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get which of these need to be mentioned for making a shipping bill from screen.
Shipping bill is a mandatory document to obtain customs clearance in exports. Read this guide to learn what it means and how it is generated.
Shipping Bill | Understand the Meaning, Types & Format
04/03/2022 6 Min Read Share It:
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Multiple documents are required to be prepared and furnished to complete an export trade. One of the most crucial among these documents is the Shipping Bill.
What is a Shipping Bill?
To obtain clearance for exports from customs, you have to submit a Shipping Bill in the form of an application. Whether you are shipping your export items by air, sea, or road, an exporter cannot load the goods without filing the Shipping Bill.
A Shipping Bill must be submitted electronically unless the Commissioner or Principal Commissioner makes an exception and allows you to submit it physically. Shipping Bills are color-coded depending on the export type.
Types of Shipping Bills
There are four types of Shipping Bills:Dutiable Shipping Bill: It is printed on yellow paper and is meant for goods that are to be exported on payment of export duty.Duty-Free Shipping Bill: It is printed on white paper and is for goods exported without duty payment. These are not eligible for duty drawback.Drawback Shipping Bill: It is printed on green paper, but once the drawback has been paid it is printed on white paper.Shipping Bill for export of goods under Duty Entitlement Passbook Scheme (DEPB): It is printed in blue; this is for goods exported under the government’s DEPB export incentive scheme.
In a notification dated 25th March 2019, the Shipping Bill and Bill of Export (Forms) Amendment Regulations, 2019, was introduced. This defined the forms for various types of Shipping Bills.Also Read : Pro forma Invoice v/s Commercial Invoice
How is Shipping Bill generated?
The Central Board of Indirect Taxes and Customs has a national platform named Indian Customs Electronic Gateway (ICEGATE) that provides e-filing services, including electronic filing of Shipping Bills. To facilitate faster Customs clearance, ICEGATE is linked with multiple organizations like the Reserve Bank of India (RBI), Directorate General of Foreign Trade (DGFT), government ministries, and government partner agencies.
The Indian Customs EDI System (ICES) acts as the online and real-time interface for custom clearance through ICEGATE and via Electronic Data Interchange (EDI). ICES has also enabled internal automation of the Custom House.
Also Read: How to file a Shipping Bill Online
Process for Generating a Shipping Bill
Before filing a Shipping Bill for Export, exporters or Customs House Agents (CHA) have to register with the EDI system using IEC code, AD code, and/or CHA license number.
Under the EDI system, the Shipping Bill has to be submitted in the prescribed format at the Customs service centers. It is accompanied by copies of the invoice and packing list.
Upon submission, a checklist is generated, which has to be verified by the exporter or the CHA.
The verified data is then submitted to the EDI system by the service center operator. The system generates a Shipping Bill Number, which is endorsed on the printed copy of the checklist and given back to the exporter or the CHA.
Generally, the Shipping Bill is processed by the system itself without any human aid or intervention. This is done based on declarations made by the exporter. However, the assessment of Shipping Bills for FOB value of over Rs 10 lakh, free sample of over Rs 20,000, or drawback amount of over Rs 1 lakh is done by the Assistant Commissioner of Exports.
If any export cess needs to be paid, the requisite challan is made available to the exporter and the amount can be paid at a designated bank. No copy of the Shipping Bill is made available to the exporter at this stage.
One can check the status of the Shipping Bill at the service center. Besides, any query raised can be seen and replied to in the service center.Also Read : __What is a commercial invoice | Understand the Format & Template requirement for export
How to correct or ammend a Shipping Bill?
Corrections or amendments in the declaration can be made at the service center, provided the documents have not yet been submitted in the system and the Shipping Bill has not yet been generated.
However, if any changes are deemed necessary after the Shipping Bill number is generated or the arrival of the goods at the Export Dock but before the granting of ‘Let Export’ of the goods, it can be done by the Assistant Commissioner of Exports.
If the ‘Let Export’ has also been issued, any changes can be made only by the Additional/Joint Commissioner, Custom House, in charge of the export section.Also Read : Documents required for your Export Order
Format and Content of the Shipping Bill
Now let us look at the complete format of Form SB I (Regulation 2). The various fields required to be filled in are related to the following:
Exporter, buyer, and customs broker details
Carrier, port, and transportation details
Cargo-related itemized information
Export duty and GST-related information
Export scheme/job work/re-export details
Difference between Shipping Bill and Bill of Lading
Shipping Bill is a document required for customs clearance. The application is prepared according to the category of export goods. It is issued by the shipping agent on behalf of the parties, including the buyer, seller, C&F agent/global freight forwarder/Customs Broker, etc. It is a necessary requirement for allowing shipment to be cleared by the customs authority.
To acquire a clearance for export, from the Customs, an exporter will have to submit Shipping Bill’. Read to know more about Shipping Bill and its format.
Shipping Bill – Meaning & Format
Updated on : Jan 12, 2022 - 12:11:17 PM
12 min read.
A Shipping Bill is an important document required by the customs authorities for the clearance of goods.
What is a shipping bill?
An exporter, while sending goods from one country to another has to go through various formalities including submitting various applications, acquiring licenses, paying duties and so on. To acquire a clearance for export, from the Customs, an exporter will have to submit an application called the ‘shipping bill’. One cannot load the goods unless the exporter files the shipping bill. The export may be by air, vehicle, or vessel. The goods can only be taken on board if the goods are accompanied by certain documents as described below:
At seaport/ airport Shipping bill
At land customs station Bill of export
For goods transhipment Bill of transhipment.
