When it comes to import/export, documents play a key role. Missing or incorrectly organized documents can cause untold problems for 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.
We will discuss the following topics:
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
Additionally, you may find our blog post on which shipping documents are necessary for clearance of customs of interest.
How the authorities reduce documentation for exports and imports
A brief description of import-export documentation in India and current government guidelines follows.
Up until 5 years ago, exporters and importers were required to prepare seven to eight mandatory documents - plus any extra documentation that may be needed depending on the shipment type and regulations and guidelines specific to each country. It was a tedious and expensive procedure as a result. It was also cited as a factor in India's poor performance at the World Bank's Ease of Doing Business Index. In 2014, India ranked 142 out of 189 countries (it has since risen to 63 out of 189). To reduce the amount of paperwork required in imports and exports, the Department of Commerce established an Inter-Ministerial Committee in the same year. Moreover, India's ranking in Ease of Doing Business was to be raised to number one and exports doubled to $900 billion by 2020. Import and export documents should be reduced to three each for imports and exports, according to the committee.
All suggestions have been approved. Modifications were made by the Directorate General of Foreign Trade (DGFT) - the department that formulates and implements India's Foreign Trade Policy. From April 2015, the following are the 3 key documents for exports and imports under the revised Foreign Trade Policy.
Important shipping documents for exports
Bill of Lading
Exporters' most important shipping document. 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.
This bill of lading contains the following information:
Description, amount, weight of products
Name and more info 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. Based on the purchase price, they can determine the responsibilities and taxes due on the products.
Among the information it contains are:
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.] At the point of clearance, it simplifies their exam and corrects tallying.
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 shipment in a cargo to discover them)
Carrier’s (ship) name
Date of export
Export licence number
Letter of credit score number
Previously, the economic bill and packing list were separate files with the same fields.
3. Bill of Entry
An export bill or shipping bill is a type of customs clearance application that is submitted by the exporter. Customs use this information to determine whether a company has benefited from government incentives, such as:
Various tax exemptions, rebates, and refunds
Export benefits under various government programs
Import documents required
Bill of Lading
An exporter or importer must have this document. The exporter and importer must share the bill of lading. Bills of lading are required for importation at the importer's end.
2. Commercial Invoice cum Packing List
It is also necessary for the importer to have this document. For the most part, customs clearance depends on the commercial invoice cum packing list.
3. Bill of Entry
The final requirement for importers is a bill of entry. Customs authorities inspect and clear goods at the port of entry based on a declaration that importers make. A policy or sales invoice is matched with this bill's information.
The following details are included:
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. Shipping is all about paperwork. Customs may require importers and exporters to submit additional documentation for the processing of their goods, depending on various factors.