What is a Bill of Entry (BOE)?

Do you know what an admission ticket is?

A Bill of Entry, also known as a BOE, is a statutory document registered by the customs brokers or merchants (e.g. importers) during or prior to the arrival of imported shipments.

As part of customs clearance, it is then written out at the customs office. The importer is entitled to claim the shipments from ITC to complete customs clearance. The BOE (Bill of Entry) can be issued for bond clearance or self-consumption. Note that when applying for BOE during bond release, the bond number and issue date must be provided.

Today’s article is all about what Bill of Entry is and everything you need to know.

Who should use a BOE (Bill of Entry)?

It is important to understand what a receipt is, especially if you are in the shipping industry. So in order to suspect this, you also need clarity about who should apply for the ticket. Below is a list of people who should apply for it.

  • If you are an exporter
  • If you are an importer
  • If you own companies that purchase goods from the Special Economic Zone (SEZ) and sell them within India
  • If you own companies that import products from other countries

The procedure for BOE (Bill of Entry)

As soon as you have submitted the receipt, an authorized customs officer will inspect your goods. Thereafter, the importer of these goods is supposed to pay the necessary duty, GST and IGST indemnity to clear the goods. The importer can then claim the IGST and payment from ITC, but not the standard duty.

The format of a BOE (Bill of Entry)

In accordance with the Rules and Regulations delegated by the Government of India, a sample BOE (Bill of Entry) in GST administration looks like this:

  • Customs agent’s code, importer’s name, residential address and IEC (Import Export Code) and importer’s name and address. In addition, this address is automatically filled in in case the importer is an already registered taxpayer
  • The license number and port code

Fact: Most taxpayers enter their GSTIN or provisional GSTIN in the Import Export Code (IEC) field. In case taxpayers don’t have intermediate or regularization, they can use their PAN or even UIN (Unique Identification Number). In this regard, an ITC for the IGST will be provided to the merchant along with the compensation fee that was spent clearing the goods through customs. However, note that ITC cannot be levied on the primary duty compensated for the products.

  • The name of the container, the port of destination, the country of origin and country code, the country of dispatch together with its code – if the code differs from the country of origin. It also contains the date the bill of lading was declared
  • Information about the goods shipped and their value
  • Details on the raw materials and their evaluation:

Packages and Quantity:

  • The classification of the goods, the serial number and the unit code of the goods
    • Number of packages and their volume or weight
    • Description of the goods and note that the information must be provided for each class individually
    • Customs tariff number containing the exclusion information along with the year

Type of service code:

  • Here the estimated value of the goods and the additional costs such as handling fees and landing fees can be specified
    • The base rate and the standard amount of duty are charged

Additional obligation

  • GST code, IGST, IGST rate and amount
    • CET (Central Consumption Tax Tariff) regarding exemption notice and year
    • SAD (Special Additional Duty) for customs
    • value, tariff and total surcharge

amount of compensation

  • Exemption information on the exact exclusion from the GST indemnity levy
    • Exemption information on the exact exclusion from IGST
    • The total amount of the dutiable value together with customs duties and any additional costs in words and the total amount of units in words

Two declaration and signature sections:

  • One for the Customs House agent
  • One for the importer

In short: In the Import Export Code (IEC) department, the taxpayer must register his GSTIN or provisional GSTIN. If the taxpayer does not have a regular or provisional GSTIN, that person can apply for their PAN. GST refund will be initiated accordingly.

Entry article and permission to publish here provided by Prajakta Pingulkar. Originally written for Supply Chain Game Changer and published on August 12th, 2020.

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