Understanding What a Waybill Is and Its Use Cases

Did you know India's exports reached USD 778.21 billion in 2023-24? With such a massive flow of goods, the efficiency and accuracy of shipping documentation can make a huge difference in how smoothly your export business runs. Among the most important documents in the shipping process is the waybill, a simple but essential piece of paper (or digital file) that keeps shipments on track and compliant.

For Indian exporters, understanding what a waybill is and how to use it correctly can prevent costly delays and compliance issues. Whether you're new to international shipping or looking to refine your process, this blog will explain a waybill, how it differs from bills of lading, and highlight why the e-way bill is crucial for shipments within India.

What is a Waybill?

A waybill is a shipping document that outlines key information about a shipment, such as the sender, recipient, the items being shipped, and the transport terms. It acts as a receipt for the goods and outlines the conditions under which they will be transported. Unlike a bill of lading, which can transfer ownership of the goods, a waybill is typically non-negotiable.

When you send goods, whether by air, sea, rail, or road, a waybill helps to ensure that everyone involved in the shipment, carriers, customs authorities, and recipients, has the necessary information to track and handle the goods correctly.

With an understanding of what is a waybill, let's look at the practical applications of a waybill for businesses like yours.

Also Read: Important Documents Required for Export

Use Cases of a Waybill for Indian Exporters

A waybill serves multiple critical functions in international trade and logistics, ensuring smooth operations and compliance throughout the shipping process. For Indian exporters, understanding how and when to use a waybill can help prevent delays and costly issues. Here are the key purposes and real-world use cases of a waybill:

• Shipment Details and Tracking: It provides essential information like sender, recipient, and goods description, helping track shipments efficiently.
• Customs Clearance: The waybill helps customs verify shipment details, ensuring compliance with international regulations.
• Proof of Goods Receipt: Acts as proof that the carrier has taken possession of the goods for transport.
• Transport Contract: It outlines the agreed terms of transport, including delivery times, routes, and carrier responsibilities.
• Dispute Resolution: Used to resolve disputes related to damaged or lost goods by verifying transport terms.
• Legal Proof of Transportation: Serves as evidence in legal matters, confirming the shipment's terms.
• Simplifying Multi-Modal Transport: Consolidates documentation for shipments involving multiple transport modes, reducing complexity.

Now that you understand how waybills are used in exporting, it's time to explore the types that are commonly used in different shipping scenarios.

Also Read: Challenges and Solutions in Multimodal Logistics Transportation in India

Types of Waybills

There are different types of waybills depending on the mode of transport. Each one serves a specific purpose and is used for different shipping scenarios. Let's look at the most common types of waybills:

1. Air Waybill (AWB)

An Air Waybill is used for air freight shipments. It acts as a receipt for goods and outlines the terms of transportation. This document is non-negotiable, meaning it does not transfer ownership of the goods. An AWB is issued by the airline or air carrier and includes details such as the flight number, shipment route, and delivery information.

2. Sea Waybill

A Sea Waybill is used for shipments that travel by sea. It acts as both a receipt and a transportation contract, but unlike a Bill of Lading, it doesn't transfer ownership of the goods. A Sea Waybill simplifies the shipping process, eliminating the need for a paper document to be physically presented at the destination port.

3. Rail and Road Waybills

Rail and Road Waybills are used for goods transported by rail or road. These waybills provide similar information to those used in air and sea freight, detailing the shipment's origin, destination, and terms of carriage. They are typically used for domestic or inter-country shipments.

Each type of waybill ensures that the shipment moves smoothly and everyone knows their responsibilities. 

To avoid confusion, it's important to differentiate between waybills and bills of lading, which serve similar functions but have key differences.

Also Read: Role And Importance of AWB In International Shipping

Waybill vs. Bill of Lading

While both a waybill and a bill of lading (BOL) serve similar functions in the shipping process, there are key differences that set them apart. Understanding these differences is important for Indian exporters as it helps determine which document to use in various shipping scenarios.

When to Use a Waybill vs. Bill of Lading

• Use a Bill of Lading when you need to transfer ownership or need a negotiable document for international trade.
• Use a Waybill when you don't need to transfer ownership and the goods are transported by air, road, or rail.

While waybills and bills of lading are essential globally, Indian exporters must also be familiar with the e-way bill. Here's how to handle it.

Also Read: How To Make Bill Of Lading? Best Tips, Simple Guide

E-Way Bill for Indian Exporters

An e-way bill is an online document created on the GST portal that includes important information about the goods being shipped. It acts as proof that the goods being moved comply with GST regulations. For Indian exporters, this bill is mandatory for domestic transport of goods valued over ₹50,000 and helps authorities track shipments within India.

How to Generate an E-Way Bill for Exports

Generating an e-way bill for exports is a simple process, but it's important to ensure all details are accurate. Here's a step-by-step guide to help you create an e-way bill for your export shipments.

