Day Progress
✈️ 15 Days Export from India Challenge
# DAY 7
Shipping Bill Explained
Under GST & Customs
ICES · Port Code · FOB Value · LEO · BRC · MAWB/HAWB · DBK · RoDTEP · LUT vs IGST · GSTR-1 Table 6A/9A
📌 Day 7 — The Shipping Bill is the Backbone of Exports
A Shipping Bill is not merely a Customs document. It is the single document that connects Customs, GST, ICEGATE, RBI, DGFT, foreign exchange realization, and all export incentives. No physical export can take place without a valid Shipping Bill. Understanding every field — from Status Row to LEO — is essential for every exporter and GST professional.
⚖️ Legal Basis
Laws Governing Shipping Bills
Customs Act 1962
S.50 & S.51 — Entry & Clearance
Section 50: Entry of goods for exportation. Section 51: Clearance — LEO issued here.
IGST Act S.16
Zero-Rated Supply
Exports are Zero-Rated. Shipping Bill is the foundation for both LUT and IGST refund routes.
Rule 96 CGST Rules
IGST Refund
Shipping Bill is deemed to be the refund application. No separate RFD-01 needed for IGST route.
Rule 96A CGST Rules
LUT / Bond Export
Governs exports without payment of IGST. Shipping Bill must carry LUT declaration.
FEMA 1999 + RBI
Forex Realization
Export proceeds must be realized within prescribed timelines. BRC generated on realization.
🗺️ Document Anatomy
Shipping Bill — Section by Section
ICES
Indian Customs EDI System — Shipping Bill Structure
10 sections · 23 pages · Government of India · Central Board of Indirect Taxes and Customs
Status Row:
1.MODE
2.ASSESS ✓
3.EXMN ✓
4.JOBBING
5.MEIS Y
6.DBK ✓
7.RoDTP N
8.LICENCE N
9.DFRC N
10.RE-EXP N
11.LUT N
Part A — Status
Export Status Fields
- Mode of Transport: Land / Air / Sea
- ASSESS: Customs assessed? Y/N
- EXMN: Physically examined by Customs? Y/N
- Port of Loading (e.g. INRXLB – Raxaul)
- Country of Final Destination
- Country of Origin = India
- Port of Discharge (foreign port)
Part B — Declarant
Exporter / Declarant Details
- Exporter’s Name & Full Address
- Type: Private / Govt / PSU
- AD Code (Authorized Dealer Code)
- RBI Waiver No. & Date (if applicable)
- GSTIN / TYPE (GSTIN or UIN)
- Forex Bank A/C No.
- IFSC Code
- DBK Bank A/C No.
- IEC No.
- Consignee (buyer) Name & Address
Part C — Value Summary
FOB & Invoice Value
- 1. FOB Value — Free On Board export value
- 2. Freight charges
- 3. Insurance amount
- 4. Discount (if any)
- 5. Commission
- 6. Deductions
- 7. Packing / Handling charges
- 8. Duty / CESS fields
- DBK Claim amount
- IGST Amount & IGST Value
- RoDTEP Amount
Part D — Manifest Details
Airway / Bill of Lading
- MAWB No. — Master Airway Bill
- MAWB Date
- HAWB No. — House Airway Bill
- HAWB Date
- N.O.C. — No Objection Certificate
- CIN No. — Cargo Identification Number
- CIN Date & CIN Site ID
Part E — Equipment Details
Container & Seal Info
- Container Number
- Seal Number
- Date of stuffing
- 4.S No. (Stuffing serial)
- Challan Details (SR No., Challan No., Payment Date, Amount)
Part F — Invoice Summary
GST & GSTR-1 Connection
- SNO — Serial Number
- INV NO. — Invoice Number (must match GSTR-1 Table 6A)
- INV AMT — Invoice Amount
- Currency (INR / USD / GBP / EUR)
- This data feeds directly into GSTR-1 Table 6A & 9A
Part G — Equipment
Seal & Container Details
- Seal Type (Warehouse Sealed / Carrier Sealed)
- Nature of Cargo: Packaged / Bulk / Loose
- No. of Packets
- No. of Containers
- Loose Packets count
- Marks & Numbers: As Per Invoice
Part H — Challan Details
Duty Payment Record
- SR No. — Serial of payment
- Challan No. — duty payment challan
- Payment Date
- Amount paid
Part I — Annex Details
Packages & Cargo Info
- Seal Type: Warehouse Sealed
- Nature of Cargo: Packaged
- No. of Packages: 55
- No. of Containers: 0 (LCS land route)
- Loose Packets: 55
- Marks & Numbers: As Per Invoice
Part J — Process Details
LEO & BRC Milestone
- Submission: Date & Time filed
- Assessment: Customs officer verified
- Examination: Physical check done
- LEO: Let Export Order — FINAL milestone
- LEO No. & LEO Date
- BRC Realisation Date — forex received
Part II — Invoice Details · Part III — Item Details · Part IV — Export Scheme Details · Part V — Declaration
📄 Actual Document
Real Shipping Bill — Field Annotations
Day 7 — Actual Shipping Bill (ICES) with GSTR-1 Table 6A/9A Annotations
LCS Raxaul → Nepal · IGST Route · Port Code INRXLB · Click to zoom · Download on WhatsApp Channel
🔍 Click to enlarge
🔍 Critical Fields
Key Fields — Deep Dive
Port Code
Every customs station has a unique Port Code. It determines jurisdiction, processing station, and export statistics. Wrong port code = transmission failure in ICEGATE validation.
