Customs & Documentation
Types of Shipping Bills in India: Which One to File
Free, Dutiable, Drawback, EPCG, Advance Authorisation, CSB-IV, and CSB-V. When to use each, ICEGATE filing, and common mistakes that delay LEO.
By Aaryan Kakani · · 13 min read
What Is a Shipping Bill?
A shipping bill is the principal customs document that every exporter in India must file before goods leave the country. It is mandated under Section 50 of the Customs Act, 1962 , which states that the exporter of any goods shall make entry thereof by presenting to the proper officer a shipping bill in the prescribed form.
In practice, shipping bills are filed electronically through ICEGATE (Indian Customs Electronic Gateway), the e-filing portal of the Central Board of Indirect Taxes and Customs (CBIC). The shipping bill contains the exporter's IEC number, buyer details, port of loading and discharge, description of goods, quantity, FOB value, and (critically) the type of shipping bill being filed, which determines whether export duty is payable and which incentive scheme applies.
The shipping bill is not just a customs formality. It triggers the entire downstream export compliance chain: the customs officer uses it for assessment and examination, the port authority uses it for the Let Export Order (LEO), the shipping line uses it for the Export General Manifest (EGM), your AD bank uses it for EDPMS reporting, and DGFT uses it for verifying incentive claims under RoDTEP, duty drawback, and scheme-based obligations like EPCG and Advance Authorisation.
Free Shipping Bill
A Free Shipping Bill is used when no export duty is payable on the goods and the exporter is not claiming any export incentive. No duty drawback, no RoDTEP, no scheme-based benefit. It is the simplest type of shipping bill and involves the least documentation.
You would file a Free Shipping Bill in situations like: exporting free samples to a prospective buyer, sending personal effects or gifts abroad, exporting goods under a warranty replacement where no commercial transaction is involved, or when the goods are exempt from all duties and you have no interest in claiming incentives.
The key characteristic of a Free Shipping Bill is that it creates no financial obligation on either side. No duty to pay, no incentive to claim, and consequently no DGFT follow-up. However, the shipment still goes through customs assessment and examination, and the shipping bill number still gets reported in EDPMS if there is a corresponding foreign exchange transaction.
Dutiable Shipping Bill
A Dutiable Shipping Bill is filed when export duty is applicable on the goods being shipped. Unlike imports, where almost all goods attract customs duty, export duties in India are levied on a relatively small list of items. Primarily natural resources and raw materials that the government wants to conserve for domestic use.
The goods that currently attract export duty include iron ore (varying rates based on Fe content and form. Lumps, fines, pellets), chromite ore and concentrates , certain grades of leather and hides , and a few other commodities specified in the Second Schedule to the Customs Tariff Act, 1975. The export duty rate depends on the specific tariff heading and can change via government notifications.
When you file a Dutiable Shipping Bill, the customs officer assesses the export duty payable based on the declared FOB value and the applicable tariff rate. The duty must be paid before the Let Export Order is issued. The exporter can pay through the ICEGATE e-payment facility linked to designated banks.
Drawback Shipping Bill
A Drawback Shipping Bill is filed when the exporter wants to claim duty drawback. A refund of customs duties and central excise duties paid on imported or domestically procured inputs used in the manufacture of exported goods. Duty drawback is governed by Sections 74 and 75 of the Customs Act, 1962 .
Section 74 applies when imported goods are re-exported as-is (or after minimal use). The drawback is calculated as a percentage of the import duty originally paid, with the rate decreasing based on how long the goods were used in India. If re-exported within 3 months, you get 98% of the duty back. Between 3 to 6 months, it drops to 95%, and so on.
Section 75 is far more common for manufacturers. It applies when imported or duty-paid domestic materials are used as inputs in manufacturing the export product. The drawback rates are published annually by the government in the All Industry Rates (AIR) schedule and are specific to each tariff heading. Alternatively, exporters can apply for a Brand Rate if the AIR does not adequately cover the actual duty incidence on their inputs.
