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Transcript of PROJECT REPORT ABHI.
PROJECT REPORT ON EXPORT PROCEDURE AND DOCUMENTATION
2015-17
MBA ( INTERNATIONAL BUSINESS)
SUBMITTED TO : SUBMITTED BY:
ABHILASH HALDKr
Acknowledgement
Every project big or small is successful largely due to the effort of a number of wonderful people who have always given their valuable advice or lent a helping hand. I sincerely appreciate the inspiration; support and guidance of all those people who have been instrumental in making this project a success.
I, ABHILASH HALDKAR, the student of SCHOOL OF ECONOMICS (MBA IB), am extremely grateful to “Dr. GANESH KAWADIA” for the confidence bestowed in me and entrusting my project entitled “IMPORT-EXPORT PROCEDURE & DOCUMENTATION” with special reference to MOVAR LOGISTIC PVT. LTD.
At this juncture I feel deeply honoured in expressing my sincere thanks to RAHUL RAGHVAN for making the resources available at right time and providing valuable insights leading to the successful completion of my project.
I would also like to thank all the faculty members of SOE DAVV INDORE for their critical advice and guidance without which this project would not have been possible. Last but not the least I place a deep sense of gratitude to my family members and my friends who have been constant source of inspiration during the preparation of this project work.
DATE – NAME – ABHILASH HALDKAR
PLACE –
DECLARATION
I, ABHILASH HALDKAR, hereby declare that the presented report of internship titled “EXPORT-IMPORT PROCEDURE AND DOCUMENTATION” from MOVAR LOGISTICS PVT. LTD” is uniquely prepared by me after the completion of one month work at Indore Head Branch.
I also confirm that, the report is only prepared for my academic requirement not for any other purpose. It might not be used with the interest of opposite party of the corporation.
…………………………….
ABHILASH HALDKAR ROLL NO. 15205 MBA IB
SOE DAVV INDORE M.P
COMPANY CERTIFICATE
TABLE OF CONTENT
ACKKNOLEDGEMENT ……………………………………. 2
DECLARATION ………………………………………………3
COMPANY CERTIFICATE ………………………………….4
EXECUTIVE SUMMARY…………………………………….7
INTRODUCTION……………………………………………...8
MAJOR LEARNING…………………………………………..12
MISCELLANEOUS LEARNING……………………………..40
SWOT ANALYSIS ……………………………………………..41
REFRENCES……………………………………………………42
DOCUMENTS …………………………………………………..43
EXECUTIVE SUMMARY
The Next Generation Internship Opportunity instituted by the MOVAR LOGISTICS PVT LTD aims at developing the skills of young Indian to contribute to the development of the International Trade. The executive summary gives an overview of my one month internship which includes the activities and experiences. Below is a summary of my experience.
During my one month internship in MOVAR LOGISTICS, I worked with the Capacity Building and IMPORT-EXPORT Documentation Units. I also assisted in organising and coordinating activities for the Institute, (Learn about the customized air/SEA cargo solutions for importers and exporters’ supply chain.
Preparation of challan of the consignment.
Knowledge of custom clearance procedures.
Preparation of documents related to custom clearance at Airport AND Ports.
Preparing reports.)
Reflecting on my experience at MOVAR LOGISTICS, the internship programme has made immeasurable impacts in my aptitude in varied fields such as: Team work, Document preparation, Organisational and intercultural competence and Coordination. The internship programme has broadened my knowledge base, which was made possible through my participation in the various department works and my interaction with the department staff.
It has been a wonderful experience in MOVAR LOGISTICS and I recommend the organisation organises more of such programme(opportunity) to widen its sphere of operation.
INTRODUCTIONMOVAR LOGISTICS PRIVATE LIMITED is a Custom House Agent company.
