB License No/Date against same.

Inspector enters the License No, Date, Duty Credit and FOB value in a DEPB inward register. Then sign it, and the set of bill goes to assessment officer and also checking all the other related documents. If satisfied the officer and signing in the List.

The checklist to be verified it, and goes to particular scheme Superdentent, and he also verified and again goes to Deputy Commissioner (DC) for signature. The verified documents are sending it to the shipper.

DUTY DRAWBACK SCHEME

It is also incentive scheme; where customs and Central Excise would pay back the duty paid by the exporter. Manufacturers or processors who are unable to avail any of these schemes can avail ‘duty drawback’. Here, the excise duty and customs duty paid on inputs is refunded to the exporter of finished product by way of ‘duty drawback’

The following documents are required;

If FOB

EP copy / triplicate / 1 photo copy

Annexure 1

B/L copy

ARE copy

If CIF

Insurance Certificate

Freight Certificate (or) Freight Memo

Customs Procedure: -

In customs the assistant to check the license seal and number. Then the documents are taken to AC for endorsement and the Inspector, supervisor verify the necessary documents. The Superintendent checks the value. If it is deference in quoted value and actual value. In that time query to be raised. After the query to be cleared, the documents sent to the DC for endorsement.

Respective team has to prepare a query sheet. It includes all the details of S.B No, Exporter, Date and details of Freight, Commission, Discount and other costs are calculated. Then the sheet is checked and signed by Authorized signatory in our company.

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The Cargo to be handled in different ways. It may be as follows.

Dry Bulk Shipping (Bulk Carriers)

The principal dry bulk cargoes carried in merchant ships are: iron ore, coal, phosphates, bauxite, and grain. These are all low value commodities and must therefore be transported as cheaply as possible. Transportation costs for dry bulk commodities are often less Bulk carriers are usually large vessels designed both to carry full cargoes and, when necessary, to make return voyages to loading ports without any cargo.

Bulk Carriers are designed to carry bulk solids. Some bulk carriers are multi-purpose, while others are specially adapted to carry dense cargoes like iron ore, or lighter cargoes like wood chips. They also have substantial water ballast capacity so that they can proceed to sea safely after discharging their cargo. Combination carriers, ore/oil and ore/bulk/oil carriers can carry either bulk solids or bulk liquids. The bulk carriers included as salt, wheat, rice, and coal.

Bulk Oil And Gas Shipping (Tankers)               

Tankers carried mainly refined oils from producing areas. Crude oil is now transported in huge quantities from the world’s major producing areas Most of it is carried in VLCCs or ULCCs,ultra large crude carriers, which are the largest tankers But products like diesel oil, petrol, and paraffin are now usually transported from refineries in industrialized countries to coastal storage and distribution centers.

International trade in liquefied gases has grown substantially since the 1960s. Many LNG (methane) and LPG (butane and propane) tankers are now in service.     

Tankers are designed to carry bulk liquids. Most are engaged in the carriage of oil, but some are specially adapted to carry liquefied gases, chemicals, or even wine. VLCCs (very large crudecarriers), are designed to carry crude oil. Very large crude carriers (VLCCs) became common space required; these ships are generally around 2,50,000 tones carrying capacity, much of which is accounted for by the cargo. Loading and discharging rates may be as high as 10,000 tones per hour. Products and chemical tankers are usually smaller and more complex than VLCCs.

Tankers can be mostly used with the liquid items. The liquid solids include PHOSPHORIC ACID, AMMONIA used by SPIC INDIA LTD, CAUSTIC SODA LYE (E/P), VINYL CHLORIDE (I/P), used by DCW INDIA LTD and FURNACE OIL used by INDIAN OIL CORPARATION.

Linear Shipping (Containers)

Liner shipping is characterized by scheduled sailings on an advertised route. Cargoes may consist of many different kinds of goods, in consignments that are each much less than a shipload. Today many liner services are containerized. Liner cargoes include manufactured and high-value goods that can bear higher transport costs than bulk cargoes.

Container ships are designed to carry standard ISO (20 ft and 40 ft and 40H and 45 and reefer) containers, either in designated cells within a hold, or on deck. Large cellular container ships are capable of carrying several thousand containers. Many subsidiary ports do not have container cranes; so small feeder container ships often have their own handling equipment.

Coastal and short-sea shipping are concerned with the movement of cargo and passengers between ports in the same country, or between ports belonging to adjacent countries on the same continent Cruising is an increasingly important shipping sector. In recent years many new cruise ships have been built. Many older vessels have also been converted for cruising. Cruise ships are like floating resort hotels. The latest are very large, with extensive recreational facilities and amenities for 2,000 or more passengers.

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