International trade involves extensive paperwork, and one of the most essential documents for exporters is the shipping bill. This document is crucial for obtaining customs clearance and ensuring the legal export of goods. Whether shipping fruits, vegetables, or machinery, understanding the shipping bill is key to smooth logistics and compliance with customs regulations.

In this blog, we’ll cover everything you need to know about shipping bills—including their meaning, purpose, types, and the process of generating one. We’ll also provide sample formats to simplify the concept and enhance your understanding.

What is a Shipping Bill?

A shipping bill is an official document submitted by an exporter to customs authorities to obtain permission for international shipments. It details the description, quantity, value, and destination of the goods. Exporting without a shipping bill is illegal.

Before exporting the goods, the exporter has to present a shipping bill to customs then. Customs officials scrutinize the document and inspect the goods. Once both are cleared, the exporter receives his Let Export Order, which is the final loading and shipping clearance of the goods abroad.

What is the Importance of a Shipping Bill?

A shipping bill plays some significant roles during the export procedure:

• Customs Clearance: It enables customs authorities to clear the goods and their value before allowing them to be exported.
• Duty Refunds & Drawbacks: Exporters can claim refunds on duties paid or benefit from duty drawbacks (if applicable).
• Compliance with RBI Regulations: The Reserve Bank of India (RBI) requires exporters to submit a shipping bill to process foreign remittances, ensuring all export transactions are properly documented.

For example, if you’re exporting perishable goods like fruits and vegetables, the shipping bill may need to include additional details like packaging type and transit conditions.

Key Components of a Shipping Bill

A shipping bill includes several important details about the shipment. Here’s what you’ll typically find in a shipping bill:

Exporter and Buyer Details:

• Full name and address of the exporter and buyer
• Contact information for both parties

Carrier and Transportation Information:

• Vessel/Transport vehicle name
• Port of origin and destination
• Air, sea, or land transport

Cargo:

• Details of goods (nature, quantity, and value)
• Weight and measurement of the cargo
• Type of packing (box, case, container, etc.)

Invoice and Payment Details:

• Invoice number and other details
• Letter of credit or advance payment

Customs and Duties:

• Export duty, GST, and any others
• Whether goods are eligible for duty drawback or duty-free status

Export Scheme Information:

• Any schemes related to exports, like DEPB (Duty Entitlement Passbook) or Drawback Scheme

Kinds of Shipping Bills

Shipping bills differ according to what kind of goods have been shipped and what the exporting conditions are. Here are the kinds:

1. Drawback Shipping Bill
   • For reclaiming duties paid during export.
   • Paper Color: Green (initially), White (after reclaim).
2. Dutiable Shipping Bill
   • Used for goods subject to export duty.
   • Paper Color: Yellow.
3. Coastal Shipping Bill
   • For transporting goods between Indian ports (not considered an export).
   • Paper Color: Yellow.
4. Ex-Bond Shipping Bill
   • For goods imported and stored in a bonded warehouse, then re-exported.
   • Paper Color: Pink.
5. Duty-Free Shipping Bill
   • For goods exempt from export duty and not eligible for duty drawbacks.
   • Paper Color: White.

Each type of shipping bill has its own purpose based on the commodities and export procedures.

How to Create and File a Shipping Bill

Filing a shipping bill is not so complicated, particularly with the facility of the Indian Customs Electronic Gateway, ICEGATE. The following are the steps:

• ICEGATE Registration: Exporters need to get registered with the help of IEC Code-Importer Exporter Code and AD Code-Authorized Dealer Code from their respective banks.
• Fill up Shipping Bill Details: Fill in all details related to shipment including vessel name, cargo details, an invoice, and export duty.
• Submit Required Documents:
  • Attach copies of the invoice, packing list, customs clearance form
• Verification by Customs: The given details will be verified by the customs officer. They may require additional details from your end and if everything is correct, a Let Export Order will be given.
• Track Shipping Bill Status: You can check the status of your shipping bill through the ICEGATE portal.

Sample Format of a Shipping Bill

Here’s a simplified example of what a shipping bill might look like:

Field	Details
Exporter Name	ABC Exporters Pvt. Ltd.
Exporter Address	123 Export Lane, Mumbai, India
Buyer Name	XYZ Importers Inc., USA
Goods Description	Fresh Mangoes
Quantity	1000 Boxes
Invoice Number	INV-00123
Mode of Transport	Sea
Vessel Name	MV Global Express
Port of Departure	Mumbai Port
Port of Destination	New York Port
Export Duty	Nil (Duty-Free)
GST Details	18% GST Applied
Export Scheme	Drawback Scheme

Conclusion

A shipping bill is a critical document in the export process. It is used to clear goods at customs and lawfully export the shipment abroad. In this way, understanding the purpose, types, and filing of a shipping bill helps exporters avoid delays and run operations smoothly. Tools like the ICEGATE portal make it easier and more compliant with regulations.

No matter whether you’re an experienced exporter or just breaking into the game, this article should give you the confidence you need to face the intricacies of shipping bills. Remember that the shipping bill is not only a formality but a necessary part of international trade that ascertains legality and smooth goods flow across borders.

Ready to Streamline Your Export Process?

At BriskPE, we offer fast, secure, and cost-effective international payment solutions tailored to your needs. Experience seamless global transactions with competitive exchange rates and fees under 1%. Sign up today and simplify your international payments.