Viazag

Sea Import Procedure and Documentation
List of Contents
1.
Introduction
1.1 1.2
Page no
3 4
Executive Summary Purpose of the Study
2. Profile of the company

2.1 2.2 2.3 2.4
Vision &Objective Sale Structure and Activities Future Prospects of SAIL Share Department of SAIL
5 6 8 11
3. Research Methodology
3.1 3.2 3.3 3.4 3.5 3.6
Objective of the study Research Design Sources of Data Shipping Terms of Shipment Sea Import Procedure
a) Block Diagram b) Purchase Order c) Material Ready at Load Port d) Documents of Generated e) Copy Documents f)
12 13 13 15 15 24 25 27 28 29 40 51
Original Documents
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g) Arrival information of Vessel h) Vessel Declaration IGM-Customs by shipping agent i) Custom Clearance j) Freight Bill and Other Charges Bill k) Payment of Bills l) Delivery Order 1.1
52 55 56 67 67 68 70 73 75 78 80
Port Operation
a) Sales Tax Clearance b) Port Rent c) Physical Appraisement d) Delivery To Plant
1.
Conclusions and Recommendations Bibliography
81 88
2.
Executive Summary
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The project was done in Steel Authority of India Ltd (SAIL) Branch Transport and Shipping Office (BTSO), VISHAKAPATNAM. Its a Public Sector Undertaking (P.S.U) known for its commitment to carry out the import of coal used in the manufacturing of steel and export of steel to different parts of the world. The project is about the study of organization including their sea import procedure, shipping and port operation and documentation required in these operations. This project is part of the fulfillment of internship programme in Steel Authority of India Ltd. The entire management of Sea Import procedure related to Shipping and Port operations is done which includes preparing documents for different modes of imports, to analyze the documents, prepare and send them to their destination and maintaining the records of different task performed during the import of Coal at the port, from preparing documents to the delivery of imported item. The documents include Letter of credit, Different kinds of invoices, Certificate of origin, Bill of lading, Bill of entry etc. and the different operations at port includes Landing Operation, Transit Shed Operation, Dispatches of Containers, etc. and mode of delivery. The project is about the import of Coal used in manufacturing of Steel from different countries by the Indian Government on behalf of the Steel Authority of India Ltd (SAIL), different operations at ports is taken under consideration including the documentation required by different authorities. Study of different stakeholders involved at the port sector is also studied in the project.
Purpose of the Study
Usually people are unaware of information related to the Public Sector Undertaking such as Steel Authority of India Ltd. It is one of the Public Sector Undertaking companies
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which carry out import of coal used in manufacturing of steel and export of steel and most of the people do not know how this import and export procedure is carried out. So the basic purpose of my project is to study the procedure followed by Steel Authority of India Ltd in order to import the spare parts used in manufacturing of steel through SEA IMPORT and its Shipping & Port Operation.
Steel Authority of India ltd
Vision
To be a respected World Class Corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.
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Objectives
To build lasting relationships with customers based on trust and mutual benefit. To uphold highest ethical standards in conduct of our business. To create and nurture a culture that supports flexibility, learning and is proactive to change.
To chart a challenging career for employees with opportunities for advancement and rewards. To value the opportunity and responsibility to make a meaningful difference in people's lives.
SAIL Structure and Activities

Steel Authority of India Ltd (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structurals, railway
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products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the company's iron ore, limestone and dolomite mines. The company has the distinction of being Indias second largest producer of iron ore and of having the countrys second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making. SAIL's wide range of long and flat steel products is much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organization (CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact Offices. CMOs domestic marketing effort is supplemented by its ever widening network of rural dealers who meet the demands of the smallest customers in the remotest corners of the country. With the total number of dealers over 2000, SAIL's wide marketing spread ensures availability of quality steel in virtually all the districts of the country. SAIL's International Trade Division (ITD), in New Delhi- an ISO 9001:2008 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated steel plants. With technical and managerial expertise and know-how in steel making gained over four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide. SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organization at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL
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operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.
Future Prospects of SAIL

Modernization & Expansion SAIL, is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. The objective is to achieve a production capacity of 26.2 MTPA of Hot Metal from the base level production of 14.6 MTPA (2006-07 Actual).
Orders for all major packages of ISP & SSP and part packages of BSL, BSP, and RSP & DSP Expansion have been placed and these packages are in various stages of implementation
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Objective of Expansion Plan 100% production of steel through Basic Oxygen Furnace (BOF) route 100% processing of steel through continuous casting Value addition by reduction of semi-finished steel Auxiliary fuel injection system in all the Blast Furnaces State-of-art process control computerization / automation State-of-art online testing and quality control Energy saving schemes Secondary refining Adherence to environment norms
Production Target The production target of hot metal, crude steel and saleable steel after Expansion is indicated below:
Item
Base Case ( 2006-07) Actual

(million tonne per
After Expansion 2012-13

(million tonne per annum)
annum)
Hot Metal Crude Steel Saleable Steel
14.6 13.5 12.6
26.2 (23.5) 24.6 (21.4) 23.1 (20.2)
Figures below indicate capacity after implementation of ongoing phase of modernization and expansion to be completed by 2012-2013
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Construction activity at ISP
Capital Expenditure Amount spent on Expansion Plan and other Capital Schemes of SAIL (incl. subsidiary) during last 3 years are as follows: Total Year (Rs./Cror e) 200708 200809 200910 2181 5233 10606
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Share Department of SAIL

