REGULATORY DOCUMENTS Dr Navneet Gera

DR NAVNEET GERA 1
SESSION OBJECTIVES
• To discuss the significance of
regulatory documents.
1
• To demonstrate the various
commercial and regulatory
2 documents and its significance.

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REGULATORY DOCUMENTS
Regulatory documents – are those that are prescribed by
different govt. departments, bodies of compliance of
formalities under relevant laws, FTDR act 1992, FEMA,
GST act etc.
Regulatory documents are different for different countries.

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REGULATORY DOCUMENTS
1. Shipping Bill/Bill for export

2. Port Trust Copy of Shipping Bill/ Export Application/Dock

Challan-Port

3. Vehicle ticket -Port

4. Freight Payment Certificate-Steamer Agents

5. Insurance Premium Payment Certificate- Insurance Co.

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SHIPPING BILL -SB
Permission from Customs is required for exporting as per Customs act 1962.

Exports by SEA -SB

Land/Rail –Bill of Export

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SHIPPING BILL
Main document for custom clearance. Filed online through CHA in general.
The details in shipping bill includes
Exporter name and address
Buyer name and address
Shipping Bill No
Vessel No
Port of loading
Port of discharge PTO…

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SHIPPING BILL -DETAILS
Foreign exchange details (AD code)
Commercial invoice –no and date
Cargo details (Nature of cargo –Weight etc)
Duty _Export Duty /IGST details
Advance Authorisation
Duty drawback
Container details

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SHIPPING BILL
Online filing -Icegate (Generally by CHA)
Documents can be uploaded (Digital Signature), validated
Shipping Bill has inbuilt provision for AA, Duty drawbacks, Declaration of
Forex
Let us see the format of SB and the procedure by customs to issue
Let Export Order - LEO and
Let Ship Order - Custom Preventive officer

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Regulatory Documents (Shipment)
A. Shipping bill (EDI)
B. Vehicle Ticket (Entry) –no of vehicle/Shipping bill for entry of
vehicle in Port area

Preparation and Processing of Shipping Documents :- As the

goods reaches the port of shipment, the exporter should issue detailed
instructions to the C&F agent for the shipment of cargo along with a
complete set of the documents to be filed online now (checklist).
.PDF format (1 MB) At a time 5 can be uploaded
Verified by digital signature

EDI Procedure (Shipping bill is filed online using icegate (Customs

website)

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d. Customs Clearance: - The cargo must be cleared from the
Customs before it is loaded on the ship. For this, shipping bill is
filed online.

The Customs Appraiser ensures that all the formalities relating to

exchange control, quality control, pre-shipment inspection and
licensing have been complied with by the exporter.

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e. Obtaining 'Carting Order' from the Port Trust Authorities:
- The C&F agent, then, approaches the Superintendent of the
concerned Port Trust for obtaining the 'Carting Order' for moving
the cargo inside the dock.
After obtaining the Carting Order, the cargo is physically moved
into the port area and stored in the appropriate shed.

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 f. Customs Examination and Issue of 'Let Export Order’: -
The Customs Examiner at the port of shipment physically
examines the goods and seals the packages in his presence.
The same can be arranged for at the factory or warehouse of the
exporter by making an application to the Assistant Collector of
Customs.
The Customs Examiner, if satisfied, issues a formal permission
for the loading of cargo on the ship in the form of a 'Let Export
Order'.

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g. Obtaining 'Let Ship Order' from the Customs Preventive
Officer: -
'Let Export Order' must be supplemented by a 'Let Ship Order'
issued by the Customs Preventive Officer. The C&F agent
submits the duplicate copy of Shipping Bill, duly endorsed by the
Customs Examiner, to the Customs Preventive Officer who
endorses it with the 'Let Ship Order'.

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VEHICLE TICKET (CHIT)
The custom officials shall provide with vehicle ticket to get the
goods (cart) enter the custom designated areas for procedural
requirements such as assessment of duty and fulfilling the
requirements to endorse LEO.

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INSURANCE PREMIUM PAYMENT CERTIFICATE
Insurance Premium certificate is the requirement of Shipping Company.
Risk factor is always a subject of concern and hence the cover for Insurance
has to be taken.

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 CONTD..
Document Functions Prepared by
Insurance An insurance policy is an insurance document Insurer or
Policy/ evidencing insurance has been taken out on Insurance Agent
Certificate the goods shipped, and it gives full details of or Insurance
the insurance coverage. An insurance Broker
certificate certifies that the shipment has been
insured under a given open policy and is to
cover loss of or damage to the cargo while in
transit.

Product A certificate to certify the products are Accredited

Testing conformed to a certain international/national Laboratories
Certificate technical standard, such as product quality,
safety and specifications, etc.
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FREIGHT PAYMENT CERTIFICATE
This document is an evidence that the payment has been made towards the
freight charges levied by the shipping company.

This also safeguards in case of second bill of lading is required due to loss of
original bill of lading.

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REGULATORY DOCUMENTS -FOREX
To realize export proceed within stipulated period of 270 days. RBI keeps a
track with the help of following documents
A) EDF forms – Exchange declaration form – This is used along with
Shipping Bill. These documents are filed in duplicate with customs. Custom
authorities shall provide running serial number on both the copies.
Customs forwards the original copy to RBI and duplicate to exporter.
B) SOFTEX form – Prepared in triplicate for export of computer software.

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IMPORT DOCUMENTATION
1 e-IEC
2. Bill of Entry (BE)
BE for home consumption(White)

BE for warehousing(yellow)

BE Ex-bond(Green in colour)

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IMPORT DOCUMENTS
e-IEC Number

Bill of Entry

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IMPORT DOCUMENTS

The basic document for import document is Bill of Entry.

