Understanding Freight Charges HSN Codes in Shipping

Published on June 2, 2025

Last updated on June 4, 2025 • 7 min read

Whether it is global trade or domestic commerce, freight operations are vital to any supply chain management. It is necessary to understand different aspects of freight operations to have streamlined supply chain management, reduce operational costs, and increase productivity and profitability. Among the various aspects, the Harmonised Systems of Nomenclature (HSN) is quite a critical one. In this article, we will dive deeper into the Freight Charges HSN Code and correlation between freight charges and the HSN code in shipping and why businesses must know about it.

Table Of Contents

What Are Freight Charges?
What Is an HSN Code?
Significance of Freight Charges HSN Code
How to Find an HSN Code?
Challenges in Applying HSN Code on Freight
Types of Transportation Considered as Freight As Per GST
What Is Not Freight Under GST?
Charges Included and Excluded in Freight Charges
Best Practices for Efficiently Managing Freight Charges and the HSN Code
Understand the HSN Code and Classification with Smart Shipping Solutions from WareIQ
Conclusion
FAQs About Freight Charges and HSN Codes in Shipping

What Are Freight Charges?

Freight charges are the charges incurred by businesses for transporting goods from one place to another. The charges depend on factors such as the mode of transport, the volume and weight of the transport, the distance from the point of origin to the point of destination, and other handling requirements.

For any business that deals with the movement of goods from one place to another, it is essential to understand the calculation to strategise better prices and comply with regulations.

What Is an HSN Code?

The HSN code is the Harmonised System of Nomenclature (HSN) used to classify services. The World Customs Organisation (WCO) introduced it. The HSN code helps maintain uniformity in taxation, international trade, and statistical data collection.

Significance of Freight Charges HSN Code

9965 HSN codes of freight charges are used for transport. Below is the primary use of the HSN code:

It ensures that the businesses adhere to the correct GST slabs. Thus, penalties can be avoided.
The HSN code helps simplify the GST return filing process since it ensures the accurate categorisation of freight services.
Since it is a global standardisation system, it helps classify freight services on an international level. This facilitates smoother international transactions and reduces complications when trading globally.

Let’s understand the HSN codes for different modes of freight transport below:

Service	HSN Code
Good transport service	9965
Transport service of goods via road – including letters, parcels, live, animals, furniture, containers, etc.	996511
Transport of goods via rail – including letters, parcels, live, animals, furniture, containers, etc.	996512
Transport of petrol, gas, water, and other goods through pipelines	996513
Other land transport for goods	996519
Coastal and international transport of goods via waterways, including tankers, cargo ships, container ships, etc.	996521
Inland water transport of goods	996522
Transport of goods via air	996531
Space transport service	996532

How to Find an HSN Code?

For compliance purposes, businesses need to know how to discover the HSN code for freight services. Below are the ways that HSN codes can be found:

Through GST Portal

The official GST website also has a comprehensive listing of HSN codes for freight services. This is a reliable source for businesses that are looking to verify and understand the different HSN classifications.

GST Rate Finder

The GST rate finder is a tool on the GST portal that helps businesses determine the applicable HSN code. It simplifies the process of complying with all GST requirements.

It is essential to find HSN codes only from reliable sources.

Challenges in Applying HSN Code on Freight

Although there are several ways to find the HSN code and apply it for freight rates, it can sometimes become challenging to deal with different freight HSN codes. Below are some of the challenges that are common for businesses:

Not identifying the classification of the HSN code applicable correctly, as per the freight service, can further lead to penalties.
If there are any errors in finding the proper codes, it can lead to complications in international shipments.

Types of Transportation Considered as Freight As Per GST

Freight, in general, refers to goods that are transported from one place to another. It can be through different transportation modes, and they are explained below:

Land Transportation

Goods transported via roadways.
Railway transport Services

Water Transportation

Goods are transported using inland or transoceanic waterways using different vessels, such as tankers or container ships.

Pipeline Transportation

Transportation services via pipelines for natural gas, sewage, or water.

Air Transportation

Include transportation of goods, letters, and parcels via air.

