Professional Documents
Culture Documents
TRAINING REPORT
ON
IMPORT PROCEDURE
FOR THE PARTIAL FULLFILLMENT
OF THE REQUIREMENT OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SESSION 2015-16
SUBMITTED BY
RUBY CHAUHAN
B.B.A (V SEM)
COLLEGE ROLL NO: 1317016
UNIVERSITY ROLL NO: 0003870065
S.D COLLEGE (LAHORE), AMBALA CANTT
ACKNOWLEDGEMENT
It is the matter of great pleasure and privilege to be able to present this
project report on export procedure and documentation. The compilation of
the project is a milestone in the life of the management student and its
execution is inevitable with the co-operation of the project guide. I wish to
record a deep sense of respect and gratitude to my project guide, prof. Mona
(RUBY CHAUHAN)
DECLARATION
NAME.
DATE..
PLACE.
PREFACE
It is true that Experience is best teacher, in todays globalize world, where
cut throat competition is prevailing in the market, theoretical knowledge is
not sufficient. Beside this one need to have a practical knowledge, which
would help an individual in his/her career activities. In every professional
course, training is an important factor. Professor gives us theoretical
knowledge of various subjects in the college but we are practically exposed
of such subjects when we get the training in the organization. It is only the
training through which I come to know that what an industry is and how it
works. I can learn various marketing activities being performed in the
industry which would in return help me in the future when I will enter in the
practical field.
CHAPTER 1
INTRODUCTION
Generally, an import means bringing goods into one country from another
country in a legitimate manner, typically for use in trade. Import of goods
and services are provided to domestic consumers by foreign producers.
Import of commercial quantities of goods normally requires involvement of
the Customs authorities in both the country of import and the country of
export.
As per the Customs Act, 1962, import means bringing goods into India from
a place outside India. The Foreign Trade Policy regulates import of goods.
For the purpose of import, goods have been divided into following
categories:-
F r
eC e a
Gn a l
oi s e
od
dG s o
o
I m
p o
r t
R e s
G
ot r o i c
dt es d
G
o
o d s
P r o
h i b i
t e d
G
o
o d s
Catalogues/Technical
write-up/Literature
Wherever
necessary, etc.
Some major/reputed importers or Government Undertakings have been
given the Green Channel facility, under which the goods are cleared without
routine examination of the goods.
OFFICERS OF CUSTOMS :-
IMPORT PRICING AND INCOTERMS :While finalizing the terms of import contract, the importer should be fully
conversant with the mode of pricing and the manner of payment for the
imports.
As regards mode of pricing, the overseas supplier should quote the terms
prevailing in international trade. The importer for his benefit should also
know the meaning of these terms to avoid ambiguity in interpretation of the
same.
International Chamber of Commerce, Paris, has given detailed definition of
few standard terms popularly known as INCOTERMS and these terms
have universal acceptance.
Ex- Works (EXW): Ex-Works means that the sellers responsibility is to make the goods
available to the buyer at works or factory. The full cost and risk
involved in bringing the goods from this place to the desired
destination will be born by the buyer. This term thus represents the
minimum obligation for the seller. It is mostly used for sale of
plantation commodities such as tea, coffee and cocoa.
Free Carrier (FCA):-
Free Carrier means the sellers obligations are fulfilled when the
goods are delivered to the carrier named by the buyer at the named
place. The term may be used for all modes of transport including
multi- modal transport.
Free Alongside Ship (FAS): Once the goods have been placed alongside the ship, the sellers
obligations are fulfilled and the buyer notified. The buyer has to
contract with the sea carrier for the carriage of the goods to the
destination and ay the freight. The buyer has to bear all costs and risks
of loss or damage to the goods hereafter.
Free on Board (FOB): The sellers responsibility ends the moment the contracted goods pass
the ships rail at the port of shipment named in the sales contract. This
means that the buyer has to bear all costs and risk of loss of or damage
to the goods from that point. The seller is required to clear the goods
for export.
