What is a Shipping Bill and Steps to Generate it

Table of Contents

1. Introduction
2. What is a Shipping Bill?
3. Necessity of a Shipping Bill in International Trade
4. What is Included in a Shipping Bill?
5. Online Procedure for Filing a Shipping Bill via ICEGATE
6. Types of Shipping Bills
7. Offline Procedure for Filing a Shipping Bill
8. Important Steps Before Generating the Shipping Bill
9. Revised Format of Shipping Bill
10. Streamlined Export Experience with ShiprocketX
11. Conclusion
12. FAQ

Introduction

International trade involves numerous steps and documents to ensure smooth and lawful transactions. One of the most critical documents in this process is the shipping bill. For anyone engaged in exporting goods, understanding how to generate and file a shipping bill is crucial. But what exactly is a shipping bill, and why is it so pivotal in international trade?

In this post, we'll explore the concept of the shipping bill, detail its necessity, and guide you through the steps of generating one. We'll also look at the different types of shipping bills and provide a comprehensive overview of the online and offline procedures for creating them. By the end of this article, you'll have a thorough understanding of the shipping bill's role in exporting goods and know precisely how to navigate the process efficiently.

What is a Shipping Bill?

A shipping bill is an essential document required for the exportation of goods from one country to another. This document, filed by the exporter, contains detailed information about the shipment, including the exporter’s name, the consignee’s address, the vessel's name, and the port of discharge. The shipping bill essentially serves as a request for permission to export goods and is a prerequisite for obtaining customs clearance.

Necessity of a Shipping Bill in International Trade

The primary function of a shipping bill is to facilitate the customs clearance process. Once submitted, it allows the Customs Service Centre to issue crucial orders. These include the ‘Let Export Order’ and ‘Let Ship Order,’ necessary for the legal transportation of goods across borders. Without a shipping bill, exporters cannot commence the shipping process legally, making it indispensable for international trade.

Moreover, the shipping bill ensures that all the goods being exported meet regulatory standards and reach their destination in good condition. It also helps in the accurate calculation of duties and taxes, and verifies the compliance of the export with all legal requirements.

What is Included in a Shipping Bill?

A shipping bill typically includes a comprehensive set of details about the shipment:

• Exporter’s name and address
• Consignee’s name and address
• Port of discharge and loading
• IEC (Import Export Code) number
• Vessel name and voyage number
• Description and quantity of goods
• Country of final destination
• Value of goods

All these details must be accurately filled out to ensure smooth processing by customs authorities.

Online Procedure for Filing a Shipping Bill via ICEGATE

India has streamlined the shipping bill filing process through the ICEGATE platform, making it more efficient and user-friendly. Here's a step-by-step guide to filing a shipping bill online:

1. Registration on ICEGATE: First-time users must register on the ICEGATE website using their IEC (Import Export Code) or CHA (Customs House Agent) license number and AD Code (Authorized Dealer Code) of their bank.
2. Log In and Fill Details: After registration, log in to the ICEGATE platform, fill out the shipping bill form with all required details, and attach the necessary documents.
3. Document Submission: Submit all required documents, which may vary based on the type of goods (dutiable, duty-free, drawback, etc.).
4. Verification Process: The customs officer will verify the submitted documents and, if everything is in order, issue the ‘Let Export Order.’
5. Retain Copies: Once issued, retain printed copies of the verified shipping bill along with the shipping bill number for future reference.

Checking the Status of a Shipping Bill

To check the status of your shipping bill on ICEGATE, follow these steps:

1. Log in to your ICEGATE account.
2. Navigate to the 'Shipping Bill Status' section.
3. Enter the details such as job number and customs location name.
4. View the current status of all shipping bills filed in the last 24 hours from the selected location.

Types of Shipping Bills

Understanding the different types of shipping bills is essential for efficient export planning. Here are the six types:

1. Drawback Shipping Bill: Used when goods are imported for further processing and the customs duty paid can be refunded. Initially printed on green paper, it changes to white once the drawback is paid.
2. Dutiable Shipping Bill: Printed on yellow paper, this bill is for goods exported with duty payment. It may qualify for duty drawback.
3. Shipping Bill under DEPB Scheme: This bill, printed in blue, falls under the Duty Entitlement Passbook Scheme, incentivizing Indian exporters.
4. Duty-Free Shipping Bill: For goods exported without export duty. It's printed on white paper.
5. Coastal Shipping Bill: Required for the interstate transport of goods within India, from one port to another.
6. Ex-Bond Shipping Bill: Used for goods previously imported and stored in bonded warehouses, now being exported.

Offline Procedure for Filing a Shipping Bill

Although the online procedure is more convenient, some exporters may still prefer the traditional offline method. The steps are similar but require physical visits to the customs office:

1. Document Preparation: Gather all necessary documents and ensure they are correctly filled out.
2. Submission: Submit the documents to the customs office.
3. Verification: Customs officers will verify the documents and assess the goods' value, potentially requiring samples for inspection.
4. Issuance of Orders: Once verified, the customs department issues the ‘Let Export Order.’
5. Collect Copies: Collect the printed copies of the verified shipping bill for your records.

Important Steps Before Generating the Shipping Bill

Before you generate your shipping bill, certain preparations are essential:

• Confirm Export Category: Determine if your goods fall under schemes like DEPB or DEEC, as documentation and processing will vary.
• Value Assessment: Customs officers may assess the value of goods and could request samples for testing.
• Obtain Let Export Order: Ensure that all documents are in order to receive the ‘Let Export Order’ successfully.

Revised Format of Shipping Bill

The updated format for shipping bills has certain amendments. Make sure to follow these revised structures when submitting your documents to comply with the latest regulations.

Streamlined Export Experience with ShiprocketX

Embrace efficiency with ShiprocketX, a platform designed to streamline international shipping. Offering integration with multiple marketplaces and carriers, ShiprocketX simplifies the entire process. From calculating international shipping rates instantly to ensuring affordable rates with top courier partners, ShiprocketX aims to provide a seamless export experience.

Conclusion

Acquiring a shipping bill is a fundamental step in the export process. Whether you opt for the online method via ICEGATE or the traditional offline method, understanding the intricacies of this document will help you navigate international trade efficiently. By leveraging reliable shipping service providers like Shiprocket, you can ensure a hassle-free experience, allowing you to focus more on growing your business.

FAQ

1. Why is a shipping bill necessary for export? A shipping bill is required to obtain customs clearance, ensuring that all goods exported comply with legal and regulatory standards.

2. What is the ICEGATE platform? ICEGATE (Indian Customs Electronic Gateway) is an online platform that facilitates the electronic filing of shipping bills and other customs documents.

3. Can I file a shipping bill offline? Yes, while the online process is more convenient, you can still file a shipping bill offline by submitting the required documents to the customs office.

4. What are the different types of shipping bills? The six types include Drawback Shipping Bill, Dutiable Shipping Bill, Shipping Bill under DEPB Scheme, Duty-Free Shipping Bill, Coastal Shipping Bill, and Ex-Bond Shipping Bill.

5. How can ShiprocketX help in the export process? ShiprocketX integrates multiple marketplaces and carriers, allowing for instant rate calculation and offering affordable and efficient international shipping solutions.

By following these guidelines and understanding the role of a shipping bill, you'll be better equipped to manage your export operations smoothly and compliantly.