When sellers ship an e-commerce shipment of commercial value via courier, they must file a series of documents in a logical order.
Courier Shipping Bill-IV (CSB-4) or Courier Shipping Bill-V (CSB-5) under Regulation 6(3) of the Courier Imports and Exports (Electronic Declaration and Processing) Amendment Regulations 2018.
This states that the exporter has authorized the shipping partner, such as DHL, FedEx, etc., to book the shipment under the Courier Airway Bill and the said courier per (CSB-5).
What Is CSB-4?
As a non-commercial declaration, issuing this means either the exporter is sending a personal shipment or testing the water of international shipping before starting a full-scale commercial application.
However, it must be noted that this declaration can only be issued for goods under INR 25000.
The exporter issues a declaration in the appropriate form (Form H) to the dealer making the transaction to the exporter.
A local supplier cannot be confident that export criteria are met unless the exporter who sells products to the overseas customer informs him of the fulfillment of the aforementioned conditions.
Only the exporter who is doing direct export knows or can verify that the prerequisites have been met.
(1) Importers and exporters must not import or export documents in any form (papers, cards, pictures) prohibited by law.
(2) Physical scrutiny of export paperwork, samples, and items limited to 10% of total courier consignments. The selected consignments will be thoroughly scrutinized.
(3) Physical examination of consignments based on characteristics like commodity type, value, weight, and importer status.
(4) Couriers can import dutiable commercial products without quantity restrictions, by paying duty at Customs clearance.
What Is CSB-5?
CSB-5 declaration allows businesses to transport products up to INR 5 Lac, exceeding the INR 25000 limit, for commercial purposes.
Issuance of this form indicates that the seller has most likely been in the business of international shipping for a long time.
Courier submits CSB-5 details, including goods information, to Airport for Customs clearance after forwarding the Statement (manifest).
The exporter must file their GST returns in accordance with the Courier Shipping Bill-5 (CSB-5).
Authorities share Shipping Bill data and info with GST Department when products enter India, ensuring compliance with relevant regulations.
Accurate, timely, and proper filing of GSTR-3B/GSTR-1 with essential data will make the GST Refund procedure easy for the export.
- The GST data, IEC, and HSN Code are required by CSB-5.
- Commercial exports through CSB-5 are permitted at customs airports in Mumbai, Delhi, Chennai, Calcutta, Bangalore, Hyderabad, Ahmedabad, Jaipur, Trivandrum, Cochin, Coimbatore, Calicut, Tiruchirapalli, and land customs stations in West Bengal other than Gojadanga and Petrapole.
- CSB-V exports can profit from MEIS if they fall into the qualifying category, which includes shipments with a value of up to INR 5,00,000 and containing a foreign exchange transaction.
Which Products To Target?
Once you’ve decided how you want to export your items, you’ll need to keep an eye on what you can export.
Essentially, you must be familiar with the many things that are in high demand abroad.
When you list them on your platform, they are the most frequently ordered by overseas clients.
Here is a list of Indian exports that have done very well in the international market:
Handmade silk goods
The United States, United Kingdom, Singapore, Hong Kong, and Australia are the top export markets for Indian marketplace and individual sellers.
Only 24% of conventional manufacturing enterprises in India export to other countries.
These figures are low when compared to other marketplace sellers that sell on sites such as eBay, Amazon, and others.
Did you know that businesses who ship internationally can claim GST benefit?
International freight charges apply for businesses shipping from India to outside India.
Something which every CSB-4 and CSB-5 issuers are liable to pay. Businesses issuing a CSB-5 enjoy GST return on export, a significant benefit for business owners.