Import Procedures of Customs House Agent
Import Procedures of Customs House Agent
Import Procedures of Customs House Agent
SUBMITTED BY
ARAVINDHAN ARULALAN
MITU21MBPS0001
SUBMITTED TO
2021-2023
ACKNOWLEDGEMENT
It is indeed a great pleasure to express our gratitude to all who have been instrumental in
making our training a rich experience.
I would like to thank our institute MIT College of Management (MITCOM), our
Sincere gratitude to my mentor PROFESSOR UMESH GITE for his constant support and
guidance.
Mr. ARAVINDHAN
ARULALAN
(MITU21MBPS0001)
MBA-PSM (2021-23)
CERTIFICATE
External Examiner
DECLARATION BY THE STUDENT
an original work of the undersigned and not has been reproduced from any other
source.
ARAVINDHAN
ARULALAN
(MITU21MBPS0002)
MBA-PSM (2020-22)
CHAPTER I
INTRODUCTION
CHAPTER - I
INTRODUCTION
process involving the acquisition of skills and attitudes. The purpose of training
and development.
performance of work. It included the learning of such skills that are required to
do specific job in a better way. The major burden of training falls on the
employer. On the other hand, education is broader in scope and more general in
falls on the State. However, in many cases the two may take place
simultaneously.
1.2 INTERNSHIP TRAINING AND DEVELOPMENT
required for a particular job. On the other hand, development involves the
WHAT IS AN INTERNSHIP?
study.
industry.
ADVANTAGES OF INTERNSHIPS
out to employers are those students who also have work experiences by the time
they graduate. This automatically makes them more marketable; as they may
require less training and are assumed to be able to handle more responsibilities.
In addition to the specialized skills of your field, transferable skills are generally
It’s all about who you know. As a student intern, you are surrounded by
professionals in the industry that you are seeking access to. It’s more than just
about getting a grade, earning credit, or making money. This is an opportunity
to learn from everyone around you, ask questions, and impress them with your
eagerness. These people can be your future colleagues or can be the connection
that you may never have again as a working adult. Embrace the mistakes that
you’ll make and the many things that you won’t know. Ask questions, observe,
classroom, you’re able to test it out in the world of work. Then, you’ll be much
detailed working experience that I have gained during the training in various
notifies the positive and negative activities of the trainee. It is very useful to
find our mistakes and remove it from our working environment. This type of on
job training gives knowledge and it has been used to expand or start new
1.6 OBJECTIVES
in the company.
maintain secret.
Vel’s shipping Private Ltd.,(VSSPL) is one of the leading shipping and forwarding
company established in 2017 rapidly growing in India. We have a proud tradition of very
high standard customer services. And over a period we have acquired loyal and satisfied
customer base. VSSPL is best known for its recognition among the customers, shipping lines
and other government authorities for
Integrity
Transparency
Ethical practices
Meticulous attention
Extraordinary value-added customer service
We offer a full range of Indian and worldwide full load, LCL (less than container
load), and distribution services, as well as acting as logistics and customs clearance
consultants. Customs broking with own regular CHA license, Transportation with own fleets,
International Freight Forwarding with associations with world renowned forwarders, door to
door deliveries, Consultancy in Imports &Exports and Warehousing.
These integrated services are tailored to meet client’s requirements and real alternate
to the routine services.
MISSION
It is our mission to enable our clients to significantly improve their performance and services
by providing them world class shipping & clearing related technologies, best negotiated low
cost and committed logistics services.
Extend our Service minded dedicated staff to serve you from our all our offices at Chennai,
Tuticorin, Cochin, Bangalore and other Indian ports. We keep innovating and work towards
changes and to this effect we are always open to healthy criticism and ideas.
An ideal India and Domestic Forwarder to help in speedy and timely reach of goods to
overseas consignees by sea, air or land assuming as your accredited associate for imports &
exports.
We are extremely happy to have a large family of customers. This has not come
easily and must admit that the path has been an uphill and an arduous one. We realize& have
learnt that our business does well when our partners do well. Therefore, our customer's
success is our success. Today of course, we are proud to be associated with each one of
them.Over the years, we have changed our working to match the requirements of our
customers. Our team of professionals, experts in their respective disciplines, are highly
motivated and dedicated to their work. Commitment and quality is our buzzwords. We truly
believe that in today's competitive market, where the product differentiation has narrowed to
marginal levels; it's the customer satisfaction - a measure of customer service that's going to
make the difference. We therefore, not only preach but also practice the same "worship they
say starts from within". We have always believed that people make the company and
therefore we lay emphasis on the people who work with us, as ultimately is they who deliver
the goods and contribute to the growth and goodwill of the company in the trade. We keep
innovating and work towards changes and to this effect we are always open to healthy
criticism & ideas.
