A shipping bill is a crucial document required by customs authorities for the clearance of goods when exporting from India. It serves as a declaration of the goods being exported, providing details such as the nature, value, and quantity of the goods, along with exporter and consignee information, and the mode of transport. Think of it as the "green signal" from customs, allowing goods to leave the country legally. It's essentially the export equivalent of a Bill of Entry used for imports.
Importance of a Shipping Bill
The shipping bill is not just a formality; it's a critical document for exporters. It's the primary document the customs department uses to check the details of the shipment before allowing goods to be exported. Without a shipping bill, customs will not permit the goods to leave India, making it a mandatory requirement for all export shipments, whether by air, sea, or land.
Here's why it's so important:
Official Export Declaration: It provides detailed information about the shipment to customs.
Customs Clearance: It's essential for obtaining customs clearance.
Export Incentives: It's required to claim export incentives like RoDTEP (Remission of Duties and Taxes on Export Products) and MEIS (Merchandise Exports from India Scheme).
Export History: It serves as a record of export transactions.
GST Refunds: It is a mandatory document for GST refunds on zero-rated supplies.
Compliance: It is a mandatory component of compliance records for internal and external audits.
Key Components of a Shipping Bill
A shipping bill includes several key components:
Exporter Details: Name, IEC code, address, etc.
Consignee Information: Name, address, and country of the recipient.
Nature of Consignment: A detailed description of the goods, including product name and type.
HS Code: An 8-digit code used to identify the nature of the goods for compliance and duty purposes.
Shipping Bill Type: Determines how the customs department will treat the shipment.
Mode of Transport: Indicates whether the shipment will move by air, sea, or land.
LUT/Bond Details: Information if exporting without paying GST.
Types of Shipping Bills
Different types of shipping bills exist, depending on the nature of the export:
Free Shipping Bill: Used when exporting goods that don't qualify for export incentives.
Dutiable Shipping Bill: Used when exporting goods that require export duty.
Drawback Shipping Bill: Used to claim a refund of duties already paid on imported raw materials used in the exported goods.
EPS Shipping Bill: Used for shipments exported under schemes like EPCG (Export Promotion Capital Goods) or MEIS.
Ex-bond shipping bill: Used for goods that are imported and stored in a bonded warehouse and are to be re-exported.
Coastal shipping bill: Used when goods are shipped from one port to another within India.
Documents Required for Filing a Shipping Bill
Exporters need to gather several documents before filing a shipping bill:
Commercial Invoice: Details of the goods being exported, including quantity, quality, price, and terms of sale.
Packing List: Details of the packed goods, including weight, number of boxes, and dimensions.
IEC Code: Importer Exporter Code, which is an ID card for your export business.
Export/Purchase Order: Proof of the order from the overseas buyer.
Declaration: A declaration by the exporter that the information provided is true and that all necessary documents are available.
LUT or Bond Documents: If exporting without GST under LUT (Letter of Undertaking), the relevant documents must be submitted.
How to Obtain a Shipping Bill
Shipping bills are typically filed electronically through the ICEGATE (Indian Customs Electronic Gateway) portal.
The steps generally involve:
Registration: Register with the customs department on ICEGATE, providing your IEC code or Customs House Agent license number and the AD Code of your bank.
Login: Log in to ICEGATE and fill in the required details in the prescribed format, along with the necessary documents.
Verification: The application is verified.
Let Export Order: Once verified, the officer issues a "Let Export Order."
Generation: The shipping bill is then generated.
You can also check the status of your shipping bill on ICEGATE.
Downloading the Shipping Bill from ICEGATE
Here's how to download a shipping bill from ICEGATE:
Visit the ICEGATE Website: Go to the official ICEGATE website (https://www.icegate.gov.in/).
Login: Log in using your ICEGATE ID (IEC-based), password, and CAPTCHA code.
Navigate to Document Download: Go to "Services" → "Document Download" → "Shipping Bill."
Enter Details: Enter the Shipping Bill number, date of filing, and port code.
Download: Click "Submit" or "Search" and then click the "Download" or "PDF" icon to save the shipping bill.
The shipping bill is a crucial document for exporters in India. It is a mandatory requirement for customs clearance and is essential for claiming export incentives and GST refunds. Exporters must file this document electronically through the ICEGATE portal, providing accurate details and necessary supporting documents.