A shipping bill is a mandatory customs document for exporting goods from India, required to obtain clearance and loading permission.
The shipping bill serves as a crucial document mandated by customs authorities for facilitating the clearance of goods.
What is a Shipping Bill?
When an exporter dispatches goods internationally, numerous administrative procedures must be completed, including submitting applications, securing licenses, and settling duties. To obtain customs clearance for export, an exporter must file an application known as a ‘shipping bill’. Goods cannot be loaded without the submission of this document. Whether the export mode is by air, road, or sea vessel, specific accompanying documents are required for goods to be taken on board:
| Location / Mode | Required Document |
|---|---|
| Seaport or Airport | Shipping Bill |
| Land Customs Station | Bill of Export |
| For Goods Transshipment | Bill of Transshipment |
Typically, shipping bills are submitted electronically. However, in situations where electronic submission is impractical, the Principal Commissioner or Commissioner may grant an exemption, allowing for a physical application. Shipping bills are categorized by various forms, each identified by a distinct color scheme to indicate specific conditions:
| Serial No. | Form Name | Color |
|---|---|---|
| 1. | Dutiable Goods | Yellow |
| 2. | Duty-free Goods | White |
| 3. | Goods with Drawback Claims | Green |
| 4. | Duty-free Ex-bond Exports | Pink |
| 5. | DEPB Scheme Exports | Blue |
The Shipping Bill Process
A shipping bill can only be filed after the designated vessel or mode of transport has received ‘entry outwards’ authorization, permitting its departure from the country. Following submission, customs authorities perform a physical verification and assess the value of the goods intended for export. After reviewing these bills, the customs officials endorse the copies with ‘LET EXPORT ORDER’ and ‘LET SHIP ORDER’ to finalize the clearance.
Steps for Generating a Shipping Bill
The process for generating a shipping bill involves several key stages:
- Exporters must register with Customs using their IEC (Import Export Code) Number, or through their Customs House Agent’s (CHA) license number, and provide the Authorized Dealer Code Number of the bank designated for realizing export proceeds.
- A signed declaration, in a prescribed format, from the exporter or their authorized CHA, must be submitted at the service center along with copies of the invoice and packing list.
- Upon completion of data entry, a checklist is generated and provided to the exporter for review.
- The exporter is responsible for verifying the accuracy of the data and informing the service center of any necessary corrections.
- Once the data is verified and corrected, it proceeds automatically for processing.
- An assessment by the Assistant Commissioner (Export) is required if the goods’ value exceeds Rs. 10 lakhs, if free samples are valued over Rs. 20,000, or if the drawback amount surpasses Rs. 1 lakh.
- After processing is complete, the exporter can track the bill’s status via the service center.
- Occasionally, queries might be raised, requiring the exporter to submit a response through the service centers.
- At the docks, the exporter or CHA must present all original documents, including the invoice, packing list, and the checklist.
- If all documentation is in order, the proper officer will issue a ‘Let Export Order’.
- Finally, once the ‘Let Export Order’ has been issued, a physical printout of the shipping bill is generated.
Structure of a Shipping Bill
The shipping bill format typically requires specific accompanying documents. These include:
- Invoice
- Packing list
- Export license
- Indent
- Acceptance of Contract
- Letter of Credit
- Quality Control (QC) Certificate
- Port Trust Document
- Any other documents as specifically required.
