Summer project

A

PROJECT REPORT

ON

“BRINGING THE WORLD CLOSER THROUGH INTERNATIONAL

TRADE”

SUBMITTEDBY

ZION KIMMBA-II (MARKETING + OPERATIONS)

UNDER THE GUIDANCE OF

Prof PathankarVISITING FACULTY

(PUMBA)

IN PARTIAL FULFILLMENT OF THEREQUIREMENTS FOR THE AWARD OF DEGREEOF MASTERS IN BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT SCIENCESUNIVERSITY OF PUNE

(PUMBA)

1

(2006-08)

CERTIFICATE

This is to certify that the project entitled “BRINGING THE WORLD

CLOSER THROUGH INTERNATIONAL TRADE” is a bonafide

project work carried out by Mr.Zion Kim, student of Department Of

Management Sciences, Pune University,(PUMBA), under my guidance

and direction, in partial fulfillment of the requirement of the MBA

degree course.

Prof. Pathankar Prof. D.V Sangvikar(PROJECT GUIDE) (H.O.D D.M.S. PUNE)

2

A CKNOWLEDGEMENT

I express my sincere thanks to Shin Sung

Chemical Co. Ltd. And Korean Trade (KOTRA), Mumbai for giving me an opportunity to work with them through this summer project.

Gracious help from various sources has contributed tremendously to the completion of this project work. I take this opportunity to express my profound sense of gratitude to Mr. Yeol Woo Choi (President), Mr. Choi Jae Kwang (International Business) and Mr. Dong Wook Kim (KOTRA, Mumbai) for their invaluable guidance, constant encouragement and practical suggestions based on the experience to focus my efforts to which this work has come to the presentable form.

I am also thankful to Prof. D.V Sangvikar (HOD, PUMBA) and my internal guide Prof. Pathankar who have helped me whenever required, and gave me support in every possible form.

3

Zion KimMBA- Dual (Marketing & Operations)

Department Of Management SciencesUniversity Of Pune

4

TABLE OF CONTENTS

Chapter 1 …………….………………………………………………….. 8

About the Company

Chapter 2 …………………………………………………………….…..10

Job Description

Chapter 3…………………………………………………………………11

Business Process

3.1 Price List………………………………………………………….11

3.2 Email communication……………………………………….….11

3.3 Pro Forma Invoice……………………………………………….12

3.3.1 Note (CFR, FOB, CIF)…………………………………….14

3.4 L/C, P/L, C/I………………………………………………….……17

3.4.1 Note (Credit Report)…………………………………..……16

3.4.2 L/C………………………………………………………..…..24

3.4.3 L/C……………………………………………………………25

3.4.4 L/C……………………………………………………………26

3.4.5 L/C………………………………………………...………….27

3.4.6 C/I………………………………………………….…………33

3.4.7 P/L……………………………………………………..……..36

3.5 B/L…………………………………………………………...……..38

3.5.1 Seal No……………………………………………………...40

3.6 Payment…………………………………………………….……..44

3.6.1 Summary of Business Process………………………..44

3.6.2 Summary of Observations Made……….……………..46

7

3.6.3 Summary of Conclusions from Observations ……..51

3.6.4 Summary of Recommendations ……………………..53

Chapter 4 .…………………………………………………….…………46

Korean Trade Centers

4.1 KOTRA…………………………………………………….………55

4.2 KITA…………………………………………………..……………58

Chapter 5 ………………………………………………………………..60

Conclusion

Chapter 6 …………………………………………………………..……62

Product Lists: Surfactants

Chapter 7…………………………………………………………..……..64

Chemical Auxiliaries

Glossary…………………………………………………………….……96

Figures and Tables……………………………………………………..97

Bibliography……………………………………………………………..98

8

Chapter 1

Introduction

About the company

Shin Sung Chemicals was established in 1989 in South Korea. Since

then, it has grown up to be a well-known company in Korea as a

developing, manufacturing and trading company of precision

synthetic chemicals for textile industries dealing with a wide range of

products in nylon, cotton, leather, acryl, and dye-stuff.

In 1997, Shin Sung Chemicals became a joint stock holding company

and changed its name to Shin Sung Chemical Co. Ltd. It consists of

highly qualified and experienced professionals who are dedicated to

providing high quality for customers. With qualified and experienced

experts, Shin Sung is able to design the most reliable and cost

efficient chemicals to suit customer’s requirements.

To fully satisfy our customers’ needs, Shin Sung continuously strive

to improve its products’ quality and value.

The company’s mission is to supply the highest quality products and

services to its customers. In order to fulfill this mission, all employees

work professionally, happily and efficiently together.

9

Company Profile

Company Name SHIN SUNG CHEMICAL CO. LTD.

Major Business Surfactants and dye-stuff

President Yeol Woo Choi

Address 1355-12 JUNG WANG-DONG, SI HEUNG CITY,

GYEONG GI –DO, KOREA

Telephone +82-31-498-2251/2/3

Annual Turnover $1 million

Number of

Employees

20

10

Chapter 2

Job Description

My job at Shin Sung Chemical Co. Ltd. was to oversee the operation

of international business, mainly with the export division. As such, I

was responsible for precise communication with foreign buyers

through emails, meetings, exhibitions and visits.

I was given the task of receiving and sending the enquiries, framing

documents such as pro forma invoices, commercial invoices, and

confirming orders and operations through constant communications.

The company has clients from different parts of the world such as

China, Vietnam, Sri Lanka, Bangladesh.

Because of my experience with foreign business cultures and the

knowledge of English, I could utilize my full potential and was happy

to be resourceful to the company.

During various exhibition visits such as Co-Ex exhibition(South

Korea) and Chem Spec, not only was my knowledge towards

international trade increased but I was able to introduce new buyers

to my company.

The summers at Shin Sung Chemical Co. Ltd. gave me an insight of

different processes involved for international business, how they are

actually implemented and know-hows of a successful trading

company.

11

Chapter 3

Business Process

The competition of chemical industry around the world is fierce. It is

very sensitive to prices and quality. As such, I am bound by mutual

agreement of non-disclosure so as to protect the integrity and

confidential nature of details of international business done by Shin

Sung Chemical Co. Ltd.

I cannot disclose the details of international trade carried out during

my internship but I am happy to share a business transaction which

took place in the month of September with a buyer from Bangladesh.

The international trade process of Shin Sung Chemical Co. Ltd.

during my stay was all done in the similar manner.

3.1 – Business Process

Inquiry email was sent by buyer (EPYLLION KNITEX LTD.) from

Bangladesh and received by Shin Sung Chemical Co. Ltd. The

inquiry was about the product SODA-PS. (refer page 37 for product

details)


The price list of SODA-PS required by the buyer was sent via email.

12


PI (Pro forma Invoice) was prepared as shown in the figure 1.

In foreign trade transactions, a pro forma invoice is a document that

states a commitment from the seller to sell goods to the buyer at

specified prices and terms. It is used to declare the value of the trade.

It is not a true invoice, because it is not used to record accounts

receivable for the seller and accounts payable for the buyer.

13

http://en.wikipedia.org/wiki/Accounts_payable

http://en.wikipedia.org/wiki/Accounts_receivable

http://en.wikipedia.org/wiki/Accounts_receivable

http://en.wikipedia.org/wiki/Goods

http://en.wikipedia.org/wiki/Invoice

http://en.wikipedia.org/wiki/Foreign_trade

Fig.1: Pro forma Invoice

14

What to check for in PI?

Pro forma Invoice Number

Pro forma Invoice Date

Payment: type of L/C

Price per quantity

Total amount

Type of shipping(CFR/CIF/FOB)

3.3.1 Note :-

During my internship, I have noted that the price of products differed/

were adjusted according to the type of shipping used. In the above

transaction, the price per kg of SODA-PS was increased due to CFR

charges to Chittagong, Bangladesh.

Usually, CIF was given to the buyers located in China(Shanghai) due

to the close proximity(1 to 2 days).

FOB and CFR were given to the buyers whose proximity from our

ports was far (usually above 15 days).

Shin Hwan Bank of South Korea handles most of Shin Sung

Chemical Co. Ltd. ‘s overseas transactions. It was advised to opt for

FOB and CFR while quoting on the prices of chemicals as the risks

were fairly high.

