Every Indian business shipping internationally needs ten things in place: IEC code, AD code with the bank, commercial-invoice template with HS codes, packing-list SOP, carrier account or aggregator, landed-cost model that includes duty and brokerage, insurance policy above ₹15,000 declared value, customer-comms templates for tracking and delays, returns process for refused parcels, and a tracking dashboard. This international shipping checklist walks through each in setup priority — what to do first, what to scale into, and where most SMEs lose margin.
This article is part of our International Shipping from India: Complete Export Guide pillar.
Why international shipping is a growth lever, not a cost centre
India’s e-commerce export market crossed USD 2 billion in 2023 per DGFT data, with handicrafts, apparel, jewellery, ayurveda, and packaged food leading the surge. The buyers are the same: a US, UK, EU, UAE, or Australia consumer who pays a 2-3x premium for India-origin authenticity. The barrier most SMEs hit is not demand — it is operational. Documentation errors, wrong carrier choice, and surprise duty bills are what cause repeat-customer drop-off, not the product.
Built well, international shipping carries higher average order value than domestic, longer customer lifetime value, and lower returns rate. Built badly, it generates 8-15% customs hold rates and chargebacks that wipe a year of margin. The difference is process. Mumbai exporters — the largest port-gateway origin in CourierBook’s network — file the most international parcels, followed by Delhi NCR and Bengaluru.
The 10-item international shipping checklist
This is the order to build in. Each item depends on the one before it.
- IEC code from DGFT — 10-digit Import Export Code. Mandatory for commercial shipping. Apply at dgft.gov.in with PAN, Aadhaar, bank proof, and DSC. Fee ~₹500, approval 5-10 working days.
- AD code registration with your bank — required for filing shipping bills at ICEGATE and for FEMA compliance on inward remittance. One AD code per port of export.
- LUT (Letter of Undertaking) — file at the GST portal to ship under bond without paying IGST upfront on exports. Saves cashflow and the refund cycle. Renew annually.
- Carrier account or aggregator — for SMEs under 500 parcels/month per lane, an aggregator beats single-carrier rates. See H2 #4 below.
- Commercial-invoice template — fixed nine fields: exporter, consignee, invoice number, line-by-line description, HS code, country of origin, quantity, value, Incoterm.
- HS code library — your top 20 SKUs mapped to 8-10 digit HS codes once, used forever. Use ICEGATE plus the destination customs HS finder.
- Packing SOP — box-in-a-box, ISPM-15 stamps for wood, anti-tarnish for metal, vacuum-pack for textiles to cut volumetric weight.
- Insurance policy — declared-value insurance above ₹15,000. Costs 1-2% of value, covers transit loss and damage.
- Customer comms templates — pre-shipment, in-transit milestone, customs hold, delivered. Cuts support tickets and chargebacks.
- Tracking dashboard + returns process — one screen across all carriers, plus a written policy for refused or undelivered parcels.
Documentation foundations (items 1-3 and 5)
The first three items in the checklist are India-side regulatory — you cannot legally ship commercial volume without them. The fifth (commercial invoice) is customs-side and travels with every parcel.
IEC, AD code, LUT — the trio that gates everything. Apply for IEC first; the others depend on it. AD code is a one-time bank registration per port code; if you ship from multiple ports, register at each. LUT is annual and saves you the IGST refund cycle if you’re exempt under GST rules. See Export Documentation Simplified Guide for the step-by-step.
Commercial invoice nine fields: exporter (name, address, IEC, GSTIN), consignee (name, address, EORI/tax-ID, phone), unique invoice number and date, line-by-line product description (“hand-painted wooden box, 20 x 15 x 10 cm” not “decorative item”), HS code (6-digit minimum), country of origin, quantity and unit, unit and total value in transaction currency, and Incoterm (DDP, DAP, FOB, CIF). Skip the description or the HS code and you guarantee a hold. For the deeper walkthrough including packing list and AWB integration, see Customs Documentation Made Simple.
