When it comes to import/export, documents play a key role. An unorganized or missing set of documents can cause immeasurable distress to all stakeholders A shipment cannot be surrendered or acquired if the office work is not completed. They may even face a penalty and lose 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.
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 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. India also scored poorly on the World Bank's Ease of Doing Business Index due to this issue. Earlier this year, India ranked 142 out of 189 countries (it now ranks 63). An Inter-Ministerial Committee was established by the Department of Commerce to examine ways to reduce the amount of paperwork associated with imports and exports. The mission was to improve the export-import process and India's ranking in the Ease of Doing Business and double exports to $900 billion by 2020. It was recommended that import and export documents be whittled down to three each.
The suggestions have been approved. India's Foreign Trade Policy was modified by a notification released by the Directorate General of Foreign Trade (DGFT). DGFT is part of the Ministry of Commerce and Industry and formulates and implements India's Foreign Trade Policy. The following are the 3 key documents for exports and imports under the revised Foreign Trade Policy, which took effect in April 2015.
Important shipping documents for exports
Bill of Lading
Exporters' most important shipping document. Lading is the act of setting a shipment on a ship, and the bill of lading 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
The exporter has issued an invoice of sale to the importer as part of a settlement agreement. Based on the purchase price, they can determine the responsibilities and taxes due on the products.
The document includes 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 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
A shipping bill or export bill is a type of customs clearance application submitted by the exporter. The information provides customs with a way to determine whether an exporter has received government incentives, such as:
Various tax exemptions, rebates, and refunds
Export benefits under website various government programs
Documents needed for imports
Bill of Lading
For exporters and importers alike, it's an essential document. An exporter and an importer must share a bill of lading. Bills of lading are required for importation at the importer's end.
2. Commercial Invoice cum Packing List
Importers also need this document. In most cases, customs clearance is based on the commercial invoice and packing list.
3. Bill of Entry
Finally, importers must have a bill of entry. Customs authorities inspect and clear goods at the port of entry based on a declaration that importers make. Bill information is compared with insurance policies or sales invoices.
Included in this information are:
Type of cargo
Value of the goods
Quantity of the goods
This was a brief summary of the three documents that importers and exporters should always have on hand. This does not mean that these are the only documents required. The shipping process involves a lot of paperwork. For their goods to be processed at customs, importers and exporters may need to submit additional supporting documentation, depending on various factors and case-by-case.