Cost and Freight (CFR) is an Incoterm. It means that the seller pays

for transportation to the Port of Loading (POL), loading and freight.

The buyer pays for the insurance and transportation of the goods

from the Port of Discharge (POD) to his factory. The passing of risk

15

occurs when the goods pass the ship's rail at the port of shipment

which means that this term cannot be used for airfreight or land

transport and also is inappropriate for most containerized sea

shipments - the term CPT is the appropriate one for these.

Cost, Insurance and Freight (CIF) is a common term in a sales

contract that may be encountered in international trading when ocean

transport is used.

When a price is quoted CIF, it means that the selling price includes

the cost of the goods, the freight or transport costs and also the cost

of marine insurance. CIF is an international commerce term

(Incoterm).

CIF is identical in most particulars with Cost and Freight (CFR), and

the same comments apply, including its applicability only to

conventional maritime transport. In addition to the CFR

responsibilities, the seller under CIF must obtain in transferable form

a marine insurance policy to cover the risks of transit with insurers of

repute. The policy must cover the CIF price plus 10 per cent and

where possible be in the currency of the contract. Note that only very

basic cover is required equivalent to the Institute "C" clauses, and

buyers should normally insist on an "all-risk" type of policy such as

that under the Institute "A" clauses. The seller's responsibility for the

goods ends when the goods have been delivered on board the

shipping vessel. In the guidelines for CIF published in Incoterms 2000

the term "carrier" does not appear and it clearly states "the seller

16

must deliver the goods on board the vessel at the port of shipment"

which makes CIF the incorrect term to use where the seller wishes

their responsibility to end when they deliver the goods into the hands

of a carrier prior to the goods passing the ship's rail at the port of

loading. In the great majority of transactions the more correct term is

CIP. This term is only appropriate for conventional maritime transport,

not ro/ro or international container movements.

CIF ASWP indicates that the supplier is responsible for insuring on

behalf of the buyer until goods arrive and are unloaded at the port of

destination. The opposite to this is FOB (Free On Board), which

means the buyer is responsible for payment to the seller when the

good is loaded onto the ship at the port of origination. ASWP

indicates Any Safe World Port.

Apart from the above poor English it should be carefully noted that

"CIF ASWP" is NOT an INCOTERM of the International Chamber of

Commerce. "ASWP" (any safe world port) may be added as a

separate article in a Purchase Contract but should not be confused

with an INCOTERM.

FOB, is an abbreviation for Free On Board. The term commonly

used when shipping goods, to indicate who pays loading and

transportation costs, and/or the point at which the responsibility and

ownership of the goods transfers from shipper to buyer.

FOB stands for "Free On Board". Indicating "FOB" means that the

seller pays for transportation of the goods to the port of shipment,

17

plus loading costs. The buyer pays freight, insurance, unloading costs

and transportation from the arrival port to the final destination. The

passing of risks occurs when the goods pass the ship's rail at the port

of shipment. Internationally the term specifies the port of loading.


Once the PI was issued and terms and conditions met, I would

receive a call from the buyer asking for certain documents required

by him to open L/C in his country. Such documents are commercial

invoice, packing list, Confidential Credit Report, Details of Shipments

and bill of lading. This is the most important stage during the

transaction. During the provision of the said information, if an error

like spelling mistakes or number mismatch occurs, then, it would not

only create delay in processing not to mention $50.00 fine per error

but also throughout the transaction it would create such a chaos that

in the end, it would be difficult to receive payments from my end.

Once it so happened that the Branch manager of the Korean Bank

did not “personally” sign on the Credit report of my company. The

document was sent to the Bangladesh Bank where it was promptly

rejected. This caused delay in payment because everyone in Korea

assumed that the L/C would be delivered in a week’s time; but it

never did. When an inquiry was launched, we soon realized the fault

was actually with the bank, and not with us. Different banks follow

different rules to open L/C. And we must adhere to it.

18

3.4.1 Note :-

During my stay with the company, the buyer from Bangladesh has

asked us to send a certificate of weight and measurement list. I did

not understand the need for such requirement because the packing

list document contained the exact information which was mentioned

there. (Refer to fig.9 and fig.10)

Fig.2: Credit Report

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Letter of Credit (L/C)

Fig.3: Letter of Credit

20


21


22


23


24

What to check for in a L/C?

Credit Number

The amount

Expiry Date

Issue Date

Type of drafts: AT SIGHT/ USSANCE

Description of goods

Type of documents required

Amendments if any

3.4.2 Note:- (refer to fig.3)

It was very important for me to check the issue and expiry dates

because if the applicant does not pay the bank in time, then, my

company was liable to pay for the interests.

For example, AT SIGHT indicates that the amount MUST be paid by

the applicant within 30 days of issue of L/C. USSANCE indicates that

the period of 120 days are given to the applicant to make the

payment.

If the applicant fails to pay the payment within the stipulated date,

then, my company had to file for the bankruptcy with the Korean bank

as no payment was made against the goods sold. This created a

negative impression with the banks and the company would lose its

credibility with Shin Hwan Bank.

There was a case with my company with one of the companies it was

dealing with. Because of holidays in Bangladesh and the slow, I

mean, really slow document processing power of banks in

Bangladesh, my company had to actually ask for the Grace period to

25

extend the expiry date of the L/C. Because of the holidays in

Bangladesh, and weekends being an off-day for Korean banks, the

company in Bangladesh could not make the payment on time.

The following conversation took place then:

Korean company: Did you make the payment?

Foreign company: Yes, we did. I made the payment to the bank 4

days ago.

Korean company: My bank tells me that the money hasn’t arrived

yet.

Foreign company: No, no, that’s not possible.

Korean company: The expiry date is 5 days away!!! L/C is closing on

Us!

Foreign company: I will fax you the copy of the payment receipt.

Korean company: That will not help. I will ask for a grace period to

extend the expiry date by a week.

Foreign company: No issues. That would do. I will inquire with my

bank.

3.4.3 Note:- (Referring to fig.6,7)

Another interesting fact is that the number and spelling errors are not

permitted in L/C. In countries like India and Bangladesh, any errors in

the L/C would mean money. The banks charge $50.00 per errors.

That is why it is necessary to confirm the numbers and names before

preparing the L/C. Countries like China do not charge for minor

mistakes.

26

3.4.4 Note:- (Referring to fig.4)

Different banks ask for various kinds of documents

(originals/duplicates) of varying numbers. The important documents

would be commercial invoice, bill of lading, packing lists, shipping

documents, original copies of L/C, etc.

The term “Duplicate” in the L/C would mean -> 2 copies of the

originals.

Sometimes, the banks ask for the signatures in writing to prevent

fraud.

One of the most important tip during this particular transaction was with the

reference to Fig.4 , clause No.13. This statement means that since Bangladesh

is an Islamic nation, no vessel of Israel origin and no shipments of Israel origin

must enter the Bangladesh ports.

3.4.5 Note:-

Letter of credit was the safest way to have transactions with buyers

whom we have little or no information/credibility. The disadvantage is

that it takes an awful long time to get work done. L/C requires tons of

documents both for the applicants as well as for the beneficiary. If not

read carefully, getting payment can be one’s nightmare in the world of

globalization where not only the movements of physical goods have

been shortened but also the process of inquiry to the process of

payment have been shortened due to the technological advances

such as satellites and internet.

The countries where L/C base was used were China, Vietnam and

Bangladesh.

27

For companies whose credibility has been long defined through

histories of faithful past transactions, my company uses D/P At Sight

system of payment. The company located in Sri Lanka is a Korean

company and my company makes payments through D/P system.

The advantage is that except Pro forma Invoice, no other documents

are required to obtain payments and to load the ship.

The company also used T/T base of payment which was the quickest.

Facts about types of payment system

A letter of credit is a document issued mostly by a financial

institution which usually provides an irrevocable payment undertaking

(it can also be revocable, confirmed, unconfirmed, transferable or

others e.g. back to back: revolving but is most commonly

irrevocable/confirmed) to a beneficiary against complying documents

as stated in the Letter of Credit. Letter of Credit is abbreviated as an

LC or L/C, and often is referred to as a documentary credit,

abbreviated as DC or D/C, documentary letter of credit, or simply as

credit (as in the UCP 500 and UCP 600). Once the beneficiary or a

presenting bank acting on its behalf, makes a presentation to the

issuing bank or confirming bank, if any, within the expiry date of the

LC, comprising documents complying with the terms and conditions

of the LC, the applicable UCP and international standard banking

practice, the issuing bank or confirming bank, if any, is obliged to

honor irrespective of any instructions from the applicant to the

contrary. In other words, the obligation to honour (usually payment) is

shifted from the applicant to the issuing bank or confirming bank, if

28

any. Non-banks can also issue letters of credit however parties must

balance potential risks.

