All goods imported into India have to pass through the procedure of customs for
proper examination, appraisal, assessment and evaluation. This helps the custom
authorities to charge the proper tax and also check the goods against the
illegal import. Also it is important to note that no import is allowed in India
if the importer doesn’t have the IEC number issued by the DFGT. There is no
requirement of IEC number if the goods are imported for the personal use.
Bill of Entry
A Bill of Entry also known as Shipment Bill is a statement of the nature and
value of goods to be imported or exported, prepared by the shipper and presented
to a customhouse. The importer clearing the goods for domestic consumption has
to file bill of entry in four copies; original and duplicate are meant for
customs, third copy for the importer and the fourth copy is meant for the bank
for making remittances.
If the goods are cleared through the EDI system, no formal Bill of Entry is filed
as it is generated in the computer system, but the importer is required to file
a cargo declaration having prescribed particulars required for processing of the
entry for customs clearance.
In the non-EDI system along with the bill of entry filed by the importer or his
representative the following documents are also generally required:-
Bill of Lading or Delivery Order/Airway Bill
GATT declaration form duly filled in
Importers/ CHA’s declaration
License wherever necessary
Letter of Credit/Bank Draft/wherever necessary
Industrial License, if required
Test report in case of chemicals
Adhoc exemption order
DEEC Book/DEPB in original
Catalogue, Technical write up, Literature in case of
machineries, spares or chemicals as may be applicable
Separately split up value of spares, components
Certificate of Origin, if preferential rate of duty is
No Commission declaration
Amendment of Bill of Entry
Whenever mistakes are noticed after submission of documents, amendments to the
bill of entry is carried out with the approval of Deputy/Assistant Commissioner.
Green Channel facility
Some major importers have been given the green channel clearance facility. It
means clearance of goods is done without routine examination of the goods. They
have to make a declaration in the declaration form at the time of filing of bill
of entry. The appraisement is done as per normal procedure except that there
would be no physical examination of the goods.
Payment of Duty
Import duty may be paid in the designated banks or through TR-6 challans.
Different Custom Houses have authorised different banks for payment of duty and
is necessary to check the name of the bank and the branch before depositing the
Prior Entry for Shipping Bill or Bill of
For faster clearance of the goods, provision has been made in section 46 of the
Act, to allow filing of bill of entry prior to arrival of goods. This bill of
entry is valid if vessel/aircraft carrying the goods arrive within 30 days from
the date of presentation of bill of entry.
Import of goods under specialized scheme such as DEEC and EOU etc is required to
execute bonds with the custom authorities. In case failure of bond, importer is
required to pay the duty livable on those goods. The amount of bond would be
equal to the amount of duty livable on the imported goods. The bank guarantee is
also required along with the bond. However, the amount of bank guarantee depends
upon the status of the importer like Super Star Trading House/Trading House etc.
Bill of Entry for Bond/Warehousing
A separate form of bill of entry is used for clearance of goods for warehousing.
Assessment of this bill of entry is done in the same manner as the normal bill
of entry and then the duty payable is determined.
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