1. Log in to the GST Portal
   
   • Visit the official GST portal: https://www.gst.gov.in.
   • Log in using your GSTIN (Goods and Services Tax Identification Number) and credentials.

2. Go to the E-Way Bill Section
   
   • Go to Services > E-Way Bill > Generate E-Way Bill.

3. Select Transaction Sub-Type
   
   • Under "Transaction Type," select "Outward" (since exports are outward supplies).
   • Choose "Export" as the Transaction Sub-Type.

4. Enter Document Details
   
   • Document Type: Select "Tax Invoice" or "Tax Invoice (Exports)" from the dropdown.
   • Document Number: Enter the export invoice number linked to the shipment.
   • Document Date: Provide the invoice date.

5. Fill in Party Details
   
   • Bill From: Enter the exporter's name, GSTIN, and registered address (business location or warehouse).
   • Dispatch From: Provide the exact address where the goods are loaded (e.g., factory, warehouse).
   • Bill To (Foreign Buyer): Enter the overseas buyer's name and address. In the GSTIN field, input "URP" (Unregistered Person) since the buyer is outside India.

6. Enter ‘Ship To' Details
   
   • Pin Code: Enter 999999 (mandatory code for international destinations).
   • State: Select "Other Countries" from the dropdown.

7. Add Item Details
   
   • HSN Code: Provide the 6-8 digit Harmonized System Nomenclature Code for the goods.
   • Description: Briefly describe the goods (e.g., "Cotton Garments").
   • Quantity, Value, and Tax Rate: Enter the total quantity (e.g., 100 units). Declare the invoice value (ensure it matches the export invoice).
   • Tax Rate: 0% (exports are zero-rated under GST).

8. Provide Transportation Details
   
   • Mode of Transport: Select Road, Air, Ship, or Rail.
   • Vehicle Number: Mandatory for road transport (e.g., "MH01AB1234").
   • Transporter ID: If using a GST-registered transporter, enter their GSTIN or Transporter ID. If transporting goods yourself, select "Self" as the transporter.

9. Generate the E-Way Bill
   
   • Review all details for accuracy.
   • Click "Generate" to create the e-way bill.
   • A unique E-Way Bill Number (EBN) and QR code will be generated.

10. Download and Share
    
    • Download the e-way bill (PDF format).
    • Share it with the transporter, customs authorities, and other stakeholders.

Key Notes for Exporters

It's important to keep a few things in mind when generating e-way bills for exports. Following these guidelines will help ensure that your shipments move smoothly without any problems.

• Direct Export Exemption
  
  • No e-way bill is required if goods move directly from your premises to a port/airport/customs station for export.
  • If goods are transported to an intermediary location (e.g., a warehouse), an e-way bill is mandatory.

• Validity Period
  
  • For domestic legs (e.g., factory to port):
  • Up to 100 km: 1 day.
  • Every additional 100 km: +1 day (e.g., 250 km = 3 days).

• Penalties for Non-Compliance
  
  • Goods may be detained if transported without a valid e-way bill.
  • Fines: ₹10,000 or tax evaded (whichever is higher).

While generating e-way bills is a crucial part of exporting, Pazago can help simplify the entire documentation process.

Also Read: Navigating GST on Export of Services: A Practical Guide for Indian Businesses

Simplify Export Documentation With Pazago

Managing export documentation and logistics can be overwhelming for Indian exporters. Pazago simplifies this process by centralizing your waybills, e-way bills, and other essential export documents, ensuring everything is organized and easily accessible.

Pazago helps keep all your export documents, such as invoices, packing lists, and certificates of origin, in one place for easy access.

• Centralized Document Storage: Organize all essential documents in one location.
• Real-Time Collaboration: Share and approve documents with stakeholders like your team, freight forwarders, and customs agents.

Pazago goes beyond paperwork, improving every step of the export process:

• Cost-Effective Logistics: Find the most cost-efficient shipping routes.
• Real-Time Tracking: Monitor shipments and avoid delays.
• Simplified Payments: Manage payments and currency conversions easily.
• Quality Assurance: Schedule inspections to ensure compliance before shipping.

Pazago makes managing exports easier and more efficient, letting you focus on growing your business.

Conclusion

Managing waybills and e-way bills is essential for smooth and compliant shipping for Indian exporters. But what is a waybill? It's a key document that helps track your shipments and ensures they meet legal requirements, preventing delays and penalties. By using the right type of waybill and generating your e-way bill correctly, you can simplify your export process.

With Pazago, the entire process becomes much easier. Pazago helps you manage your export documentation efficiently, saving you time and ensuring compliance. Don't let complicated paperwork hold your export business back. Take the next step towards smoother, hassle-free shipping by using Pazago.

Ready to see how Pazago can improve your shipping process? Book a demo now and start simplifying your export documentation management!