Bill of Entry explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A Bill of Entry is the legal import declaration filed under Section 46 of the Customs Act 1962 for goods brought into India. It comes in three types — home consumption, warehousing and ex-bond — is filed electronically on ICEGATE, self-assessed under Section 17, and cleared through "Out of Charge" under Section 47.
Overview
Every importer clearing goods through an Indian port, airport or ICD must file a Bill of Entry (BoE). It is the core document on which customs duty is assessed and paid, and on which the importer claims Input Tax Credit of the IGST portion. Filing is fully electronic on the ICEGATE portal and is processed through the Indian Customs EDI System (ICES). A BoE captures the importer's IEC, the classification (CTH/HS code), value, quantity, country of origin, applicable notifications and the duty computation.
Legal Basis
The governing provision is Section 46 of the Customs Act 1962, which requires the importer to present a Bill of Entry for home consumption or for warehousing. Self-assessment is mandated by Section 17, re-assessment and speaking orders flow from Section 17(4)/(5), and final clearance for home consumption is ordered under Section 47. Warehousing is governed by Chapter IX (Sections 57–73A). The electronic form and late-filing charges are prescribed by the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations 2018.
The Three Types
| Type | Colour (legacy) | Purpose | Duty rate applicable |
|---|---|---|---|
| Home Consumption | White | Goods cleared straight for use in India | Rate on date of filing / entry inwards (Sec 15) |
| Warehousing (into-bond) | Yellow | Goods deposited in a bonded warehouse, duty deferred | No duty at deposit; assessed but not collected |
| Ex-Bond | Green | Clearing warehoused goods later, in full or in part | Rate prevailing on date of ex-bond BoE |
Warehousing is useful for cash-flow management and for goods intended for re-export, since duty is paid only when goods are removed for home consumption.
Step-by-Step Filing
- IGM matching: The carrier files an Import General Manifest; the BoE is filed against the relevant line.
- Electronic filing: The importer or Customs Broker files the BoE on ICEGATE with invoice, packing list and other supporting documents uploaded to eSANCHIT.
- Self-assessment (Sec 17): Duty is computed by the filer applying the correct CTH and notifications.
- RMS processing: The Risk Management System either facilitates the bill or routes it for assessment and/or examination.
- Duty payment: Duty is paid through ICEGATE e-payment (net-banking / NEFT-RTGS).
- Examination: If flagged, goods are examined by the shed officer.
- Out of Charge (Sec 47): The proper officer issues the electronic OOC order and the custodian releases the goods.
Documents & Forms
| Document | Purpose |
|---|---|
| Commercial invoice | Transaction value and terms of sale |
| Packing list | Quantity, weight, marks and numbers |
| Bill of Lading / Airway Bill | Title/transport document, links to IGM |
| Certificate of Origin | Preferential/FTA duty claims |
| Import licence / authorisation | Where the item is restricted or a scheme is used |
| IEC | Importer Exporter Code from DGFT |
Duty Computation — Example
Assume an assessable value of ₹10,00,000, Basic Customs Duty (BCD) at 10%, Social Welfare Surcharge (SWS) at 10% of BCD, and IGST at 18%.
- BCD = ₹1,00,000
- SWS = 10% of ₹1,00,000 = ₹10,000
- IGST base = ₹10,00,000 + ₹1,00,000 + ₹10,000 = ₹11,10,000
- IGST = 18% of ₹11,10,000 = ₹1,99,800
- Total duty payable = ₹3,09,800 (IGST ₹1,99,800 is creditable).
Common Pitfalls
- Wrong CTH/HS classification leading to short-payment and later demand under Section 28.
- Missing or late filing beyond the Section 46(3) window, attracting late charges.
- Not disputing an unaccepted re-assessment — accept only after a speaking order under Section 17(5).
- Overlooking exemption notifications or FTA benefit for want of a valid Certificate of Origin.