INNSA1 = Nhava Sheva (Mumbai)
INDEL4 = Delhi ICD
INRXLB = Raxaul (Bihar-Nepal border)
INBLR6 = Bangalore ICD
INDEL4 = Delhi ICD
INRXLB = Raxaul (Bihar-Nepal border)
INBLR6 = Bangalore ICD
GSTIN Mapping
GSTIN on Shipping Bill must exactly match GST Registration, GSTR-1 Table 6A, and Export Invoice. Any mismatch causes ICEGATE validation failure and blocks IGST refund completely.
GSTIN/TYPE: 07XXXXX0001XGSN
CB Code: AAICS7836DCH003
IEC: linked to DGFT
CB Code: AAICS7836DCH003
IEC: linked to DGFT
FOB Value
Free On Board = value of goods at Indian port, excluding international freight and overseas insurance. Used in export statistics, customs valuation, incentive calculations, and forex monitoring.
FOB Value: ₹4,99,039.09
Freight: 0
Insurance: 0
CIF = FOB + F + I
Freight: 0
Insurance: 0
CIF = FOB + F + I
IGST on Shipping Bill
The IGST amount declared in the Shipping Bill must match GSTR-1 Table 6A and GSTR-3B Table 3.1(b). Never declare IGST as zero if you want automated refund — this permanently blocks the ICEGATE refund.
IGST AMT: ₹66,710.91
IGST VALUE: ₹4,99,039.09
CESS AMT: 0
IGST VALUE: ₹4,99,039.09
CESS AMT: 0
AD Code & Bank Details
Authorized Dealer Code links export proceeds to your bank. Forex Bank A/C receives foreign currency. DBK Bank A/C receives duty drawback. Must be registered on ICEGATE before export.
AD Code: 0763938
Forex Bank A/C: 46XXXX672
DBK Bank A/C: 46XXXX672
IFSC: KKPK0002994
Forex Bank A/C: 46XXXX672
DBK Bank A/C: 46XXXX672
IFSC: KKPK0002994
Shipping Bill Number & Date
The SB Number is the primary export reference across all systems — GST, ICEGATE, Customs, RBI, DGFT. Under Rule 96, SB is the refund application itself. SB Number and SB Date must be identical in GSTR-1 Table 6A.
SB No: 6038431
SB Date: 14-DEC-23
Used in: GSTR-1 Table 6A/9A
SB Date: 14-DEC-23
Used in: GSTR-1 Table 6A/9A
🏁 Most Important Milestone
LEO — Let Export Order
💱 Forex Completion
BRC — Bank Realisation Certificate
BRC — Proof of Export Proceeds Received
BRC is issued by the exporter’s Authorized Dealer (AD) Bank after foreign exchange proceeds are received from the overseas buyer. It is governed by FEMA 1999 and RBI Master Directions. The Shipping Bill records the BRC Realisation Date — from the actual SB shown above: 30-SEP-24 (9 months after export of 14-DEC-23).
🏛️ DGFT Benefits
📈 RoDTEP Scheme
💰 Duty Drawback
📋 LUT Compliance
⚖️ FEMA Compliance
🔍 Export Incentives
🛣️ Two Export Routes
LUT vs IGST — On the Shipping Bill
LUT Route — Field 11 = Y
Status Row: LUT = Y · No IGST shown
- ✓Status Row: LUT = Y (Field 11)
- ✓IGST Amount = 0 on Shipping Bill
- ✓No upfront tax payment
- ✓Refund via Form GST RFD-01 (ITC refund)
- ✓Rule 96A of CGST Rules applies
- ✓LUT declaration on invoice mandatory
IGST Route — LUT = N
Status Row: LUT = N · IGST amount declared
- →Status Row: LUT = N (Field 11)
- →IGST Amount declared in Shipping Bill
- →IGST paid in GSTR-3B Table 3.1(b)
- →Automatic refund via ICEGATE → PFMS
- →Rule 96 of CGST Rules applies
- →SB is deemed refund application
💰 Export Incentives
Incentive Fields on Shipping Bill
DBK
Duty Drawback
Refund of Customs duty paid on imported inputs used in exported goods. Field 6 in Status Row.
RoDTEP
Remission of Duties & Taxes on Exported Products
Rebate of embedded taxes not refunded elsewhere. Field 7 in Status Row. Successor to MEIS.
MEIS
Merchandise Exports from India Scheme
Legacy incentive scheme — now largely replaced by RoDTEP. Still visible in older Shipping Bills.
DEEC/AA
Advance Authorization
Duty-free import of inputs for manufacture of export products under FTP. Captured in Licence field.
DFRC
Duty Free Replenishment Certificate
Allows duty-free import of inputs after export. Legacy FTP scheme visible on older Shipping Bills.