Bill of Entry - This is an important document which every importer has to

submit under section 46. An importer is required to present Bill of entry for
noting to customs department in order to get the custom clearance.

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BILL OF ENTRY PRESENTED HAS THE FOLLOWING
FEATURES:
1. Bill of Entry comprises of the importers details –Importer’s
name and address, Importer’s IEC number, Port of shipment,
Vessel No, CHA code no, Origin of goods, Port of
consignment.
2. Description of goods, Classification of goods, Value of
Imported goods.
3. Particulars of Goods imported in number, quantity and
packages.
4. Duties to be levied on imported goods.
5. Weight, Freight Insurance, Currency and the declaration by an
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importer.
SUBMISSION
Bills of Entry should be submitted in quadruplicate – original and duplicate
for customs, triplicate for the importer and fourth copy is meant for bank for
making remittances.
Under EDI system, Bill of Entry is actually printed on computer in triplicate
only after ‘out of charge’ order is given. Duplicate copy is given to importer.

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TYPES OF BILL OF ENTRY

BILL OF ENTRY FOR HOME CONSUMPTION (white in Colour)

BILL OF ENTRY FOR WAREHOUSING (Yellow in Colour)

BILL OF ENTRY FOR EX-BOND CLEARANCE (Green in Colour)

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FILING OF BILL OF ENTRY

Normally, Bill of Entry is filed by CHA on behalf of the importer. Customs

Documents to be submitted by Importer - Documents required by customs
authorities are required to be submitted to enable them to
(a) check the goods
(b) decide value and classification of goods and
(c) to ensure that the import is legally permitted.

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CONTENTS OF BILL OF ENTRY
The main contents of the Bill of Entry are :
(a) Name and address of the importer.
(b) Name and address of the exporter. .
(c) Import licence number of the importer.
(d)Name of the port/dock where goods are to be cleared.
(e) Description of goods.
(f) Value of goods.
(g) Rate and amount of import duty payable.
(h)Other relevant documents.

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THE DOCUMENTS THAT ARE ESSENTIALLY REQUIRED
ARE:
Invoice
Packing List
Bill of Lading / Delivery Order
GATT declaration form duly filled in
Importers / CHAs declaration duly signed
Import Licence or attested photocopy when clearance is under licence
Letter of Credit / Bank Draft wherever necessary

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 CONTD..

Insurance memo or insurance policy

Industrial License if required
Certificate of country of origin, if preferential rate is claimed.
Technical literature.
Test report in case of chemicals
Advance License /DEPB in original, where applicable
Split up of value of spares, components and machinery
No commission declaration. – A declaration in prescribed form about correctness
of information should be submitted.
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 ASSESSMENT OF IMPORT DUTY AND
CLEARANCE
Noting of Bill of Entry - Bill of Entry submitted by importer or Customs
House Agent is cross-checked with ‘Import Manifest’ submitted by person in
charge of vessel / carrier. It is noted if the description tallies. ‘.

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 Date of presentation of bill of entry is highly relevant and the
rate of duty as applicable on this date will be considered for
calculating the duty payable. Bill of Entry is accepted only after
proper scrutiny and various declarations given in bill of entry
and attached documents like invoicing, bill of lading etc.
 If such documents are not attached, the authorities can refuse to
accept the Bill of Entry Prior Entry of Bill of Entry - After the
goods are unloaded, these have to be cleared within stipulated
time - usually three working days. If these are not so removed,
demurrage is charged by port trust/airport authorities, which is
very high. Hence, importer wants to complete as many
formalities as possible before ship arrives.

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ASSESSMENT OF CUSTOMS DUTY

Section 17 provides that assessment of goods will be made after Bill of Entry is
filed.
There are various Appraising groups for different Chapter headings. Each group
is under an Assistant/Deputy Commissioner. Group consists of ‘Examiners’ and
‘Appraisers’.

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CUSTOM CLEARANCE FOR IMPORTED GOODS
Import Manifests

Entry in the Import Department of Customs House

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APPRAISING THE GOODS -
Appraiser has to
(a) correctly classify the goods
(b) decide the Value for purpose of Customs duty
(c) find out rate of duty applicable as per any exemption notification and
(d) verify that goods are not imported in violation of any law.

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VALUATION OF GOODS - As per rule 10 of Customs Valuation Rules, the
importer has to file declaration about full 'value' of goods.
APPROVAL OF ASSESSMENT - The assessment has to be approved by
Assistant Commissioner,

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PAYMENT OF CUSTOMS DUTY - After assessment of duty,
necessary duty is paid. Regular importers and Custom House
Agents keep current account with Customs department. The duty
can be debited to such current account, or it can be paid in
cash/DD through
TR-6 challan in designated banks.

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PROCEDURE TO BE FOLLOWED BY THE
CARRIER
The 'person in charge of conveyance' (carrier of goods) has to follow prescribed
procedure.

Arrival at customs port/airport only - Section 29 provides that person in-charge of a

vessel or an aircraft entering India shall call or land at customs port or customs
airport only. It can land at other place only if compelled by accident, stress of
weather or other unavoidable cause.

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 PRESENTATION OF BILL OF ENTRY FOR
APPRAISAL

With Following Documents –

Import Licence, Exporter’s Invoice, Copy of LC

2 Copies of Packing List
Certificate of Origin
Test Certificate
Customs Declaration

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D- CLEARANCE OF GOODS –DUTY ETC

E- Warehousing the Goods

F- Import Follow Up

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Thanks

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