Is Global Trade Operating with Just 3 Documents? Let’s Check the Reality.

In recent years, the Indian government has made significant strides in improving business ease. One notable reform in the trade ecosystem is the reduction in the number of mandatory documents required for exports and imports to just three. This initiative, backed by a Customs notification—Circular No. 42/2016-Customs, dated 31 August 2016—was a welcome move aimed at simplifying trade processes and enhancing efficiency.

While the official requirement has been trimmed to three documents (typically the Invoice, Packing List, and Shipping Bill/Bill of Entry), the actual number of documents involved in cross-border trade remains significantly higher. This discrepancy arises because trade documentation isn’t governed solely by customs regulations. Multiple stakeholders—foreign governments, banks, logistics providers, and compliance authorities—often require additional documents based on:

• Product categories (especially regulated goods)
• Country-specific import/export regulations
• Bilateral or Free Trade Agreements (FTAs)
• Letter of Credit (LC) requirements from banks

For instance, when transactions are backed by a Letter of Credit, banks often demand multiple supporting documents like Certificate of Origin, Bill of Lading, Insurance Certificate, Inspection Certificate, and more—far exceeding the simplified list.

It’s high time that global trade documentation is standardized and minimized. A key step in this direction would be to develop multi-purpose documents. For example, an invoice could incorporate declarations that serve as a Certificate of Origin, eliminating the need for separate paperwork.

This is especially important under FTAs or bilateral agreements, where documentation burdens tend to increase rather than decrease.

Global trade bodies such as the World Customs Organization (WCO) and UN/CEFACT must take proactive roles in driving this transformation. Guidelines alone are not enough—implementation must be audited. A ground-level reality check with exporters and importers should be periodically conducted to evaluate the actual number of documents they prepare and receive.

A streamlined, harmonized documentation process would benefit all stakeholders, reducing costs, avoiding delays, and improving compliance. Ultimately, achieving true simplification in global trade requires more than policy—it requires practical, actionable change, accepted by customs authorities, banks, and governments alike.

Would love to hear from you: If you’re in trade, logistics, or finance, how many documents do you really handle per shipment? Is simplification working for you?