Save Big on Taxes with Expert Assisted ITR Filing from ₹799!

Got an ITR notice? Talk to our CA for the right response.
Import Export Code

Documentation For IEC in India

Do you have aspirations to goods, but are not aware of the processes involved? Our team at Vakilsearch has all the answers that will ensure a seamless start to your trade business.

The Government of India recently took some steps to make ‘Ease of Business’ a more streamlined process. One of the steps was to reduce the number of documents required for export-import. Now, the number of documents you are required to submit for an IEC number is three.

Before we get into the documentation, you should know that the documents are not the same for all products. However, it is still not difficult to outline the basic documents needed for import customs permission in importing countries. This article will provide you with some broad information on the documentation of import/export customs clearances.

IEC Number Overview

Since there are different goods imported from various nations, it becomes a challenge to have a proper set of documents in the export/import customs liberty methodology. Furthermore, different countries have their own laws, resulting in a variety of methods and customs for approving imports. Every item under import is ordered under a code number acknowledged internationally, which is called the IEC number. Notably, the IEC number today is your company’s Permanent Account Number (PAN), although people who had applied for an IEC number earlier are allowed to use the old code since the IEC number is valid for life. There may be mutual export/import agreements between the legislatures of various nations. Imports and exports from such nations may have exceptions on documentation clearance.

Legal Documents Required for IEC Code

The three legal documents required to complete import customs procedures are.

1. Bill of Entry

The bill of entry is one of the significant documents for import customs permission. As clarified already, the bill of entry is the legal report to be recorded by a CHA (Customs House Agent).

  • The bill of entry is one of the pointers of ‘absolute outward settlement of nations’. It is managed by the Reserve Bank of India and the Customs Office
  • The bill of entry must be documented within 30 days of the influx of merchandise at a customs office
  • After filling the bill of entry alongside essential import customs document clearance, evaluation, and assessment of products are completed by the concerned customs officers
  • After import customs paperwork is completed, a ‘pass out the order’ is given under the bill of entry
  • When a shipper or their approved customs house operator gets a ‘pass out the order’ from concerned officials, the imported merchandise can be moved out of customs
  • The goods can be removed from customs territory to the shipper’s location after paying basic import charges.

2. Commercial invoice and packing list

  • The invoice is the most important document in any business dealings
  • The receipt is one of the documents required for import customs leeway for value examination by concerned customs officials
  • Computable value is determined based on the terms of conveyance of merchandise referenced in the business receipt delivered by the shipper at the customs area
  • The concerned evaluating official checks that the amount referenced in the business receipt matches the genuine market estimation of the same merchandise
  • This strategy for assessment by evaluating officials of customs avoids false exercises of shippers or exporters such as over-invoicing or under-invoicing
  • So, the invoice assumes an important job in value evaluation in import customs clearance.

3. Bill of Lading / Airway bill

The bill of lading or airway bill is one of the most important documents required for import customs clearance.

  • The bill of lading under maritime shipment or airway bill under aircraft shipment is a transporter’s document required to be submitted with customs for import customs approval
  • Moreover, the bill of lading or airway bill provided via the bearer furnishes the details of freight with terms of the conveying.
Unlock exclusive benefits! Obtain your registration cum membership certificate now for privileged access and enhanced opportunities. Join today!

Other Documents Required for IEC Number

Other than the above 3 compulsory documents, below are a few of the common documents to be submitted

1. Import License

Import permits might be required as one of the documents for import customs leeway techniques, as well as rules and regulations under explicit items. According to government regulations, this permit may be needed for bringing in specific merchandise. The government may have controlled the import of specific objects from time to time. Along these lines, the administration demands an import permit as one of the documents required for import customs permission to bring those materials from overseas.

2. Insurance Certificate

An insurance certificate is required for import customs clearance systems. However, it is a supporting document against the trader’s presentation in terms of the conveyance.

  • The insurance certificate under import consignment encourages customs specialists to confirm, with regards to the selling cost, whether protection is required or not
  • This is required to discover an assessable amount that decides the import duty sum
  • A purchase order envelops practically all the terms and conditions of a sale agreement, which empowers the customs authority to accept the given appraisal
  • In case import relegation is under the premise of a letter of credit, the shipper can present a duplicate of letter of credit alongside the documents for import approval.

3. Technical Write Up

The technical write up is considered as one of the records for import clearance under some explicit products.

This document encourages a customs authority to infer the precise market estimation of such imported equipment, thus helping for value evaluation.

4. Industrial license

A copy of an industrial license might be necessary when importing certain specified merchandise. If an importer is able to guarantee some import advantage under government guidelines, an industrial licence may be created to benefit from the advantage. In this situation, a copy of the industrial permit may be sent to customs.

5. Registration cum membership certificate

To benefit from import duty exemptions from government offices with regards to certain specific merchandise, the generation of an RCMC with customs specialists is one of the prerequisites for import clearance. Indeed, in such cases, the merchant needs to provide a registration cum membership certificate alongside import customs approval archives.

6. GATT/DGFT Declaration

Each merchant needs to record GATT and DGFT statements alongside other import customs clearance reports with customs. Moreover, the GATT presentation must be recorded by the importer according to the conditions of the general agreement on tariffs and trade.

Other than the documents mentioned above, the importer/exporter must file any additional documents required. It should be by the government or customs department when importing restricted supplies.

Also Read:

Subscribe to our newsletter blogs

Back to top button


Remove Adblocker Extension