INDUSTRY PROFILE "Custom House Agent" means a person licensed, temporarily or otherwise, under the regulations made under sub-section (2) of Section 146 of the Customs Act, 1962 (52 of 1962), [Section 65(35)]. The services rendered by the custom house agent are not merely limited to the clearing of the import and export consignment. The CHA also renders the service of loading/unloading of import or export goods from/at the premises of the exporter/importer, the packing, weighment, measurement of the export goods, the transportation of the export goods to the customs station or the import goods from the custom station to the importers premises, carrying out of various statutory and other formalities such as payment of expenses on account of octroy, DE stuffing /palletisation terminal handling, fumigation, drawback/DEEC processing, survey /amendment fees, dock fees, repairing and examination charges, landing and container charges, statutory labour charges, testing fees, drug control formalities, sorting /marking/stamping/sealing on behalf of the exporter/ importer. The custom house agent incur various other expenses such as crane/fork lift charges, taxi charges, Photostat and fax charges, bank collection charges, courier service charges, and miscellaneous other expenses on account of the importer /exporter. For all the above charges, the CHA is ordinarily reimbursed by the importer/ exporter for whom the above services are rendered. Apart from the above charges, the CHA also charges the client for his services under the head /nomenclature of “agency and attendance charges “ or similar kind of heads which is
purported to be his service charge in respect of the services rendered in relation to the import/export goods. There are various Custom House Agent Associations which are currently running down their exertion in India.
COMPANY PROFILE
Started in the year 1990 with the idea of providing consultancy to the upcoming exporters & importers in and around Indore, Movar is today a complete logistics solution provider with diversified business of Freight Forwarding and EXIM Consultancy.
It has its presence in Mumbai, ICD Pithampur, ICD Mandideep, ICD Malanpur & Cochin. The Company offers a prompt and well organized custom clearance service to its customers covering both Air and Sea, Legalization of Documents, arranging Fumigation, Inspection Certificates, Certificates from Chamber of Commerce and much more. Movar also provides timely EXIM advice to customers, assisting them to comply with tariffs, preparing reports and in availing the maximum advantage from various schemes as granted by the DGFT.
Movar possesses the best of infrastructure facilities and employs highly qualified, skilled and well experienced staff to handle all the work pertaining to Custom Clearance & Freight Forwarding in the above locations.
The Company’s integrated services under one roof keeps it abreast with changes in the industry and helps to maintain an excellent rapport with both Government and Non-Government offices, such as the Directorate General of Foreign Trade, The Custom House, The Port Authorities, The Chamber of Commerce, Bank, The Consulates & Embassies, Shipping Lines, Airlines, Freight Forwarders etc.
With over a decade of experience and with " Customer Satisfaction " as their main objective and strength, Movar now offer its clients a broad spectrum of services
Rewards & Recognition
It's Indore operations carry a rare distinction in the region for being continuously awarded with the Certificate of Excellence for handling maximum number of Export / Import documents from ICD Pithampur by the Commissionerate of Customs & Central Excise, Indore since 2004
Certificate 2003-04 Certificate 2005-06
Mission"To strive for global leadership in the logistics industry, by committing ourselves to provide excellence through our services to become the most
preferred logistics partner.
Vision"To be a market leader across the nation focused on Customer
Satisfaction."
STRUCTURE OF ORGANISATION
Head Office
Movar Logistics Pvt. Ltd.
208 & 209 Alankar Chamber, A-2, Ratlam KothiNear Geeta Bhawan Square, A.B. Road Indore - 452001 ( M.P. )Phone : 91-731-3048013-17Fax : 91-731-4046668Mobile :91- 098260-24072, 098264-32266E-mail : [email protected] [email protected]
Branch Offices
Cochin
Handicraft Building, Plot No.:27-B, Indira Gandhi road, Willingdon Island,Cochin – 682 003Ph.:0484 3228341Mobile: 09387706276E-mail : [email protected]
Mumbai
302, 3rd Floor, Kukreja Centre, Sector – 11,CBD Belapur, Navi Mumbai – 400 614Phone: 91-22-40126351, 32597193 Fax: 91-22-27802834Mobile: 91-098215-88062 E-mail: [email protected]
Bhopal
No.18, Priyanka Lake View Appts,Vijay Nagar, Bhopal – 432 008Mobile : 098932-85000
Gwalior
B-14, Purushottam ViharNear Gola ka Mandir,Gwalior - 474005 Phone: 91-751-4049122Tel/Fax: 91-751-4049122Mobile: 91-98260-96001E-mail: [email protected]
MAJOR LEARNING EXPORT PROCESS
1. Having an Export Order:Processing of an export order starts with the receipt of an export order. An export order, simply stated, means that there should be an agreement in the form of a document, between the exporter and importer before the exporter actually starts producing or procuring goods for shipment. Generally an export order may take the form of proforma invoice or purchase order or letter of credit. You have already learnt these just in the preceding section.