The LC can also be the source of payment for a transaction, meaning

that an exporter will get paid by redeeming the letter of credit. Letters

of credit are used nowadays primarily in international trade

transactions of significant value, for deals between a supplier in one

country and a wholesale customer in another. They are also used in

the land development process to ensure that approved public

facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The

parties to a letter of credit are usually a beneficiary who is to receive

the money, the issuing bank of whom the applicant is a client, and the

advising bank of whom the beneficiary is a client. Since nowadays

almost all letters of credit are irrevocable, (i.e. cannot be amended or

cancelled without prior agreement of the beneficiary, the issuing bank

and the confirming bank, if any). However, the applicant is not a party

to the letter of credit. In executing a transaction, letters of credit

incorporate functions common to giros and Traveler's cheques.

Typically, the documents a beneficiary has to present in order to avail

himself of the credit, are commercial invoice, bill of lading, insurance

documents. However, the list and form of documents is open to

imagination and negotiation and might contain requirements to

present documents issued by a neutral third party evidencing the

quality of the goods shipped.

29

How it works

Imagine that a business called the WAPRO from time to time imports

steel from a business called MIL, which banks with the India Business

Bank. WAPRO holds an account at the Commonwealth Financials.

WAPRO wants to buy $500,000 worth of merchandise from MIL, who

agree to sell the goods and give WAPRO 60 days to pay for them, on

the condition that they are provided with a 90-day LC for the full

amount. The steps to get the letter of credit would be as follows:

WAPRO goes to The Commonwealth Financials and requests a

$500,000 letter of credit, with MIL as the beneficiary.

The Commonwealth Financials can issue an LC either on approval of

a standard loan underwriting process or by WAPRO funding it directly

with a deposit of $500,000 plus fees between 1% and 8%.

The Commonwealth Financials sends a copy of the LC to the India

Business Bank, which notifies the MIL that payment is ready and they

can ship the merchandise WAPRO has ordered with the full

assurance of payment to them.

On presentation of the stipulated documents in the letter of credit and

compliance with the terms and conditions of the letter of credit, the

Commonwealth Financials transfers the $500,000 to the India

Business Bank, which then credits the account to the MIL by that

amount.

Note that banks deal only with documents under the letter of credit

and not the underlying transaction.

30

Many exporters have misunderstood that the payment is guaranteed

after receiving the LC. The issuing bank is obligated to pay under the

letter of credit only when the stipulated documents are presented and

the terms and conditions of the letter of credit have been met

accordingly.

T/T

The term Telegraphic Transfer or Telex Transfer, often abbreviated

to 'TT', is most often used in UK Banking to refer to a CHAPS

transfer; that is a payment made via the Clearing House Automated

Payments System.

The term is also used to describe other electronic funds transfer

methods and, incorrectly, BACS (Bankers Automated Clearing

Services) and AFTS (Automated Funds Transfer System) payments.

Wire Transfer

Wire transfer is a method of transferring money from one entity to

another. A wire transfer can be made from one entity's bank account

to the other entity's bank account, and by a transfer of cash at a cash

office.

How it works

Bank wire transfers are often the most expedient method for

transferring funds between bank accounts. A bank wire transfer is

effected as follows:

31

The sending bank transmits a message, via a secure system (such

as SWIFT or Fedwire), to the receiving bank, requesting that it effect

payment according to the instructions given.

The message also includes settlement instructions. The actual

transfer is not instantaneous: funds may take several hours to move

from the sender's account to the receiver's account.

Either the banks involved must hold a reciprocal account with each

other, or the payment must be sent to a bank with such an account,

or a correspondent bank, for further benefit to the ultimate recipient.

SWIFT

The Society for Worldwide Interbank Financial Telecommunication

("SWIFT") operates a worldwide financial messaging network.

Messages are securely and reliably exchanged between banks and

other financial institutions. SWIFT also markets software and services

to financial institutions, much of it for use on the SWIFTNet Network,

and ISO 9362 bank identifier codes are popularly known as "SWIFT

codes".

The majority of international interbank messages use the SWIFT

network. As of April 2006 SWIFT linked almost 8,000 financial

institutions[1] in 205 countries. SWIFT does not facilitate funds

transfer. Financial institutions would need a corresponding banking

relationship for financial transactions.

32

Commercial Invoice

Fig.8: Commercial Invoice

A commercial invoice is document used in foreign trade. It is used

as a customs declaration provided by the person or corporation that

is exporting an item across international borders. Although there is no

standard format, the document must include a few specific pieces of

information such as the parties involved in the shipping transaction,

the goods being transported, the country of manufacture, and the

Harmonized System codes for those goods. A commercial invoice

33

must also include a statement certifying that the invoice is true, and a

signature.

A commercial invoice is primarily used to calculate tariffs

What to check for in CI?

Number of document of credit = L/C

Given information = pro forma invoice

Notify parties

Country of origin mark

Amount

3.4.6 Note:-

It is important to note that in most case, buyers have asked to

undervalue products imported to their countries due to the heavy tax

structures of import duties. Although, customs officers are trained to

investigate into such matters, the clause(last line) of fig.7 clearly

states the same.

In such cases, for example, if the total amount was $11000.00, then,

they would send the L/C of $6000.00. The balance amount of

$5000.00 is to be remitted through T/T or through wire transfer to

some other account where tracing of foreign exchanges are difficult.

34

Packing List

Fig.9: Packing List

Country of Origin - Made in Korea(refer fig.8)

When shipping products from one country to another, the products may have to be marked with country of origin, and the country of origin will generally be required to be indicated in the export/import documents and governmental submissions. Country of origin will affect its admissibility, the rate of duty, its entitlement to special duty or trade preference programs, antidumping, and government procurement.

35

http://en.wikipedia.org/wiki/Government_procurement

http://en.wikipedia.org/wiki/Antidumping

Fig.10: Country of Origin

Today, many products are an outcome of a large number of parts and pieces that come from many different countries, and that may then be assembled together in a third country. In these cases, it's hard to know exactly what is the country of origin, and different rules apply as to how determine their "correct" country of origin. Generally, articles only change their country of origin if the work or material added to an article in the second country constitutes a substantial transformation, or, the article changes its name, tariff code,

36

character or use (for instance from wheel to car). Value added in the second country may also be an issue.

What to check for in PL?

Country of origin

Packing type: eg. Pallets, PVC drums/ iron drums etc

L/C number, date of departure

Name of the vessel

Name of departing port, arriving port

Confirm calculations for freight

3.4.7 Note:-

Referring to Fig.9, usually, the rates for shipping is calculated via

CBM(volume). Each shipping company may have different rates.

For instance, the packing of Shin Sung Chemical Co. Ltd. is done by

a PVC/IRON oval container of 100kg, 200kg and 25 kg PVC

rectangular cans with pallets. Upon loading, the pallets sizes are

considered and the prices for the volume are calculated as follows:

Fig.11: Packing list Calculations

37

According to the Packing List(fig.9), the actual volume occupied by

10,000kg of 67 drums are 10,000 CBM. But due to the volume

constraints of containers, the calculated volume became 11,530CBM.

The freight rates for 67 drums would be calculated based upon

11,530.

i.e. [Rate/CBM in $] X [11530(CBM)] = [Amount in $]

Fig.12: Weight and Measurement List

38


The next step is to get the goods packed(to pallets so that they don’t

move around in the container) and load onto the ship.

Shin Sung Chemical Co. Ltd. outsources C&F(clearing and

forwarding agents) who arranges for ships and declares the goods to

be exported to customs on our behalf. The declaration is usually done

1 or 2 days before the departure date.

The company uses Hapag-Lloyd to ship goods to Bangladesh and

Shanghai.

