Write short notes on Bill of entry and Documents against payment.
Bill of Entry:
It is a document showing the details of goods imported. The custom authorities determine the amount of import duty on this basis. It is important to fill up a bill’of entry so that the goods can be cleared from the customs office along with other necessary measures. It is essential for the importer to hand over the bill of entry along with bill of lading and port trust dues receipt after paying the import duty to the shipping company for release of the goods.
Documents against Payment:
Certain documents are send to the importer by the exporter along with bill of exchange drawn on him with particular instructions that importer can get the documents back when he either accepts the bill of exchange or pays it. The arrangement is called documents against payment, if documents are released against payment. It is also written as DIP.
Importer in this case pays immediately or within a short span of time because after he makes the payment, he can get the ownership of goods. In other words, D/P is a method of receiving payment from importer whereby the documents are to be released by bank to the importer on payment of amount due.