Understanding CSB-IV & CSB-V in International Shipping
Industry standards are a pretty messy business.
That’s doubly true for you if you are shipping internationally. You need to be compliant with so many documents that it can become a real headache fast.
That’s why we are here to help you easily understand every crucial cog in the Indian export machine. Today, let’s learn about CSB-IV and CSB-V.
These are two critical documents under Regulation 6(3) of the Courier Imports And Exports (Electronic Declaration And Processing) Regulations, 2010, which was updated in 2018.
Let’s help you understand them and how they differ in the simplest terms.
What is CSB-IV?
CSB-IV, aka Courier Shipping Bill-IV, is a type of non-commercial shipping bill used to ship gifts and samples from India.
This document is simply informing customs about what you are sending over. But we aren’t talking about gifts here. What you, as an exporter, will be using CSB-IV for mainly includes samples to test the trading waters.
These could be some new dips or pickles you want to introduce to the market. Or maybe you could send over some candles for the foreign dealers to sell. You will be able to assess the impact and make an informed trading decision based on that.
Note: The CSB-IV declaration is only available for goods under INR 50,000.
And of course, if you have to ship low-value or low-quantity goods, the CSB-IV is a great option.
Compliance checks and scrutiny
CSB-IV comes with some strict regulations, but you don’t need to worry too much about them if you are being compliant. So, let’s take a quick look at them:
- You should not be exporting prohibited documents in any form, be it paper, card, or picture. For info on other prohibited goods or to know what’s allowed, refer to the Import, Export, and SCOMET Policy of the DGFT.
- Physical scrutiny might be performed on a certain percentage of your goods. The selection will be based on various factors like commodity type, value, weight, and importer status. For more details, refer to this circular.
Why choose CSB-IV?
There are three primary reasons behind this. Let’s look into them:
- A Smoother Ride: CSB-IV keeps things simple and hassle-free, saving you precious time compared to other shipping bills.
- Ideal for Lower Value Shipments: Great for low-value shipments (below INR 50,000) since there is not much strict scrutiny since you aren’t getting any incentive claims.
- Export Made Easy: With CSB-IV, exporting is a breeze, so you can spend less time on paperwork and more time scaling your business.
What is CSB-V?
CSB-V or Courier Shipping Bill-V is a commercial declaration made for products that exceed CSB-IV’s INR 50,000 limitation. The limit here is much higher, at INR 10 lakh. When the CSB-V is involved, your importers will know that they are dealing with a seasoned veteran of the export business.
The CSB-V is a bit more complicated than the CSB-IV, but it’s still manageable. Let’s start with…
Who is CSB-V made for?
If you are exporting goods from India for commercial purposes and the value of your goods does not exceed INR 10 lakhs, you need to use CSB-V. It doesn’t matter whether you are an individual, a business, or any other organization.
If your exports exceed INR 50,000, you must use CSB-V. It’s not an option. However, you can still use CSB-V for goods less than INR 50,000.
Why use CSB-V?
Alright, we told you that you need it. But what do you get out of it? There are a ton of benefits behind CSB-V. Let’s see what they are:
- Simplified and Hassle-Free: Gone are the days of drowning in complicated shipping paperwork. CSB-V streamlines the process, giving customs all the details they need to clear your shipment. This includes things like your GST details, IEC code, HSN code, and more. Less time on forms means more time growing your business.
- Save Time and Money: With CSB-V, you skip the maze of complex forms, clear shipments faster, and cut down on costs.
- Less Scrutiny: With CSB-V, your goods are put under relatively less scrutiny, allowing for faster shipping.
- Unlock Export Benefits: Planning to tap into export incentives like duty drawbacks, RoDTEP, and RoSTL? CSB-V has your back. It’s a must-have to claim these perks and make the most of your exports.
And if you didn’t read all of that, the gist of it is that CSB-V is an essential shipping document that is safe, fast, ensures compliance, and helps you claim export benefits.
Master CSB-IV & CSB-V for Seamless Shipping
CSB-IV vs CSB-V
| Feature/Aspect | CSB-IV | CSB-V |
|---|---|---|
| Purpose | Non-commercial/personal/low-value shipments | Commercial shipments |
| Value Limit | Up to INR 50,000 | Up to INR 10 lacs |
| Documentation | - | Detailed documentation with GST compliance |
| Usage | Personal or testing shipments | For established businesses in international shipping |
| Customs Requirements | Basic compliance and scrutiny | Detailed customs documentation and compliance |
| GST Data | Not required | Required (GSTR-3B/GSTR-1) |
| Applicable Locations | - | Major customs airports and land customs stations in India |
| Eligibility for schemes | - | Eligible for duty drawbacks, RoDTEP, and RoSTL |
What happens if you don’t file your CSB-V?
Not to scare you, but there are some serious repercussions if you don’t file your CSB-V. It’s all detailed in the Customs Act of 1962 and is used to deter businesses from exporting goods without complying with the relevant regulations.
In a nutshell, here’s what can happen:
- A fine of up to INR 50,000
- Imprisonment for up to two years
- Cancellation of your IEC number
To prevent that, file it, full stop.
Get To Know Your Export Necessities With Bluno
Yes, the CSB-IV and CSB-V are some of the most crucial documents when it comes to exporting from India. If you want to stay compliant and, in the case of the latter, extract some juicy export incentives, you must file them.
But they aren’t everything. Many other nuances are interwoven into India’s export scene. And that’s where we come in. Use Bluno to learn more about these intricacies. To protect yourself and avail yourself of more benefits from your exports, try Bluno now.
Streamline Your Shipping Process with Bluno’s Expertise
Frequently Asked Questions
What is the main purpose of CSB-IV?
CSB-IV is your go-to for sending non-commercial shipments under INR 50,000, like gifts or samples.
Who needs to issue a CSB-V?
If you’re exporting goods for business and their value is up to INR 10 lakh, CSB-V is your ticket. It’s essential for anyone shipping commercial products.
Can I use CSB-IV for commercial purposes?
Nope, CSB-IV is strictly for personal shipments. If it’s business-related, CSB-V is the way to go.
What documents are required for CSB-V?
You’ll need your GST details, IEC number, HSN code, and a breakdown of your goods, including their description, value, and shipping info.
How long does it take to process CSB-IV shipments?
The processing time for a CSB-IV shipment in India can vary depending on factors like the complexity of the goods, customs clearance procedures, and the efficiency of the courier service, but it typically takes a few days to a week for most standard shipments once the necessary documentation is submitted correctly.
What is the role of customs in CSB-V shipments?
Customs checks your documents and goods to ensure you’re playing by the rules. It’s their job to keep everything in line.
Is a GST refund applicable for CSB-V shipments?
Yes, as long as your GST returns are spot on, you can go with GST refunds.
What happens if my CSB-IV or CSB-V shipment is not compliant?
Non-compliance can mean delays, fines, or your shipment getting stuck in limbo. It’s always smarter to stay on the right side of the law.