Steel Authority of India Ltd provides services to its shareholders through its Registrar and Transfer Agent, M/s MCS Limited, located at F-65 Okhla Industrial Area, Phase I, New Delhi 110020 (Tele- 011-41406149 , 51,52, Fax No:- 011-41709881, E mail: mcsdel@vsnl.com. ) to carry out all share transfer and other related activities on our behalf. Some of the important services provided to shareholders are: Transfer of Shares Transmission of Shares Transposition of Shares Conversion of Single holdings into joint holdings & Vice Versa Appointment of nominees Registration of Powers of Attorneys Changing name Updating change in addresses of shareholders Issue of replacement/split/consolidation of shares certificates Payment of dividend, revalidation and issue of duplicate warrants
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Objective of the Study
The objectives are:
To understand the procedures followed in the Sea Import. To study the Port Operations. To understand the different terminologies used in the shipping & port operation to facilitate study of the course.
To study the documentation required in shipping and port operation.
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Research Design
The Research Design for my project is Exploratory as well as descriptive. Study was conducted on both the primary data as well as secondary data. But main focus was on primary data.
Sources of Data
Collection of data: Primary sources: Handouts given by the company guide
Secondary sources: Internet sources Magazines Books
The procedure for conducting the study requires a lot of attention be paid for; it has direct Bearing on securing reliable and meaningful information. It is because of this reason that the Research Methodology adopted for the study needs to be elaborated upon. At the same time research methodology helps the researcher to give his/her reasons for adopting a certain course of action, while ruling out the others. With this idea in mind, the methodology has been separately mentioned in this study.
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This study is micro in nature. Basically information and data for this project has been collected from primary sources i.e. from various departments of organization. For collection of information needed for the project work, method of personal meetings was used and but formal questionnaire was not made. Meetings were held in person with functionaries of SAIL at various levels in order to know type of information they need to take decision, its availability with regard to time, accuracy, cost, reliability, utility and system of collection of information both from internal and external sources.
Interaction with functionaries at various levels was made to obtain information from their unpublished records. Various formats used in preparation of reports were collected from different departments and significance of each term used in each format was understood.
Many problems like non-availability of information , biased information, concealment of facts And problems etc. arising due to cross-checking, were confronted during collection of facts and Figures due to time constraint, the study has been restricted to the documentation section of SAIL.
Shipping
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Shipping has multiple meanings. It can be a physical process of transporting goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship. Land or "ground" shipping can be by train or by truck. In Air and Sea shipments, ground transportation is often still required to take the product from its origin to the airport or seaport and then to its destination. Ground transportation is typically more affordable than air shipments, but more expensive than shipping by sea. Shipment of freight by trucks, directly from the shipper to the destination, is known as a door to door shipment. Vans and trucks make deliveries to sea ports and air ports where freight is moved in bulk. Much shipping is done aboard actual ships. An individual nation's fleet and the people that crew it are referred to its merchant navy or merchant marine. Merchant shipping is essential to the world economy, carrying the bulk of international trade. The term shipping in this context originated from the shipping trade of wind power ships, and has come to refer to the delivery of cargo and parcels of any size above the common mail of letters and postcards.
Terms of Shipments
INCOTERMS
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Inco terms or international commercial terms are a series of international sales terms, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods. The first version was introduced in 1936 and the present dates from 2000. The purpose of incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. Frequently, parties to a contract are unaware of the different trading practices in their respective countries. This can give rise to misunderstanding, disputes and litigations, with all the waste of time and money that this entails. In order to remedy these problems, the international Chamber of Commerce first published in 1936 a set of international rules for the interpretation of trade terms. These rules were known as Incoterms 1936. Amendments and addition were later made in 1953, 1967, 1976, 1980, and 1990 and presently in 2000 in order to bring the rules in line with current international trade practices. It should be stressed that the scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold (in the sense of tangibles. not including intangibles such as computer software. It appears that two particular misconceptions about Inco terms are very easy common. First, Inco-terms are frequently misunderstood as applying to the contract of carriage rather than to the contract of sale. Second, they are sometimes wrongly assumed to provide for all the duties which parties may wish to include in a contract of sale.
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As has always been underlined by ICC, Inco terms deal only with the relation between sellers and buyers under the contract of sale, and moreover, only do so in some very distinct respects
While it is essential for exporters and importers to consider the very practical relationship between the various contracts needed to perform an international sales transaction- where not only the contract of sale is required, but also contracts of carriage, insurance and financing- Inco terms relate to only one of these contracts, namely the contract of sale.
Nevertheless, the parties agreement to use a particular Inco term would necessarily have implications for the other contracts. To mention a few examples, a seller having agreed to a CFR- or CIF-contract cannot perform such a contract by any other mode of transport than carriage by sea, since under these terms he must present a bill of lading or other maritime documents to the buyer which is simply not possible if other modes of transport are used. Furthermore, the documents required under a documentary credit would necessarily depend upon the means of transport intended to be used. Second, Inco terms deal with a number of identified obligations imposed on the partiessuch as the sellers obligation to place the goods at the disposal of the buyer or hand them over for carriage or deliver them at the destination-and with the distribution of risk between parties in these cases.
MORE CLARIFICATION ON INCOTERMS EXW {+the named place}
Ex Works: Ex means from. Works means factory, mill or warehouse, which are the sellers premises. EXW applies to goods available only at the sellers premises. Buyer is responsible for loading the goods on truck or container at the sellers premises and for the subsequent costs and risks. In practice, it is not uncommon that the seller loads the goods on truck or container at the sellers pre4mises without charging loading fee. N the
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quotation, indicate the named place (sellers premises) after the acronym EXW for example EXW Kobe and EXW San Antonio. The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works. FCA {+the named point of departure} Free Carrier: The delivery of goods on truck, rail car or container at the specified point(depot) of departure, which is usually the sellers premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at sellers expense. The point(depot) at origin may or may not be a customs clearance centre. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. In the air shipment, technically speaking, goods placed in the custody of an air carrier are considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment. The term FCA is also used in the RO/RO (roll on/roll off) services In the export quotation, indicate the point of departure (loading) after the acronym FCA, for example FCA Hong Kong and FCA Seattle. Some manufacturers may use the former terms FOT (Free on Trucks) and FOR (Free on Rail) in selling to export-traders. FAS {+the named port of origin} Free Alongside Ship: Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at sellers expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks In the export quotation, indicate the port of origin(loading)after the acronym FAS, for example FAS New York and FAS Bremen. The FAS term is popular in the break-bulk shipments and with the importing countries using their own vessels. FOB {+the named port of origin)
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Free on Board: The delivery of goods on the board the vessel at the named port of origin (Loading) at sellers expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. In the export quotation, indicate the port of origin (loading) after the acronym FOB, for example FOB Vancouver and FOB Shanghai. Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freight only. However, in practice, many importers and exporters still use the term FOB in the air freight. In North America, the term FOB has other applications. Many buyers and sellers in Canada and the USA dealing on the open account and consignment basis are accustomed to using the shipping terms FOB Origin and FOB destination. FOB Origin means the buyer is responsible for the freight and other costs and risks. FOB Destination means the seller is responsible for the freight and other costs and risks until the goods are delivered to the buyers premises which may include the import custom clearance and payment of import customs duties and taxes at the buyers country, depending on the agreement between the buyer and seller. In international trade, avoid using the shipping terms FOB Origin and FOB Destination, which are not part of the INCOTERMS (International Commercial Terms). CFR {+the named port of destination} Cost and Freight: The delivery of goods to the named port of destination (discharge) at the sellers expenses. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR was formerly written as C&F. Many importers and exporters worldwide still use the term C&F. In the export quotation, indicate the port of destination (discharge) after the acronym CFR, for example CFR Karachi and CFR Alexandria. Under the rules of the INCOTERMS 1990, the term Cost and Freight is used for ocean freight only. However, in practice, the term Cost and Freight (C&F) is still commonly used in the air freight. CIF {+named port of destination} Cost, Insurance and Freight: The cargo insurance and delivery of goods to the named port of destination (discharge) at the sellers expense. Buyer is responsible for the import customs clearance and other costs and risks.
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In the export quotation, indicate the port of destination (discharge) after the acronym CIF, for example CIF Pusan and CIF Singapore. Under the rules of the INCOTERMS 1990, the term CIFI is used for ocean freight only. However, in practice, many importers and exporters still use the term CIF in the air freight. CPT {+the named place of destination} Carriage Paid To: The delivery of goods to the named port of destination (discharge) at the sellers expenses. Buyer assumes the cargo insurance, import custom clearance, payment of custom duties and taxes, and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.
CIP {+ the named place of destination) Carriage and Insurance Paid To: The delivery of goods and the cargo insurance to the named place of destination (discharge) at sellers expense. Buyer assumes the importer customs clearance, payment of customs duties and taxes, and other costs and risks. In the export quotation, indicate the place of destination (discharge) after the acronym CIP, for example CIP Paris and CIP Athens. DAF {+ the names point at frontier} Delivered At Frontier: The delivery of goods to the specified point at the frontier at sellers expense. Buyer is responsible for the import custom clearance, payment of custom duties and taxes, and other costs and risks. In the export quotation, indicate the point at frontier (discharge) after the acronym DAF, for example DAF Buffalo and DAF Welland. DES {+named port of destination} Delivered Ex Ship: The delivery of goods on board the vessel at the named port of destination (discharge) at sellers expense. Buyer assumes the unloading free, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks.
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In the export quotation, indicate the Port of destination (discharge) after the acronym DES, for example DES Helsinki and DES Stockholm. DEQ {+ the named port of destination Delivered Ex Quay: The delivery of goods to the Quay (the port) at the destination at buyers expense. Seller is responsible for the importer customs clearance, payment of customs duties and taxes, at the buyers end. Buyer assumes the cargo insurance and other costs and risks. In the export quotation, indicate the Port of destination (discharge) after the acronym DEQ, for example DEQ Libreville and DEQ Maputo. DDU {+ the named point of destination} Delivered Duty Unpaid: The delivery of goods and the cargo insurance to the final point at destination, which is often the project site or buyers premises at sellers expense. Buyer assumes the import customs clearance, payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks. In the export quotation, indicate the point of destination (discharge) after the acronym DDU for example DDU La Paz and DDU Ndjamena. DDP {+ the named point of destination) Delivered Duty Paid: The seller is responsible for most of the expenses which include the cargo insurance, import custom clearance, and payment of custom duties, and taxes at the buyers end, and the delivery of goods to the final point of destination, which is often the project site or buyers premise. The seller may opt not to insure the goods at his/her own risk. In the export quotation, indicate the point of destination (discharge) after the acronym DDP, for example DDP Bujumbura and DDP Mbabane. E-term,F-term, C-term &D-term: Incoterms 2000, like its immediate predecessor, groups the term in four categories denoted by the first letter in the threeletter abbreviation.
Under the E-TERM (EXW), the seller only makes the goods available to the buyer at the sellers own premises. It is the only one of that category.
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Under the F-TERM (FCA, FAS, &FOB), the seller is called upon to deliver the goods to a carrier appointed by the buyer.
Under the C-TERM (CFR, CIF, CPT, & CIP), the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional cost due to events occurring after shipment or discharge.
Under the D-TERM (DAF, DEQ, DES, DDU & DDP), the seller has to bear all costs and risks needed to bring the goods to the place of destination.
All terms list the sellers and buyers obligations. The respective obligations of both parties have been grouped under up to 10 headings where each heading on the sellers side mirrors the equivalent position of the buyer. Examples are Delivery, Transfer of risks, and Division of costs. This layout helps the user to compare the parties respective obligations under each Incoterms.
Sea Import Procedure