Bill of Lading

A bill of lading (also referred to as a BOL or B/L) is a document

issued by a carrier, e.g. a ship's master or by a company's shipping

department, acknowledging that specified goods have been received

on board as cargo for conveyance to a named place for delivery to

the consignee who is usually identified. A through bill of lading

involves the use of at least two different modes of transport from

road, rail, air, and sea. The term derives from the noun "bill", a

schedule of costs for services supplied or to be supplied, and from

the verb "to lade" which means to load a cargo onto a ship or other

form of transport.

Types of Bill of Lading

Straight bill of lading

This bill states that the goods are consigned to a specified person

and it is not negotiable free from existing equities, i.e. any endorsee

acquires no better rights than those held by the endorsor. So, for

39

example, if the carrier or another holds a lien over the goods as

security for unpaid debts, the endorsee is bound by the lien although,

if the endorsor wrongfully failed to disclose the charge, the endorsee

will have a right to claim damages for failing to transfer an

unencumbered title.

Also known as a non-negotiable bill of lading.

Order bill of lading

This bill uses express words to make the bill negotiable, e.g. it states

that delivery is to be made to the further order of the consignee using

words such as "delivery to A Ltd. or to order or assigns".

Consequently, it can be endorsed by A Ltd. or the right to take

delivery can be transferred by physical delivery of the bill

accompanied by adequate evidence of A Ltd.'s intention to transfer.

Also known as a negotiable bill of lading.

Bearer bill of lading

This bill states that delivery shall be made to whosoever holds the bill.

Such bill may be created explicitly or it is an order bill that fails to

nominate the consignee whether in its original form or through an

endorsement in blank. A bearer bill can be negotiated by physical

delivery.

40

What to check for in B/L?

B/L Number

Name of vessel

Vessel Number

Date of shipping

Seal Number

3.5.1 Note:-

Seal Number is the number printed on top of the container lock to

prevent tempering (smuggling/sabotaging).

41

Bill of Lading

Fig.13: Bill of Lading

42


43


44


From the moment where the goods have been shipped on board the

vessel and awaiting to be departed, the beneficiary is entitled to

collect the payment against the goods from the bank.

The documents mentioned in fig.4 must be produced before the bank

to receive the payment.

Once the payment has been made to the company’s account, it was

my job to confirm the payment and send a note of appreciation and

gratitude to the buyer for having successfully ended another business

transaction and hope for better opportunities and deals in future.

3.6.1 Summary of Business Process

After a contract is concluded

between buyer and seller, buyer's

bank supplies a letter of credit to

seller.

45

Seller consigns the goods to a

carrier in exchange for a bill of

lading.

Seller provides bill of lading to

bank in exchange for payment.

Seller's bank exchanges bill of

lading for payment from buyer's

bank. Buyer's bank exchanges

bill of lading for payment from

buyer

Buyer provides bill of lading to carrier and takes delivery of goods.

3.6.2 Summary of Observations

46

1. Business transactions done manually. The documents related to each business trading were stored in a file with reference numbers.

2. Most transactions were done over phone calls.(international business included)

3. Documents like L/C, P/I, P/L, B/L, C/R, C/I etc were emailed and couriered.

4. Need for constant updating regarding status of orders/shipments through constant phone calls with superiors and sub-ordinates.

5. Work load per person was quite high due to concentration of power and one person handled variety of work.

6. In order to keep every employee of the same department at constant pace, a massive central white board was erected which keeps track of various shipments/order status.

7. The board contained information about the current order, buyer’s information, contact details, and the name of the concerned person in charge, and a deadline to meet the objective.

8. The company does not have a web-site.

9. The company has the history of long term relationship with buyers both from Korea and international markets.

47

10. The buyers come to know about the company through word-of-mouth publicity, through acquaintances, exhibitions and trade fairs (COEX, Chem-Spec), through KOTRA, KITA.

11. Had to visit India with the company President to evaluate a buyer, study the credibility and finalize the deal (pricing).

12. Need to change pricing policy according to the type of shipments(CFR/FOB/CIF)

13. The provision of a Certificate of Weight and Measurement was requested by a buyer which made no sense.

14. Getting payment was a big headache with L/C. Different types of documents and certificates were required to produce before the SC/Jaeil Bank of Korea. The number of copies, types(original/duplicate) etc need to match as per L/C.

15. Had to travel 4 times to get the right documents. Different banks require different documents.

16. Getting B/L was easy as the company had the C&F agents. The goods were loaded from dock to the ship within a day.

17. Port and dock clearance papers were issued within a day.

18. Faced a problem with a foreign buyer because of delay in payment. Had to ask the Bank to extend the expiry date of L/C to prevent filing of bankruptcy.

19. Had to pay $50 per error at the bank because of incorrect spelling errors.

20. Transaction done through L/C at Sight with buyers located in India, Bangladesh, Vietnam and China.

48

21. Transaction done through D/P at Sight with a buyer in Sri Lanka.

22. Because of tax related issues with buyers, a part of payment was done through L/C (taxable amount) and a part of payment was done through T/T. (i.e. undervalue pricing system)

23. Container Seal number was faxed to the buyer.

24. Pricing for dyestuff was expensive than other existing companies.

25. Cumbersome to calculate CBM every time the shipments are dispatched.

26. Most of employees were veterans. Have been working with the company for at least 5 years.

27. Only 3 employees knew communication skills in English.(President included)

28. Payments were not the greatest part which was compensated by handsome bonus, frequent M/T, and the system of Korean traditional work-culture.

29. Small facility of employee strength of 20.

30. Veteran skilled technician and workers of high productivity and know-how.

31. Easy accessibility to the company via public transport system such as Seoul Metro and bus, taxi services.(Located in Siheung Industrial Development Zone)

49

32. The company is not ISO9001, ISO14001 certified company.

33. The company carries KQ, KS certificate.

34. There was President’s involvement at every stage of business.

35. He was updated regularly even during his leave/foreign tour/business trip.

36. President always says “ Palli Palli!!!” means, get the work done “quickly quickly”

37. There was an issue with the Korean Bank we were operating with because the Bank manger failed to send the Certificate of Credit Report to the foreign buyer. The certificate was required by the buyer to obtain L/C from the Bank.

38. The Bank Manager was the President’s Junior. (Korean society is structured around Senior-Junior hierarchy system). As such he felt there was no need to send the credit report which resulted in delay.

39. Serious work cultures. Koreans are “workaholic”. To able to adapt to Korean work culture will take some time.

40. Being a vegetarian, going to dinner-get-together every fortnight in Korea was a heavy burden for me.

41. Even after heavy drinks(till 4am to 5 am), the employees showed up for work on time.(with their eyes swollen)

50

42. The foreign buyer was late by 2 hours for the meeting in Korea.

43. Got lot of pounding from my supervisor for errors in documentation, reports, slow performance etc during first 3 weeks.

44. Most of binding between employees and employers take place over get-togethers. Also, the work knowledge is gained through Seniors during this time.

45. Foreign buyers felt very awkward and took time to get used to this kind of culture.

51

3.6.3 CONCLUSION FROM OBSERVATIONS

1. Constant communication to update employees was very

tiresome.

2. Lot of paper work involved inside the organization.

3. Working hours often extended beyond the fixed time frame.

4. Employees under pressure to meet the dead line.

5. Being a trading company, lacked English communication skills.

6. Because of its long history of business relations, every order

was handled with professionalism.

7. No “how to?” but “is it done?” or “why is it still not done?”

8. Because of very strong tie-ups between Korean suppliers and

agents within Korea, orders were able to meet its deadlines .i.e

Korean one phone call policy.

9. President is the founder of the company. Very energetic man

and has his nose in every activity of the company.

10. Business transactions and records are still maintained in

an old fashioned and traditional way.

11. The amount of trading done per year is still not large

enough to incorporate a centralized software system.

12. Because of long standing relationship with the Korean

C&F agents, just a phone call is sufficient enough to get

documents required. (Convenience)

13. Overall, it is a well established company of great potential

due to short lead-time and can fulfill the customer’s

requirements.

52

14. Should not “always” join the dinner-get-together because

all they do is eat “non-veg” food and drink.

15. Showed dedication and responsibility towards work no

matter what happens previous day.

16. Need for improvement in understanding and respecting

foreign cultures were required.

Koreans only follow” When is Rome, do what Romans do”.

53

3.6.4 RECOMMENDATIONS

1. Employee training program to understand the culture of buyers

through courses in English.

