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LOGISTICS OPERATIONAL TOOLS


Genaral Idea on Ocean Transit times for Shipments arriving into India from

UK                -            21 days ~ 25 days 
Japan - 16 days ~ 20 days
USA - 35 days ~ 45 days
Dubai - 3 days ~ 5 days
Singapore - 7 days ~ 10 days
China - 21 days ~ 25 days
Europe - 21 days ~ 25 days

Note:- For checking the ETA of the vessel, check the on board B/L date and add the above transit days, and arrive at the approximate date of arrival of the vessel.



Information on Import Customs Duties and their Calculation

A. Basic Customs Duty
This duty is leviable on the assessable value. The basic customs duty rates are 0%, 15%, 25%, 30 % or 35%. The duty rates are dependant upon the tariff classification of the items of import. The applicable duty rate would be arrived at after taking into account the relevant notification applicable to the chapter under which the item has been classified.

B. Additional Duty or Counterveilng Duty
This duty is leviable on the assessable value + basic customs duty. The duty rate is equivalent to the Central Excise Duty leviable on the similar item manufactured in India. The duty rate is therefore ascertained from the Central Excise Tariff. Generally the CVD rate is 16%. However, the applicable duty rate would be arrived at after considering the notification applicable to the relevant chapter under which the item has been classified.

In certain cases (mostly consumer goods) the CVD is chargeable on Minimum Retail Price (MRP). In such cases the importer has to declare the MRP of the item and the CVD is then chargeable on MRP and not on assessable value plus basic customs duty.

C. Special Additional Duty
This is a duty chargeable in lieu of sales tax and the general rate is 4 %. Specific exemption notifications may also be applicable. The special additional duty is leviable on assessable value + basic customs duty + CVD.

D. Other Duties
Besides the above three main duties, there are at times other duties applicable to the item of import. Such other duties are Safe-Guard Duty, Antidumping Duty, Special Excise Duty under the Second Schedule, Additional Duties on Textiles, Excise Duties – Cesses Leviable under Miscellaneous Acts, Additional Duty under Additional Duties of Excise (Goods of Special Importance) Act, 1957, National Calamity Contingent Duty etc. Such duties if applicable will also have to be taken into account.

E. Duty Calculation
The Gross Duty calculation for some of the general duty rates is as follows :-

BCD CVD SAD Gross Duty on Assesable Value Gross Duty on CIF Value
5% Nil Nil 5% 5.05%
5% 16% Nil 21.8% 22.018%
5% 16% 4% 26.672% 26.939%
15% Nil Nil 15.1% 15.15%
15% 16% 4% 38.736% 39.123%
25% Nil Nil 25% 25.25%
25% 16% 4% 50.8% 51.308%
30% Nil Nil 30% 30.3%
30% 16% 4% 56.832% 57.4%
35% Nil Nil 35% 35.35%
35% 16% 4% 62.864% 63.493%


DOCUMENTS REQUIRED FOR CUSTOMS CLEARANCE

A. Essential Documents

(i.) Invoice
This should be preferably bank attested.


(ii.) Packing List
The Packing List must be box wise as that facilitates customs examination.


(iii.) Duly Endorsed B/L for Sea Shipments
Duly endorsed means that the B/L must be signed and stamped on the reverse by the consignee. If the consignee is ‘To Order’ then the B/L should be endorsed on the reverse by the supplier and also endorsed by the party been in whose favour an endorsement has been given by the supplier.

Duly endorsed B/L is surrendered to the Shipping Line or it’s agent and a Delivery Order is obtained. Delivery Order is a letter from the Shipping Line addressed to customs for handing over the goods to the party in whose favour the D.O. has been made.

In case original B/L is not received, then D.O. can be obtained from the Shipping Line by furnishing to the Shipping Line an Indemnity Bond / Bank Guarantee as required by the Shipping Line.


(iv.) Air Way Bill for Air Shipments.


(v.) Customs Declaration Forms duly signed and stamped by the importer.
4 copies of B/E Declaration and 2 copies of GATT Valuation Declaration are required.


B. Supporting Documents
In addition to the above essential documents, the following supporting documents may also be required for facilitating faster clearance.

(i.) Copy of Proforma Invoice

(ii.) Copy of Purchase Order

(iii.) Copy of Order Confirmation

(iv.) Copy of Letter of Credit

The above documents are required for justification of value.

(v.) Manufacturer’s Invoice

(vi.) Manufacturer’s Price-list

If the customs authorities are not satisfied with Purchase Order / L/C documents, then the above documents may be called for justification of import value.

(vii.) Catalogue / Technical Write-Up
These are essentially required for machinery / parts import.

(viii.) Chemical Literature / Write Up / Specifications
These are essentially required for chemicals / plastics / rubber and similar items.

(ix.) ) Industrial Licence
Required to prove actual user condition.

(x.) Certificate of Origin
Required for valuation aspects or in case any preferential area duty is being claimed.

(xi.) Chartered Engineer Certificate

Required for second hand machinery imports. The Chartered Engineer Certificate must the specify value of machinery in the year of manufacture, the reconditioning cost, the year of manufacture, the residual life, operational worthiness, and the fair value of the machinery imported.

TYPES of Cargo Vehicles in India with Dimensions/Load Capacity
Vehicle Type Capacity Vehicle Size
Tata 407 Capacity 2.5 MT Size 10X5X5
Canter Capacity 3.5 MT Size 14X6X6
LPT 709 Capacity 4.5 MT Size 16X6X6
Full Truck Load Capacity 9 MT Size 18X7X7
LPT   Size 19X7X7
Taurus Capacity 15 MT Size 20X7X7
Open Truck Capacity 9 MT Size 20X8X8
JCB   Size 28X8X8
Trailer Double Axle Capacity 20 MT Size 40X8X8
Trailer Triple Axle Capacity 28 MT Size 40X8X8
Trailer Triple Axle Capacity 28 MT Size 50X8X8
Trailer Triple Axle Capacity 28 MT Size 60X8X8
 
Low Bed Trailer for ODC sizes & Various Capacities.
Hippo/ Beaver Capacity 40 MT  
Volvo Capacity 50 MT  
With Hydraulic Axles to Increase the Capacities