Cost and freight (CFR) : Cost and Freight means that the seller delivers, when the goods pass
the ships, rail in the port of shipment. The seller must on his own risk
contract for the carriage of the goods to the port of destination named
in the sale contract and pay the freight. This being a shipment
contract, the point of delivery is fixed to the ships rail and the risk of
Delivered at Frontier (DAF): The term is used when the goods are to be carried by rail or road. The
sellers obligations are fulfilled when the goods have arrived at the
frontier, but before the Custom Border of the country named in the
sales contract
Delivered Ex-Ship (DES):-.
This is an arrival contract and means that the seller makes the goods
available to the buyer in the ship at the name port of destination as per
sales contract. The seller has to bear the full cost and risk involved in
bringing the goods there. The sellers obligations fulfilled before the
Custom border of the foreign country and it is for the buyer to obtain
necessary import licence at his own risk and expense.
Delivered Ex-Quay (DEQ): Ex-Quay means that the seller makes the goods available to the buyer
at a named quay. As in the term Ex-Ship the points of division of
costs and risks coincide, but they have now been moved one step
further from the ship into the quay or wharf i.e. after crossing the
customs border at destination. Therefore, in addition to arranging for
carriage and paying freight and insurance the seller has to bear the
cost of discharging the goods on the quay. The buyer is required to
clear the goods for import and to pay for all formalities, duties, taxes
and other charges upon import.
Delivered Duty unpaid (DDU): DDU means that the seller delivers the goods to the buyers at the
port of destination. The seller has to bear the costs and risks involved
in bringing the goods thereto. The buyer has get the goods unloaded
and cleared for import, by paying the applicable duty.
Delivered Duty Paid (DDP): This term may be used irrespective of the type of transport involved
an denotes the sellers maximum obligations as opposed to ExWorks. The seller has not fulfilled his obligation till such time that
the goods are mad available at his risk and cost to the buyer at his
premises or any other named destination. In the latter case necessary
documents (e.g, transport documents or Warehouse Warrant )will have
to be made available to the buyer to enable to take delivery of the
goods.
BILL OF LADING AND TYPES:Bill of lading is a document issued by the shipping company for shipment of
goods. It is a contract between the shipper & shipping company for carriage
of goods in good condition from port of origin to port of destination.
It is a document required by consignee (Importer) to clear the goods at the
port of destination. Shipping company also issue non-negotiable i.e.(Unsign)
copies which are not document title to the goods but are normally use for
record purpose.
Legal Importance:It helps the shipping co to collect the freight from the shipper or the
importer. It acts as a safeguard in the interest of shipping co. against wrong
trends & disputes in court of law by the exporter / Importer.
If the goods have been damage prior to loading of goods on ship such things,
will be reflected in bill of lading.
Functions of Bill of Lading: It is the trial receipt for the goods received ( On the Board ) if ship. It
confirm that goods are transferred in the ship.
It is negotiable document to the bank. It is a document of exporter
title. It is an evidence of contract between shipping company and
exporter / Importer.
CHAPTER 2
COMPANY PROFILE
scientific,
laboratory
and
educational
equipments
&
Laboratory
Glassware/Plastic
ware,
Microscope,
Electronic
Chemicals
and
Reagents,
Biotechnology
Engineering,
PRODUCT PORTFOLIO
Light in weight
Heat resistant
Dimensionally accurate
Compact designs
Alex Edutech Exporter has successfully carved a niche in the global lab
instrumentation market since its establishment in the year 1980. Standing on
the edifice of quality and manufacturing expertise, we have become a
Please
send
your
requirement
alexedutech4@gmail.com
Thanks
or
inquiry
on
our
id:
With Regards
Alex Edutech Exporter
# 4, Defence Colony, Sector - B
Near Govt. High School, Ambala, Haryana
Pin Code - 133 001, India.