A shipping bill is to be submitted electronically. However, the Principal Commissioner or the Commissioner may grant an exemption and accept a physical application, where an electronic submission is not feasible. A shipping bill has various forms which are differentiated by colour. The colour schemes denote the following:Sr. No. Form Name Colour
1. Dutiable Goods Yellow
2. Duty-free goods White
3. Goods with drawback claims Green
4. Goods allowed to be exported as duty-free ex-bond Pink
5. Export goods under DEPB Scheme Blue
How does the shipping bill process work?
A shipping bill can be filed after the particular vessel/ship, etc., is granted with entry outwards that allows it to move out of the country. Once the bill is submitted, it is physically verified and the value of the goods intended for export are assessed by the customs authorities. The customs authorities verify these bills and endorse the copy with ‘LET EXPORT ORDER’ and ‘LET SHIP ORDER.’
Procedure for generation of shipping bill
The exporter gets registered with the Customs with their IEC Code No. or Customs House Agents (CHA) license No. and Authorised Dealer Code No. of the bank through which the export proceeds will be realised.
A declaration in a specific format signed by the exporter or his authorised CHA is to be submitted at the service centre along with a copy of the invoice and the packing list.
After the data entry is completed, a checklist will be generated and the same is handed over to the exporter.
The exporter verifies the data and intimates the service centre.
Once the data is verified and corrected, it automatically gets processed.
It will be assessed by the Assistant Commissioner (export) when the value of such goods is more than Rs.10 lakhs, or it contains free samples worth more than Rs.20,000 or if the drawback amount exceeds 1 lakh.
After the processing is done, the exporter can check the status of the bill with the service centre.
Sometimes, queries might be raised to an exporter, who will have to file his reply through the service centres.
At the docks, all the original documents such as invoice, packing list etc. are to be submitted by the exporter/CHA along with a checklist.
If everything is in order, ‘Let Export Order’ will be issued by the proper officer.
Once the ‘Let Export Order’ is issued, the print out of the shipping bill gets generated.
Format of shipping bill
The format of shipping bill is as follows: The form above should be accompanied with the documents enlisted below: a. Invoice b. Packing list c. Export license d. Indent e. Acceptance of Contract f. Letter of Credit g. QC Certificate h. Port Trust Document i. Any other (as specified)
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Shipping Bill Importance and Uses
Guide to Filing shipping bill for export of goods. Complete guide includes checklist draft, shipping bill draft and necessary information
Shipping Bill Importance and Uses
November 24, 2019 Gurneel Kaur 11 Comments
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The shipping bill is an essential document issued by the Customs Service Centre after the exporter applies to acquire this bill. This bill facilitates the exporter to get customs clearance, load the goods, and claim duty drawbacks. Exporter should submit the shipping bill copy or original to the bank after receiving payments from the clients.
Procedure of Shipping Bill
The exporter’s IEC code should be registered with EDI. After that their authorized representative can apply for an export shipping bill to the Customs Service center. Exporter should provide original copy of invoice and packing list for filing of shipping bill. Indian Customs Electronic Gateway provides online service to apply for the shipping bill.
This is followed by the generation of a checklist to the exporter or the custom housing agent. The CHA or the exporter verifies the checklist and informs the service center to generate final shipping bill. Please find draft of checklist below
Download [15.11 KB]
3. Shipping Bill Number
The verified details are submitted to the EDI system by the service center. This system issues an automatic shipping bill number, endorsed on the checklist. Click here to see a shipping bill draft.
Assistant Commissioner evaluates a consignment in case the value of exports exceeds INR 10,00,000, or contains samples worth more than INR 20,000 or the drawback amount exceeds INR 1,00,000.
5. Status Check
The exporter can check the status of the shipping bill with the service center. In case of any query raised, the same needs to be replied by the exporter through the center.
6. Let Export Order (LEO)
After completion of the process, the required original documents are submitted at the docks. ‘Let export’ order is issued and exporter receives the hard copy of the shipping bill.
What does Shipping Bill include?
1. General details of Exporter, Buyer, and the Custom agent.
2. Transportation and port of loading and discharge details.
3. Cargo details (gross and net weight, nature).
4. Invoice Details (number of the commercial invoice, nature of payment, the invoice value in both the currencies).
4. GST and export duty-related information.
5. Re-Export details (if any).
6. FOB price and insurance amount of the commodity.
7. Container Numbers.
8. Exchange Rate.
9. Duty Drawback Details (Subsidy by the Government).
10. Merchandise Exports from India Scheme (MEIS) Availed or Not.
11. Export Promotion Capital Goods (EPCG) details if any.
To conclude, a shipping bill is necessary to facilitate the moving of goods out of a country. It serves as a certificate for custom clearance. Generation of Shipping bill will happen only after completion of the custom clearance process for the goods. As per RBI guidelines, it is necessary to map foreign remittances received with the shipping bill of the export shipment. Exporter should map all foreign remittances received with the shipping bills. For generation of Bank Realisation Certificate (BRC) it is necessary to submit shipping bill and other documents to the bank. This is necessary in order to avoid blacklisting of IEC code of your company by RBI.