ACKNOWLEDGEMENT

Life of human beings is full of interactions. No one is self-sufficient by himself whenever anyone is doing some serious and important work a lot of help from the people concerned is needed & one less specially obliged towards them. I cannot forget acknowledging them in few words as without the guidance & coordination of them in my project report would not have been possible A large number of individual contributed to this project. I am thankful to all of them for their help and encouragement. My writing in this project report has also been influenced by a number of website and standard textbooks. As far as possible, they have been fully acknowledged at the appropriate place .I express my gratitude to all of them. First of all I owe my heartfelt gratitude to my guide prof. joshi for his noble guidance throughout the completion of the Project. I would like to extend my heartfelt thanks to Mr. Sushil gupta marketing Manager of flexituff international pvt. for giving me an opportunity to work on this project. I would also like to thank Mr. Shilandra sir Senior marketing Executive, Mr.Avinash sir and his team in document department of flexituff international pvt. Ltd. for his guidance, inspiration, and constructive suggestions, which helped me in the Project. I must also thank the management & HR Executives of flexituff international pvt. Ltd. to provide excellent opportunity and environment to be able to pull my project through. Cooperation of the staff is also gratefully acknowledged. Last but not least, also give my sincere thanks to all the people to directly indirectly have help and encourage me in finding the way to us collecting the requisite information and completing the project effectively and time Sourabh joshi PGDM 2nd sem Indore magt.Institute indore

Declaration
I hereby declare that this report on EXPORT DOCUMENTATION AND PROCESS has been written and prepared dy me during the academic year 20112012. This report (project)was done undertheable guidance and supervision of prof. S.D. Joshi sir faculty, IMI INDORE, IN partial fulfilment of the requirement for the POST GRADUATE DIPLOMA IN MANAGEMENT of the IMI INDORE.

I also decleare this project is the result of my own effort and has not been submitted to other institution for the award of any degree or diploma.

Place : indore

Sourabh joshi PGDM 3RD SEM. Indore mgt. Institute indore

COVER PAGE

EXPORT PROCESS AND DOCUMENTATION

PROJECT REPORT
This project report entitled Export Process and Documentation based on my knowledge and a month long work experience with FLEXITUFF International Pvt. Ltd. as a summer trainee.

SOURABH JOSHI PGDM 3RD SEM. IMI COLLAGE INDORE

EXPORT PROCESSANDDOCUMENTATION

INDEX
Introduction of study Objective of study Research Methodology Scope of the Project Limitations of the study

Company Profile Organization detail Work pattern

Product range Data Analysis and Interpretations Findings Bibliography

INTRODUCTION OF STUDY
This project is all about to know about export import procedure/ documentation of shipment. This project puts more focus on to know custom clearness, to make export - import invoice, to get shipping bill number from custom department make sample document pre and post document of export etc. This project will also find out how flexituff international Pvt. Ltd. could sustain in the competitive world by providing vast range of bulky bags handling through all instruments which flexible prompt and innovative in meeting the requirement of the customer. The purpose of the study was to know about export import documentation of felxituff internationals Pvt. Ltd. Product. Flexi tuff international pvt. Ltd. Is worlds second largest

manufacturerof fibc bulk containor . They export 90% of there product in all over the world .

OBJECTIVE OF THE STUDY

To know about export import process.

To know what are the documents required before and after selling product

To know different type of documents and its process To know about sales process TO know about product detail and its export policy

RESEARCH METHODOLOGY

Collect data/information about process through: Primary data collection: E-mail Telephone Invoice Packing List

Secondary data collection:>

Invoice

> Packaging list > > Shipping bill Internet

RESEARCH DESIGN

Research

design

is

the

based

framework,

which

provides

guidelines for the research process. It is a map or blue print according to which the research is to be conducts. The research design specifies the methods for data collection & data analysis determine the source of data. Most specifically it was a kind of Descriptive conclusive research who takes care of who, when, where, what, how and why aspects of the investigation further the researcher used the statistical method to serve he purpose of project, it permitted the research to derive more accurate generalization whose reliability could be

measured.

CENTRE RESEARCH RESEARCH TECHNIQUE TOOL USED DATA SOURCE

: ALL OVER INDIA : EXPLORATORY : QUALITATIVE & QUANNTATIVE : TELEPHONIC & E-MAIL : PRIMARY & SECONDARY

SCOPE OF THE STUDY

The scope of marketing research could cover the business problems relating to the followings. Types of consumers that compromise present and potential markets. Buying habits and pattern of consumption Size and location of different markets, not only in India but also overseas. The prospects for growth or construction for the current markets being served. New mantras of emerging segments. Marketing and manufacturing capabilities of competitors. Most suitable entry timing. The current and prospective competitive position. Know about customer requirement. To know about competitor and provide support . Chances of improvement of current channels.

LIMITATIONS OF THE STUDY

Not a panacea Not an exact science Limitation of time Erroneous findings Not exact tool for forecasting In experience research staff Narrow conception of marketing research

COMPANY PROFILE

INTRODUCTION OF THE ORGANIZATION

Flexituff International Ltd, a company promoted by the renowned Kalani group from Indore. Flexituff has the largest capacity in India (2nd largest in the World) to produce PP woven based products. It has the most modern Plant & Equipments under one roof to convert PP granules to tapes, fabric, printing, extrusion lamination & bag making. Flexituff is the first company to start BOPP printed & laminated pp woven bags in India about seven years back. It is the leader in Jumbo bags, Big bags and container liners. Due to continuous support and strength derived from its own R& D and the international quality set & maintained by its team of scientists, engineers & professionals, today, Flexituff is exporting to more than 40 countries in the world and has been receiving Best export awards year after year. flexituff are also glad to mention here that Flexituff is the first and only Asian company now successfully audited and certified by AIB (American Institute of Food Bakers, USA) and BRC (British Retailers Consortium UK) to make direct food contact bags for supplies to American and European companies. We are also certified for ISO 9001: 2000 and HACCP. In addition to three Units at Pithampur near Indore, we are coming up with another most modern Unit at Kashipur at Uttarakhand, where the commercial production is started. . This Unit will have excise duty exemption for next 10 years and partial exemption for CST. flexituff are catering to different sectors like; Agriculture produce-vegetables, fruits, rice, wheat, atta, besan, salt, spices, as well as to other sectors like; fertilizer, chemicals, cement, etc. We also have the experience & expertise to produce any type of PP / HDPE bags to customer specifications. We can confidently offer packaging solutions to prospective & other customers for packaging of their products right from 1 KG to 20, 000 KG. For your

ready reference, we are giving below list of our products: * BOPP printed / laminated PP woven & Non-laminated bags with or without liners**small bags*Jumbo bags*big bags*Container Liners*Thermoformed wares / products**PP sheets*PP panels (substitute to wood) *Leno bags*Printed & unprinted fabric*,etc. Manufacturer and exporter of all types of bopp printed bags, garden waste bags, asbestos bags, form fitted liner bags, tunnel lift bags, container liner bags etc Manufacturers & exporters in India, having ISO 9001 certification.

Team Flexituff is committed to serving all your FIBC requirements. The commitment stems less from the mammoth manufacturing facilities we possess and more from our 5000 strong work force. Nothing defines Flexituff better than its people. Young in outlook and rich in experience, Team Flexituff strives for total customer satisfaction, continuous improvement in quality and delivering ever larger value to its buyers. Despite the over arching team spirit that prevails at Flexituff, we believe, commitment to customers begins with the individual. Although, our 5000 member team works like a well greased machine, it is the individuals - the cogs, who fuel its driving commitment to quality and responsiveness.