Finally, with the globalization concept and the world becoming a village place,
competition is very intense. We are also striving hard in this competitive world and it is our
mission and vision to be a "total logistics company" in the true sense of it and provide
a "single window concept" to our valued customers. To help us achieve our mission, we
request our customers to extend thier continued support, valued feedback and stand by us in
hours of need.
"TOGETHER WE GROW"
The asset of our company continues to be our employees. A delegation of power with
extent of their area and authority at various levels and an open environment at the work place
helps employees feel a part of the company and motivates them to contribute their best and
achieve the target and goal. Thus our customers are rest assured of our care.
Communication is the key to any successful enterprise. Our web site up-dates and
regular mails with the state of the art in automatic communication systems enabling the best
of the services to our customers.
FACTORS OF SUCCESS
Total Freight Solutions with personalized service and care, meeting professional
needs.
Air export freight forwarding and Import consolidation.
Free consultancy
Free Consultancy
Notifications and circulars related by
Best Freight cost mail
1. FREIGH FORWARDING
Freight forwarding is a crucial role player to the smooth running of international trade.
The freight forwarder should have very vast experience behind and team with infrastructural
facilities to honor their commitment to the customers. They should have very good rapport
and service contracts with the shipping lines for choosing the best options for their customers'
distribution needs.
Freight forwarding is all about moving goods from one part of the world to another
economically and efficiently. We ensuring thatcargo arrive at the right place and at the right
time involve real skill.
2. CUSTOM BROKING
Customs clearance is our core activity of our company and the Managing director of
this company has excellent experience and thorough knowledge of the customs rules &
procedures. He is a qualified Customs power of Attorney holder under CHLR and handled
many complicated projects in India
The company is issued with a regular Customs House Agents License extendable all
over India and currently being operated at Chennai, Bangalore, Tuticorin and Cochin. It is
also in the cards to extend our license and operate at other major ports.
The company has got trained and well experienced managers section wise and the
clearance staff who have adequate knowledge and tactics with regard to the formalities to be
complied with. The team has been ever maintaining good relationship with all its customers
and governmental authorities and rendering quality service with the motto of good retention
& multiplication of customers.
3. PROJECT CARGO
Nearly 30 cumulative years experience in the handling of difficult, heavy lift and
sensitive freight movements. A highly professional and efficient team is handling project
consignments including large over-dimensional cargoes on a door-to-door basis and from
ports to inland locations. The division is geared to handle a wide range of varied cargoes for
transportation with equipment that includes Prime Movers, Hydraulic Axles, Heavy Lift
RoRo Barge, Mobile Cranes, Jacking & Lifting systems, Tippers, Pay Loaders, Trailers, etc.
4. RAIL CARGO
As a cost effective measure, at times the cargo has to be moved by rail for long distances
and the multi model operations from ICDs require rail and road services. We combine
domestic rail & road movement of customer’s precious goods/commodities so as to ensure
timely and safe delivery of the same to any destination within India.
Forwarding by the railway to Chennai, Mumbai, Vizag, Mangalore, Cochin and
Tuticorin ports
Tracking of containers throughout the way
Re-loading to trucks for multimodal transportation
5. FLEET OPERATORS
VEL’S SHIPPING SERVICES offers flexible road freight services customized to customer
needs for domestic and international groupage, part-load and full-load shipments by road and
intermodal.
Our dedicated experts analyze your requirements, define the required services and
develop state-of-the-art transportation concepts that you can rely on. This unique service
guarantees you efficiency and flexibility
Major IMPORTS handled by:
1. Temperate
2. Consumer goods
5. Electronic Goods
NETWORK:
HEAD OFFICE
CHENNAI -600001.
ICD Office
Whitefield,
CHENNAI -600027.
FIELD OF
STUDY
CHAPTER III
3.1 IMPORT
The word "import" is derived from the word "port," since goods are often
shipped via boat to foreign countries. Countries are most likely to import goods
that domestic industries cannot produce as efficiently or cheaply, but may also
import raw materials or commodities that are not available within its borders.
For example, many countries must import oil because they either cannot
produce it domestically or cannot produce enough of it to meet demand.
3.2 IMPORT PROCEDURES OF CHA (CUSTOMS HOUSE AGENTS)
The import procedure is quite different the export procedure. It starts with,
The importer asks for the three original bills of lading from the bank. The
bank issues the bill of lading only when the importer cleared all the payments
due to the bank.
The importer then sends the following documents CHA:-
a) Bill of lading
b) Invoice
c) Packing list
d) Certificate of origin
e) Pre shipment inspection certificate
f) Insurance certificate
g) Sales contract
h) Bond copy (if H.S.S)
The CHA shows the bill of lading to the shipping agent in order to get the
Delivery Order.
Delivery Order has been issued by the shipping line to make sure that they
have no objection to open the containers for the examination of goods.
