When your export stops moving
You handed the parcel to the courier. Tracking showed movement through the gateway airport. Then the updates stopped — or your buyer says customs is asking for documents you were never told about. This page diagnoses every major cause.
Wrong or Missing HS Code on the Shipping Bill
The HS code is the 8-digit number that identifies your product for customs purposes worldwide. It determines the duty rate your buyer must pay, whether your goods need a special permit or license, whether they fall into a restricted category, and whether you are eligible for certain export incentive schemes in India.
When the HS code on your commercial invoice does not match the code on the CSB-V, or when the code is incorrectly assigned for your product category, Indian customs may flag the shipment at origin, or — more commonly — the destination customs authority will flag it because the declared code does not match the actual product or the applicable duty rate appears implausible.
Common HS Code Mistakes
- Copying the HS code from a supplier's invoice without verifying it against the Indian Customs Tariff Act 1975
- Using a six-digit international HS code instead of the mandatory eight-digit code required on Indian shipping bills
- Using the same code for a composite or bundled product that should be classified under a different heading
- Ignoring updated CBIC notifications that change duty rates or classification rules for specific product categories
- Misclassifying accessories shipped with a main product as separate goods instead of composite goods
Before every export, verify your HS code against the Indian Customs Tariff, the CBIC website, and the importing country's customs tariff schedule. If you are unsure, consult a licensed Customs House Agent before booking the shipment.
Invoice and Packing List Mismatch
Indian customs requires that the commercial invoice, packing list, and shipping bill all describe the same goods in the same quantities with the same values. A mismatch between any two of these documents is one of the most consistently cited causes of customs holds for Indian exporters. These errors often occur because different people in the export team prepare different documents, or because templates are reused without updating product-specific details.
Typical Mismatches That Trigger Holds
- Invoice shows 500 units, packing list shows 480 units — shipment held pending explanation
- Invoice describes "cotton kurta" but packing list describes "ethnic wear" — flagged as inconsistent description
- Invoice value is in USD but packing list mentions a different conversion rate — triggers valuation query
- Invoice lists gross weight as 12 kg but air waybill shows 14 kg — customs queries the discrepancy
Create a single-source document preparation system where the commercial invoice is prepared first and all other documents — packing list, shipping bill, and declaration — are generated from the same data. Before submitting anything to the courier, cross-check every figure and description across all documents.
Missing or Invalid IEC or GSTIN
For any commercial export from India involving foreign exchange, the exporter's IEC issued by DGFT and GSTIN issued under GST registration are mandatory on the shipping bill and commercial invoice. If either is missing, incorrect, or listed for the wrong entity, the CSB-V cannot be filed correctly and the export clearance will fail.
Common Scenarios
- A new exporter has applied for IEC but the code has not yet been activated on ICEGATE
- A GST-registered business has changed its legal name or address but not updated the IEC registration accordingly
- A business files exports under its trade name rather than its legal name, creating a mismatch
- An exporter exports goods through a third-party courier account without linking the IEC correctly
Before your first export, register your IEC on ICEGATE and map it to your AD Code bank account. Verify that your IEC and GSTIN are active, correctly linked, and that the legal name on both registrations matches exactly what appears on your commercial invoice.
LUT Not Filed or Expired — IGST Implications
The Letter of Undertaking is a declaration filed by GST-registered exporters on the GST portal each financial year, affirming that they will export goods without payment of IGST. When an LUT is not filed or has expired, the exporter loses the zero-rating benefit and must either pay IGST on the exported goods and claim a refund later, or provide a bond with the tax authority.
Many first-time exporters and small MSMEs are unaware that LUT must be renewed every year and that it must be filed before the first export of the year, not after. A shipment filed under CSB-V without a valid LUT may face a compliance query that holds the shipping bill or delays the foreign exchange remittance cycle.
File your LUT on the GST portal at the beginning of every financial year, typically in April, before making any export. Keep a copy of the LUT reference number and link it to your export records.
Courier Shipping Bill Selection Error — CSB-IV vs CSB-V
India uses different Courier Shipping Bill formats for different types of exports. Selecting the wrong form is a commonly overlooked reason for customs complications.
