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School of Commerce

Devi Ahilya Vishwa Vidyalaya


Indore

MBA Foreign Trade (5 Years Integrated UG Program)


2007-2012

A Project Report on

“Export Management and Marketing of Plastic Bags”

For the partial fulfillment of Bachelor of Business Administration degree


in Foreign Trade

Guide Submitted By
Mrs. Rajshree Desai Amit Wadhwani
Faculty
School of Commerce
Preface
Research project is an integral part of graduation. It not only helps one to have
complete knowledge about the subject but also to attain proficiency in writing.

This research project report is submitted in accordance with the curriculum prescribed
by Devi Ahilya Vishwavidyalaya, Indore to obtain Bachelors degree.

The basic objective of this report is to understand the export management and
marketing of plastic bags and plastic exports from India.

This report is based on primary data as well as secondary data collected from various
common sources like textbooks, internet etc. The limitation of time and cost were a
restriction in collection of primary data but it has been collected to my best efforts.

The report along with focusing on the export management and marketing of plastic
bags also emphasizes on the importance of plastic in our daily life and in industries,
the facts about plastic trade in world and the Plastics Export Promotion Council,
working for boosting up exports of plastics from the country.

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Index
Ch.No. Chapter Name Page Nos.

1 Introduction ……………………………………………………... 3

2 Starting Export Business in India ……………………………….. 6

3 Introduction to Plastic and Indian Plastic Industry ……………... 12

4 Polypropylene …………………………………………………… 21

5 Export Procedure ………………………………………………... 24

6 The Plastics Export Promotion Council ………………………… 30

Conclusion ……………………………………………………..………. 33

References ……………………………………………………………… 35

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Chapter 1
Introduction

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Introduction
International trade plays a vital role in the overall growth and progress of a country.
Imports arrange for better technology, raw material, machinery, man power and
techniques involved for producing goods in the country. This helps a country to grow.
Exports on the other hand earn foreign exchange for the country. The foreign money
earned is again used to cope up with the necessary imports.

Foreign trade is all about imports and exports. The products or services traded
between two countries act as backbone of the foreign trade between them. Various
factors make some nations adept at producing certain products at cost effective prices.
These factors may be technological advancement, raw material availability, low labor
cost etc. The ability of some nations to produce goods or provide services what other
nations want, at lower costs and time effectively is what makes foreign trade work.

Though international trade has been in existence since long time, its importance in
world economy has increased tremendously in recent decades. Industrialization,
advanced transportation facilities, globalization, growth of multinational corporations
and outsourcing are the few major factors which have recently given a boom to the
international trade. Increasing international trade is crucial for the continuous
existence of globalization. Absence of international trade will limit the nations to the
goods and services being produced in their own country.

Foreign trade is a very crucial factor. It is very important to follow the exact
procedure for starting international trade. There are number of issues involved in
foreign trade. This may include arranging for various licences and permits for trade.
Some other may be tariffs implemented by some countries to protect their local
industries.

India’s foreign trade


During the independence, the foreign trade of India was typical of a colonial and
agricultural economy. Its trade relations were mainly confined to Britain and other
Common Wealth nations. Exports made from the country were mainly of raw
materials and plantation crops and imports constituted light consumer goods. In last

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63 years, India‟s foreign trade has undergone a tremendous change in its composition
and direction. The imports today mainly consist of capital goods, petroleum products,
chemicals and raw materials to meet the ever increasing needs of a developing and
diversifying economy while the exports have enhanced to a great extent covering a
large number of traditional and non traditional products.

After independence, till 1990, India‟s foreign trade suffered from strict bureaucratic
and discretionary controls. During these 40 years, the foreign exchange transactions
were also strictly controlled by the Government of India and the Reserve Bank of
India. Since independence, India has always faced deficit in foreign trade. In other
words, the imports in India have always exceeded exports from the country. This is
the characteristic of a developing country struggling for reconstruction and
modernization of its economy.

