Selling to customers in the USA, UK, UAE, Europe or Australia can grow your business quickly, but the moment money changes hands, your parcel becomes a commercial shipment. That changes the rules. You need the right registrations, accurate export documents, a correct product classification and a clear agreement on who pays duties at the destination.
This guide explains how to ship commercial goods from India step by step, in simple language. It covers what you need before your first export, the documents customs will ask for, how to choose between courier, air freight and sea freight, and the 2026 rule changes that affect Indian exporters.
Quick answer: To ship commercial goods from India, (1) get an Importer Exporter Code (IEC), GST registration and a Letter of Undertaking (LUT); (2) check that your product is allowed in the destination country and find its HS code; (3) agree the trade term (such as DAP or DDP) with your buyer; (4) prepare a commercial invoice, packing list and shipping bill; (5) pack and label the goods; (6) clear export customs in India through your courier or freight forwarder; and (7) track the shipment until import customs clearance and delivery are complete.
What Counts as a Commercial Shipment?
A shipment is commercial when the goods are being sold, will be resold, or are sent for business purposes. Product orders from your website, wholesale consignments, marketplace orders (Amazon, Etsy, eBay), B2B supplies and paid samples are all commercial. A birthday present to a relative is personal.
The difference matters because commercial shipments are processed with full export documentation, can earn export benefits such as GST refunds, and are charged import duty and taxes at the destination based on their declared value.
This guide focuses on export registrations, documents and compliance for businesses. If you mainly sell to individual online shoppers, also read our guide on how to ship e-commerce products internationally.
| Point | Commercial shipment | Personal / gift shipment |
|---|---|---|
| Purpose | Sale, resale or business use | Gift or personal use, no payment |
| IEC required | Yes | Usually no |
| Courier shipping bill | CSB-V (commercial) | CSB-IV (gifts and samples) |
| Invoice | Commercial invoice with sale value | Proforma or gift declaration |
| Export benefits | Eligible for GST/IGST refund and schemes like RoDTEP, subject to conditions | Not eligible |
Important: never label a sale as a gift to avoid duty. Customs authorities check declared values and descriptions, and mis-declaration can lead to seizure, penalties and delays.
Step 1: Get Your Export Registrations in Place
Before you ship commercial goods from India, make sure these basics are ready:
- Importer Exporter Code (IEC): A 10-digit code issued by the Directorate General of Foreign Trade (DGFT), linked to your PAN. It is mandatory for commercial exports. Remember to update your IEC details on the DGFT portal every year, otherwise it can be deactivated.
- GST registration: Exports are treated as zero-rated supplies under GST.
- Letter of Undertaking (LUT): File an LUT on the GST portal (Form RFD-11) at the start of each financial year so you can export without paying IGST upfront. Without an LUT, you pay IGST and claim a refund later.
- AD code: Register your bank’s Authorised Dealer code with customs at the port or courier terminal you export from. It links your shipments to your foreign payments.
- RCMC (optional but useful): A Registration-cum-Membership Certificate from the relevant Export Promotion Council can be required for certain benefits.
Step 2: Check Product and Destination Rules
Not every product can be exported freely, and not every country accepts every product. Check both sides before you accept an order:
- Indian export policy: Some items are restricted or need a licence under India’s export policy (ITC-HS).
- Carrier restrictions: Couriers and airlines have their own lists of prohibited and restricted items. Check them before packing.
- Destination import rules: Food, cosmetics, medicines, chemicals, electronics with batteries and plant or animal products often need extra paperwork, labelling or registrations in the importing country.
- Dangerous goods: Lithium batteries, perfumes, aerosols and many chemicals are classified as dangerous goods for air transport and must be declared and packed under special rules.
Step 3: Find the Correct HS Code
The Harmonized System (HS) code classifies your product for customs worldwide. The first six digits are internationally common; India uses an 8-digit ITC-HS code for exports, while importing countries use their own longer codes.
The HS code decides the import duty your buyer (or you) will pay, whether a licence is needed, and whether a free trade agreement rate applies. A wrong code is one of the most common causes of customs queries. If you are unsure, ask your logistics partner or a customs broker before you ship.
Step 4: Agree the Trade Terms (Incoterms) With Your Buyer
Incoterms® 2020 rules define who pays for freight, insurance, export clearance, import clearance and duties, and where the risk passes from seller to buyer. For overseas customers, the two most important choices are:
- DAP (Delivered at Place), often still called DDU: You deliver the goods to the buyer’s address, but the buyer pays import duties and taxes.
