BILL OF ENTRY (BOE)

A Bill of entry is a document filed by the importers for importing goods. A

custom department then examines this document for clearance. Imported
goods have to go through some legal procedure in the country in which the
goods have arrived.
The BOE is a critical aspect of the customs clearance process because it allows
the government to maintain a record of the flow of goods and services to and
from the country.
It is mandatory for an international trader to file a BOE for any product that
he/she imports into the country.
A BOE has legal relevance in the export-import process. In this sense, it ensures
complete transparency between private businesses and the government,
acting as a critical document based on which customs permit cargo clearance.
Moreover, importers can claim duty credits if applicable, after the clearance of
goods by using this document. The BOE also serves as a necessary record for
auditing or inspection purposes.

Types of BOE
The Central Board of Indirect Taxes and Customs has classified the BOE into
three categories based on the nature and purpose of imported goods. Three
different forms-- Form I, Form II, and Form III are each designated for various
types of bills.
1. BOE for house consumption
The color white indicates the BOE for house consumption under section 46 of
The Customs Act, 1962. This BOE is issued for goods imported by an individual
for personal or business consumption.
2. BOE for warehousing
Sections 46 and 60 of The Customs Act, 1962, allots the color buff (light
brownish yellow) to this type of BOE. Also known as a bond BOE, this
document must be filed if the importer doesn't intend to furnish import duty
at the exact time of import. Instead, the importer can hold off their products in
storage until he/she clears the dues.
3. BOE for Ex-Bond Goods
The Customs Act, 1962, indicates the BOE for ex-bond goods with the color
green. This document is used when the importer wants the clearance of
warehoused goods for home consumption

Who file BOE ?

Importer or Customs broker files BOE with the customs department to clear
the goods out of customs.

Process of filing a BOE ?

1. Choose the mode of shipment and have right sales invoice, insurance
documents, valuation and classification of goods ready.
2. Choose the correct customs commissionerate according to your mode of
shipment.
3. File BOE via Indian customs EDI system.
4. Fill necessary information and submit the form. You will receive a
Unique Bill of Entry Number.
5. Now pay custom duties i.e. IGST and compensation cess.
6. After payment, the customs officer examines the goods and issues an
“Out of charge” (OCC) if the examination is successful.
7. Now Customs house agent and Importer have to sign the document to
validate it.
8. Now you can track BOE status through Customs department.

How GST or CESS calculated ?

IGST and Cess will be calculated on the sum of total import value and custom
duty levied.
Eg. Total Import value = 1,00,000
Basic customs duty = 10,000
IGST Payable = 1,10,000*IGST Rate
Cess Payable = 1,10,000*Cess rate
Total Value = Value of imported goods + BCD + IGST + Cess
What is the difference between a BOE and a Shipping bill?
The BOE and a shipping bill are vital documents that traders file when moving
goods across the border. However, there is one primary difference between
the two. An importer files a BOE when importing goods into a country, while
an exporter files a shipping bill when exporting goods outside a country.