- CSB-III is for documents only. If you accidentally file a goods shipment as a document shipment, the goods will be held for reclassification.
- CSB-IV is for gifts, personal exports, and samples where no foreign exchange is involved and no export incentives are being claimed. It does not require IEC.
- CSB-V (Form HA) is for all commercial exports involving foreign exchange and for goods where the exporter is claiming benefits under export promotion schemes. It requires IEC and GSTIN.
The most common mistake is filing a commercial export under CSB-IV to avoid documentation requirements — particularly when the exporter does not have IEC or has not filed an LUT. This is technically a misdeclaration and can result in goods being held, penalties being issued, and the loss of any entitlement to export incentives. From April 2026, the removal of the Rs. 10 lakh value cap means CSB-V is now the correct form for all high-value commercial courier exports.
Confirm with your Authorised Courier which CSB form applies to your shipment before handing over the goods. As a rule of thumb, if you are selling the goods commercially and receiving foreign exchange, the form is CSB-V and IEC is mandatory.
Destination Customs Rejection — Restricted or Prohibited Goods
Even when an Indian exporter's documentation is perfect at the India end, the shipment can be held or rejected at the destination country because the goods fall into a restricted or prohibited category under that country's import rules. This is especially common for: Ayurvedic medicines and supplements, organic food products, cosmetics containing plant-based or herbal ingredients, spices and food items subject to biosecurity checks, textiles with specific dyes or chemicals, and handcrafted goods made from materials subject to CITES or wildlife protection regulations.
Destination-Specific Restriction Authorities
- United States: FDA controls food and pharmaceutical imports; CBP enforces trade compliance
- European Union: EU REACH regulations affect herbal and cosmetic products; CE marking required for certain goods
- Australia: Department of Agriculture controls biological materials and food under strict biosecurity rules
- United Arab Emirates: Restricts certain cosmetics, food, and medicines — check DM and MOHAP lists
Before shipping to a new market for the first time, research the destination country's import restrictions for your specific product category. Check whether your product requires an import license, food safety registration, pharmaceutical approval, or any other permit. Provide this information to your courier in advance so they can flag any compliance gaps before the shipment departs India.
Consignee KYC and Identity Issues at Destination
Many destination countries require the importer (your buyer) to have certain registrations or to provide identity documents before customs will release the goods. In India itself, incoming courier consignments require KYC verification from the receiver before the courier can deliver goods. For B2B exports, this often means the buyer must have a local business registration or import license equivalent.
Common Buyer-Side Problems
- Buyer cannot provide the import permit or registration required by their country for the product category
- Buyer has provided an incorrect or incomplete name or address that does not match their identity documents
- Buyer is unwilling or unable to act as the formal importer of record in their country — a problem for higher-duty or higher-value shipments
When selling to buyers in new markets, confirm in advance whether they have any import restrictions or registration requirements for your product type. For B2C exports, work with a courier partner that has experience handling DDP (Delivered Duty Paid) shipments, which removes the burden of customs formalities from the buyer entirely.
Return to Origin Scenarios — What Now?
Under India's 2026 reforms, imported courier consignments that are uncleared for more than 15 days at an Indian courier terminal can now be returned to origin through a simplified procedure. For Indian exporters, the reverse situation is also possible: a shipment you sent internationally may be returned to India because it was uncleared, rejected, or refused by the buyer.
When a returned shipment arrives back in India, the exporter needs to go through a re-import process. Under the revised risk-based framework introduced in April 2026, returned and rejected e-commerce goods can be re-imported without consignment-wise physical examination in most cases, subject to risk profiling. A dedicated return module in ECCS has been created to process such returns more efficiently.
Keep all original export documents — commercial invoice, CSB-V, shipping bill, and airway bill — because they will be required to re-import returned goods. Contact your Authorised Courier as soon as you receive a return notification and initiate the re-import process through the ECCS return module without delay.
Know the cause — now take action
Once you've identified the reason your shipment is stuck, follow the step-by-step release playbook. Go to How to Get Your Shipment Released →