her files documents directly with customs department or appoint a customs broker to file export documents on behalf of shipper. As you know, any goods moving out of country need to be approved by customs by mandatory filing of a legal document called shipping bill. Shipping bill contains all required details about the goods planed to export. For example; order or LC number and date, shipper’s invoice number and date, name of shipper, consignee, notify party if any, buyer other than consignee, place of receipt of cargo, port of loading, port of discharge, final destination place, terms of payment, terms of delivery of cargo, marks and numbers of packages, number of packages, unit price, FOB value of goods, total value of goods in local currency of country. The shipping bill also reflects the scheme of export whether free bill, draw back, DEEC, DEPB, DFRC, EPCG or under any other benefited scheme. The shipper of his customs broker signs with rubber stamp below the declaration of shipping bill as specified by customs authorities. If the cargo is filed at a customs location where in electronic data interchange facility is available, such shipping bill is filed by electronic means as per the specified format of software.
Once after filing of such shipping bill in quadruplicate with extra copies (under certain schemes in quintuplicate) the customs authorities admit shipping bill and necessary assessment and examination procedures are carried out. After completion of all export procedures and formalities a ‘let export order’ is issued on shipping bill duly signed and sealed by customs officials. Under EDI system of filing export customs clearance procedures, the required assessment procedures are being done electronically and after physical verification where ever applicable, copies of ‘let export order’ is released as hard copies after signing and sealing by proper officer of customs. This is the mechanism of shipping bill under export customs clearance procedures in India.
What is GR and how it differs from shipping bill? What is the full form of GR?
The full form of GR is Guaranteed Remittance.
After introduction of electronic data interchange facility, the manual (hard copy) GR procedures have been discontinued, as a copy of GR is directly transmitted from customs department to Reserve bank. However, GR procedures in export are continued at a customs location where in no electronic filing arrangements are available.
What is the importance of GR? Is GR meant for customs?
GR is not meant for customs, but it is the property of Reserve Bank of India. What is the importance of GR and why does Reserve Bank monitor GR?
As you know, inward and outward remittance of the country is monitored by Reserve Bank. In an export trade, inward remittance from foreign country is effected and in an import trade money is transferred from importing country to a foreign country. For an economic stability of a country, all inward and outward movements of money have to be monitored and Reserve bank is the government agency for the same. This is the reason for involvement of Reserve Bank on each export of country through monitor of GR.
Now let us discuss about the mechanism of GR at a location where in no EDI facility is available.
The shipper collects required blank GR sets from Reserve bank of India after submission of a reference letter from shipper’s authorized dealer bank. Two copies of GR – original and duplicate- are issued for one export shipment. Means, one set of GR contains in duplicate. One side of each GR form would be blank and other side with printed declaration specified by reserve bank with columns to sign for shipper and customs official at the time of assessment of shipping bill and at the time of approving for ‘let export’ after completion of export customs formalities.
Ok, now after collecting blank sets of GR from Reserve bank by a shipper, one set of GR form for one shipment duly signed in both copies delivers to his authorized customs broker to file documents for completion of necessary export customs formalities. After receiving GR and other documents, customs house agent prepares shipping bill to file as a mandatory legal document with customs duly signed by him.
Now, the customs house agent (or shipper, if he files documents as self clearance) arranges to make a true copy image of shipping bill on the blank side of each copy of GR, original and duplicate. Now the blank side of GR is filled with an impression of true copy of shipping bill and other side with necessary printed declaration with columns for signature by proper customs official. The required declaration column of shipper already signed by him as explained above. Once after value assessment of export goods, the proper customs officer signs both copies of GR on the space allocated and again at the time of ‘let export order’ on duplicate copy of GR at the specified area.
After completion of necessary export customs clearance procedures and formalities, original copy of GR is detached with customs and the said original GR is sent to Reserve bank by customs authorities within a stipulated period of time. The duplicate copy of GR is delivered to shipper by his customs broker. The shipper, along with other shipping documents submits the said duplicate copy of GR with his authorized dealer bank at the time of discounting bills or negotiation of letter of credit. The said duplicate copy of GR is sent to Reserve bank by shipper’s authorized dealer bank. The reserve bank monitors the value under this export shipment (the amount receivable to the country through this particular shipper) through the said GR time to time.
I hope, I could clarify you on about the mechanism of shipping bill and GR by differentiating both of them.
Also read - Difference between SOFTEX and GR forms How many types of shipping bills in export?
How do you value the above information about GR and shipping bill? Do you have more information on GR and shipping bill? Would you like to express different thought on shipping bill Vs GR? Opine below:
The above information is a part of Online Training Course on howtoexportimport
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