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CSB-IV or CSB-V: Which Courier Shipping Bill is Better?

Blog Summary

Courier Shipping Bills (CSBs) are mandatory documents required by Indian Customs for exporting goods through courier services like FedEx. They are divided into CSB-IV (for non-commercial shipments like samples, gifts, or personal-use items) and CSB-V (for commercial shipments).

  • CSB-IV is best for individuals or small exporters sending samples without GST/IEC requirements.

  • CSB-V is essential for registered exporters shipping goods commercially, offering benefits like GST refunds, MEIS scheme eligibility, and e-BRC issuance.

Choosing the right CSB ensures faster customs clearance, compliance with DGFT, eligibility for government incentives, and prevention of penalties. Platforms like ShiprocketX simplify the process by providing end-to-end support, customs clearance assistance, and real-time shipment tracking.

What Are Courier Shipping Bills and Why Are They Required?

Courier Shipping Bills (CSBs) are mandatory documents required by Indian Customs when goods are exported through courier partners such as FedEx.

This courier shipping bill includes necessary details like,

  • Sender and recipient details
  • Goods’ description
  • Value of the goods
  • Reason for export

This custom clearance bill is a part of the Courier Imports and Exports (Regulations, 2010), and differs from the basic shipping bills used for cargo exports. They are categorised into two types based on the value and nature of the shipment:

  • CSB-IV
  • CSB-V

What Is CSB-IV and When Should You Use It?

A CSB-IV bill is specifically used to export non-commercial products, i.e., goods and samples. It simply informs the customs about what you are shipping from India.

As an exporter, you do not want to ship a bulk of goods internationally, only to receive minimal orders. The right approach is to send out samples of your new products, test the waters, and then decide.

The declaration is used only for goods valued up to INR 25,000.

What Is CSB-V and How Is It Different From CSB-IV?

A CSB-V bill is used to declare commercial goods and claim tax exemptions and duty refunds from the government. It is opted for by senders who are registered exporters, irrespective of whether they are a business or a sole proprietor.

The declaration is used for goods valued between INR 25,000 and INR 1,00,000.

Eligibility Criteria for Claim Under CSB-V

If you are sending goods under CSB-V, you can be eligible for a claim under the MEIS scheme. However, the government has set the following eligibility requirement for it:

  1. The value of the shipment should fall under the range specified by the government in the MEIS policy.
  2. The payment for the export should be received in foreign currency.
  3. Only specific product categories are considered for refund, such as:

If you meet the above-defined criteria, you can file for a refund and increase your profit margins.

How Does CSB-IV Compare to CSB-V Side by Side?

Comparing the various aspects of courier shipping bills, such as documentation, customs requirements, and eligibility for schemes, can provide greater clarity.

  1. Use Case
CriteriaCSB-IVCSB-V
Use CaseYou should use CSB-IV when:
– Sending free samples, gifts, or personal-use products
– Shipment values less than INR 25,000
– Goods are not shipped for sale or commercial use
You should use CSB-V when:
– Sending goods for commercial purposes
– Shipment values up to INR 10,00,000
– You are a registered business or exporter
  1. Key Features

Here is a quick comparison table to understand the key features of both courier shipping bills:

FeatureCSB-IVCSB-V
DocumentationNot requiredGST numberIEC codeHSN code
GSTNot requiredMandatory
Schemes EligibilityNoEligible for government incentives under the MEIS scheme
e-BRC Issued (Electronic Bank Realisation Certificate)NoYes
  1. Compliance Check
Compliance CheckCSB-IVCSB-V
Level of ComplianceBasic compliance and scrutinyDetailed customs documentation and compliance
Physical ScrutinyPhysical scrutiny of a certain amount of goods. The percentage will depend on the commodity’s value, weight, type, and the importer’s status.Goods are put under relatively less scrutiny, allowing for faster shipping.
GST Filing RequirementNot RequiredAn exporter has to file a GSTR-3B or GSTR-1, specifying the necessary information. Early submission helps avoid last-minute scrutiny and simplifies the GST refund process.

How Can the Right CSB Improve Efficiency and Compliance?

Understanding which Courier Shipping Bill (CSB) to use for a specific shipment helps streamline exports and ensures compliance with customs rules and the DGFT. It also helps in:

  • Quick custom clearance.
  • Prevention of the return of goods or penalties.
  • Receiving important export documents, such as e-BRC.

Which Courier Shipping Bill Is Right for You?

Submitting a CSB is crucial to simplify and streamline your export process. However, first, you need to decide if you have to provide CSB-IV and V. Let’s look at why you should choose one over the other:

Why Choose CSB-IV?

  • Ideal for small businesses or individuals without needing registration
  • Doesn’t require IEC or GST compliance
  • Cost-effective and applicable for small quantities of goods

Fewer goods, fewer paperwork, and time-saving.

Why Choose CSB-V?

  • Open for commercial exports with legal compliance
  • Helps businesses expand and grow internationally
  • Tax benefits like GST and duty refunds
  • Export goods through international eCommerce platforms like Amazon, Shopify, and Etsy

Submit the CSB-IV if you are sending out goods as samples, valued below INR 25,000.

Submit the CSB-V if you are exporting heavy-volume goods valued at more than INR 25,000 (but less than INR 10,00,000). In case you fail to do so, you can face serious consequences, such as:

  • Cancellation of the IEC number
  • Up to 2 years of imprisonment
  • Up to INR 50,000 of fine

How Can ShiprocketX Simplify Your International Exports?

Submitting a courier shipping bill is a crucial part of international trade. However, it is just one part of the extensive process. The real deal is in ensuring the timely shipment and delivery of your goods to avoid reputational damage and poor sales. That’s where ShiprocketX backs you up and makes sure your global business is a success. 

From simplified customs clearance and real-time updates to an in-transit security cover, our team takes care of everything. We have a team of cross-border experts who provide you with continuous support and solutions. ShiprocketX also builds your personalised tracking page that announces sales, recommends products, and collects feedback from international customers.

Conclusion

The CSB-IV and V are two of the most crucial documents for international shipments. It’s essential to understand the difference between these two for customs compliance, availing GST benefits, and strategic product targeting. 

So, whether you are a well-established company or building your brand, use the correct courier shipment bill to send the products across the border. By planning ahead, seeking assistance from a partner like ShiprocketX, and aligning with customs requirements, you can streamline operations and safeguard your export success.

What is a Courier Shipping Bill (CSB) in India?

A Courier Shipping Bill (CSB) is a mandatory customs document for goods exported through courier services. It provides shipment details like sender, recipient, product value, and purpose of export.

What is CSB-IV and when should you use it?

CSB-IV is used for non-commercial shipments such as samples, gifts, or personal-use items valued up to INR 25,000. It doesn’t require GST or IEC compliance.

Can I claim government incentives with CSB-IV?

No. Only shipments filed under CSB-V are eligible for schemes like MEIS and GST refunds.

Which CSB is right for small exporters?

Small exporters or individuals sending samples should use CSB-IV, while businesses exporting commercially must use CSB-V.

How does ShiprocketX help with courier shipping bills?

ShiprocketX ensures smooth customs clearance, compliance support, real-time tracking, and faster international deliveries while helping exporters manage CSB documentation seamlessly.

Ruchika Gupta

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