Seeking opportunities to expand your export business? You need to follow some systematic export procedures to maintain your business on an international platform. In this case, you need to obtain the shipping bill from customs to initiate your export venture. The shipping bill is an essential document needed by the customs officials to approve the dispatch of goods from one port to another.
In this blog, we will discuss every step of filing a shipping bill online, starting with registration, submission, and verification. With the help of a digital platform, you can speed up the shipping bill application process to go easy with international shipping transactions.
What is a Shipping Bill?
The shipping bill refers to the document with which the customs authorities permit the exporters to ship their perishable cargo from the local port to the desired port. The bill provides all the information relating to the perishable cargo being exported, including the name of the vessel, the intended destination where the shipment needs to be landed, its value, and other relevant details.
What are the different types of shipping bills in export?
- Drawback Shipping Bill
- Dutiable Shipping Bill
- Duty-Free Shipping Bill
- Coastal Shipping Bill
- Ex-Coastal Shipping Bill
Applications of Shipping Bills
Legal Compliance: A shipping bill is an exporter's formal declaration to customs, detailing the description, quantity, value, and destination of goods.
Custom Clearance : Filing a shipping bill ensures hassle-free customs clearance to avoid delays and heavy fines or penalties while exporting goods.
Transparency : The shipping bill provides all the information about the goods being shipped to promote international transactions easily.
Incentives : The shipping bill offers various incentives to the exporters, such as export promotion schemes (EPO), duty withdrawals, and tax refunds.
Risk Management : The shipping bill helps the exporters ascertain the value, quantity, and nature of the goods being shipped. The exporters can reduce the possibility of mistakes, inconsistencies, and any kind of misunderstanding during transit.
Track Record : The shipping bill serves as a record of all completed export transactions and can be consulted for future audits and verification.
Shipping bills were filed in 1991 in accordance with the format required by the Shipping Bill and Bill of Export (Form) laws. On March 25, 2019, the Shipping Bill and Bill of Export (Forms) Amendment Regulations, 2019 were introduced, outlining the various types of Shipping Bills forms.
The following updated formats were added with this amendment:
- Shipping Bill for Export of Goods (Original), Form SB-I under Regulation 2.
- Shipping Bill for Export of Goods (Quadruplicate), Form SB-I under Regulation 2. [Copyright for Export Promotion]
- Bill for Export of Goods (Original) under Regulation 3, or Form SB-III
- Form SB-III, also known as the Bill for Export of Goods (Quadruplicate) [Export Promotion Copy], is required by Regulation 3.
The updated formats are contained in the notice dated March 25, 2019. The following fields will require information when filing the shipping bill in the new format:
- Buyer, exporter, and customs broker details
- Port, carrier, and mode of transportation information
- Purchase order and invoice information
- Itemized information about the related cargo
- Export duties and GST information
- Export plan/employment work/ and re-export details
How to generate a shipping bill online?
Filing a shipping bill online is quite easy. If you are using the ICEGATE platform for the first time, you need to go through the registration process. Depending on the nature of your perishable goods, this process involves printing and filling out Form SB I or SB II. After completing the form, collect the documents listed there. The form and requisite documentation must be submitted to the customs officer positioned at the export destination prior to the consignment being placed onto the vehicle for transportation.
Let us brief here the process of filing a shipping bill online:
1. Register with Customs : Exporters need to register on the ICEGATE portal with their designated bank’s Authorized Dealer Code (AD Code) and their IEC ( Import Export Code ) or Customs House Agents license number.
2. Visit the ICEGATE website : After the registration, log in to the ICEGATE with the provided credentials.
3. Fill out an Application : A copy of the invoice and the packing list , as well as a statement in a predetermined format signed by the exporter or his authorized CHA, must be submitted to the service center.
4. Checklist : A checklist is created and sent to the exporter or the Customs House Agent (CHA) upon submission of the application. The exporter, or CHA, confirms the checklist and notifies the service center to produce the shipping bill.
5. Shipping Bill Numbe r: After the service center submits the verified information to the EDI (Electronic Data Interchange), the system automatically generates a shipping bill number that is validated on the checklist.
6. Valuation : The Assistant Commissioner (export) will evaluate it if the items are valued at more than Rs. 10 lakhs, if there are free samples valued at more than Rs. 20,000, or if the drawback amount is more than Rs. 1 lakh.
7. Status of the Shipment : At the support center, the exporter can inquire about the shipment bill's status. The exporter must use the center to submit the required responses in the event that any queries are raised.
8. Let Export Order (LEO) : Original paperwork is submitted to the docks upon completion of the process. After the exporter obtains a hard copy of the shipping bill, the "Let export" order is issued.
How to download shipping bill online from ICEGATE?
An exporter needs to follow these steps to download the shipping bill from ICEGATE (Indian Customs Electronic Commerce/Electronic Data Interchange Gateway), which are listed below:
1. Visit the ICEGATE Portal : To begin, open your web browser and enter "ICEGATE" into the search field. When the link to the official ICEGATE website shows the search results, click on it.
2. Register or Log in : If you have an existing account on ICEGATE, then it sounds great. Enter your password and username to log in. You must create an account if you're new to ICEGATE. Don't worry, creating an account is simple; just follow the steps.
3. Locate the Shipping Bills Section : After logging in, search the website for the area mentioned for shipping bills. It may have a label that reads "Shipping Bills." To locate it, you might have to look through several menus or tabs.
4. Enter Shipping Bill Details : You can enter the details of the shipping bills you wish to download using the form or search bar located in the shipping bills section. This could contain the date range, the shipping bill number, or other pertinent data. Please accurately fill in these details.
5. Find Shipping Bills : After providing the required information, locate the shipping bills that meet your criteria by clicking the search or submit button. Based on the data you entered, the website will then display a list of shipping invoices for you.
6. Choose the Preferred Shipping Bills to Download : Navigate to the shipping bills list and pick the ones you wish to download. If necessary, you may be able to choose more than one shipping bill at once.
7. Download the Shipping Bills : Click the download button after choosing the desired file format. Your shipment bills will then be ready for download on the website. Your browser will usually prompt you to save the files to your computer when they're ready.
8. Check the Downloaded Files : Once the download is finished, check the files to ensure the shipping bill details are correct. Verify again that everything appears correct.
9. Save and Organize the Files : Lastly, save the shipping bills that you downloaded to a computer area that will make them accessible to you. To maintain organization, you might wish to make a folder only for your shipping bill documents.
Conclusion
To go along with your export venture, you must obtain a shipping bill from ICEGATE. The bill not only helps to move your perishable cargo from one port to another but also offers a smooth customs clearance process. Citrus Freight provides you access to EDI (Electronic Data Interchange) for the submission of shipping bills through the ICEGATE portal to enhance international cargo transportation.