Later the imports galloped in India due to the increasing requirement of capital goods,
defence equipments, petroleum, raw materials, technological goods etc. But the
exports from country still remained comparatively sluggish due to the lack of
exportable surplus, inflation in country, competition at international market and
increasing protectionist policies of developed countries.

With the start of 1991, the Government of India introduced a series of reforms to
liberalize and globalize the Indian economy. These reforms were oriented towards
integration of the Indian economy with the world economy. Since then, India has
followed cautious approaches towards liberalization ensuring macroeconomic
stability.

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Chapter 2
Starting Export Business in India

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Introduction
How to start an Export business is a common question which is frequently asked by
the first time exporters. Export is a very wide concept and lot of preparations are
required before starting this business.

The first step of starting export business is having clear understanding and detailed
knowledge of the product under consideration. The exporter must fully research the
most potential market rather than trying entering each and every market at once. The
exporter should also get familiarize with the state, federal and international laws of
the domestic and target country thoroughly. The exporter also needs to evaluate his
company. What is its production capacity, what is the capital availability with him,
can he compete with the international market etc.

After the exporter has carried out a detailed research, he needs to start the legal
formalities required for starting an export business.

Exporter’s Registration
Directorate General of Foreign Trade
Directorate General of Foreign Trade (DGFT) is the prime authority controlling the
international trade in India. DGFT is set under Ministry of Commerce, Government of
India. It is necessary for each and every exporter to get registered with DGFT. The
DGFT issues a unique Importer Exporter Code (IEC) Number to every trader. No
person or company can trade across international borders unless it has obtained a
valid IEC number from DGFT.

The Export Promotion Councils


Export promotion councils (EPC) are the non profit organizations set under the Indian
Company Act 1956 or Societies Registration Act, 1860. The EPCs work for the
promotion of exports of various goods from India. They work in close association
with the Ministry of Commerce and Industry, Government of India, and act as a
platform of interaction between government and exporters. Thus registering with an
EPC always proves to be beneficial for the exporters.

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Commodity Board
Commodity board is registered agency designated by Ministry of Commerce,
Government of India. These work for the promotion of export of some special items
like tea, coffee, rubber, tobacco and spices. The exporter if dealing in any of these
items should register with the respective board.

Income Tax Authorities


Goods being exported out of the country are eligible for exemption from sales
tax/VAT and income tax if the proof of exports is submitted to the concerned
authority. Thus it is necessary for each and every exporter to register with the Tax
authorities.

Besides these, the exporter should make sure that the item he is exporting does not
come under prohibited or restricted quota. For this purpose, the exporter can refer the
Schedule 2 of ITC(HS) code of classification. In case the item is under restricted
quota, the exporter should obtain a valid licence from the concerned issuing body.

Sending Export samples from India


The importer/overseas buyer may ask for the sample of goods before placing a
confirm order for exports. Thus it is important for the exporter to use good quality raw
material for manufacturing goods for sample and also maintain the same standards for
consignment also. While sending samples in small quantities, it is preferred to send
them by airway to avoid delay and ensure timely order.

Samples having marking “SAMPLE NOT FOR SALE” are allowed to be exported
without any limit; else the sample value shall not exceed US$ 10,000 per
consignment.

For sending the samples of restricted items, a special permit needs to be obtained
from DGFT.

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Risk Management in Export
Like any other business, the export business also carries risk. Though the risk
involved in international trade is somewhat different to that of domestic trade. Thus
extra measures and risk management is very important in foreign trade. The various
types of risk involved in international trade are mentioned here.

Credit Risk
Credit risk is the most drastic risk in export business. Any overseas buyer can increase
the risk of late payment, non-payment or even fraud. This is because it is difficult to
verify the creditworthiness and reputation of the importer due to large distance. This
risk can be minimized by assessing the creditworthiness of the importer accurately,
with the help of commercial firms involved in this business.