What Is Not Freight Under GST?

Below are some products on which GST is not levied on freight charges:

Transportation of relief material for disaster-struck locations.
Transportation of military equipment,
Transportation of newspapers registered with the Registrar of Newspapers.

Charges Included and Excluded in Freight Charges

Various charges are typically included in the calculation of trade charges. Below are the costs that are included in freight charges:

Transportation fees
Insurance during transit
Handling charges

There are charges which are not included in the freight charges; below are the few charges which are excluded:

Taxes
Fee paid at the destination
Custom duties

Best Practices for Efficiently Managing Freight Charges and the HSN Code

Maintain Proper Records

All invoices must include the correct freight HSN code and GST date. Businesses should also maintain proper documentation for exemptions.

Being Up to Date With GST Rules

GST rate exemptions for freight services can change over time. Hence, it is necessary to check GST notifications and updates regularly.

Using Freight Charges Calculator

Online freight charge calculators provide an easy way to calculate freight charges, including GST.

Get Professional Help

To ensure complete compliance with the freight HSN code and GST rate, businesses can also opt for professional tax consultations.

Understand the HSN Code and Classification with Smart Shipping Solutions from WareIQ

WareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.

Our solution offers the following capabilities:

Multi-carrier engine enabling fast deliveries across 24,000+ pin codes
Control Tower & automated workflows to minimise NDR & RTOs
Same/Next-day delivery courier options
Seamless Integration with your WMS, ERPs and Storefronts
Shipping Badges to display precise Estimated Delivery Dates (EDD)
Custom branded tracking pages and notifications to enhance customer experience

Conclusion

In order to achieve complete tax compliance while optimising logistics costs, businesses must understand the HSN code and its association with the freight charges. Businesses can avoid paying extra penalties by understanding and applying the correct freight HSN code and GST rate. Thus, the supply chain will be efficient, and invoicing can also become simpler. GST rates across different modes of transport may change over time. Hence, it is necessary to stay proactively informed. To have a robust supply chain in place and to enhance profitability, it is vital to invest in understanding the complexity of the HSN code along with the GST rates.

Related read – Courier HSN Code and Proforma Invoice

FAQs About Freight Charges and HSN Codes in Shipping

What happens when the wrong HSN code is used for freight charges?

When the wrong HSN code is applied, it can lead to penalties and complications during audits.

What is the HSN code 9965 used for?

The HSN code 9965 is mainly used to classify the transportation of goods by various modes, such as rail, road, and air.

Is every freight charge taxable under GST?

No, not all freight charges are taxable under GST. Transportation of agriculture products, relief materials, etc., is exempted from GST.

How is GST calculated on freight charges?

The applicable GST percentage is multiplied by the freight charge to calculate the GST.

Is freight charges levied for exports taxable?

No, freight charges for exports are not taxable.

Supercharge your fulfilment with WareIQ now, contact our team.

Author

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong's Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Read all of Mariyam Jameela's Posts

