Export & Import Documentation: Key Forms and Required Papers

India’s international trade (imports+exports) is governed by the provisions of the Foreign Trade Policy (FTP), 2023, which sets the objective, rules, and incentives for foreign trade. Additionally, the Customs Act, 1962, determines the rules and duties for the movement of goods, while trade agreements and government schemes boost trade activities.

Most items fall within the Open General Licence, making them freely exportable and importable without restrictions or the need for a licence. However, exporters and importers require an Importer-Exporter Code (IEC) for customs clearance and foreign transactions. Traders must ensure compliance with various national and international regulations and submit various documents and certificates.

Importers and exporters require a lot of preparation to make sure their orders are not rejected by Indian or overseas customs authorities. Here are the mandatory requirements:

Prerequisites for Importers

• Importers must have a valid 10-digit IEC number from the Directorate General of Foreign Trade (DGFT).

• Items not covered by general licences fall under three categories of restrictions. Restricted items are allowed with preauthorisation, while prohibited items are banned entirely. The third category, canalized items, can be traded only by government trading agencies.

• Importers need import licences and special licences for restricted items. Advance authorisations allow importers to get advance licences for duty-free imports.

• Importers must submit three mandatory import documents for every shipment order: 1) Bill of Entry, 2) Bill of Lading or Airway Bill, and 3) Commercial Invoice cum Packing List.

• Importers have to provide an import declaration in the Bill of Entry format.

• To clear customs formalities and overseas regulations, importers may need additional documents, including cargo release orders, inspection reports, etc.

Prerequisites for Exporters

• A business PAN card, IEC number and Business Identification Number (BIN) are mandatory for exporters.

• Exporters need to register with an Export Promotional Council to get a Registration-cum-Membership Certificate (RCMC).

• The exporter must have a current account with a commercial bank, which can be used to make foreign exchange transactions.

• The three mandatory documents for exports include: 1) Bill of Lading/Airway Bill, 2) Invoice cum Packing Bill, and 3) Shipping Bill or Bill of Export.

• The Indian bank and customs may ask for additional documents, such as a Letter of Credit (for LoC shipments), Certificate of Origin, inspection certificate, etc., as required by the buyer.

Know the mandatory export and import documentation requirements and the role of each document:

Importer-Exporter Code

The Importer-Exporter Code (IEC) is a key identifier for Indian businesses, like PAN is for individual citizens. Having an IEC is mandatory to participate in any international transaction, as it records cross-border transactions. IEC is required by the domestic and foreign customs authorities for clearing shipments, as well as by the importer’s and exporter’s banks.

How to Apply:

• Visit the DGFT website and click on ‘Apply for IEC’.

• Submit your PAN, personal info, mobile number and email address.

• Upload the required documents.

• Pay the fee and submit your application.

Commercial Invoice cum Packing List

The commercial invoice details the financial transaction between the exporter/importer and their overseas partner. It contains the buyer’s and seller’s info, price of goods, quantities, unit prices, and other details required for shipping and customs clearance.

The packing list describes the contents of a shipment, including item descriptions, dimensions, weights, and other details. It closely matches the commercial invoice for cross verification. To simplify import-export documentation, the Indian Government has merged these into a single document.

How to Apply: The product exporter must prepare the invoice cum packing list after packaging the shipment and submit it to the relevant customs department for clearance.

Bill of Lading or Airway Bill

The Bill of Lading is a receipt between the shipper (domestic or foreign) and the carrier that carries shipment details, including the destination address, delivery terms, and goods transported. This bill verifies that the carrier company has received the goods in good condition.

An Airway Bill has the same function as a Bill of Lading, but it’s for air freight. These are always non-negotiable bills.

How to Apply: The shipping company generates the Bill of Lading/Airway Bill after receiving the consignment and checking its condition.

Insurance Certificate

Most buyers require marine and cargo insurance to cover the risks of losses or damages from unforeseen events, including accidents, thefts, and natural disasters. The contract type determines who pays for insurance coverage. For Cost, Insurance and Freight (CIF) contracts, the exporters must get insurance, while for Cost and Freight (C&F) and Free On Board (FOB) contracts, the importers pay for insurance.

Once you’ve bought a policy, you will get an insurance certificate from the provider. This document is usually required at the port by the customs authorities.

How to Apply: Apply for marine insurance online on the TATA AIG portal. After you’ve purchased the insurance cover, you will get an online insurance certificate.

Below, we have listed the main documents required by importers and their functions:

Import Licence

Most goods don’t require importers to get any licence. However, an import licence is necessary for bringing in certain restricted goods, such as firearms, chemicals, bulk agricultural goods, etc. An import licence for capital goods is valid for 24 months, while other licences are valid for 18 months.