Mobile +91 89011 44444
Phone No. +91 171 2671100
Email Id: alexedutech4@gmail.com
Website: alexedutech.com
Skype: punit.kapila
Google talk - alexedutech4@gmail.com
PRODUCTS DETAILS
distillation
centrifuge,
cooling
plants,
laboratory
equipments,
balances,
water
testing
water
bath,
equipments,
microbiology /
Biology
instruments
biology
educational
educational
manufacturer like
magnifiers,
models,
charts,
environmental
microbiology
plant
physiology
dissecting
science
equipment,
instruments,
instruments,
equipment,
projectors,
slide
rack,
CHAPTER-3
OBJECTIVE OF STUDY
IMPORT PROCEDURE
Inquiry (By Importer)
Exporter prepares documents and send Bill of Lading Through bank to the
Importer
Delivery Order & Documents is obtained by the Bank Or the agent of the
Exporter
On the basis of documents CHA files the, same for obtaining the Bill of
Lading
Goods to be produced for the Examination along with the Duty paid Challan
Relevant documents shown to preventive officer & The Cargo is taken out
The passed Bill of Entry is then forwarded to the license Department for
licensing debit and audit and then returned back to the importers for
payments of duty in the Accounts / Cash department. After recovery of duty
the original Bill of Entry is retained in the Accounts Department and the
duplicate and other copies returned to the importers for getting the goods
examined in the docks.
In the docks, Shed Appraiser / Examiner the goods and if is in order then
will give the out of charge for taking delivery form the custodian of the
goods viz. Port Trust, after payment of the Port Trust charges. This
procedure under which 80 to 90% of the consignments are being cleared is
known as the Second Check Procedure.
Under the First Check Clearance Procedure, the concerned Custom
Appraiser at Custom Hose prior to passing of the Bill of Entry gives the
order to the port Supervisor to examine the imported goods. The goods are
then remarks on examination of goods to the Appraiser for passing &
charging the appropriate custom duty on the goods imported. In this case the
customs gives out of Charge only after payment of Custom duty by the
importer.
No person shall, except with the permission of the proper officer of Custom,
is allowed to open any package of goods imported into India and lying in a
Custom Area. The Examination of cargo for assessment purposes is chiefly
the function of the Appraising Department or their representative posted at
the docks / Air cargo shed.
The importer pays charges to freight forwarder for this work of
documentation, destuffing, and freight charges and stamp duty to shipping
line and collect the final delivery order.
Bill of Entry:- Section 46 of the Custom Act 1962:The bill of entry is the document on the strength of which clearance of
imported goods can be done. The form of the bill of entry has been
standardized by the Central Board of Excise and Custom. As soon s the
importer receives the advice of arrival of the vessel the importer are required
to present a document known as Bill of Entry, either for Home Consumption
or for warehousing the goods. The Bill of Entry is noted in the Import
Department.
The Bill of Entry should be type written.
Types of Bill of Entry: Goods Entered for Home Consumption are cleared on White Bill of
Entry (Form No.22)
Goods entered for warehousing are removed into bond on Yellow
colour In-Bond Bill of Entry. (Firm No.23)
Goods cleared Ex-Bond for Home Consumption on payment of duty
on Green Colour Ex-Bond Bill of Entry. (FormNo.24)
For preparing the Bill of Entry the documents that are required are as
follows: Bill of Entry for Home Consumption in the prescribed firm duly
filled.
Invoice
Packing list
Bill of Lading / Airway Bill
Insurance
Procedure followed Examination of import cargo at Dock: Once Bill of Entry final assessment paid duty custom appointed
Authorized bank.
Made shipping line payment and collect final Do, without Bill of entry
and TR6 challan Shipping line unable to issue the Delivery order.
Paid stamp duty
Get cargo / container receiving from CFS on bill of entry back side.