ROSCTL
Rebate of State & Central Taxes & Levies
For apparel and made-up exports. Captures embedded state taxes not otherwise refunded.
✈️ Air Cargo Documents
MAWB & HAWB — Air Freight Bills
MAWB
Master Airway Bill — issued by airline
- →Issued by the airline (e.g. Air India Cargo, FedEx)
- →Covers the consolidated shipment on the aircraft
- →Airline’s contract of carriage
- →Used for airline-level tracking
- →Filed on Shipping Bill for air cargo exports
HAWB
House Airway Bill — issued by freight forwarder
- →Issued by freight forwarder or consolidator
- →Individual exporter’s shipment reference
- →Separate from the MAWB
- →Used for EGM filing and exporter tracking
- →HAWB N.O.C. field on Shipping Bill
❌ Avoid These
Common Shipping Bill Mistakes
Wrong GSTIN
ICEGATE validation fails — IGST refund completely blocked.
Wrong Invoice Number
GSTR-1 Table 6A mismatch triggers Failed Transmission error.
Wrong Port Code
Incorrect customs station — refund jurisdiction mismatch.
Wrong FOB Value
Impacts incentive calculations — DBK and RoDTEP amounts affected.
Incorrect LUT Details
LUT field not correctly selected — GST demand raised on export.
IGST Declared as Zero
Even if IGST paid in GSTR-3B — automated refund permanently blocked.
Wrong Foreign Buyer Details
Consignee mismatch affects FEMA realization tracking and BRC.
Incorrect HSN Code
Wrong product classification — export incentives rejected.
Wrong Incentive Selection
DBK / RoDTEP / MEIS — wrong scheme selected = claim rejected.
Shipping Bill Amendment Delay
Late Table 9A amendments don’t resolve ICEGATE issues quickly.
📖 Glossary
Shipping Bill Abbreviations
📖 Quick Reference Glossary
ASSESS
Assessed by Customs officer
EXMN
Examination — physical inspection of goods
MEIS
Merchandise Export Incentive Scheme
DBK
Drawback — duty refund on inputs
RoDTP
Remission of Duties & Taxes on Products
ROSL
Rebate of State Levies (apparel)
DEEC
Duty Exemption Entitlement Certificate
DFRC
Duty Free Replenishment Certificate
LUT
Letter of Undertaking (GST export)
CB
Customs Broker (formerly CHA)
AEO
Authorized Economic Operator
UCR
Unique Customs Reference
DISCOU
Discount on invoice value
COM
Commission on export
P/C
Packing Charges
MAWB
Master Airway Bill (airline issued)
HAWB
House Airway Bill (forwarder issued)
BRC
Bank Realisation Certificate (forex)
LEO
Let Export Order (Customs clearance)
EGM
Export General Manifest (carrier)
FOB
Free On Board — value at Indian port
CIF
Cost + Insurance + Freight
AD Code
Authorized Dealer Code (bank)
IEC
Import Export Code (DGFT)
🎯 Summary
Key Takeaways — Day 7
🎯 What You Must Remember
- ✓Shipping Bill is filed through ICES (Indian Customs EDI System) — mandatory before any physical export
- ✓Under Rule 96, Shipping Bill is deemed to be the refund application — no separate RFD-01 for IGST refund
- ✓Status Row Fields: ASSESS, EXMN, MEIS, DBK, RoDTP, LICENCE, DFRC, RE-EXP, LUT — each has Y/N impact
- ✓GSTIN on SB must exactly match GST registration, export invoice and GSTR-1 — any mismatch = refund blocked
- ✓FOB Value = export value excluding international freight and insurance — basis for DBK and RoDTEP
- ✓IGST Amount on SB must never be declared as zero if you want automated ICEGATE refund
- ✓Invoice details on SB (Invoice No., Date, Value) must be identical to GSTR-1 Table 6A — mismatch = SB error codes
- ✓LEO (Let Export Order) under Section 51 = Customs’ final permission for goods to leave India
- ✓BRC (Bank Realisation Certificate) = proof of forex received — mandatory for LUT compliance and export incentives
- ✓SB Number + SB Date + Port Code = three most critical fields in GSTR-1 Table 6A / Table 9A reporting
Catch Up — Days 1 to 6
Day 1 Intro · Day 2 IGST vs LUT · Day 3 Invoice · Day 4 LUT Deep Dive · Day 5 Refund Process · Day 6 GSTR Returns
▶️ YouTube Video
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Shipping Bill Explained Under GST & Customs — Day 7
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⚠️ Disclaimer
The content shared on this channel is purely for educational purposes. As a Chartered Accountant, I strive to provide accurate and insightful information related to GST, Income Tax, Accounting, and Tax Planning. However, please note that the content should not be considered as professional advice or a substitute for personalized consultation. For specific matters, please consult a qualified professional.
The content shared on this channel is purely for educational purposes. As a Chartered Accountant, I strive to provide accurate and insightful information related to GST, Income Tax, Accounting, and Tax Planning. However, please note that the content should not be considered as professional advice or a substitute for personalized consultation. For specific matters, please consult a qualified professional.
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