When filing a Drawback Shipping Bill on ICEGATE, you must declare the drawback serial number from the AIR schedule (or your Brand Rate letter number), the drawback amount claimed per unit, and the bank account where the drawback should be credited. The drawback is processed after LEO and EGM filing. The amount is credited directly to the exporter's bank account, typically within 7 to 15 days for AIR claims.
Key documents for drawback claims
- Shipping bill with correct drawback serial number and rate from the AIR schedule
- Invoice and packing list matching the shipping bill declaration
- ARE-1/ARE-3 form (if applicable for Central Excise registered units)
- Brand Rate letter from the Drawback Directorate (if not using AIR)
- Bank account details registered with customs for direct credit
EPCG Shipping Bill
An EPCG Shipping Bill is filed when the export is being made to fulfil the export obligation under an EPCG (Export Promotion Capital Goods) licence . Under the EPCG scheme, exporters can import capital goods (machinery, equipment, tools) at zero or concessional customs duty, on the condition that they export goods worth 6 times the duty saved within 6 years of the licence issuance.
Every shipment you make against an EPCG obligation must be filed as an EPCG Shipping Bill so that customs and DGFT can track the cumulative export value against your obligation. On ICEGATE, you must enter the EPCG licence number , the date of issue , the total export obligation amount , and the obligation fulfilled so far .
The DGFT monitors EPCG obligation fulfilment through the shipping bill data transmitted from ICEGATE. If you export against an EPCG obligation but file a regular Free or Drawback Shipping Bill instead of an EPCG Shipping Bill, that export will not count towards your obligation in the DGFT system. You would then need to approach DGFT for a manual reconciliation, which involves significant paperwork and delay.
CSB-IV and CSB-V: Courier and E-Commerce Exports
Not all exports go through traditional cargo channels. Courier and e-commerce shipments use specialised shipping bill formats: CSB-IV and CSB-V .
CSB-IV (Courier Shipping Bill IV) is used for export of goods through authorised courier services where the consignment value does not exceed Rs 5 lakh and the exporter is not claiming any export incentive. Think of it as the courier equivalent of a Free Shipping Bill. It involves simplified documentation and faster processing, making it suitable for commercial samples, small parcels, and documents.
CSB-V (Courier Shipping Bill V) was introduced specifically for e-commerce exports . If you sell products through platforms like Amazon Global, eBay, Etsy, or your own website and ship via courier, you file a CSB-V. Unlike CSB-IV, CSB-V does allow you to claim export benefits like RoDTEP. It requires additional e-commerce-specific information: the platform name, order ID, payment transaction reference, and the end-buyer's details.
CSB-V also supports consolidated shipments. Multiple e-commerce orders packed into a single consignment. The authorised courier acts as the aggregator and files the consolidated CSB-V on behalf of the exporter. This has been a significant enabler for small and medium e-commerce exporters who ship dozens of small-value orders daily.
| Feature | CSB-IV | CSB-V |
|---|---|---|
| Channel | Authorised courier | Authorised courier (e-commerce) |
| Value limit | Up to Rs 5 lakh | Up to Rs 5 lakh |
| Export incentives | Not available | Available (RoDTEP, etc.) |
| E-commerce details | Not required | Platform, order ID, buyer info |
| Consolidated filing | No | Yes |
| Typical use case | Samples, small parcels | Amazon, eBay, Etsy, D2C exports |
How to Select the Right Shipping Bill Type on ICEGATE
When you log into ICEGATE and begin filing a new shipping bill, the system presents a dropdown for "Shipping Bill Type." Selecting the right option here is the single most consequential decision in the entire filing process. Here is a decision framework:
| If your situation is.. | File this type |
|---|---|
| No export duty, no incentive claim | Free Shipping Bill |
| Export duty applicable on the goods | Dutiable Shipping Bill |
| Claiming duty drawback (Section 74 or 75) | Drawback Shipping Bill |
| Exporting against EPCG licence obligation | EPCG Shipping Bill |
| Exporting against Advance Authorisation | Advance Authorisation Shipping Bill |
| Courier export, value under Rs 5L, no incentive | CSB-IV |
| E-commerce courier export, value under Rs 5L | CSB-V |
Documents Required for Each Shipping Bill Type
All shipping bills share a common set of mandatory documents. Scheme-based bills require additional paperwork. Here is the complete breakdown:
Common documents (all types)
- Commercial invoice with FOB value, HS code, and buyer details