Quality Rejection Risk


Exported goods may be rejected by the exporter on the basis of poor quality. This is
also done in order to create a pressure on the exporter to negotiate the deal at a lower
price. To avoid the quality rejection risk, the exporter must cross check the following
points:
 Send samples to the importer before receiving an order and ensure to maintain
the same quality as that of sample.
 Follow the procedure of export inspection carried by the Export Inspection
Council so that only quality goods are shipped.

Transportation and Logistics Risk


The transportation risk like damage to goods and logistics risk like the payment of
insurance and freight are quiet common in trade. Thus the exporter should ensure to
hire experienced and technologically advanced transporters who have developed
expertise in handling cargo. The terms of payment, typically incoterms, should be
clearly mentioned on invoice and all other documents.

Legal and Political Risk


The international laws and regulations of the exporting as well as importing country
keep changing very frequently. Thus the exporter should draft a contract with a legal

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firm to ensure that his interests are taken care of. The political risks arise due to the
change in government policies and instability in government sector. Thus the exporter
should be flexible enough to adjust according to changes in the legal and political
environment.

Exchange Rate Risk


The exchange rate risk arises due to the fluctuations in exchange rate of the
currencies. There are several hedging instruments available today for the traders to
avoid exchange rate risk.

Packaging and Labelling of Goods


One of the most important stages of exports, the packaging and labelling of goods is
carried out after the manufacture or procurement of goods. The packaging not only
prepares for shipment of goods but also decides the acceptance or rejection of the
goods by overseas buyer or Government. Packaging along with making the goods
beautiful also saves a large amount of time and money by saving the goods from
losses caused due to mishandling.

The basic function of packaging is to contain, protect and preserve goods along with
their handling and final presentation to the consumer. The packaging can be either
carried out at the manufacturer company or outsourced to some other packaging
expert company. The advantages of proper packaging are:
 Packaging ensures physical protection of goods against shock, temperature,
moisture, dust etc. Protecting fragile goods from shocks is highly important in
international trade.
 Packaging provides for agglomeration small objects into one package for the
reason of saving cost and space along with ease of handling.
 Proper and attractive packaging attracts a potential buyer toward the product
encouraging him to buy the product.
 Packages usually play a vital role in security of goods with the help of
magnetic tags and bar codes.
 Easy identification and classification of goods is also accomplished with
proper packaging.

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Labelling is also an equally important aspect of exports. Exporter should have sound
knowledge of signs and symbols which are used internationally.

The next important aspect of exports is the export documentation which is explained
separately in later chapters.

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Chapter 3
Introduction to Plastic and
Indian Plastic Industry

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Introduction to plastic
Plastic is a common term for a wide range of synthetic or semi synthetic organic
amorphous solids. Plastics are typically polymers of high molecular mass and may
contain other substances added to it in order to enhance its strength or to reduce its
price. Plastic is one of the most widely accepted industrial goods.

Plastics are low cost, easy to manufacture, versatile and impervious to water due to
which they are used in an enormous and expanding range of products from paper clips
to space ships. They have displaced several traditional materials such as wood, horn,
stone, bone, leather, paper, glass and ceramic etc in most of their former uses. The
non-biodegradable nature of plastic makes it remain usable for even up to thousand
years of its production.

Plastics are basically of two types; thermosoftening plastic and thermosetting plastic.
A thermosetting plastic can be melted and molded into desired shape only once. Once
they have been molded, they retain their shape and cannot be remolded into another
shape.

On the contrast, the thermosoftening plastics can be remolded again and again into
various shapes. It is a polymer which turns into liquid state when heated and freezes
to a very glassy state when cooled sufficiently. Polypropylene is the best example of
thermosoftening plastic.

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The Indian plastic industry
The Plastics Industry in India has made significant achievements ever since it made a
modest but promising beginning by commencing production of Polystyrene in 1957.
Soon in 1959, Low Density Polyethylene (LDPE) production also started in India
which was followed by the production of Poly Vinyl Chloride in 1961. High Density
Polyethylene (HDPE) and Polypropylene later on were manufactured in year 1968
and 1978 respectively.

