Bill of Entry

Here’s a comprehensive guide to the meaning, types, importance and process of a Bill of Entry.
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3 min
30 August 2023

The Bill of Entry (BOE) is a critical document in international trade, required for the clearance of imported goods. In this article we will explore the role, importance and functions of a BOE in ensuring compliance with regulatory requirements and facilitating smooth import processes.

What is the Bill of Entry (BOE)?

A Bill of Entry (BOE) is a legal document that is mandatory for importers to submit to customs authorities when goods are brought into the country. This document is required to be filled out under the Customs Act, 1962, and must be registered by the importer at the entry point, such as a port or airport. The BOE serves multiple purposes: it is used for calculating tariffs, taxes, and facilitates the entry of goods through customs. It contains detailed information about the goods being imported, their value, quantity, and type, among other data, making it a cornerstone document in the import clearance process. Importers can also track Bill of Entry status to ensure the smooth progression of their goods through customs, as the accuracy and completeness of a Bill of Entry are crucial for avoiding legal and administrative complications during customs processing.

Bill of Entry in GST

In the context of the Goods and Services Tax (GST) in India, the Bill of Entry gains additional importance. It is essential for the proper assessment and payment of IGST on imported goods and to avail input tax credit. The BOE must mention the GST identification number (GSTIN) of the importer, allowing seamless integration of GST across the supply chain, from customs to the final consumer. This integration is vital for ensuring that the GST credits are accurately recorded and can be claimed by the business, thus supporting financial efficiency and compliance.

Who should issue a bill of entry?

A bill of entry should be issued by:

  • Companies that import goods from abroad.
  • Companies that buy goods from Special Economic Zones (SEZ) and sell them within India.

Format of a bill of entry

A bill of entry in the GST regime is structured to include essential details for customs clearance and tax compliance:

  • Header information: Port code, license number, Customs house agent code, Import Export code (IEC), importer’s name, and address (auto-populated for registered taxpayers).
  • Goods details: Vessel’s name, port of shipment, country of origin, country code, consignment country (if different), and bill of lading issuance date.
  • Goods description: Serial number, detailed description, unit code, quantity, weight/volume of packages, customs tariff heading, and applicable duty specifics.
  • Customs duties: Breakdown of assessable value, basic customs duty, additional duties (CET, SAD), IGST details (rate, amount), compensation cess, and exemptions.
  • Charges and declarations: Includes additional charges (e.g., landing, handling), duty amount in words, and declaration sections for Customs house agent and importer.

This structured format ensures accurate documentation and facilitates the calculation of Integrated Goods and Services Tax (IGST) and GST compensation cess. It supports compliance with import regulations and enables seamless clearance of goods through customs.

What are the types of Bill of Entry?

A bill of entry is a crucial document used in international trade to declare the details of imported goods to customs authorities. It facilitates the processing of imports and ensures compliance with regulatory requirements.

Types of bill of entry include:

  • Bill of Entry for home consumption
  • Bill of Entry for warehousing
  • Bill of Entry for ex-bond goods
  • Bill of Entry for home consumption

This type of Bill of Entry is used when goods are imported for direct consumption. It accelerates the clearance process, allowing businesses to quickly access their merchandise for sale or use. This rapid processing is essential for industries where time sensitive delivery of goods, such as perishables or high demand items, is critical.

Bill of Entry for warehousing

This document is used when imported goods are stored in a bonded warehouse. The importer does not have to pay full duties until the goods are removed for consumption, which aids in managing cash flow and storage needs. This option is particularly beneficial for businesses that need to manage their inventory levels efficiently without incurring immediate tax expenses.

Bill of Entry for ex-bond goods

This applies to goods that were previously stored in a warehouse under a warehousing Bill of Entry and are now being taken out for use. It involves the payment of remaining duties and compliance with domestic market regulations before the goods can be sold or consumed. This stage is crucial for ensuring that all regulatory requirements are met before products reach consumers.

What are the documents required for a Bill of Entry?

  • Commercial invoice: Lists the goods being shipped, their value, and the terms of sale, which is essential for customs valuation and duty determination.
  • Packing list: Detailed list of all items within each package, important for verifying cargo contents against the declared list for security and customs control.
  • Certificate of origin: Specifies the country in which the goods were produced, affecting tariff rates under various trade agreements.

How to fill a Bill of Entry?

