Production Module – Subcontracting and Materials Issue
Production Order Subcontracting – In the age of production outsourcing and the organizational focus on their core competency, subcontracting of production orders is assuming greater importance. In addition to the business functionality necessary for producing goods in house, sub contraction operations necessitates some additional business process such as generation of sub contracting purchase order. Sub […]
Employee Relationship Management (ERM) through Information System
Introduction Employee relationship management is management of relationship between employees and employers. It is made up of initiatives which improve employee morale and loyalty towards the company. Employee relationship management approach looks to maintain effective relationship through three way approach of continuous communication, conflict resolution and employee development. Importance of Employee Relationship Management Employee is […]
International Trade Terms – INCOTERMS
Globalization has given impetus of international trade which is increasing by the day. International trade involves multiple agencies, transportation agents, carriers as well as Customs and Banks etc of the two countries involved in trade. Any Export or Import transaction involves transportation of goods predominantly via sea or air and in some cases over the […]
BPI – Introduction to Process Measurement
Business Process Improvement project happen to be the most effective tool to bring in effective process and operating efficiencies in any field of business operations. Organizations use BPI programs to overhaul the existing processes, remove redundancies and to adapt to the changing demands and conditions of the Customers. As the business environment keeps changing and […]
Change and Risk Management in ERP Implementation
An ERP system is a process and not an end in itself. Perfunctory Implementing of ERP system will not boost efficiency. Reasons for failure of an ERP project such as lack of commitment from management and employees, lack of communication, knowledgeable employees not available for the project, are mostly organizational issues and have nothing to […]
Customs Departments are the government designated authority to implement the policies related to import and export, collect customs duties and facilitate movement of people, goods, and cargo into and out of the country.
Customs departments have offices at all seaports, airports and border gateways that are essentially the exit and entry points for people and cargo movements into and out of the country.
Customs agencies are empowered to make arrests, confiscate goods and enjoy powers similar to that of police departments.
Every country annually publishes its policy for Foreign Trade, which stipulates the conditions under which goods and services are eligible to be exported or imported. Customs departments implement the provisions of the policy under customs rules, regulations and tariffs.
Imports in many countries may be allowed freely, or some categories may be permitted with due licenses. Many items are also published as banned for import and not allowed entry into the country.
All of the items imported into the country have to be custom cleared. This applies to the items brought in as personal effects and also imported by trade and business establishments including governmental and defense agencies. Necessary stipulated duties would have to be paid before the goods are released by Customs.
Cargo imported into the country from any point of entry is warehoused at Customs bonded area under customs jurisdiction until it is released after clearance.
Freight Forwarders who coordinate the international transportation also provide customs clearance services to the clients. The activity is called customs brokerage.
Customs clearance work involves preparation and submission of documentations required to facilitate export or imports into the country, representing client during customs examination, assessment, payment of duty and co taking delivery of cargo from customs after clearance along with documents.
Some of the documents involved in customs clearance are :
Customs Agents prepare the document of Shipping Bills in the house for submission while rests of the documents are obtained from the client. Preparing shipping bill involves Classification of cargo under specific classification that is a critical activity in the entire process.
Customs clearance agents are also called Carrying and Forwarding agents. They are registered and licensed by Customs to operate. Their role is limited to acting on behalf of and representing clients as third party agencies engaged in customs clearance.
Customs Agents are linked through EDI with customs in most of the countries and use documentation software to facilitate entire process.
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