100% customer orientation has helped Flexituff gain wide global market share. A fact, acknowledged by the Govt. of India. Awards, citations, growing volumes, expanding product range and satisfied customers are achievements we now take in our stride. But nothing fails to tickle us more than the idea of an impossibility. Throw us a challenge and you have us hooked.

company features
Team Flexituff nurtures its hunger to hit the ball out of the park. We like to be known as partners who can rise to the moment, who can be counted upon to meet a crisis head on... Size Matters So does integration... but what matters most is the system of putting it to use. That is where, Team Flexituff scores. I would like to believe we are engaged in an enterprise which delivers ever greater value to our customers. And we can partner ourselves as vendors who can be intrinsically relied upon to deliver any FIBC requirement Within an exacting spectrum of cost, quality and delivery schedules. I would like to believe, that our products impact the business of our clients. That our endeavors can earn profits for our stakeholders, value for our customers and equity for our brand. Emergencies...? No sweat ! Pharmaceuticals...Bulk Drugs...Cement...Polymer Resins...Agro Produce...Chemicals... you name it. Team Flexituff has an FIBC ready to package your product. You want it swiftly? No sweat! You want last minute additions to the your existing order. No sweat! You want a complicated sample in 72 hours? No sweat! You want 1000 more bags in tomorrow's shipment? No sweat! You want to upstage your competitor? No sweat! Our fully integrated plant eats emergencies for breakfast. Our dedicated Account Handlers stay in daily contact with you. Never do you wonder who was the guy you talked to last. Never do your emails stay unresponded for more than 24 hours. Never do we give you a reason to sweat. Say goodbye to sweat! Turn to Team Flexituff. Decoding your needs, pre empting them The wherewithal to service your requirements in every industry. In today's market dynamics, brands seek to reach all corners of the world while retaining geographical production advantages. This is where FIBCs can help ensure gobally standardized quality, delivered in local flavor. We believe the advantages of FIBC are here to stay and in days to come customization will evolve itself to a very fine level.

We provide bulk packaging, we are well placed to cater to such customized requirements. Our integrated plant is uniquely poised to address this process of customization. From the polypropylene pellets used to extrude the yarn, to the bales of finished FIBC packed to customer specifications, our across the board integration allows us to customize each individual stage of your requirement. Our rich and varied experience of developing bulk packaging solutions for various industries have developed into a common capital for our buyers. An asset, which can be tapped by our clients for developing FIBC designs, for addressing material configurations and logistical alternatives. Our R&D initiatives have worked well for our clients. We continually strive to optimize our products to render a more efficient service while endeavoring to reduce costs, enhance quality and shorten delivery schedules. The benefits of which, obviously, get passed to our buyers. An endeavor which has helped reduce the cost of D Bag drastically. Bulk transportation of explosive and static sensitive products can now be extremely economical. These bags are tested on a complex matrix of parameters to enable us to deliver an FIBC, which is completely safe and secure. "At any given time, Team Flexituff is travelling to be closer to you. No distance is too large to not know your needs. We do realize that opportunity dances with those on the dance floor."

Market place and MARKET FOOTPRINT

GERMANY; FRANCE; IRELAND; NETHERLANDS; SPAIN; MEXICO; UNITED KINGDOM; BELGIUM; ITALY; PORTUGAL; GREECE; BRAZIL; USA; UAE; RUSSIA; KENYA; RWANDA; CHILE; ERETRIA; CANADA; SWITZERLAND; AUSTRALIA; ALGERIA; JAPAN; NEW ZEALAND; CHINA; EGYPT; SINGAPORE; SWEDEN; ISRAEL; AUS

Delivering to your exeptation

The expectations of response, confidentiality and post sales service. At Flexituff, we aim to change your experience of procuring an FIBC. A responsive and singularly customer oriented organization, we aim to evolve into a one stop FIBC provider for our buyers. Whatever be your need of bulk packaging, we would like to explore the solution and service your need. As a tailor made product, we understand the buyers' expectations of evaluating multiple options before selecting the ideal one. Our inhouse Design and Development Centre is able to give you numerous alternative design samples, with in your specified time frame. The cofideltiality factor We understand that most buyers and resellers would like to be assured of the confidentiality of their product specifications, design and end users. We consider our strategic partners members of our extended family and pivots on which our volumes and global reach rests. As corporate ethics, Flexituff is committed to maintaining this confidentiality and would like to reassure our buyers in this context. The reach factor Flexituff employs the largest team of travelling professionals to be in easy reach of our buyers. Our technically savvy, multilingual team can promptly touch base with you in an emergency. All our front line professionals are competent in English and language is never a barrier when dealing with us. The Print Accuracy Factor: As a policy, Flexituff ensures 100% approval of print and labels before production. The print section is equipped with a digital camera, where all print production is photographed and emailed for approval before commencement of commercial productions. A video conferencing set

up is also being installed to address the need of live discussions. The Post Sales Service Factor: FIBC being a 100% customized product, bag approvals and specification tweaking are routine hurdles in our endeavor for buyer satisfaction. Flexituff addresses these with a view to finding a mutually acceptable solution. Any problem at our clients' end is OURproblem and has to be resolved mutually and amicably. Flexituff International Limited is one of the very few fully integrated plants is the world. Its 100% integration permits us to deliver our products in multiple options while retaining 100% control over the manufacturing process. Needless to say, Flexituff is fully independent from the vagaries of Outsourced material or workmanship. Last minute change in specifications, add on orders can be quickly and comfortably accommodated at Flexituff. We are able to maintain full traceability of material and workmanship in our Quality Assurance system

TOTAL QUALITY CONTROL

enhanced customization, last minute changes, faster sampling and lower turn around delivery time are the winning advantages of our vertical integration. Microprocessor controlled extrusion ensure excellent input for the subsequent operations. Extrusion plants at Flexituff - the very life blood of the manufacturing process, are state-of-the-art Starlinger. This ultimate extrusion technology comes alive in the experienced hands of our workforce to process over 60,000 kgs. of virgin polymer everyday. Producing impeccable high tensile strength tapes with optimum elongation - a pre requisite for perfect fabric. Precision winding being the key to weave fine fabrics, all tapes are wound by new generation inverter controlled winders to produce even bobbins. Quality checks begin from the very initial stages of Tape-making. Every lot produced is checked for its Denier, Strength, Elongation and Color. If 3 layer co-extruded liner plant is a luxury, so be it. Our buyers deserve this luxury. This over qualified plant ensures that we produce liners with zero pinholes, fish eyes or any other extrusion flaw. At Flexituff, microprocessor controlled Form-fit Liner Machine cuts, seals and form-fits the liner in a dust-free clean room environment conforming to ISO Level-7 (< 10,000 PPM). Be it Glued, Tabbed or Flanged-in, well executed process eliminates liner twisting inside the bag. The vital facility of coating the essential prerequisite for making FIBCs is a 2.4 meter wide coating plant laminating both circular and flat fabric in thicknesses ranging from 15 to 80 microns. A unique fabric cleaning device, designed and developed in-house, is mounted on the coating machine to avoid any foreign particle going in-between Fabric and the coating.

As the foremost manufacturer of FIBC in the world, we are sensitive to decoding customer needs. Our design and development team is committed to evolving bulk packaging solutions for your specific requirements. Infact, we try to preempt them..

