What is a Shipping Bill? Export Clearance Step-by-Step
A structured overview of the Shipping Bill, export declaration categories, Let Export Order (LEO) milestones, and statutory Indian export compliance.
Executive Summary & Key Takeaways
- The Shipping Bill is the core statutory document required for all commercial exports leaving India.
- Selecting the correct Shipping Bill category is vital to protect exporter claims for Duty Drawback, RoDTEP, or scheme discharge.
- Bank Authorised Dealer (AD) Code registration at the port of export is an essential prerequisite.
- A Let Export Order (LEO) must be secured before cargo can be loaded onto an export vessel or aircraft.
What is a Shipping Bill?
A Shipping Bill is the statutory electronic document filed with Indian Customs by an exporter or their customs representative to obtain clearance for outbound cargo. Under Section 50 of the Customs Act, 1962, no goods can be loaded onto an export vessel, aircraft, or vehicle without presenting a Shipping Bill and securing a customs clearance order.
Filed via the ICEGATE platform, the Shipping Bill reconciles commercial transactions, GST obligations, foreign trade policy parameters, and foreign exchange reporting under the Reserve Bank of India (RBI).
Categories of Shipping Bills
Depending on whether the exporter is claiming export incentives or operating under duty-remission schemes, different Shipping Bill formats apply:
- •Free Shipping Bill: Used when exported goods do not claim any customs duty drawback or export incentives and carry no export duty liability.
- •Duty Drawback Shipping Bill: Filed when the exporter is claiming a refund of customs duties paid on imported inputs used in the manufacture of export products under Section 75.
- •Scheme Shipping Bill (Advance Authorisation / EPCG): Filed when goods are manufactured or exported in discharge of export obligations under specific DGFT license schemes.
- •DTA to SEZ Shipping Bill: Filed when goods move from the Domestic Tariff Area (DTA) into a Special Economic Zone (SEZ), treated as a deemed export.
The Let Export Order (LEO) Milestone
The Let Export Order (LEO) is the final statutory authorization granted by the customs dock appraiser or automated RMS system. It certifies that the cargo has been assessed, examined or verified (including e-seal verification for factory-stuffed containers), and that the carrier is legally permitted to load the consignment.
Article Frequently Asked Questions
Can a Shipping Bill be filed without an AD Code?
No. The Authorised Dealer (AD) Code issued by the exporter's bank must be registered on the ICEGATE portal for each specific port from which exports occur. The system blocks Shipping Bill generation if no valid AD Code is on record.
What is the role of the Mate's Receipt in export clearance?
A Mate's Receipt is issued by the commanding officer or cargo superintendent of the vessel upon loading. It serves as evidence of cargo receipt on board and is exchanged for the final Bill of Lading.
Operational Assistance
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