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Purchase Order
Material Ready at Ship
Documents Generated by Supplier
COPY DOCUMENTS SAIL BTSO VIZAG

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Original Documents
Submitted to Bank by concerned plant for releasing payment to the supplier
Manufacturing Plant
Vessel Declaration IGMDock of File Customs by shipping agent
Arrival Information of Vessel

Delivery to Plant MaterialCharges deliver Port ready to
Original Documents
Physical Appraisement
Freight Bill and Other Charges Bill
Custom Process
VBill of Entry
Payment of Bills Delivery Order Sales Tax Clearance
Duty Payments
Sea Import Procedure

Purchase Order Material Ready at load Port Documents Generated by the Supplier Copy Documents &Original Documents Arrival Information of Vessel Vessel Declaration IGM Custom by shipping agent Custom Clearance
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Freight Bill and Other Charges Bill Payment of Bills Delivery Order Sales Tax Clearance Port Charges Delivery to plant
Purchase Order
A Purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a one-off contract between the buyer and seller, so no contract exists until the PO is accepted. There are several reasons why companies use Purchase Order (Po). POs allow buyers to clearly and explicitly communicate their intentions to sellers, and sellers are protected in case of a buyer's refusal to pay for goods or services. For example, Alex works for company A and orders parts from company B. The seller assumes that Alex's boss consents. If Alex is not entitled to this order - perhaps due to a miscommunication with their boss - the order can be canceled by either party. Depending on the type of product that is delivered and at what stage the PO is canceled, Company B may be entitled to production (labor, raw materials, etc.) and shipping and handling costs
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Material Ready at Load Port

After getting the Purchase Order from the buyer. The Supplier collects all the material required by the buyer after that all the material is put at one place from where the material is taken to the port for delivery.
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Documents to be generated
Bill of Lading Invoice Packing List Insurance Premium Bill Certificate of Origin
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Test Certificate Bill Of Lading

Bill of Lading (B/L) is a document issued by the shipping company or its agent acknowledging the receipt of goods on board the vessel, and undertaking to deliver the goods in the like order and condition as received, to the consignee or his order , provided the freight & other charges as mentioned have been duly paid. It is also a document of title to the goods & as such is freely transferable by endorsement & delivery. B/L serves three main purposes: As a document of title to the goods As a receipt from the shipping company As a contract for the transportation of the goods.
Types of Bill of Lading Clean B/L B/L acknowledging receipt of goods
apparently in good order & condition & without any qualification is a clean B/L. Such B/L does not contain any negative remark about condition of goods. Claused B/L B/L with a remark such as goods
insufficiently packed is known as claused
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B/L.
Transshipment or through B/L
For multimode transportation, or when another shipping companys vessel is used, this B/L is issued.
Stale B/L
A B/L held too long (normally more than 21 days)), before negotiations, is termed stale B/L.
Freight paid B/L
B/L issued when freight is paid at the time of shipment is a freight paid B/L
Freight collect B/L
B/L issued when freight is not paid at the time of shipment& is to be collected from consignee is a freight collect B/L
Contents of the Bill Of Lading Name & logo of the Shipping Line Name & address of the shipper Name & number of vessel Name of the port of lading, port of discharge & place of delivery Marks & container number, container seal number Packing & container description
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Total number of packages & containers Description of goods, gross weight, volume Freight Collect/Prepared Bill of lading number & date Signature & initials of the Chief Officer
Invoice
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay these goods and are sometimes offered a discount if paid before Proforma Invoice. The starting point of the export contract is in the form of offer made by the exporter to the foreign customer.
The offer made by the customer is in the form of the Proforma Invoice. 29 | P a g e
It is a quotation given as a reply to an enquiry. It normally forms the basis of all trade transactions & enables importer to obtain import license, if required.
Contents of Proforma Invoice are generally the following: Name & addresses of exporter & importer Mode of transportation, port of discharge, final destination
Buyers & sellers reference numbers / dates
Description of the goods, mode of packing, total number of packages, expected total weight etc. Origin of goods Price offer on FOB & CIF Basis Basic terms & conditions of sale. Commercial Invoice Commercial invoice is the basic export document & contains all information required for making other documents. It is prepared by the exporter after the execution of the export order giving details about the goods shipped It should be addressed to the consignee as per the letter of credit. It is the basic evidence of the contract of sale or purchase & therefore must be prepared strictly in accordance to the terms 7 conditions mutually agreed between the buyer & seller.
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It should contain basic details as in the proforma invoice, the detailed description of goods, as well as the final packing lists and the markings on packages plus details of shipment of goods, name & number of vessel/ voyage.
This document is used for various export formalities, incentive claims, negotiation of documents, accounting etc.
Consular Invoice Consular Invoice is a document required mainly by the African & certain other countries like Kenya, Uganda, Tanzania, Mauritius, Australia, New Zealand Nigeria, Ghana etc. The exporter is required to submit 3 copies of the Commercial invoice & related documents for certification to the respective Embassy & one copy is returned to him after certification. Balance copies are sent by the Embassy to the customs department of the importing country for verification upon arrival of goods & calculation of the import duty payable.
The consular certified copy is negotiated by the exporter along with other documents.
Customs Invoice Countries like USA, Canada etc need customs invoice It is generally made out on a special form presented by the customs authorities of the importing country & helps for allowing entry of goods in the importing country at preferential tariff rates.
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The invoice forms are generally available at the consular office of the importing country and are required to be signed and witnessed after duly filling the same.
Packing List
The exporter prepares the packing list to facilitate the buyer to check the shipment. It contains the detailed description of the goods, packed in each case, their gross & net weights etc. The packing list also contains all basic information about the export order like name & address of the buyer & the exporter, purchase order number & date etc.
The packing order is the basic document used in the preparation of further documents like proforma invoice & so on.
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Insurance Premium Bill