2. Examination and Confirmation of Order:
Having received an export order, the exporter should examine it with
reference to the terms and conditions of the contract. In fact, this is the
most crucial stage as all subsequent actions and reactions depend on the
terms and conditions of the export order.
The examination of an export order, therefore, includes items like product description, terms of payment, terms of shipment, inspection and insurance requirement, documents realising payment and the last date of negotiation of documents with the bank. Having being satisfied with these, the export order is confirmed by the exporter.
3. Manufacturing or Procuring Goods:
The Reserve Bank of India (RBI), under the export credit (interest
subsidy) scheme, extends pre-shipment credit to exporter to finance
working capital needs for purchase of raw materials, processing them and
converting them into finished goods for the purpose of exports. The
exporter approaches the bank on the basis of laid down procedures for the
pre-shipment credit. Having received credit, the exporter starts to
manufacture / procure and pack the goods for shipment overseas.
4. Clearance from Central Excise:
As soon as goods have been manufactured/ procured, the process for
obtaining clearance from central excise duty starts. The Central Excise
and Sale Act of India and the related rules provide the refund of excise
duty paid. There are two alternative schemes whereby 100 per cent rebate
on duty is given to export products on the submission of the proof of
shipment.
The first scheme is to make payment of the excise duty at the time of
removing the export consignment from the factory and file a claim for
rebate of duty after exportation of goods. The second scheme is to
remove goods from factory/warehouse without payment but under an
appropriate bond with the excise authorities. The exporter needs to apply
on a form known as AR4 or AR4A to the Central Excise Range
Superintendent for obtaining excise clearance.
Form A is filed when goods are to be cleared after examination by the
excise inspector. In all other cases, form AR4A is filed.
5. Pre-Shipment Inspection:
There are number of-goods whose export requires quality certification as
per the Government of India’s notification. Consequently, the Indian
custom authorities will require the submission of an inspection certificate
issued by the competent and designated authority before permitting the
shipment of goods takes place.
Inspection of export goods may be conducted under:
(i) Consignment-wise Inspection
(ii) In-process Quality Control, and
(iii) Self-Certification.
The Inspection Certificate is issued in triplicate. The original copy is for
the customs verification. The second copy of the certificate is sent to the
importer and the third copy remains with the exporter for his reference
purpose.
6. Appointment of Clearing and Forwarding Agents:
On completion of the process of obtaining the Inspection Certificate from
the custom agencies, the exporter appoints clearing and forwarding agents
who perform a number of functions on behalf of the exporter.
The main functions performed by these agents include packing, marking
and labelling of consignment, arrangement for transport to the port
arrangement for shipment overseas, customs clearance of cargo,
procurement of transport and other documents.
In order to facilitate the exporter in discharging his duties, the
following documents are submitted to the agent:
(i) Commercial invoice in 8-10 copies
(ii) Customs Declaration Form in triplicate
(iii) Packing list
(iv) Letter of Credit (original)
(v) Inspection Certificate (original)
(vi) G.R. Form (in original and duplicate)
(vii) AR4/ AR4A (in original and duplicate)
(viii) GP-l/GP-2 (original)
(ix) Railway Receipt/Lorry Way Bill, as the case may be
7. Goods to Port of Shipment:
After the excise clearance and pre-shipment inspection formalities are
completed, the goods to be exported are packed, marked and labeled.
Proper marking, labelling and packing help quick and safe transportation
of goods. The export department takes steps to reserve space on the ship
through which goods are to be sent to the importer.
