Professional Documents
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SUBMITTED TO THE
SAVITRIBAI PHULE PUNE UNIVERSITY
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ABUBAKAR SULEMAN VORAJEE
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Dr. R Ganesan
Director
Date: - _______
Place: - Pune
ACKNOWLEDGEMENT
DECLARATION
I declare that this work is authentic and the contents referred from other sources
have been acknowledged.
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INDEX
Chapter
Title
Executive Summary
Introduction
Research Methodology
Findings
Bibliography
Appendix
Page No.
Executive Summary
It is said that practice makes a man perfect. In order to achieve excellence and success
theoretical knowledge supplemented with practical knowledge and work is not essential but
indispensable.
Among numerous interesting things concerned with enhancing the understanding of the
management student this practical training for 2 months plays an important role in
development because it helps to get right focus and appropriate exposure Moreover in todays
competitive age practical knowledge
Chapter No.1
Introduction
To Study the export process and documentation expect to see higher operational
performance.
To understand in detail the export process and documentation process and means
of meeting that requirement in order to carry out the integrated plan of the Organization.
Chapter No 2
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The term research refers to the systematic method consisting of enunciating the problem,
formulating a hypothesis, collecting the facts of data, analyzing the facts and reaching certain
conclusions either in the form of solution towards the concerned problem or in certain
generalization for some theoretical formulation. The purpose of research is to discover
increase to questions through the application of scientific procedures. The main of research is
to unravel the truth which is hidden and which has not been discovered yet.
RESEARCH DESIGN:
There are two types of research design i.e. exploratory & descriptive research design. I have
chosen descriptive research design; survey was conducted to collect the relevant data.
Text books
Secondary data from internet and various reports will be collected and an overview of
company environment will be studied.
Sampling method
The sampling method used is non-probability sampling in which convenience and purposive
sampling method has been used.
Sampling procedure: Simple Random Sampling procedure was followed.
Sampling Method: Data was collected by survey.
Data collection or evidence gathering
Preparation of Research Report and presentation
As the last step of research the collected information/data and findings will be submitted to
the company and to the project guides along with my opinions and observations which I
experienced throughout doing the project.
Processing and Analyzing the data
After gathering the data from various sources, the researcher has to analyze it to sort out
relevant information. The unwieldy data should necessarily by condense into a few
manageable groups and tables for further analysis. In this project, after collecting the data
from client companies, all data will be properly analyzed. Various table and graph were
prepared. Multiple regressions were also used during analysis. Comments and suggestions
from respondents will be noted down separately.
Population of the study:
The employees are divided in to management staff i.e. Executive, Sr. executive, Officer, and
Sr. officer.
Each respondent will be interviewed for the duration of at least 10-15 minutes. During the
interview a self-administered written Questionnaire was asked to the respondents. Keeping
this in mind the following points will be taken care of while asking questions:
Asking the questions exactly as they are worded in the questionnaire.
Reading each question very slowly.
Asking the question in the order in which they are presented in questionnaire.
Asking every question specified in questionnaire.
Repeating and clarifying the questions that are misunderstood or misinterpreted.
There are certain specific various formalities and registrations to be made with different
authorities before an exporter can enter into export business and accept an export order.
1)
Selection of name of the firm-: An entrepreneur can choose any name for the firm he
wants to start. It is desirable that the name of the firms indicates that the business relates
to export/import.
2)
3)
4)
Opening of Bank Account-: The firm or company has to open a bank account with
branch of a commercial bank, authorized by Reserve Bank of India to deal in foreign
exchange transaction. The firm may require pre and post shipment finance for its business.
5)
6)
Registration with Sales Tax Authorities-: exporter need not pay sales tax while
making purchases meant for export. But for availing the benefit, firm has to register with
sales tax authorities and secure sales tax number.
B)
2.
3.
4.
6.
So it is necessary for the exporter to check the nature of the item before he enters into the
contract or even makes efforts to secure the export order. Needless to add, the items of export
agreed upon should not be fall in the negative/ banned list.
