Difference between shut out cargo and short shipment cargo

 The information provided here is part of Online export import business guide course

Difference between shut out cargo and short shipment cargo

How to differentiate short shipment between shut out?

Shut out and short shipment are the two terms used in Export customs clearance formalities and procedures in India.

Difference between shut out cargo and short shipment cargo

What is shut out Cargo? How does short shipment cargo work? How to differentiate between Shut out cargo and Short Shipment Cargo?

Shut out in Exports means, bringing back the goods to shipper’s premises after completion of customs export clearance procedures.  If the export quantity of goods are lesser than the quantity mentioned in the export shipping documents filed with customs it is called short shipment.

Shut out procedures in export customs clearance happens once exporter decides to cancel the export movement of goods after completion of export customs clearance procedures.

‘Shut out’ can happen due to cancellation of export order, non fulfillment of quality specifications or change of goods shipped or any other reasons.   Once exporter realizes and decides, not to ship the goods to the overseas buyer after completion of export procedures, he seeks permission from customs to take back the goods to his premises.  In some cases of  ‘shut out  shipment’, the cargo would have already moved to load port. However, the cargo can be brought back to the supplier’s premises by completing necessary formalities with customs.

What is short shipment? How does Short shipment work in Exports?

If any shortfall on quantity of goods filed for export customs clearance procedures, such amount of shortage is called Short shipment. For example, an exporter arranges export customs clearance procedures against an export order of 500 pieces in a shipment. However, after filing of necessary documents for export customs clearance, the exporter realizes that the number of quantity is only 475 pieces ready for shipment  with a shortage of 25 pieces. Here, he obtains permission to ship 475 pieces from overseas buyer and arranges to correct in export shipping bill accordingly. A short shipment notice for a quantity of 25 pieces  is filed with necessary permission from customs and mention  on shipping bill about the quantity short shipped.  This short shipment notice is attached along with each copy of original shipping bill.  This procedure is taken place where in no facility for electronic filing of shipping documents available.   This procedure is easier and save dwell time at customs location where in electronic facility available.

I hope, I could differentiate Short shipment and Shut out procedures and formalities in Export customs clearance.

Would you like to share your experience in this subject – Short shipment and shut out in Exports and Imports?

The above information is a part of Guide on howtoexport and import 

Write below your comments about Shut out and short shipment.

Other posts about Import Export online tutorial

Export customs clearance procedures and formalities in India
What is the difference between re-exports and re-imports
What is Surrender of Bill of Lading
Is Letter of Credit LC safe for an Importer?
Do pro- forma invoice accepts for import customs clearance?
Difference between Demurrage and Detention in import
How to start Export Business?
How to get Export Orders?
What are the risks and solutions in Export Business?
Click here to know India Trade Classification(ITC)
Service Tax - Click here to read complete notification under Budget 2014
What is Bank post shipment credit to exporters?
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 Is Received for shipment Bill of Lading sufficient for LC negotiation?

 Is Risk Management System (RMS) simplify import? What is RMS in import.

 Is sales tax applicable on shipments effected under high sea sales

 Is Seaway bill a document of title? What is Seaway bill.

Is THC same in all ports

KINDS OF LOSSES in Marine Insurance

 Know the term Port of Discharge and Place of Delivery

LC advantage exporter


LC advantage importer

LC parties

LCL shipment booking tips

Letter of credit

 Import General Manifest (IGM)

Importance of Bill of Lading

Introduction to this web site.

 Is Airway bill a documents of title?

 Is Customs House Agents (CHA ) required to be appointed mandatory?

 Is DP terms of payment safe in export business?

Is Letter of Credit LC safe for an Importer?


 Is ON BOARD CERTIFICATE required for LC negotiation

Maintain quality of goods - a prime factor in exports

Master collect House collect

 How does Letter of Credit work?

How does STP units work in India?

How does TT (Telegraphic Transfer) work?

Negotiation procedures and formalities of export bills

Non receipt of Cargo Arrival Notice, Can importer sue against shipping company


OBL not released OBL not surrendered no telex release

 Office to contact Phytosanitary inspection in India

 Offices to obtain RCMC

Who can inspect import cargo in US

Who decides shipping carrier on FOB shipments

Who gets benefited with my articles in this website

Options under central excise clearance

Packing of export goods - How important in International business?

Parties in LC

 Payment procedures in Triangular exports

Payment terms

POD Proof of Delivery – How important in Imports

 Post export incentives

We have IEC, can we export from all ports?

What are the legal documents in exports



ALANKAR: Thanks for the information, we will be very thankful if you suggest how the shortshipment error resolved at ICD customs (In EDI), because we are phasing problems with some DRAW BACK Shipping Bills as the same got LEO and now with a status of "Short Shipmnet". Kindly help in this regard Thanks & Regds Rama Krishna

SIVAKUMAR: Dear Sir, WE have an import of 8 containers to Chennai. But only 7 containers already landed. 1 container is still lying at Port Klang. Please advise what is the procedure to be done. I need a detailed note whether can I file BE etc if not what are the procedures to be followed:

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers