Documents play an important role in import/ export transactions. An unorganized or missing set of documents can cause immeasurable distress to all stakeholders The importer or exporter cannot surrender or acquire their shipment if the office work has not been 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.
What the authorities can do to reduce export-import documentation.
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. The procedure was tedious and expensive as a result. India also scored poorly on the World Bank's Ease of Doing Business Index due to this issue. 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. 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.
Must-have Shipping Documents for Exports
Bill of Lading
Documents that are essential to exporters. 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 more info 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
Economic bill and packing list were previously separate files with the same fields.
3. Bill of Entry
A shipping bill or export bill is a type of customs clearance application 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
This is a must-have document for both exporters and importers. Both the exporter and the importer must sign the bill of lading. An importer cannot accept goods at his end without a bill of lading.
2. Commercial Invoice cum Packing List
Importers also need 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.
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. 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.