Closure of Bill of Entry

[Mednob India]

We had made a payment to a company X in A country for import of certain goods in July 2024.The X company sent invoice for total amount that we paid and sent the products. The products were received by us making full payment to customs as per the total invoice value. But we had found one of the product not sent by X company and telephonically informed. Immediately he asked the Y company in B country to send the product as he was running short of the product and X in A country made payment to Y company in B Country. The Y company raised an invoice for the full amount of the missing product on our name and sent to us in India. In India we received as a normal shipment with the invoice value and we had made all the duty payments. Now this BOE is pending to be closed as the payment to Y company in B country is not paid by us. Kindly guide how can we close the BOE in Bank. The amount is around USD 5500.

[YAGAY and SUN]

To resolve the situation of closing the Bill of Entry (BOE) and handling the outward remittance related to the payment of USD 5500 to Company Y in B country, here are some steps you can follow:

Steps to Resolve the BOE Closure:

1. Clarify the Payment Status:
   • Confirm Payment Details: If you have already made the payment to Company Y in B country, ensure you have the proper documentation proving that the payment was made (e.g., bank transfer receipts, SWIFT messages, or remittance advices).
   • Check with Bank: If the payment hasn't been made yet, your next step would be to arrange the payment to Company Y in B country and ensure that the transaction is correctly reflected in your bank records.
2. Make the Payment to Company Y in B Country:
   • If the payment has not been made yet, you should make the payment for the full invoice amount (USD 5500) to Company Y. Use the appropriate remittance method such as a wire transfer, ensuring all transaction details are captured accurately.
   • Once the payment is made, request Company Y to provide an updated invoice/receipt confirming the payment has been received.
3. Update the BOE Information:
   • If the BOE is still pending in your bank due to the lack of payment confirmation to Company Y, inform your bank that the payment is pending.
   • Once payment is made, submit the proof of payment and an updated invoice to the bank to reconcile the transaction with the corresponding BOE.
   • Request the bank to update the remittance details in the system to ensure that the BOE can be closed.
4. Coordinate with Customs (if necessary):
   • If there are complications due to the invoice split between X and Y companies, you may need to reach out to customs and explain the situation. Provide them with the invoice from Company X for the full amount, and the invoice from Company Y for the missing product.
   • Customs might need a clarification to ensure the duty payment has been correctly linked to the total goods value.
5. Bank’s Role in Closing the BOE:
   • Banks often have a process where payment against an import is matched to the BOE, and the remittance is tracked to ensure the remittances align with the relevant invoices.
   • If the payment to Company Y in B country was not made in full, the bank may not be able to close the outward remittance until they receive confirmation of the full payment being settled.
6. Document Everything:
   • Keep a record of all the documentation, including:
     • Invoice from Company X (original invoice).
     • Invoice from Company Y (for the missing product).
     • Proof of payments (to both X and Y companies).
     • Bank remittance details (payment confirmations).
7. Escalation to Bank or Customs if Needed:
   • If the bank is still unable to close the BOE despite all documentation, you might need to escalate the issue to a higher-level official in the bank or customs, explaining the situation and requesting them to proceed with closing the BOE.

Possible Scenarios:

• Scenario 1: Payment to Y Company is Pending
  If you have not paid Y Company yet, you need to make the payment and then send the confirmation to the bank. This will allow the BOE to be closed.
• Scenario 2: Payment to Y Company has been made
  If you have already paid Y Company, you will need to provide the bank with proof of the payment (such as a bank transfer confirmation or SWIFT payment receipt), along with the invoice from Y Company. The bank should then be able to close the BOE.

Final Steps:

• Ensure payment to Y Company is confirmed and matched with the corresponding invoice.
• Provide the payment proof to your bank to close the BOE.
• If issues persist, escalate the matter with the bank or customs.

By following these steps, you should be able to close the BOE and resolve the issue related to the outward remittance for the product shipment.

Let me know if you need further clarification or assistance!

AI Summary

Import payment reconciliation: provide proof of outward remittance or execute payment to enable BOE closure by the bank.
Closure of a pending Bill of Entry requires documentary reconciliation linking outward remittance to the relevant invoice where a supplementary overseas supplier issued an additional invoice for a missing item. The bank will close the BOE only after proof of payment or executed remittance to the secondary supplier is provided and matched to the BOE; if unpaid, the importer must remit and submit payment confirmation. If invoicing is split, provide both suppliers' invoices and payment evidence to the bank and coordinate with customs if valuation or invoice allocation requires clarification.