Export and import in international trade, requires transportation of goods over a long distance. No matter whichever transport has been used in international trade, necessary insurance is must for every single good. Cargo insurance also known as marine cargo insurance is a type of insurance against physical damage or loss of goods during transportation. Cargo insurance is effective in all the three cases whether the goods have been transported via sea, land or air. Insurance policy is not applicable if the goods have been found to be packaged or transported by any wrong means or methods. So, it is advisable to use a broker for placing cargo risks.
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Certificate of Origin
The importers in several countries require a Certificate of Origin without which clearances to import is refused.
The certificate of origin states that the goods exported are originally manufactured in the country whose name is mentioned in the certificate.
Certificates of origin are required when:

Goods produced in a particular country are subject to preferential tariff
rates in the foreign market at the time of importation. The goods produced in a particular country are banned for import in the foreign market.
Types of Certificate of Origin
Certificate of Origin for Availing Concessions under GSP:
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Required by countries like France, Germany, Italy, Benelux countries,UK, Australia, agencies like: Export inspection agencies Joint DGFT, Commodity Boards & their regional offices Development Commissioner, Handicrafts Textile Committee for textiles Marine product export development authority for marine products Development Commissioner for EPZs
Japan, USA
etc., which extend GSP benefits & are issued by specialized
Non-preferential Certificate Of Origin:

These are normally required for clearance of goods by all
importers & are issued by the Chamber of Commerce of the exporting countries or by Trade Association of the importing country. Certificate For availing concessions Under Commonwealth Preferences: This is also known as Combined Certificate Of origin & value & is required by two commonwealth countries, Canada & New Zealand for concessions under Commonwealth preferences. These have to be obtained from the High commission of the country concerned.
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Test Certificate
Test Certificates are special documents that issued only if a component has been successfully tested in accordance with the relevant internationally accepted standard.
For buying utilities or industries Test Certificates are important documents to ensure proper operation and technical excellence of the component purchased from the vendor.
Test Certificate is issued only if a component has passed all the relevant tests and meets all technical requirements. With a Certificate you can be sure of buying a component of good quality.
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Copy Documents
Copy documents are submitted to
SAIL VIZAG Kolkata
Manufacturing Plant
SAIL VIZAG
Involved in Export of Steel and Other Items of Steel to Singapore and Taiwan
Involved in import coking coal from different countries in the world
Manufacturing Plant
Durgapur Steel Plant
Alloy steel Plant
Rourkela Steel Plant
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Raw Material Division
Durgapur Steel plant
Set up in the late 50's with an initial annual capacity of one million tonnes of crude steel per year, the capacity of Durgapur Steel Plant (DSP) was later expanded to 1.6 million tonnes in the 70's. A massive modernization programme was undertaken in the plant in early 90's, which, while bringing numerous technological developments in the plant, enhanced the capacity of the plant to 2.088 million tonnes of hot metal,1.8 million tonnes crude steel and 1.586 million tonnes saleable steel. The modernized DSP now has state-of the-art technology for quality steel making. The modernized units have brought about improved productivity, substantial improvement in energy conservation and better quality products. DSPs Steel Making complex and the entire mills zone, comprising its Blooming & Billet Mill, Merchant Mill, Skelp Mill, Section Mill and Wheel & Axle Plant, are covered under ISO: 9002 quality assurance certification.
With the successful commissioning of the modernized units, DSP is all set to produce 2.088 million tones of hot metal, 1.8 million tonnes of crude steel and 1.586 million tones of saleable steel annually.
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PRODUCT-MIX Merchant Products Structural Skelp Wheels & Axles Semis Total Saleable steel
TONNES/ANNUM 2,80,000 2,07,000 1,80,000 58,000 8,61,000 15,86,000
Location Situated at a distance of 158 km from Calcutta, its geographical location is defined as 230 27' North and 880 29' East. It is situated on the banks of the Damodar River. The Grand Trunk Road and the main Calcutta-Delhi railway line pass through Durgapur Environment control Durgapur Steel Plant has always made relentless efforts to maintaining a healthy and clean environment. The units in DSP are provided with necessary pollution control facilities and the liquid effluents and chimney emissions from the plant are well within norms. DSP has undertaken massive afforestation to maintain clean environment. Some 3,266 acres of land have been covered with 14 lakh plantations. In order to develop healthy awareness about the environment amongst the younger generation, eco-clubs have been formed in DSP schools
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Centre for Human Resource Development DSP has always attached maximum importance on proper training and development of its employees. Its Centre for Human Resource Development has all modern facilities including the state-of-the-art Electrical and Electronics laboratory, Hydraulics and Pneumatics laboratory and workshop for effective training and development of its employees Communication The Public Relations Department publishes monthly house journals in English, Bengali and Hindi for extensive information of company affairs to the employees. DSP also has an in-house TV studio (DSTV) along with all modern facilities, which telecast news and a gamut of other programs covering various aspects of plant and township activities.
Durgapur The Happening City Durgapur, which is on the main Kolkata New Delhi line, is fast turning into the most happening city in the region. From a sleepy settlement, the town today boasts of a variety of educational institutions, posh shopping malls, complexes with eateries and a multiplex, etc. With the change in the mindset of the people has come a change in the lifestyle also. Quality consciousness has steeped in, accompanied with quality brands making their presence felt in the market. Durgapur is fast turning into the central location for the entire region with the entry of big business houses and entrepreneurs, the city is all set to undergo a change in its own lifestyle and in the outlook of its residents
Alloy Steel
Plant
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The pioneer in the production of alloy and special steels. Alloy Steels Plant (ASP), Durgapur was commissioned with an initial capacity of 1, 00,000 tonnes of ingot steel and 60,000 tonnes of saleable steel. Through two phases of expansion and modernization, the capacity has been revised to 2.46 lakh tonnes of liquid steel and 1.78 lakh tonnes of saleable steel Recipient of ISO-9001 (2000) certification for the entire plant, ASP is equipped with state-of-the-art technology for producing world-class quality alloy and special steels. The plant has one slab-cum-twin bloom continuous casting machine, the only one of its kind in India. It is specially designed for casting special steels like Austenitic and Ferritic stainless steel and a variety of non-stainless steels including bulletproof steel. The continuous casting machine is equipped with a state-of-art Electro-Magnetic Stirrer in its mould for casting Blooms ASP has the capacity to produce Slabs, Blooms, Bars, Plates and Forged items of over 400 grades in a wide range of sizes. It also produces value added items like Cold Rolling Mill rolls, Concast rollers, crane wheels, springs, hammers, grate bars, hot saw blade, shear blade, bright bar, stainless steel liner plate, etc. ASP is also supplying import substitution item components to many customers through established conversion agents. Location Alloy Steels Plant has a unit-based marketing set-up with Head Quarters at Durgapur and
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regional offices at Kolkata, Murnbai, New Delhi and Chennai. It also has field offices in different places throughout the country, exclusively marketing the products of ASP. The Field Executives work in all the important centres in the country to ensure prompt and effective customer service and speedy redressal of complaints, if any.
Rourkela Steel Plant
Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes. The plant was modernized in the mid-1990s with a number of new units having state-ofthe-art facilities. Most of the old units were also revamped for effecting substantial improvement in the quality of products, reducing cost and ensuring cleaner environment. RSP was the first plant in India to incorporate LD technology of steel making. It is also the first steel plant in SAIL and the only one presently where 100% of slabs are produced through the cost-effective and quality-centric continuous casting route.
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RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9 million tonnes of crude steel and 1.67 million tonnes of saleable steel. It is SAILs only plant that produce silicon steels for the power sector, high quality pipes for the oil & gas sector and tin plates for the packaging industry. Its wide and sophisticated product range includes various flat, tubular and coated products. Almost all major units of the plant, including its Personnel Department and Steel Township, are certified to ISO: 9001 standards. RSPs Silicon Steel Mill, Sintering Plant II, Environment Engineering Department, Plate Mill, Hot Strip Mill, ERW and SW Pipe Plants, Special Plate Plant as well as Steel Township have been awarded ISO: 14001 certification for Environment Management. Location Rourkela Steel Plant is located in the north-western tip of Orissa and at the heart of a rich mineral belt. Being situated on the Howrah-Mumbai rail mainline, Rourkela is very well connected with most of the important cities of India. The nearby airports are Ranchi (173 km), Bhubaneswar (378 km) and Kolkata (413 km). Rourkela also has an airstrip maintained by RSP.
Raw Material Division

