The custom clearance process in India runs on two documents. Imports clear on a bill of entry; exports clear on a shipping bill. Both are filed electronically into the customs EDI system, both are risk-assessed before a human sees them, and both end with a single release instruction: out of charge on the import side, Let Export Order on the export side. Everything between filing and release is assessment, examination and payment, in that order.
What follows is the sequence as it actually runs, what the importer or exporter has to supply at each stage, and where the delays come from. Duty rates, port charges and DGFT policy conditions change, so verify the current position for your HSN and your port rather than relying on what applied last year.
The import sequence, step by step
- Arrival documents lodged. The carrier files the Import General Manifest before the vessel or aircraft arrives. Your bill of entry cannot be filed against a shipment customs does not yet know about, so a late or incorrect manifest stalls everything downstream.
- Bill of entry filed. Your customs broker files it, usually in advance of arrival. It declares the HSN classification, assessable value, country of origin, notification claimed, and IEC. Advance filing is what buys you the chance to clear on arrival rather than after it.
- Risk management and assessment. The system routes the entry. Facilitated entries pass straight through with no officer intervention. Others go to an appraising officer who checks classification, valuation, origin claim and any licence condition, and may raise a query.
- Examination, if selected. Cargo is moved to the examination area at the CFS or ICD, opened to the extent specified, and checked against the declaration. Percentage examination is normal; full examination is ordered where the profile warrants it.
- Duty payment. Once assessed, the challan is generated and duty is paid electronically. Basic customs duty, IGST, social welfare surcharge and any cess or trade remedy duty are all computed on the entry.
- Out of charge. The officer gives out of charge, which is the release. The CFS or terminal then issues the gate pass against payment of its own charges, and the container or cargo can move out.
- Delivery. Transport is arranged, empty container returned within the free period, and detention or demurrage assessed against whatever time was consumed.
What the importer must supply
- Commercial invoice and packing list that agree with each other on quantity, description and value
- Bill of lading or air waybill, with delivery order arranged from the line or agent
- IEC, GSTIN and the authorisation for your broker to file on your behalf
- Certificate of origin where a preferential rate is claimed, with origin criteria stated correctly
- Any product licence, registration or NOC: FSSAI for food, drug licence and import registration for pharma, BIS registration where notified, chemical and hazardous cargo paperwork with the correct UN number and MSDS
- Insurance certificate and freight invoice, or the terms that let freight and insurance be computed into assessable value
The export sequence
- Shipping bill filed against your IEC, with the scheme declared. Drawback, RoDTEP or advance authorisation each change the fields and the evidence required, and the scheme cannot be added after filing without amendment.
- Cargo moved to the port, ICD or air cargo complex and carting or entry permitted against the shipping bill. Cargo cannot be received before the bill exists in the system.
- Assessment and examination. Export entries are risk-routed the same way. Examination for exports is usually at the CFS, ICD or air cargo complex rather than dockside.
- Let Export Order. The officer issues LEO, which permits loading. Nothing goes on board without it, and a shipment that misses the cut-off for LEO misses the vessel or the flight, not just the gate.
- Loading and EGM. The carrier files the Export General Manifest after departure. This is the step exporters forget, and it matters: refund and incentive claims key off it.
- Proof of export and realisation. The shipping bill, EGM and bank realisation evidence close the loop for GST refund and scheme benefit.
Where delays actually come from
Very little delay in the custom clearance process in India is caused by customs being slow. Most of it is caused by the file being wrong or incomplete when it arrives.
| Cause | What it looks like | How to prevent it |
|---|---|---|
| Classification query | Officer disputes the HSN; assessment held | Settle classification before the first shipment, not on the wharf. Keep technical literature ready. |
| Valuation query | Declared value questioned against reference data | Have the contract, payment evidence and price justification available from day one |
| Origin certificate defect | Preferential rate denied or provisionally assessed | Check the origin criteria wording and issuing authority before shipment leaves |
| Missing licence or NOC | Cargo detained pending a regulatory clearance | Map every regulator that touches your HSN before you buy, not after arrival |
| Document mismatch | Invoice, packing list and BL disagree on quantity or marks | Reconcile all three before the supplier ships |
| Late funding of duty | Challan generated, payment not made, clock running | Approve the duty figure the day the entry is assessed |
| CFS congestion | Cargo physically unavailable for examination | Plan around known peak periods at Mundra, Pipavav and Nhava Sheva |
Free time is the hidden cost. Detention is charged by the shipping line on the container, demurrage by the terminal or CFS on the cargo, and both start counting whether or not your paperwork is ready. A two-day query on a certificate of origin routinely costs more in detention than the duty saving the certificate was claiming.
Getting the custom clearance process in India to run on time
- File in advance. Advance bill of entry filing is the single highest-return habit in the whole process.
- Fix classification once. Build an HSN master for your products, with the reasoning recorded, and use it consistently across every port. Inconsistency between Mundra and Nhava Sheva on the same product invites a query at both.
- Pre-brief your broker. Send documents when the supplier ships, not when the vessel berths. A good custom house agent can only work from what they have.
- Keep a duty approval route that works on the same day. Most self-inflicted demurrage is a payment approval sitting in someone’s inbox.
- Decide where duty should land. If cash flow is the constraint rather than speed, a bonded warehouse defers the duty rather than deferring the clearance.
Our customs clearance desk files at Mundra, Pipavav, Kandla, Nhava Sheva, ICD Khodiyar, Sanand and the Ahmedabad air cargo complex, and works from the same document set across all of them. The cost lines that arise around the entry, and which of them are the broker’s own charge rather than a pass-through, are set out in what a CHA actually does and what it costs.
Talk to Scapex
Send us your product description, HSN and port of entry and we will tell you what the file needs to contain before the goods ship, which is when it is still cheap to fix. Contact Scapex to review a live or upcoming shipment.