The plastic industry of India has a big market potentiality and is gradually prospering.
This potentiality of the market will surely actuate the entrepreneurs to invest in this
industry. Entrepreneurs are trying to provide high quality plastic products, so that it
becomes a booming industry.

The potential Indian market has motivated Indian entrepreneurs to acquire technical
expertise, achieve high quality standards and build capacities in various facets of the
booming plastic industry. Phenomenal developments in the plastic machinery sector
coupled with matching developments in the petrochemical sector, both of which
support the plastic processing sector, have facilitated the plastic processors to build
capacities to service both the domestic market and the markets in the overseas.

The Indian plastic industry comprises of various injection molding, blow molding,
extrusion and calendaring units which together count around 30,000 in number. The
capacities built in most segments of this industry coupled with inherent capabilities,
has made the Indian plastic industry capable of servicing the overseas markets.

The economic reforms launched in India since 1991, have added further fillip to the
Indian plastic industry. Joint ventures, foreign investments, easier access to
technology from developed countries etc have opened up new vistas to further
facilitate the growth of this industry.

Plastic industry India is symbolizing a promising industry and at the same time
creating new employment opportunities for the people of India. The per capita

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consumption of plastic products in India is growing and is moving towards 8% GDP
growth.

From a meager export turnover of 16.5 million US$ worth of exports in 1955-56, the
exports from Indian plastic industry has reached around 3200 million US$ in 2006-07.
This data is soon expected to touch 4 billion US$ mark in near future.

Products from the Indian plastic industry are exported to over 150 countries round the
globe with the major trading partners being USA, United Arab Emirates, Italy, United
Kingdom, Belgium, China, Hong Kong, Germany, Saudi Arabia, Singapore, Sri
Lanka, South Africa, Russia, The Netherlands, Turkey, Egypt, France, Australia,
Kenya and Oman.

Table 1 shows the sales figure for year 2008 of various plastic products exported from
India. Figure 1 shows the graphical representation of the data in percentage value of
total exports.

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S.No. Item Sales in 2007-08 Share in Total
Million US$ Exports in 2007-08

1 Raw Materials 1930.73 55%

2 Molded and Extruded Goods 702.59 20%

3 Woven Sacs and Bags 240.67 7%

4 Other Plastic Products 638.55 18%

TOTAL 3512.54 100%

Table1: Export of plastic items from India

Sales 2007-2008

Others
Woven Sacs and 18%
Bags
7%
Raw Materials
Moulded and 55%
Extruded Goods
20%

Fig1: Plastics export from India; 2008-09


Source: The Plastics Export Promotion Council

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India’s Major Trade Partners of Plastic
The import of better technology capital goods and machinery has led India towards
production of high quality plastic items. This has also decreased the turnaround time
of production of Indian companies.

The government is also promoting the exporters with the schemes like Export
Promotion Capital Goods with the help of which the exporter can get a relaxation
from the import duties.

The import of better quality raw material and its use by Indian companies has recently
helped the country to establish its name at a higher level in the world market. India
has now got several countries associated which import plastic goods from India to use
in production of finished goods.

The Major trade partners of plastic trade to India are United States of America, China,
United Arab Emirates, United Kingdom, Belgium, Italy etc.

Table 2 shows the list of major countries importing plastic goods from the country
and their percentage of total exports from the country for the year 2008-2009. Figure
2 shows the percentage share of the major trade partners in plastic trade with India for
the year 2008-09.

