Customs Clearance & CHA Services

What is Customs Clearance & CHA Services?

A licensed Customs House Agent handles your documentation, duty calculation, and cargo release — avoid demurrage charges and customs delays.

Customs clearance in India is governed by the Customs Act, 1962, and the regulations issued thereunder by the Central Board of Indirect Taxes and Customs. Every consignment of goods crossing India's international borders, whether arriving at seaports, airports, or inland container depots, or departing from these points, must be assessed and released by the customs authorities before it can legally enter domestic commerce or depart from Indian territory. The customs clearance process covers tariff classification of goods under the Harmonised System of Nomenclature, valuation under the Customs Valuation Rules 2007, calculation and collection of applicable duties including Basic Customs Duty, Integrated GST, Compensation Cess, and Anti-Dumping Duties where applicable, and the physical or documentary examination of the cargo. A Customs House Agent is a person or firm licensed by the Commissioner of Customs under the Customs Brokers Licensing Regulations 2018, formerly known as the Customs House Agents Licensing Regulations. Only a licensed CHA can file bills of entry for imports and shipping bills for exports on behalf of importers and exporters on the ICEGATE platform. The CHA acts as the legal representative of the cargo owner before customs and bears professional responsibility for the accuracy and completeness of the declarations filed. Selecting an experienced, port-specific CHA is not a formality but a substantive decision that directly affects the speed and cost of customs clearance. For imports, the clearance process begins when the cargo arrives and an Import General Manifest is filed by the carrier. The importer or CHA then files a bill of entry on ICEGATE, classifying the goods under the correct tariff head, declaring the transaction value as per the invoice and supporting documents, and claiming applicable duty exemptions or concessions. The system assigns the bill of entry to a facilitation channel, which may be a green channel for automatic clearance, a yellow channel for documentary verification, or a red channel for physical examination. Goods under the Advance Authorisation or EPCG schemes require additional licence endorsements, and the CHA coordinates these with the relevant DGFT and customs officials. For exports, the CHA files a shipping bill on ICEGATE incorporating the AD Code, IEC, GST details, and a complete description of the goods including Harmonised System Code. The system processes the shipping bill, generates a let export order when customs is satisfied, and the cargo is handed over to the carrier. Post-export, the shipping bill data is used by GST authorities for refund processing and by the bank for EDPMS tagging. The calculation of customs duty involves multiple components and is significantly affected by the correct classification of goods. A single tariff heading difference can mean the difference between a nil rate and a fifteen percent basic customs duty rate, or between eligibility and ineligibility for an exemption notification. Misclassification by an inexperienced filer results in either overpayment of duty, causing cash flow strain, or underpayment, which becomes a customs demand after examination. CBIC conducts post-clearance audits under the Risk Management System, and demands raised after goods have already been consumed or sold are particularly disruptive for businesses. Documentation accuracy is the single biggest determinant of clearance speed. Common errors include invoice value discrepancies, incorrect country of origin declarations affecting Free Trade Agreement benefit claims under agreements such as ASEAN FTA or India-UAE CEPA, missing certificates of origin, incomplete packing lists, and absence of mandatory import licences for restricted goods. Each of these errors triggers a query from customs, extending the clearance timeline and exposing the cargo to demurrage charges at the port. An experienced CHA with deep knowledge of the specific port, the commodity being traded, and the applicable duty structure reduces clearance time, minimises examination risks, and ensures that all duty concessions and scheme benefits are correctly claimed. For businesses trading in specialised or regulated goods such as food items, pharmaceuticals, chemicals, or electronics, the CHA also coordinates with other regulatory agencies including FSSAI, CDSCO, BIS, and the Plant Quarantine Authority, whose no objection certificates are prerequisites for customs release.

How It Works

1. 1

   Pre-Shipment Document Review

   Before the cargo arrives or departs, submit all commercial documents to the CHA for review. The CHA verifies tariff classification, valuation methodology, applicable duty rates, and any licence or permit requirements specific to the commodity and country of origin or destination.

2. 2

   Filing of Bill of Entry or Shipping Bill

   For imports, the CHA files a bill of entry on ICEGATE after the Import General Manifest is filed by the carrier. For exports, the shipping bill is filed before cargo presentation at the port. Both filings include HSN classification, transaction value, IEC, GST details, and applicable licence references.

3. 3

   Duty Assessment and Payment

   The system or the assessing officer determines the assessed value and applicable duty. The importer pays the duty through the ICEGATE payment gateway. For goods under EPCG, Advance Authorisation, or other schemes, the relevant licence is debited against the consignment and duty exemption is applied.

4. 4

   Examination Coordination

   If the consignment is assigned to the yellow or red channel, the CHA coordinates with the examining officer, arranges for the cargo to be made available for examination at the designated shed, and ensures that any queries raised during examination are resolved with supporting documents.

5. 5

   Out of Charge or Let Export Order

   For imports, the assessing officer issues an Out of Charge order upon satisfaction of all requirements, authorising release of the cargo to the importer. For exports, a Let Export Order is issued, permitting the cargo to be loaded on the vessel or aircraft.

6. 6

   Post-Clearance Documentation and Compliance

   After clearance, the CHA provides the finalised bill of entry or shipping bill to the client for records. For imports under schemes, endorsements are updated. For exports, the shipping bill copy is provided to the bank for EDPMS tagging and to the GST department for refund processing.

Government Fees

Professional Fees