In export trade, international shipping and delivery is an important step – making sure products reach the importer or end-customer without any damage is key to a successful export business. In this process, a shipping bill is an essential document issued by the Customs Service Centre. This bill allows an exporter to get customs clearance and initiate shipping.
While sending products from one country to another, an exporter has to go through various formalities like submitting a few applications, acquiring licenses, paying duties, etc. To obtain clearance from customs, an exporter has to apply for a shipping bill to avoid any challenges while shipping. All products can only be exported out of the country if the shipping bill has been checked by the customs with ‘Let Export Order’ and ‘Let Ship Order’.
What is a shipping bill?
An exporter, while sending goods from one country to another has to go through various formalities including submitting various applications, acquiring licenses, paying duties and so on. To acquire a clearance for export, from the Customs, an exporter will have to submit an application called the ‘shipping bill’. One cannot load the goods unless the exporter files the shipping bill. The export may be by air, vehicle, or vessel. The goods can only be taken on board if the goods are accompanied by certain documents as described below:
| At seaport/ airport | Shipping bill |
| At land customs station | Bill of export |
| For goods transhipment | Bill of transhipment. |
A shipping bill is to be submitted electronically. However, the Principal Commissioner or the Commissioner may grant an exemption and accept a physical application, where an electronic submission is not feasible. A shipping bill has various forms which are differentiated by colour. The colour schemes denote the following:
| Sr. No. | Form Name | Colour |
| 1. | Dutiable Goods | Yellow |
| 2. | Duty-free goods | White |
| 3. | Goods with drawback claims | Green |
| 4. | Goods allowed to be exported as duty-free ex-bond | Pink |
| 5. | Export goods under DEPB Scheme | Blue |
A shipping bill is an important document that an exporter needs to obtain from the customs department before getting his products ready to ship from India. While shipping products from one country to another, an exporter is required to follow a certain export procedure, obtain documents and get clearance from customs. After receiving a shipping bill, the customs authority conducts inspection, post which, it issues an Let Export Order – the final legal procedure required to move goods out of India. This process is completed by the Indian Customs Department by finding out the net value of the goods to be exported) on the shipping bill which is signed and sealed by customs officers2.
What does the shipping bill include?
• Name of the vessel
• Transportation and port of loading and discharge details
• Cargo details (gross and net weight, nature)
• Invoice details (number of commercial invoices, nature of payment, invoice value in both currencies)
• GST and export duty-related information
• FOB (Freight on Board) price and insurance amount of items
• Container numbers
• Duty Drawback details
• Nature of goods exported
• Country of destination and the port at which goods are to be discharged
• Exporter’s address
• Importer’s address
• Details of packages such as numbers and marks
Types of shipping bills in export
Dutiable shipping bill- Payment of export duty on goods to be exported and here ‘dutiable shipping bill’ is to be filed.
Ex-bond shipping bill- Goods that are imported and stored in the bonded warehouse which are to be re-exported have to be filed under ex-bond shipping bill.
Coastal shipping bill- When goods are required to be shipped and they are needed to be moved from one port to another port, coastal shipping bill needs to be filed.
- Drawback shipping bill- Drawback shipping bill is to be filed for goods which are for refund purposes.
Understanding the Shipping Bill Process in Export Transactions
- Vessel/Ship Entry Outwards: Before filing the shipping bill, the specific vessel, ship, or transportation mode intended for export must be granted an “entry outwards” permission. This permission allows the vessel to move out of the country.
- Submitting the Shipping Bill: The exporter can file the shipping bill once the vessel has been granted entry outwards. The shipping bill contains all the details about the exported goods and the intended destination.
- Physical Verification and Assessment: After submitting the shipping bill, customs authorities physically verify the goods and assess their value to ensure compliance with export regulations.
- Endorsement and Clearance: Upon successful verification and assessment, the customs authorities endorse the shipping bill with a ‘LET EXPORT ORDER’ and a ‘LET SHIP ORDER.’ These endorsements indicate that the goods are cleared for export and can be loaded onto the designated vessel or transportation mode.
Documents Required for shipping bill
In India, the shipping bill is obtained through Indian Customs and Central Excise Electronic Commerce/Electronic Data Interchange (EC/EDI) Gateway, known as ICEGATE. To obtain the shipping bill, exporters need to provide the following documents:
- Forms for Shipment: Required for exports to all countries.
- Packing List: Contains details of each package’s content, quantity, gross and net weight.
- Export License: Authorization for exporting specific goods.
- Indent: A formal order for goods placed with suppliers.
- Acceptance of Contract: Document confirming acceptance of export contract terms.
- Invoices: Contain comprehensive information such as package number, quantity, price, and accurate goods specifications.
- Purchase Order: Placed by the buyer, specifying the purchase details.
- Letter of Credit: A financial document guaranteeing payment to the exporter.
- Examination or QC Certificate: Ensures the quality of the goods.
- Port Trust Document: Relevant for shipment from port trust authorities.
The Process of Shipping Bill Generation
1. Registration with EDI System
Before initiating the Shipping Bill filing process, exporters or Customs House Agents (CHA) must register with the Electronic Data Interchange (EDI) system using their Importer Exporter Code (IEC) code, Authorized Dealer (AD) code, and/or CHA license number.
2. Submission of Shipping Bill
Under the Electronic Data Interchange (EDI) system, the Shipping Bill is meticulously filled out in the prescribed format and submitted at designated Customs service centers, accompanied by copies of the invoice and packing list.
3. Verification Process
Upon submission, a checklist is generated, necessitating verification by either the exporter or the CHA to ensure accuracy and completeness of the provided information.
4. Transmission to EDI System
The verified data is then transmitted to the EDI system by the service center operator.
5. Generation of Shipping Bill Number
The system generates a unique Shipping Bill Number, which is endorsed on the printed copy of the checklist and returned to the exporter or CHA.
6. Automated Processing
In most cases, the system autonomously processes the Shipping Bill without human intervention, relying on the declarations furnished by the exporter.
7. Manual Assessment
Manual assessments are conducted by the Assistant Commissioner of Exports for Shipping Bills with specific criteria, such as exceeding certain value thresholds.
8. Payment of Export Cess
If applicable, the exporter is provided with the requisite challan for payment of export cess, which can be settled at designated banks.
9. Tracking and Query Resolution
Exporters can track the progress of the Shipping Bill and address any queries raised within the service center interface, ensuring seamless communication and resolution.
How to get a shipping bill from ICEGATE?
• An exporter has to register with the customs department on their website (ICEGATE) with IEC or Customs House Agents license number and AD Code of the respective bank.
• Post that, exporter can sign in to ICEGATE and fill the required details in the prescribed format, along with necessary documents, and submit it.
• Once the application has been verified, ‘Let Export Order’ will be issued by the officer.
• After this is issued, the shipping bill is generated.
1. Login to ICEGATE using your login credentials.
2. Click on ‘Job Status’ link on the left menu of available services.
3. On the ‘Job Status’ page, click on ‘Shipping Bill (24 Hrs)’ and select the appropriate location from the drop down.
4. Submit the required details.
FAQs
What is the difference between the bill of lading and a shipping bill?
A shipping bill is a bill for shipment needed for custom clearance while you are exporting products. Bill of lading is issued by the shipping company to the transporter when the transporter loads goods to the ship.
How can I get an export shipping bill?
You can apply for a shipping bill by registering on ICEGATE and submitting required documents, along with the application.
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