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S.No. Item Exports in 08-09 Share in Total
Million US$ Exports in 08-09
1 USA 185.80 19%
2 China 117.66 12%
3 UAE 96.80 10%
4 UK 67.67 07%
5 Belgium 54.98 05%
6 Italy 46.59 05%
7 Saudi Arabia 39.26 04%
8 France 37.50 04%
9 Germany 36.65 04%
10 Brazil 29.88 03%
11 Others 270.41 27%
TOTAL 983.20 100%

Table2: Major countries importing plastic from India

Major Importers

USA
Others
19%
27%
China
12%

Brazil UAE
3% 10%
Italy Belgium UK
Germany 5% 5% 7%
4%
France
4%
Saudi Arabia
4%

Fig2: Major Plastic Importers from India for Year 2008-09


Source: The Plastics Export Promotion Council

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Plastic Trade; India and USA
The USA market for plastic bags was dominated by Chinese, Malaysian and Thailand
exporters due to their low cost offer. In 2005, after the levying of Anti Dumping
duties on these three countries, as the goods from these countries had materially
injured US markets, the export opportunity was thrown open to other countries
including India.

Due to the Anti Dumping duty on these competitors, the India‟s total exports which
were around US$ 950 million got a hike of 10-15 percent in following financial years.
Even due to the recession observed recently and a negative growth in USA‟s import it
is yet the largest importer of plastic material from India touching about US$ 185
million.

Table 3 shows the past 3 years data of export of plastic material from India to USA
and Figure 3 shows the data in a graphical form.

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S.No. Year Sales in 2007-08 % change with
Million US$ previous years value

1 2006-2007 246.25 NA

2 2007-2008 310.54 26%

3 2008-2009 185.8 -40%

Table3: Export of plastic from India to USA in last 3 years

350
310.54
300

246.25
250

200 185.8

150

100

50

0
2006-2007 2007-2008 2008-2009

Fig3: India‟s last 3 years trade data of plastic with USA (Million USD)

Source: The Plastics Export Promotion Council

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Chapter 4
Polypropylene

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Introduction
Polypropylene also known as polypropene or PP is a thermo softening polymer. It is
used in wide range of industries including packaging, textile, stationary, reusable
containers, laboratory equipments, automotive components, polymer bank notes and
many more. Polypropylene is usually transformed into final products using extrusion
and molding. Another most common shaping technique is injection molding, which is
used for products such as cups, cutlery, vials, caps, containers, house wares, car
batteries etc.

PP has an intermediate level of crystallinity between that of Low Density Polyethene


(LDPE) and High Density Polyethene (HDPE).

The global turnover recorded for trade of polypropylene goods in year 2007 was
about US$ 65 billion accounting for a volume of 45.1 million tones of material traded
in various forms.

Uses of polypropylene
Polypropylene due to its tough and flexible nature has made its most favorite
industrial product in recent years. It is reasonably economic and widely used. The
major areas where polypropylene is used are:
 Due to resistance of PP to fatigues, it is widely used on plastic hinges like than
on flip-top bottles.
 PP is used in making piping system for high purity systems.
 Strong and rigid piping system meant for use in portable pumping and
hydronic heating and cooling are also made of PP.
 PP can withstand high temperatures and pressure in autoclave, which makes it
an ideal material for laboratory and other medical purposes.
 Its heat resistance makes it easy to be used in food grade containers and
kettles.
 Car batteries, waste baskets, cooler bodies and dishes are also made of PP.
 Very thin sheets of PP are used as dielectric in some low-loss RF capacitors.
 Though PP is naturally water repellent i.e. hydrophobic, but it is treated to
become hydrophilic and absorb water to be used in diapers and sanitary items.

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 A common application of PP is as Biaxially Oriented PP. These BOPP sheets
are used to make wide range of materials including clear bags. BOPP is crystal
clear and serves as an excellent packaging material for artistic and retail
products.
 PP is also used as an alternate to PVC for making insulating cables for
electrification, especially in low ventilation environment.
 It is used in making plastic items by injecting heat melted material into mould
of custom shapes, making it easier and cheaper to produce and consume.
 PP is also used in treatment of hernia to avoid new hernias. A small patch of
the material is placed over the spot of hernia.

Polypropylene Bags
PP bags are the special bags made from polypropylene used widely around the globe.
These are especially used for packaging products that need to be protected from
moisture. PP bags are usually the woven sacs made of PP thread. The polypropylene
woven sacs and bags contribute to about 7% of the total plastic exports from the
country and is thus an interesting topic to study.