How to Apply: Before applying, identify the product by checking the Indian Trading Clarification (ITC) for its HS (Harmonised System of Coding) code. Know the relevant regulations and apply for a licence with the regional licensing authority.

Bill of Entry

The bill of entry is a legal document submitted by an importer to the customs department to get clearance for imports. It provides details of the items to be imported, including their nature, quantity, value, IGST and customs duty. After receiving the shipment, customs officials check if the imported goods match the bill of entry before giving a ‘pass-out order’.

How to Apply: Importers need to furnish an import declaration along with licences and a BIN to the Indian Customs to get a Bill of Entry. No formal Bill of Entry is generated if your goods pass through the Electronic Data Interchange (EDI), but you need to file a cargo declaration. For a Bill of Entry without EDI, you need to furnish certain import documents to get the shipment.

Certificate of Origin

This document confirms the country and location where the goods were originally manufactured. This certificate helps to comply with Indian foreign policies and meet the eligibility for preferential tariff rates and customs duties under various trade agreements. For example, if the country of origin has a free trade agreement (FTA) with India, importers can get lower duties.

How to Apply: The exporters are required to submit the origin certificate for their shipped products. These are available on the DGFT's Certificates of Origin (COO) portal.

Letter of Credit

The Letter of Credit is a document for a financial instrument issued by the importer’s bank to guarantee payment to the exporter after certain conditions are fulfilled. The importer can set conditions like delivery date or submission of shipping bills to confirm payment. While it’s not mandatory, many foreign exporters require payments via LoC.

How to Apply: You can apply for a Letter of Credit with any Indian commercial bank that supports forex transactions and SWIFT payments.

Purchase Order

This document describes the terms and conditions of the sales contract and is used to confirm the order with the overseas exporter. It’s required by the customs department to assess the value of the shipment. For shipments via a Letter of Credit, you need to submit a copy of the LoC along with the Purchase or Export Order.

How to Apply: Create a purchase order with details, such as cost, requirements, currency, etc., and negotiate with the exporter to finalise it.

Check the exporter’s document list for the mandatory and additional requirements:

Registration-cum-Membership Certificate

The RCMC is a mandatory certificate to export products as per the terms of FTP 2023. It validates the concerned exporter with an agency registered with the Indian Government. Exporters can either register with a product-specific Export Promotional Council (EPC) or the Federation of Indian Exporters Organisation (FIEO) for uncategorised goods or multiple goods.

How to Apply: To get an RCMC, you need to apply with the Form ANF 2C with the concerned EPC. Alternatively, you can log in to the DGFT portal and apply for an RCMC with your IEC and Aadhaar card.

Export Licence

An export licence is a legal authorisation for exporting goods included under the ITC (HS) classification system. Restricted items have a set of export procedures given in the licence. Licences may also be required if the importer’s country has certain restrictions. Items such as military equipment, sensitive technology, rare earth materials, dual-use items, and certain chemicals require export licences.

How to Apply: Exporters can apply for an export licence on the DGFT website by going to ‘Services’ > ‘Export Licence Application’. Then, submit your online application with technical specifications and end-user agreements.

Bill of Export

Exporters need to submit a Bill of Export or Shipping Bill to the customs to obtain clearance for shipment. The Bill of Export is one of the mandatory documents needed for exports. It’s obtained at a customs station, while the Shipping Bill is obtained at a seaport or airport. There are different types of Bill of Export with different colour schemes for duty-free goods, dutiable goods, etc.

If the goods pass via the EDI system, the system generates an electronic Shipping Bill Number, which is printed and given to the exporter. In the non-EDI system, the exporter must file the bill in the prescribed format.

How to Apply: Exporters need to apply for the Shipping Bill or Bill of Export on the ICEGATE portal along with their PAN-based BIN and current account details.

Inspection Certificate

Certain buyers may require pre-shipment inspections on the goods and their packaging. Pre-shipment inspections are mandatory for items like scrap metal, second-hand machinery, food products, agricultural commodities, etc. Foreign buyers may insist on using their own country’s nominated agencies or hire third parties.

How to Apply: Exporters can get the inspection certificate directly from the agency or party visiting them in-person.

Importing and exporting goods is not easy and requires sufficient preparation. Import and export documentation requires mandatory documents, such as IEC, Bill of Export/Entry, invoice cum packing list and Bill of Lading/Airway Bill. Besides our extensive list, you may require additional documents, such as customs declarations, product manuals, forex control forms, etc.

To stay on the safe side, you can consider applying for marine insurance online for sufficient coverage of your business-related risks. TATA AIG Transit Insurance is the perfect choice for comprehensive protection for your shipments from accidents, collisions, thefts, natural disasters and other risks.