Print FedEx CSB-V label using Shopify FedEx shipping app
International trade has given Indian Small and Medium Enterprises (SME) a great opportunity to explore the global market and sell their products to more customers overseas. However, while trading internationally, the major problem you face is the Customs Clearance and other documentation required for international trade.
There are a number of laws that deal with exporting products from India, which may go unnoticed by you in this process. For somebody starting out with international e-Commerce business, knowing these laws and criteria is a must.
Here, we will be discussing one such criterion, the CSB-V (Courier Shipping Bill) standard, and how the FedEx Rates, Labels & Tracking app helps you handle this for your Shopify FedEx shipments.
What is the CSB-V Label standard?
Central Board of Indirect Taxes & Customs (CBIC) notified Courier Imports and Exports to introduce the new format of ‘Courier Shipping Bill’ replacing the CSB-II standard, ie. CSB-V is a revision made to the CSB-II standard. With CSB-V, commercial shipments less than Rs. 5 lakhs is allowed through courier mode.
What are the benefits of CSB-V standard?
You just need to have your shipping AWB and invoice to complete the process of CSB-V. This helps you decrease the paperwork and thereby increase the number of sales you may do internationally.
Easy custom clearance
While using CSB-V, you can easily go through customs clearance, electronically.
With CSB-V, you can get the GST returns for your international shipments. You can avail GST returns once you share the package’s shipping details such as the Airway Bill number and the invoice, which is not possible in CSB-II as you do not get a chance to show your shipment as an export.
FedEx CSB-V standard Shipping label & Commercial Invoice
The above images show the FedEx shipping label and the commercial invoice generated as per the CSB-V standard. Let’s see what each value means.
1. PO/AD Code
The AD code (Authorised Dealer Code) can be obtained from the bank in which the exporter has opened his current account for the purpose of export & import. This is provided to each bank all over the country. Without the AD code, the exporter can’t generate the shipping bill number which is necessarily required for customs clearance.
Here are the steps you have to follow in order to obtain the AD Code.
Step 1: Approach the bank in which you have maintained your business current account.
Step 2: Write a letter to the bank branch manager for providing the AD Code in the prescribed format.
Step 3: Obtain the AD Code on the bank letterhead in DGFT (Directorate General of Foreign Trade) prescribed format.
Step 4: Once you obtain the letter, register the AD Code at every port from where you will be exporting the goods.
2. GST Enabled
If the shipment has a GST Invoice, the value displayed on the shipping label is either a “G” (for GST) or “N” (for no GST). Enable the GST to add the GST amount to the label.
3. Terms of Sale
Terms of sale is explained as the cost, amount, and distribution terms, which a buyer and the seller agree upon, regarding a sale. The following are the values displayed on the label based on the terms.
DDU (Delivered Duty Unpaid): The seller is responsible for delivering goods to the destination and the buyer is responsible for clearing goods through the Bureau of Customs and Border Protection.
DDP (Delivered Duty Paid): The seller is responsible for delivering goods to the destination, including duties, taxes, and miscellaneous fees.
EXW (ExWorks): The seller makes goods available to the buyer and the buyer is responsible for delivering goods to the destination.
DAP (Delivered at Place): The seller pays for carriage to the named place, except for costs related to import clearance, and assumes that all risks prior to the point that the goods are ready for unloading by the buyer.
DAT (Delivered at Terminal): The seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.
FCA/FOB (Free Carrier/Free On Board): The seller is responsible for all costs of delivering goods to the destination. (Default)
CIP/CIF (Costs, Insurance Paid/Carriage Insurance Freight): The seller is responsible for freight insurance, and miscellaneous charges to destination.
CPT/C&F (Carriage Paid To/Costs and Freight): The seller is responsible for the cost of freight to destination; the buyer is responsible for insurance.
4. Shipment under Bond/Letter of Undertaking
Bonded Goods are imported shipments on which customs charges, including duties, taxes, and any penalties are still owing.
Letter of Undertaking (LUT) is a type of bank guarantee, under which a bank allows its customers to raise money from another Indian bank’s foreign branch as short-term credit. The validity of such LUT’s is for a period of one year.
The values displayed on the label is either “B” (For BOND) or “U” (For letter of undertaking) or “-” (For None).
5. E-commerce Shipments
You have to choose whether your shipment is an E-commerce shipment or a Non-E-commerce shipment. The values displayed here is “E” (for Ecommerce) or “-” (For Non-E-commerce shipments).
6. MEIS Shipments
The MEIS was introduced in the Foreign Trade Policy (FTP) as an incentive scheme for the export of goods. The incentives are for the goods exported from India, industries producing or manufacturing such goods with the intention of making Indian exports competitive.
You can claim the MEIS benefits when shipping products from any of these six categories:
1. Handloom Products
3. Handicraft Products
4. Customized Fashion Garments
5. Leather Footwear
The value displayed on the label will be either “M” (For MEIS category) or “-” for the Non-MEIS category.
7. GST Amount
You need to mention the GST amount for the shipment. The total amount will be displayed on the shipping label and a detailed calculation will be displayed on the commercial invoice. If there is no GST amount, the value displayed on the label will be “0”.
8. Invoice Date
The commercial invoice date will be displayed on the label which will be in DDMMYY format.
9. GST Identification Number (GSTIN)
You need to have a unique GST number (or Tax ID), that will be displayed on the commercial invoice.
Handling CSB-V with the FedEx Rates, Labels & Tracking app
With the app, you can enable the FedEx CSB-V and print labels with the CSB-V standard as shown in the above section. To enable CSB-V standard with the app, you need to have your own FedEx India account.
Head to the “Account” sections under the app settings. Configure the FedEx account and choose the “country of origin” as India to get the CSB settings.
1. GST Enabled: Enable the checkbox to add the GST amount to the label.
2. E-Commerce Shipments: Select the type of shipment from the drop-down list, ie. if it’s an E-Commerce shipment or a Non-E-Commerce shipment.
3. AD Code: Follow the steps mentioned in the above section to get the AD Code. Enter the AD Code, that will be displayed on the shipping label.
4. MEIS Shipments: Select the MEIS shipment option, if your shipment falls under any of the categories mentioned in the above section. If not, select the Non-MEIS option.
5. GST Identification Number (or Tax ID): Enter the unique GST identification number.
6. Shipment Under BOND: Select from the list, whether your shipment is under BOND, Letter of Undertaking (LUT), or None.
7. Terms of Sale: This is available under the Commercial Invoice section in the app. Choose the type of Terms of Sales from the drop-down list. FOB (Free On Board) will be the default option in the app.
In this article, we discussed the CSB-V standard details and settings to use the CSB-V standard with the FedEx Rates, Labels & Tracking app. We have also discussed the benefits of using the CSB-V label standard.
If you have any queries related to the Shopify FedEx Rates, Labels & Tracking app set up to use the CSB-V standard, do contact our support.