The shipping space can be reserved either through the clearing and
forwarding agent or freight broker who works on behalf of the shipping
company or directly from the shipping company. Once the space is
reserved, the shipping company issues a document known as Shipping
Order. This order serves as a proof of space reservation.
If goods are sent through a road carrier to the port, no specific formality
is involved. In case, the goods are sent by rail to the port of shipment,
allotment of wagon needs to be obtained from the Railway Board.
The following documents are submitted to the booking railway
yard/station:
(i) Forwarding Note (A Railway Document)
(ii) Shipping Order
(iii) Wagon Registration Fee Receipt
Once wagons have been allotted, goods are loaded, for which railways
will issue Railway Receipt (RR). Then, this receipt and other documents
are sent to the clearing and forwarding agent at the port town. At the
same time, the production/export department takes insurance policy in
duplicate for risk coverage (internal as well as overseas) for the goods to
be exported.
8. Port Formalities and Customs Clearance:
Having received the documents from the export department, the clearing
and forwarding agent takes delivery of the cargo from the railway station
or the road transport company and stores it in the warehouse. He also
obtains customs clearance and permission from the port authorities to
bring the cargo into the shipment shed.
The custom department grants permission for export at the office of the
customs and physical verification of goods in the shipment shed. The
clearance for export is given on the Shipping Bill.
The clearing and forwarding agent is required to submit the
following documents with the Customs House for obtaining customs
clearance and permission:
(i) Shipping Bill
(ii) Contract Form
(iii) Letter of Credit, if applicable
(iv) Commercial Invoice
(v) GR Form
(vi) Inspection Certificate
(vii) AR4/AR4A Form
(viii) Packing List, if needed
After receiving documents from the export department, the clearing and
forwarding agent presents the Port Trust Document to the Shed
Superintendent of the port. He obtains carting order bringing the cargo to
the transit shed for physical examination by the Dock Appraiser.
The Dock Appraiser is presented the following documents to
facilitate him in physical examination of export goods:(i) Shipping Bill
(ii) Commercial Invoice
(iii) Packing List
(iv) AR4/ AR4A Form and Gate Pass
(v) GR Form (duplicate)
(vi) Inspection Certificate (original)
The Dock Appraiser, after making examination, makes ‘Let Export’
endorsement on the duplicate copy of the Shipping Bill and hands over it
to the Forwarding Agent. All these documents are presented to the
Preventive Officer who puts an endorsement ‘Let Ship’ on the duplicate
copy of the Shipping Bill. The preventive officer supervises the loading
of cargo on board the vessel.
After the goods are loaded on board the vessel, the captain of the ship
issues a receipt known as ‘Mate’s Receipt’ to the Shed Superintendent of
the port concern. The forwarding, agent after paying port charges, takes
the delivery of the ‘Mate Receipt’. He submits to Shipping Company and
requests it to issue the Bill of Lading.
9. Dispatch of Documents by Forwarding Agent to the Exporter:
After obtaining the Bill of Lading from the Shipping Company, the
clearing and forwarding agent dispatches all the documents to his / her
exporter.
These documents include:
(i) Commercial Invoice (attested by the customs)
(ii) Export Promotion Copy
(iii) Drawback Copy
(iv) Clean on Board Bill of Lading
(v) Letter of Credit
(vi) AR4/ AR4A and Gate Pass
(vii) GR Form (in duplicate)
10. Certificate of Origin:
On receipt of above documents from the forwarding agent, the exporter
now applies to the Chamber of Commerce for a Certificate of Origin and
obtains it. If the goods are exported to countries offering GSP
concessions, the exporter needs to procure the GSP Certificate of Origin
from the concerned authority like Export Inspection Agency.
11. Dispatch of Shipment Advice to the Importer:
At last, the exporter sends ‘Shipment Advice’ to the importer intimating
the date of shipment of the consignment by a named vessel and its
expected time of arrival at the destination port of the importer.