Exporters incentives & drawback:
Incentives & facilities:
Advance license -: inputs required for manufacturing export products can be imported
without payment of custom duty under advance license. Since the raw materials can be
imported before exports of final product, the license issued for this purpose is called
advance licenses. An advance license is issued under duty exemption scheme to allow
import of inputs, which are physically incorporated in the export product.
EXPORT PROCEDURE
The revised rules, originally designated "INCOTERMS 2013", contain a series of changes,
such as a reduction in the number of terms to 11 from 13. The DAF, DES, DEQ, and DDU
designations have been eliminated, while two new terms, Delivered at Terminal (DAT) and
Delivered at Place (DAP), have been added. INCOTERMS 2010 also attempt to better take
into account the roles cargo security and electronic data interchange now play in international
trade.
WHAT INCOTERMS ARE - INCOTERMS are a set of three-letter standard trade terms
most commonly used in international contracts for the sale of goods. First published in 1936,
INCOTERMS provide internationally accepted definitions and rules of interpretation for
most common commercial terms. In the US, INCOTERMS are increasingly
WHAT INCOTERMS DO - INCOTERMS inform the sales contract by defining the
respective obligations, costs and risks involved in the delivery of goods from the Seller to the
Buyer.
WHAT INCOTERMS DO NOT DO - INCOTERMS by themselves DO NOT:
Constitute a contract;
These items are defined by the express terms in the sales contract and by the governing law.
The Seller's only responsibility is to make the goods available at the Seller's
premises. The Buyer bears full costs and risks of moving the goods from there
to destination.
The Seller delivers the goods, cleared for export, to the carrier selected by the
Buyer. The Seller loads the goods if the carrier pickup is at the Seller's
premises. From that point, the Buyer bears the costs and risks of moving the
goods to destination.
The Seller pays for moving the goods to destination. From the time the goods
are transferred to the first carrier, the Buyer bears the risks of loss or damage.
The Seller pays for moving the goods to destination. From the time the goods
are transferred to the first carrier, the Buyer bears the risks of loss or damage.
The Seller, however, purchases the cargo insurance.
The Seller delivers when the goods, once unloaded from the arriving means of
transport, are placed at the Buyer's disposal at a named terminal at the named
port or place of destination. "Terminal" includes any place, whether covered or
not, such as a quay, warehouse, container yard or road, rail or air cargo
terminal. The Seller bears all risks involved in bringing the goods to and
unloading them at the terminal at the named port or place of destination.
The Seller delivers when the goods are placed at the Buyer's disposal on the
arriving means of transport ready for unloading at the names place of
destination. The Seller bears all risks involved in bringing the goods to the
named place.
The Seller delivers the goods -cleared for import - to the Buyer at destination.
The Seller bears all costs and risks of moving the goods to destination,
including the payment of Customs duties and taxes.
MARITIME-ONLY TERMS
The Seller delivers the goods to the origin port. From that point, the Buyer
bears all costs and risks of loss or damage.
The Seller delivers the goods on board the ship and clears the goods for
export. From that point, the Buyer bears all costs and risks of loss or damage.
The Seller clears the goods for export and pays the costs of moving the goods
to destination. The Buyer bears all risks of loss or damage.
The Seller clears the goods for export and pays the costs of moving the goods
to the port of destination. The Buyer bears all risks of loss or damage. The
Seller, however, purchases the cargo insurance.
PRACTICE POINTS
BE SPECIFIC:
o
If you use INCOTERMS in the Sales Contract or Purchase Order, you should
identify the appropriate INCOTERM Rule [e.g. FCA, CPT, etc.], state
"INCOTERMS 2010" and specify the place or port as precisely as possible.
A common misconception when the Seller pays the freight is that the Seller
has the risk of loss until the goods are delivered to the place or port specified
on the bill of lading or airway bill. Actually, when using INCOTERMS CPT,
CIP, CFR or CIF, risk transfers to the Buyer when the Seller hands the goods
over to the carrier at origin, not when the goods reach the place or port of
destination.
Understand that under CIP and CIF, the Seller is only obliged to obtain
insuranceon minimum cover.
RESPONSIBILITY
FOR
LOADING
AND
UNLOADING
CHARGES.
FOR
EXAMPLE:
o
DAT obliges the Seller to place the goods at the Buyer's disposal after
unloading at the named terminal at port or place of destination.
