|Methods and techniques|
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.
Types of shipping bills
There are 3 key types of shipping bills:
- 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:
- "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
- 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.
The export procedure is as follows:
- 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.
- 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.
- 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.
- Fixing Exchange Rate- the importer and exporter collectively set the rate for the exchange of goods on the basis of the applicable exchange rates.
- Foreign exchange formalities - at this step, the exporter must complete the formalities related to the exchange of currencies
- Preparation for executing the order - implementation of all arrangements regarding the order.
- Formalities done by forwarding agent.
- Bill of Lading - receipt of an official confirmation from the forwarding company about the receipt of goods intended for a shipment.
- Shipment advice to importer
- 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.
- Vasudeva P.K.,(2011),p.251
- Khanka S.S.,(2006),p.697
- Sharma N.K.,(2011),p.12
- Vasudeva P.K.,(2011),p.197
- Sharma N.K.,(2011),p.13
- Khanka S.S., (2006), Entrepreneurial Development, "S. Chand Publishing"
- Rohter L., (2008), Shipping Costs Start to Crimp Globalization,"The New York Times"
- Sharma N.K., (2011),Export Marketing,"Think Tanks Biyani Group of Colleges"
Author: Sabina Łach