Export customs clearance refers to official permission to ship cargo out of your country. It is required as it helps the customs officers calculate the taxes and duties levied on the consignment. Customs clearance makes sure that only legitimate items are shipped by the exporter. Export customs clearance is a crucial part of shipping and involves the preparation and submission of various documents.
To begin with, below are listed a few but not all of the supporting documents that the exporters must be ready with for a hassle-free export customs clearance experience.
1. Export License
It is a licence issued by the Directorate General of Foreign Trade (DGFT), which permits an exporter to export products that fall under the restricted category of Indian Trade Classification across the world. It should be submitted when the exporter is shipping his first cargo.
2. Proforma Invoice
A proforma invoice is a preliminary bill of sale issued by the exporter to the importer. It will typically describe the purchased items and other important information, such as the description of the goods, their price, shipping weight, transportation charges, and delivery details.
3. Certificate of Origin
It is a significant international commerce document that certifies that all of the items in a specific export shipment were bought, made, or processed in that country. This certificate is typically required for export customs clearance.
4. Letter of Credit
A letter of credit (LC) is a document that the importer's bank issues on his behalf to guarantee that the issuing bank will pay the exporter for the international trade carried out between the two parties. The exporter needs to present this paperwork at the time of export before products are shipped.
5. Warehouse Receipt
It is a document that confirms the ownership of goods that are kept in the warehouse. When you deposit items in a public warehouse, the storage facility issues you a warehouse receipt and will only release the items in accordance with the owner's instructions.
6. Health Certificates
It is required for food products to make sure that they are fit for human consumption and comply with safety standards and export regulations.
7. Dangerous Goods Forms
This form is required for commodities that pose a risk to the environment and are deemed hazardous by the International Maritime Organization. Items such as flammable liquids, gases, corrosives, and toxic materials are considered dangerous goods.
8. Consular Invoice
A consular invoice is a statement of the details and contents of a shipment that has been authorised by the consul of the nation the goods are being shipped to. The invoice is used by customs officers to certify the contents, quantity, and cost of the shipment—and subsequently determine the import duty.
9. Insurance Certificate
It is a document that the shippers receive from an insurer to confirm that the cargo will be insured for loss or damage while it is in transit.
10. Chemical Analysis Certificate
Chemicals such as dyes, metals, and potentially dangerous solutions, among others, must all be analysed to assure the highest quality.
Note: The documents listed above are just a few of the mandatory documents that are required for clearing export customs. There are many other country-specific and product-specific documents required. One can get in touch with their agent to learn about other documents required for a hassle-free shipment.
Also Read: What to expect from your customs broker?
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