  • Gather necessary documents: Collect all required documents, such as the commercial invoice and packing list.
  • Enter accurate details: Fill in details such as importer/exporter information, goods description, and value.
  • Submit to customs: Submit the completed Bill of Entry to the customs authorities for processing.

How to make a bill of entry payment?

Making a payment for a Bill of Entry involves calculating and settling Customs Duty, Integrated GST (IGST), and compensation cess where applicable. For offline payments, a challan must be generated and submitted to the Commissionerate of Customs. Alternatively, payments can be made conveniently online through designated portals or electronic modes specified by the customs authorities. This process ensures that import duties and taxes are paid promptly, facilitating the clearance of goods through customs and compliance with regulatory requirements.

What is the need for a bill of entry for exports?

  • Compliance with export regulations: Ensures that all exports comply with international and domestic trade laws, helping to avoid penalties and delays.
  • Customs clearance: Necessary for the customs clearance of goods, verifying that all exports are correctly documented and duties are paid, which is crucial for maintaining the flow of goods across borders.
  • Proof of shipment: Acts as proof that goods have been shipped and details the nature and quantity of the goods exported, providing essential documentation for both buyers and sellers in international trade.

What is the difference between a bill of lading and a bill of entry?

The Bill of Entry (BoE) is prepared by importers or customs clearance agencies, detailing imported goods, valuation, and duties based on documents like the Bill of Lading and Commercial Invoice. In contrast, the Bill of Lading (BoL) is issued by shipping lines, providing comprehensive consignment and shipment details and serving as a tracking document throughout the journey.

 Advantages of the Bill of Entry

  • Regulatory oversight: Ensures all imports meet local standards and statutory requirements, fostering a compliant trade environment.
  • Financial clarity: Provides a detailed account of the duties and taxes applicable, which helps in financial planning and budgeting for businesses.
  • Legal documentation: Serves as a legal document in case of disputes or audits, providing a reliable basis for resolving commercial disagreements or queries from tax authorities.

Conclusion

Understanding and properly managing the Bill of Entry is crucial for businesses involved in international trade. It not only ensures compliance with local customs regulations but also streamlines the import and export processes, reducing potential delays and costs. For businesses looking to expand or stabilise their international operations, exploring business loans can provide the necessary capital to cover upfront costs and investments, thereby supporting growth and operational efficiency.

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Frequently asked questions

What is the difference between bill of entry and shipping bill?
A bill of entry is used for importing goods into a country and details the goods that are entering the country, required for customs clearance. In contrast, a shipping bill is used for exporting goods out of a country and provides details about the goods being shipped out.
How many types of bill of entry are there?
There are three main types of bill of entry: for home consumption, which allows goods to enter the domestic market immediately; for warehousing, which permits the storage of goods in a bonded warehouse; and ex-bond, for goods moving out of the warehouse for home consumption.
Where can I get a bill of entry?
A bill of entry can be obtained and filed through the customs department at the point of entry such as airports, seaports, or land ports where the goods are imported. It is typically processed and submitted electronically via customs handling systems like ICEGATE in India.
How do I create a bill of entry?
To create a bill of entry, importers or their agents must submit detailed information about the imported goods, including value, quantity, and type, along with all necessary supporting documents like invoices and packing lists, to the customs authorities through the electronic data interchange (EDI) system or the ICEGATE portal.
What is the other name of bill of entry?
The bill of entry is also commonly referred to as an import declaration. This term underscores its function as a declaration to customs authorities about the nature and details of the goods being imported.
What is the validity of bill of entry?
The validity of a bill of entry is generally tied to the time it takes for the goods to clear through customs after its submission. The document must be filed within 30 days of the arrival of the goods at a customs station, and the clearance process should commence as per the customs timelines provided.
What is the bill of entry for GST?

A bill of entry for GST is a document required for goods imported into India, used to declare the value of the goods and calculate applicable GST. It ensures that the correct GST amount is paid on imports and helps in claiming input tax credits.

Who gives the bill of entry?

The bill of entry is issued by the customs authorities or the clearing agent handling the import process. It is provided to importers upon the arrival of goods and after the customs clearance process, detailing the specifics of the imported goods and any duties payable.

What is a bill of entry with example?

A bill of entry is a customs document detailing imported goods. For example, if a company imports machinery from Germany, the bill of entry would list the machinery's details, value, and applicable duties. This document helps in clearing the goods through customs and paying necessary duties.

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