Net Weight vs Gross Weight: Key Differences Explained

Net weight and gross weight sound similar and are often confusing. These two terms are used widely in weight measurement and significantly impact various processes such as shipping, logistics, and pricing. However, the meaning and application of these terms are very different. Understanding the difference is essential, especially when it comes to shipping. In this article, we will explore net weight vs gross weight and how they can be calculated. What Is Net Weight and Gross Weight? What Is Net Weight? Net weight refers to the weight of the product itself, excluding any packaging. The weight of containers or boxes that the product comes in is not considered while calculating net weight. It represents the quantity that a consumer can use. Some examples to understand net weight are as follows: A bag of potatoes weighing 4 kg net weight means that the potatoes weigh 5 kg. The weight of the bag is not counted. A 1-litre bottle of milk represents that it contains 1 litre of milk. The bottle's weight is not counted. What Is Gross Weight? Gross weight means the total weight, including the packaging or any other additional content with the packaging, like a straw or spoon. It is the combined weight that is shipped or sold. Some examples of gross weight are explained below: A box of oranges weighing 5 kg gross weight represents the complete weight, including the weight of the box and other packing material. A bottle of orange juice weighing 1-litre gross weight means the complete weight, including the bottle and the straw that comes with it. What Is the Difference Between Net and Gross Weight? The main difference between gross and net weight is that the calculation of net weight excludes packaging, while the calculation of gross weight includes packaging. Net weight is essential for consumer goods, while gross weight is essential in shipping and logistics. AspectNet WeightGross WeightDefinitionWeight of the product alone, excluding packagingTotal weight including product and all packagingIncludesOnly the usable productProduct + packaging materials (box, bottle, straw, etc.)Examples1L milk means 1L of milk only, not the bottle1L juice includes the juice, bottle, and strawUsed inFood, manufacturing, retailShipping, logisticsImportanceFor fair pricing and consumer transparencyFor calculating shipping cost and logistics planningCalculation FormulaNet Weight = Gross Weight – Tare WeightGross Weight = Net Weight + Tare WeightKey Industry RelevanceRetail, food, and manufacturing where exact product quantity mattersLogistics and transport where total load weight is criticalChallengesDistinguishing net from gross due to packaging variationAffected by changes in temperature, pressure, and inaccurate tare weight calculation How Are Net Weight and Gross Weight Calculated? Before understanding the calculation of gross weight and net weight, it is important to understand another concept of measurement: the tare weight. So what is a tare weight? A tare weight is the weight of the packaging. Packaging can either include the main packaging or the packaging and additional containers that it comes in. The calculation of net weight and gross weight is as below: Net weight = Total Weight - Tare Weight / Gross Weight - Tare Weight Gross Weight = Net Weight + Tare Weight The Importance of Net Weight and Gross Weight in Different Industries Gross weight and net weight are two terms that are most commonly used in day-to-day life. However, it has great significance in different industries as well. Below are some industries where the application of net weight and gross weight is used: Shipping and Logistics Understanding the concept of gross weight and net weight is crucial in the shipping and logistics industry. It helps determine shipping charges for different packages and ensures complete compliance with transport regulations. More importantly, as there are multiple packages, the transport vehicles are arranged based on the calculated weight. If the calculation of the net weight and gross weight is an error, it can lead to additional charges. At times, the package might need to be redone to meet the regulations. Manufacturing and Production When manufacturing a product or producing an item, it is essential to know the net weight of the raw material to meet the standard requirements. Knowing the net weight helps maintain