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DGFT reduces mandatory documents to three from April 1
Mar '15
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, vide its notification no. 114 (RE-2013)/2009-2014, has reduced the number of mandatory documents for import/export to three with effect from 1 April, 2015.
According to the notification, the mandatory documents required for export of goods from India are: Bill of Lading/Airway Bill, Commercial Invoice cum Packing List, and Shipping Bill/Bill of Export.
Likewise, the mandatory documents required for import of goods into India are: Bill of Lading/Airway Bill, Commercial Invoice cum Packing List (separate Commercial Invoice and Packing List would also be accepted), and Bill of Entry.
However, for export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any statute, the regulatory authority concerned may notify additional documents for purposes of export or import, the notification said.
“In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents or information, as deemed necessary to ensure legal compliance,” DGFT said.
The reduction in mandatory documents is a step towards improving ‘Ease of Doing Business’ with India, according to the government. The decision was taken based on the “Trading Across Borders” report submitted by an Inter-Ministerial Committee to the Prime Minister’s Office in December 2014.
India ranked 126 in ‘Trading Across Borders’ component of “Ease of Doing Business”, out of 189 countries ranked by the World Bank, in its 2015 Report. The Report listed 7 and 10 mandatory documents respectively for export and import from/to India.
As per the DGFT’s notification, one document required by RBI (Foreign Exchange Control Forms - SDF for exports and A-1 for imports) and one document required by Ministry of Shipping (Terminal Handling Receipt) earlier, have now been dispensed with from beginning of financially year 2015-16.
Cargo Release Order is not a mandatory document required by any regulatory agency, but is a commercial document issued by the Shipping line to the concerned importer. As regards, Technical Standard Certificate/ Certified Engineer’s Report, Product manual and Inspection report, these documents are required in specific cases/products/tariff lines only and are not mandatory for all products.
It is expected that the reduction in the number of mandatory documents would also lead to corresponding reduction in transaction cost and time, and also improve India’s ranking on ‘Ease of Doing Business’ parameter. (RKS)

Fibre2fashion News Desk - India

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