2. Understanding the customer’s requirement and providing a

comfortable stay during their visit to Korea.

3. Integration of globalizations and phase-wise removal of Korean

Senior-Junior system within the organizations.

4. Software upgrades so that the President can have a better

understanding of the current status of business through web

instead of having him to call upon his sub-ordinates every now

and then.

5. Better tie-ups with KOTRA and KITA to expand business in

India and Europe.

6. Expanding business by manufacturing some of key

components of final products(dye stuff) so that in 5 to 10 years

down the line, the company can be competitive enough to face

the challenges in pricing.

7. Request the Bangladesh buyers to abolish the need for

Certificate of Weight and Measurement.(Packing List contains

the same information)

8. Even though the company has the long history of business

relations with foreign buyers, it still uses L/C system. Both the

parties must now take a step to trust each other and use

SWIFT or or D/P T/T base so that the dealings can go a lot

easier.

54

9. The company must construct a web-site in order to grow and

become a global player.

10. The company only has short term goals as of now. The

President must prepare long term goals for himself and his

company to face challenges ahead in 10 years time.

11. The company should throw away the goal of “buying and

selling” and embrace the long term relationship with buyers.

55

Chapter 4

Korean Trade Centers

4.1 KOTRA

KOTRA, initially the

Korea Trade

Promotion

Corporation, were established in 1962 as a national trade promotion

organization. Since then, it has successfully facilitated Korea's rapid export-led

economic development through various trade promotion activities such as

overseas market surveys and business matchmaking.

In August 1995, cross-border investment promotion and support for technological

and industrial cooperation projects was added to KOTRA's mandate, and it was

renamed the Korea Trade-Investment Promotion Agency(KOTRA).

KOTRA currently operates Invest KOREA, the national investment promotion

agency. Originally initiated as the Korea Investment Service Center(KISC) in

1998, the agency was relaunched as Invest KOREA in November 2003 to

support foreign investors by offering more powerful incentives and an expanded

range of services.

KOTRA is now well-equipped to pursue its twin mandates of trade and

investment promotion to enhance national prosperity and competitiveness, with

the ultimate goal of positioning Korea as the business and economic hub of

Northeast Asia. With its long-term experience and expertise, KOTRA serves and

assists all interested parties worldwide to do business with Korea.

56

In order to execute its mandates more efficiently, KOTRA has opened an

extensive worldwide network of overseas Korea Trade Centers(KTC).

As of 2007, 93 KTCs are operating in 68 countries.

And to take maximum advantage of the era of E-Commerce, KOTRA launched

the interactive Internet portal sites of INVEST KOREA Online(formerly Cyber

KISC) in 2003 and BuyKorea in 2004, respectively.

KOTRA Academy was launched in 2003 as a professional learning center for

international business. In the long run, KOTRA's well-trained trade and

investment manpower, armed with relevant theoretical and practical knowledge,

will bolster the nation's trade and investment infrastructure.

In-depth Research and Seminars

Through the analysis of the information gathered by its local and overseas

networks, KOTRA draws insightful conclusions on a variety of trade and

investment issues that help firms to respond promptly to the rapidly-changing

global economic environment. With the help of Korea Trade Centers at home and

abroad, the research teams operating at KOTRA's head office issue publications

as well as hold seminars on world trade regimes and regional market conditions.

Trade Information Library

The Trade Information Library at KOTRA's headquarters offers current

information on each country's market and investment conditions gathered

through its Korea Trade Centers. It provides an extensive range of resources

such as business directories, tariff schedules, periodicals and much more.

Computer access is readily available at the Library, enabling users to quickly

access the information they require.

Overseas Investment Support Center

While inbound investment promotion is led by Invest KOREA, outbound

investment support is provided by the Overseas Investment Support Center. The

center offers Korean companies detailed information on each country's

investment conditions and procedures. For those foreign governments eager to

57

attract Korean investors , the center helps hold investment promotion seminars in

Korea by arranging the participation of relevant domestic companies.

Business Matchmaking

On request, KOTRA introduces overseas buyers to the most appropriate

business partners in Korea through our wide-ranging inquiry network as well as

business meetings held year round. KOTRA provides buyers visiting Korea with

assistance in arranging business meetings with Korean companies and collecting

information on Korean products and suppliers. KOTRA also dispatches groups of

Korean exporters abroad to explore global markets with the help of local Korea

Trade Centers.

International Exhibitions

KOTRA organizes international exhibitions in Korea as well as large-scale

Korean product shows in strategic markets abroad. In addition, KOTRA arranges

the participation of domestic companies in similar events overseas through its

"Korea Pavilions". While international trade fairs remain an effective way of

displaying the nation's high-quality products and technologies, KOTRA will step

up its efforts to make the occasions more specialized and sophisticated.

e-Trade

KOTRA operates the Cyber Business Center at its Seoul headquarters where

overseas buyers can hold online business meetings with domestic companies

regardless of time and location. Not only do these cyber business meetings offer

companies preparatory partner searching opportunities, but they also enable

business interactions to continue during difficult times such as the Iraqi war and

the SARS epidemic when normal travel is impeded.

58

4.2 KITA

Over the past half-century, KITA has grown into a trade

promotion agency representing Korea. KITA provides a

variety of direct services such as business arrangements and trade consulting. It

also assists trading companies in resolving grievances by reporting them to

relevant government authorities. KITA will continue to enhance public awareness

on the significance of trade in order to foster and promote Korea's commercial

potential with the global community.

It has been and will continue to be in the 21st century the driving force behind

Korea's international trade by building the necessary infrastructure through the

training of trade experts, establishing cyber trade infrastructure, hosting

international special exhibitions, and implementing new trade strategies.

Teaming up with member companies in the 21st century.

KITA enters the new century hand-in-hand with its members by developing

diverse services for the benefit of its members. KITA supports trading firms by

providing core projects with a competitive edge.Fostering trade experts who will

lead Korea's international trade in the 21st century.

Located on the 4th of COEX, the World

Trade Academy boasts the best faculty,

cutting-edge computer labs, language

labs, and classrooms. It is also proud of

supplying the trading industry annually

with over 10,000 new trade

professionals enrolled in a selection of 200 courses. These professionals will be

the future leaders of Korea in an era of information and globalization.

59

Building Cyber Trade Infrastructures.

In preparation for the coming cyber trade era, KITA is constructing infrastructure

that will allow member companies to conduct cyber trade with ease and at a low

cost. Hosting International Special Exhibitions and International Conferences.

KITA attracts overseas buyers and provides opportunities to member companies

to do business with them. KITA fosters world-class, large-scale special

exhibitions and international conferences by making full use of the COEX

infrastructure.

Implementing New Trade Strategies for the 21st Century.

KITA will extend the common understanding of trade, previously thought to be

only transactions in commodities, to a broader definition that includes services,

such as tourism, finance, and trade infrastructure. It is committed to making

Korea a hub of international business by developing new strategies and avenues

of trade. KITA's goal is to create a Korea where goods, information, people and

capital from all over the world interact in a free market environment.

60

Chapter 5

Conclusion

The Internet has redefined the concept of national borders,

accelerating the integration of the global market. The free flow of

goods, capital and labor among countries is driving the fierce global

competition that presents enormous opportunities as well as great

threats. Today, it is such intangible values as human knowledge and

creativity that count most, and it is in these areas that Shin Sung

Chemical Co. Ltd. has immense potential.

Trade Shows and conferences still remain the most effective way for

companies to enter new markets. The advent of the web and internet

has changed the way business is done, bringing the world closer and,

at the same time, providing new challenges for business-to-business,

face-to-face events everywhere.

Even though it’s a cliché — we are indeed living in a global economy!

Trade show, corporate event and conference organizers be they for-

profit or not-for–profit, must deal with this important growth sector.

International business continues to be based on relationships and

“face-to-face” encounters. Most show companies and associations

producing their own shows and events cannot afford staff dedicated

exclusively to international relations.

61

In the end, I would like to add that not only was I satisfied with the

experience and knowledge I have gained during my internship but

honored and privileged for having an opportunity to contribute both to

the organization as well as to the world of international trade, bringing

the world a step closer with every business deals.

