Customs Clearance

By | November 30, 2016

The concept of customs operation is as old as the trade itself, In the olden days, there was a tradition followed by traders of offering gifts, etc. to Kings to be able to sell their merchandise in different territories. The same practice has been formalized in the modern economic and political systems. Goods are subjected to levy of duties, whenever they cross the national frontiers/boundaries of a country. Despite all efforts for free trade, a collection of revenue is still on the priority of the Commissioner in charge of a Customhouse.

Objectives of Customs Clearance:

Apart from being a source of revenue, the major objectives of customs clearance are as follows:

Cheek smuggling: Those transactions which do not take place by provisions of different laws in force in India amounts to smuggling. It is the duty of customs administration to check such transactions.

Regulate Trade: Customs clearance help in regulating trade by national objectives and policies. Violation of any provision of the Exim policy as decided by the Ministry of Commerce ipso-facto is a violation of the Customs Act about various prohibition and restrictions imposed by the Government.

Agency Function: To undertake agency functions i.e. functions performed on behalf of other agencies. For example, it is the customs responsibility to ascertain that the requirements emanating from different acts in force are complied with or not. It may be requirements of the Foreign Exchange Management Act or Quality Control and Pre-Shipment Inspection Act.

Collection of trade data: To collect trade data and submit the same to Directorate General of Commercial Intelligence & Statistics (DGCI & S) Calcutta, Ministry of Commerce, which brings out trade data in different formats for the use of

  1. Various Government Departments/Ministries,
  2. Trade and Industry,
  3. Researchers and others concerned with international trade.

Data is essential to review the past performance and plan for the future as well as to know the trends of our business or unit/value realization of a particular item etc.