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Chapter 5
Export Procedure

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Introduction
An export company should follow stringent government norms and quality standards
while exporting from India to various countries. The first step in carrying out exports
is getting export order from the overseas buyer. After getting the export order, the
goods are manufactured and an Invoice is generated. The invoice contains the invoice
number, details of importer, exporter, port of loading, port of discharge, port of
delivery, details and value of goods, payment terms etc. Along with invoice, a
Packing List is also made which also contains details similar to invoice.

Selection of Shipping Line


The first step in export of goods is selection of appropriate shipping line. It is very
important to select the best shipping line considering various factors like cost
effectiveness, timeliness, trustworthiness etc. First of all, a list of all the shipping lines
which provide the services to concerned destination is made. After this, the short
listing of the shipping lines is done on the basis of factors like freight charged, time of
delivery of goods, safety concerns followed on deck and many more.

Procurement of Container
Once the shipping line is selected the next step is to procure container from the
shipping line. Every shipping line has its own containers which are given to the
exporters on lease basis. The containers are basically of 3 types; 20 feet by 8 feet by
8½ feet which is equivalent to 1 TEU (twenty feet equivalent unit), 40 feet by 8 feet
by 8½ feet which is 2 TEU and 40 feet by 8 feet by 9½ feet which is called high cube
container. The selection of container is done depending upon factors like importers
requirement, quantity of goods being exported etc.

There are two possible ways of procuring container. The exporter can either get it
directly from the shipping line by contacting its local offices or else he may take help
from a Freight Forwarder. Freight forwarder is a third party logistics provider. The
major advantages of hiring a freight forwarder are:
 Freight forwarding services guarantee the delivery of goods on time and in
good condition.

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 Freight forwarders have well established contacts with various shipping lines.
This makes the services faster and economic.
 In-house resources need not to be involved in logistics management and thus
opting for freight forwarding services avoid unnecessary headache of the
exporter.
 Freight forwarders have expertise in supply chain management and handling
of precious and hazardous goods which is beneficial for the exporter.

To procure a container, once the deal between the shipping line and the
exporter/freight forwarder is done, the shipping line issues a Delivery Order. The
delivery order is a letter referred to the concerned authority like ICD, CFS etc. The
delivery order contains the details of exporter and agent along with the container
number. This delivery order when forwarded to the concerned authorities, the
container is issued accordingly. Container is then sent to the factory premises for
stuffing.

Excise Clearance
Once the goods are manufactured and ready to be loaded into the container, the time
for excise clearance comes. It is compulsory for each and every exporter to get the
goods cleared with the central excise department before they can be sent out of the
factory premises. For this purpose the goods are loaded into the container in the
presence of an inspector from central excise department. This assures that the
container contains only those goods in correct quantity as mentioned in the invoice
and packing list. Once the goods are loaded into the container, it is sealed by the
excise inspector.

Custom Clearance
Once the goods are cleared with excise inspector and is sealed, the exporter fills an
Annexure for issue of shipping bill. This Annexure contains details like name of
parties, nature of goods, container number, excise seal number etc. This Annexure
along with delivery order, packing list and invoice is submitted to the customs
department who in turn issue a shipping bill. Shipping bill is a crucial document in
exports. It contains all the details of the goods being exported. Though the shipping

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bill can be of any length as per the goods, but it has minimum of 3 pages. The first
page of the shipping bill contains the details of importer, exported, invoice number,
value of goods, gross weight and net weight of goods, exporter‟s bank account etc.
The second page contains the details about goods being exported like their nature,
quantity, value etc. The third page of the shipping bill contains the details of container
which is being to export the goods like the container number, its size etc. The
shipping bill number and date of issue of shipping bill can be found on top of all the
pages of the document.

Shipping bill can me either issued manually or with the help of Electronic Data
Interchange.

