What is Bill of Entry: Guide to its types, importance, and process

A bill of entry is a legal document filed by the importer or customs agent when the goods arrive in a country. It is a crucial part of the customs clearance procedure and logistic process and serves as a declaration of imported goods.

The bill of entry documents state the type, quantity and value of goods entering a country. The importer or their authorised agents generally submit the bill of entry document to the customs departments for the purpose of assessing and clearing goods. After submission of the documents, the importer can also claim an input tax credit on the imported products.

There are various benefits of a bill of entry documents, such as:

• One of the primary benefits of the bill of entry document is that it ensures that no illegal or banned commodities have been imported.
• Another crucial benefit of the bill of entry is that it helps in cross-checking documents submitted by the export business during shipping, avoiding any discrepancies in the document.
• Furthermore, bill of entry documents also help make the taxation process clear and transparent, avoiding any illegal practices by the customs office.
• Bill of entry documents allow importers to provide the consignment details to customs authorities. This is a good way for customs officers to maintain records of imported goods.

There are various bill of entry types in India based on the nature of transactions and goods. Some of the primary categories of bill of entry are mentioned below:

Regular Bill of Entry 

This is a standard bill of entry document for imported goods intended for consumption within the country. It is generally filed to obtain customs clearance from the authorities for the goods or products to be released in the domestic market.

Re-import Bill of Entry

This is another type of bill of entry document used when re-importing products into the nation or country after they have been exported. Under this, tariff exemptions and refunds can be obtained in specific circumstances.

Transshipment Bill of Entry 

This is another type of bill of entry, which is filed when goods are transported inside the same port from one port of transportation to another for delivery to a different location.

 Warehouse Bill of Entry

This is another type of bill of entry document when imported goods are not immediately required for home consumption. It allows importers to store goods at custom-bonded warehouse facilities without paying any customs duty.

High-Sea Sales Bill of Entry 

This type of bill of entry is used for items sold while they are in a bonded warehouse or transit. It basically approves the sale of goods for domestic use.

Ex-bond Bill of Entry

This is a type of bill of entry for goods that are stored in a customs-bonded warehouse but later released for domestic consumption. The documents facilitate the payment of customs duty and enable the release of the goods from the warehouse.

Project Import Bill of Entry 

This is a type of bill of entry document designed for goods or products imported for projects such as building infrastructure. It is subject to certain custom guidelines and rates.

 Postal Bill of Entry 

This is another bill of entry type used for goods imported by the postal service. This document is subject to customs processes and duties typically used for small-scale commercial shipments or personal shipments.

Below are some of the components of the standard bill of entry documents.

• Importer details such as name, business address, phone number, etc
• Code of customs house agent
• Licence number and port code
• Code for Import-Export (IEC)
• Consignment's country and code
• Name of the vessel
• Origin nation and its code
• Shipment port
• Monetary value and description of the goods
• Any other crucial information for imported goods.

 Sample Bill of Entry Format 

Below is the standard format of the bill of entry that is used by the customs authorities.

There are various types of documents required to obtain a bill of entry based on the type and nature of the import. Some of the crucial bills of entry documents are listed below:

• Packing list
• Shipping invoice
• Bill of lading
• Custom house agents (CHA) or importer’s declaration
• Bank draft or letter of credit
• Insurance documents

Below are the steps to fill out the bill for entry of goods for customs clearance:

• Step 1: The first step is to confirm the importer's or CHA's mode of shipment. If it is an air freight shipment, the airport's ACC Import Commissionerate handles it. Furthermore, if it is a courier shipment, the New Courier Terminal ACC Export Commissionerate (NCT) handles it.
• Step 2: Next, the bill of entry is filed via Electronic Data Interchange (EDI) via the ICEGATE portal. This whole process is entirely digital. The importer first needs to register on the ICEGATE portal.
• Step 3: Enter all the crucial information in the BOE form, such as the importer’s details, shipping details, cargo description, HSN code and more. After carefully entering all the information, submit the bill of entry documents on the portal.
• Step 4: Once the BOE has been submitted, the authorities will start working on custom clearance procedures. A receipt of customs duty payment will be issued. The importer needs to pay the challan using the bank challan or NEFT or RTGS.
• Step 5: Once the payment has been made, the goods or products are registered in the system under BOE, and the electronic clearance process starts.
• Step 6: In some exceptional cases, the customs authorities will physically inspect the products or goods to confirm their description and value. Once an official is satisfied with the inspection and documentation, the out-of-charge order is issued.

Step 7: This document will be uploaded to the ICEGATE portal, and CHA or the importer will receive a notification.

To download the bill of entry documents, you need to follow the steps below.

• Step 1: Visit the ICEGATE website or portal.
• Step 2: Sign into your account.
• Step 3: Once you have logged into the account, go to the “Services” tab in the menu.
• Step 4: Next, go to the “Bill of Entry” section.
• Step 5: Enter all the necessary details, such as BOE number, location, date of filing and more and then click on the "Search" button.

Step 6: A bill of entry will appear; download it for future use.

The bill of entry is an essential document for businesses involved in importing goods. It serves as a formal declaration to customs authorities, providing detailed information about the shipment, such as the description, value, origin and tariff classification of the goods. 

Properly filing the bill of entry ensures that businesses comply with customs regulations, helps avoid delays and mitigates the risk of fines and penalties. Timely and accurate submission of this document is critical for smooth customs clearance, enabling businesses to receive their goods without unnecessary hindrances.

In addition to this, businesses also need to consider investing in marine insurance policies to protect their goods. With marine insurance policies, goods and products will be safeguarded against various unforeseen situations, such as theft, damage, etc., that may occur during transit. It offers peace of mind to businesses. 

TATA AIG offers various marine cargo insurance plans that are customised to meet your unique business requirements. Our cargo insurance policy offers financial cushion to goods that are in transit. 

This coverage shields the goods against a wide array of risks, such as a range of natural disasters, accidents, fire, theft, etc. Secure your goods now with our marine cargo insurance plans.

 Do we need to get a bill of entry for export as well? 

No, a Bill of Entry is typically required only for imports. For exports, the document used is called an export declaration or shipping bill.

What if the bill of entry documents are incorrect?

If the bill of entry documents are incorrect, it can lead to delays in customs clearance, fines, or penalties. Customs authorities may require the submission of corrected documents. In some cases, the importer may be subjected to additional scrutiny or audits, which could affect the timely release of goods.

 What are the type of bill of exchange 

There are two main types of bill of exchange which are demand bill and usance bill which is used to facilitate the payment between parties in trade.