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’.