HS code accuracy is where most documentation errors hide. The same product can map to different HS codes depending on material and finished-versus-component status. Build the library once for your top 20 SKUs, store it in your order-management system, and pull it into every invoice automatically.
Carrier strategy: single carrier vs aggregator (item 4)
Three carrier models cover almost every Indian SME.
Aggregator (recommended below ~500 parcels/month per lane) — one platform compares live rates across DHL Express, FedEx, Aramex, UPS, Skynet, and economy partners; pickup is bundled; documentation is auto-generated. You get carrier diversity without negotiating five contracts. CourierBook is built for this tier.
Single-carrier direct contract (volume gate ~500 parcels/month/lane) — once volume justifies, negotiating directly with the strongest carrier on a specific lane (DHL into US, Aramex into UK/UAE, FedEx into Asia) can shave 12-20% off list rates. Lose carrier-redundancy..
Multi-carrier strategy (recommended above 1,000 parcels/month) — primary carrier for 70-80% of shipments, secondary for peak-season overflow, specialised carrier for specific destinations or commodity types. For carrier-by-carrier comparison on India outbound, see Best International Courier Services from India.
Match the carrier to the lane. DHL and FedEx are the network leaders into US and EU but premium-priced; Aramex is the price-performance leader into UK and Middle East; economy services like Skynet and DTDC International work for low-value, time-flexible parcels.
Costing your shipments: landed cost (items 5, 8)
Landed cost is the only number that matters. Quote freight only and you bleed margin on duty and brokerage that you forgot to recover.
Landed cost = product cost + packing + chargeable-weight freight + duty + tax + insurance + brokerage + last-mile + margin.
Each component:
- Chargeable weight = max(actual weight, volumetric weight). Volumetric = (L × W × H in cm) / 5000. A 30×25×15 cm box weighing 800g charges as 2.25 kg.
- Freight = base rate + fuel surcharge (15-25%, weekly variable) + remote-area surcharge if applicable (₹500-1,500).
- Duty = depends on HS code and declared value above destination de minimis. See Calculate duty and taxes for the per-country breakdown.
- Tax = VAT/GST in destination (UK 20%, EU 19-25%, AUS 10%, UAE 5%, USA generally none on imports below USD 800).
- Insurance = 1-2% of declared value, recommended above ₹15,000.
- Brokerage = ₹500-2,500 per shipment if not bundled. Always confirm with the carrier.
- Last-mile = often bundled but charged extra for residential rural deliveries.
Incoterm choice drives who pays what. DDP (sender pays everything) is best for B2C e-commerce — surprise duty bills cause refunds and chargebacks. DDU/DAP (recipient pays duty and clearance) is best for B2B where the buyer has a broker. For the parcel-level cost breakdown including hidden brokerage, see Hidden Fees in International Door-to-Door Shipping.
Most SMEs underprice international by 8-12% because they forget brokerage or fuel surcharge in the landed-cost model. Build the model in a spreadsheet and update fuel surcharge monthly.
Customer experience: delivery promises, tracking, returns (items 9-10)
Three customer-comms moments determine repeat-purchase rate.
Pre-shipment: confirm the recipient’s full address, phone, and EORI/tax-ID if commercial. Send tracking number within 24 hours of pickup. Tell the customer the customs window (1-7 days depending on destination) so the inevitable warehouse status is not a surprise.
In-transit: ping at three milestones — departed origin, customs cleared, out for delivery. A simple webhook from the carrier into your CRM does this without manual work. Customs holds are the single biggest support-ticket trigger; pre-empt them.
Post-delivery: confirm successful delivery, ask for feedback, and surface the next purchase. International customers churn faster than domestic — the second purchase is where lifetime value lives.
Returns process — refused or undelivered international parcels are 5-10x more expensive to return than to abandon. Decide your policy in advance: abandon below a certain declared value, return above. Some carriers offer free-return programs for an upfront fee; cheaper than ad-hoc returns.