inventory control, maintain the uniformity of the produced goods, and accurately calculate material costs. Net weight is a highly significant concept in this industry, as consumers must be provided with the mentioned quantity. Food Industry Knowing and understanding the concept of net weight is extremely important in the food industry. Since strict rules need to be followed to maintain food safety, the net weight of edible items is printed on the packaging to provide accurate details to the customer. Furthermore, nutrition labelling is also a requisite in the food industry. It is essential to print everything according to the net weight so that customers can get the correct information if they are following a diet or want to avoid certain ingredients. Consumer Goods and Retail Knowing about net weight is essential to avoiding false advertising and following correct trade practices. All consumer goods are sold based on net weight, and it is required by law that a product's packaging describe its net weight. Printing the net weight is a standard rule because consumers compare products based on price and the quantity they are receiving. Hence, net weight is a significant concept in consumer goods and retail. Challenges in Weight Measurement The challenges that are faced by different industries in weight measurement are as follows: Packaging variability: Packing materials have different weights, which can sometimes make it challenging to weigh. It can also become difficult to distinguish net weight from gross weight. Faulty Equipment: Weighing equipment is necessary to determine the correct weight of an item. When the equipment is faulty, it will show the wrong weight, making it difficult to derive the exact weight. Changing Conditions: When it comes to liquid or semi-liquid items, the temperature and pressure can impact the gross weight as well as the net weight. Tare Weight Calculation: Since tare weight is essential to calculate gross weight or net weight, it can create errors if tare weight is challenging to weigh. This happens mostly when the shape of the container is unusual. Also check - Dimensional Weight Calculation Get Hassle-free Shipping with WareIQs's Smart Shipping Solutions WareIQ's innovative shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times. Our solution offers the following capabilities: Multi-carrier engine enabling fast deliveries across 24,000+ pin codes. Control Tower & automated workflows to minimise NDRs & RTOs. Same/Next-day delivery courier options. Seamless integration with your WMS, ERPs, and shopfronts. Shipping badges to display precise Estimated Delivery Dates (EDD). Custom branded tracking pages and notifications to enhance the customer experience. Conclusion There is a slight difference between net weight and gross weight. In many industries, the calculation of net weight and gross weight is of great significance. Net weight is the actual weight of the product or goods; gross weight, on the other hand, is the combined weight of the product/item and the packaging/container. Whether it is the shipping industry or food and retail, gross weight and net weight are widely used to maintain fair practices and regulations. Various factors can pose a challenge in determining the net weight and gross weight, such as faulty equipment, failure to calculate the weight, and packaging variability. Related - Shipping Weight Discrepancy in Indian eCommerce FAQs about Net Weight vs Gross Weight Does packaging affect gross weight?Yes, packaging impacts gross weight for smaller products like cosmetics or snacks. However, when it comes to heavy-weight products, the packaging will make minimal difference.Why does gross weight matter in the shipping industry?The gross weight helps to determine proper transportation arrangements. An arrangement made based on net weight can lead to overloading and, hence, can be hazardous. It can damage the goods in transit.What is tare weight?Tare weight is the weight of the packaging. To know the tare weight, you can deduct net weight from gross weight.Is it mandatory to list the net weight of the package?Yes, most laws require manufacturers to list the net weight of the package so that consumers can make an informed decision.Can gross weight and net weight be the same?Yes, in cases of bulk machinery or goods sold without packaging, the net weight and the gross weight will be the same.

