Import and export transactions are heavily reliant on documentation. An unorganized or missing set of documents can cause immeasurable distress to all stakeholders In the absence of office work, importers and exporters cannot surrender or acquire their shipments. There may even be a penalty and a setback in their credibility.
The following topics will be discussed:
How the authorities reduce documentation for export-import
In order to export products via sea, exporters need three key documents
In order to import products that are arriving via sea, importers need three key documents
For more information on which shipping documents are required for customs clearance, please read our blog post.
Documentation for export and import operations and how to reduce it.
To begin with, a brief explanation of import-export documentation guidelines in India.
Up until five years ago, exporters and importers had to prepare seven to eight obligatory documents - plus any additional documents that might be required, depending on the type of products being shipped and the country of importation and exportation. Therefore, the procedure was time-consuming and expensive. It was also cited as a factor in India's poor performance at the World Bank's Ease of Doing Business Index. India was ranked 142 of 189 nations in 2014 (it has since climbed to 63 out of 189). Within the same year, the Department of Commerce formed an inter-ministerial committee to look for ways to reduce the amount of paperwork associated with imports and exports. By 2020, the goal was to improve the export-import process as well as India's ranking in the Ease of Doing Business. It was recommended that import and export documents be whittled down to three each.
The suggestions have been approved. In a notification issued by the Directorate General of Foreign Trade (DGFT), a department of the Ministry of Commerce and Industry that formulates and implements India's Foreign Trade Policy, the modifications were announced. The following are the 3 key documents for exports and imports under the revised Foreign Trade Policy, which took effect in April 2015.
Must-have Shipping Documents for Exports
Bill of Lading
Documents that are essential to exporters. It is a mandatory document that must be signed by three parties: the exporter, the shipping line, and the importer. An exporter needs a complete set of bills of lading from the shipping line/freight forwarder and dispatch it to the importer/importer's bank for easy transportation.
The following information appears on this bill of lading:
Description, amount, weight of products
Name and address of consignee
Terms of sale
2.Commercial Invoice cum Packing List
A settlement invoice of sale is issued by an exporter to an importer. Due to this, they are able to determine responsibilities and taxes due on the products.
The document contains information such as:
Name, address of seller (exporter)
Name, address of buyer (importer)
Value, amount of products
{An itemized packing list contains information about the products.|In a packing list, product information is listed item by item.|An itemized packing list contains information about the products.] In addition, it corrects the tally at the point of clearance.
It contains:
Description of the products
Quantity and weight (gross and net) of the products
Number of packages
Type of packaging (PP,Jute, BOP , Laminated etc)
Marks and numbers (symbols/numbers positioned on every piece of more info shipment in a cargo to discover them)
Carrier’s (ship) name
Date of export
Export licence number
Letter of credit score number
There used to be separate files for the economic bill and packing listing.
3. Bill of Entry
An export bill or shipping bill is a type of customs clearance application that is submitted by the exporter. Using this information, customs determines whether an exporter has taken advantage of government incentives, such as:
Various tax exemptions, rebates, and refunds
Export benefits under various government programs
Import documents required
Bill of Lading
For exporters and importers alike, it's an essential document. An exporter and an importer must share a bill of lading. A bill of lading is required for importers to accept goods at their end.
2. Commercial Invoice cum Packing List
Similarly, the importer needs this document as well. Customs clearance is most often determined by the commercial invoice and packing list.
3. Bill of Entry
Finally, importers must have a bill of entry. At the port of entry, customs authorities inspect and clear goods based on a declaration from the importer. A policy or sales invoice is matched with this bill's information.
Included in this information are:
Type of cargo
Value of the goods
Quantity of the goods
This was a quick overview of the three documents that importers and exporters should always have on hand. It does not mean that these are the only documents required. It's all about paperwork in the shipping process. Customs may require importers and exporters to submit additional documentation for the processing of their goods, depending on various factors.