Flawless weaving, off the floor stacking of stretch wrapped rolls and Unsurpassed 6 colour printing.
Fine and consistently even fabric is the face of our FIBCs. Over 3 million square feet of high quality fabric is woven everyday on an array of wide width Starlinger looms. Computerized weaving machines with the help of skilled hands produce consistent quality fabric. In the end what you have from this state-of-the-art facility is an amazing collection of poly woven fabric, ranging 60 GSM to 300 GSM ready to be turned into burly jumbo bags for stringent end applications. Flexituff's R&D initiatives are amply reflected in its ultrasonic slitting and sealing technology which makes our fabric comparable to tuck in fabric of a Sulzer loom. Flexituff recognizes that for a critical food contact application, its not enough to mere make a high quality fabric, the fabric also needs to be contamination-free, carrying no foreign particle or even a speck of dirt. To achieve this high level of fabric cleanliness, fabric is stretchwrapped on looms itself. Raising the bar on cleanliness, the stretch sealed fabric rolls never touch the ground. 4 color printing a rare facility with others is pass at Flexituff. For, we utilize a 6 color flexographic printing machine of a kind, which makes the fabric come alive. This excellence finds it's match in the fabric's evenness to create sharp, even, non-fading prints repeats after repeats. At Flexituff, we hardly believe that quality is what clients demand. Out here, we believe, quality is what you live. And breathe. Quite simply, the cost of making a quality product is seldom more than that of a sub standard product. But its value, far higher. .

For consistency in quality and schedules, even the smallest auxillary is manufactured in-house.

Genuine quality, is a chain without a weak link. Any FIBC, therefore, is as good as the quality of input that goes into making it. Recognizing that even a small leak can sink a ship, Flexituff rather chose to invest in establishing facilities for making every FIBC input in-house. It has paid rich dividends in terms of customer satisfaction. Take for example high tenacity sewing yarn for FIBCs. Flexituff commissioned state-of-the-art Fare multifilament plant which produces 7 GPD UV stabilized sewing thread in the deniers ranging 420 to 5200.also set up in-house is the facility of twisting the filament yarn into sewing thread to required specifications. Or take the all important webbing. A battery of needle looms make 75 million metres of webbings required to produce bags at Flexituff. In-house production not only ensures required level of UV stability and the strength but also customizing of webbing to colours and weaving required by the client. The list is quite exhaustive. Be it filler-cord for sift proofing, Tie-tape, rope and B-lock bag for closure, document pouch, identification labels, printing stereos all inputs get made in-house.

An intelligent, skilled and trained workforce assembles the components into efficient bulk containers
The assembly section is planned for neat and clean environment, smooth workflow and strict adherence to Clean Room Specifications. The specially trained work force, qualified for basic intelligence parameters and quality orientation works as a team to deliver consistent product quality. Full scale production for any bag starts only after the first prototype bag has been certified by the QC in all respects, including Load Test. Each and every bag is inspected for all critical and aesthetic parameters. To ensure contamination-free bag, every bag is cleaned on pneumatically-operated cleaning machine where double action blowers with alternating blowing and suction cycles eliminate the smallest loose particles from the bag. All food contact application bags essentially pass through a Metal Detector unit eliminating any chance of metal no matter how light or small to slip in the bag.

Traceability
Flexituff believes in acquiring wisdom from its mistakes. To that effect, Flexituff has in place a complete traceability system to track down the root cause of deviation, should they happen to occur. All bags carry a unique code number, from which Flexituff can trace the set of workers who made the bag, the date on which it was made up, details and properties of fabric and all other components - going back to the batch of raw material which was used for the extrusion. This system allows for course-correction by identifying the root cause of the problem and carrying out corrective measures to avoid reoccurrence.

U.V. Resistance test

Bulk bags are often subject to intense UV Rays for months at a time. The body fabric and the seams must survive this exposure without weakening. FIBCs often undergo rapid degrading under the influence of Sun Light, unless they have been stabilized in durable fashion. Sun Light and Moisture causes millions of dollars of material damage every year. To ensure that Flexituff FIBCs would last outdoors without weakening, every fabric and the yarn produced undergoes a U V Resistance test in State of Art QUV accelerated weathering tester. Accelerated QUV tester reproduces the damage caused by sun light, rain and dew. QUV tests material by exposing them to alternating cycles of light and moisture at a controlled elevated temperatures. QUV Resistance test conforms to EN1898 and ASTMG154. Appreciating the need to be 100% right every time, as an abundant precaution, Flexituff has instituted additional layer of quality audit. Where a team of professionals randomly draw 10% bags for inspection from duly baled ready to go bags. Any minor deviation in the drawn sample leads to entire lot to go back for re-inspection and segregation. Packaging these packages is an art in itself at Flexituff. Each batch is packed in compact cuboid bales which are duly stretch-wrapped and marked for easy readability and stackability at clients place. The new European and the U.S. Pallet Norms ISPM-15 are followed as every individual pallet is treated and marked.

Load Test Rig

First bag for every order and also randomly selected bags from daily lot get continually load tested on our 4 Load Cell Test Rig. Bags get tested for 5, 6 or 8 times their Safe Working Load. This in-house test facility is very vital to the confidence of our buyer as it eliminates any possibility of an un-safe bag getting production.

Flexituff manufactures one of the widest range of FIBCs in the world. Whatever be your packaging and bulk transportation requirement, you will find a suitable product in our comprehensive range. Moreover, with our in house Design & Development Center, any packaging requirement can be aptly developed, tested and offered as sample very quickly. Some of the standard designs at Flexituff are as under:

High-end Bags for food and pharma industry

These bags are made with a high degree of precision. Precautions have to be taken so as to avoid contamination of any kind from entering the bag. These are normally laminated or lined bags made in a clean environment. Their main application is in packaging of food products, pharmaceutical products, special plastics for manufacture of specialized electronic items such as compact discs, circuit boards, etc. Sift -proof Bags These bags are needed for products which are powdery in nature and are stitched in a special manner so as to block needle holes thereby preventing sifting of powder from bags Baffle Bags These bags have baffle restraints stitched onto all corners of the bag which prevent the bags from expanding beyond a point. Mainly these bags are used where cargo has to be containerised or space has to be saved.

Form-fitted Liner Bags

These are special FIBCs where the liner of the bag is also shaped in the shape of a bag itself. These liners can be attached to bag by various methods i.e. gluing, tabbing or sewing. The main purpose of doing this is to avoid extra liners inside the bag and liner easily forms the shape of the, bag rather than creating bulges in the bag.

 Builder Bag / Tunnel-lift

These are used specifically in construction and aggregate industry and are used for filling sand, construction waste or aggregates. They are simple FIBCs and are high volume usage bags owing to nature of the industries that they are used in. A relatively recent development in this industry has created a tunnel-lift bag which effectively can be used without a pallet and uses body fabric as a lifting mechanism apart from 4-loops. By avoiding the use of pallets, it saves cost to end-users as a package. Single-loop Bags These bags are normally made for fertilizer or cement packaging. These bags are different in construction where body-fabric of bag itself is formed into a lifting loop Sling Bags These are mainly used to carry 20 to 40 bags of 25 to 50 kg each. Thus, it is an outer bag which enables easy carrying or mechanical handling of small bags without using pallets Flexituff manufactures one of the widest range of FIBCs in the world. Whatever be your packaging and bulk transportation requirement, you will find a suitable product in our comprehensive range. Moreover, with our in house Design & Development Center, any packaging requirement can be aptly developed, tested and offered as sample very quickly. Some of the standard designs at Flexituff are as under: High-end Bags for food and pharma industry These bags are made with a high degree of precision. Precautions have to be taken so as to avoid contamination of any kind from entering the bag. These are normally laminated or lined bags made in a clean environment. Their main application is in packaging of food products, pharmaceutical products, special plastics for manufacture of specialized electronic items such as compact discs, circuit boards, etc. Sift -proof Bags These bags are needed for products which are powdery in nature