DAP and DDP oblige the Seller to place the goods at the Buyer's disposal on
the delivering carrier ready for unloading at the named place of destination.
CPT, CIP, CFR or CIF on the other hand, require the parties to identify as
precisely as possible the point at the agreed port of destination because the
costs up to that point are for the account of the Seller.
Under FCA terms, the seller satisfies his obligation to deliver when he has
handed over the goods, cleared for export, into the charge of the carrier named
by the buyer at the named place or point. The buyer is responsible for inland
freight, unloading at port of embarkation and loading on ocean carrier/airline.
RESPONSIBILITY FOR U.S. CUSTOMS ENTRY DECLARATIONS:
DDP is the only INCOTERM where the Seller has responsibility for U.S.
deliver when it hands the goods over to the carrier, not when the goods reach
the place of destination.
o
DAT, DAP and DDP the Seller fulfills its obligation to deliver at the named
destination. The Seller has no obligation to provide transit status updates.
upon receipt of goods by a buyer if certain conditions outlined in the letter have been met.
It is a method of payment for goods in the buyer establishes which his credit with a local
bank, clearly describing the goods to be purchased, the price, the documentation required,
and a time limit for completion of the transaction. Upon receipt of documentation, the
bank is either paid by the buyer or takes title to the goods themselves and proceeds to
transfer funds to the seller.
Types of letter of credit
Clean letter of credit: negotiated against a clean draft without any documents
Documentary letter of credit: documents specified in the letter of credit must accompany the
draft
Revocable letter of credit:can be cancelled or revoked any time without the consent or notice
to the beneficiary
Irrevocable letter of credit:cannot be amended, revoked or modified by the issuing bank
without the express consent of all parties concerned
Thus the issuing bank has definite undertaking to honor drafts drawn under that credit,
provided that the conditions in letter of credit are met.
Confirmed letter of credit:Issuing bank sends letter of credit to the bank located in
beneficiarys country with a request to add confirmation to the credit
Confirmation involves legal undertaking on the part of the confirming bank that it will duly
honor payment or acceptance on presentation of documents
the secondary credit and facilitates the purchase of goods from a local supplier by the
original beneficiary of L/C
Red clause letter of credit: Allows exporter to withdraw a predetermined amount so
that he is able to pay his suppliers and purchase relevant letter of credit
Packing list: A list which shows number and kinds of packages being shipped, totals of gross,
legal, and net weights of the packages, and marks and numbers on the packages. The list may
be requested by an importer or may be required by an importing country to facilitate the
clearance of goods through customs.
Invoice: One of the common to both international and domestic transactions is the bill
(invoice) that the exporter sends to the importer. However, the content of an international
invoice is more complex and should be prepared slightly differently for a foreign customer
than for a domestic one.
Step 2:
On the basis of invoice, Shakti Forwarder preparing Annexure A, Annexure C, Annexure
D and SDF ( Statutory Declaration Form ) along with the invoice.
Step 3:
Send these annexure to the custom house. The custom prepares the shipping bill in four
copies on the basis of these annexure.
Step 4:
Custom calculate the duty (CESS) on the value of the goods.
Using the Treasury Challan the duty can be paid. Cargo can enter the port premises.
Step5:
Custom examined the cargo by using the sample. (Customs examined the cargo only after the
duty is paid) in case of more than one container in one B/L than A.C give some container no.
randomly for examination and that container must be de-stuff by EP.
Step 6:
The duplicate shipping bill and wharf age duly paid is given to the container agent. The
container agent hand over the duplicate shipping bill to the vessel agent who is here uses it
for the purpose of filling EGM (Export General Manifest).
The container agent gives the wharf age form paid is given to the container agent grants the
loading permission. (But in case of the break bulk cargo, the EP itself submits the wharf age
paid form to the port authority, so that loading can be allowed in the vessel).
Step 7:
In the case of break bulk, after loading the cargo the chief officer issues the mate receipt, on
the basis of which captain of the vessel issues the bill of lading.
Step 8:
Besides all the EP sends the phytosanitary certificates/pre inspection certificate to the
exporter so that with all documents he can submit this to the bank.