June 18, 2025

Bill of Entry Status: How to Check and What It Means in Customs?

Have you ever ordered something internationally and found yourself wondering what happens once it crosses the border? Customs procedures can feel like an endless maze, and one term that tends to pop up often in this context is "bill of entry status." But what exactly does it mean, and why is it such a big deal? Whether you're an importer, a business owner managing logistics, or just someone fascinated by the inner workings of customs, this guide is here to clear up the mystery for you. Think of the bill of entry as more than just a piece of paperwork; it’s the golden ticket that ensures goods can cross borders legally and without unnecessary delays. But what happens when the process stalls or you're not sure where things stand? That’s when knowing how to check the bill of entry status becomes a game-changer. In this blog, we’re going to break down everything you need to know about a bill of entry: what it is, why the status matters, and, most importantly, how to track it like a pro using tools like ICEGATE. Ready to get a clear understanding of customs clearance? Let’s jump in and figure it out together. What is a Bill of Entry? Simply put, a bill of entry (BOE) is a legal document submitted to Customs authorities when goods are imported into a country. It contains detailed information about the shipment, such as: The value of goods. The description of goods. The applicable customs duty. In the world of logistics, the BOE is essential for clearing goods through customs. Without it, your imported products might sit in a warehouse indefinitely or incur hefty fines. Did you know that filing a bill of entry allows importers to claim Input Tax Credit (ITC) under GST? That’s another reason why keeping an eye on the bill of entry status is crucial. Why is it Crucial to Monitor the Bill of Entry Status? International shipments can be tricky to manage, and even minor delays can lead to higher costs, dissatisfied customers, and logistical headaches. This makes keeping an eye on your bill of entry status a critical task for businesses involved in imports. It’s more than just tracking a document – it’s about ensuring the entire process runs smoothly and without unnecessary setbacks. Smooth Customs Clearance: Monitoring your bill of entry status helps ensure your goods pass through customs without issues caused by incomplete or incorrect paperwork. Avoiding delays here saves you from paying extra storage charges or facing penalties. Accurate Duty and Tax Calculations: The bill of entry is crucial for determining customs duties, Integrated GST (IGST), and any compensation cess. Staying updated ensures you avoid calculation errors and pay the correct taxes for your shipment. Compliance with Regulations: Monitoring your BOE status through platforms like ICEGATE helps you meet import regulations, avoid missed deadlines, and prevent penalties caused by incomplete filings or late submissions. Efficient Logistics Management: A clear and up-to-date BOE status allows you to coordinate better with logistics providers, accurately predict delivery schedules, and manage your inventory more effectively, ensuring your supply chain remains uninterrupted. By using tools like the ICEGATE bill of entry status tracker, you can stay informed at every step of the process, avoid unnecessary delays, and improve the efficiency of your import operations. Being proactive is not just a smart practice—it’s the key to running smooth and cost-effective international trade. How to Check Bill of Entry Status Online? Thanks to the ICEGATE portal (Indian Customs Electronic Gateway), tracking your bill of entry status is now a simple and straightforward process. ICEGATE is the official platform for customs and GST-related activities in India, providing importers with easy access to critical information about their shipments. Whether you’re new to this or just need clarity, here’s the exact process to follow. Step-by-Step Guide to Track Bill of Entry Status via ICEGATE Search for the ICEGATE Portal Open your browser and search for “ICEGATE Portal” on Google, or directly visit ICEGATE’s website. Access the ‘Bill of Entry’ Tracking Section Once on the homepage, navigate to the “BE Tracking” section. You may find it under “Enquiry” or “Tracking Tools.” Log In (If Required) Some users, such as importers or authorised agents, might need to log in with their credentials to access specific information. Enter the Required Details To fetch your BOE status, provide the following information: Bill of Entry Number: A unique 13-digit identifier for your shipment’s BOE. Port Code: Identifies the customs location where the BOE was processed. BOE Filing Date: The date the BOE was submitted. Submit and Check the Status Hit the "Search" button, and the portal will display your BOE status. The information includes: Payment confirmation and duty status. Customs clearance progress. Shipment value, importer details, and channel number. Government agency approvals and document validity. Resolve Issues or Get Real-Time Updates If the status seems outdated or unclear, use the “Query ICEGATE” feature to fetch