and are stitched in a special manner so as to block needle holes thereby preventing sifting of powder from bags Baffle Bags These bags have baffle restraints stitched onto all corners of the bag which prevent the bags from expanding beyond a point. Mainly these bags are used where cargo has to be containerised or space has to be saved. Form-fitted Liner Bags These are special FIBCs where the liner of the bag is also shaped in the shape of a bag itself. These liners can be attached to bag by various methods i.e. gluing, tabbing or sewing. The main purpose of doing this is to avoid extra liners inside the bag and liner easily forms the shape of the, bag rather than creating bulges in the bag. Builder Bag / Tunnel-lift These are used specifically in construction and aggregate industry and are used for filling sand, construction waste or aggregates. They are simple FIBCs and are high volume usage bags owing to nature of the industries that they are used in. A relatively recent development in this industry has created a tunnel-lift bag which effectively can be used without a pallet and uses body fabric as a lifting mechanism apart from 4-loops. By avoiding the use of pallets, it saves cost to end-users as a package. Single-loop Bags These bags are normally made for fertilizer or cement packaging. These bags are different in construction where body-fabric of bag itself is formed into a lifting loop Sling Bags These are mainly used to carry 20 to 40 bags of 25 to 50 kg each. Thus, it is an outer bag which enables easy carrying or mechanical handling of small bags without using pallets

CONDUCTIVE TYPE-C BAGS: These are special bags which allow static electricity to pass through the bag when the bag is earthed. Fast filling and discharge of an FIBC by a powdered material causes static electricity to accumulate inside the bag. Further, to avert the dangers of explosion due to such accumulation of static charge, conductive properties are created in the bag and bag is earthed to allow safe discharge of electrical charge. DISSIPATIVE TYPE-D BAGS: These bags are made by using a technology which allows static electricity charge to dissipate in micro-volts without a bag being earthed

Garden Waste Bags:

Your way to a better and cleaner environment... versatile garden waste bags for County Councils, Collection Services, Farms and Individual Residences: Ideally suited for: Grass cutting Hedge trimming Woody waste Kitchen waste Leaves & Shrubs

BOPP Printed Bags:

Be different! Do away with monotony and dullness of your bags. Style them with our high quality 6 color magic printing.

FIBCs? you name it! As the foremost manufacturer of FIBCs in the world, we are sensitive to decoding customer needs. Our Design and Development team, is committed to evolving bulk packaging solutions for your specific requirement. In fact, we try to pre empt them.

Flexituff is follow CSR People Focus

Dreams are what drive us. We respect people and value their individual differences and this has led to a free, vital corporate culture that encourages creativity. We are fortunate to have so many talented people with different backgrounds, interests and skills who come together to create offerings for the future. Flexituff is a place where teamwork is essential. Yet our employees also maintain the freedom to work on their own, be creative and make their own decisions. And most of all, grow both personally and professionally. Equal Opportunity & Meritocracy: Environment, Health and Safety: Since its inception, the Flexituff core values of commitment to safety, health and the environment, high ethical standards and respect for people have been the cornerstone of who we are and what we stand for. Well communicated EHS policies ensure that production targets never override the safety of a person and that as a responsible corporate, we remain an environmentally responsible neighbor in the communities where we operate, acting promptly and surely to correct incidents or conditions that endanger health, safety or the environment.

Recruitment and promotions policy

Recruitment and promotions in Flexituff are all based strictly on merit. Equal opportunities are provided to all without regard to race, caste, religion, colour, ancestry, marital status, gender, age or nationality.

The Company believes that people accept meritocracy as a just and equitable system, and contribute best under optimum challenges and opportunities & differential rewards commensurate with performance. At Flexituff, our pursuit to achieve good governance is an ongoing process, thereby ensuring truth, transparency, accountability and responsibility in all our dealings with our employees, shareholders, consumers and communities. We aim to develop capabilities and identify opportunities that best serve the goal of value generation, thereby creating an outstanding organization.

Its all about flexi tuff which detail get by flexis webside and also by companys internal and external sources........

EXPORT DOCUMENT PROCEDURE

In India, ships transport more than 90 per cent of the cargo. It therefore interesting to study the export processed by ship documentation related to it. Processing of an export order----i. Exporter operation starts with the receipt of enquiry by the exporter from importer. Bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc. ii. After the process negotiations importer sends a purchase order follow by letter of credit (if applicable). iii. The exporter manufactures the goods according to the

specification given in purchase order. iv. As soon as the representative of goods are ready the exporters invites the Export inspections agency (EIA) for pre

shipment inspection and obtain the certificate of inspection. v. After that, the exporter prepared following documents:--- PROFORMA INVOICE (5COPY) PACKING LIST (5COPY) SHIPING BILL (FULL SET 6COPY) ARE1 FROM EXSICE DEPARTMENT MARINE INSURANCE POLICY COPY OF PURCHASE ORDER / L/C vi. Above those documentation sends to CHA by exporter. vii. Based on these documents CHA agent completes the octroi formalities, obtain port permit and prepare shipping bill which is a customs documents.

viii. Custom department check the export cargo on the basis of information provided on the shipping bill. If satisfy then cargo allow to loaded on the board of ship. The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtains the bill of lading i. (B/L) from shipping line .B/L is a proof of dispatch of cargo and also a negotiable document. ii. After that, CHA agent send various documents back to exporter which is Customs attested invoice Copy of shipping bill Full set of non board bill of lading. Copy of purchase order or L/C Copies of ARE1 Form SDF form iii. After that the exporter submitted above these documents for negotiation to the bank which include :--- Commercial invoice (5COPY) Packing list (5COPY) SDF form Original copy of purchases order Certificate of origin

 Bill of exchange Gurranty remmittence Shipment advice

After that, bank scrutinizes these documents and if found correct make payment to exporter against documentations.

Export document detailed analaysis

Proforma invoice the following details are pertinent to the setting up of the proforma invoice and need careful attention:

A complete and clear description of the goods in question The quantity of goods in question including the number and kinds of packaging involved The total price of the goods (and unit price where applicable) The currency in which the goods will be sold (e.g. US dollars or rands) The likely delivery schedule and delivery terms The physical addresses of both the exporter (referred to as the shipper) and importer (sometimes referred to as the consignee) The payment methods, for example cash in advance or L/C The payment terms, for example 30 days on sight The Incoterm to be used Who is responsible for the banking fees and other related costs (insurance and freight costs are covered by the incoterm in question) The exporter's banking details The country of origin of the goods The expected country of final destination Any freight details such as the port of loading and discharge Any trasshioment requirements Any other information relevant to the order

Commercial invoice After the pro-forma invoice is accepted, the exporter must prepare a commercial invoice. The commercial invoice is required by both the exporter (to obtain the necessary export documents to enable the consignment to be exported, to prove ownership and to enable payment) and importer (who requires the commercial invoice to facilitate the import of the goods in question). In exporting, the commercial invoice is considered a very important document as it serves asthestarting document that underpins an export transaction.

