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Transportation plan of Steel Mill from Pittsburg, USA to Hyderabad, IndiaPresented By : Visag , Taru , ShasankaAgendaTransportation PlanningList of Equipment used in steel millPackaging and handlingRoute planning & Logistics ProvidersExport documentation and proceduresIndia specific documentation for second hand machineryImport duty and taxesTransportation charges calculationChallenges/ Issues

Transportation Planning We have assumed VST Steel company have subsidiaries in USA and INDIA. USA subsidiary is selling its equipment and machinery to its Indian subsidiary.

Seller : VST Steel Pvt Ltd, USABuyer: VST Steel Pvt Ltd, India

USA subsidiary will be selling at depreciated value calculated from its historical cost

Assumption : Machinery cost - $1 million Total weight - 50 ton volume 7 m x 7 m x 7m

Steel Manufacturing ProcessSteel MillMetal Processing Equipment Melting Furnace EquipmentRolling MillsShears (IEC #120284)

Side Trimmers (IEC # 118663)

Slitters (IEC #118602)

Billet Grinders (IEC #118073) Pouring ladles (IEC #118662)

Annealing Furnace (IEC # 118382)

Electric Arc Furnaces (IEC #120268)

Casting line (IEC #119653)

Continuous Billet casters (IEC # 119656)

Hot Strip Mills (IEC #118809)

Annealing Lines (IEC #118822) Bar Mills (IEC #120289)

Sendzimir bills (IEC # 118817)

Cluster Mills (IEC #118377)

Roughing Mills (IEC #118834) List of Equipment Used in Steel MillPackaging and Handling

We have selected crates provided with skids for easy handling and storage of heavy machinery.

The crates are prepared with ferrous surfaces with rust inhibitors to protect the cargo from rust and corrosion.

Crates can be build to fit any kind of freights. Solid walls and strong weight-bearing structures making loading easier and provides full protection.

Plastic wrapping is also recommended to protect from rain, seawater and moisture.

Freight Labels ensure proper handling of goods and ensuring correct delivery.

Crate PackagingRoute Planning

1. Pittsburg to Port Baltimore - By Road (400km ; 9hrs )2. Port Baltimore to Port Mumbai By Sea ( 9729 mi ; 27 days)3. Port Mumbai to Hyderabad - By Road (707 km ; 16 hrs)

Lead time : 35 days7Logistics providers From Pittsburg to Port Baltimore (Freight Forwarders) - Amrus Logistics - Prisma cargo solution - Global link and Supplies - Seaway Exports

From Port Baltimore to Port Mumbai ( Shippers ) - Maersk Line - K line - CP Ships

From Port Mumbai to Hyderabad ( Freight Forwarders) - AA Lloyd Line - Shipwell logistics - M/S Axis Freight Solutions Pvt ltd

Export Document and Procedures Principal Export Documents

Commercial InvoicePacking ListBill of Lading Combined Transport DocumentCertificate of Inspection/ Quality Control Insurance Certificate/ PolicyCertificate of originLetter of transfer

Auxiliary Documents

Performa InvoiceIntimation for inspectionShipping instructionsInsurance declarationShipping orderApplication for certificate of originLetter to bank / negotiation documents

Shipping Bill : The shipping bill is the main document on the basis of which the Customs permission for export is given.9Export Document and Procedures Custom Documents

Shipping BillDeclaration regarding truth or statement made in shipping billInvoiceExport licenseQuality control inspection certificateOriginal contractLetter of creditPacking list

Document related to payment

Letter of credit Bill of exchangeTrust Receipt Bank certificate of payment

India Specific second hand machinery documentation for customs For valuation of second hand machinery/capital goods, the assessing officers must insist on importers submitting a certificate issued by an independent Chartered Engineer or any equivalent in the country of supply. The certificate should indicate

1. Price of new machinery as in the year of its manufacture 2. Current CIF value of new machinery if purchased now 3. Year of the manufacture of machinery 4. Sale price of the supplier 5. Present condition of machinery 6. Nature of reconditioning or repairs carried out, if any the cost (including the dismantling cost, if any) thereof, Expected life span

Import of refurbished/reconditioned spares of capital goods, other than those of personal computers/laptops will be allowed on production of a Chartered Engineer certificate that such spares have at least 80% residual life of original spare.11Import Duty & taxes For Used machinery Import duty rate for used machinery into India is 7.5% VAT (Value added tax) is 0% Additional Taxes: - landing Charges (1% CIF) - Countervailing duty (12.5 % of CIF + landing charges) - CESS ((3% (Duty + CEX (Education & Higher Education CESS) + Countervailing duty))

Octroi and Entry tax Entry tax is generally varying from 2% to 5% on entry goods Andhra Pradesh (Now Telangana does not have Octroi and entry tax)

it is the tax paid by the heavy vehicles like trucks carring goods, octroi post are set on the ends of the city. penality is imposed if somebody tries to avoid it.they have to produce the slip of octroi paid whenever asked for.12

Total transportation charges Origin to DestinationAssumption : Equipment cost 1million USD (depreciated value)Challenges / IssuesPackaging and Material handling

Storage issue at the port

Loading and unloading on ship

Value of the asset and transfer pricing

Equipment not getting cleared at customs in India Thank You