What is TRIZ Matrix and How to Use it ?
TRIZ Matrix is a technique developed by Russian scientists to formalise the process of innovations. TRIZ is a Russian Acronym for Theory of Inventive Problem Solving. The English acronym is TIPS and is often used to refer to the same analysis. The TRIZ is a powerful tool that helps brings the insight of years of […]
Why We Should Not Let the Present Global Crisis Go Waste and Make Positive Changes
Never Let a Serious Crisis Go Waste The Chinese term for crisis is a combination of danger and opportunity, which means that a crisis is a good time for opportunity as well. In other words, whenever we are confronted by a crisis whether it is personal or collective, we have the chance to make serious […]
Companys approach to Inventory Health
Inventory means an item of value and asset in the books of the Company. This is the most important category of item that needs to be focused upon by the management for in its management lies the business efficiency as well as profits. Inventory holding is a must for any business organization that is into […]
Globalization and its Discontents
Globalization is a phenomenon that can mean many things to many people. For the workers and the executives in the manufacturing units of China, it can mean new opportunities and the chance to earn a decent living. For the software engineers in India, it can mean an upward mobility towards greater economic and social status. […]
BPI – Introduction to Process Efficiency Measurement
Business Process Improvement projects are extensively used by Organizations from time to time to overhaul their existing processes and operations in a bid to improve the efficiency and effectiveness. In the current situation where intense competition and changing business environment calls for Organizations to keep reinventing themselves and building capability as well as flexibility in […]
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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