The commercial invoice is essentially a bill (i.e. invoice) from the seller (the exporter) to the buyer (the importer) describing the goods to be sold and the terms involved. The commercial invoice will normally be presented on the exporter's letterhead and will be addressed to the importer. It should contain full details of the consignment, including price and other related costs, in order to facilitate customs clearance. It must be signed and dated. Freight and insurance, when included in the selling price, should be itemised separately as these charges are not subject to duty in certain countries. There is usually very little, if any, difference between the final proforma invoice accepted by the importer and the commercial invoice, except that the one is titled "Proforma Invoice", while the other is titled "Commercial Invoice". The following details need to appear in the commercial invoice:

The name of the shipper/exporter and their contact details, including physical address The name of the importer/consignee and their contact details, including physical address An order number of reference to correspondence between the supplier and importer A complete and clear description of the goods in question (including brandmarks and the HS number) The packing details unless provided in a separate packing list The quantity of goods in question including the number and kinds of packaging involved The external dimensions, cubic capacity, weight, numbers and contents of each package shipped. The total price of the goods (and unit price where applicable) usually quotes as a CIF/FOB price The currency in which the goods will be sold (e.g. US dollars or rands) The type and amount of discount given The likely delivery schedule and delivery terms The payment methods, for example cash in advance or L/C The payment terms, for example 30 days on sight The Incoterm to be used

Who is responsible for the banking fees and other related costs (insurance and freight costs are covered by the incoterm in question) What the freight and insurance charges are The exporter's banking details A declaration of the country of origin of the goods The expected country of final destination Any freight details such as the port of loading and discharge Any trasshipment requirements Any other information relevant to the order

Packing list
When you prepare your goods for shipment, you will be required to prepare a detailed export packing list. This is a formal document that itemises quite a number of details about the cargo such as:

Your name and contact details The importer's/consignee's/buyer's name, address and contact details The gross, tare and net weights of the cargo The nature, quality and specifications of the product being shipped The type of package (such as pallet, box, crate, drum, carton, etc.) The measurements/dimensions of each package The number of pallets/boxes/crates/drums, etc. The contents of each pallet or box (or other container) The package markings, if any, as well as shipper's and buyer's reference numbers

It is also important that the details on the packing list (such as shipper's/importer's details, number of items involved, etc.), match what is stipulated on the commercial invoice and bill of lading/airway bill. You can imagine that if there is a mismatch between the packing list and the other transport/export documents that this may lead to closer scrutiny of the cargo and may ultimately result in delays in the

cargo arriving at its destination! Note that pricing information is not required on the packing list. The purpose of the packing list The packing list should be attached to the outside of a package in a waterproof envelope or plastic sheath marked "Packing list enclosed". The list is used by the shipper or forwarding agent to determine (1) the total shipment weight and volume and (2) whether the correct cargo is being shipped. In addition, customs officials (both local and foreign) may use the list to check the cargo. Packing lists come in fairly standard forms and can be obtained from your freight forwarder. Don't make mistakes with the packing list It is essential that the packing list agreeexactlywith all the terms and conditions of the export sale. It is important for you to realise that any mistake on the packing list may cause a delay in clearance at the port of destination. Customs Authorities in the target country have the right to delay the clearance of the shipment until the importer provides a packing list reflecting the real contents of the container (should your packing list be incomplete or incorrect). If all the information required for the packing list is already stated in the commercial invoice, then the packing list may be unnecessary. Our recommedndation is to provide it anyway - you don't want the consigment delayed simply becuase a customs official demands to see a packing list (you can never provide too much information).

Letter of credit
Sight credits This is an easy enough term to explain. A sight credit or L/C is one which paid upon presentation of the required documentation (as stipulated in the original L/C) to the issuing or confirming bank. As exporter, you need to be careful however, as some L/Cs state that payment will only be made at a specified branch counter of the issuing or confirming bank (and won't necessarily be paid or transferred directly into your account). The

process of having to go to a particular branch and receive payment and then to transfer this payment into your account will slow down the payment process and may add further costs to the overall process. Thus, when working with sight L/Cs (or any L/Cs for that matter) make sure where payment will be made. Usance credits An L/C can specify any credit period that you have negotiated with the importer. A letter of credit that that incorporates a payment after a given term (e.g. 60 days) is known as a usance credit (also referred to as a term or acceptance credit). The correct phrase is hat the L/C is at usance, meaning that it will come into effect at some future date (also referred to as maturity). You should note that the maturity date may also have further stipulations associated with it; for example:

90 days sight 120 days from Bill of Lading (B/L) date 60 days and upon issuing of a FDA (US Food and Drug Administration) clearance

Some of these provisos can have a significant impact on your receiving payment and you should make yourself fully aware of any such provisos to your L/C. A usance/term credit will require you, as exporter, to finance the gap between delivery and payment. Transferable credits An irrevocable L/C may also be transferable. In the case of a transferable L/C, the exporter can transfer all or part of his/her rights to another party. Transferable letters of credit are often used when the exporter is the importer's agent or a middleperson (i.e. export agent)

between supplier and importer, and not the actual supplier of merchandise. With a transferable letter of credit, the exporter uses the credit standing of the issuing bank and avoids having to borrow or use his own funds to buy goods from a supplier. Hence, it is a viable pre-export financing vehicle. Before transfer can be made, the exporter must contact, in writing, the bank handling the disbursement of funds - the transferring bank. Transferable L/Cs can only be transferred based on the terms and conditions specified in the original credit, with certain exceptions. Therefore, it may be difficult to achieve flexibility and confidentiality with this finance method. The transferring bank, whether it has confirmed the letter of credit or not, is only obligated to make the transfer to the extent and in the manner expressly specified in the L/C. Transferable L/Cs involve specific risks. When a bank opens a transferable letter of credit for a buyer, neither party can be certain of who will be the ultimate supplier. Both parties must rely upon the importer's assessment of the exporter's reputation and ability to perform. To reduce overall risk and prevent the shipment of substandard goods, an independent certificate of inspection may be required in the documentation. For simplicity's sake, many banks prefer single transfer and discourage multiple transfers, but will do multiple transfers if conditions are right. Partial transfers can also be made to one or several suppliers if the terms of the original L/C allow for partial shipments. The processing of this type of letter of credit can become complicated and tricky, requiring logistics coordination and the highest level of precision. Incomplete and/or ambiguous information on the transferable letter of credit almost always leads to problems. Furthermore, the beneficiary of the transferable letter of credit must

be available throughout the entire negotiation process to assist the transferring bank. Revolving credits The term "revolving" is used to describe a letter of credit, which, incorporates a condition whereby the credit amount is to be renewed or reinstated automatically without the need for a specific amendments to the credit. This type of credit is used when regular trade is conducted between an exporter and an overseas buyer. A revolving credit can be irrevocable or confirmed. Although a credit may, in theory, revolve in relation to amount, in practice this is rare, as it would mean that there might be no limit to the number of times a specific amount could be drawn. A credit, which revolves in relation to time, is a much more common form of a revolving credit. For example, a revolving credit could be made available for an amount of US$ 10 000 per month (irrespective of whether any sum was drawn during the previous month) with an overall validity of six months. A revolving credit may be:

Cumulative, i.e. any sum not utilised during the first period is carried over and may be utilised in the subsequent period. Non-cumulative i.e. any sum not utilised during the first period ceases to be available in subsequent periods.

Back-to-back credits Back-to-back L/Cs are another common occurrence in the world of international trade. When an exporter, who is not a manufacturer, but obtains goods from a supplier by acting as an export agent for the supplier for example, has received an L/C from an importer, the exporter, in turn, may request his bank to open a L/C in

favour of his supplier on the strength of the existing L/C. These two credits are said to be "back-to-back", that is to say the one is issued on the security of the other. A bank will only consider opening a second credit if the same goods are involved in both credits. In terms of the back-to-back L/C, the exporter is both the beneficiary/exporter of the first credit and the applicant/buyer for the second credit. Standby credits A standby L/C is one which is issued in favour of the exporter for the purpose of "backing-up" certain specified obligations of the importer. A standby letter of credit requires the exporter's presentation of documents which indicate that importer has not met the obligations which the standby letter of credit backs-up. A standby letter of credit, therefore, is not intended to be drawn upon by the standby letter of credit beneficiary unless the standby letter of credit applicant does not meet its obligations as specified by the standby letter of credit.