CHA prepares the file bill of entry through ICEGATE, where every CHA
will have their own ID to access.
CHA then presents the bill of entry to the customs for noting and then
customs gives the import department the serial no. that comes on all copies of
bill of entry.
CHA pays wharf age to the port authority and the original copy of wharf
age goes to the treasury of port trust.
Customs give the examination order on the back of original bill of entry
in case of first check procedure.
Customs assessed the duty to ensure that the duty evaluated by the CHA is
correct.
Prior to this, the CHA on the basis of invoice, packing list prepares the
bill of entry. The bill of entry is a proof that the goods have been imported.
For custom clearance purpose, the importer has to submit to the customs
authority a form, which is known as bill of entry.
IMPORT PROCEDURE
3.3 BILL OF ENTRY IS IN THREE COPIES:-
Original copy:-
This is called the customs copy. In first check procedure it contains the
examination report on the back of it.
Duplicate copy: -
Triplicate copy: -
Quadruplicate copy: -
Out of 5th, 6th, and 7th copies, one copy is given to the port authority. The other
two copies are kept by the CHA for his record.
This type of bill of entry is used when importer wants to take the delivery of
goods on payment of custom duty.
This type of bill of entry is used when importer wants to warehousing the goods
in custom bonded warehouse.
This type of bill of entry is used for clearing the goods from custom bonded
warehouse against warehouse bill of entry on the payment of custom duties.
I. Bill of lading
II. Invoice
III. Certificate of origin
IV. 59- Bond warehousing bond
V. Bill of entry
VI. Packing list
VII. NOC (No Objection Certificate)
VIII. Delivery order
IX. Treasury Challan
X. Gate pass
3.4 IMPORT DUTY & TAXES WHEN IMPORTING INTO INDIA
Overview
Import duty and taxes are due when importing goods into India whether by a
private individual or a commercial entity. The valuation method is CIF (Cost,
Insurance and Freight), which means that the import duty and taxes payable are
calculated on the complete shipping value, which includes the cost of the
imported goods, the cost of freight, and the cost of insurance. Duty in particular
is calculated on the sum of the CIF value and landing charges (explained
below). Some duties are also based on quantity measurements. In addition to
duty, imports are subject to other taxes and charges such as landing charges,
countervailing duty, CESS, and education CESS.
Duty Rates
Sales Tax
There is no minimum threshold in India, i.e. all imports regardless of their value
are subject to duty and taxes.
Letter of Credit
Packing list
It is a detailed document provided by the exporter that spells out how many
containers there are in the shipment and which merchandise is contained in each
container.
Invoice
It is a document which shows the total amount of the goods and the description
of goods.
Bill of lading
A generic term used to describe a document issued by the carrier to the shipper.
Mate receipt
Mate receipt is issued by the mate (assistant to the captain of the ship) after the
cargo is loaded into the ship. It is an acknowledgement that the goods have been
received on board the ship
Shipping bill
It is issued by the custom authority. Shipping is the main document of the basic
of which the custom permission is given. After the shipping bill is stamped by
custom, then only the goods are allowed to be enter to the deck. It is prepared
by EDI system or manually system.
Certificate of Origin
Phyto-sanitary certificate
It is a document internal to the shipping company (the carrier) that lists all cargo
onboard the transportation vehicle.
Forms AR-4/AR-4A
These forms are meant for applying for the removal of excisable goods for
export by sea/post. Form AR-4 is used for applying for excise inspection at the
factory and form AR-4A is used when goods are to be exported under a claim
for rebate of excise duty or under bond.
Certificate of Measurement
Shipping advice
A shipping advice is used to inform the overseas customer about the shipment
of goods. There is no particular form of shipping advice. The exporter only
advises his importer about the invoice number, Bill of lading / Airway bill
number and date, name of the vessel with date of sailing of the vessel.
Bill of entry
The bill entry is a document, prepared by the importer or his clearing agent in
the prescribed form under bill of entry regulation, 1971, on which clearance of
imported goods can be made.
Certificate of insurance
ROYAL IMPEX
Royal Impex is the only software that use for importers, exporters
and customs house agent to take complete control of clearing and forwarding
activity in customs in India. With more than 500 installations it is named India’s
largest selling custom house agents online EDI software.
OBSERVATIONS
CHAPTER IV
OBSERVATIONS
8. I observed the problems faced by CHA and how they managed the
critical situations while clearing the goods of the importer.
CONCLUSION
CHAPTER V
CONCLUSION
Main Page
BE SUBMISSION
BILL OF ENTRY TRACKING
ROYAL IMPEX
MAIN PAGE
IGM DETAILS
ITEM DETAILS
INVOICE DETAILS
FILE SUBMISSION PAGE
IMPORTER DETAILS
CHECK LIST CREATION
CHECK LIST MODEL
Rs.432394.89 124753.90
Signature Signature