real-time updates directly from the customs database. Key Components of a Bill of Entry Want to decode the information on a BOE? Here are the critical elements you’ll find: Importer’s Details: Name, address, and Import Export Code (IEC). Exporter’s Information: Name and origin of the shipment. Goods Description: Quantity, monetary value, and tariff classification. Port Code: Identifies the customs location. Duties and Taxes: Includes IGST, customs duty, and cess. Every detail on the BOE has a purpose, so ensure its accuracy during filing. Mistakes can lead to delays or penalties. Common Issues with Bill of Entry and How to Resolve Them IssueDescriptionResolutionBOE Status Not UpdatedThe status may not show the latest updates due to technical glitches.Use the “Query ICEGATE” feature to fetch real-time data from the ICEGATE portal.Mismatch in DetailsBOE details don’t align with your shipment or supporting documents.Contact your Clearing House Agent (CHA) or the customs department to rectify the discrepancies.Delayed ClearanceShipment clearance is delayed due to unpaid duties or missing documents.Ensure all duties and taxes are paid promptly and submit complete documentation for processing. This table highlights the most common BOE issues and provides actionable steps to resolve them efficiently, ensuring smoother customs clearance. Related article - Difference Between Excise Duty and Custom Duty How Can WareIQ Help Simplify Your Import and Fulfillment Process? When managing imports and navigating customs processes like tracking your bill of entry status, efficient logistics and inventory management are critical to avoiding delays and ensuring smooth operations. This is where WareIQ steps in as a reliable partner for eCommerce businesses. WareIQ is a Y-Combinator-backed, full-stack fulfilment and shipping platform designed to meet the needs of modern eCommerce operations. Here’s how WareIQ can optimise your supply chain: Nationwide Fulfillment Network: WareIQ operates fulfilment centres across 12+ cities, ensuring inventory is strategically positioned close to your customers for faster delivery. It supports multi-channel fulfilment across platforms like Amazon, Flipkart, Shopify, and others. Advanced Inventory Management: With AI-powered inventory planning, WareIQ helps prevent stockouts and automates replenishment to ensure uninterrupted supply chain operations. Smart Shipping Options: WareIQ offers delivery to 27,000+ pin codes through a multi-carrier engine, providing same-day or next-day delivery options. Features like branded tracking pages and accurate delivery timelines improve customer experience. Compliance Assistance: WareIQ simplifies GST registrations, APOB/PPOB setups, and ensures marketplace-compliant operations, easing the burden of customs and compliance management. Partnering with WareIQ means fewer delays, better efficiency, and more satisfied customers. Manage your import and fulfilment processes effortlessly with WareIQ Suggested read - Shipping Bill vs Bill of Lading: Key Differences Explained Wrapping Up Understanding and tracking the bill of entry status is a crucial part of ensuring seamless customs clearance and smooth logistics operations. From preventing delays to avoiding fines, staying updated on the BOE status can save businesses from unnecessary hassles. Platforms like ICEGATE make it easier to monitor shipments, while solutions like WareIQ further enhance logistics efficiency with advanced fulfilment and shipping support. By leveraging the tools and knowledge outlined in this blog, importers can navigate the complexities of customs with ease and focus on growing their business. Whether you’re an eCommerce seller or a business owner managing global trade, staying proactive with your logistics and customs processes will ensure success in the long run. You may also like to read - How to Check Your Shipping Bill Status Online in India? Frequently Asked Questions (FAQs) What is the SEZ bill of entry status?The SEZ bill of entry status refers to the tracking of customs clearance for goods being imported into or exported from Special Economic Zones (SEZs). It provides updates on document validation, customs duties, and clearance progress specific to SEZ regulations.What happens if my SEZ bill of entry status is not updated?If the SEZ bill of entry status is not updated, it could be due to system delays or incomplete filings. Use the "Query ICEGATE" feature for real-time updates or contact your CHA for assistance.What is the ICEGATE portal, and how does it help with tracking the bill of entry status?ICEGATE (Indian Customs Electronic Gateway) is the official platform for customs and GST-related activities in India. It allows importers to track their bill of entry status, view payment confirmations, check customs clearance updates, and access other shipment-related information.Can I check the status of the bill of entry without a clearing house agent (CHA)?Yes, you can track the status yourself through the ICEGATE portal if you have the required details like the Bill of Entry number, Port Code, and Date of Filing. However, a CHA can assist with resolving any issues or discrepancies in the process.

