Risk Mitigation Team and their Role in Business Continuity Management
In previous articles, we have seen how Business Continuity Programs are formulated and how they are executed in times of crisis. In this article, we look at the role of the Risk Management and Risk Mitigation Team in aiding the organization towards formulating contingency planning. The risk management team is responsible for identifying risks, coming […]
Inventory Classification – ABC Classification, Advantages & Disadvantages
Inventory is a necessary evil in any organization engaged in production, sale or trading of products. Inventory is held in various forms including Raw Materials, Semi Finished Goods, Finished Goods and Spares. Every unit of inventory has an economic value and is considered an asset of the organization irrespective of where the inventory is located […]
Effects of FIFA World Cup on the Economy
The FIFA World Cup is an international sporting event. This event is held every four years. However, the host country changes every time. Countries have to bid against each other in order to win the rights to host the next World Cup. Many economists have questioned this practice. However, none have been able to find […]
Medical Tourism and its Potential for Developing Countries
The Emerging Phenomenon of Medical Tourism An emerging trend in healthcare management is the phenomenon of medical tourism or the mixing of tourism with visits for medical treatment. This medical tourism has become popular in recent years mainly because of the fact that healthcare has become prohibitively expensive in the West and as the Eastern […]
Characteristics of Six Sigma
Six Sigma is a well-known management breakthrough. There is a dearth of experts who have defined the process in their own way and have come up with a long list of characteristics. However, according to us this performs a task of confusing people rather than actually giving them insight into the way Six Sigma actually […]
Any Organization that is engaged in Imports or Exports would require the services of third party Customs Clearance Agent as well as a Freight Forwarder. While freight forward manages the transportation part of the exports and imports, customs clearance and the approval and co-ordination with the rest of the regulatory authorities to affect the imports and exports is done by the Customs Clearance Broker.
Every Exporter and Importer would need to know the basics of the Import and Export policies as well as conditions applicable to their specific products of import and exports. In addition they should also be aware of the processes involved in imports and exports broadly. However it is the Customs Clearance agent who would know the working of all the Customs Rules and Laws and ensure compliance of the same in a speed manner so as to ensure that the import consignment is cleared within the allotted free period and does not incur demurrage.
Customs valuation process demands a list of documents that are required to be submitted by the Importer. Gathering the various documents from the Importer, from the forwarding agent and creating customs documents required to be filed for clearance process is undertaken by the Clearance Agent. It is he who prepares the Bill of Entry the main document on which the Customs approves the valuation and clearance.
With the standardization of INCO Terms and Documentation, the documents are prepared in advance as soon as the consignment is dispatched from the Country of Origin and the Bill of Entry along with the commercial documentation and the transportation documents are filed electronically from the Clearance Agency’s office and registered at the Customs Department.
On arrival of the consignment at the Customs Bond, the Customs carries out physical inspection as well as valuation of the import. Valuation of the import consists of ascertaining the correct description of the items, classification of the items under relevant Customs Chapter and Tariff, Ascertaining that there is no case of under invoicing and certifying the valuation of the consignment and arriving at the Customs Duty required to be paid. The clearance agency proceeds to advice and co-ordinate with the importer to make necessary Customs Duty Payments and takes physical delivery of the Consignment and delivers it to the Importer at the designated place along with the set of Original documents.
Customs Rules permit a free bonding or warehousing period of three to seven days (depends from country to country and location). Normally the air shipments are given only three days for clearance while the sea shipments are given up to seven days of free warehousing in Customs Bonded Warehouse. The importer through the Customs Clearance agent has to clear the consignment within the free period, failing which a daily demurrage would be charged on the consignments for all days up to the time of actual delivery. The demurrage could prove to be very expensive and hence it is important to ensure that the Customs Clearance Agency is efficient and knows its job well enough.
Importer cannot be expected to spend his time on getting the consignments cleared after ensuring that he is compliant with all the processes. Hence the role of the Customs Clearance Agency comes into the picture for he undertakes to represent the Importer with the Customs Department and follow through the process.
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