Shipping Bill in Export: Meaning, Types and Purpose
Shipping Bill in Export: Meaning, Types, and Purpose
Meaning
A Shipping Bill is a crucial document required in the export process from India. It serves as the principal customs document for the clearance of goods. The shipping bill provides essential information about the goods being exported, ensuring compliance with customs regulations and facilitating the smooth processing of the shipment.
Purpose
Customs Clearance: It is used by customs authorities to verify the details of the shipment and ensure that all regulatory and statutory requirements are met.
Export Documentation: Acts as an official record of the goods being exported, including quantity, value, and description.
Legal Compliance: Ensures that the export complies with national laws and international trade agreements.
Statistical Data: Provides data for trade statistics, helping the government in policy formulation and economic planning.
Financial Transactions: Assists in financial transactions between the exporter and importer, serving as proof of shipment for payment processing.
Types of Shipping Bills
Free Shipping Bill: Used for goods that are not subject to any export duty, cess, or other taxes.
Dutiable Shipping Bill: Applicable for goods that attract export duty, where the exporter must pay the necessary duties.
Drawback Shipping Bill: Used for goods eligible for duty drawback (refund of duties paid on imported inputs used in the manufacture of the export goods).
Ex-Bond Shipping Bill: Required for goods that are moved from a bonded warehouse for export.
Coastal Shipping Bill: For goods that are shipped to another port within the same country, not involving international export.
Detailed Description of Types
Free Shipping Bill:
Used for goods not subject to export duties.
Simple to process as no duties or taxes are involved.
Commonly used for products with zero duty under trade agreements.
Dutiable Shipping Bill:
Used for goods on which export duty needs to be paid.
Involves calculation and payment of export duties before goods are cleared.
Important for high-value items or goods with specific export tariffs.
Drawback Shipping Bill:
Used for claiming duty drawbacks on exported goods.
Requires detailed information on the imported inputs and manufacturing process.
Ensures exporters get refunds on duties paid, reducing overall costs.
Ex-Bond Shipping Bill:
Relevant for goods stored in bonded warehouses.
Allows goods to be exported without paying domestic duties until they are shipped.
Useful for bulk imports stored and processed before export.
Coastal Shipping Bill:
Used for shipping goods between different ports within the same country.
Not for international export but required for regulatory and tracking purposes.
Facilitates domestic trade and logistics management.
Process of Obtaining a Shipping Bill
Preparation: Gather all necessary details, including invoice, packing list, and relevant certificates.
Submission: File the shipping bill electronically through the customs portal.
Verification: Customs authorities verify the details and may inspect the goods.
Approval: Once verified, the shipping bill is approved, and the goods are cleared for export.
Documentation: The approved shipping bill, along with other export documents, is sent to the shipping line and importer.
Conclusion
The shipping bill is a pivotal document in the export process, ensuring compliance with customs regulations and facilitating the smooth movement of goods across borders. Understanding the different types of shipping bills and their specific purposes helps exporters manage their documentation efficiently and ensure timely clearance of their shipments.
