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Types of Bill of Entry

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Shubham Jain
Types of Bill of Entry

Introduction 

A Bill of entry is an essential legal document for importers and customs agents for arriving goods in the respective country. It is considered an acknowledgement of the taxes and duties paid on imports, hence all the crucial details regarding the imported products are mentioned in the particular document, Bills of an entry come in various types and are broadly classified into 3 types. 


The central board of indirect taxes and Customs has divided BOE on the basis of the nature and purpose of the goods imported from different countries. This article will specifically discuss the different types of Bill of Entry, their uses, components, documents required and who needs Bills of entry. 


What are the different types of Bills of Entry?

There are broadly 3 categories of Bills of entry procedures in India that can be filed virtually as well as manually, they are namely


Bill of Entry for Household Consumption 

This type of Bill of entry is meant for those consumptions that users/individuals will procure for their personal (specific consumption) and business benefits. Earlier before the introduction of electronic filing, the manual entry filled was white in colour. Importers file for a Bill of Entry for home or personal consumption whenever they need to clear off the product on duty payment and to get clear out with the present cargo to their place during that specific period of time. 


Section 46 of the Customs Act 1946 describes legal compliances, procedures and all the formalities that are associated with it.  


Ex - Bond Bill of Entry 

The custom act of 1962 defines BOI as a document used when the importer wants clearance of goods that are warehoused for personal or home consumption. The Ex bond bill of entry is in green colour earlier before it gets filled manually and no EDI facility can be availedBill of entry for Ex-Bond is generated when the importer is ready to release the goods from the warehouse and overrides the BOE for warehousing. 



Bond Bill of Entry 

A bond Bill of Entry also known as a Warehousing Bill of Entry, is useful in cases when the importer is not willing to pay off the required duty, he keeps the product in the warehouse until the customs department has received the full payments. Section 46-60 of the customs act 1962 governs the Bond Bill of Entry. Goods in the warehouse are kept following all the guidelines and formalities, then files into the bill of entry. Duties are being paid and products are taken when needed. 



What components are included in the Bill of Entry?

Major components included in the Bill of Entry form are 

  • Name of Business
  • Business address of the Importer 
  • Consignment details 
  • Custom details 
  • Monetary value and description 
  • Destination port
  • Name and address of the Exporter
  • Licence number of Importer 
  •  Import duty value and the maturing rate
  • Port code (a 13-digit code - the initial 6 depicts the port code and the next 7 represents the bill of entry number)
  • IGST payable 
  • Freight charges
  • Compensation cess payable


Suggested Read: What is GSTIN Number

Documents required for Bill of Entry!

Documents required may vary from type and nature of the import, initial documents required to avail Bill of entry are 

  • Insurance documents 
  • Invoice of shipping 
  • Packing list 
  • Letter of credit and Bank draft 
  • Bill of lading
  • CHA or importer’s declaration 

Who requires a Bill of Entry?

Bill of entry is used for different purposes like bond clearing, personal use. 

One can claim Input Tax credit on the items only after issuing of the bill of entry from the respective entities 

  • Entities that import goods from other countries 
  • Companies that sell goods purchased from SEZs within India. 

After the submission of the BOE, the customer officer examines the items and the importer pays taxes like GST, customs duty and IGST. thereafter importer can seek input tax credit compensation cess for the taxes paid. Compensation claims on customs duty cannot be paid. 


Read Article: What is Supply Chain Finance?


Conclusion 

A Bill of Entry is a legal document that facilitates the import of goods from one country to another. It is a significant document that helps customs authorities in monitoring and monitors the inflow of goods very much helpful in the collection of taxes. To make the importers understand the different types of Bills of entry we have analysed all 3 types of it including the sections of the customs act dealing with it. 


Along with the types we have also discussed the associated components, documents required and who needs a bill of entry. 


Suggested read: Know the detailed meaning of the Bill of Entry, meaning, types and documents 


FAQS on Types of Bill of Entry!

Who can issue a Bill of entry?

Importer and Exporter both can issue Bill of Entry. 


What is the validity of the Bill of Entry?

A period of 30 days is allowed for the presentation of an advanced bill of entry. 


What is the colour of the Bill of entry?

  • Bill of entry for Home-consumption - White colour
  • Bill of Entry for Warehousing / Bond bill of entry - Yellow colour 
  • Bill of Entry for Ex-Bond - Green colour 

What is a green and red channel?

Custom clearance of arriving passengers has two channel system 

  • Green channel for those passengers who don’t have taxable goods
  • Red channel for passengers who have taxable goods 

Is the Bill of Entry and Bill of Lading the same?

A Bill of lading is a document that states goods have been loaded through air or water and a Bill of entry is a legal document issued by a customs authority on imports and exports of goods. 

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