- DDP (Delivered Duty Paid): You deliver the goods to the buyer’s address with all duties and taxes already paid.
For a detailed comparison, read our guide on DDP vs DDU shipping for Indian exporters. Write the agreed term on your quotation and commercial invoice, for example “DAP New Jersey, Incoterms® 2020”.
Step 5: Choose the Right Shipping Mode
The right mode depends on weight, value, urgency and the buyer’s expectations.
| Mode | Best for | Typical transit | Cost level |
|---|---|---|---|
| International express courier | Samples, e-commerce orders, small B2B parcels, urgent goods | Fastest door-to-door option, usually a few working days | Highest per kg |
| Air freight cargo | Larger or heavier consignments that still need speed | Days, plus clearance and delivery time | Medium; rate per kg falls as weight rises |
| Sea freight (LCL or FCL) | Bulk, heavy, low-urgency goods | Weeks | Lowest per kg |
Good news for small exporters: from 1 April 2026, the Central Board of Indirect Taxes and Customs (CBIC) removed the earlier ₹10 lakh value cap per consignment for commercial exports through courier. Higher-value orders can now move through the faster courier channel instead of being pushed to cargo. If you are still deciding, compare the options in our guide to international courier vs air freight.
Step 6: Prepare Your Export Documents
Accurate paperwork is what gets commercial goods through customs on time. Most shipments need:
- Commercial invoice: Seller and buyer details, invoice number and date, product description, HS code, quantity, unit price, total value, currency, Incoterm, country of origin, and your IEC and GSTIN. Mention “Supply meant for export under LUT without payment of IGST” if you use an LUT.
- Packing list: Number of boxes, contents of each box, net and gross weight, and dimensions.
- Shipping bill: Filed electronically. For courier exports, your courier files a CSB-V (Courier Shipping Bill V) for commercial goods; for cargo, your customs broker files the shipping bill on ICEGATE.
- Air Waybill (AWB) or Bill of Lading (B/L): Issued by the carrier as the transport contract and tracking reference.
- Certificate of Origin: Needed when the buyer wants to claim a lower duty under a trade agreement, or when the destination requires it.
- KYC documents: Usually PAN, GST certificate and IEC copy for your courier or forwarder.
- Product-specific documents: For example an MSDS for chemicals, a dangerous goods declaration for batteries, or health certificates for food.
Make sure the description, quantity, value and weight match across every document. Mismatches are a leading reason for customs holds.
Step 7: Pack and Label for International Transit
Commercial goods pass through multiple hubs, conveyors and aircraft. Use strong corrugated boxes, cushion every item, seal with good-quality tape and remove old labels. Put the shipping label on the largest flat surface and attach documents in a clear pouch.
Keep boxes as small as safely possible. Couriers charge on the higher of actual weight and volumetric weight (length × width × height in cm divided by 5,000 for most courier services), so oversized boxes cost more.
Step 8: Clear Export Customs in India
Once your shipment is booked, your courier or customs broker files the shipping bill with Indian Customs. Customs checks the documents, may inspect the goods based on risk, and then grants a Let Export Order (LEO). Only after LEO can the goods be loaded on a flight or vessel.
Courier exports are processed through the Express Cargo Clearance System (ECCS) under CSB-V, which is usually quick when documents are correct.
Step 9: Plan for Import Clearance at the Destination
Your goods must also clear customs in the buyer’s country. Import duty, VAT or sales tax and clearance fees are paid by either the buyer (DAP/DDU) or you (DDP). Several major markets changed their rules for low-value parcels recently:
| Market | What changed | What it means for you |
|---|---|---|
| USA | Duty-free de minimis treatment for shipments up to $800 has been suspended for all countries since 29 August 2025, and US Customs made the suspension indefinite in June 2026. | Every US-bound commercial parcel can attract duty and needs proper customs entry data. Quote landed costs carefully. |
| European Union | From 1 July 2026, a flat €3 customs duty applies to items in low-value B2C parcels (€150 or less), on top of VAT. | Provide accurate HS codes and product data for every line item. |
| United Kingdom | The UK has announced it will remove duty relief on imports of £135 or less, by October 2028 at the latest. | Plan for duty on UK B2C orders in the next two years. |
Duty rates and tariffs can change quickly, so check the current rate for your HS code before quoting a price.