In case of charter, after processing and shipment of the goods following documents are sent
back by the EP to exporter.
The container is stuffed and the required information is received from the port office, such as
the container number, and the Vessel name and No. The details are entered in the Software
(Visual Samudra) also each B/L is given a manual entry if not computerized. Than the details
are entered in the software and the final print of the B/L is taken. In B/L there are two types.
Receipt for shipment: If the shipper wants a receipt the shipper can get the receipt when the
container is ready to load on a vessel.
HBL House Bill of Lading
HBL House Bill of lading is made when the information is received for the port office. If
the shipper wants a bill before the loading of vessel on board, than HBL is provided. HBL is
also sent to shipper for approval.
MBL Master Bill of Lading
MBL- Master Bill of lading is the final copy of Bill. It is given to the shipper it contains all
the details of everything. The Bill is used to charge the fees from the shipper. It is only given
after the container is loaded on to the vessel for sail.
Now if the freight charges are paid by the exporter then bill of lading is stamped as freight
prepaid& if the freight charges are to be paid by importer then bill of lading is stamped as
freight to pay.
Issued by commanding officer of the ship that cargo has been loaded to the ship name of the
vessel, date of shipment, condition of cargo at the time of receipt, berth, and description of
packages.
Mate receipt is handed over to the port authorities so that port dues are cleared by the
exporter. Bill of lading is issued by the shipping company only after the mates receipt is
submitted by the exporter
Under customs act, every exporter is required to declare export value of shipment ad give an
undertaking that export proceeds would be realized within a period of six months from the
date of shipment or due date, which ever is earlier. If customs clearance for the shipment is
made manually, declaration is made in GR form, in duplicate. If the clearance is
computerized, SDF form, in duplicate, is used in place of GR form.
Bill is generated in the customs clearance on the basis of The invoice is given to the company
by the shipper. And a shipping the invoice and packing list. When cargo is stuffed, inside the
container, in our port office or at factory. The details are given to the corporate office
documentation department via fax. The details as such received are feed in to software called
Visual Impex. Than, the details are sent via Ice gate link to the customs database. In return,
the customs allocate a shipping bill number and print a shipping bill in the port office which
is to be collected from the port office. Further, the procedure goes for carting and loading the
cargo into the vessel.
Certificate of origin.
A document provided by the exporters chamber of commerce that attests that the goods
originated from the country in which exporter is located.
Documents submitted by EP to customs:
Invoice.
Packing list.
Self Declaration Form Or Gr Form
Acceptance of contract.
Letter of credit.
Quality Control Certificate.
Inspection certificate
Export license
Weighment Certificate
Shipping bill
2) To the port authorities:
Port Trust Copy of the Shipping Bill
Letter of credit
Commercial invoice
Bill of lading
Insurance Policy/Certificate
Bill of exchange
Bank certificate
Certificate of Origin
Shipment advice
4) To the RBI:
Copy of the invoice
Sales Contract
Bill of lading
Export contract
Letter of Contract
Statement of profit and loss in the transaction covered by the export contract
Original Customs
Second copy Agent
Third copy Exporter
One copy Wharf age refund
One copy is for CESS
Chapter No.3
Data Analysis and Interpretation
Domestics
International
By Road
By Sea
By Air
40 %
0%
0%
0 %
60 %
100 %
Domestic
Interpretation:
Transportation by Road is 40 % and By Air is 60% for domestic purchase order.
International
Interpretation:
Transportation by Air is 100 % for International Business (i.e. export).
5%
95%
Interpretation:
Sea Foods like Shrimps, Prawns, few sea foods which is imported and exported from
Europe and India as compared to other countries shows that India is the largest
Country of import other countries who are the competitors.
3) Export of Products :
Europe
20 %
Arabs Countries
50 %
Other Countries
30%
Interpretation:
Products for export to Europe is 20 % and Arabs nations getting export of 30 % and
other countries exporting products is 50 %.
Market is-:
Indian Market
15 %
International Market
85 %
Interpretation :
The above graph shows that Major supply of Seafood is in the International Market
that is 85% and in the Indian market the supply is about 15 percent of Sea Foods
&Domestic Market:
Europe
70 %
Indian Market
30 %
Interpretation:
70 percent of Sea foods productsis being purchased by European Countries and 30
percent of Sea foods is purchased by Indian Market like shopping Malls, Private
Restaurant, Hotels & Stores.