SAIL has the second largest mining outfit in the country. The mines of SAIL started their operations as captive sources of raw materials for its integrated steel plants. Major portion of its mining activities is managed by Raw Materials Division (RMD). Other mines are the Bhilai group of mines and the mines of VISL.
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The Raw Materials Division (RMD) was formed in 1989 with the avowed purpose of creating synergy of all the SAIL mines in the eastern sector, to rationalise supply of basic raw materials to the steel plants so as to achieve self sufficiency in quality iron ore.
Presently RMD, with its headquarters at Kolkata, manages 7 Iron Ore Mines and 3 operating flux mines, salient features of which are given below: In tune with the corporate plan 2012 of SAIL, various capacity expansion projects have been taken up at the RMD mines so as to cope up with the enhanced requirement of iron ore and limes stone of desired quality. The major projects cover the Expansion of capacity of Bolani Ore Mines, Development of Central Block at Meghahatuburu Iron Ore Mine, Development of South Block at Kiriburu Iron Ore Mine, Mechanization and development of Chiria Mines, Development of Taldih Block, and Opening a new mine at Thakurani. RMD also has a centralized workshop at Bolani for repair/overhauling of engines & transmission of heavy earthmoving machinery operating at the mines. Besides the above, RMD has three Customer Services Offices (CSO) at Rourkela, Durgapur & Bokaro and three Liaison offices at New Delhi, Bhubaneswar, and Ranchi for liaison and better coordination with various government agencies as well as different statutory agencies. HRD In order to utilize human resources effectively, prime importance is laid on the welfare of the workforce and development of potential to achieve high performance levels. A wellequipped HRD centre operates at Kiriburu Iron Ore Mine as nodal centre for training for all the mines under RMD.
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Facilities and Amenities All the mines are located in remote places and are thus devoid of the many advantages that a town or a city may provide. Yet many of the mines are self-contained as management has endeavored to provide basic facilities and amenities needed for reasonably good living of the people working in the mines. Employees enjoy the conveniences of residential quarters, schools, hospitals, banks, post offices, market complexes, playgrounds / stadium, community centres, clubs etc. The quality of life has been enriched today with facilities like telephone services, cable network and other household utilities. Environment protection RMDs mines are environment friendly. Its Kiriburu, Meghahatuburu Iron ore mines, and Bolani Ores Mines have already obtained Environment Management System (EMS) ISO 14001 certification and Kiriburu Iron ore mines, first in the chain of SAIL mines, has been certified for ISO 9001:2000 Quality Management System by the Bureau of Indian Standard (BIS). While involved in mining activities, SAIL has a strong commitment towards environment management in the mining and surrounding areas. Some of the environment protection efforts are:
Flora and fauna conservation Forestry and ecology improvement
Peripheral Development Being fully aware of SAILs Corporate Social Responsibilities, RMD has picked up the gauntlet of providing certain facilities through its several peripheral development
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schemes to improve the quality of life of the populace living in the villages surrounding the mines. Notable among these are:
Providing drinking water facilities. Construction of roads and culverts. Up-liftment of educational facilities through construction of classrooms, providing furniture, books and teaching aids.
Extending Medical treatment facilities, organizing family welfare camps, malaria control programmes, programmes on eye care, dental care and immunization, and AIDS awareness programme etc.
Employment generation activities through various construction and developmental schemes
The management works out and monitors peripheral development programmes through local committees comprising company officials and villagers representatives, ably assisted by the Chief District Medical Officers, Block Development Officers, Forest officials and others, wherever necessary, to make the schemes successful and popular.
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Original Documents
Original Documents are first submitted to Bank by the concerned plant for releasing payment to the supplier
After the release of payment to the supplier Original documents are then submitted to the SAIL BTSO for custom clearance, duty payments etc.
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Arrival Information of Vessel

