Global payments
Posted on May 16, 2025
Have you heard of the term "shipping bill" before as an exporter? If you are new to exporting, you might find this term a bit technical, but it is actually one of the most important documents to deal with while starting your export business in India.
Every exporter company, big or small, needs to file a shipping bill before sending out the products from India. It is a document for the custom department to check what goods are going out of the country, how much is it worth of and where is it going. Think of shipping bill as a green signal from the customs when you hear, "The shipment is good to go".
The world of export is filled with documentations, but the shipping bill is something you cannot ignore. Over this blog, we will explore the importance of shipping bill, what it is and why it matters.
What is a shipping bill?
A shipping bill is a document that any exporter must file with the customs clearance department before sending out the shipment from India. It is a kind of declaration of what is being exported out of India, it includes details like:
Nature of the goods
Value and quantity of goods
Exporter details
Consignee details
Mode of transport
Basically, a shipping bill is a custom's permission slip to allow the goods to physically leave India. Shipping bill is generated automatically through ICEGATE and is mandatory for clearing goods at ports or airports.
Once the shipping bill is approved, it acts as a basis for
Custom permission slip (Custom clearance)
Claiming benefits like RoDTEP
Filing for regulations under FEMA
If you are exporting without shipping bill in your hands, it means that you are shipping illegally. It is one of the key documents to prove that the transaction has actually happened.
Importance of the Shipping Bill for Exporters
If you are an exporter in India, then shipping bill is not just a formality to be done, it is actually a ticket for your goods to get out of the country. Custom department needs this document the most, without shipping bill, custom won't let your documents move.
Here is why the shipping bill is the most important document:
Official export declaration: The shipping bill tells the customs each and every detail of the shipment. Who are you sending it to, what's the value and quantity, and what are you sending, all the details are in the shipping bill.
Dependence of custom clearance: For custom department, no shipping bill means no clearance. It is a document that custom officers review before giving the green light for export.
Export incentive: For claiming the export incentives like RoDTEP, MEIS etc., you will be needing shipping bill as a proof.
Export history: For tracking export transactions, the shipping bill acts as a record for export history.
In short, if you are a first time exporter or doing it for a long time, shipping bill is one document you cannot skip.
Different Types of Shipping Bills for Exporters
Different types of exports require different kinds of shipping bills. Not all exports are the same, based on the nature of the shipment and the kind of export you are doing. Here is a list of different types of shipping bills-
Free shipping bill- This types of shipping bill is required when the exporting goods dont qualify for any export incentives.
Dutiable shipping bill- If you are exporting any kind off goods that require export duty, this kind off shipping bill will be required.Custom duty will be calculated based on the duty of the bill.
Drawback shipping bill- If you think you can claim a duty drawback and then this shipping bill is for you. It helps you in getting refund of duties that you have already paid while importing few raw materials of the shipment.
EPS shipping bill- This shipping bill stands for export promotion scheme shipping bill. This is for shipment exported under schemes like EPCG or MEIS.
Exporters can file for these shipping bills electronically through the ICEGATE portal, and based on the export declaration, the correct types of shipping bills are selected.
What are the Key Components of a Shipping Bill?
A shipping bill is one of the most important documents for moving your shipment out of the country. So, before going to fill out the form, it's important to know the key components of a shipping bill. Here is what you will find in a shipping bill:
Exporter Details: This section basically requires your details, like name, IEC code, address, etc.
Consignee Information: Details of who you are sending goods to, like- name, address, country etc.
Nature of consignment: An accurate description of the goods and nature of the consignment, like product name, type and its overall description.
HS code- This code helps the custom to identify the nature of your goods properly. This 8 digit code is crucial for incentive, compliance and duty.
Shipping bill type- As explaid above, different types of shipping bills, this will determine how custom department will treat your shipment.
Mode of transport: This clarifies whether your shipment will move through air, seo or land.
LUT/Bond details: If you are exporting without paying the GST, those details must be included here too.
Documents Required for Filing a Shipping Bill
You will need to arrange a few shipping bills before filling one out. This will help customs to verify your shipment and make sure everything is in order. Here is a list of documents needed:
Commercial invoice: This has the details of the goods being exported- quantity, quality, price, terms of sale, etc.
Packing list- This has details of goods that are packed- like weight, number of boxes, dimensions and what is inside the boxes.
IEC code- This is the importer exporter code, and it's like an ID card for your export business.
Export/Purchase order: This is a proof of order from your overseas buyers.
Declaration: A declaration provided by you that the information given is true and you have all the documents to verify it.
LUT or Bond documents: If you are exporting without GST under LUT then you need to submit the document for the same.
Once you have gathered all these documents, you are ready to file for shipping bill on the ICEGATE portal. The documents and details must be accurate, any mismatch might lead to rejection from the custom department.
What is the difference between a shipping bill and a bill of lading?
Exporters usually get confused between these two terms. So, here is a quick summary of the difference between the two:
🧩 Quick Summary:
Aspect | Shipping Bill | Bill of Lading |
|---|---|---|
Purpose | Customs clearance | Proof of shipment & transport contract |
Issued by | Custom department | Shipping line or carrier |
Focus | Export documentation | Logistics and transport |
Used by | Exporter, Customs | Exporter, importer and carrier |
Read more: What is a bill of lading? And where is it used?
Conclusion
Getting your shipping bill right is one of the most important steps in your exporting business. It is not just a regular document, it is important as it gets the green signal form the custom department of India to send your shipment abroad. Whether you are new to export or scaling up your export business, getting the right shipping bill will save you from the delays, penalities and missed opportunities.
At Infinity, we understanfd the importance of compliance related paperwork, especially when you alone have to deal with a number of documents and other paper work. That is why we help Indian exporters to not just receive international payments but also help you with export process from end to end.
FAQs
1. Is a shipping bill required for every export shipment from India?
Yes, filing a shipping bill is mandatory for all export shipments—whether by air, sea, or land. Without it, customs won’t allow the goods to leave the country.
2. Can I file a shipping bill manually?
No, in most cases, shipping bills must be filed electronically through the ICEGATE portal. This makes the process faster, more transparent, and trackable.
3. Do I need a shipping bill to receive foreign payment?
Yes. Banks and regulatory bodies often require a shipping bill to process and verify inward remittances under export transactions, especially for compliance with FEMA guidelines.
