Goods cannot enter or leave India until customs allows it. That approval is called customs clearance, and it sits between your supplier and your customer on every cross border order. Done well, it takes a few days and stays predictable. Done badly, it leads to storage fees, penalties and unhappy buyers.
This guide explains how customs clearance works in India, which documents you need, who handles each step and what you can expect to pay.
What is customs clearance?
Customs clearance is the process of declaring goods to Indian Customs, paying any duty and taxes, and receiving permission to release or ship them. Imports are declared through a document called the bill of entry. Exports are declared through a shipping bill.
Both are filed electronically on ICEGATE, the national portal of the Central Board of Indirect Taxes and Customs. The portal covers e-filing of bills of entry and shipping bills, online duty payment and document tracking. Most traders appoint a licensed customs broker to file on their behalf.
What you need before you start
Two registrations come first.
- Import Export Code (IEC). A 10 digit code issued by the Directorate General of Foreign Trade. You need it to import or export goods for business, and it is valid for life.
- ICEGATE registration. Importers, exporters and brokers need a login to file customs documents online.
You should also know the HS code of your product. It decides the duty rate, any licence needs and the correct description on the declaration. A wrong code is among the most common reasons for queries and delays.
Import customs clearance process
- Prepare the document set. Collect the commercial invoice, packing list and bill of lading or airway bill. Send them to your broker while the cargo is still in transit.
- File the bill of entry. The importer or an authorised broker files it on ICEGATE. Advance filing before arrival is allowed in permitted cases, which can save days at the port.
- Assessment. Customs checks the declaration, value, classification and duty. Many bills of entry go through faceless assessment, where an officer elsewhere reviews the file.
- Duty payment. You pay basic customs duty, IGST and any other applicable levies online.
- Examination, if selected. Customs may inspect the cargo or the documents. Selection is based on risk.
- Out of charge. Once duty is paid and checks are complete, customs issues the out of charge order.
- Delivery. You collect the delivery order from the shipping line or airline and move the cargo out of the port or airport.
You can read more about preparation in our customs clearance checklist for first-time importers.
Export customs clearance process
- Confirm your registrations. Hold a valid IEC and register your bank's authorised dealer code with the customs port, so export benefits and payments can be tracked.
- Pack and document. Prepare the commercial invoice and packing list, and arrange transport to the port or inland container depot.
- File the shipping bill. It is filed on ICEGATE, with supporting documents uploaded electronically. Read our guide on what a shipping bill is and how it is filed.
- Customs checks. Officers may examine the cargo. Once satisfied, customs issues a Let Export Order, which allows loading.
- Loading and manifest. The carrier loads the cargo and files the export manifest. ICEGATE matches the shipping bill with this manifest to confirm the export.
- Claim benefits. Exporters can claim IGST refunds, duty drawback and RoDTEP through the same portal once the filing is matched.
Documents required for customs clearance
| Document | Import | Export |
|---|---|---|
| Commercial invoice | Yes | Yes |
| Packing list | Yes | Yes |
| Bill of lading or airway bill | Yes | Yes |
| Bill of entry | Yes | No |
| Shipping bill | No | Yes |
| IEC | Yes | Yes |
| Insurance certificate | When relevant | When relevant |
| Import licence or permits | If the product needs one | If the product needs one |
| Certificate of origin | Only to claim trade agreement benefits | Where the buyer or scheme requires it |
Details on the invoice, packing list and bill of lading must match. A small mismatch in quantity, weight or description can trigger a query and hold your cargo.
Who handles customs clearance?
You can file yourself, but most businesses use a licensed customs broker, also called a CHA. Under the Customs Act, no person may act as a customs broker without a licence granted under the Customs Brokers Licensing Regulations. A good broker files the right documents, answers customs queries, pays duty on your behalf and coordinates with the port. We explain how to pick one in our guide to choosing a customs clearance agent in India.
How long does customs clearance take?
There is no fixed time. A straightforward shipment with complete documents often clears quickly. Delays usually come from missing papers, classification disputes, valuation queries, physical examination or unpaid duty. Filing early and checking documents before you ship are the best ways to keep the timeline short.
Customs clearance charges in brief
Your total cost has four parts:
- Customs duty and taxes. Paid to the government. These depend on the HS code and the value of the goods.
- Broker fees. Charged for filing, documentation and coordination.
- Port and terminal charges. Terminal handling, delivery order fees, examination and cartage.
- Delay costs. Demurrage, detention and storage if cargo stays beyond the free time.
Our detailed post on customs clearance charges in India breaks each of these down.
Common mistakes that slow clearance
- Incorrect HS code. It changes duty and can lead to reassessment or penalties.
- Mismatched documents. Quantities or values that differ across the invoice, packing list and transport document.
- Late document sharing. Papers that reach your broker after the cargo has arrived.
- Missing licences or approvals. Some goods need permits before they can be imported.
- Ignoring free time. Containers that sit at the port past the free days attract daily charges.
How IWCC supports customs clearance
Interworld Cargo Care is a licensed customs house agent, AEO certified and ISO 9001:2015 certified, with more than 30 years of regulatory experience. Our customs clearance service covers documentation, duty calculation and compliance for imports and exports. We pair it with air freight and sea freight, so one team looks after your shipment from booking to release. If cargo needs to wait, our bonded warehouse lets you defer duty until you are ready to dispatch.
Talk to our clearance team
Tell us what you are importing or exporting and we will outline the documents, duty and timeline. Get a free quote or call 098110 59654.