Rules 11 and 12 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.
Rule 11 requires the owner of goods to state the value, quantity, quality and description of the goods in the Bill of Entry or Shipping Bill, as far as he knows and believes, to certify on export that the quality and specification match the export contract, and to sign a declaration of truth. Rule 12 requires the importer or exporter to state the Importer-exporter Code Number (the IEC) on the same documents, and, since 2015, makes a person who uses someone else's Code liable to a penalty under section 11(2). Rule 11 was substituted in 2015; rule 12 was amended. This article explains both as per the Rules as notified in 1993 read with the 2015 Amendment Rules.
Rule 11: on importation or exportation, the owner shall in the Bill of Entry, Shipping Bill or other prescribed document state the value, quantity, quality and description of the goods as far as he knows and believes; on export he must also certify that quality and specification match the export contract; and he must sign a declaration of truth at the foot of the document. Rule 12: the importer or exporter must state the Importer-exporter Code Number on those documents; a person using someone else's Code is liable to a penalty under section 11(2).
Rule 11: the declaration
The current text
Rule 11 as substituted in 2015 has the heading "Declaration as to value, quantity and quality of imported goods or services or technology". In its own words, the rule says that "On the importation into, or exportation out of, any customs ports of any goods or goods connected with services or technology, whether liable to duty or not, the owner of such goods shall in the Bill of Entry or the Shipping Bill or any other documents prescribed under the Customs Act, 1962 (52 of 1962), state the value, quantity, quality and description of such goods or goods connected with services or technology". The rule then qualifies this: the owner states these particulars as far as he knows and believes. It goes on that "in case of exportation of goods or services or technology" he shall "certify that the quality and specification of the goods or goods connected with services or technology as stated in those documents, are in accordance with the terms of the export contract entered into with the buyer or consignee in pursuance of which the goods or goods connected with services or technology are being exported", and that he "shall subscribe a declaration of the truth of such statement at the foot of such Bill of Entry or Shipping Bill or any other documents".
The Customs Act, 1962 is another law and is not explained here; the reader should check its current provisions for the Bill of Entry and the Shipping Bill. See our guide on the Bill of Entry.
What the rule asks, step by step
- Who: "the owner of such goods". The duty falls on the owner, not on the customs broker.
- When: "On the importation into, or exportation out of, any customs ports", whether the goods are liable to duty or not.
- Where: "in the Bill of Entry or the Shipping Bill or any other documents prescribed under the Customs Act, 1962".
- What: the value, quantity, quality and description. The word "quantity" was added in 2015; the 1993 rule listed value, quality and description.
- On export, an extra certificate: that the quality and specification of the goods as stated in the documents are in accordance with the terms of the export contract with the buyer or consignee.
- A declaration of truth subscribed at the foot of the document.
| Point | 1993 rule | After 2015 |
|---|---|---|
| Heading | "Declaration as to value and quality of imported goods" | "Declaration as to value, quantity and quality of imported goods or services or technology" |
| What is stated | Value, quality and description | Value, quantity, quality and description |
| What it covers | Goods | Goods, and goods connected with services or technology |
| Export certificate | Quality and specification match the export contract | Same, extended to services or technology |
Printing slip: the 1993 rule prints "exporation" for "exportation". The 2015 rule is a fresh text.
Why "as far as he knows and believes" matters
The rule asks for the owner's knowledge and belief, not for a guarantee of accuracy. But the declaration is subscribed as true, and the Act separately penalises a person who uses a document "knowing or having reason to believe" it is false (section 11(3)). See our article on rules 13 and 14 and on section 11(1) to (4). In practice, check the invoice, the contract and the goods before the declaration is signed.
Example: Maple Leaf Exports (an invented firm) ships garments under a contract that specifies a fabric blend. Before the Shipping Bill is filed, it checks the goods against the contract. Rule 11 requires it to certify that the quality and specification as stated in the Shipping Bill are in accordance with the terms of the export contract, and to subscribe a declaration of truth at the foot of the Shipping Bill.
Rule 12: the Importer-exporter Code Number
The text
Rule 12 reads, after 2015: "On the importation into or exportation out of any Customs port of any goods or goods connected with services or technology the importer or exporter shall in the Bill of Entry or Shipping Bill or, as the case may be, in any other documents prescribed by rules made under the Act or the Customs Act, 1962 (52 of 1962), state the Importer-exporter Code Number allotted to him by the competent authority. Any person using someone else's Importer-exporter Code shall be held liable for violation of this rule and shall accordingly be liable for penalty under sub-section (2) of section 11."
What it does
- The importer or exporter states the Code. The rule uses "importer or exporter" in the sense of rule 2(c), a person who holds a valid Code. See rules 1 and 2.
- It must be the Code "allotted to him". The Code is allotted by the competent authority under section 7 of the Act; see section 7.
- Using another's Code is a violation (added in 2015). The person "shall be held liable for violation of this rule and shall accordingly be liable for penalty under sub-section (2) of section 11".
Section 11(2) of the Act, as substituted in 2010, provides that a person who makes, abets or attempts any export or import in contravention of the Act, the rules or orders or the foreign trade policy is liable to a penalty "of not less than ten thousand rupees and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more". Rule 12 therefore ties misuse of a Code to that penalty. The sub-section that now provides for settlement is section 11(4); rule 12 does not mention it.
A person without a valid Code of his own who borrows another firm's Code to clear goods is the case the new sentence aims at, on its words. The lender is not named in the sentence; it speaks of "any person using someone else's" Code.
If you are not sure that your Code is valid, or it needs to be updated, check it before you file.
The Policy in the background
FTP 2023, para 2.06 (in the copy consulted), lists the mandatory documents for export and import of goods, and includes the Shipping Bill for export and the Bill of Entry for import. Para 2.05 (in the copy consulted) deals with the Importer-exporter Code. Both can change; check the current Policy.
Need help with your Importer-exporter Code?
Every Bill of Entry and Shipping Bill must carry the correct Code. Our IEC registration service can help you obtain or update the Code so that your declarations under rule 12 are in order. Later amendments to the Act, the Rules and the Policy should be checked.
Key takeaways
- Rule 11 requires the owner to state value, quantity, quality and description in the Bill of Entry or Shipping Bill, as far as he knows and believes.
- On export the owner certifies that quality and specification match the export contract with the buyer or consignee, and subscribes a declaration of truth.
- The 2015 Rules substituted rule 11 to add "quantity" and to cover goods connected with services or technology.
- Rule 12 requires the Code allotted to the importer or exporter to be stated on those documents.
- A person who uses someone else's Code is liable to a penalty under section 11(2).
- Later amendments and the current Policy and customs rules should be checked.
Read next
- Rules 13 and 14: use of imported goods and false declarations
- Section 7: Importer-exporter Code Number
- Section 11(1) to (4): contravention, penalty and settlement
- Shipping Bill: export documentation and process
Disclaimer: Based on the Foreign Trade (Development and Regulation) Act, 1992 as enacted read with the Amendment Act of 2010, and on the Foreign Trade (Regulation) Rules, 1993 as notified read with the Amendment Rules of 2015, as consulted on 2 October 2026. Later amendments, the current Foreign Trade Policy and the Handbook of Procedures should be checked. This article is general information, not legal advice; check the official text before acting.