15 April 2016
Bill of Entry is the main key document on which the Customs approves clearance of the cargo and the document is crucial for availing duty credits if any by the Importer post clearance. The Bill of Entry document is also required as an important record for audit purposes and any further inspection from any agencies. Types of Bill of Entry
Depending upon the nature of transaction the Bill of Entry form varies. Few important types of BOE are discussed herein:
BOE for Home Consumption
When an import consignment is required to be custom cleared and the importer wishes to take delivery and use the cargo for internal consumption in his business organization, the Bill of Entry for Home Consumption is filed. The Bill of Entry for Home Consumption is in white color.
BOE for Bonding
If the Importer does not wish to custom clear the imported consignment right away and wishes it to be warehoused at the Customs Bonded Warehouse, then the Bill of Entry for Bonding is submitted, so that the customs can permit the transfer of import shipment to be warehoused at the customs bonded warehouse without payment of duty but on execution of a bond by the importer and postpone the clearance to a future point of time. The importer by filing the Yellow colored BOE for bonding is able to defer the payment of duty until such time that he requires clearing the consignment.
When this BOE for bonding is filed, the customs assess the consignment and determine the duty payable and the importer executed a bond for the required value but is not required to pay the actual customs duty.
Ex-Bond Bill of Entry
When import consignments are not custom cleared immediately on arrival and are warehoused at the customs bonded warehouse, the importer can choose to custom clear the entire consignment or in parts whenever he requires by filing Ex-Bond Bill of Entry to clear the consignment from the warehouse on payment of duty.
The valuation under the Ex-Bond Bill of Entry will take into account the prevailing rates of duty at the time of actual removal of imported consignment from the warehouse and not the duty assessed through Bonding BOE. In case there has been a revision in the tariff, the prevalent tariff at the time of removal from the bonded warehouse will prevail.
Ex-Bond Bill of Entry is green in color and is also called ‘Green Bill’.
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