June 17, 2025

Shipping Bill vs Bill of Lading: Key Differences Explained

When it comes to international shipping, several documents must be considered. These documents are of great significance, as they contain information about shipments. Some of the documents that stand out for their importance include shipping bills and bills of lading. To a common man, both documents seem similar; however, they are quite distinct in terms of their importance in the logistics chain. Businesses involved in the shipping industry must understand the key differences between Shipping Bill vs Bill of Lading. Additionally, considering that in June 2022, approximately 2.1% of the 45 million bills were made digitally, it highlights how the shipping industry is transitioning to digital documents, replacing traditional paperwork such as the shipping bill and bills of lading; it thus becomes necessary to be aware of various documents and their usage. In this article, we will understand what is a shipping bill, what is a bill of lading and what are the differences between Shipping Bill and Bill of Lading. What is a Shipping Bill? One of the primary documents required by the customs authority during the clearance of goods is the shipping bill. The shipping bill contains detailed information about the goods that are being exported or imported. Details on a shipping bill include the following aspects: The complete description of the good, such as the type, value and the quantity. It also contains detailed information about the exporter and importer, including their names, numbers, and addresses. It also contains the HS code, which is the Harmonised System code for classifying the goods. The shipping bill also has details about the port for loading, as well as the destination. It specifies the exact location from which the goods are being shipped and to which location they are being shipped. Shipping bills also include export taxes, which apply to the goods. What is a Bill of Lading? The bill of lading is a document that is legalised, and it is a necessary requirement for every shipper. It is issued by the carrier to the shipper, thereby acknowledging the receipt of goods for shipment. A bill of lading serves several purposes. Purposes served by a bill of lading include: It confirms that the carrier had successfully received the shipment of goods. A bill of lading also outlines the terms and conditions in detail under which the goods are shipped. A bill of lading necessarily contains a document of title. It represents the ownership of the goods. The document title can be used to transfer ownership by endorsement. Shipping Bill Vs Bill of Lading: Key Differences When the international shipping industry is considered, the shipping bill is quite different from the bill of lading. The differences between a shipping bill and a bill of lading are explained below in detail: AspectShipping BillBill of LadingType of documentA shipping bill is a legal document that is required for customs clearance.On the contrary, a bill of lading is a legal document that is used by shippers or carriers.Main PurposeThe primary purpose of a shipping bill is to obtain customs clearance and permission for export.The primary reason why a bill of lading is issued is for the acknowledgement of goods and terms and conditions of a shipment.OwnershipA shipping bill does not represent ownership.A bill of lading does represent ownership and can also be transferred.Authorities involvedAuthorities involved in verification or issuance are customs authorities.The bill of lading is governed by maritime laws and does not involve customs authorities.Mode of generationA shipping bill is generated by authorities such as ICEGATE in India and is generated electronically.A bill of lading can be generated electronically or manually. It is usually generated by the shipping line.Requirement of signaturesA shipping bill may require signatures from customs, CHA, or even the exporter.A bill of lading mandatorily requires a signature from the carrier.Customs requirementA shipping bill is an essential document needed for customs clearance.A bill of lading is not needed for customs clearance; however, it is needed for cargo delivery.Retention periodThe retention period of a shipping bill as per legal or compliance norms is for 5 to 7 years.A bill of lading must be preserved for dispute handling and record keeping, as it is required for cargo release.AmendmentsAmendments to a shipping bill can be made before the departure of cargo or before customs clearance.Amendments to a bill of lading are difficult if the cargo is already shipped out.JurisdictionA shipping bill falls under export regulations or customs clearance in a country.A bill of lading falls under maritime or contractual laws.Related documentsDocuments which are related to a shipping bill include certificate of origin, LUT (for exports), packing list and invoice.Documents related to a bill of lading include a delivery order, letter of credit or freight invoice. Get Seamless Documentation With Shipping Solutions From WareIQ WareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times. Our solution offers the following capabilities: Multi-carrier engine enabling fast deliveries across 24,000+ pin codes Control Tower & automated workflows to minimise NDR & RTOs Same/Next-day delivery courier options Seamless Integration with your WMS, ERPs and Storefronts Shipping Badges to display precise Estimated Delivery Dates (EDD) Custom branded tracking pages and notifications to enhance customer experience Suggested read- How to check Bill of Entry Status Conclusion A bill of lading and a shipping bill are two essential documents in international trade. Hence, it is necessary to understand both the documents and their differences as well. A shipping bill ensures smooth customs clearance, as it serves as a formal permission document, which is essential. On the other hand, a bill of lading is like a contractual pass that is issued by the carrier. Understanding the nuances of Shipping Bill vs Bill of Lading is necessary not only for compliance but also for seamless and efficient logistics management. It is also required to protect the cargo being shipped, maintain healthy cash flows, and obtain timely clearances. Being unaware of the significance and differences between these documents can lead to monetary penalties, delays, and even the seizure of shipments. Related read - How to Check Your Shipping Bill Status Online in India? FAQs About Shipping Bill vs Bill of Lading Who issues the shipping bill?A shipping bill is a document generated electronically by either the exporter or their authorised agent. It is usually generated through the ICEGATE portal in India.Is it necessary to have a shipping bill generated for every export?Yes, a shipping bill is a necessary document required for customs clearance on all shipments exported from India.Is a bill of lading similar to a sea waybill?No, a bill of lading is different from a sea waybill. A bill of lading is a document that essentially represents ownership of goods. On the other hand, a sea waybill is a non-negotiable document and does not serve as a document of title.Will there be any complications if there is a discrepancy found in a shipping bill?If there are discrepancies in a shipping bill, it can cause various problems, such as delayed customs clearance processes and potential penalties and fines.

June 16, 2025