Certificates of origin
A Certificate of Origin (C/O) is required by some countries and is intended to certify to the importing authorities as to which country the products being imported were manufactured in - that is, the C/O certifies that the imported product meets the 'Country of Origin' requirements set by the importing country and which are expected of their foreign suppliers. It may be required that the C/O include information such as local material and labour content. In many cases, a statement of origin printed on company letterhead will suffice, although the document may need to be certified in some way. In other instances, specific types of C/Os may be required, such as the Generalised System of Preferences (GSP) Form A and the Chamber of Commerce C/O.

Certificates of Value (and Origin) A Certificate of Value is intended to confirm the value of a cargo to assist in quick clearing of the goods in the country of destination. Often the Certificate of value is combined with a Certificate of Origin and is referred to as a Certificate of Value and Origin (CVO). A CVO outlines details about the labour and packing costs, royalties or commissions (if applicable), freight charges and any overseas insurance costs. The CVO also provides an exporter's declaration and statement, in the form of clauses, about the value and origin of the goods. Fumigation certificate Some countries, such as Australia, Canada, New Zealand, the US and the UK, are very strict about letting in goods that might contain bacteria or insects that could harm their agriculture. For this reason, they may require a fumigation certificate - also referred to as a 'pest control certificate - as proof that the packing materials e.g. wooden crates, wood, wool etc., have been fumigated or sterilised. Fumigation certificates usually contain details such as purpose of treatment, the articles in question, temperature range used, chemicals and concentration used, etc. Sometimes they may be required for sea shipments, but not for air shipments. Your freight forwarder should be able to advise you as to whether you require such as certificate.

Bill of landing
A BOL is one of the oldest and most common forms of transportation documents in use today. It is a document that establishes the terms of a contract between a shipping company (or its agent) and the exporter/shipper (or agent, such as a freight forwarder). Within this contract, it is agreed that freight is to be moved between specified points for a specified charge. TransporThe BOL is normally completed by the exporter on forms issued by the shipping carrier. The BOL serves as a document of title, a contract of carriage, and a receipt for goods. The BOL also describes the kind and quantity of goods being shipped (such as the number of packages, the weight and

consignment dimensions), the shipper (or exporter), the consignee (the person or firm to whom the goods are being shipped), the ports of loading and discharge, and the carrying vessel.

Key points of BOLs

The key points that you should take note of, are:

The BOL is a legal contract between the shipper (normally the exporter) and carrier (the shipping line represented by the ships master or shipping line representative) As a legal document, the BOL plays an important role in releasing payment from the bank in conjunction with the Letter of Credit A BOL is a document issued by a carrier, e.g. a ship's master or by the carriers shipping department, or a representative of either of these two The BOL must be signed or authenticated by the person issuing the document The BOL must name the ship/vessel carrying the goods The BOL does not afford the holder of the document any ownership of the goods listed in the document (it is not a negotiable document) The BOL acknowledges that specified goods have been received on board as cargo for conveyance The BOL specifies both the ports of loading and discharge The BOL normally has a named consignee The BOL will specify the goods to be conveyed, their number, weight and volume BOLs are usually issued in three originals; one for the exporter/shipper, one for the shipping line and one for receiver/consignee of the goods.

An ocean bill of lading is the traditional BOL used wihen shipping goods with shipping lines. The ocean (also referred to as a marine) BOL is a document that outlines the terms between an exporter/shipper and the international ocean or marine carrier (i.e. shipping line) for the shipment of goods to a foreign location

overseas. The description of a BOL that was provided earlier in this section pertains mainly to an ocean BOL. A through BOL is a contract that covers the specific terms agreed to by an exporter/shipper and carrier. This document covers the domesticandinternational transportation of export merchandise. It provides the details of the agreed upon transportation between specific locations (usually the exporters premises and the exporters customers premises in a foreign destination) for a set monetary amount. An air waybill is a BOL that establishes terms of flights for the transportation of goods both domestically and internationally. This document also serves as a receipt for the exporter, proving the carrier's acceptance of the exporters goods and agreement to carry those goods to a specific airport. Essentially, an air waybill is a type of through bill of lading waybills. This is because air waybills may cover both international and domestic transportation of goods. By contrast, ocean shipments require both inland and ocean bills of lading. Inland bills of lading are necessary for the domestic transportation of goods and ocean bills of lading are necessary for the international carriage of goods. Therefore, through bills of lading may not be used for ocean shipments. Inland and ocean BOL may be negotiable or non-negotiable. If the BOL is non-negotiable, the transportation carrier is required to provide delivery only to the consignee named in the document. If the bill of lading is negotiable, the person with ownership of the bill of lading has the right of ownership of the goods and the right to reroute the shipment 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 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 BOL. 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 Company Name Ltd. or to order or assigns". Consequently, it can be endorsed by Company Name Ltd. or the right to take delivery can be transferred by physical delivery of the bill accompanied by adequate evidence of Company Name Ltd.'s intention to transfer. Also known as a negotiable bill of lading. Transshipment clauses If a BOL incorporates a clause stating that the carrier reserves the right to tranship, then the transhipment is allowed even if an accompanying Letter of Credit (L/C) prohibits transhipment.

Loading on deck Unless otherwise required by the Letter of Credit (L/C), the BOL should not indicate that the goods are to be stored on deck. Modern container ships carry about one-third of the containers on deck. Consequently, the BOL may contain a provision that the goods may be carried on deck. If such a provision is contained in the BOL, then the loading on deck is acceptable even if the Letter of Credit (L/C) stipulates otherwise, provided that the BOL does not specifically state that the goods are or to be stored on deck.

AIR WAY BILL

Air waybills (AWB) are a form of BOL and are used for both domestic and international flights. An AWB (also referred to as air consignment note or airway bill of lading) refers to a documentary receipt issued by a carrier (i.e. airline) in favour of a shipper for goods received and is

evidence of the contract of carriage to carry the goods to a specified airport under specified conditions, but it is not a document of title to the goods. Hence, the AWB is non-negotiable. It is usually the shipper the exporter - (or their agent) that completes the AWB. It serves as:

Proof of receipt of the goods for shipment Evidence of the contract of carriage An invoice for the freight, reflecting the shipper, the consignee and the goods being shipped, as well as the full freight amount A certificate of insurance (if carriers insurance is requested by the shipper) A guide to airline staff for the handling, dispatch and delivery of the consignment A means of clearing the goods through customs

Usually, the AWB consists of three originals and nine copies. The first original is intended for the carrier (airline) and is signed by the exporter (or agent); the second original the consignee's copy is also signed by the exporter (or agent) and accompanies the goods; the third original is signed by the carrier and is handed to the exporter (or agent) as a receipt for the goods after they have been accepted for carriage. The AWB must be accompanied by the commercial invoice, packing list, certificate of orgigin and any other document which may be necessary to clear the goods through customs (such as any health certificates, etc.). AWBs have tracking numbers which can be used to check the status of delivery and current position of the goods being trasnported.

