Import Customs clearance in India: your questions, answered
Steps, documents, duty and delays, in plain questions and answers.
- File a Bill of Entry on ICEGATE, directly or through a Customs Broker.
- Pay the duty and wait for the Out of Charge order.
- Find the current duty on the ICEGATE Trade Guide.
- If Customs raises a query, answer fast. We can help.
- What is import Customs clearance in India?
- Who can clear imported goods?
- What are the steps, in order?
- Can I file the Bill of Entry before the goods arrive?
- What if I file late?
- What documents do I need?
- What duty will I pay?
- Is the process the same by air?
- What if Customs raises a query?
- Why do clearances get delayed?
- What does clearance cost beyond duty?
- Where can I read more?
What is import Customs clearance in India?
It is the permission from Indian Customs to take your imported goods out of the port, airport or terminal. You file a Bill of Entry, Customs checks the details and the duty, you pay, and Customs gives the Out of Charge order.
Who can clear imported goods?
The importer, or a licensed Customs Broker acting for the importer.
- The Importer Exporter Code (IEC) from DGFT is compulsory for import or export. Exempt categories, such as personal use not connected with trade, are listed in Para 2.07 of the Handbook of Procedures.
- The Bill of Entry is filed electronically on ICEGATE.
- Most importers use a Customs Broker, because the filing is technical.
What are the steps, in order?
| Step | What happens | Note |
|---|---|---|
| 1 | Get your IEC and ICEGATE access | Before the first shipment |
| 2 | Classify the goods | Eight-digit tariff head |
| 3 | File the Bill of Entry | Can be filed before the goods arrive; documents must match each other |
| 4 | Customs assesses duty | You self-assess the duty. Customs verifies it and may ask a query |
| 5 | Customs may examine the goods | Only after the Risk Management System decides the level |
| 6 | Pay the duty | Online |
| 7 | Out of Charge order | Goods can now be removed |
Did you know? The first container voyage
Q. When did containers first go to sea? On 26 April 1956 a converted tanker, the Ideal X, left Port Newark in the United States with 58 containers for Houston, about five days away.
Q. Why does it matter to you? Sealed containers made cargo easier to count, inspect and clear. Today almost every Indian port clearance starts with a container number.
Illustration, not a photograph.Can I file the Bill of Entry before the goods arrive?
Yes. Section 46 of the Customs Act, 1962 allows advance filing, and the advance Bill of Entry is valid if the ship or aircraft arrives within 30 days.
- Since 29 March 2021 there is a time limit.
- Sea ports: by the end of the day before arrival. Imports from Bangladesh, Maldives, Myanmar, Pakistan and Sri Lanka may be filed by the end of the day of arrival.
- Airports and land Customs stations: by the end of the day of arrival.
- Inland container depots: by the end of the day before arrival.
What if I file late?
Late-presentation charges can apply: Rs 5,000 a day for the first three days and Rs 10,000 a day after that.
- The charge cannot exceed the duty payable. Where no duty is payable it cannot exceed Rs 50,000.
- The officer may waive it if satisfied with the reason. Delay caused by a system fault is not penalised.
What documents do I need?
- Commercial invoice and packing list
- Bill of Lading (sea) or Air Waybill (air)
- IEC
- Licence, certificate or test report, if your product needs one
- Any document the Customs query asks for
What duty will I pay?
Customs duty is usually Basic Customs Duty, Social Welfare Surcharge and IGST. The rate depends on the tariff head and the country of origin.
Do not rely on old tables. The official ICEGATE Trade Guide gives the current duty when you enter the tariff head and the country of origin.
Is the process the same by air?
Yes. A Bill of Entry is filed on ICEGATE for air cargo too. Only the place changes, an air cargo complex instead of a port or container freight station.
Did you know? The largest cargo aircraft ever built
Q. What was the Antonov An-225 Mriya? A six-engine Ukrainian freighter with an 88.4 metre wingspan. It first flew on 21 December 1988 and set world payload records of around 253 tonnes.
Q. What became of it? It was destroyed in February 2022 at Hostomel airport near Kyiv. Air cargo of any size is still cleared the same way, through a Bill of Entry.
Illustration, not a photograph.What if Customs raises a query?
Reply in writing, on time and with proof. Customs is expected to raise its queries in one go, not piece by piece. A weak reply can lead to a longer hold and extra charges. See our guide to replying to a Customs query, or send us two lines on WhatsApp.
Why do clearances get delayed?
- The wrong tariff head
- Documents that do not match, such as invoice and packing list
- A licence or certificate that is missing
- IEC or ICEGATE problems
- A Customs query that was not answered in time
Did you know? The ship that blocked a canal
Q. What happened in March 2021? The Ever Given, a container ship 400 metres long, ran aground in the Suez Canal on 23 March 2021 and was refloated on 29 March.
Q. What did it show? More than 430 ships waited at the two ends of the canal. One delay on a sea route can hold up many importers at once.
Illustration, not a photograph.What does clearance cost beyond duty?
Duty is paid to Customs. Other charges are paid to others. They include the Customs Broker, the port or terminal, the shipping line, and storage or detention if goods stay long. Delay is the biggest avoidable cost.
Where can I read more?
Did you know? Why India marks 5 April
Q. What happened on 5 April 1919? The SS Loyalty, owned by the Scindia Steam Navigation Company, sailed from Bombay to London. It is remembered as the first voyage of an Indian-owned merchant ship into international shipping.
Q. What is the link today? India celebrates 5 April as National Maritime Day, and Merchant Navy Week has been marked since 1964.
Illustration, not a photograph.Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This page is general information.