Shipping bill

From CEOpedia | Management online

Shipping bill (alternative term for bill of export) is a key document required by the customs authorities to allow the shipment. Shipping bill is necessary to be able to transport goods to specific places. Used in both land transport, air transport and maritime transport. Shipping bills can be electronic or manual. Manual shipping bill is a traditional option. While, an electronic shipping bill is required by the Custom Electronic Data Interchange system (Custom EDI) under which the computerized processing of the bill[1].

Types of shipping bills

There are 3 key types of shipping bills[2]:

  • Free shipping bill - it is used in the case of transport of goods not subject to customs duties (no export duty).
  • Drawback shipping bill - it is the bill used for the export of goods which are covered by the right to return the duty.
  • Dutiable shipping bill - it is used for goods subject to customs (export duty/cess).

Types of shipments due to the format according to N.K. Sharma[3]:

  • "White Shipping Bill in triplicate for export of duty free of goods.
  • Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback.
  • Yellow Shipping Bill in triplicate for the export of dutiable goods.
  • Blue Shipping Bill in 7 copies for exports under the DEPB scheme."

Documents required for processing the shipping bill

Necessary documents[4]:

  • GR(Guarantee of Remittance) forms regarding the bank guarantee that the payment for the exported goods will be paid on certain dates (two copies).
  • Packing list in which exact data on the contents of the parcel, net weight and gross weight will be found (four copies).
  • Invoice in which indicated all the details of the goods being transported. The following are required: total fob/cif value, number of pachages, quantity, unit rate, comprehensive description of goods (four copies).
  • Letter of credit, purchase order and contract.
  • Inspection Certificate.

Export procedure

The export procedure is as follows[5]:

  1. Receipt of an Order - exporter has to designate distributors responsible for placing orders from abroad. Exporter is required to register with institutions such as a tax office, RBI etc. Importer transfers the order straight to exporter or exporter receives order via Indent House.
  2. Obtaining Quota and License - the exporter is required to obtain an export license from the government. Quota is an exact, total quantity of goods that can be exported to other countries.
  3. Letter of Credit - importer has to provide to the exporter with a letter of credit, sometimes it is possible to send it with the order.
  4. Fixing Exchange Rate - the importer and exporter collectively set the rate for the exchange of goods on the basis of the applicable exchange rates.
  5. Foreign exchange formalities - at this step, the exporter must complete the formalities related to the exchange of currencies
  6. Preparation for executing the order - implementation of all arrangements regarding the order.
  7. Formalities done by forwarding agent.
  8. Bill of Lading - receipt of an official confirmation from the forwarding company about the receipt of goods intended for a shipment.
  9. Shipment advice to importer
  10. Presentation of documents to the bank - preparing an exchange card based on a commercial invoice. The bill is transferred by the exporter to the bank.

Examples of Shipping bill

  • Shipping bill of lading: A bill of lading is a document that is used by the carrier to acknowledge receipt of goods and serve as evidence of a contract of carriage. It is a receipt for the goods, issued by the carrier to the shipper. The bill of lading serves as an acknowledgement of the shipment and is used to track the shipment, collect payment for the goods, and provide evidence of title for the goods.
  • Electronic shipping bill: An electronic shipping bill is an electronic document used to process shipments and customs clearance. It is typically used in a Customs Electronic Data Interchange (Custom EDI) system, which is a computerized system used by customs authorities to facilitate the flow of data between shippers, carriers, and customs officials. Electronic shipping bills are used to provide customs authorities with information about the shipment, such as the type of goods being shipped, the destination, and the value of the goods.
  • Air waybill: An air waybill is a document used by airlines to transport goods by air. It is similar to a bill of lading, but it is specifically for air transport. The air waybill contains information about the shipment, such as the weight and dimensions of the cargo, the destination, and the contact information of the shipper and consignee. The air waybill also serves as a receipt for the goods, and is used to track the shipment and collect payment for the goods.

Advantages of Shipping bill

A Shipping bill is an important document needed by customs authorities to facilitate the shipment of goods. It is used in land, air and maritime transport and can be either manual or electronic. The advantages of using a Shipping bill include:

  • Increased efficiency in the transport process. By using a Shipping bill, customs authorities can quickly and accurately process the shipment, allowing it to pass through quickly and without delay.
  • Improved accuracy. By using a Shipping bill, customs authorities can easily track the shipment and ensure that all necessary documents are collected and verified. This helps to reduce errors and delays.
  • Reduced paperwork. By using a Shipping bill, customs authorities are able to reduce the amount of paperwork required to process the shipment. This is beneficial to both the shipper and the customs authorities.
  • Improved security. By using a Shipping bill, customs authorities can better monitor and control the shipment, preventing any illegal or dangerous materials from entering the country. This ensures the safety of the shipment and the people handling it.

Limitations of Shipping bill

Shipping bills can be a useful document for businesses and customs authorities, however, there are some limitations.

  • Shipping bills may become outdated quickly as regulations and procedures change frequently in the industry.
  • Ensuring accuracy of the bill can be difficult and time-consuming as it requires keeping up with ever-changing regulations and ensuring that all information is correct.
  • It can be difficult to track and manage the paperwork associated with shipping bills, as they can be voluminous and require organization.
  • Shipping bills can be time consuming and expensive to generate, as they must often be prepared in multiple languages and have to be completed accurately and in the required format.
  • They can also be difficult to verify, as it requires a full understanding of the regulations and procedures involved in the movement of goods.

Other approaches related to Shipping bill

One approach to managing the shipment of goods is through the use of a shipping bill. Other approaches include:

  • Electronic Data Interchange (EDI) - EDI is an electronic system used to exchange data. It is commonly used in the transportation industry to exchange documents and information. In the case of a shipping bill, EDI can help to speed up the process of submitting and receiving documents required for the shipment.
  • Document Imaging - Document imaging is the process of scanning and storing physical documents in a digital format. This is often used to store copies of shipping bills and other documents related to the shipment. This can help to improve document tracking and organization.
  • Automated Shipping Software - Automated shipping software is a type of software that can be used to manage the entire shipping process, including the generation of shipping bills. This type of software can help to streamline the process and reduce the amount of manual work that is required.

In summary, there are a variety of approaches that can be used to manage the shipment of goods, including the use of a shipping bill, electronic data interchange, document imaging, and automated shipping software. Each of these approaches can help to streamline the shipment process and ensure that all documents necessary for the shipment are submitted and received in a timely manner.

Footnotes

  1. ↑ Vasudeva P.K.,(2011),p.251
  2. ↑ Khanka S.S.,(2006),p.697
  3. ↑ Sharma N.K.,(2011),p.12
  4. ↑ Vasudeva P.K.,(2011),p.197
  5. ↑ Sharma N.K.,(2011),p.13


Shipping bill — recommended articles
Consular Invoice — Dispatch note — Import declaration — Dock receipt — Waybill — Notice of arrival — Ultimate consignee — Cargo manifest — Delivery note

References

Author: Sabina Łach

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