By Anuj Singh | Updated March 2026
What Are Bill of Entry and Shipping Bill?
The Bill of Entry and Shipping Bill are the two foundational customs documents in India. The Bill of Entry is the legal declaration filed by an importer (or their customs broker) under Section 46 of the Customs Act, 1962 to clear goods arriving at an Indian port, airport, or land customs station. The Shipping Bill is the corresponding export declaration filed under Section 50 of the Customs Act, 1962 before goods leave India. Both documents are filed electronically through ICEGATE (Indian Customs Electronic Data Interchange Gateway), the CBIC's e-filing portal that handles over 15 million customs documents annually.
For a foreign company importing materials into India for its subsidiary or exporting finished goods from its Indian operations, these documents are unavoidable. Every shipment requires accurate filing — errors in classification, valuation, or declaration can trigger penalties ranging from INR 50,000 to confiscation of goods under Sections 111 and 112 of the Customs Act. The move to electronic filing (EDI) and the Risk Management System (RMS) has reduced average clearance times to 2-3 days for imports and under 24 hours for exports, but only if the documentation is filed correctly.
Legal Basis
- Section 46 of the Customs Act, 1962 — Requires every importer to present a Bill of Entry for home consumption or warehousing to the proper customs officer. The section mandates self-assessment of duty by the importer and electronic filing at EDI-enabled ports.
- Section 50 of the Customs Act, 1962 — Requires every exporter to present a Shipping Bill (for goods exported by vessel or aircraft) or a Bill of Export (for goods exported by land) to the proper officer in the prescribed form.
- Section 17 of the Customs Act, 1962 — Establishes the self-assessment regime: the importer or exporter assesses the classification, rate of duty, and value of goods in the Bill of Entry or Shipping Bill, subject to verification by customs.
- Customs (Electronic Communication of Customs Documents) Regulations, 2011 — Mandates electronic filing of customs documents through ICEGATE at all EDI-enabled customs stations.
- CBIC Circular No. 32/2019-Customs — Implements the Faceless Assessment system, where Bills of Entry are assessed by officers at designated National Assessment Centres (NACs) rather than the port of import.
Types of Bill of Entry (Import Declarations)
The Bill of Entry comes in three primary types, each suited to a different import scenario:
| Type | Legal Basis | When Used | Duty Payment | Colour Code (Manual Era) |
|---|---|---|---|---|
| Bill of Entry for Home Consumption | Section 46(1)(a) | Goods imported for immediate domestic use or sale; the most common type | Full customs duty paid at time of clearance (BCD + IGST + compensation cess) | White |
| Bill of Entry for Warehousing (Into Bond) | Section 46(1)(b), read with Section 59 | Goods stored in a customs-bonded warehouse; duty deferred until goods are removed | No duty at time of warehousing; duty paid on ex-bond clearance | Yellow |
| Bill of Entry for Ex-Bond Clearance | Section 68 | Goods previously warehoused are released for home consumption | Duty paid at rates prevailing on the date of ex-bond clearance (not the date of original import) | Green |
Other Specialised Bill of Entry Types
- High Sea Sales Bill of Entry — Filed when goods are sold while still in transit (on the high seas) before arrival at the Indian port. The buyer (not the original importer) files the BoE, and the sale contract (endorsed by all parties) must accompany the filing.
- Re-Import Bill of Entry — Filed for goods previously exported from India that are being brought back. Subject to duty exemption or concessional rates under Notification No. 45/2017-Customs if re-imported within 3 years of export.
Types of Shipping Bill (Export Declarations)
Shipping Bills are categorised based on the export incentive scheme being claimed:
| Type | Purpose | Key Feature | Colour Code |
|---|---|---|---|
| Free Shipping Bill | Exports with no duty drawback or incentive claims | Simplest form; duty-free goods or where exporter waives incentives | White |
| Drawback Shipping Bill | Exports claiming Duty Drawback under Section 74 or 75 | Exporter receives refund of duties paid on imported inputs used in exported goods; drawback rates per tariff schedule | Yellow |
| EPCG Shipping Bill | Exports fulfilling Export Promotion Capital Goods obligation | Used when goods are exported to discharge the export obligation undertaken while importing capital goods at zero/concessional duty under EPCG scheme; 6-year export obligation period | Green |
| Advance Authorization Shipping Bill | Exports against Advance Authorization for duty-free import of inputs | Documents the export of finished goods manufactured using duty-free imported inputs; requires minimum 15% value addition | Pink |
| Deemed Export Shipping Bill | Supplies treated as deemed exports (e.g., to SEZ units or EOU) | Goods supplied within India but treated as exports for duty refund or input benefit purposes | Blue |
Electronic Filing via ICEGATE
All customs documentation is filed electronically through ICEGATE (icegate.gov.in). The process for each document type follows a structured workflow:
Bill of Entry Filing Process
- IGM (Import General Manifest) filing — The shipping line or airline files the IGM electronically before the vessel/aircraft arrives, listing all cargo. This creates the cargo record in the ICES (Indian Customs EDI System).