Marine insurance Because of the enormous risks involved in international trade, it has become a core part of the international trading process for the parties involved to insure their respective risks. One of the major risks that international traders (exporters and importers) face is the risk of damage or loss during the trasnportation process.

This is where marine insurance comes into play. 'Marine insurance' is thus the term used to described the insurance taken out to cover the risks involved in all forms of transportation, for example, sea, road, rail and air, from the point where the goods are loaded onto their first form of transport until they arrive at their final destination. Why bother with marine insurance? As there are many risks involved in the transportation cargo internationally, traders want to minimise these risks. A loss of goods to a buyer (or seller - depending who has contractual ownership of the goods at the time of the damage/loss) could mean:

Loss of business Loss of money Loss of goodwill Delays in utilisation of the goods Expensive repairs Penalties for late delivery

Any of these factors could put a small firm out of business and can even cause larger firms serious financial difficulties. The sensible trader will make certain that he or she has taken out suitable insurance cover, covering the correct value and risks thereby ensuring that all aspects of marine insurance have been suitably addressed. It is a contract of indemnity The marine insurance contract is a contract of indemnity. The insurer (the marine insurance company), undertakes to indemnify the assured

(the policy holder) against financial loss or expenses incurred resulting from any of the risks and hazards which are defined in the policy document. The insurer will define his liability in such a manner that he does not become responsible for loss or damage resulting from any misconduct of the assured. The assured must therefore take reasonable steps to protect the goods/cargo from any potential hazards by ensuring that the cargo/goods are packed, labelled and stored correctly. The insurer will also limit his liability by excluding losses which arise inevitably from the nature of the goods, such as evaporation or natural deterioration. The insurer therefore indemnifies the assured against fortuitous loss (dropping, crushing, breaking, rusting etc of the goods themselves), accidents and disasters, together with the loss of damage which may arise from causes over which the assured can exercise no control, such as war, riots, strikes and civil commotions. Categories of risk to cover There are several different categories of risk thatr you can consider cvovering. These are 1. Catastrophe risk - These relate to events which can occur to the carrying ship, aircraft or other conveyance in which the goods are loaded, or to the location in which the goods are temporarily housed in the normal course of transportation. These are: Sinking, stranding, collision, or catching fire of the carrying ship Overturning or collision of a carrying

vehicle Fire or flooding of a transit warehouse 2. Accidental or fortuitous risks - These are risks which are more commonly the cause of claims and relate to events which affect the goods themselves rather than the conveyance in which they move. These are the risks which account for the greater part of the premium rate. These are: Dropping Crushing Impacting Twisting and bending Breaking Burning Rusting Contamination Scuffing, scratching, bruising, denting etc. 3. Other risks - There are risks which are not accidental or fortuitous but are outside of the control of the cargo owner and include: Theft and pilferage Non-delivery Losses due to piracy Malicious damage 4. War and associated risks - These include war, strikes, civil commotion and terrorism and we discuss them separately. Click here. Certain types of goods are especially prone to damage from these risks and they may in respect of such goods, involve a substantial portion of the premium rate. All these categories of risk are taken into account when the insurer is calculating the rate for the premium. The insurance company would be prepared to offer a reduction on the premium amount if the company

in question is moving large volumes of cargo globally. Under these circumstances the insurance company would offer a discount for greater volumes moved. Factors to consider in taking out marine cover In taking out marine insurance, there are several factors that the assured must take into consideration. These include:

The principle of 'utmost good faith' The categories of risk to be insured The principles of insurable interest and insurable value Insuring against the risks of war, strikes, riots and civil commotion The duration of an insurance policy The principle of general average Types of marine insurance cover The premium

There are three main contracts these are:

The contract of sale; between the seller and the buyer The contract of carriage; between the carrier and the shipper The contract of marine insurance: between the insurer and the assured

While each of the contracts are independent of each other they cannot be detached because they complement each other and look after the interests of both the seller and the buyer. When concluding these contracts the following aspects must be given attention, these are:

The nature of the journey The means of conveyance that will carry the goods to their final destination The goods/cargo being sold

Marine insurance policies attach to the goods from the moment they are loaded into a form of conveyance (truck, container (6 or 12 metre), aircraft, rail truck or vessel), until they arrive at their final destination. This type of marine policy is commonly called .

ELEMENT OF EXPORT INVOICE: Exporter Consignee Invoice No. and Date Exporter Ref. Buyer order no and date Other reference Buyer (other than consignee) Country of origin of goods Country of final destination Terms of delivery and Payment Pre-carriage by Place of receipt by pre-carrier Vessel/ Flight no. Port of loading Port of discharge Final Destination Marks and Nos. / No & Kind of pkgs. Item code

 Description of goods Net weight Gross weight Quantity Rate CIF EURO Amount CIF EURO Amount in words Declaration: Authorised signature

Air freight calculation Introduction Airlines that are members of the International Air Transport Association (IATA) are bound by their membership to comply with tariffs issued by IATA. However since 11th September 2002, airfreight rates are now extremely negotiable. Airfreight rates cover transportation from the airport of loading to the airport of discharge. These rates do not include the following:

Collection of air cargo from the consignor's/exporters premises Delivery of cargo from the airport of destination to the consignee's premises Storage of cargo before or after loading Customs clearance in the country of destination Any duties and taxes that may have to be paid Insurance

Chargeable/volumetric weight Airline freight rates are based on a "chargeable weight", because the volume or weight that can be loaded into an aircraft is limited. The chargeable weight of a shipment will be either the "actual gross mass" or the "volumetric weight", whichever is the highest. The chargeable weight is calculated as follows: 1 metric ton = 6 cubic metres. In order to establish if the cargo will be a weight or volumetric based shipment.

Step 1
Measure the parcel/cargo along the greatest length, width and height of that parcel. For example; 100 cm (L) X 100 cm (W) X 100 cm (H) = 1 000 000 cm3. Next, weigh the parcel; assume it weighs 150kg.

Step 2
Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You have now converted the centimeters (cm) into kilograms (kg)

Step 3
Now compare the weight to the volume. If the weight is 150 kg then the airline would base the freight on the higher amount being: 166,66 kg Air freight calculations The airline calculates freight based on weight or volume, which ever yields the greatest amount. Airlines quote freight rates based on the following rate structures:

A basic minimum charge per shipment. General cargo rates quoted for per kilogram. This rate applies without reference to the nature or description of the parcel, which is to be freighted. Specific commodity rates apply to certain goods of specific descriptions, such as fresh produce. These rates are lower than the general cargo rate, and they provide breakpoints at which the level of the rate reduces further.

Example:
0 - 50 Kg @ R22.00/per kg 50 - 100 Kg @ R19.00 per kg 100 - 150 Kg @ R17.00 per kg Unit Load Device charges These rates are charged per container/ULD without reference to the commodity loaded therein. Calculation of freight rates: Let us assume the following figures: The freight rate is R18.00 per kg The weight of the parcel is 300 kg

The dimensions are: 114,6 cm X 120,4cm X 132,5 cm (round the cm's up or down)

Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6 000 = 305.9 kg (having converted cm's to kg's now round up the kg's to the next half a kilogram = 306 kg. As the freight rate quoted by the airline is R18.00 per kg, we calculate the price as follows: 306 kg X R18/kg = R5 508.00 The freight rate will not be calculated on the actual mass 300 kg X R18.00 = R5 400.00 as the airline will always use the greater amount either the kg, or volumetric weight. Consolidation Consolidation is an economical method of moving cargo by employing a consolidator. The consolidator receives cargo from a number of suppliers/shippers and then combines these cargoes into one consignment by packing the goods into a Unit Load Device. The consolidator then books the Unit Load Device with an airline. The supplier/shipper would have a contract of carriage with the consolidator of the cargo and in turn the airline would have a contract of carriage with the consolidator. The airline would issue an air waybill to the consolidator when accepting the Unit Load Device and in turn the consolidator would issue the supplier/shipper with a house air waybill. The air waybill The air waybill, unlike the ocean bill of lading is not a document of title to the goods described therein, however it does perform several similar functions these are:

It is a receipt for the goods It is evidence of the contract of carriage between the exporter and the carrier

It incorporates full details of the consignor/shipper, the consignee/receiver and the consignment/goods It is an invoice showing the full freight amount It must be produced, be it in an electronic format, at the airport of discharge for clearing purposes

All copies of the air waybill, together with the commercial invoice, packing list, certificate of origin and any other document which may be necessary for clearing the goods through customs, these documents are carried in the flight captain's bag.