Details regarding vessels that call on Kolkata Port Trust like Berthing Place, Name of the Vessel, Arrival Date, Sailing Date; Expected Arrivals, Vessels waiting for want of Berth, Vessels at Outer Anchorage, Vacant Berths etc
Berthing Place: Place alongside a quay where a ship loads or discharges cargo, or in the case of a lay-by berth, waits until a loading or discharging berth is available.
Name of the Vessel: It basically gives information about the name of the vessel arriving.
Arrival Date: Date on which vessel will arrive on the port. Sailing Date: Date at which the vessel will depart from a load port. Expected Arrivals: Date at which vessel is expected to be arrived at the destination port.
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The vessels coming into India have to call only at a designated Customs Port. In case of an emergency, if a vessel is required to call on at a undesignated port then the person in charge of the vessel shall follow the following instructions. He should immediately report to the nearest Customs officer or the nearest police station Without permission of the officers no goods should be unloaded, passengers and crew should not leave the vessel/aircraft unless safety or health requires them to move away. He shall comply with all the directions given by the officers.
The persons in charge of vessel have other liabilities, which are important and noteworthy. a. conveyance within Indian waters or port or customs area, which is adopted, fitted, modified or altered for concealing goods. b. A conveyance, from which goods are thrown overboard, staves or destroyed so as to prevent seizure by customs officers. c. A conveyance which disobeys any order under Section 106 to stop or land, without sufficient cause. d. A conveyance from which goods under drawback claim are unloaded without proper officers permission. e. A conveyance which has entered India with goods, from which substantial portion of goods are missing and failure of the master to account therefore.
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In all such cases, the person in charge of the vessel, or the owner or his agent has to prove that the vessel was used for such purposes without their knowledge. When a conveyance is confiscated, there is an option to pay redemption fine and recover the conveyance. The upper limit for imposing the redemption fine is the market value of impugned goods. Under Section 116, penalty may be imposed on the person in charge of vessel if there is failure to account for goods loaded in the vessel. That is, if there is any shortage in the goods unloaded, the person in charge of the vehicle will be liable to penalty. This provision applied to vessels carrying coastal goods also. In case of imported goods, the penalty may be twice the duty payable on the goods not accounted for. In case of coastal goods, the penalty will be twice the export duty that would have been chargeable on the goods unaccounted.
Vessel Declaration IGM-Customs

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by shipping agent
Arrival at customs port The person-in-charge of a vessel entering India shall call or land at customs port only. It can land at other place only if compelled by accident, stress of weather or other unavoidable cause. In such case, he should report to nearest police station or Customs Officer.
Import Manifest / Report- Person-in-charge of vessel, aircraft or vehicle has to submit Import Manifest / Report also termed as IGM - Import General Manifest. In case of a vessel, it is called import manifest, while in case of vehicle, it is called import report. The import manifest in case of vessel is required to be submitted prior to arrival of a vessel or aircraft. If the report / manifest could not be submitted within prescribed time, person-incharge or any person specified as responsible by a notification is liable to penalty up to Rs 50,000. Such penalty will not be imposed if the excise officer is satisfied that there was sufficient cause for the delay. IGM can be submitted electronically through floppy where EDI facility is available.
Custom Clearance
Customs Authorities and the Clearing agents play the key role in the import of goods. All
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goods imported into India have to pass through the procedure of Customs clearance as they cross Indian border. The goods are examined, appraised, assessed, evaluated and then allowed to be taken out of charge of the Customs for use by the importer. The entire process of customs clearance is complex and to carry out this procedure smoothly, the help of accredited customs clearing agents has to be taken. The importers need to present a Bill of Entry on receipt of the advice of the arrival of the vessel. The B/E is noted in Import Department, with corresponding endorsement made against the consignment entry in the IGM along with the date. The B/E will then be presented in the Appraising Department with all the relevant documents like invoice, Bill of Lading, and Import license and catalogue literature. The appraising procedure may be of two types. The First Check Procedure-Applicable only when appraisers/assessing group find it difficult to complete the assessment on the basis of the documents made available. The Scrutinizing Appraiser in the group gives the examination order. The goods are then examined in the docks and the B/E returned to the Scrutinizing Appraiser for completion and license debit. In this case the Customs 'out of charge' is given by the Accounts Department soon after the recovery of duty. The Second Check Procedure-Under this 80 to 90 percent of the consignments are cleared. If the documents are adequate for determining the classification, value, ITC license, the form is completed by the Appraiser and then countersigned by The Assistant Collector. It is then forwarded to the License Department for licensing debit and audit. Then it is returned to the importers for payment of duty in the Accounts/Cash department. After recovery of duty the original B/E is retained in the Accounts Department and the duplicate and other copies are returned to the importer for getting the goods examined in the docks. In the docks, the Shed Appraiser/Examiner shall examine the goods and if in order, shall
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give the out of charge for taking delivery from the custodian of the goods viz. Port Trust, after payment of Port Trust charges. Irrespective of the procedure, examination of cargo for assessment purpose is chiefly the function of the Appraising Department having special staff of examiners in the docks/Air cargo shed. The records of the examination and weighment should be declared, attested and dated at the time of the examination. If the examination spreads over more than one day, the result on each day's progress should be disclosed. These apart some of the Customs house in India have introduced the simplified computer procedure for speedy clearance of consignment through B/E.
Custom Clearance of Imported Goods

