Customs : Bill of Entry for Imports and Exports

Introduction

What is Bill Of Entry ?
Bill of entry is a bill or a legal document that has to be always filled by the importers, also regarded as customs clearance officers, before any arrival of imported goods or materials no matter how small or big they are. This is done under the costumes clearance procedure and it is submitted to the customs officer in the customs department.
Only, after this process is done, the importer importing goods is allowed to claim ITC on the imported goods.
Who issues a bill of entry ?
Bill of entry is issued by :

• It is issued by the firms that are in the business of importing goods from other countries or who import some materials not as a major part of the business from other countries.
• Those firms who have a registered business of selling imported goods and materials within the country.

What is the procedure of Bill Of Entry ?

The procedure of bill of entry is as follows :

1. First, the bill of entry is filed.
2. Second, goods imported are examined by an authorized customs officer.
3. Third, the importer has to pay some basic customs duty, IGST, and also GST,  and cess to clear the goods.

Now, let us look at the format of the Bill of Entry.
 
Format :
Now, let us see the important things to fill in the bill of imports:
Quantity of Packages :

• In it importers fill, sr. number, description of goods, unit code, etc.
• Number of packages
• Customs tariff heading.

Customs Duty :

• Nature of duty code
• Value of goods and additional charges ( if any )
• Rate and amount of customs duty levied.

IGST :

• GST code, IGST rate and amount.
• Amount of compensation cess.
• Exemption notification.
• Total amount of duty and total no. of packages.

Additional Duty :

• CET with respect to exemption notification.
• SAD for customs.
• Total additional duty.

So,  this was the bill of entry for imports. Let us now discuss the bill of entry for exports.
 
Bill of entry for Exports :
To clear the permission for exports custom officers have to undertake the following steps and procedures.

1. Registration :

In the registration process, exporters exporting goods have to obtain a PAN based Business Identification Number(BIN). To get this identification number you have to request an issue from the DGFT i.e. Directorate General of the Foreign Trade, before filing a shipping bill that would be sent for clearance of export of the goods. Under this system of EDI, BIN i.e. business identification number  is then received by the Customs System officer from the DGFT through the online medium.
The exporters are then required and requested  to register the authorised foreign exchange dealer code ( FDC ) with the help of which exports are to be released.

2. Processing of shipping bill :

In this process, shipping bills are to be filed with other important documents like packing list, AR – 4, invoice, etc. Then, it is checked and verified by an assessing officer in the foreign export department . The export department also checks the value of goods that are classified under the drawback schedule.
When the shipping bill is passed by the export department, then the person who is exporting the goods can present thode goods to the shed appraiser for the examination process.
Sometimes, there is a condition that the goods that are being exported are considered discrepant at the docks then, they can be marked back to the export department. The export department now becomes more active then before and they consider the goods and then decide if the goods should be exported or not.

3. Quota Allocation and other certification for exports :

A special label should be put on the goods that are to be exported and the label is called the Quota allocation label. The allocation number of AEPC is entered in the system when the shipping bill entry is being done. The quota certification of the invoice of the export is always submitted to the  Customs office along-with the original documents when the examination process of the export cargo is going on.
One thing to keep in mind is that the shipping bill is always generated only after the official expert order.
After all these processes the goods are then exported to the respected countries.
But there is one thing that you must know, it is that, it is a long process, so you have to do all the prior things in the early processes and allow transparency in the process otherwise the goods would be sent for re inspection and it will take more time then before as now, they will check more thoroughly then before.
Another thing is about amendments, if you want any corrections in your checklist after filing the declaration then, it can be done in the service center if the documents are not submitted in the system and also the shipping bill number has not been assigned.
So, that is how the billing process works for the imports and the exports.
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