Check container no and seal number as per shipping documents
Do the Bill of Entry registration from custom officer in custom
system(Before Bill of Entry registration Custom officer check all
document like B/L, Invoice, packing list, TR6 challan, certificate of
origin, Importer declaration along with Signature, CHA declaration.
Than after get seal cutting form CFS authority.
Check import cargo as per the invoice and packing list and tally with
Bill of entry before present to custom officer.
Custom officer do the examination as per declared in Bill of Entry
Custom officer fill the examination report in custom system and than
after issue out of charge.
After out of charge made the CFS payment, and get allow for empty
vehicles for container / cargo loading purpose.
Submit the Original Delivery order, CFS payment duplicate copy, Bill
of entry Xerox copy, Original Custodian out of charge copy to CFS
and get Gate Pass from CFS.
Done the Container / Cargo survey from surveyor, which is appointed
by shipping line.
Present the Gate pass and Original Gate Copy of out of charge to
Custom Preventive officer. Original Gate copy of out of charge
surrender to custom Preventive officer and get allow to move the
container / Cargo from CFS.
After out of charge getting below bill of entry copies: Original Duplicate Bill of Entry :- Consignee purpose
Original Triplicate Bill of Entry
:- Consignee purpose
Custom Copy
along with
import documents to
custom at Dock.
Custodian copy
of Entry, B/L.
Gate Copy
at CFS Gate.
IMPORT DUTIES:The following are the Import duties, which are presently levied on
import goods.
1. Basic Import Duty:- Which is specified against each Heading or Subheading in the first Schedule to the CTA. This is popularly called
Basic Customs Duty. There are different rates of duty for different
commodities. There are also different rates of duty for goods imported
from certain countries in terms of bilateral or other agreements with
such countries, which are called preferential rates of duties. The duty
may be a percentage f the value of the goods (when it is called ad
valoerm duty) or at a specific rate
2. Additional duty:- This duty is collected by customs on the landed cost
(Value + Custom duty) of the imported goods at the rate equal to
ventral excise duty in order to protect / safe guard the indigenous /
local industries. The authority for collection of this duty is section 3 of
customs Tariff Act 1975. This duty is also called C.V.Duty
(Counterveling duty).
3. Special Additional Duty:- 4%
DUTY STRUCTURE: Full duty Structure :Cumalative Total Duty Amount Calculations
On the Basis -Basic Customs Duty 10% with Revised
CVD 8% wef 24.02.09
S
N
Cod
Particulars
Amount
CAV
100
10.000
CVD 8% on BCD+CAV
8.800
0.176
0.088
0.381
0.191
4.785
TOTAL
24.421
HOW TO CALCULATE IMPORT DUTY:For Example: Invoice CIF Value :493.50 Euro
1% Landing Charges on CIF
1% SVB Loading On CIF
Unit price = 14.10
Duty Rate = 10%, 8%, 2%, 1%, 2%, 1%, 4%,
Calculation of duty :Assessable value=Unit 37 kgs x 14.10 unit price x 1% (Landing charges) x
1% (SVB Loading if applicable) x 71.80 (Exchange Rate). = 36141.966
A. Basic Duty 10% AV
:-
3614.19 INR
B. CVD 8% on (AV + Basic Duty)
C. Education Cess 2% on CVD
63.61INR
:-
3180.49INR
:-
:-
31.80 INR
E. Custom Education Cess 2% on (A+B+C+D)
:-
137.80 INR
F. Secondary Customs Education Cess 1% on(A+B+C+D) :-
68.90
INR
G. Additional Duty (Import) 4% on (AV + A+B+C+D+F)
:-
1729.55 INR
===========
Total Duty :8826.34 INR
Short cut to duty calculation: Duty = Assessable value x 1% landing charges x 1 % SVB loading x
Exchange Rate x duty rate
Duty =493.50Euro x1% x 1% x 71.80 x 24.421%
Duty = 503.37 x 71.80 x 24.421%
Duty = 8826.34 INR
BILL OF ENTRY FOR BOND / WAREHOUSING:Import goods may be stored in a warehouse under section 49 or goods may
be Bonded in a warehouse under section 59 of the Custom Act, 1962.