Introduction Bill of Entry Amendment of Bill of Entry Green Channel facility Payment of Duty Prior Entry for Shipping Bill or Bill of Entry Specialized Schemes Bill of Entry for Bond/Warehousing
Introduction
All goods imported into India have to pass through the procedure of customs for proper
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examination, appraisal, assessment and evaluation. This helps the custom authorities to charge the proper tax and also check the goods against the illegal import. Also it is important to note that no import is allowed in India if the importer doesnt have the IEC number issued by the DFGT. There is no requirement of IEC number if the goods are imported for the personal use.
Bill of Entry
A Bill of Entry also known as Shipment Bill is a statement of the nature and value of goods to be imported or exported, prepared by the shipper and presented to a customhouse. The importer clearing the goods for domestic consumption has to file bill of entry in four copies; original and duplicate are meant for customs, third copy for the importer and the fourth copy is meant for the bank for making remittances. If the goods are cleared through the EDI system, no formal Bill of Entry is filed as it is generated in the computer system, but the importer is required to file a cargo declaration having prescribed particulars required for processing of the entry for customs clearance. In the non-EDI system along with the bill of entry filed by the importer or his representative the following documents are also generally required: Bill of Lading Invoice Packing List Insurance Premium Bill Certificate of Origin Test Certificate
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Provided all the above mentioned documents are complete, the clearing agency prepares the Bill of Entry. It may be noted that at present the bills of entry are being filed electronically with the customs department. For such purposes the custom official have issued Pin Code to every clearing agent along with a CD which contain the standard formats of bills of entry in blank form. The clearing agent after giving all the particulars in the bills of entry hand over the CD along with all the requisite documents to the customs officials for their review and clearance of goods. There are three types of color coded Bills of Entries, which are explained here as:
White Bill of Entry: The Bill is Prepared when the consignment is to be cleared against the cash payment of the duty levied without transferring it to a warehouse. Yellow Bill of Entry: This bill is filed when the shipment is transferred to the bonded warehouses
Green Bill of Entry: This bill of entry is used for the release of shipments which have been placed in bonded warehouse against the yellow colored bill of entry. Clearance Procedure for White Bill of Entry The clearing Agent first receives the delivery order from the shipping agency and subsequently files the Bill of Entry contained in the computer CD along with the previously mentioned documents with the customs department, where a manifest for the consignment is filed. After the filing of the manifest machine number and group number is allotted. Group number is predefined number based on the category set by the Customs department. The bill of entry should be completed in all respects and the amount of payable customs duty, sales tax, income tax etc should also be typed on the bill of entry.
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Clearance Procedure for the yellow Bill of Entry The procedure for the yellow Bill of Entry is almost identical to the white bill of entry however the only difference is that instead of clearing the shipment against cash, it is placed in a bonded warehouse. The customs appraisal procedure remains the same, however in case of filing of yellow bill of entry, a No Objection Certificate is required from the bonded warehouse authority. In addition to NOC a surcharge amount equivalent to 2% of the customs assessed value of the shipment or such other rate, as is for the time being fixed by the CBR, is paid to the government. Bonded warehouse can be very helpful to business, which does not require the whole shipment immediately released. It can be best utilized in case of shortage of cash amount with an importer for the release of a consignment. It is a storage facility, where the consignment is stored under secured conditions for a certain period of time that has been predefined. The shipment remains in the bonded warehouse against normal charges for a specified period until the importer requires part of whole of the shipment, which can be cleared and released against the filing of green bill of entry.
Clearance Procedure against Green Bill of Entry: The procedure for clearance against green bill of entry is same as that of white bill of entry except that it is filed to ex-bond the goods in whole or in part of the goods bonded against yellow bill of entry.
IMPORTANT ISSUE: Once the white bill of entry is filed for clearance of goods, it is not possible to transfer the consignment into bonded warehouse. Where the owner does not have full Information about the consignment: In case an owner of a shipment is unable to make complete entry of the goods imported
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in a bill of entry, he may make a declaration to that effect before the appropriate officer with the request to examine the goods. The appropriate officer may, subject to the conditions prescribed by the collector, and permits such officer to examine the goods in the presence of an officer of customs or to deposit of such goods in a public warehouse without warehousing the same, pending the production of such information
Amendment of Bill of Entry

Whenever mistakes are noticed after submission of documents, amendments to the bill of entry is carried out with the approval of Deputy/Assistant Commissioner.
Green Channel facility

Some major importers have been given the green channel clearance facility. It means clearance of goods is done without routine examination of the goods. They have to make a declaration in the declaration form at the time of filing of bill of entry. The appraisement is done as per normal procedure except that there would be no physical examination of the goods.
Payment of Duty
Import duty may be paid in the designated banks or through TR-6 challans. Different Custom Houses have authorized different banks for payment of duty and is necessary to check the name of the bank and the branch before depositing the duty. Introduction The concept of import duty is very wide and is almost applicable to every product or item imported to India barring a few goods like food grains, fertilizer, life saving drugs and equipment etc. Import duties form a significant source of revenue for the country and are
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levied on the goods and at the rates specified in the Schedules to the Customs Tariff Act, 1975. Import through Sea Territorial water extends up to 12 nautical miles into the sea from the coast of India and so the liability to pay import duty commences as soon as goods enter the territorial waters of India. No duty is livable on goods which are in transit in the same ship or if goods are in transit from one ship to another. Basic duty Basic Duty is a type of duty or tax imposed under the Customs Act (1962). Basic Customs Duty varies for different items from 5% to 40%. The duty rates are mentioned in the First Schedule of the Customs Tariff Act, 1975 and have been amended from time to time under the Finance Act. The duty may be fixed on ad valorem basis or specific rate basis. The Central Government has the power to reduce or exempt any good from these duties. Additional customs Additional duty also known as countervailing duty or C.V.D is equal to excise duty imposed on a like product manufactured or produced in India. It is implemented under the Section 3 (1) of the Indian Custom Tariff Act. The Government has exempted all goods, when imported into India for subsequent sale, from the whole of the additional duty of customs leviable thereon under Sub-Section (5) of Section 3 of the Customs Tariff Act vide Customs Tariff Notification No. 102/2007 dated 14th September 2007. However, the importers will be first required to pay the said duty and thereafter required to claim the refund. Special additional duty Special Additional Duty of Customs is imposed at the rate of 4% in order to provide a level playing field to indigenous goods which have to bear sales tax. This duty is to computed on the aggregate of
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Assessable value Basic Duty of customs Surcharge Additional duty of Customs leviable under section 3 of the Customs Tariff Act, 1975 (c.v.d.)
Anti-Dumping Duty Dumping means exporting goods in a foreign market at a price which is less than their cost of production or below their "fair" market value. Dumping gives a hard competition to a domestic goods manufacturer. So, to counteract this dumping, the Indian government has formulated certain guidelines and policies. Imposing duty on imported goods is also one of them and is known as Anti-Dumping Duty. All the laws related to anti-dumping duties are mention in the sections 9A, 9B and 9C of the Indian Customs Tariff Act (1975), and the Indian Customs Tariff Rules (1995). These laws are based on the Agreement on Anti-Dumping which is in pursuance of Article VI of GATT 1994. PAYMENT OF DUTY - After assessment of duty, necessary duty is paid. Regular importers and Custom House Agents keep current account with Customs department. The duty can be debited to such current account, or it can be paid in cash/DD through TR-6 challan in designated banks. After payment of duty, if goods were already examined, delivery of goods can be taken from custodians (port trust) after paying their dues. If goods were not examined before assessment, these have to be submitted for examination in import shed to the examining staff. After shed appraiser gives out of charge order, delivery of goods can be taken from custodian. First and second system of assessment - There are two systems of assessment. First one
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provides assessment after examination of goods and Second system provides for assessment on basis of documents, followed by inspection and testing of goods. First appraisement system or 'first check procedure is followed if the appraiser is not able to make assessment on the basis of documents submitted and deems that inspection is necessary. Goods are examined first and then these are assessed. This method is followed only if assessment is not possible on basis of documents. - - The importer himself may also request 'first check procedure', if he cannot give all required details regarding description / value of goods. He has to make request for first check examination at the time of filing of Bill of Entry or at data entry stage in case of EDI. He has to give reason for seeking first appraisement. The examination order is recorded on Bill of Entry and then returned to importer / CHA. It is then presented to import shed for examination. The shed appraiser / Dock examiner examines the goods as per examination order and records his findings. If samples are required, they are taken out. In case of EDI system, the report of examination is given in the computer itself. The goods are then assessed to duty by appraiser.. In Second Appraisement System or 'second check procedure, which is normally followed, assessment is done on basis of documents and then goods are examined. Such examination is not mandatory. It is done on selective basis on the basis of risk assessment or specific intelligence report. Section 17(4) of Customs Act specifically provides that if initially assessment is done on basis of documents, re-assessment can be done after examination or testing of goods or otherwise, if it is found subsequent to examination or testing or otherwise, that any statement made on Bill of Entry or any information supplied is not true in respect of matter relevant to assessment of duty. Execution of bond and payment of duty - Once the duty is assessed, the bill of entry is returned to importer. The Bill of Entry should be presented to comptist for calculation and pinpointing of the duty. If bond has to be executed, it will be taken in bond section.
If goods are to be removed to a warehouse, duty payment is not required. The goods can
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be taken to a warehouse under bond, without payment of duty. However, if goods are to be removed for home consumption, payment of customs duty is required. CHA or the importer can take it for payment of customs duty. Large importers and CHA have P.D. accounts with customs. Duty can be paid either in cash or through P.D. account. P. D. account means provisional duty account. This is a current account, similar to PLA in central excise. The importer or CHA pays lump sum amount in the account and gets credit on the amount paid. He can pay customs duty by debiting the amount in P.D. (Provisional Duty) account. If the importer does not have an account, he can pay duty by cash using TR-6 challan. Of course, payment through PD account is very convenient and quick. The duty should be paid within five working days (i.e. within five days excluding holidays) after the Bill of Entry is returned to the importer for payment of duty. Prior Entry for Shipping Bill or Bill of Entry For faster clearance of the goods, provision has been made in section 46 of the Act, to allow filing of bill of entry prior to arrival of goods. This bill of entry is valid if vessel/aircraft carrying the goods arrive within 30 days from the date of presentation of bill of entry. Specialized Schemes Import of goods under specialized scheme such as DEEC and EOU etc is required to execute bonds with the custom authorities. In case failure of bond, importer is required to pay the duty livable on those goods. The amount of bond would be equal to the amount of duty livable on the imported goods. The bank guarantee is also required along with the bond. However, the amount of bank guarantee depends upon the status of the importer like Super Star Trading House/Trading House etc.
Freight Bill and Other Charges Bill