The following documents are also sent to the importer to facilitate
him for taking delivery of the’ consignment:
(i) Bill of Lading (non-negotiable copy)
(ii) Commercial Invoice
(iii) Packing List
(iv) Customs Invoice
12. Submission of Documents to Bank:
At the end of the process, the exporter presents the following
documents to his bank for realisation of his amount due to the
importer:
(i) Commercial Invoice’
(ii) Certificate of Origin
(iii) Packing List
(iv) Letter of Credit
(v) Marine Insurance Policy
(vi) GR Form
(vii) Bill of Lading
(viii) Bill of Exchange
(ix) Bank Certification
(x) Commercial Invoice
13. Claiming Export Incentives:
On completion of the processing of an export order at the three levels of
shipment i.e., pre-shipment, shipment and post-shipment, the exporter
claims for export incentives admissible to him / her.
CHECK LIST FOR SHIPPING BILL
EXPORT DETAIL
INVOICE DETAIL
HAND OVER TO CUSTOMER
MATE RECEIPT + EXPORT PROMOTION COPY
BILL OF LADING
SHIPMENT
CUSTOM CLEARNCRINSPECTION EGM EXAMINATION
PREPARECHECK LIST SHIPPING BILL CARTING
RECEIVECOMMERCIAL INVOICE
ORDER
ITEM DETAIL
SERVICE TAX REFUND(STR) DETAILS
DRAWBACK (DBK) DETAIL
AR4 DETAIL
VESSEL DETAIL
PACKING DETAILS
DECLERATION
SIGHN OF CHA
MAJOR DOCUMENTS
Principal Export Documents
1. Commercial invoice
2. Packing list
3. Bill of lading
4. Combined transport document
5. Certificate of inspection/quality control
6. Insurance certificate/policy
7. Certificate of origin
8. Bills of exchange and shipment advice
Auxiliary Documents
1. Performa invoice
2. Intimation for inspection
3. Shipping instructions
4. Insurance declaration
5. Shipping order
6. Mate receipt
7. Application for certificate of origin 8. Letter to the bank for collection/negotiation of documents.
Regulatory Documents
1. Gate pass-1/gate pass-2 –prescribed by Central Excise Authorities
2. AR4/AR4A form -prescribed by Central Excise Authorities
3. Shipping Bill/Bill of Export -prescribed by Central Excise Authorities
4. Export Application/Dock Challan –Prescribed by Port Trust.
5. Receipt for payment of Port Charges
6. Vehicle Ticket
7. Exchange Control Declaration –Prescribed by RBI GR/PP Forms
8. Freight Payment Certificate
9. Insurance Premium Payment Certificate
Documents Related To Payment
a) Letter of credit
b) Bill of exchange
c) Trust receipt
d) Letter of hypothecation
e) Bank certificate of payment
EXPORT PROMOTIO SCHEMES
1. Duty Drawback Scheme: Under Duty Drawback Scheme relief of Customs and Central Excise Duties suffered on the inputs used in the manufacture of export product is allowed to Exporters. The admissible duty drawback amount is paid to exporters by depositing it into their nominated bank account. Section 75 of the Customs Act, 1962 and Section 37 of the Central Excise Act, 1944, empower the Central Government to grant such duty drawback. Customs and Central Excise Duties Drawback Rules, 1995 have been framed outlining the procedure to be followed for the purpose of grant of duty drawback (for both kinds of duties suffered) by the Customs Authorities processing export documentation.
2. Duty Exemption Scheme: Duty Exemption Scheme is an export promotion scheme and it enables import of inputs required for export production free of Customs duty. Advance Licences are issued under Duty Exemption Scheme to allow import of inputs, which are physically incorporated in the export product (after making normal allowance for wastage). In addition, fuel, oil, energy catalysts, etc., which are consumed in the course of their use to obtain the export product can also be allowed under the scheme. Value and quantity of each item permitted duty free 134 import are specified in the Advance Licence. Standard input-output norms (SIONs) notified by the DGFT under para 7.8 of the Handbook of Procedures (Vol.I) or as modified under para 7.10 of the said Handbook facilitate determination of the proportion of various inputs which can be used or are required in the manufacture of different resultant products.