62

Chapter 6

Product List: Surfactants (Surface Active Agents)

The following chemicals are used to treat cotton:

Trade Name Characteristics

1. NEW-SCLEAN-230 Low foaming, scouring agents

2 SCLEAN-HS Scouring agents for synthetic fiber

3 SCBILER-A Non-silica stabilizing agents

4 PENET-OT Penetrating and leveling agents

5 LEVELIN-BS Leveling agents for reactive dyestuff

6 SCLEAN-530 Chelating agents

SCLEAN-1500

SCLEAN-2500

7 SCLEAN-VS Soaping agents for cotton

8 SCLEAN-SR Soaping agents

9 SCLEAN-HS500 Soaping and dyestuff anti-soiling

agents

10 NEOFIX-CT Fixing agents for reactive dyestuff

NEOFIX-CR

11 SOFTER-220 Low foaming type softening agents

12 SOFTER-230 Softener for synthetic & natural fibers

13 SOFTER-250 Softener for cotton & T/C

14 SILICONE-NS Silicone softener

15 SILICONE S-600 Softening agents for all fibers

63

NEW SILICONE SF

200S

16 SOFTEX-PT 100 Softener for all fibers in dyeing

process

17 BILIZER-K Hydro peroxide neutralizer

NEOSOL-BH

18 SOFTEX-700 Cheese oiling agents

19 ANTIBA-BH Antibacterial finishing agents

20 SODA-PS Soda-ash substitution

21 SOFTEX-PM Ant creasing agents

22 SCLEAN-2000 Requesting agents

23 BIOTEX-PIL Enzyme

64

Chapter 7

CHEMICAL AUXILIARIES

NEW SCLEAN-230

Low foaming, scouring agents

Properties *NEW SCLEAN-230 has good stability to acid &

alkali.

*NEW SCLEAN-230 combined with a high scouring

effect and a good wetting

power.

*NEW SCLEAN-230 has excellent emulsifying

properties for several oil and

fats.

*NEW SCLEAN-230 has excellent scouring effect for

synthetic and natural

fibres

*NEW SCLEAN-230 A.P.E.O phenol free

Type of

product

Special anion & nonion compounds

Ionic

Character

Nonion/Anion

Appearance Light yellow clear liquid

pH (5% sol’n) 7.0 ± 1.0

65

Method of

application

Generally : 2.0 – 3.0 g/l

Packing 100Kg pvc drum, 150Kg pvc drum

SCLEAN-HS

Scouring agents for synthetic fiber

Properties *SCLEAN-HS removes many kinds of wax &oil on

synthetic fiber.

*SCLEAN-HS has good stability to acid & alkali.

*SCLEAN-HS combined with a high scouring effect

and a good wetting power.

*SCLEAN-HS has excellent emulsifying properties for

several oil and fats.

*SCLEAN-HS has excellent scouring effect for

synthetic fibres and low

foaming.

Type of

product

Special anion & nonion compounds

Ionic

Character

Anion

Appearance Transparent liquid

pH (5% sol’n) 7.0 – 8.0

Method of

application

*Generally : 2.0 – 4.0 g/l

*NaOH : 15g/l


SCBILER-A

66

Non-silica stabilizing agents

Properties *SCBILER-A stabilized on high temperature for three

months, if separated.

Please stir and use.

*SCBILER-A as a non-silica agents, there is no

damage on machine and

fabric, which may arise from using of silica.

*SCBILER-A case to remove impurities on cotton,

and no reattachment of

impurities.

*SCBILER-A by the reaction with metallic ion on the

bath, restrains from the activation of Fe ion.

Type of

product

Special polymer compounds

Ionic

Character

Anion

Appearance Light yellowish clear liquid

pH (5% sol’n) 7.0 ± 0.5

Method of

application

*Winch : Liquor ratio : 1 : 10 – 20

H2O2 (35%) : 5~7g/l

NaOH (38°Be) : 5~7g/l

SCBILER-A : 2~3g/l

*Package : Liquor ratio : 1 : 5 ~ 1 : 10

H2O2 (35%) : 7~10g/l

NaOH (38°Be) : 1~2g/l

SCBILER-A : 2~3g/l

67

*Jigger : Liquor ratio : 1 : 2 ~ 1 : 1

H2O2 (35%) : 7~14g/l

NaOH (38°Be) : 10~15g/l

SCBILER-A : 5~7g/l

※ To promote bleaching effectiveness,

it is better to add NEOSOL-BH and to be more

stabilized,

and SCLEAN-1500


PENET-OT

Penetrating and levelling agents

Properties *PENET-OT dissolved in cold water.

*PENET-OT stability against acid, alkali and all kinds

of peroxide and

reduction agent.

*PENET-OT full effectiveness of anti-contamination

thanks to superior

emulsion and dispersing power.

*PENET-OT by using on the reactive dyestuff and

direct dyestuff, first

adhesion power is distinctive. Therefore, equalized

and clear color is obtained.

Type of

product

Sodium dioctyl sulfosuccinate

Ionic Anion

68

Character

Appearance Non-color clear liquid

pH (5% sol’n) 7.0 ± 0.5

Method of

application

*Preventing agents of precipitation : 1.5 – 2.0 % o.w.f

*Penetrating and levelling agents : 1.0 – 1.5 % o.w.f


LEVELIN-BS

Levelling agents for reactive dyestuff

Properties *LEVELIN-BS dissolved in cold and hot water.

*LEVELIN-BS levelling power is distinctive when

dyed by reactive

dyes for the cotton or T/C, especially for the

mercerized yarn knit.

*LEVELIN-BS avoids precipitaion of different ionic

dyestuff.

*LEVELIN-BS no phenomenon of dyestuff flock due

to metal

chelation power.

*LEVELIN-BS levelled and clear color is obtained.

Type of

product


Ionic

Character

Nonion

69

Appearance Non-color clear liquid

pH (5% sol’n) 7.0 ± 0.5

Method of

application

*When applied as a precipitaion protection agents

:2.0～3.0% o.w.f between dyestuff and dyestuff

*as a levelling agents

:1.0～3.0% o.w.f 4 or 5 minutes before dyes pouring


SCLEAN-530

Chelating agents

Properties *SCLEAN -530 dissolved in cold and hot water

*SCLEAN -530 avoids recontamination

*SCLEAN -530 dispersing, levelling effectiveness

*SCLEAN -530 good for white bleaching

*SCLEAN -530 stability against heat for cheese

dyeing and all kinds of

package dyeing .

Type of

product


Ionic

Character

Nonion


pH (5% sol’n) 8.0 - 9.0

Method of

application


70


SCLEAN-1500

Chelating agents







package dyeing

Type of

product


Ionic

Character

Anion


pH (5% sol’n) 8.0 ± 1.0

Method of

application



SCLEAN-2500

Chelating agents


71






package dyeing

Type of

product

Special polymer and inorganic compounds

Ionic

Character

Anion

Appearance Clear liquid

pH (5% sol’n) 7.0 ± 0.5

Method of

application



SCLEAN-VS

Soaping agents for cotton

Properties *SCLEAN-VS has a good soaping power for excellent

good wetting power &

penetrating power.

*SCLEAN-VS has low foaming for continuous

processing.

72

*SCLEAN-VS have no color changed & improving

soaping power during processing.

Type of

product

Special anionic

Ionic

Character

Anion

Appearance Yellow liquid

pH (5% sol’n) 8.0 ± 1.0

Method of

application



SCLEAN-SR

Soaping agents

Properties *SCLEAN -SR dissolved in cold and hot water

*SCLEAN -SR avoids recontamination

*SCLEAN -SR dispersing, levelling effectiveness

*SCLEAN -SR stability against water which include

many kinds of

metal ion.

73

Type of

product


Ionic

Character

Anion

Appearance Transparent liquid

pH (5% sol’n) 8.0 ± 1.0

Method of

application



SCLEAN-HS500

Soaping and dyestuff anti-soiling agents

Properties *SCLEAN –HS500 dissolved in hot water

*SCLEAN –HS500 as anti-soiling agents of reactive

dyestuff and acid

dyestuff, it protects from soiling into the other fibers

during the soaping

process.

*SCLEAN –HS500 avoids contamination of stripe

74

fiber and printing fiber.

*SCLEAN –HS500 promotes fastness and clear the

color by removing the

unfixed dyes.

