Short shipment in Export business

 The information provided here is part of Import Export online Training


 Short shipment in Export business


What is short shipment in Export and Import Trade? How does short shipment work?

What does short shipment mean?


“Short shipment of goods” means, quantity and value of goods actually exported, lesser than the declared in export shipping documents.


One of the examples of short shipment can be explained below:



You (exporter) contracted your overseas buyer to export 1000 numbers of T shirts. The date of shipment is before 30th September. You have arranged to manufacture accordingly. You have prepared commercial invoice, packing list and other required Short shipment in Export business documents for 1000 numbers and arrange to file with customs for export. By 20th September, you have arranged to pack all 1000 numbers. You came to know that 25 numbers of T shirts have not been approved by your quality department as they are not meeting the specifications as per contract with order.


You do not have time to produce the balance numbers. More over, you have already filed all required documents with customs department and shipping bill has already been processed. In this case, you can intimate customs official and arrange to file a short shipment notice for 25 numbers. Customs department permits you to ship 975 numbers and arrange a short shipment note attached along with shipping bill. All claims and other financial assistance can be claimed only for 975 numbers.


After introduction of electronic filing system ‘online filing and processing’ with customs department, the procedures are too simplified. Rather than applying for short shipment, I personally suggest to cancel the shipping bill and file fresh shipping bill for 975 numbers. This can be done before filing for ‘goods registration for inspection’.


I hope, I could explain the term ‘Short shipment’ in export import trade of international business. Do you wish to add more information about Short Shipment in Export Import business?


Would you like to share your experience in Short Shipment of goods in international trade of import and export?


The above information is a part of Export Import Training course online

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Rahul: what should we do when the shipping bill has been generated and while loading the goods in container there is short shipment.What should be the treatment at that time?

Jo: Hi, my company have been dealing with short shipments. we would like to get some advises on how to prevent it in the future shipments.

rohith: We doing import from China before 2months. As per t&C with China company we have to pay bill amount as per current price if price goes low. What paper we have to submit to bank or custom to send payment. If payment is lessed 50%. Sir can you please provide you contact number.

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