- Packing list with weights (gross and net) and package count
- IEC (Importer-Exporter Code) copy
- AD Code registration letter from your bank
- RCMC (Registration-cum-Membership Certificate) from the relevant export promotion council
- GST invoice or LUT (Letter of Undertaking) for GST-free exports
- Declaration under various export regulations
| Shipping bill type | Additional documents required |
|---|---|
| Free | No additional documents beyond common set |
| Dutiable | Export duty challan / e-payment receipt; tariff classification ruling (if disputed) |
| Drawback | AIR schedule serial number declaration; Brand Rate letter (if applicable); input-output statement; CA certificate for brand rate |
| EPCG | EPCG licence copy; DGFT authorisation details; obligation statement; installation certificate for capital goods |
| Advance Authorisation | AA licence copy; SION details; import-export reconciliation; input consumption statement |
| CSB-IV | Courier authorisation; simplified commercial invoice |
| CSB-V | E-commerce platform details; order ID; payment proof; courier authorisation; KYC of exporter |
Common Filing Mistakes and Their Impact
We see the same errors repeated across hundreds of shipping bills. Each one costs the exporter either money (lost incentives), time (port delays), or both.
Filing Free instead of Drawback
This is the most expensive mistake. You export goods worth Rs 25 lakh, file a Free Shipping Bill, and only realise after LEO that you were eligible for 3% duty drawback. Rs 75,000 gone. A post-LEO amendment to change the shipping bill type from Free to Drawback requires Commissioner approval and takes 2 to 4 months, with no guarantee of success.
Wrong drawback serial number
The AIR schedule has thousands of entries. Entering the wrong serial number means claiming drawback at the wrong rate. If you claim a higher rate than applicable, customs will issue a recovery demand with interest. If you claim a lower rate, you lose the difference. Always cross-verify the HS code of your goods with the corresponding AIR entry.
Not linking the EPCG or AA licence number
You file an EPCG Shipping Bill but forget to enter the licence number, or enter it with a typo. The DGFT system cannot match the export to your obligation. Months later, you receive a demand letter for duty recovery on your imported capital goods because your obligation shows as unfulfilled.
Incorrect FOB value declaration
The FOB value on the shipping bill must match the commercial invoice, the FIRC when payment arrives, and the EDPMS entry. A mismatch (even a minor one due to currency conversion differences) can delay drawback disbursement, create eBRC issues, and trigger customs queries.
Wrong HS code classification
The HS (Harmonized System) code determines not just the drawback rate but also whether the goods are restricted, require a licence, or attract export duty. A wrong HS code can lead to goods being held at the port for re-examination, additional duty demands, or rejection of incentive claims across RoDTEP, drawback, and MEIS/SEIS (for older claims).
LEO, EGM, and the Export Clearance Flow
After the shipping bill is filed on ICEGATE, it goes through a defined sequence before your goods actually leave the port. Understanding this flow helps you anticipate where delays can occur and what you can still fix at each stage.
| Stage | What happens | Can you amend? |
|---|---|---|
| 1. Filing | Shipping bill submitted on ICEGATE. System generates a shipping bill number. Risk Management System (RMS) assigns it for assessment. | Yes, freely |
| 2. Assessment | Customs officer reviews the declaration, verifies HS codes, values, and incentive claims. May query the exporter for clarifications. | Yes, with officer approval |
| 3. Examination | Physical or documentary examination of goods at the port/CFS. Examiner verifies goods match the declaration. | Yes, but requires re-examination |
| 4. LEO (Let Export Order) | Customs grants permission for the goods to be loaded onto the vessel/aircraft. This is the point of no return for easy amendments. | Only via Section 149 application |
| 5. Loading and departure | Goods loaded onto the carrier. The shipping line/airline issues the bill of lading or airway bill. | No (goods have left) |
| 6. EGM (Export General Manifest) | The carrier files the EGM with customs within 7 days of vessel departure, confirming the goods have left India. | N/A |
The EGM filing is critical because it formally confirms that the goods have left India. Without the EGM, the shipping bill remains "open" in the customs system, and no incentive processing (drawback, RoDTEP) can begin. If the carrier delays the EGM, your drawback credit gets delayed proportionally. Follow up with your shipping line or freight forwarder to ensure the EGM is filed promptly after vessel departure.