Advance Licences are issued for Physical exports, Intermediate supplies and Deemed exports. Advance Licences are also issued on the basis of annual requirement for exports/supplies. This enables the exporter to plan out his manufacturing/export programme on long term basis. Advance Licences for deemed exports are issued to (i) manufacturer exporter or main contractor in case of deemed exports, and (ii) Merchant exporter having supporting manufacturer.
3. Export Promotion capital Goods (EPCG) Scheme: Under EPCG Scheme import of capital goods which are required for the manufacture of resultant export product specified in the EPCG Licence is permitted at concessional rate of Customs duty. This Scheme also enables upgradation of technology of the indigenous industry. For this purpose EPCG Licences are issued on the basis of approval granted by EPCG Committee. The EPCG Committee comprises of officers from DGFT, MOF and concerned Administrative Ministry. At present the EPCG licence holder is permitted to import capital goods at 5% or 10% Customs duty. Whereas under 5% duty EPCG Scheme the licence holder is required to undertake to fulfil export obligation equivalent to 5 times the CIF value of imported capital goods within a period of 8 years reckoned from the date of issue of licence, under 10% duty EPCG Scheme, the licence holder has to fulfil export obligation equivalent to 4 times the CIF value of imported capital goods in five years. EPCG licences are issued to manufacturer exporters and merchant exporter with or without supporting manufacturer, and service providers. The licence specifies the value/quantity of resultant export product to be exported against it. In the case of manufacturer/merchant exporters, such Export Obligation (EO) is required to be fulfilled by exporting resultant products manufactured with the help of imported capital goods. In the case of service providers the
export obligation is required to be fulfilled by earning foreign exchange through rendering service. In order to ensure fulfilment of specified export obligation as also to secure 139 interest of revenue, the licence holder is required to file bond with or without bank guarantee with the Customs Authority prior to commencement of import of capital goods.
Top 5 International Container Shipping Companies
1. A.P. Moller–Maersk Group
TEU: 3,012,172HQ: Copenhagen DenmarkFounded: 1904Revenue: $40.3 Billion (USD)Employees: 89,000
2. Mediterranean Shipping Company S.A. (MSC)
TEU: 2,659,489HQ: Geneva, SwitzerlandFounded: 1970Revenue: $28.2 Billion (USD)Employees: 24,000
3. CMA CGM Group
TEU: 1,799,291HQ: Marseille, FranceFounded: 1978Revenue: $15.7 Billion (USD)Employees: 22,000
4. China Ocean Shipping (Group) Company (COSCO)
TEU: 1,539,618HQ: Beijing, ChinaFounded: 1961Revenue: $10.2 billion USDEmployees: 130,000
5. Evergreen Marine
TEU: 929,700HQ: Taoyuan City, TaiwanFounded: 1968Revenue: $4.6 billion USDEmployees: 3,389
Types of Container Units and Designs for Shipping Cargo
Container units form the most integral part of the entire shipping industry, trade, and transport. These shipping containers are the structures that
store various kinds of products that need to be shipped from one part of the world to another. Moving containers protect contents on the long journeys they make and ensure they make it back to you in one piece.
1. Dry storage container
The most commonly used shipping containers; they come in various dimensions standardized by ISO. They are used for shipping of dry materials and come in size of 20ft, 40 ft and 10ft.
2. Flat rack container
With collapsible sides, these are like simple storage shipping containers where the sides can be folded so as to make a flat rack for shipping of wide variety of goods.
3. Open top container
With a convertible top that can be completely removed to make an open top so that materials of any height can be shipped easily.
4. Tunnel container
Container storage units provided with doors on both ends of the container, they are extremely helpful in quick loading and unloading of materials.
5. Open side storage container
These storage units are provided with doors that can change into completely open sides providing a much wider room for loading of materials.
6. Double doors container
They are kind of storage units that are provided with double doors, making a wider room for loading and unloading of materials. Construction materials include steel, iron etc in standardized sizes of 20ft and 40ft.
