Understanding Custom Duty, Commercial Invoice and Custom Clearance

ByAnkush Jain| Last Updated On Thursday, Jun 29, 2017

Disclaimer: I am a consultant at Amazon Web Services, and this is my personal blog. The opinions expressed here are solely mine and do not reflect the views of Amazon Web Services (AWS). Any statements made should not be considered official endorsements or statements by AWS.

In this article, I am going to explain you below terms

1. Custom Duty
2. Custom Document
3. Custom Clearance

What is Custom Duty?

Custom Duty is certain amount that is charged by central government on any item which you are importing from foreign country.

What is a Commercial Invoice or Custom Document?

Suppose, you are an Indian citizen, you went to USA and when coming back, you brought two laptops. At the airport, custom officers will come to you and ask you to show your commercial invoice. Then you will have to show them a commercial invoice, that invoice should contain all the detail about the items which you purchased from USA. This commercial invoice is also known as custom document.

What is Custom Clearance?

Custom Clearance is a process that involves preparation and submission of custom documents to custom officers to facilitate import or export of an item. This process also involve passing custom examination, payment of duties and taxes and any other task which is required to finalize your import or export.