Type of

product

Polyoxyethylene alkyl ether

Ionic

Character

Nonion

Appearance Light brown liquid

pH (5% sol’n) 6.5 ± 0.5

Method of

application


※ Used in accordance with the most suitable soaping

temperature


NEOFIX-CT

Fixing agents for reactive dyestuff

Properties *NEOFIX-CT dissolved in cold and hot water.

*NEOFIX-CT full fixing effectiveness for to knitting

fibres such as T/C, cotton,

towel and woven fibres as well.

*NEOFIX-CT no color changed.

*NEOFIX-CT no affect of softness of fibres.

Type of

product

Polyamine compounds

Ionic

Character

Cationic

75

Appearance Light yellowish clear liquid

pH (5% sol’n) 5.0 ± 1.0

Method of

application

*Light color : 0.25 – 0.5 % o.w.f

*Medium color : 0.5 – 1.0 % o.w.f

*Dark color : 1.0 – 2.0 % o.w.f


SOFTER-220

Low foaming type softening agents

Properties *SOFTER-220 dissolved in cold and hot water.

*SOFTER-220 low foaming type.

*SOFTER-220 strong penetrasting power and

superior softness especially foer woven fibers.

*SOFTER-220 stability against heat, and no color

changed during process.

*SOFTER-220 provides convenient and economic

working condition.

Type of

product

High fatty acid ester

Ionic

Character

Weak cation

76

Appearance Viscose liquid

pH (5% sol’n) Weak acid

Method of

application

Generally : 3.0 – 5.0 % o.w.f


SOFTER-230

Softener for synthetic & natural fibers

Properties *SOFTER-230 has a excellent solubility in cold

water.

*SOFTER-230 superior softening power for the

polyester & T/C.

*SOFTER-230 promotes basting power.

*SOFTER-230 provides the feeling of silky touch.

*SOFTER-230 equalized softness effect .

Type of

product

Polyamide derivative

Ionic

Character

Weak cation

Appearance Light yellowish liquid


77

Method of

application

Generally : 3.0 % o.w.f


SOFTER-250

Softener for cotton & T/C

Properties *SOFTER-250 dissolved in cold and hot water .

*SOFTER-250 no affect of physical property for

cotton & T/C.

*SOFTER-250 promotes dry, wet fastness & crease

resistance.

*SOFTER-250 good elasticity.

Type of

product

Special polymer compound

Ionic

Character

Weak cation

Appearance Milky emulsion liquid

pH (5% sol’n) 6.0 ± 0.5

Method of Generally : 2.0 – 5.0 % o.w.f

78

application


SILICONE-NS

Silicone softener

Properties *SOFTER-250 dissolved in cold and hot water .

*SOFTER-250 no affect of physical property for

cotton & T/C.

*SOFTER-250 promotes dry, wet fastness & crease

resistance.

*SOFTER-250 good elasticity.

Type of

product

High fatty acid & amino silicone mixture

Ionic

Character

Weak cation

Appearance Milky liquid


Method of

application

Generally : 3.0 – 5.0 % o.w.f

79


SILICONE S-600

Softening agents for all fibers

Properties *SILICONE S-600 no yellowing type.

*SILICONE S-600 dissolved in cold water.

*SILICONE S-600 stabilized to weak acid and weak

alkali, however, better

treatment under neutrality.

*SILICONE S-600 good for cold weather, however,

carefulness for freeze is

needed in the extremely cold season.

*SILICONE S-600 multi-use with other treatment

agents is possible except

anionic materials.

*SILICONE S-600 semi-permanent softness for all

kinds of fibers.

Type of

product

Special amino modified silicone compounds

Ionic Weak cation

80

Character

Appearance Clear liquid or bluish clear liquid


Method of

application

*Usage : 0.5 – 1.5 % o.w.f in case of single

application

*Curing : 15 – 20 seconds under 150 - 170 ℃


NEW SILICONE SF 200S

Softening agents for all fibers

Properties *NEW SILICONE SF200S dissolved in cold water.

*NEW SILICONE SF200S stabilized to weak acid and

weak alkali, however,

better treatment under neutrality.

*NEW SILICONE SF200S good for cold weather,

however, carefulness for

freeze is needed in the extremely cold season.

*NEW SILICONE SF200S multi-use with other

treatment agents is possible

except anionic materials.

*NEW SILICONE SF200S semi-permanent softness

for all kinds of fibers.

Type of

product

Special amino modified silicone compounds

Ionic

Character

Weak cation

81

Appearance Clear liquid or bluish clear liquid

pH (5% sol’n) 6.0 ± 0.5

Method of

application

*Usage : 0.3 – 1.0 % o.w.f in case of single

application

*Curing : 15 – 20 seconds under 150 - 170 ℃


SOFTEX-PT 100

Softener for all fibers in dyeing process

Properties *SOFTEX-PT 100 crease proofing agents.

*SOFTEX-PT 100 prevents occurrence of all kinds of

creases in baths.

*SOFTEX-PT 100 uniform dyeing can be obtained.

*SOFTEX-PT 100 very stable toward alkalis and

other chemicals.

*SOFTEX-PT 100 gives excellent softness in bath.

*SOFTEX-PT 100 spratically no adverse effects on

light fastness.

Type of

product

High fatty acid ester derivatives

Ionic

Character

Nonion

Appearance Light yellowish liquid

pH (5% sol’n) 8.0 ± 1.0

Method of

application

Apllication in the dye bath

*Generally 0.5 – 2.0 g/l

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BILIZER-K

Hydroperoxide neutralizer

Properties *BILIZER-K dissolved in cold water.

Type of

product

Special high molecular compounds

Ionic

Character

Nonion/Anion

Appearance Light yellow liquid

pH (5% sol’n) 7.0 ± 0.5

Method of

application

Generally 0.5 – 2.0 g/l


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NEOSOL-BH

Hydroperoxide neutralizer

Properties *NEOSOL-BH dissolved in cold water.

Type of

product

Special high molecular compounds

Ionic

Character

Nonion/Anion

Appearance Light yellow liquid

pH (5% sol’n) 7.0 ± 0.5

Method of

application

Generally 0.5 – 2.0 g/l


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SOFTEX-700

Cheese oiling agents

SOFTEX-700 is a cheese oiling agent and is recommended for

cotton, T/C and all synthetic fibers with excellent properties of

softening, levelling and antistatic

Properties *SOFTEX-700 dissolved in cold and warm water.

*SOFTEX-700 works well for the both side of out and

in, without difference.

*SOFTEX-700 is very stable for the pressure of

pump.

*SOFTEX-700 is stable for heat.

*SOFTEX-700 is stable in G salt.

*SOFTEX-700 is very fine practice size.

*SOFTEX-700 is stable for 6 months in the standard

condition..

Type of

product

Wax emulsion

Ionic

Character

Nonion

Appearance White emulsion

pH (5% sol’n) 6.0 ± 0.5

Method of Generally :appr. 3 – 5%(O.W.F)l

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application


ANTIBA-BH

Antibacteria finishing agents

ANTIBA-BH imparts the antibacteria and deodorant effect for cotton,

wool, T/C, A/W, N/W, acryl etc. Aliphatic softening agent has no

antibacteria ability, so it cause undesirable smell and fungi during

long time with high temperature and humidity.

Properties *ANTIBA-BH dissolved in cold and warm water.

*ANTIBA-BH is a good antibacteria finishing agent

and also prevent fungi.

*ANTIBA-BH has good compatibility with several

softening agent, there is no

change of color and side effect.

Type of

product

Aliphatic component

Ionic

Character

Anion/Nonion

Appearance Yellowish liquid

pH (5% sol’n) 6.5 – 7.0

Method of

application

Generally :0.2 – 0.5%(O.W.F)l

Available use with softening agent and antistic agent

after soaping stage.

Packing 100Kg pvc drum

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SODA-PS

Liquid Soda Ash

Soda-PS is a compount liquid carpling agent to make reactive dyes

be solidificated to cellulose fiber. This is new products comparing to

Na2CO3,NaOH or other common Alkali agents, mostly used by now.

It may decreaseyour costs, be used easier.

Properties * High concentrated liquid type, can be used easily.

well soluble, no precipit

-ate.

*Purity is higher than other agents so that you can get

excellent touch effects.

*Worker can use it easily due that it can not make

any bubble during works.

