The shipping bill serves as a crucial document, similar to a passport for the business, providing customs authorities with key information about the goods being shipped, such as the nature of the product, its value, and quantity. Customs authorities rely on this information to calculate any applicable export duties or taxes. In international trade, the shipping bill ensures that goods move across borders smoothly while complying with all legal requirements. An export transaction cannot be completed legally or efficiently without a shipping bill.
How Shipping Bills Support Export Compliance
1) Helps In Customs Clearance
Customs officials use this document to verify that the exporter has provided all the necessary information & complied with export regulations, including IEC registration to identify the exporter or importer, GST registration for the exported goods, and AD Code registration to facilitate customs clearance and avail any applicable duty benefits. Failure to provide a shipping bill or submit the wrong details can result in the cancellation of the shipment or lead to legal action.
2) Tax Refunds & Incentives
When you export goods from India, you become eligible for various tax benefits, but this is only possible once you have AD Code registration. These benefits are offered in the form of refunds or incentives. Since all the necessary information is available on the shipping bill, the government uses this document to calculate any taxes you may owe and determine your eligibility for export-related incentives. Exporters can receive benefits like duty drawbacks, GST refunds, and even exemptions from export duties. Only exporters with a valid shipping bill containing accurate details can avail of incentives.
3) Proof of Export Completion
The shipping bill serves as proof that your export process has been completed. Once the cargo is successfully exported, the shipping bill acts as official evidence that the goods have left the country. This proof is essential for tracking and recording exports in the company’s financial records and other documentation.
4) Ensures Transparency & Accountability
The shipping bill contains important details related to your export transaction, including the description of goods, type, quantity, location, and mode of transport. Having all the export details in one document ensures transparency and accountability. This comprehensive data on a single document also assists the exporter for future reference, especially during audits, as all the information is accurately recorded.
5) Economic Analysis & Policies
The shipping bill serves as valuable data for the government, allowing them to analyze export trends, identify which products are being exported the most, recognize key markets, and assess the overall export sector. This helps the government make informed decisions regarding trade policies and incentives, benefiting exporters and supporting the overall economy.
Role of the Shipping Bill in Logistics Services
The shipping bill is an essential document in logistics services that ensures the smooth movement of goods during transportation. Once approved, it confirms that the goods are ready to move through the supply chain. The shipping bill provides customs authorities with information about products and more. It ensures compliance with legal requirements for exporting, helping to prevent illegal shipments. Lastly, It also simplifies financial transactions between exporters and importers, as banks often require a copy of the shipping bill.
What is the Procedure for Filing a Shipping Bill?
- Create a list of packing lists, invoice lists, & other documents. Send it to a licensed customs house agent.
- Your agent will file the shipping bill on the site (icegate.gov.in).
- Your cargo can be sent to the customs house after getting approved.
- After the verification, the customs authorities will grant clearance for your export shipment.
- A copy of your shipping bill will be sent to you.
Conclusion
To file a shipping bill, you’ll need to ensure you have your GST registration, AD Code registration, and IEC registration. This information is essential for the shipping document. If you haven’t already, contact E-Startup India for assistance!
What is Customs Clearance Procedure in Import-Export Business
Moreover, you require any kind of guidance related to the Import export code, please feel free to contact us at 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.