- BoE preparation — The importer or customs broker prepares the Bill of Entry on ICEGATE, entering: importer IEC number, GSTIN, HS classification (at 8-digit CTH level), assessable value (CIF + 1% landing charges), BCD rate, IGST rate, country of origin, and supplier details.
- Self-assessment — Under Section 17, the importer self-assesses the duty liability. The system auto-calculates BCD, Social Welfare Surcharge, IGST, and compensation cess based on the declared classification and value.
- RMS processing — The Bill of Entry passes through the Risk Management System, which categorises it as Green (no examination needed), Yellow (document verification required), or Red (physical examination required). Approximately 70-75% of BoEs receive Green channel clearance.
- Document upload via eSanchit — Supporting documents (invoice, packing list, BL/AWB, CoO, insurance certificate) are uploaded electronically through the eSanchit module — no physical documents need to be presented.
- Duty payment — Duty is paid electronically through ICEGATE's e-payment gateway (linked to authorised banks). Payment must be made before Out of Charge (OOC) is granted (except for AEO-T2/T3 entities with deferred payment).
- Out of Charge (OOC) — The assessing officer (or automated system for Green channel) grants OOC, and the goods are released for delivery.
Shipping Bill Filing Process
- SB preparation — The exporter or customs broker files the Shipping Bill on ICEGATE, declaring: exporter IEC, GSTIN, goods description, HS code, FOB value, export incentive scheme (drawback/EPCG/AA), buyer details, and port of destination.
- RMS processing — Similar to imports, the Shipping Bill is risk-assessed. The majority receive automated Let Export Order (LEO).
- Examination (if flagged) — For Red channel shipments, customs examines the goods at the port. The exporter must ensure goods match the declaration.
- Let Export Order (LEO) — The customs officer grants LEO, permitting the goods to be loaded onto the vessel/aircraft.
- EGM (Export General Manifest) confirmation — The shipping line confirms the goods have been loaded and files the EGM, which triggers drawback processing.
Supporting Documents Required
Both Bill of Entry and Shipping Bill require supporting documents uploaded via eSanchit:
| Document | Bill of Entry (Import) | Shipping Bill (Export) |
|---|---|---|
| Commercial Invoice | Mandatory — establishes transaction value | Mandatory — establishes FOB value |
| Packing List | Mandatory — itemises contents per package | Mandatory |
| Bill of Lading / Airway Bill | Mandatory — evidence of shipment | Provided by carrier post-shipment |
| Certificate/Proof of Origin | Required if claiming FTA preference | Not required (issued by exporter's side) |
| Insurance Certificate | Required for CIF valuation | Optional |
| Import Export Code (IEC) | Mandatory | Mandatory |
| GSTIN | Mandatory for IGST credit claims | Mandatory for IGST refund on exports |
| BIS/Quality Certificates | Required for notified goods (electronics, toys, etc.) | As per buyer/destination country requirement |
| Letter of Credit / Bank Realisation Certificate | Not typically required | Required for FIRC and drawback claims |
Assessment Process: Self-Assessment and RMS
India shifted to self-assessment in 2011 (replacing the earlier system where customs officers assessed every document). Under the current regime:
- The importer/exporter declares the classification, value, and duty in the BoE or SB.
- The Risk Management System (RMS) — an automated, intelligence-driven system — assigns a risk score based on importer history, commodity risk profile, country of origin, and declared value relative to benchmarks.
- Green channel (approximately 70-75% of BoEs): Automated OOC with no officer intervention. Goods are released within hours of duty payment.
- Yellow channel: Officer reviews documents (uploaded on eSanchit) without physical examination. Clearance within 1-2 days.
- Red channel: Physical examination of goods at the port. Clearance within 3-5 days depending on port congestion.
- Faceless Assessment (since 2020): Bills of Entry are routed to National Assessment Centres (NACs) where officers specialised in specific commodities assess the BoE — regardless of the port of import. This has improved assessment consistency across ports.
Typical Clearance Timelines
| Scenario | Import Clearance Time | Export Clearance Time |
|---|---|---|
| Green Channel (RMS cleared) | 4-12 hours after duty payment | 2-4 hours after LEO |
| Yellow Channel (document check) | 1-2 business days | 4-8 hours |
| Red Channel (physical examination) | 3-5 business days | 1-2 business days |
| AEO-certified entity | 2-6 hours (DPD, priority processing) | 1-3 hours |
| First-time importer / high-risk consignment | 5-10 business days | 2-3 business days |
Penalties for Mis-Declaration
Customs authorities take mis-declaration seriously. Key penalty provisions under the Customs Act, 1962:
- Section 111 — Goods liable to confiscation if imported contrary to prohibitions, concealed, or misdeclared (in quantity, description, or value). The goods may be seized and the importer given an option to pay a redemption fine (typically 10-25% of the goods' value) in lieu of confiscation.
