What is a Shipping Bill and Steps to Generate it?
While shipping goods from one location to another, a supplier has to go through various formalities such as submitting various applications, shipping bill, paying duties, and so on.
To get custom clearance for export, a supplier will have to submit an application called the ‘shipping bill.’ Without filing the shipping bill, one cannot load the goods through air, vehicle, or vessel.
Online Procedure of Filing Shipping Bill
The procedure of filing a shipping bill In India is done through the ICEGATE platform. The procedure is very simple. An exporter can also hire a CHA for filing the bill of shipping and to complete the process.
For first-time users on the ICEGATE platform, the registration process is mandatory. An Exporter can also file the shipping bill by himself, by registering on the IEC (Import Export Code) and ADC (Authorised Dealer Code).
You simply need to submit the e-form with all the scanned copies of the documents for filing the bill of shipping. After document submission, the verification process starts. Once it’s done retain the printed copies of the verified shipping bills along with the shipping bill number.
Four Different Types of Shipping Bill
Drawback Shipping Bill
The drawback shipping bill is needed when goods and materials are imported to a country for processing and the customs duty that has been paid can be drawn back from the government. This is generally known as a drawback shipping bill that is printed on green paper, but once the drawback has been paid, it is printed on white paper.
Dutiable Shipping Bill
This type of shipping bill is printed on yellow paper for which attracts export duty. It may or may not be entitled to duty drawback
Shipping Bill for Export of Goods (DEPB Scheme)
The shipping bill for the export of Goods comes under the Duty Entitlement Passbook Scheme (DEPB) that is Printed in blue. It is for an export incentive scheme implemented by the Indian Government to the exporters of the country.
Duty-Free Shipping Bill
Duty-free bills are for goods exported without paying any export duty and are printed on white paper.
Offline Procedure of Filing Shipping Bill
The offline procedure of filing shipping bills has become outdated these days, given the online procedure of filing shipping bills is much more convenient and fast. However, in some cases, exporters still prefer the manual filing process. The documentation remains the same in the offline procedure. The only difference is that you have to visit the customs office to submit all the documents.
Important Steps Before Generating the Shipping Bill
Before the customs department generates the shipping bill, there are certain things that should be taken care of to complete this process.
For example, in case the exported goods fall under the Duty Exemption Entitlement Certificate or DEPB (Duty Entitlement Pass Book Scheme), the processing will be done under the DEEC group.
The custom duty officer also has the right to assess the value of the goods. He may ask you to submit the samples of the material and send them for the tests.
Once the checking of material is done, the customs department issues the “Let Export Order”.
The shipping bill is one of the most important documents that the exporters have to acquire from the customs clearance department. It is always advisable to take the help of a shipping service provider or CHA to complete the procedure without any unnecessary hassle!