*pH Level is kept in stable during dyeing.( Can get

the high depth of color )

*Just used only 1/2 water on watering procedure after

dyeing considering other

common agents.

Type of

product

Alkali agent

Ionic

Character

Anion/Nonion

Appearance Light yellow transparent liquid

pH (5% sol’n) 6.0 ± 0.5

87

Method of

application

Generally :0.2 – 0.5%(O.W.F)l

Available use with softening agent and antistic agent

after soaping stage.

Packing 100Kg pvc drum

Na2CO3, SODA-PS watering frequency comparison

*Alkalinity drops easily during watering procedure. (pH 11 -> pH 8 -

9).

(can save using water, time and energy)

* Using Quantity : SODA - PS is high density liquid type so can be

used just 1 time without decomposition materials.

Na2CO3, Soda - PS using quantity comparison

88

Fig.16: Quantity Comparison

* It can be needed some changes according to the mixed proportion

of using dyeing agents. so, choose the proper concentration after

examination in laboratory.

Packing

150Kg pvc drum, 300Kg drum

SOFTEX-PM

Anticreasing agents

SOFTEX-PM is a newly developed lubri cant,anticreasing, and

dispersing & levelling agent when scouring, desizing of synthetic

fibers in rutary washer or, when scouring and dyeing of cotton,

viscose rayon.

It is excellent to prevent the crease and folded mark when scouring

and desizing of polyester in Rotary washer, and when pouring,

desizing, dyeing of viscose rayon, tencel, cotton, T/C, wool

in low bath ratio M/C such as rapid, vertical, M/C.

In this manner, it can be obtained the high quality products by

improvement of levelling effect and circulation in M/C.

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Properties *SOFTEX-PM solves perfectly the problem of crease

caused when dyeing and finishing of Tencel. Also, it

can be obtained the even rising fine-hair effect by

using to Sand-Washing finishing process.

*When use SOFTEX-PM to dyeing and finishing

process, it can decrease the using quantity of

the finishing agent by improvement of touch of the

dyed fabrics.

*SOFTEX-PM solves the problem of crease of cotton

knit specially 10’s, 20’s when dyeiing and finishing.

*SOFTEX-PM is non-foaming type and it increase the

operating efficiency of low bath ratio M/C such as

rapid M/C etc by improvement of circulation of th

dyed fabrics

Type of

product

Specific high polymer compound

Ionic

Character

Weak Anion

Appearance Colorless Transparent Liquid

pH (5% sol’n) 7.0 ± 1.0

Method of

application

Though it depends on the kinds of fabric and

workingcondition.

Generally use 1~3%(O.W.F)..


90

BIOTEX-PIL

Enzyme

Production Information

DESCRIPTION

BIOTEX-PIL textile finishing enzyme is a concentrated liquid

formulation of Cellulase enzymes designed for textile applications

such as fabric and garment biofinishing(i.e. depilling, surface

modifications, and softening). BIOTEX-PIL is also ideal for denim

washing, as well as for achieving an aged look on various types of

cellulosics.

ADVANTAGES

Versatile. Provides abrasion, surface polishing, and softening with

low enzyme dosages on a variety of cellulosic fabrics and garments.

Reduces Stone Volume Requirements. Using fewer stone in denim

washing fabric damage and machine wear, improves waste treatment

and permits more garments per load. Reduces Cycle Time. This

enzyme requires less process time than neutral or alkaline cellulase.

Less cycle time results in more throughput. Concentrated. BIOTEX-

PIL enzyme is a concentrated product which provides formulation

flexibility for differentiation by the Textile Chemical Formulator.

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APPLICATION

BIOTEX-PIL enzyme is suitable for biofinishing (i.e., softening,

surface fiber removal, depilling) or fabrics and garments. Enzyme

treatment can be done before or after dyeing depending on the

desired final effect on the goods.In fabric finishing applications, the

enzyme creates an improved hand, increases softness, reduces dead

and immature cotton, removes surface fibers, and prevents pill

formation on cellulosic fabrics. (For treatment of linen and flax,

BIOTEX-PIL textile finishing enzyme is recommended.)

In denim finishing applications, the enzyme produces a superior

stonewashed look that can be varied according to the user’s

preference. A wide range of abrasion can be obtained, either with or

without stones.

In garment finishing applications, the enzyme can be used for general

biofinsihing prior to or after dyeing. Treatment after dyeing results in

partial removal of dye and softens the fabric. BIOTEX-PIL enzyme

can be used to treat chambray, twill, and heavyweight cotton.

TYPICAL CHARACTERISTICS

CMC activity : 2000 CMCU/g (minimum)

Appearance : Amber liquid

pH : 4.9-5.3

Specific gravity : 1.2

The activity of BIOTEX-PIL enzyme is expressed in Carboxymethyl

Cellulose Units (CMCU) and is detemined against an intemal

standard. The activity units from one assay method cannot be

92

compared to those from a different enzymes using the same method

are not predictive of relative performance. Assay tests are effective

only for ensuring lot-to-lot consistency.

PROCESS CONDITONS

Desizing. Proper and complete desizing is required for consistent

performance. Amylase products are recommended for the removal

of starch sizing materials. Surfactants. Non-ionic wetting agents help

enhance the performance of enzymes and should be used in

conjunction with BIOTEX-PIL enzymes.Whenever surfactants are

used in conjunction with finishing enzymes, check to ensure that

the auxiliaries are compatible.

Fig.17: Process Parameter for BIOTEX-PIL

DOSAGE GUIDELINES

BIOTEX-PIL enzyme is a concentrated product that is generally used

at low doses. It is recommended that the optimal dosage and

conditions for the desired effect be determined by small-scale

experiments.

Dosage will vary according to :

□ Type of cellulosic content

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□ Construction and compositions of fabric

□ Degree of stonewashed or biofinishing effect

□ Treatment time

□ Process parameters and auxiliaries

□ Type of equipment

The following is given as a general guide :

Type of goods Dose OWG

Fabric 1 – 2 %

Garments 0.1-1.0 %

Denim 0.5-1.0 %

ENZYME INACTIVATION

All cellulase enzymes should be inactivated after the desired washed

effect is obtained. In sufficient inactivation can result in extended

exposure of the garment to active cellulase. This unintended

exposure can cause undesirable strength loss of the garment.

BIOTEX-PIL can be inactivated by one of the following procedures.

A. Hold the bath at pH > than 9.0 and temperature > 60°C for 15

minutes.

Soda ash ( sodium carbonate) or adjustment ; or

B. Treat garments with chlorine bleach ; or

C. Add sufficient quantity of an alkaline detergent to bring the pH to >

than 9.0.

Hold at > than 60°C and pH > 9.0 for 15 minutes.

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STORAGE

When stored at temperatures of 25°C (77°F) or below, BIOTEX-PIL

retains its stated activity for at least six months. To ensure maximum

activity retention, store this product under cool conditions with the

container closed. Prolonged storage above 30°C (86°F) should be

avoided.

SAFETY & ENZYME HANDLING

Inhalation of enzyme dust and mists should be avoided. In case of

contact with the skin or eyes, promptly rinse with water for at least 15

minutes.

Packing

100Kg pvc drum, 150Kg pvc drum

95

Glossary

No. Content Page

1. Pro Forma Invoice 12

2. Cost and Freight, CFR 14

3. Cost, Insurance and Freight 15

4. CIF, ASWP 16

5. Free On Board, FOB 16

6. Letter of Credit, L/C 27

7. Telegraphic Transfer, T/T 30

8. Wire Transfer, W/T 30

9. SWIFT 31

10. Country of Origin 34

11. Bill of Lading, B/L 38

12. KOTRA 44

13. KITA 47

14. Commercial Invoice, CI 32

96

Figures and Tables

No. Contents Page

1. Pro Forma Invoice 13

2. Confidential Credit Report 18

3. Letter of Credit 19 -23

4. Commercial Invoice 32

5. Packing List 34

6. Certificate of Country of Origin 35

7. Packing List Calculations 36

8. Weight and Measurement list 37

9. Bill of Lading 40 – 42

10 Quantity Comparison 79

11. Process Parameter for BIOTEX-PIL 84

97

Bibliography

Wikipedia – for glossary

Shin Sung Chemcial Co. LTD. Catalogue

KITA.org

KOTRA.co.kr

98

Summer project

Documents

Transcript of Summer project