Warehoused means a public warehouse appointed under section 57 or
Private warehouse licenced under section 58 of the Custom Act, 1962.
INLAND CONTAINER DEPOT:Inland container depot have been set up in many major cities where there is
no sea port facility. The objective of I.C.Ds is to cater the needs of
surrounding importers and exporters of the respective city. The I.C.Ds
possess ware housing facility to station various types of containers for
stuffing of export cargo and de-stuffing of import cargo in the presence of
custom officials for examination, assessment, clearance etc. Most of the
I.C.Ds are located near the railway stations for rapid movement connecting
to adjacent port. Due to global liberalization, containerization of cargo has
become a must to achieve the full benefits. Hence the container should
move from the exporters factory premises to the importers factory premises
or vice versa or in close proximity to import industrial stations, so that the
importer / exporter can save time and expenditure and also ensure safety of
the goods. To begin with the Government of India appointed suitable
industrial stations as Inland Container Depots for unloading of imported
goods and loading of export goods by issuing notification under section 7AA
of the Custom Act 1962. Correspondingly, the Commissioner of Customs
having jurisdiction over the place approves places in the I.C.D for loading
and unloading of goods and the limits of customs area where the custom
officers and staff shall function by issuing a notification under section 8 of
custom act 1962.
Transhipment of containerized cargo from the ports to destination to
I.C.D is done by the steamer agents after customs permission. No extra duty
is charged on the freight from harbour to I.C.D. Steamer agents are liable to
pay fine equal to duty on short landing / Pilferage/ Damage under section
116 of Custom Act 1962 to ensure safety avoid demurrage and to relieve
congestion.
The Container Corporation of India generally arrange container
movements either by rail or road. If the importer intends to import the goods
at a particular ICD he should inform well in advance to his foreign supplier
so that the containers are manifested to the particular ICD . When such
containers are landed in a sea port the steamer agent arranges through
Container Corporation of India or any other authorized agency to transport
to that particular ICD. The ICD receives the containers and shifts to CFS to
enable the importer to file the bill of entry and other documents as they do in
the case of clearance through Sea ports or Airport .
Chapter 5
Findings
This study found a higher number of documents involved in the
process.
This study also found the costs to be marginally lower than those
reported
long term relationships with the buyers/sellers, which results in time
and cost savings.
Furthermore, the use of freight forwarders and customs brokers, who
are very familiar with the various processes and customs officials,
reduces the time required to complete the import and export
processes.
Chapter 6
Limitation
LIMITATIONS OF THE STUDY
Chapter 7
Conclusion
The objective of the current study was to examine, in detail, the processes
involved in the import of goods. By employing the Business Process
Analysis (BPA) methodology, this study was able to trace all the steps and
procedures involved in the import processes and consider the time and cost
involved in each step.
A BPA is carried out using a case study approach, which allows for an indepth analysis of the process and challenges faced by firms behind the
border. In this way, the researcher is able to follow goods and documents
from one stakeholder to another, i.e. from the warehouse of the exporter to
the warehouse of the exporter. On completion of he mapping of the trade
process, one is then able to identify areas where bottlenecks and duplication
occur and propose possible solutions
Chapter 8
Reference
Books
1. Balagopal T.A.S, Export Management, Himalaya Publishing House,
nineteenth edition 2010
2. Jeevanandam.C., Foreign Exchange- practice, concepts and control,
Sultan Chand and Sons, tenth edition 2007
4. Mahajan M.I., A guide on export policy, procedure and documentation,
Tata McGraw hill publishing company ltd, Third Edition 2005
5. Dr.Varma.M.M. & Aggarwal R.K, Foreign Trade Management, King
Book, second edition
Website:
http://www.alexedu.com
http://www.singmascientfic.com
http://www.alexwikipedia.com