Bill of Entry

A bill of entry is the importer's declaration to Indian Customs for goods arriving in India. Under section 46 of the Customs Act, 1962, the importer of any goods, other than goods in transit or transshipment, must make entry by presenting a bill of entry for home consumption or for warehousing electronically on the customs automated system. The bill must cover all the goods on the bill of lading or other carrier's receipt. The importer declares that its contents are true, produces the invoice and other prescribed documents, and must ensure that the information is accurate and complete and that the goods comply with any restriction or prohibition.

Types of bill of entry

Section 46 provides for two kinds of bill of entry, and section 68 uses a third step for warehoused goods:

• Home consumption: the goods are cleared on payment of duty for use in India
• Warehousing: the goods are assessed and moved into a customs bonded warehouse without paying duty yet. Under section 59 the importer executes a bond for three times the duty assessed
• Ex-bond: clears warehoused goods for home consumption. Section 68 requires a bill of entry for home consumption, payment of the duty, interest, fine and penalties, and a clearance order

When it must be filed

Section 46(3), as amended by the Finance Act, 2021, requires the bill of entry before the end of the day, including holidays, before the day the vessel, aircraft or vehicle arrives at the customs station where the goods will be cleared. The CBIC may set different limits for some cases, but no later than the end of the arrival day. A bill can be filed up to 30 days before the expected arrival. If it is late without sufficient cause, the importer pays late-presentation charges.

Duty, out of charge and release

• Duty: under section 47(2) a self-assessed bill is paid on the date it is presented. If the bill is returned after assessment, duty is due within one day, excluding holidays. Late payment carries interest
• Out of charge: under section 47(1) the proper officer orders clearance for home consumption once satisfied that the goods are not prohibited and the duty is paid. The order can be made electronically on the basis of risk evaluation. The out-of-charge (OOC) order goes electronically to the port or ICD custodian, which then releases the cargo
• Uncleared cargo: under section 48, goods not cleared, warehoused or transshipped within 30 days of unloading can be sold by the custodian after notice to the importer and with the permission of the proper officer

The importer needs an IEC: paragraph 2.05 of the Foreign Trade Policy 2023 bars imports without one unless the importer is exempt, and paragraph 2.06 lists the bill of entry, the bill of lading or air waybill and the commercial invoice cum packing list as the mandatory import documents.

Bill of entry vs US entry summary (CBP Form 7501)

Both are the importer's declaration of what the goods are, what they are worth and what duty is owed. They differ mainly in timing. In the United States, 19 CFR 142.2 requires entry within 15 calendar days after the goods land (it can also be filed before arrival), and the entry summary goes on CBP Form 7501 or its electronic equivalent (19 CFR 142.11). India requires the bill of entry before arrival. In both countries the importer can file itself or through a licensed broker: a customs broker in the US, a customs broker (CHA) in India.

On the USA to India lane

On USA to India shipments the consignee in India, or its licensed customs broker, files the bill of entry. Airlift is an FMC-licensed NVOCC, not a licensed customs broker. Send the bill of lading, invoice and packing list to the consignee's broker before the vessel arrives, because India's filing deadline falls before arrival.