0%
By Transportation Breakage
5%
Interpretation:
This above graph shows that only 5 percent of damage happens while road
transportation and 100 % is safer by Air Transportation without any damages it means
that by Air Transport it is 100 percent safer.
Due to the climate condition there is no damage it is 100 percent safer because it
contain 2oC to 8oC temperature Ice packages like Thermocol Boxes, Ice Packs.
7) Products of Fisheries.
10 %
Sea Foods
90 %
Interpretation:
This above graph describes that Packed Sea Foods makes 10 % of .and 90 % of
Production.
95 %
5%
Interpretation :
Above graph depicts the percentage of consignment of products is delivered 95 % on
time and 5 % consignment of the delivery are having delay& deference.
09) Fisheries holds how many share for sea foods in India market:
fisheries
95 %
Other
5%
Interpretation:
This above graph show that the Fisheries is holding 70 % Share for Sea Foods
towards other Countries as agents having 30 % of Share.
Chapter No.4
Finding
FINDINGS
On the execution of the objective of study, it is inferred that processing of export order
requires meticulously complying the custom stipulations which therefore takes longer
time.
A careful planning and micro level careful implementation of appropriate procedure can
help to reduce time and cost.
An accurate, error free documentation not only reduces the threats of frauds, bottlenecks
and risks but also enhances the business relationship between Exporters, Importers &
Governments.
Since the government export policy is very dynamic along with volatile markets, it is
suggested that the exporter should be alert & vigilant to make himself aware of the
changes.
Its impact & influence, new incentives awarded and benefits in future
It is necessary to change the business strategy accordingly
Chapter No.5
Limitation& Suggestion
The concerned authorities could not disseminate complete information under the
pretext of secrecy & confidentially as per the policy of the organization.
No clear, comprehensive information of the operations of Forwarding Agents.
Export Rules, Regulations & Compliances are required to be followed meticulously
to cover thoroughly in short termproject.
In sufficient response by executives & supervisors in respect of related on account of
time constraints.
Chapter No.6
Conclusion
CONCLUSION
The Indian business environment is changing with the rapid growth in infrastructure dynamic
technology. Government policy to boast up exportwith the increasing inflows of
multinationals, trade has been enhanced, which result in stiff competition between the
organizations.
Despite the stiff competition effective implementation of quality management system and
customer centric approach.
It is clear from the above study that the complexity of international import-export
businesscanbe overcome easily by a systematic export procedure & fair documentation. This
is only thedocumentation which safeguards the interests of Exporter, Importer, Banks,
Governments,Transport Agencies, Insurance Agencies and Inspection Agencies. Thus the
whole studyconcludes in brief
To survive & grow in todays international market for any export house, the systematicexport
procedure is compulsory.
To overcome any kind of error, bottleneck, fraud and mistake; the awareness
andimplementation of standardized rule-regulations & documentation is necessary.
The final indicator of success any business is its financial viability and in exports theinflow
of funds is from across the borders. Thus mode of payment must be decided onthe basis of
best business suitability according to the Govt. & RBI policies.
Also the Government of India has instituted many support programmers with a view togive
thrust to our sectors. These programmers have been made to facilitate the exportersin their
exports efforts at various stages of export process.
Chapter No.7
Bibliography
BIBLIOGRAPHY
References
1)
2)
3)
4)
5)
C.R.Kothari
Paras Ram Anagram
Thomas E. Johnson
Export Import Documentation : Prof: D C Pai
Logistics in International Business : Prof: Rajiv Aserkar
Websites
1) www..indianfisheries.icsf.net
2) www.indiamart.com Transportation and Shipping Transporters
Appendix
Types of transport used, that is by Road, Sea and Air.
Export of Products :
By air
By sea
By road
Europe
Arabs Countries
Other Countries
Total Number of supply of Seafood in the Indian and International Market is-:
o Indian Market
o International Market
How many % of Sea foods is being purchased by Europe and Indian
Products of fisheries
Packed Sea Foods
Sea Foods
fisheries
Other