What is Bill of Entry?

Understanding the meaning of Bill of Entry

The Bill of Entry (BOE) is a crucial document maintained by importers or customs clearance agents and submitted to customs authorities. It ensures compliance with import regulations and verifies the payment of all appropriate taxes and duties.

To understand what Bill of Entry is, it's important to distinguish it from an invoice. An invoice is simply a list of goods with unit prices, summarising the total amount payable to the supplier. In contrast, a BOE is a legally required document prepared for scheduled imports from other countries, including Special Economic Zones (SEZs). It provides comprehensive details about the imported products, including their description, origin, cost, and the entity placing the import order.

Why is the Bill of Entry important?

The Bill of Entry (BOE) is an important document that allows customs authorities to inspect goods entering their country from another country or region. This process ensures that all imported items comply with legal and safety standards and do not pose any risk to the importing nation in any way.

Here’s what the BOE allows for:

• The customs authorities check the BOE to ensure no illegal commodities or goods are being imported.
• They also crosscheck if all taxes and duties associated with the import have been paid.
• A BOE enables importers to file for Input Tax Credit (ITC) and Compensation cess paid on imports.
• A Bill of Entry (BOE) includes the Goods and Services Tax Identification Number for the importer, ensuring seamless integration of GST from customs to the final delivery phase of the supply chain network.

In short, the Bill of Entry (BOE) ensures regulatory compliance and verifies that the entire import process meets the standards of the countries involved.

Types of Bill of Entry

There are three broad types of Bill of Entry:

• BOE for home consumption: This type of Bill of Entry is prepared for items intended for direct consumption by individuals or businesses. For such products, end users can claim Input Tax Credit (ITC) on the GST paid across the supply chain. The processing is quicker in this case, as the imported goods are meant for immediate use and may be perishable or delicate.
• BOE for bonded warehousing: Importers prepare this type of BOE when they do not wish to pay the import duties immediately. In such scenarios, they can keep the imported product in bonded warehouses until they clear the applicable duties.
• BOE for ex-bond goods: This type of Bill of Entry (BOE) applies to products stored in a bonded warehouse that are now ready for consumption after the clearance of duties. It permits the release of these goods once businesses provide proof of duty payment.

Some other types of Bill of Entry include trans-shipment BOE, re-import BOE, high sea sales BOE, project import BOE, and postal BOE.

Format of Bill of Entry

The Bill of Entry format consists of multiple components, with the most common being:

• Importer details, including importer’s name, contact details, address, etc.
• Code of Custom’s House Agent
• Import-export code (IEC)
• Description of goods, including their value
• Exporter details
• Origin and destination port details
• Importer’s license number
• Any other important information related to the products or the consignment

Documents required for Bill of Entry

The documents required for a Bill of Entry include the following:

• Shipping invoice
• Packaging list
• Custom house agents (CHA) or importer’s declaration
• Bill of lading
• Insurance documents, including marine insurance
• Letter of credit or bank draft

How to download Bill of Entry?

Here’s how to download a BOE:

1. Login to the Indian Customs EDI Gateway or ICEGATE portal (Keep the Importer Exporter Code (IEC) handy)
2. Go to the Services tab in the menu
3. Click on the Bill of Entry section
4. Enter the details asked for
5. Click on the Search button
6. A BOE gets generated
7. Download it for your future reference

Conclusion

Now that you understand the Bill of Entry (BOE) and its importance, it’s crucial to generate it accurately. This document allows authorities to verify the legal and safety aspects of imported goods. Always keep a downloaded copy for future reference.

If you’re concerned about the safety of your products during transit, consider investing in a marine insurance policy. These policies provide comprehensive coverage against risks such as damage, theft, or loss during transportation by sea, air, or land. Whether you are an importer or an exporter, marine insurance ensures financial security and minimises potential disruptions to your business.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.