What is a shipping bill?
A shipping bill is a critical document required for exporting goods from India. It serves as a declaration by the exporter, containing details of the goods being shipped, their quantity, value, and the destination country. This document is essential for customs clearance and is used to calculate the duties and taxes applicable on the exported goods. The shipping bill also helps in verifying that the goods being exported meet the legal requirements and are allowed for export. Below is a descriptive tabular format to explain the components of a shipping bill:
| Component | Description |
| Exporter Details | Includes the name, address, and contact details of the exporter. |
| Consignee Details | Information about the buyer or recipient in the destination country. |
| Goods Description | Detailed description of the goods being exported, including HS code, quantity, and value. |
| Port of Shipment | The specific port from which the goods are being shipped. |
| Country of Destination | The country where the goods are being sent. |
| Currency Details | Currency in which the transaction is being made. |
| GST Details | Information about the GST applicable on the exported goods. |
| Shipping Marks | Identification marks on the packages to be shipped. |
What exactly is included in the shipping bill?
- Exporter and importer information: Details of the exporter, including their GST number, and the consignee in the destination country.
- Goods description: Includes a precise description of the goods, HS code, quantity, and unit price.
- Invoice and packing list: Reference to the commercial invoice and packing list with the consignment.
- Customs duty and taxes: Calculation of applicable duties, including GST, based on the value of goods.
- Mode of transport: Information about how the goods are being transported, for example, by sea, air, or road.
- Terms of trade: Details like FOB (Free on Board), CIF (Cost, Insurance, and Freight), etc.
- Port of export and destination: Identifies the port from which the goods are leaving and where they are heading.
- Container and shipping details: Information about the containers, seals, and shipping lines.
- Insurance details: Mention of the insurance coverage for the goods during transit.
- Export incentives: Information about any export incentives claimed by the exporter.
Types of shipping bills
- Free Shipping Bill (White): Used for the export of goods without any export incentives.
- Drawback Shipping Bill (Green): Filed when claiming a drawback on duties paid on imported inputs.
- Shipping Bill for Export Under DEPB Scheme (Pink): Used when claiming benefits under the Duty Entitlement Passbook Scheme.
- Shipping Bill for Export Under EPCG Scheme (Blue): Relevant when exporting goods under the Export Promotion Capital Goods Scheme.
- Shipping Bill for Export Under Rebate of Duty Scheme (Yellow): Filed to claim rebates on duties paid on exported goods.
Colour-coding of shipping bills
- White (Free Shipping Bill): Used for exports without any incentives. It is the most common shipping bill used for regular exports.
- Green (Drawback Shipping Bill): Used when the exporter claims a refund on duties paid on imported inputs used in the manufacturing of exported goods.
- Pink (DEPB Scheme Shipping Bill): Filed when the exporter is eligible for benefits under the Duty Entitlement Passbook Scheme.
- Blue (EPCG Scheme Shipping Bill): Utilised when exporting goods under the Export Promotion Capital Goods Scheme, which allows duty-free import of capital goods.
- Yellow (Rebate of Duty Shipping Bill): Used for exports under schemes that allow for a rebate of duties already paid on the exported goods.
How does the shipping bill process work?
The shipping bill process begins when an exporter prepares and submits the shipping bill to the customs department. The document includes essential details about the goods, including descriptions, quantities, and values. Customs officials then review the shipping bill to ensure that all regulations and requirements are met. This includes verifying that the goods are allowed for export, assessing the duties and taxes, including GST, and confirming that the exporter has all the necessary permits and licenses. Once the shipping bill is approved, the goods are allowed to be shipped from the port. The shipping bill is then used to facilitate the release of the shipment and to claim any export incentives, if applicable. This process ensures that the export is compliant with Indian laws and that the goods are accurately recorded for both regulatory and financial purposes.
Offline procedure of filing shipping bill
- Preparation of documents: Exporter prepares necessary documents, including the invoice, packing list, and shipping instructions.
- Submission to customs house: All documents are physically submitted to the customs office at the port of export.
- Customs verification: Customs officials verify the documents, including the shipping bill, and may inspect the goods.
- Assessment of duties: Customs assess the duties and taxes applicable on the export goods, including GST.
- Payment of duties: Exporter pays any applicable duties, either at the customs office or through an authorised bank.
- Clearance and approval: Upon successful verification and payment, customs approve the shipping bill, and goods are cleared for export.
- Collection of shipping bill: The final approved shipping bill is collected from the customs office, completing the offline process.
Online procedure of filing shipping bill from ICEGATE
- Registration on ICEGATE: Exporters must register on the ICEGATE portal using their import and export code (IEC).
- Log in and Document Upload: Exporters log in to the ICEGATE portal and upload the required documents, including the invoice and packing list.
- Filing the Shipping Bill: The exporter files the shipping bill electronically on ICEGATE, entering all relevant details.
- Customs Verification: Customs officials review the electronically submitted shipping bill and supporting documents.
- Assessment of Duties: Duties and taxes, including GST, are assessed electronically based on the information provided.
- Online Payment: Exporters can pay applicable duties online through the ICEGATE portal.
- Electronic Clearance: Once all verifications are complete, the shipping bill is cleared electronically, and the exporter receives an electronic version of the approved shipping bill.
How To Generate Shipping Bill?
- The exporter registers with Customs using their IEC Code Number or Customs House Agent (CHA) license number, and the Authorised Dealer Code Number of the bank handling the export payments
- A specific declaration, signed by the exporter or their authorised CHA, needs to be submitted at the service centre along with a copy of the invoice and packing list. After entering the data, a checklist is created and given to the exporter
- The exporter checks the data and informs the service centre. Once confirmed and corrected, the data is processed automatically. The Assistant Commissioner (Export) will review it if the goods are worth more than Rs. 10 lakhs, include free samples worth over Rs. 20,000, or if the drawback amount is more than Rs. 1 lakh
- After processing, the exporter can check the bill status at the service centre. If there are any queries, the exporter must respond through the service centres
- At the docks, the exporter or CHA must submit all original documents like the invoice and packing list along with the checklist. If everything is correct, the proper officer will issue a ‘Let Export Order.’ Once this order is issued, the shipping bill printout is generated
Format of shipping bill
| Field | Description |
| Shipping Bill Number | Unique identifier for the shipping bill issued by the customs authority. |
| Exporter’s Details | Includes name, address, GST number, and other relevant details of the exporter. |
| Consignee Details | Information about the recipient or buyer, including name, address, and country of destination. |
| Goods Description | Detailed description of the goods, including HS code, quantity, and value. |
| Port of Shipment | Name of the port from which goods are being exported. |
| Mode of Transport | Details on whether the goods are being shipped by sea, air, or road. |
| Customs Duty Information | Information on duties assessed, including GST, and any applicable rebates or drawbacks. |
| Terms of Shipment | Shipping terms like FOB, CIF, etc., agreed upon between the buyer and seller. |
| Insurance Details | Information on the insurance cover for the goods during transit. |
| Export Incentives | Details of any export incentives or schemes under which the goods are being exported. |
| Signature | Signature of the authorised person from the exporter's side and customs approval. |
Conclusion
Understanding the shipping bill process is crucial for smooth and compliant export operations. Whether filing offline or online via ICEGATE, accuracy and thoroughness in the preparation of shipping bills ensure timely clearance and help in availing the benefits of various export incentives. It's also essential to be familiar with the types and formats of shipping bills, as well as the duties, including GST, involved. For businesses engaged in regular exports, securing Bajaj Finserv Business Loan can provide the necessary working capital to manage the complex logistics and financial requirements associated with international trade.
