CSB-4 vs CSB-5 in International Shipping: The Complete Guide for Indian Exporters

Introduction

International shipping is one of the fastest-growing segments for Indian businesses today. With the rise of global e-commerce platforms like Amazon Global Selling, Etsy, eBay, and Shopify, Indian exporters now have unprecedented access to customers across the world. But along with this opportunity comes the challenge of customs compliance.

One of the most important elements of customs clearance in India is the Courier Shipping Bill (CSB). If you are exporting goods through courier mode — whether it is a bulk commercial shipment or a small sample consignment — your shipment cannot legally leave the country without a CSB filed on ICEGATE (Indian Customs Electronic Gateway).

There are different types of CSBs under Indian customs law, but CSB-4 and CSB-5 are the most commonly used for outbound shipments. Unfortunately, many first-time exporters are confused about which one to choose. Some even face penalties because they filed the wrong type of CSB or under-declared shipment values.

In this guide, we’ll break down everything you need to know about CSB-4 and CSB-5, including:

• The purpose of courier shipping bills
  

• Detailed explanation of CSB-4 and CSB-5
  

• Documentation and eligibility criteria
  

• Step-by-step filing process
  

• Practical examples and case studies
  

• Common mistakes exporters make and how to avoid them
  

• Recent regulatory updates you should be aware of
  

By the end of this blog, you’ll have absolute clarity on when to use CSB-4 or CSB-5 and how to ensure your shipments clear customs without delay.

1. What is a Courier Shipping Bill (CSB)?

A Courier Shipping Bill (CSB) is the legal document that serves as an exporter’s declaration to Indian Customs when goods are sent abroad via courier. It is regulated under the Courier Imports and Exports (Clearance) Regulations, 1998 framed under the Customs Act, 1962.

Unlike the regular Shipping Bill used for sea freight and air cargo shipments, a CSB is designed to simplify the customs clearance process for small and medium-sized consignments sent through express couriers like DHL, FedEx, UPS, Aramex, DTDC, etc.

Indian Customs has classified different types of courier shipping bills as follows:

• CSB-I: For imports of dutiable goods

• CSB-II: For imports of free-of-duty goods

• CSB-III: For re-imports

• CSB-IV: For exports of free-of-duty goods (low-value, samples, gifts)

• CSB-V: For exports of dutiable goods or commercial consignments
  

For exporters, CSB-4 and CSB-5 are the categories you’ll be using most often.

2. CSB-4: Meaning, Applicability, and Purpose

CSB-4 is the courier shipping bill used when you are exporting duty-free goods of low value, usually for non-commercial purposes.

Who Should Use CSB-4

• Individual exporters sending gifts or personal effects abroad

• Businesses sending product samples to international buyers

• Startups shipping low-value trial orders before scaling up
  

Key Features of CSB-4

• Value Limit: Up to ₹25,000 per shipment

• Customs Duty: Exempted — no duty is levied

• Paperwork: Minimal documentation compared to commercial shipments

• Inspection: Only a small percentage of parcels undergo random inspection

• Incentives: Usually not eligible for duty drawback, GST refund, or export incentive schemes
  

When CSB-4 is Ideal

Let’s say you run a handicraft brand and want to send three free samples (worth ₹7,000 each) to a potential wholesale buyer in Germany. You can ship them under CSB-4 since:

• The total value is under ₹25,000

• The shipment is non-commercial

• You don’t need GST refund or RoDTEP benefits on this transaction

CSB-4 ensures your shipment clears customs faster without unnecessary compliance burden.

3. CSB-5: Meaning, Applicability, and Purpose

CSB-5 is the courier shipping bill used for commercial export shipments where the value is higher and GST/export incentives may apply.

Who Should Use CSB-5

• Registered exporters selling products on Amazon Global, Etsy, or their own D2C website

• Businesses shipping bulk commercial orders abroad

• Exporters who want to claim IGST refund or avail duty drawback/RoDTEP
  

Key Features of CSB-5

• Value Limit: Up to ₹5,00,000 per shipment

• Customs Duty: Zero duty for most goods (export is generally duty-free)

• Paperwork: IEC, GSTIN, HSN code mandatory

• Inspection: Higher scrutiny compared to CSB-4, especially if high-risk items

• Incentives: Eligible for GST refunds and export incentive schemes under Foreign Trade Policy
  

When CSB-5 is Ideal

Imagine you run an Ayurvedic supplements brand and receive a bulk order worth ₹1,50,000 from a US distributor. You should use CSB-5 because:

• The value exceeds ₹25,000

• You want to declare it as a commercial export

• You want to claim GST refund under LUT/IGST route

CSB-5 ensures compliance, enables benefits, and avoids regulatory issues later.

4. Detailed Documentation Requirements

Correct documentation is the backbone of smooth customs clearance.