Shipping bill issued with EDI


Shipping bill under EDI system is printed on a white paper with a watermark of
customs department. Such shipping bill is usually issued in 5 copies if the exports are
being carried under duty free/advance licensing scheme. In case the exporter has
opted for any scheme like DEPB or EPCG, the shipping bill is issued in 6 copies.
These copies are:
 Exporter‟s Copy.
 Exchange control copy (submitted to RBI).
 Custom‟s Copy.
 Export promotion copy.
 TR1 and TR2 copy.
 Duty drawback copy.

Manual Shipping Bill


In case the manual shipping bill is used, it is printed on papers of different colors
depending upon the scheme opted.
 Duty Free and Advance License Scheme White
 Duty Entitlement Passbook Scheme Blue
 Duty Drawback Scheme Green
 100% EOU Yellow

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The custom officer tallies the shipping bill with other documents and the seal on the
container at the time of entry at the port of export.

Issue of Bill of Lading


Bill of lading is a proof of safe custody of the shipping line over the goods. Thus
when a bill of lading is issued, the authority of goods is transferred to the shipping
line. The bill of lading serves as a receipt of goods, an evidence of the contract of
carriage and a document of title to the goods.

To obtain a bill of lading from the shipper, the exporter files a draft bill of lading
which contains all the information and instructions about the shipping bill. The
shipping line issues the first copy of the bill of lading. If there are any errors in the
document made by the shipping line, a new bill is issued without any charge. But if it
is found that the errors in bill of lading have occurred due to the errors made in draft
bill, the charges for issue of rectified document is to be bearded by the
exporter/forwarder.

The issue of bill of lading by the shipping line requires around 2-3 days time. Such
type of bill of lading is called Master Bill of Lading. In case the exporter needs bill of
lading early than this, then the agent can issue him a Forwarded bill of lading whose
value is equal to the master bill of lading. To do so, the agent must compulsorily have
MTO Registration.

Later when the Master bill of lading is issued by the shipping line to the agent, the
same is returned back to former by the agent.

The bill of lading can be of two types:

Received for Shipment (RFS) Bill of Lading


This is issued prior to the shipment of goods when the goods are not shipped but are
in the custody of shipping line. The RFS bill of lading also contains the date when the
goods will be shipped on board.

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On Board Bill of Lading
This is issued only when the goods are loaded onto the ship and are ready to be
exported. Such bill of lading contains the date of loading of goods along with a note
“on board”.

The bill of lading may grant transshipment rights to the shipper even if the letter of
credit disallows the same.

The number of originals and copies of bill of lading may vary depending upon the
requirements of various parties involved. The originals are usually 3 in number. The
copies of bill of lading are usually marked with “non-negotiable” and can be in any
number depending upon the requirements.

The bill of lading may be „clean‟ or „unclean‟. A clean bill of lading is a proof that the
goods are received in good condition and are not damaged. On the other hand, an
unclean or foul bill of lading is a proof of damaged goods.

Issue of Matte Receipt


Matte receipt is the actual confirmation of export of goods. A matte receipt is only
issued when the ship has sailed away from the port. This is a proof of exports. Matte
receipt is issued by the captain of ship which is delivered to the exporter/agent within
10-15 days of shipment.

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Chapter 6
The Plastics Export Promotion Council
(PLEXCONCIL)

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Introduction
The Plastics Export Promotion Council also known as PLEXCONCIL is registered
under the Indian Companies Act and sponsored by The Ministry of Commerce and
Industry, Department of Commerce, Government of India. The PLEXCONCIL
basically represents the exporting community in the Indian plastic industry.

PLEXCONCIL was established in year 1995 after the boom in trade due to the
liberalization in 1991. Just like other export promotion councils, it is also working to
promote exports of plastic products from the country. It is also acting as a facilitator
between the plastic exporters and the Government of India.

The growth of plastic exports from India up to 3200 million US$ mark in 2006-07 is
indicative of dedicated efforts of over 2000 PLEXCONCIL members who are always
in the process for creating a niche for themselves in the world plastic market under the
chairmanship of Mr. Manoj Agarwal.

