When Rajesh Malhotra, who runs a small auto parts factory in Gurgaon, received his first export order from Germany, he thought logistics would be simple — book a container, file a few documents, and wait for dispatch.

Instead, his shipment was held at Nhava Sheva port for 12 days. A missing tariff classification code and misfiled Bill of Entry cost him ₹1.2 lakh in demurrage.
Only when a licensed Customs House Agent (CHA) stepped in were the issues corrected in hours.

That experience is a reality for thousands of Indian SMEs venturing into global trade.
Behind every smooth shipment is an invisible professional who makes customs compliance look effortless.

What Exactly Does a Customs House Agent (CHA) Do?

A Customs House Agent — now formally termed a Customs Broker under India’s Customs Brokers Licensing Regulations 2018 (CBLR 2018) — is authorised by the Central Board of Indirect Taxes and Customs (CBIC) to act on behalf of importers and exporters for all customs-related activities.

Key responsibilities include:

• Preparing and filing Bills of Entry or Shipping Bills through the ICEGATE system

• Paying customs duties, cess, and taxes accurately and on time

• Coordinating with DGFT, FSSAI, Plant Quarantine, and port health authorities

• Liaising with shipping lines, freight forwarders, and terminal operators

• Representing clients before customs during inspection or examination

In essence, a CHA ensures that your shipment clears customs without costly delays or penalties.

Why Indian Businesses Need a CHA

1. Prevent Delays and Demurrage

Even one missing document can stall cargo for days. According to the National Time Release Study (NTRS 2024), the average release time for imports at Indian seaports is still over 86 hours, despite steady improvement.
An experienced CHA knows how to pre-file documents and coordinate inspections to cut that delay by up to 30 %.

2. Maintain Compliance in a Multi-Agency Ecosystem

India’s trade environment involves multiple agencies — CBIC, DGFT, MoCI, FSSAI, Plant Quarantine, and others.
A CHA understands each department’s processes, ensuring that every HS code, declaration, and authorisation aligns with current notifications.

Without that guidance, even a small compliance error can attract penalties under Section 117 of the Customs Act.

3. Reduce Hidden Costs

Demurrage, container detention, and warehousing costs add up quickly.
A CHA’s precision in filing documentation and following up with customs helps businesses save anywhere between ₹25 000 – ₹1 lakh per consignment, depending on port and cargo category.

4. Simplify Documentation and Digital Processes

Exporters today juggle multiple platforms — ICEGATE, DGFT portal, and e-Way Bill systems.
CHAs manage this complexity through electronic filing, digital signatures, and error-free data entry, ensuring seamless coordination with freight forwarders.

5. Gain Strategic Trade Guidance

Experienced CHAs bring practical insights that go beyond paperwork. They can advise on:

• Choosing optimal freight modes (sea vs air vs rail)

• Leveraging Free Trade Agreements (FTAs) for duty savings

• Claiming duty drawbacks or RoDTEP incentives

• Planning shipments to avoid peak-season congestion at ports like Mundra or JNPT

Data Snapshot 1 — India’s Top Container Ports (2024–25)

Source: Ministry of Ports, Shipping & Waterways, 2025.
These four ports handle over 75 % of India’s containerised trade. Working with a CHA familiar with local customs systems and officers at these ports can drastically reduce clearance times.

Data Snapshot 2 — Average Customs Clearance Time by Mode (NTRS 2024)

Interpretation: Even with government digital reforms, sea-borne imports still take over three days to clear. A proactive CHA who files documents before cargo arrival can help shave off nearly a full day.

When Compliance Goes Wrong

In 2023, a Mumbai-based importer of medical equipment filed an incorrect HS code under Chapter 90.
Customs detained the container for 15 days, issued a ₹2.1 lakh penalty, and delayed the company’s production line.
The importer later hired a CHA who ensured proper valuation and pre-clearance for future consignments.
It was an expensive lesson — compliance costs far less than penalties.

Human-Centric Success Stories

• Textile exporter, Tirupur: Saved ₹2.5 lakh in air freight by consolidating shipments under a CHA-managed plan.

• Auto-component manufacturer, Pune: Reduced customs duty delays by 48 hours through e-filing and daily liaison by their CHA.

• Electronics importer, Delhi: Avoided detention entirely when their CHA pre-validated documents via ICEGATE before the container reached port.

Each story reflects a simple truth — having a CHA is not an overhead, it’s risk insurance for global trade.

How to Choose the Right CHA Partner

Selecting a CHA is a strategic decision. Evaluate based on:

• Valid CBIC Licence: Always verify credentials on the Customs Broker list.

• Industry Experience: Choose partners who understand your product category and its regulations.

• Digital Infrastructure: Look for those using EDI, ICEGATE integration, and electronic duty payments.

• Network Coverage: A CHA with offices at multiple ports and airports offers continuity of service.

• Transparency: Clear fee structure and real-time shipment visibility build long-term trust.

A good CHA is not just a service provider but an operational partner who protects your business from unnecessary costs.

The Cargo People Advantage

For Indian businesses navigating global markets, customs clearance should not be a bottleneck.
Cargo People combines licensed CHA expertise with modern digital logistics tools to ensure that your shipments move faster, comply fully, and save tangible costs.

 +91 78350 06245|  cha@cargopeople.com
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