Export from India requires special documents, depending on the type of product and destination. Export Documents not only give details on the product and its destination port, but are also used for the purpose of taxation and quality control inspection certification. Any goods moving out of the country need to be approved by the Customs Authorities, through a mandatory filing of a legal document called Shipping Bill. It is the main document based on which the customs office gives permission for exports. If the export is by sea, it is a shipping bill, and if the goods are sent by air, it’s called an Airway Bill.
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A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, including ship's owner, seller, buyer and all other parties involved. It contains all the details on the goods being exported, the name and information of the vessel of export, consignee details, port of loading, the port at which the goods must be offloaded, country of final destination, exporter’s name, address, terms of delivery, terms of payment and other details. The exporter prepares the Shipping Bill for obtaining customs clearance. Once the customs authorities receive the shipping bill, they conduct an assessment and examination procedure, after which, a “Let Export Order” is issued on the shipping bill duly signed and sealed by the customs officials.
Most exports in India are eligible for incentives, and other benefits. In cases where the exporter is required to pay duty to the exporting country’s government, he can claim exemption from duty. Categorising the different types of exports makes it easy for customs officials to identify which category they fall under. This is done by filing different types of shipping bills, which are colour coded. The types of shipping bills are explained below:
1. Duty Free Shipping Bill
Exports which are not required to pay any customs duty and not eligible for duty drawback are filed on a duty free shipping bill. It is printed on a simple white paper.
2. Dutiable Shipping Bill
Certain goods attract export duty, which must be paid to the customs department. They may or may not be eligible for duty drawback. It is printed on yellow paper.
3. Drawback Shipping Bill
It is used for goods which are eligible for refund of duty. It is printed on green paper, but, once the drawback claim has been paid to the bank, it is printed on yellow paper.
4. Ex-Bond Shipping Bill
Some goods are imported and awaiting re-export. These goods are stored in bonded warehouses. Such goods are reported on an Ex-Bond Shipping Bill which is printed on Pink Paper.
5. Coastal Shipping Bill
It isn’t exactly an export document. It is filed in the case of shipment that is moved from one port to another, within India.
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Exporters have to file several important documents prior to shipping goods or commodities from one country to another. A shipping bill is one such document. It must be prepared and filed by the exporter to get the customs clearance.
After verification of the shipping bill also called the bill of export, the customs authority permits the export of commodities. It is worth noticing that the bill of export needs to be filed in all formats of the shipment. The bill can be submitted manually or electronically and should be filed according to the norms of the customs department of every country.
Types of shipping bills
1. Duty-free shipping bill
Duty-free shipping bill shall be printed on a simple white paper. The exports that do not qualify for duty drawback and required for customs duty remittance, shall be filed on a duty-free shipping bill.
2. Dutiable shipping bill
Certain commodities attract export duty that must be remitted to the customs department. Dutiable shipping bill might or might not be entitled to duty drawback. It shall be printed on a yellow paper.
3. Drawback shipping bill
Drawback shipping bill must be filed when the commodities to be shipped are eligible for the repayment. It is printed on a green paper.
4. Coastal shipping bill
Coastal shipping bill is not an export document. When the shipment is moved from one port to another within India, the bill must be filed.
5. Shipping bill for shipment Ex-bond
When the goods to be imported are stored at bonded storehouses awaiting re-export, ex-bond shipping bill must be filed. The bill shall be printed on a pink paper.
The documents to be attached with the shipping bill include the packing list, the invoice copy, the letter of credit, the contract acceptance, the QC certificate, the port trust document, the indent and other important documents.
Particulars |
Forms |
Copy Type |
Bill for Export of Goods |
Form SB III (regulation three) |
Original |
Bill for Export of Goods |
Form SB III (regulation three) |
Quadruplicate (export promotion copy) |
Shopping Bill for Export of Goods |
Form SB (regulation two) |
Quadruplicate (export promotion copy) |
Shopping Bill for Export of Goods |
Form SB (regulation two) |
Original |
A bill of lading, which also serves as a shipment receipt, is primarily a legal document granted by a carrier to a shipper. This document describes the quantity, type and destination of the commodities to be exported. An authorized representative from the receiver, carrier and shipper has to sign the document, which should go with the shipped commodities. It has two types: 1) negotiable bill of lading and 2) non-negotiable bill of lading. In case of a negotiable bill of lading, clear instructions are provided to deliver the commodities to anybody who has the original copy of the bill. In case of a non-negotiable bill, the consignee to whom the freights shall be delivered is specified.
A certificate of manufacture is an authorized document, which certifies that the manufacturer has produced the ordered commodities and such goods are being held for the buyer’s account and at his risk. This document is used by the suppliers of the finished goods to show the changes made to the process or formula. The revision date has to match the date mentioned on the master file. The certificate of manufacturer should contain the following details:
According to Section 16 of the Goods and Services Act, 2017,“Zero Rated Supply” means any of the following:
Exports of goods or services from India attracts nil GST. However, if GST is paid at any point of time against exports, a refund can be claimed. A registered person making Zero Rated Supply can claim refund of unutilized input tax credit without paying integrated tax, or make payment of integrated tax and claim refund of the tax paid. Persons who export without paying integrated Tax can do so upon producing a Letter of Undertaking (LUT) or Bond.
Bonds are financial instruments that signify a debt owed by the issuer. If payment of GST is mandatory at any stage of export, the exporter can either pay the tax and claim a refund at a later time, or take a bond against the amount of tax payable, then cancel that document by providing documents as proof of export.
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A Letter of Undertaking (LUT) is a guarantee furnished by the exporter that he is engaged in export of goods and services and that he has satisfied all the conditions for export, to be eligible for non-payment of GST. It is like permission taken from the government of India, to avoid paying GST.
Some of the other documents required for Export are:
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