A shipping bill is a crucial document in international trade, serving as a declaration to customs authorities about the nature, quantity, and value of exported goods. It's a fundamental requirement for customs clearance, ensuring compliance with trade regulations and facilitating the smooth movement of goods across borders. The shipping bill is generated by the exporter or their authorized agent and marks the beginning of the export process. It contains essential details such as the exporter's information, a description of the goods, their quantity, value, destination, and the mode of transport.
Purpose and Importance of a Shipping Bill
The primary purpose of a shipping bill is to provide customs with detailed information about the goods being shipped, enabling them to verify and clear the goods for export. This includes descriptions, quantities, values, and the destination of the goods. The shipping bill facilitates customs clearance, ensures trade compliance, and allows for accurate duty assessment. It is a legal document required by customs authorities for the export of goods, and failing to submit it or providing inaccurate information can result in penalties, delays, and even seizure of goods. The shipping bill also serves as proof that the goods have been exported from the country of origin, which is required by many foreign governments and financial institutions for payment processing.
Types of Shipping Bills
There are several types of shipping bills, each designed for specific export scenarios:
Free Shipping Bill: Used for goods exported without payment of duty, often for export processing or use in export-oriented units or special economic zones.
Dutiable Shipping Bill: Used for goods subject to export duties.
Drawback Shipping Bill: Used when the exporter is entitled to a refund of customs duty paid on imported raw materials used in manufacturing the exported goods.
Export Promotion Capital Goods (EPCG) Shipping Bill: Used when capital goods have been imported under the EPCG scheme and are being exported after fulfilling the export obligation.
Duty-Free Shipping Bill: Used when goods are exported without payment of basic customs duty, often for duty-free shops or diplomatic missions.
Re-Export Shipping Bill: Used when goods imported into the country are being exported without undergoing any processing or manufacturing.
Coastal Shipping Bill: Used for the movement of goods within a country, from one coastal port to another.
Ex-Bond Shipping Bill: Used when goods are imported and stored in a bonded warehouse, then re-exported.
Key Components of a Shipping Bill
A shipping bill typically includes the following key components:
Exporter details (name, IEC code, address, etc.)
Consignee information (name, address, country, etc.)
Nature of consignment (accurate description of goods)
HS code (Harmonized System code)
Shipping bill type
Mode of transport
LUT/Bond details (if applicable)
Commercial invoice details
Packing list details
Declaration by the exporter
Process of Generating a Shipping Bill
Registration with the customs department on the ICEGATE platform.
Filling in the required shipment information in the prescribed format.
Submitting copies of documents such as invoices, cargo details, and other documents along with the ICEGATE shipping bill.
Verification of the shipping bill application by an officer, who then issues the Export Order.
Checking the shipping bill status on the website.
Difference between Shipping Bill and Bill of Lading
A shipping bill and a bill of lading are distinct documents with different purposes. The shipping bill is a customs document used for declaring the value, quantity, and type of goods being shipped, and it is required by customs authorities in the exporting country. The bill of lading is a document issued by a carrier to acknowledge the receipt of goods and serves as a contract of carriage between the shipper (exporter) and the carrier.
Digitalization and Amendments
Digitalization has significantly impacted shipping bill processing, streamlining the customs clearance process and reducing the risk of errors. Amendments to shipping bills are possible, but they must be made before the issuance of the "Let Export Order."