Compliance gotchas (item 5 plus country-specific docs)
The five mistakes that cost SMEs the most margin:
- Under-declaring value to dodge duty. Customs flags repeat under-declarations; seizure plus penalty plus an IEC flag costs far more than the duty saved.
- Vague product descriptions. “Decorative item” or “general merchandise” guarantees manual inspection.
- Wrong HS code. Triggers duty reassessment and fines.
- Missing country-specific docs. No FDA for US-bound supplements, no CE for EU electronics, no Halal for UAE food, no TGA for Australia therapeutics, no EORI for UK/EU commercial. Each guarantees rejection.
- Wooden packaging without ISPM-15. Australia rejects the entire shipment.
Build a destination checklist per country before you ship there for the first time. See country-specific requirements for the master compliance table covering USA, UK, EU, Australia, UAE, Canada, Singapore, and Japan.
Scaling: when to move from per-shipment to contract rates
Three triggers indicate you have outgrown per-shipment pricing.
Volume: when you cross 300-500 parcels/month on a single lane, list rates leave 12-20% savings on the table..
Mix complexity: when you ship 5+ destinations with different commodity types, a single-carrier contract cannot cover all lanes optimally. Multi-carrier strategy via an aggregator scales better.
Frequency: daily pickups justify a dedicated pickup slot and a named account manager — friction-reducing benefits that often outweigh the rate negotiation itself.
Operations: once you hire a dedicated logistics manager, contract-rate carrier mix plus API integration replaces booking-by-booking comparison.
For most Indian SMEs the right order is: months 1-6 use an aggregator, months 6-12 build internal volume and a landed-cost model, year 2 onward negotiate per-lane contracts on the top 2-3 destinations and keep the aggregator for the long tail.
Frequently Asked Questions
What documents does a business need for international shipping from India?
Every commercial international shipment from India needs an IEC code, a commercial invoice with HS codes, a packing list, and an air waybill. Add an AD code with your bank for FEMA compliance, a Letter of Undertaking (LUT) to ship under GST without paying IGST upfront, and country-specific extras like EORI for UK/EU, FDA for US food and cosmetics, or Halal for UAE food.
How much does it cost to ship a B2B parcel from India to the USA?
For a 5 kg chargeable-weight B2B parcel from India to the USA, express services typically cost ₹5,500-7,500 (3-5 days) and economy services ₹3,500-5,000 (7-12 days). Add duty if declared value is above USD 800 commercial, plus fuel surcharge of 15-25% and brokerage if not bundled. Volumetric weight, destination zip, and contract rates change the final number significantly.
Should my business work with a single carrier or use a multi-carrier aggregator?
Use an aggregator until your monthly volume passes 300-500 parcels per lane, then start negotiating a direct contract with the strongest carrier on that lane. Below that volume, no single carrier will offer meaningful discount, and you lose carrier-redundancy. An aggregator like CourierBook compares live rates across DHL, FedEx, Aramex, and others in one search.
What is the difference between DDU and DDP for B2B international shipments?
DDP (Delivered Duty Paid) means the sender pays freight, duty, and tax to the recipient’s door — best for e-commerce retail. DDU or DAP (Delivered At Place) means the recipient pays duty and clearance — best for B2B where the buyer has a customs broker. DDU is cheaper for the sender but causes more delivery friction if the buyer is unprepared.
How do I get an IEC code for my business?
Apply at dgft.gov.in with your PAN, Aadhaar, current bank account proof, and a digital signature certificate. Fee is around ₹500. Approval usually takes 5-10 working days. The IEC is a 10-digit number, valid for life, and required for any commercial import or export from India. One IEC per legal entity. There is no annual renewal.
Set up a business shipping account
Ten items, built in the order above, turn international shipping from a per-parcel scramble into a repeatable workflow that scales from your first US shipment to your thousandth. Set up a business shipping account to compare live rates, auto-generate documentation, and route pickups across DHL, FedEx, Aramex, and others from one screen.