CBEC to reduce customs documentation for imports/exports

VERENDRA KALRA & CO
CHARTERED ACCOUNTANTS
NEWSFLASH – INDIRECT TAX
Like always,
Like never before…
CBEC reduces the number of documents
required by Customs for import and export
of goods.
An Overview
In order to simply the customs procedures &
overcome the hassles, a welcome move has been
made by CBEC. Vide Circular no. 01/2015 dated
12th Jan’15, it has been clarified by the Board that
there shall not be any requirement of separate
packing list in case commercial invoice cum packing
list contains following details in addition to details
in commercial invoice:
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7) Types of Packages (such as pallet, box, crates,
drums etc.)
However, said option shall be granted to the
importer/exporter.
Henceforth, for customs purposes a commercial
invoice cum packing list (with details stated
hereinabove) would suffice but if importer/exporter
desires to give a separate packing list for some
reason, the same would also be accepted,
like prevailing procedure.
Circular
1) Description of goods
2) Marks & Numbers;
3) Quantity;
4) Gross Weight;
Circular No. 01/15-Customs
F. No. 450/25/2013-Cus IV (Pt.)
Dated 12.01.2015
Subject: Merging of Commercial invoice and
packing list – reg
5) Net Weight;
6) Number of Packages;
Simplification of Customs procedures for enhanced
ease of doing business and trade facilitation is the
top priority of the Government. One of the
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identified areas for such simplification is reduction
in the number of mandatory documents required
by Customs for import and export of goods.
2. As per the extant Customs procedures for both
import and export, an importer / exporter is
required to submit a commercial invoice and
packing list along with the Customs declaration
form viz. Bill of Entry/Shipping Bill. Both commercial
invoice and packing list are critical for Customs
purposes as the former evidences the value of the
import/ export goods while the latter facilitates
examination of goods for ascertaining correctness
of duty and quantity. However, there are many
identical data fields in a commercial invoice and
packing list. Therefore, an exercise was undertaken
to explore the feasibility whether these documents
can be merged into one document, which would
have the advantage of reducing the total number of
documents to be submitted to Customs with
resultant benefit to trade. In this regard, it is seen
that the following data fields / information are
invariably contained in a packing list (other than the
common data fields / details of commercial
invoice):
Description of Goods;
Marks and Numbers;
Quantity;
Gross Weight;
Net Weight;
Number of Packages;
Types of Packages (such as pallet, box, crates,
drums etc.).
above mentioned data fields / information in
addition to the details in a commercial invoice, a
separate packing list should not be insisted upon by
Customs. However, the option should be given to
the importer/exporter to do so. In other words, for
Customs purposes a commercial invoice cum
packing list (with details of marks and numbers as
mentioned in para 2 above) would suffice but if
importer/exporter desires to give a separate
packing list for some reason, the same would also
be accepted, as at present.
4. Board desires that all Chief Commissioner of
Customs should ensure that above guidelines are
complied with scrupulously by the field formations.
Wide publicity may also be given to trade and
industry stakeholders to sensitize them about the
guidelines. Chief Commissioners of Customs should
also monitor compliance thereof at their level.
5. Difficulty, faced, if any may be brought to the
notice of the Board.
Yours sincerely,
(Pawan Khetan)
OSD (Customs IV)
3. The Board has decided that as a measure of
simplification, in case an importer/exporter submits
a commercial invoice cum packing list that contain
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© 2014 Verendra Kalra & Co. All rights reserved.
This publication contains information in summary
form and is therefore intended for general
guidance only. It is not a substitute for detailed
research or the exercise of professional judgment.
Neither VKC nor any member can accept any
responsibility for loss occasioned to any person
acting or refraining from actions as a result of any
material in this publication. On any specific
matter, reference should be made to the
appropriate advisor.
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