- Section 112 — Personal penalties on persons involved in improper importation: up to the value of the goods or INR 5,000 (whichever is greater) for prohibited goods; up to the duty sought to be evaded or INR 5,000 (whichever is greater) for dutiable goods.
- Section 114 — Penalties for improper exportation: mirroring Section 112 for export-side mis-declarations.
- Section 114A — Mandatory penalty equal to the duty short-paid or not paid when duty evasion is established due to collusion, willful misstatement, or suppression of facts.
- Section 114AA — Penalty of up to 5 times the value of the goods for using or attempting to use false or incorrect documents (e.g., forged invoices, fake Certificates of Origin). This is one of the harshest penalties in Indian customs law.
Common Mistakes
- Filing the wrong type of Bill of Entry. An importer filing a Bill of Entry for Home Consumption when goods should have been warehoused (because duty funds are not ready) faces full duty demand at the port with nowhere to store the goods. Section 46 allows conversion between home consumption and warehousing BoEs, but requesting it after assessment delays clearance by 2-3 days.
- Misclassifying goods at the 8-digit HS code level. HS classification determines the BCD rate (which varies from 0% to 150% in India). A foreign company used to classifying a product as HS 8471 (computers, 0% BCD) may find Indian customs reclassifies it as HS 8528 (monitors, 10% BCD). The difference on a INR 5 crore shipment is INR 50 lakh in additional duty plus 15% penalty under Section 114A.
- Undervaluing goods to reduce duty liability. Indian customs maintains Customs Valuation Rules, 2007 with benchmark values for commonly imported goods. If the declared value is significantly below the benchmark, RMS flags the BoE for reassessment. The importer must then justify the value with evidence (contract, comparable transaction data). Persistent undervaluation triggers enhanced scrutiny on all future shipments and potential fraud proceedings.
- Not claiming FTA preferential tariff at the time of filing. Preferential duty rates must be claimed in the Bill of Entry itself — you cannot amend a BoE after assessment to retrospectively claim FTA benefits. If the Certificate of Origin arrives after the BoE is filed, the importer pays MFN duty and must file a refund claim under Section 27 (time limit: 1 year), which takes 6-12 months to process.
- Ignoring eSanchit document upload requirements. Since 2018, supporting documents must be uploaded electronically via eSanchit before assessment. Failing to upload documents on time does not stop the BoE from being assessed — but the assessing officer may enhance the duty demand in the absence of supporting evidence (e.g., adding anti-dumping duty because no CoO was uploaded to prove non-Chinese origin).
Practical Example
Meridian GmbH, a German industrial equipment manufacturer, ships a consignment of CNC milling machines (HS 8459.61) worth EUR 250,000 (approximately INR 2.28 crore at EUR 1 = INR 91) to its Indian subsidiary, Meridian India Pvt Ltd, in Bangalore. The shipment arrives at Chennai port.
Bill of Entry filing:
- Meridian India's customs broker files a Bill of Entry for Home Consumption on ICEGATE.
- Classification: HS 8459.61.00 (CNC milling machines). BCD rate: 7.5%. Social Welfare Surcharge: 10% of BCD. IGST: 18%.
- Assessable value: CIF INR 2.28 crore + 1% landing charges = INR 2.30 crore.
- Duty calculation: BCD = INR 17.25 lakh. SWS = INR 1.73 lakh. IGST on (INR 2.30 cr + BCD + SWS) = INR 44.82 lakh. Total duty = INR 63.80 lakh.
- Documents uploaded via eSanchit: commercial invoice, packing list, BL, insurance, Form 15CA/CB (not applicable here — no remittance), Certificate of Origin (non-preferential, from German-Indian Chamber of Commerce).
RMS outcome: Green channel — no examination required. OOC granted within 6 hours of duty payment. Total clearance time from vessel berthing to factory delivery: 3 days.
What could go wrong: If Meridian India's broker had classified the machines as HS 8456 (electro-discharge machines) at 0% BCD instead of HS 8459.61 at 7.5%, the INR 17.25 lakh BCD saving would have been temporary — customs reassessment would impose the correct duty plus an equal penalty under Section 114A (INR 17.25 lakh), totalling INR 34.50 lakh in additional cost, plus interest at 15% per annum from the date of clearance.
Key Takeaways
- The Bill of Entry (Section 46) is India's mandatory import declaration; the Shipping Bill (Section 50) is the mandatory export declaration — both filed electronically via ICEGATE
- Three types of BoE exist: home consumption (immediate use), warehousing (deferred duty), and ex-bond (warehouse release) — choosing the right type at filing time avoids costly delays
- Shipping Bills are categorised by export scheme: free, drawback, EPCG, advance authorization, and deemed export
- The RMS automatically sorts 70-75% of BoEs into Green channel for same-day clearance; accurate filing is the key to getting Green channel treatment
- Penalties for mis-declaration range from INR 5,000 to 5 times the goods' value (Section 114AA for false documents) — and Section 114A imposes mandatory penalty equal to the duty evaded
- Supporting documents are uploaded via eSanchit — no physical papers are needed at EDI-enabled ports
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