Every exporter has to undergo and comply with certain administrative and compliance requirements at the time of export of goods from India to another country. The requirements include submission of applications, acquire licenses, furnish certificates/ bonds, payment of taxes/ duties, valuation of goods etc.
One of the critical and important ingredient in the whole process is the ‘Shipping Bill’. Shipping Bill is a statistical and documentary evidence of exporting goods from India, which also certified by the Customs authorities. The Shipping Bill is also an important document for other compliances and actions like realisation of export proceeds, application for tax incentives etc.
The format of the Shipping Bill is prescribed by the Shipping Bill and Bill of Exports (Forms) Regulations, 2017. Vide Notification No. 25/ 2019 – Customs (Non-Tariff) dated 25 March 2019, the Central Board of Indirect Taxes and Customs (‘CBIC’) has amended the format of Shipping Bills for the following forms:
- Form SB – I under Regulation 2 i.e. Shipping Bill for Export of Goods (Original)
- Form SB – I under Regulation 2 i.e. Shipping Bill for Export of Goods (Quadruplicate) [Export Promotion Copy]
- Form SB – III under Regulation 3 i.e. Bill for Export of Goods (Original)
- Form SB – III under Regulation 3 i.e. Bill for Export of Goods (Quadruplicate) [Export Promotion Copy]
In the revised format, a separate column has been provided to seek details pertaining to Compensation Cess under the Goods and Services Tax law (‘GST law’). Under the section IGST details in SB – I and SB – III, the following additional columns have been inserted in the revised formats:
- Whether Compensation Cess Paid (Y/N)
- Rate at which Compensation Cess Paid
- Amount of Compensation Cess Paid
These changes are in line with the formats of the GST returns. Taxpayers engaged in export and related activities should update their documentation and ensure that the revised formats of Shipping Bill are used for filing with the customs authorities for export clearances.