7. Refrigerated ISO containers
These are temperature regulated shipping containers that always have a carefully controlled low temperature. They are exclusively used for shipment of perishable substances like fruits and vegetables over long distances.
8. Insulated or thermal containers
These are the shipping storage containers that come with a regulated temperature control allowing them to maintain a higher temperature.
The choice of material is so done to allow them long life without being damaged by constant exposure to high temperature. They are most suitable for long distance transportation of products.
9. Tanks
Container storage units used mostly for transportation of liquid materials, they are used by a huge proportion of entire shipping industry. They are mostly made of strong steel or other anti corrosive materials providing them with long life and protection to the materials.
10. Cargo storage roll container
A foldable container, this is one of the specialized container units made for purpose of transporting sets or stacks of materials. They are made of thick and strong wire mesh along with rollers that allows their easy movement. Availability in a range of colored wire meshes make theseshipping container units a little more cheerful.
11. Half height containers
Another kind of shipping containers includes half height containers. Made mostly of steel, these containers are half the height of full sized containers. Used especially for good like coal, stones etc which need easy loading and unloading.
12. Car carriers
Car carriers are container storage units made especially for shipment of cars over long distances. They come with collapsible sides that help a car fit snugly inside the containers without the risk of being damaged or moving from the spot.
13. Intermediate bulk shift containers
These are specialized storage shipping containers made solely for the purpose of intermediate shipping of goods. They are designed to handle large amounts of materials and made for purpose of shipping materials to a destination where they can be further packed and sent off to final spot.
14. Drums
As the name suggests, circular shipping containers, made from a choice of materials like steel, light weight metals, fiber, hard plastic etc. they are most suitable for bulk transport of liquid materials. They are smaller in size but due to their shape, may need extra space.
15. Special purpose containers
Not the ordinary containers, these are the container units, custom made for specialized purposes. Mostly, they are used for high profile services like shipment of weapons and arson. As such, their construction and material composition depends on the special purpose they need to cater to. But in most cases, security remains the top priority.
16. Swap bodies
They are a special kind of containers used mostly in Europe. Not made according to the ISO standards, they are not standardized shipping container units but extremely useful all the same. They are provided with a strong bottom
and a convertible top making them suitable for shipping of many types of products.
IMPORT
Any body intending to import goods for commercial purpose has to submit an application to the Directorate General of Foreign Trade and obtain Importer and Exporter Code (IEC) number. In the case of 100% EOUs / EPZs the importer and Exporter Code (IEC) numbers are allocated by the Development Commissioner of Export Processing Zone concerned. This number has to be indicated in the documents filed with the Customs for clearance of the imported goods. This number is not required in the case of import of gifts and baggage
Every goods imported shall be in conformity with Section 11 of the Customs Act 1962, Foreign Trade (Development & Regulation) Act 1992 read with the EXIM policy in force. Those goods which are not falling within the parameter of EXIM Policy are normally confiscated or allowed to redeemed on payment of fine / penalty.
PROCESS OF IMPORT SHIPMENT
MAJOR DOCUMENTS REQUIRED BEFORE AARIVAL OF SHIPMENT
BILL OF LADING /AIRWAY BILL CARGO ARRIVAL NOTICE FREIGHT CERTIFICATE PURCHASE ORDER OTHER DOCUMENTS RELATED TO GOODS
AFTER THIS DO FOR UNLOADING BILL OF ENTRY COMMERCIAL INVOICE PACKING LIST ANALYSIS CERTIFICATE L/C MEASUREMENT CERTIFICATE FORM NO. 60
ARRANGEMENT OF DELIERY OF CARGO
DELIVERY ORDER
INSPECTION PROCEDURE
BILL OF ENTRY(EDI)
FILING OF IGM WITH CUSTOM
ARRIVAL OF SHIPMENT
I TC-HS Codes or better known as Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations. Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirements.