Shipping Bill Amendment: Pre-LEO vs Post-LEO
Mistakes happen. The question is whether you catch them before or after LEO, because the amendment process is fundamentally different.
Pre-LEO Amendments
Before the Let Export Order is granted, amendments are relatively straightforward. You (or your customs broker) can request changes through ICEGATE. The assessing officer reviews the amendment request and can approve it electronically. Most pre-LEO amendments are processed within 1 to 2 working days. You can amend virtually any field: description of goods, quantity, value, drawback serial number, EPCG/AA licence number, HS code, and even the shipping bill type in some cases.
Post-LEO Amendments
After LEO, amendments require a formal application under Section 149 of the Customs Act, 1962 . The application goes to the jurisdictional Commissioner of Customs and must include:
- A written request explaining the error and the correction needed
- Supporting documents (original contract, LC, correspondence with buyer, amended invoice)
- A declaration that no fraudulent intent was involved
- CA certificate in some cases (especially for value amendments)
Post-LEO amendments typically take 4 to 12 weeks to process. Certain amendments (particularly changing the shipping bill type (e.g., from Free to Drawback) or significantly increasing the FOB value) are scrutinised heavily and may be rejected if the officer is not satisfied with the explanation. Amendments to the shipping bill type after EGM filing are even more difficult and often require an appeal to the Commissioner (Appeals) if the original application is rejected.
Frequently Asked Questions
What is a shipping bill and why is it mandatory for exports from India?
A shipping bill is the principal customs document required under Section 50 of the Customs Act, 1962. It is a declaration to customs about the goods being exported. Their description, value, and the incentive scheme being claimed. No goods can leave India through a customs port without a shipping bill filed on ICEGATE.
How do I choose the correct type of shipping bill on ICEGATE?
It depends on two factors: whether export duty applies, and whether you are claiming an incentive or fulfilling a scheme obligation. No duty and no incentive = Free. Export duty applicable = Dutiable. Claiming drawback = Drawback type. Exporting against EPCG or AA obligation = EPCG or AA type respectively. Courier shipments under Rs 5 lakh use CSB-IV (no incentive) or CSB-V (e-commerce with incentive).
Can I amend a shipping bill after LEO has been granted?
Yes, but it requires a formal application to the Commissioner of Customs under Section 149. You need supporting documents and a valid reason. Post-LEO amendments take 4 to 12 weeks and certain changes (like the shipping bill type) may be rejected. Before LEO, amendments are much simpler and faster through ICEGATE.
What is the difference between CSB-IV and CSB-V shipping bills?
CSB-IV is for courier exports under Rs 5 lakh with no incentive claim. CSB-V is for e-commerce courier exports and allows claiming benefits like RoDTEP. CSB-V requires e-commerce-specific details (platform name, order ID, buyer info) and supports consolidated shipments for multiple orders.
Quick Reference: All Shipping Bill Types
| Type | When to use | Key requirement |
|---|---|---|
| Free | No duty, no incentive | Simplest documentation |
| Dutiable | Export duty applicable | Duty payment before LEO |
| Drawback | Claiming duty drawback (Sec 74/75) | AIR serial number or Brand Rate letter |
| EPCG | Export against EPCG obligation | EPCG licence number on shipping bill |
| Advance Authorisation | Export against AA obligation | AA licence number and SION details |
| CSB-IV | Courier export, no incentive, under Rs 5L | Authorised courier, simplified docs |
| CSB-V | E-commerce courier export, under Rs 5L | Platform and order details, RoDTEP eligible |
Update history
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