Difference between shipping bill and GR

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Difference between shipping bill and GR

This article is a part of series of replies on questions asked by readers of this website. How to differentiate GR with shipping bill? How does GR work? How is the mechanism of shipping bill for export? Is there any difference between GR and shipping bill? Are GR and shipping bill same?

What is shipping bill and how does shipping bill work?

Difference between shipping bill and GR

Once after preparing commercial invoice, packing list and other documents for export documentation for customs clearance procedures, the shipper eit

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.Difference between shipping bill and GR 1

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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Tushar Mathur: Dear Sir, Can you please confirm the full form of the word GR ? Thanks in advance

Surendran: GR means Guaranteed Remittance, which is used as 'exchange control declaration form'

Ashim Adhikary: Sir, I am eager to know the full form of "GR" Form of RBI. Would you kindly explain. Regards.

Ankur Garg: hi Nice article. It helped me in understanding the basics of my new job which is all related to export and export incentives.

Arup Ghosh: Myself Arup Ghosh, need some information regarding export import documentation system. Please help me to give some information, how many copy require of each documents in case of export or import. Documents are mention below : 1. GR Form. 2. Freight Payment Certificate.

Deepak deepak5544@gmail.com: I am an export merchant in Tuticorin,Tamilnadu.As I have started a new firm my bank is not ready to open L/C for me.I am catching buyers through B2B websites only.They don't give me any advance payment also.Is there any ways to open L/C for my new firm.Thanks in advance.

Admin: Hi Arup Ghosh, GR is not required, if export customs clearance procedures are done electronically through EDI system of customs. GR is used to file export shipping clearance by manually. The details articles are posted about GR in this website. You can read the same. Freight payment certificate is normally issued in duplicate, however depends the issuing authority.

Admin: Hi Deepak, Letter of Credit is issued by your banker based on your financial relationship with them. You may keep 100% margin amount with your banker, if bank does not provide credit facility.

lourdes gracias : My name is Gracias and I am Working for a Private Limited company in Mumbai We have despatched some material through Road to Nepal (the transaction is in Indian Rupees and under L/C)Please let me know do we require to submit GR form along with thedocuments for Negotiation. If yes, Sir please let me know from whereto get this GR form

Shailesh Bhuva: Its great knowledge for export import business.....

SWETA: This is an amazing site I have ever visited . Thank you for sharing such a wonderful thoughts about export import specially for me who had no idea about it earlier.I visit this site almost daily to clear all my doubt. Thank you once again.. :-)

uttara: Very nice articles in your website...nicely explained.

Mukesh Kumar: We are required the HS code for Laundry Equipments

Ankita Singhania: Hello! Can you please tell me till what amount is GR Clearance not required? Or do I have to get it done even for small amounts coming from customers abroad? Thanks in advance!

BB : Please advise the difference of below shipment terms. EXPORT & IMPORT BOTH OF SHIPMENT,DDP,DDU,DDP

A.K.Agarwal: I am an exporter. In my export from Delhi Airport I experienced problem of difference of value in GR electronically transmitted and Invoice value shown in SB. Due to this difference my AD bank did not accept documents. Bank says that such problems are obseved these days.Pls. explain the reason for such problems and how to rectify them. Cistoms are not helping in solving such problems.

Harish: Dear sir, i am also an exporter and we get so many funds for export from credit card payment, or from paypal, or from xoom, western unions etc etc. So now my question are 1. That how shall i get it GR clearance? 2. Is G r clearance is necessary for all the inward payments ? 3. What is in the case of small sample payments we got from buyers.? Please if someone know the answer of these points i am really looking forward the answers. Can also call me 9408678235. Thanks Harish

Chetan Sharma: Dear Sir, What is the opposite of bill of entry? if transport is by ship/ air?

Harish: i am also an exporter and we get so many funds for export from credit card payment, or from paypal, or from xoom, western unions etc etc. So now my questions are 1. That how shall i get it GR clearance? Without having FIRC. 2. Is G r clearance is necessary for all the inward payments? 3. What is in the case of small sample payments we got from buyers?

Anil: Dear Sir, I want to know the process of GR release because my bank is asking me to release GR for the year 2006 to 2009, I didnt know that time about the process of GR. Now most of the docs are misplaced. Now i want to know whether there is any alternate of releasing GR without shipping bills and Bill of Lading. Plz reply soon.

RAKESH KUMAR SHARMA: Dear Sir, I would like to know more about Bank GR. Please help to understand this. We received a lot of items from ABB Germany. We paid custom duty also. After some time one of the items got defective. ABB Germany wants it back and they will dispatch new Item. They also agreed to cover related costs for both transport. Kindly clarify that in this case Bank GR is required for sending defective item to Germany. This defective item will not return to India.

Mayank Agarwal: sir, my company imported rubber cargo at Nhava Sheva, the CHA filed bill of entry (for re export purpose only), then took cargo to bonded warehouse and filed export shipping bill under section 69 for re export purpose. For this case does a GR have to be submitted to customs or not as my CHA did submit it? the cargo was imported just as notify party(and not buyer) and no outward payment was made by us for the import, there was also no inward payment received for the export. How to rectify the situation with customs and our bank?

Rakshit: What is GR form No. means which is mentioned in Cover Letter for BRC? IS it mean FIRC no. or Shipping bill no. or something else?

T V Sharma: for export to Kuwait do I require any certifying agency to certify my goods before submitting to customs? Is hyderabad under EDI for exports?

Sundar Desai: Dear sir, Why my HDFC bank Want my original shipping bill for his record? they have right to ask for original shipping Bill? Reply me please.

S. Louis victor: The value of the shipping Bill is more than the value of the Invoice i.e 0.1 to 0.60 Is there any problem for negotiate the documents to bank

Pradeep : What is meaning of packing credit limit (PCL)which is showing in bank a/c how it's accounting treatment.

mainish soni: Under the GR waiver re-exported the goods for repair. After repairing the goods its re-imported and in BOE mentioned repairing charges as value on the basis of supplier invoice. Now Bank saying the GR waiver Value is not matching with BOE so GR waiver can not be close. what is the way forward and legal position as per FEMA?

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