CSB-4 Documentation

• Exporter’s KYC (PAN/Aadhaar)

• Invoice mentioning description, quantity, value, destination country

• Courier’s declaration form

CSB-5 Documentation

• IEC (Import Export Code)

• GST Registration Certificate

• Commercial Invoice with HSN codes

• Packing List (if multiple SKUs)

• LUT/Bond Details (if exporting without payment of IGST)

• Manifest Filing: Done electronically by the courier partner

Tip: Keep all documents consistent — invoice value, GST returns should match exactly. Discrepancies lead to refund delays.

5. Step-by-Step Filing Process

Whether CSB-4 or CSB-5, the process broadly follows these steps:

1. Prepare the Shipment

   • Pack goods securely and label correctly

   • Prepare invoice and required documents
     

2. Provide Documents to Courier

   • Share KYC, IEC, GST details, invoice, LUT if applicable
     

3. Courier Files CSB on ICEGATE

   • Data is submitted electronically

   • Shipping bill number is generated
     

4. Customs Clearance

   • Customs officer reviews data

   • Shipment may be flagged for inspection

   • Once cleared, Let Export Order (LEO) is issued
     

5. Dispatch & Tracking

   • Shipment is handed over to airline/cargo

   • Tracking number becomes active for end customer
     

6. Side-by-Side Comparison Table

Criteria	CSB-4	CSB-5
Maximum Value	Up to ₹25,000	Up to ₹5,00,000
Purpose	Gifts, samples, non-commercial shipments	Commercial exports
Documentation	Minimal	Detailed (IEC, GST, HSN mandatory)
Customs Duty	Exempt	Exempt (but GST compliance mandatory)
Inspection Rate	Very low	Higher scrutiny
Export Incentives	Not available	Eligible
GST Refund	Not available	Available via LUT/IGST

7. Real-World Case Studies

Case 1: Apparel Brand Sampling

A fashion startup sends five T-shirts worth ₹18,000 to an influencer in Canada for collaboration. Solution: Ship under CSB-4 (low-value, non-commercial).

Case 2: Amazon Global Bulk Export

An Amazon seller receives 40 orders combined into one bulk shipment worth ₹3,50,000 to the US FBA warehouse. Solution: Ship under CSB-5 (commercial export, IEC/GST required).

Case 3: Small-Batch E-Commerce Orders

A seller ships 50 candles in separate parcels, each worth ₹5,000, over the month. Solution: Each parcel qualifies for CSB-4, but if the seller wants to claim RoDTEP benefits, they can consolidate and use CSB-5.

8. Common Mistakes to Avoid

1. Under-Invoicing Declaring ₹25,000 when actual value is ₹50,000 — customs may seize shipment.
   

2. Wrong HSN Codes Leads to mismatch in GST return vs shipping bill, delaying refunds.
   

3. Mismatch in Data Invoice value ≠ Manifest value ≠ GST return — causes compliance issues.
   

4. Not Filing LUT Without LUT, IGST must be paid and refund claimed later — delaying cash flow.
   

5. Using CSB-4 for Regular Commercial Exports This is a compliance risk and may attract audit scrutiny.
   

9. Benefits of Choosing Correct CSB

• Faster Clearance: Reduces risk of shipment being held

• Compliance: Avoids penalties under Customs Act

• Financial Benefits: Ensures eligibility for GST refunds

• Customer Satisfaction: On-time delivery improves buyer experience
  

10. Recent Updates and Policy Changes

• MEIS Replaced by RoDTEP: Exporters using CSB-5 may claim RoDTEP benefits if eligible.

• Electronic Filing Mandatory: Paper-based CSB filing has been discontinued.

• Thresholds Under Review: Always confirm latest value limits from CBIC circulars before shipping.
  

11. FAQs

Q1: Can I use CSB-4 multiple times per day? Yes, as long as each consignment value is under ₹25,000.

Q2: What if my shipment value is ₹5,50,000?

You must file a regular shipping bill via CHA; CSB-5 limit is ₹5,00,000.

Q3: Do I need to pay IGST before export?

No, you can file LUT/Bond and export without paying IGST.

Q4: Can my courier file CSB-5 on my behalf?

Yes, most courier companies file electronically via ICEGATE.

12. Conclusion

Whether you are a first-time exporter or a seasoned seller, choosing between CSB-4 and CSB-5 is critical for smooth cross-border operations. CSB-4 is your go-to for low-value, non-commercial shipments like samples and gifts, while CSB-5 is ideal for commercial exports up to ₹5,00,000, where you also want to avail GST refunds and export incentives.

By preparing accurate documentation, staying updated with CBIC notifications, and working with a reliable logistics partner, you can ensure faster clearance, better compliance, and happier customers worldwide.