Sea freight calculations Introduction Seafreight calculations can broadly be divided into two main components; breakbulk and containerised. In this section we deal with how you should calculate the freight costs of both of these two types of seafreight. Break bulk cargo calculations Break bulk cargo, is cargo that is unitised, palletised or strapped. This cargo is measured along the greatest length, width and height of the entire shipment. The cargo is also weighed. Shipping lines quote break bulk cargo per "freight ton", which is either 1 metric ton or 1 cubic metre, which ever yields the greatest revenue. Example: A case has a gross mass of 2 Mt. The dimensions of the cargo are: 2.5 X 1 X 2 metres The tariff rate quoted by the shipping line is: USD 110.00 weight or measure (freight ton)

Step 1

Multiply the metres 2.5 X 1 X 2 = 5 metres Compare to the mass = 2 Mt.

Step 2
Calculate the freight with the greater amount either the mass or the dimension. 5 X USD 110.00 = USD 550.00 Freight would be paid on the measurement and not the weight. All shipping lines carrying cargo in a break-bulk form insist on payment based on a minimum freight charge which is equivalent to one freight ton, one cubic metre or one metric ton.

Full Container load calculations and surcharges Freight rates for containers are based on the container as a unit of freight irrespective of the commodity or commodities loaded therein, (FAK) Freight All Kinds. The shipping lines quote per box (container) either a six or twelve metre container. From time to time, abnormal or exceptional costs arise in respect of which no provision has been made in the tariffs. For example a shipping line cannot predict the movement of the US Dollar or the sudden increase of the international oil price. These increases have to be taken into account by the shipping line in order to ensure that the shipping line continues to operate at a profit. These increases are called surcharges. All shipping lines accordingly retain the right to impose an adjustment factor upon their rates taking into account these fluctuations. All surcharges are expressed as a percentage of the basic freight rate. Surcharges are regularly reviewed in the light of unforeseen circumstances, which may arise and bring cause for a surcharge increase. Bunker Adjustment Factor (BAF)

"Bunkers" is the generic name given to fuels and lubricants that provide energy to power ships. The cost of bunker oil fluctuates continually and with comparatively little warning. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + BAF 5.2% US Dollar 1 250.00 X 5.2% = US Dollar 65.00 Add the two amounts together Freight rate: U S Dollar 1 315.00 Currency Adjustment Factor (CAF) The currency adjustment factor is a mechanism for taking into account fluctuations in exchange rates, these fluctuations occur when expenses are paid in one currency and monies earned in another by a shipping company. The currency adjustment factor is a mechanism for taking into account these exchange rate fluctuations. It is always expressed as a percentage of the basic freight and is subject to regular review. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + CAF 6.3% US Dollar 1 250.00 X 6.3% = US Dollar 78.75 Add the two amounts together Freight rate: U S Dollar 1 328.75 War Surcharge The outbreak of hostilities between nations can have a serious effect upon carriers servicing international trade even though they may sail under a neutral flag. Carriers sailing within the vicinity of a war zone may impose a war surcharge on freight to compensate for the higher risks involved and the higher levels of insurance premium, which they may be obliged to pay.

Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + WAR 5% US Dollar 1 250.00 X 5% = US Dollar 62.50 Add the two amounts together Freight rate: U S Dollar 1 35.50 All of the above surcharges may be applied to a single freight rate. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + BAF 5.2% + CAF 6.3% + WAR 5% Total amount of surcharge 16.5% US Dollar 1 250.00 X 16.5% = US Dollar 206.25 (add to freight rate) US Dollar 1 456.25 Port Congestion Surcharge Congestion in a port for a period of time can involve considerable idle time for vessels serving that port. When a ship lies idle, this creates a huge amount of loss for the ship's owner. Shipping lines therefore have the right to impose a surcharge on the freight to recover revenue lost. Another factor which influences port congestion surcharge would be labour disputes. Port congestion surcharges are calculated as a percentage of the freight rate as expressed in the previous examples. Consolidation services The consolidator or groupage operator hires a container from a shipping line and then sells that space to his clients/exporters. The benefit for the exporter is that small quantities which, would not fill a full container load, can be shipped by sea freight in a shipping container as an alternative to air freighting the goods. The consolidator would charge per metric ton or cubic metre, which ever

yields the greatest. Example: US Dollar 89.00 Weight or Measure. The shipping line would have a contract of carriage with the consolidator and in turn the consolidator would have a contract of carriage with the exporter. The consolidator would be issued with an combined through bill of lading from the shipping line and then present the exporter with a house bill of lading (See bill of lading below) The bill of lading The bill of lading performs the following functions:

A contract of carriage between the shipper of the cargo and the carrying shipping company. The name of the shipper and the receiver of the goods the consignee. The contents of the packages as declared by the shipper. Shipping details such as: port of loading and the port of discharge. The bill of lading is a freight invoice and indicates if the freight costs have been prepaid by the exporter or will be paid by the importer, "freight collect". The bill of lading states the number of packages, weight and dimension of the shipment. It is a document of title to the goods stated thereon.

Every original bill of lading signed by or on behalf of the shipping company is a document of title to the underlying goods. This special function of a bill of lading is achieved by a form of words which state: "In witness whereof the undersigned on behalf of the shipping company has signed three bills of lading all of this tenor and date, one of which being accomplished the others to stand void". "Accomplishing" the bill of lading requires the surrender to the shipping line or its agents in the port or place of destination one of the signed original bills of lading duly endorsed by the consignee/importer. Unless and until one of the original bills of lading as described above is surrendered, the shipping line will not release the cargo to the consignee/importer. Upon surrender of any one of the originals the other originals bills of lading become void.

Endorsed Bills of Lading Bills of lading can only be issued with the words "shipped on board", if the cargo has actually been loaded onto the named vessel at the port of loading. By insisting that the exporter supplies the importer with a "shipped on board" bill of lading, the importer obtains conclusive evidence that the goods have been loaded on board the intended vessel. Some importers insist that the exporter presents "shipped on board" bills as a condition for payment. "Received for shipment", bills of lading can be issued as soon as the goods have been delivered into the custody of the carrying shipping company or its agent either at the point of receipt or at the port of loading. Thus, a 'received for shipment", bill of lading will only indicate the ship in which the cargo is intended to be loaded on. The risk remains that the loading may, for many reasons delayed or the cargo may not be loaded at all. Banks responsible for the payment of funds in payment for goods under letters of credit will not release the funds if the bill of lading has been endorsed "received for shipment".

BIBLIOGRAPHY
Export Import Documentation Logistics in International Business - Prof. D.C. pai - Prof. Rajeev Aserkar

REFERENCES INTERNET
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