How to Clear Customs in India - A Step-by-Step Guide

Customs clearance is one of the most critical steps in international trade. Delays at customs can disrupt your supply chain, increase storage costs, and affect customer satisfaction. This guide walks you through the entire customs clearance process in India, so you know exactly what to expect and how to prepare.

What Is Customs Clearance?

Customs clearance is the official process of getting approval from the government authorities to import goods into or export goods out of a country. In India, this process is managed by the Central Board of Indirect Taxes and Customs (CBIC), which operates under the Ministry of Finance.

Step 1 - Obtain an IEC (Import Export Code)

Before you can import or export anything, your business must have a valid Importer Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT). This is a 10-digit code that serves as your primary identification for all customs transactions. You can apply for it online through the DGFT portal.

Step 2 - Prepare Required Documentation

The following documents are typically required for customs clearance in India:

• Bill of Lading / Airway Bill - proof of shipment from the carrier
• Commercial Invoice - details of goods, prices, and trade terms
• Packing List - exact contents and packaging details
• Certificate of Origin - confirms where goods were manufactured
• Insurance Certificate - proof of cargo insurance
• Import License (if required for restricted goods)
• Letter of Credit / Bank Realisation Certificate

Step 3 - File the Bill of Entry

The Bill of Entry is filed electronically through the ICEGATE portal (Indian Customs Electronic Gateway). This document declares the nature, quantity, and value of the imported goods and is the basis for calculating applicable duties and taxes.

There are three types of Bill of Entry:

• Bill of Entry for Home Consumption - goods cleared immediately for domestic use
• Bill of Entry for Warehousing - goods stored in a bonded warehouse before clearance
• Bill of Entry for Ex-Bond - goods released from a bonded warehouse

Step 4 - Assessment and Duty Payment

Once the Bill of Entry is filed, customs officers assess the declared value and classify the goods under the correct HS Code (Harmonised System Code). Based on this classification, the applicable duties are calculated, including:

• Basic Customs Duty (BCD)
• Integrated Goods and Services Tax (IGST)
• Social Welfare Surcharge
• Anti-dumping duty (if applicable)

Payment is made electronically through authorised banks.

Step 5 - Examination and Inspection

Customs may physically inspect your goods or clear them based on document review alone. The risk-based selection system (RMS) determines whether your shipment needs physical verification. Shipments flagged for inspection are examined at the port warehouse.

Step 6 - Release of Goods

Once duties are paid and inspection (if any) is cleared, customs issues an Out of Charge order, allowing you to take delivery of your goods from the port or airport.

Common Causes of Delays

• Incorrect or incomplete documentation
• Mismatch between declared and actual goods
• Wrong HS Code classification
• Missing licences for restricted items
• Pending duty payments

How We Help

At Shivshakti Shipping & Logistics, our licensed customs brokers handle every aspect of the clearance process. From documentation preparation to duty calculation and liaison with customs authorities, we ensure your shipments clear customs without unnecessary delays. Our deep relationships with port officials and thorough understanding of Indian trade regulations make us the right partner for hassle-free customs clearance.