The Indian government has recently taken some steps to make Ease of Business a more streamlined process. One of the steps was to reduce the number of documents required for imports and exports. The number of documents that must be submitted to obtain an IEC number is now three.
Before we get into the documentation, we should know that the documentation is not the same for all products. However, it is still not difficult to outline the basic documents required for import customs clearance in the importing country. This article provides general information about import and export customs clearance documents.
Import and Export Code(IEC)
Due to the variety of goods being imported from different countries, it becomes a challenge to have the right set of documents in the import/export tax exemption method. Also, each country has its own laws and different methods and customs for approving imports. Each imported item is ordered by an internationally recognized code number called an IEC number. Specifically, the IEC number will be the company’s Permanent Account Number (PAN), but the IEC number is valid for life, so anyone who has applied for her IEC number in the past can still use the old code. Reciprocal import and export code agreements may exist between the legislative bodies of different countries. Document clearance exceptions may apply to imports and exports from such countries.
Required legal documents
The three statutory documents required to carry out import customs clearance are:
1. Admission ticket
The import document is one of the mandatory documents for the import clearance permit. As clarified already, the bill of entry is the legal report to be recorded by a CHA (Customs House Agent).
The bill of entry is one of the pointers of ‘absolute outward settlement of nations’. It is managed by the Reserve Bank of India and the Customs Office
The bill of entry must be documented within 30 days of the influx of merchandise at a customs office
After filling the bill of entry alongside essential import customs document clearance, evaluation, and assessment of products are completed by the concerned customs officers.
After import customs paperwork is completed, a ‘pass out the order is given under the bill of entry
When a shipper or their approved customs house operator gets a ‘pass out the order’ from concerned officials, the imported merchandise can be moved out of customs. The goods can be removed from customs territory to the shipper’s location after paying basic import charges.
2. Commercial invoice and packing list
The invoice is the most important document in any business dealings
The receipt is one of the documents required for import customs leeway for value examination by concerned customs officials
Computable value is determined based on the terms of conveyance of merchandise referenced in the business receipt delivered by the shipper at the customs area
The concerned evaluating official checks that the amount referenced in the business receipt matches the genuine market estimation of the same merchandise
This strategy for assessment by evaluating officials of customs avoids false exercises of shippers or exporters such as over-invoicing or under-invoicing
So, the invoice assumes an important job in value evaluation in import customs clearance. 3. Bill of Lading/Air Waybill
The bill of lading or an air waybill is one of the most important documents required for import customs clearance.
A bill of lading for ocean shipment or an air waybill for air shipment is a shipping company document that must be submitted to customs for import clearance.
In addition, the bill of lading or air waybill provided by the bearer will contain the details of the shipment and the conditions of carriage.