Shipping goods from point A to point B involves several formalities. The shipping bill is a document issued by the Customs Service Center and is an important document that’s required to acquire clearance from the customs authorities. A shipper cannot load his goods unless he produces this document. Along with customs clearance and permission to load goods, the document also facilitates getting claim duty drawbacks.
The procedure for generating a Shipping Bill is as follows:
A bill of lading often abbreviated as BOL or B/L is one of the most crucial documents required while shipping goods. It acts as a legally binding ‘evidence’ of the contract between the shipper and carrier to transport goods from point A to B as per the sales contract agreed upon by the shipper and consignee.
It is issued by the carrier or their agent to acknowledge that the cargo has been received by them to be shipped from the origin port to the destination.
The information mentioned in this document has to be precise as it determines how the goods will be handled, billed, where they will go, etc. Mistakes in this document can directly affect the delivery of the freight.
Also known as an Air Consignment Note, AWB or Airway Way Bill is a non-negotiable document that an air carrier issues to acknowledge that they've received a shipment. It acts as a receipt for the shipper.
The document indicates the destination address of the shipment and contact information of the consignee. An AWB serves a similar function to ocean bills of lading, however, an AWB is issued in non-negotiable form. That means there's less protection with an AWB as against a bill of lading.
There are multiple copies of AWB and all stakeholders involved in getting the shipment from point A to B document it.
A bill of entry is a legally binding document filed on or before imported goods arrive by consignees or custom clearance agents.
The document is submitted as a part of the customs clearance procedure to the customs department. This submission allows the consignee to claim ITC on the concerned goods. Typically, the bill is issued either for bond clearance or home consumption.
On filing the bill of entry, an authorised customs officer examines the goods. Following which the consignee can clear the goods by paying the basic customs duty, IGST, and GST compensation cess.
House airwaybill or HAWB is one of the documents used while shipping goods by air. It is issued and signed by a freight forwarding agent and it serves as an evidence of the terms and conditions as specified by the freight forwarder for carrying the goods.
House airway Bill or HAWB: HAWB is issued by a freight forwarder on receipt of goods from the shipper agreeing to deliver goods at the destination.
A House Bill of Lading or HBL is a document generated by an Ocean Transport Intermediary (OTI) such as a non-vessel operating company (NVOCC) or a freight forwarder.
A HBL carries the name and address of the supplier who is responsible for delivering the shipment to the forwarder. It also has the details of the consignee to whom the freight forwarder delivers the shipment to.
It also includes detailed information about the items to be shipped and the value of the shipping contract.
A bill of lading is issued as either a House Bill of Lading or a Master Bill of Lading.
A House Bill of lading or else HBL is issued by a freight forwarder or an NVOCC operator to their clients. Whereas, a Master Bill of Lading or MBL is issued by the carrier to the NVOCC operator or forwarder.
HBL vs. MBL:
|The shipper is usually the actual exporter of the cargo (or as dictated by the L/C)
|The shipper is usually the freight forwarder or NVOC operator or their agent
|The consignee is usually the actual importer of the cargo (or as dictated by the L/C)
|The consignee is usually the office of the NVOCC operator or the freight forwarder or destination agent or counterpart
|The notify could be the same as consignee (or any other party as dictated by the L/C)
|The Notify could be the same as consignee or any other party