Step 10: Track, Deliver and Close the Paperwork
Share the tracking number with your customer and watch for customs holds. After delivery, your work is not over:
- Realise the export payment through your bank and make sure it is linked to the shipping bill in the RBI’s EDPMS system.
- Report the export in your GST returns as a zero-rated supply.
- Claim benefits where eligible, such as IGST refunds, duty drawback or RoDTEP. The RoDTEP scheme is currently extended until 31 December 2026; check the DGFT website for the latest notification.
If a shipment is refused or not cleared abroad, India’s 2026 courier reforms also simplified the return-to-origin and re-import process for e-commerce exports.
Common Mistakes When Exporting Commercial Goods
- Shipping commercial goods as “gift” or “sample” to avoid duty
- Using a vague description like “clothes” instead of “women’s cotton kurtas, knitted”
- Wrong or missing HS codes
- Invoice value, weight or quantity not matching the packing list
- Forgetting the LUT, which forces you to pay IGST upfront
- Not telling the buyer who pays import duty
- Ignoring dangerous goods rules for batteries, perfumes or chemicals
- Using oversized boxes that increase volumetric weight
Pre-Shipment Checklist
- IEC active and updated
- GST registration and current-year LUT filed
- AD code registered
- Product allowed for export and import
- Correct HS code on all documents
- Incoterm agreed in writing
- Commercial invoice and packing list match
- Goods packed, weighed and measured
- Labels and document pouch attached
- Tracking shared with the buyer
Ship Commercial Goods from India with Overseas Air Freight
Exporting is much easier when one partner handles booking, documentation, packing advice and customs coordination. Overseas Air Freight helps businesses in Mumbai and across India send commercial shipments worldwide through our international courier service in Mumbai, air freight and cargo services.
Planning your next export order? Contact our team with the product, weight, dimensions and destination for a shipping quote.
Frequently Asked Questions
1. Do I need an IEC to ship commercial goods from India?
Yes. An Importer Exporter Code (IEC) from DGFT is mandatory for commercial exports from India. Without it, your courier or customs broker cannot file a commercial shipping bill, and you cannot receive export payments as a business. Personal gifts usually do not need an IEC.
2. What documents are required to export goods from India?
Most commercial exports need a commercial invoice, packing list, shipping bill (CSB-V for courier), air waybill or bill of lading, and KYC documents. Depending on the product and country, you may also need a certificate of origin, licences, MSDS or a dangerous goods declaration.
3. What is the difference between CSB-IV and CSB-V?
Both are courier shipping bills. CSB-IV is used for gifts and samples that are not sold. CSB-V is used for commercial courier exports and links the shipment to your IEC, GST and bank details, making it eligible for GST refunds and export benefits.
4. Is there a value limit for courier exports from India in 2026?
No. From 1 April 2026, CBIC removed the earlier ₹10 lakh value cap per consignment for commercial exports through courier. Higher-value commercial shipments can now be sent by courier, subject to the normal customs and carrier rules.
5. Do I have to pay GST on exports?
Exports are zero-rated under GST. If you file a Letter of Undertaking (LUT), you can export without paying IGST. Without an LUT, you pay IGST at the time of export and claim a refund later, which blocks your working capital.
6. Who pays import duty when I ship to an overseas customer?
It depends on the Incoterm you agree. Under DAP (often called DDU), the buyer pays import duty and taxes. Under DDP, you as the seller pay them. Always state the Incoterm on your quotation and invoice so the buyer is not surprised.
7. Are shipments to the USA under $800 still duty-free?
No. The US suspended duty-free de minimis treatment for all countries from 29 August 2025, and US Customs made the suspension indefinite in June 2026. Commercial parcels from India to the USA can attract duty regardless of value.
8. Should I use courier, air freight or sea freight?
Use express courier for samples, e-commerce orders and urgent small shipments. Use air freight for larger consignments that still need speed. Use sea freight for heavy or bulk goods when time is less critical. Your weight, value and deadline decide the best option.
9. How long does export customs clearance take in India?
When documents are correct, courier export clearance through the Express Cargo Clearance System is usually quick, often the same or next working day. Cargo shipments may take longer. Missing or mismatched documents, inspections and restricted products can add delays.
10. Can I ship commercial goods from Mumbai without visiting the airport?
Yes. A logistics partner such as Overseas Air Freight can arrange pickup from your premises in Mumbai, help with documents, file the shipping bill through an authorised channel and manage export clearance, so you do not need to visit the airport yourself.