In: Operations Management
There are many different types of certificates that can be requested by the importing country or the importer. List and describe two of them. Be sure to discuss the purpose of each.
There are various types of documents required for customs clearance. These are required to know the origin of goods, to do a quality inspection, etc. It usually depends on what type of goods are being shipped. It may also be different according to the country of origin and its destination. However, there a still some general documents that most businesses need to submit when importing or exporting goods.
Bill of Entry
The Bill of entry is one of the main import documents. It is
required for import customs clearance. The Bill of Entry is filed
by CHA or importer duly signed and it is a legal document. Bill of
Entry is one of the measures of ‘total outward remittance of the
country’ which is managed by Reserve Bank and Customs department.
The Bill of entry should be filed within thirty days of the arrival
of products at a customs location.
The purpose of the bill of entry is to know the precise nature,
precise amount, and worth of products that have landed or are being
shipped out. The Bill of entry is examined by the customs authority
to check its accuracy and conformity with the laws. Once filing a
bill of entry along with necessary import customs clearance
documents, assessment and examination of products are done by
involved customs officials. Once all essential customs formalities
are completed, a ‘pass out order’ is issued below such a bill of
entry. Once the importer or his approved customs agent obtains
‘pass out order’ from the customs official, the products can be
moved out of customs. Once all the importing charges are paid then
finally the goods are taken out of customs place to importer’s
place.
Commercial Invoice
A commercial invoice is a customs document utilized in foreign
trade. It is used as a customs declaration provided by the person
or corporation whose products are crossing international borders.
The Commercial invoice is one amongst the most documents utilized
by customs in deciding customs duties. A Customs invoice would
include a statement saying that the invoice is true, and it is
signed.
The purpose of a commercial invoice is the value assessment of the products based on the conditions of delivery of goods mentioned in the commercial invoice produced by the importer at customs location. Commercial Invoice is examined by the concerned appraising officer to verify the actual value of the product with the mentioned value of the product in the invoice. With the help of a commercial invoice, the officer can check to know if goods supplied corresponds with the order mentioned in the invoice both in terms of quality and quantity. By inspecting the goods on import, it helps in the prevention of fraudulent activities of importer or exporter by over-invoicing or under-invoicing. It is also the evidence of a sale and can be used as a proof of sale in a court of law. So Invoice plays a major role in value assessment of the products.
Apart from these two documents, there are other documents that could be required by the importing country or the importer like Bill of Lading/Airway Bill, Import Licence, Insurance Certificate, Purchase order, Technical write up, Central excise document if any, test reports if any, etc.