ITC-HS Codes Schedules
ITC-HS codes are divided into two schedules. ITC(HS) Import Schedule I describe the rules and guidelines related to import policies whereas Schedule II describe the rules and regulation related to export policies. Schedule I of the ITC-HS code is divided into 21 sections and each section is further divided into chapters. The total number of chapters in the schedule I is 98. The chapters are further divided into sub-heading under which different HS codes are mentioned. Export Policy Schedule II of the ITC-HS code contain 97 chapters giving all the details about the guidelines related to the export policies
ITC Hs Code Major 21 Sections
Animals & Animal Products Vegetable Products Animal Or Vegetable Fats Prepared Foodstuffs Mineral Products Chemical Products Plastics & Rubber Hides & Skins Wood & Wood Products Wood Pulp Products Textiles & Textile Articles Footwear, Headgear Articles Of Stone, Plaster, Cement, Asbestos Pearls, Precious Or Semi-Precious Stones, Metals Base Metals & Articles Thereof Machinery & Mechanical Appliances Transportation Equipment Instruments - Measuring, Musical Arms & Ammunition Miscellaneous
Works Of Art
CALCULATION OF TERIFFAn import tariff is a tax placed by governments on commodities that are shipped into a country from a foreign country. These taxes are often a way to discourage a country's consumers from buying products from another country and to support domestic products and services. Governments generally have the right to determine what products will have a tariff and how much that tax will be. Governments often use two types: ad valorem and specific. The types of tariffs levied helps determine the value of the tax on the particular product.
INVOICE VALUE5,72,934 INR
ADD 1% LANDING CHARGES5,729 INR
= ASSESABLE VALUE5,78,663 INR
ADD BASE RATE (NORMALLY 10%)57,866 INR
CVD(COUNTER VAILING DUTY) 12.5%
79,566, INR
CUSTOM EDUCATION CESS2,749 INR
CUSTOM HR. EDUCATION CESS1,374 INR
ADDITIONAL DUTY 4%28,809 INR
TERIFF1,70,364 INR
Demurrage relates to cargo (while the cargo is in the container)Imports – A container is discharged off a ship on the 2nd July – Consignee approaches the shipping line to take delivery of the cargo around 12th July.. Working off a standard 7 free days from date of discharge, the line free days (different to port free days) expires on the 8th July.. So, the line will charge the consignee DEMURRAGE for 4 days from 9th to 12th July at the rate fixed by the line..
Detention relates to equipment (while the container is empty after unpacking or before packing)After the full container has been picked up by the client, for example if they take another 7 days to return the empty container, then it is known as DETENTION which again will be charged at the rate fixed by the line..
MISCELLANEOUS LEARNINGS
Learn how to file the documents on the INDIAN CUSTOM EDI Gateway here in after referred to as ICEGATE.
How to arrange the file records in particular manner.
How to negotiate with the carrier.
How to arrange of the container.
How to identify the route and on the basis of which vessel is chosen.
How see duty chart.
Learn about different vessels name.
How to track status of shipment and pending documents for clearance.
Learn about DGFT and its working role in international trade.
Learn about some special cases in shipment like Break bulk, Project cargo, damage of custom seal and line seal while shipment etc.
Go through with Indian foreign trade policy 2015-20 .
SWOT ANALYSIS OF MOVAR LOGISTICS PVT LTD
STRENGTH
-Best experienced CHA is the head of the company.-Goodwill among the customers.-Wide coverage of the market in Madhya Pradesh.-Good relationship with the different Govt. departments.-Three time best CHA award in last 5 yrs in M.p .-Accountability of the employees predefined.
WEAKNESS
-Not so good office infrastructure.-Working culture is not so good (not updated).-Employees are not so qualified.-Employees are from particular area which shows biasness in recruitment.
OPPORTUNITY
-To cover more market share by using own good reputation in the market.-Again chance to become leader of the field.-Growing scope of international trade.
THREAT
-Loosing of market share.-Competition-Local govt. department’s restrictions.-Exchange rates.
References
http://agriexchange.apeda.gov.in/logistic/ custome_house_agent.aspx
http://movarlogistics.com/about.htm
https://www.wikipedia.org/
Working notes of internship.