Decoding the Shipping Bill: A Comprehensive Guide for Exporters

To manage the complex international trade structure, shipping companies must adhere to a set of shipping regulations. One of the compliance is the shipping bill. A shipping bill is an application the exporter must fill out while transporting goods from one country to another.

They must go through certain legal formalities, licenses, paying duties, taxes, and tariffs to ensure a smooth journey without legal hindrance. As a bill, it helps organizations have a uniform record of the companies' expenses and the products they carry. 

In this comprehensive guide to the shipping bill, we will decode all the formalities under it, its types, and its content. We will also discuss the documents that you need for a shipping bill. 

What is a shipping bill for exports?

A shipping bill, a type of Bill of Lading (BOL), is a foundation document proving that transporting goods from one place to another is legal. The exporter or any other higher representative issues the document and marks the journey's beginning. Without this, you can not undertake your shipment at the loading port. You have to show this bill to the port authorities.

Shippers use different shipping bills depending on the nature of the cargo and shipments. It contains basic details of the shipments, such as the goods description, exporter details, total quantity, international trade route, and unloading location. 

What are the different types of shipping bills?

Six major shipping bills used by exporters serve different purposes for different modes of transportation. Following are the six main types of shipping bills: 

Shipping Bill for export of goods under the Duty Entitlement Passbook Scheme (DEPB): The print of the bill is blue, and exporters use it for goods mentioned in the government's DEPB scheme.  In addition, they offer some export incentives. This bill allows you to claim a refund of the export taxes and duties already paid on the materials imported and used for the exported goods. 

Dutiable shipping bill: This bill's print is yellow. It is used when transporting goods subject to an export duty, other taxes, and charges in the destination country. 

Drawback shipping bill: It is filled out for the goods requesting a refund for customs duties. This green-colored paper turns white after the payment. 

Duty-free shipping bill: This bill has a green print. It is filled for the exported goods without export duty payments. Also, they aren't eligible for duty drawback. 

Exbond shipping bill: These bills are filled for the goods previously stored in the warehouses and are reexported to other countries. 

Coastal shipping bill: This bill is filled when goods are meant to be transferred from one container port to another within the same country. It is mainly for domestic transportation. 

What documents are required for a shipping bill?

Exporters must submit the shipping bill to receive customs clearance. You can register for CBP (Custom Borders and Protection) in the USA. Following is the export documentation checklist to obtain the shipping bill; these are as follows: 

1. The form of shipment requires permission to export to another country. 
2. Export licenses are needed to confirm legal authorization for exporting specific goods. 
3. A packing list to access the cargo details, quantity, and gross and net weight of the cargo containers. 
4. Acceptance of the contract confirms the fulfillment of all the terms and conditions. 
5. Indent is the document affirming his formal order for goods with the suppliers. 
6. The purchase order specifies the purchase details when the buyer has purchased the goods. 
7. Invoices contain information about the package number, amount, volume, expense, and specifications of goods. 
8. The letter of credit confirms the payment. 
9. A quality check certificate affirms the quality of the goods transported. 
10. Then comes the port trust document, which proves the relevance of the trust authorities. 

Shipping bills are essential for supply chain analytics as all the documents required for analysis are there. 

How do you file a shipping bill?

Filling out the shipping bill is easy, but you must know the process to avoid mistakes or blunders. Let's examine the process of filing a shipping bill. 

1. The transportation of a ship, vessel, or mode of transportation must get outward entry permission. This permits the ship to move out of the country and export the goods. 
2. After the permission, the shipper can file a shipping bill that contains a detailed overview of the goods, the intended location, and the carrier’s information. 
3. After the shipping bill is submitted, the port authorities physically check all the goods and ships to ensure the details are correct and everything is compliant with export. 
4. Later, after the goods are verified, the shipping bill is endorsed with a LET EXPORT ORDER. This shows that the goods can be exported and transported to the assigned location. 

How do you generate a shipping bill number?

You can obtain a shipping bill number by registering on the official website of CBP (Customs Border and Protection) by using the Import Export Code (IEC). You have to sign in and fill in all the details regarding your shipment, then apply. After you generate the shipping bill, you will see a checklist. Affirm that checklist and ask the service center to generate a final shipping bill. They will undergo a thorough assessment and endorse your bill. LET EXPORT. After that, your shipment is ready to export. 

A shipping bill is the foundation of international trade's exporting aspect. So, you must have your shipping bill structured to avoid any legal implications. Exporters have to issue the shipping bill. Filing a shipping bill is very easy; you can manage this online. You can get your shipping bill number after providing all the documents and assuring all the adherences.