The PLEXCONCIL is funded by the Government of India after considering various


factors related to its performance.

Roles of PLEXCONCIL
 Basic objective of PLEXCONCIL is to boost, promote and provide impetus
for developing Indian exports in plastic sector.
 To present India‟s image abroad as a reliable supplier of high quality products.
 Encourage and monitor the observance of international standards and
specifications by exporters.
 Keep regular check of the trends and opportunities in International markets for
plastic goods and assist its members in taking advantage of such opportunities
in order to expand and diversify exports of plastics.

Functions of PLEXCONCIL
 Registration of exporters and issuing Registration-Cum-Membership
Certificate (RCMC).

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 Providing a forum and link between the government and its members for
consideration and implementation of schemes for export production and
marketing.
 Arrange distribution of raw materials and provide marketing assistance.
 Collection and dissemination of information primarily on export opportunities,
through various media including newsletters, bulletins, letters, telex, fax, etc.
 Sponsor and invite business delegations and sales teams, for exploring markets
for export development of plastics.
 Fixation of floor price (minimum export price) or recommendation of the
same to the govt.
 Arrange and participate in buyer-seller meets, exports or trade fairs and
exhibitions in India and abroad.
 Foreign publicity of Indian plastic goods through schemes (like Joint Foreign
Publicity) in overseas market.
 Recommending the formulation and implementation of export assistance
schemes like drawback rates.

Membership of PLEXCONCIL
 Any exporter dealing in plastic products may apply for membership through
application to the registering authority.
 A self certified copy of the IEC Number issued by the licensing authority
concerned is enclosed therewith application.
 It should also be supported by Bank certificate as a proof of the applicant‟s
financial soundness.
 The application shall be considered and disposed of within 1 month thereof in
accordance with the rules and regulations of the PLEXCONCIL.
 On being admitted to the membership, the applicant is granted an RCMC (as
per format in appendix 19B).
 In case an exporter desires to get registration as a manufacturer exporter, he
shall furnish evidence to that effect.
 Prospective or potential exporters may also, on application, register and
become an associate member of PLEXCONCIL.

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Conclusion

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Conclusion
The practical world is far more different than the theoretical world. Learning new
things while working in practical and professional world makes one more efficient
and responsible.

 Quality is a very important aspect of trade. The company should take each and
every measure to maintain quality which will give an increment to the
customer satisfaction.
 Starting export business in India is not a difficult task. With the proper
knowledge and strategy, one can lead the way to worldwide success.
 Plastic exports in itself carry very huge scope and is a good product to trade in.
 Government is trying each and every step to boost exports from the country.
Proper knowledge of Government schemes and promotion councils can direct
you towards a successful export business.

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References

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References
S.No. Reference

1 http://www.wisegeek.com/what-is-freight-forwarding.htm

2 http://www.export911.com/e911/ship/docBL.htm

3 http://www.export911.com/e911/ship/versusBL.htm#xReceived

4 http://en.wikipedia.org/wiki/Plastic

5 http://en.wikipedia.org/wiki/Thermoplastic

6 http://en.wikipedia.org/wiki/Polypropylene

7 http://www.indianplasticportal.com/plastic-industry-overview/

8 http://www.wisegeek.com/what-is-foreign-trade.htm

9 http://en.wikipedia.org/wiki/International_trade

10 http://www.easternbookcorporation.com/moreinfo.php?txt_searchstring=11921

11 http://www.tirupatibalajee.com/index.html

12 http://www.tirupatibalajee.com/quality-assurance.html

13 http://www.tirupatibalajee.com/team.html

14 http://www.infodriveindia.com/Exim/Guides/How-To-Export/Ch_1_Starting_Export_Introduction.aspx

15 http://dgft.delhi.nic.in/

16 http://en.wikipedia.org/wiki/ISO_9000

17 http://www.plexconcil.com/

18 http://www.iso.org/

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