Thursday, September 10, 2009

MODULE -1 : CUSTOMS CLEARANCE PROCEDURE FOR IMPORTS

The purpose of this article is to disseminate information amongst the business organizations about the Customs Clearance Procedure for Imports. Complete process will be explained in 3 separate modules. Enjoy the 1st Module below:

Procedure for Imports


The procedure for imports comprises of following three processes:

a. Arrival of Goods at Customs Port


b. Filing and Examination of Bills of Entry; and


c. Assessment of customs duty

Customs Clearance / Introduction:


It is a common belief by the importers in Pakistan that custom clearance is very difficult, time consuming and cumbersome procedure. As a result it has become a common practice to engage a clearing agency in fulfilling the requirements and procedures of the customs departments, as well as clearance of consignments. However a part of the negative perception relates to the low awareness level about the compliance requirements for import procedure. It can be divided into two major segments. First appraisal, where the goods are physically verified and customs duty is assessed and second appraisal where the actual or final duty is calculated and levied upon the importer. This article consiting 03 x modules covers all the necessary aspects, which are the fundamental part in clearance of goods/shipment and the process of assessment of customs duty and taxes.
Shipments may be received at either the Sea, Air port or Dry port declared by the customs authorities as customs ports, customs air port and land customs station; the procedure for clearance is same for every customs station.

Arrival of the goods at Customs Ports


The Central Board of Revenue of and on declares the customs ports comprising of sea, land and air ports for the purposes of clearance of goods. The customs clearance process starts with the arrival of cargo ship, plane or other carrier of goods in the country on the designated sea, land and air ports.

Upon arrival of the goods at the customs port, the port authorities issue the Import General Manifest (IGM) to each shipment. It is a number indicating the serial of the shipment arrived during the year. Upon receipt of the IGM the consignment is further indexed to allow for a systematic reference of all goods received. After issuing this number, the shipment is off loaded and sent back to port warehouse. In the case of land customs station i.e. dry port etc. the IGM is issued not at the time the goods reach the land customs station but at the time the goods are off loaded at the sea or air port.

Upon arrival of the off loaded goods, the clearance process starts. Normally at this point a clearing agency is engaged by the importer to facilitate the process of customs clearance and to reduce interface with the customs officials.

Was this module helpful? Your comments'll help me to improve it. In next module I'll explain what documents are required by the clearing agent for further processing with your consignment.

6 comments:

Anonymous said...

Dear Sir,
Once you finish with this topic, then kindly touch the procurement procedure to include rules and ethics of tenders. It is a common practice now a days that vendors are favored for reasons of personal likes and dislikes by violating tenders ethics and rules

Anonymous said...

yea!this man is saying something important. i remember to have come across the same situation. waiting for the subject discussion on tenders

Anonymous said...

time waster nothing new.

Y.F USMAN said...

Sure, I'll cover the topic. However, you are encouraged to contribute your experiences too.

Negi said...

Thanks for great information you write it very clean. I am very lucky to get this tips from you


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Lelan said...

One of the main procedures of import clearance is filling and submitting an import declaration if value of the goods is over AUD1000. Customs and border protection conducts EOI checks to verify the identity of the parties. This is one of the important process that your goods should go into. Learn more here: ACC customs broker Sydney