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Freight Bill
Required under FOB only Carrier's invoice for freight charges applicable to a shipment Non-negotiable B/L that serves as a contract of carriage between a shipper and a freight forwarder.
Other charges bill
Required under FOB, CIF and COF. Carrier's invoice for freight charges applicable to a shipment Non-negotiable B/L that serves as a contract of carriage between a shipper and a freight forwarder.
Payment of bills
All the Freight bills and other charges bill are paid. Basically Payment to all the freight bills and other charges is made at this stage.
DELIVERY ORDER
D/O is the abbreviation for the term Delivery Order. A delivery Order is a document from a consignor, a shipper, or an owner of freight which orders the release of the transportation of cargo to another party. Usually the written order permits the direct
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delivery of goods to a warehouseman, carrier or other person who in the course of their ordinary business issues warehouse receipts or bills of lading.
According to the Uniform Commercial Code (UCC) a delivery order refers to an "order given by an owner of goods to a person in possession of them (the carrier or warehouseman) directing that person to deliver the goods to a person named in the order."
A Delivery Order which is used for the import of cargo should not to be confused with delivery instructions. Delivery Instructions provides "specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line."
"A delivery order was not regarded as a document of title at common law with the result that the transfer of the delivery order did not affect transfer of constructive possession of the goods. Attornment on the part of the bailee was required (i.e., an acknowledgement that the bailee held the goods on behalf of the transferee). The Uniform Documents of Title Act permits the use of negotiable delivery orders (if the order directs delivery to a named person or order). However, it is still necessary to single out delivery orders for special treatment. Until the delivery order is accepted by the bailee, there is no basis for imposing obligations on the bailee. See discussion under sections 18 and 19. See also the definition of "issuer"."
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Port Operations
The port operations work is now being looked after by SAIL BTSO at the VIZAG Port.
Intimation about the programme of different consignments to be handled at the various ports is compiled in the Head Office and issued as Shipping Statement every 10 days
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on 5th, 15th and 25th of each month. The statement gives broadly the position in respect of the following: 1. 2. 3. Ships berthed Ships arrived and awaiting berths Ships expected to arrive.
The general description of the individual operations involved at the port in handling cargo is as below:
Discharge from the ship:

The different types of vessels viz. Dry Cargo, Bulk Carrier and Tankers are engaged for carriage of imported cargo. The mode of discharge, therefore, depends on the type of cargo and vessel carrying it. The Tankers have necessarily to the discharged with the help of pneumatic discharging machines whereas other vessels which have open hatches are handled generally by conventional methods.
Operation on the wharf:

This part of the operations consists essentially in (i) bagging the cargo on wharf, (ii) removing the cargo from the wharf to transit shed. These operations are generally conducted by port labour.
Operations in the shed: These would include:

a) Bagging the cargo if it has been discharged in bulk into the shed, and
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b) Dispatch of the cargo from the shed by way of (i) (ii) (iii) loading into wagons if the shed has the siding Movement to the railhead by road in trucks and/or in port railways and Deliveries to local recipients in trucks.
Besides the above direct operations, the port operation units have also to take care of several ancillary aspects. These include general administration relating to port operations, record maintenance, operational and statistical reporting and pursuing shipping claims including preparation of statement of fact for finalization of Time Sheets.
Standardization:
Standardization means putting a specified weight of cargo in each container. The term would ordinarily means an accompaniment of bagging operations. In other words, while bagging is done, it is so done that bags are filled only to a standard weight. Short filling means consumption of more gunnies resulting into financial loss to corporation, as cost of gunnies is not separately recovered from the recipients. The remedy to such situation is Standardization. The standardization is done in two types of gunnies, viz B Twill & DW based on their capacity, and the following weights have been prescribed for various types Imported Items for the purpose of standardization of imported Spare Parts at the ports:-
Change in discharge schedules and variations over other charter terms:

proposal for such changes should be referred to the Head Office. Particular care had to be taken in regard to changes relating to US flag vessels when bringing consignments under PL 480 agreement in respect of which the US Government was also in the picture for changes in discharge schedules or monetary compensation on account of operational disadvantage being negotiated.
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Forms of Charter Parties:

The charters made by the Ministry of Shipping & Transport, Government of India, for and on behalf of the Steel Authority of India Ltd for dry cargo vessels, bulk cargo vessels and tankers are generally in the form of Approved Baltimore berth grain charter. The terms of the Charter Parties are modified or changed from time to time in the light of experience gained by the Charterers, and difficulties pointed by the shippers, the Indian Missions abroad, and the Zonal Managers of the Corporation, as acceptable to the owners.
Payment of ocean freight:

The procedure is relevant in regard to the payment of 90% and balance 10% freight in respect of Indian Flag vessels.
Sales Tax Clearance

A Sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions. Laws governing the tax may require it to be included in the price (tax-inclusive) or added to the price at the point of sale. Most sales taxes are collected from the buyer by the seller, who remits the tax to a government agency. Sales taxes are commonly charged on sales of goods, but many sales taxes are also charged on sales of services. Ideally, a sales tax would have a high compliance rate, be difficult to avoid, and be simple to calculate and collect.
Types of Sales Tax

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A conventional or retail sales tax is charged only on the sale of an item to its final end user. To achieve this, a purchaser who is not an end user is usually required to provide the seller with a "resale certificate," which states that the seller is purchasing an item to resell it. The tax is charged on each item sold to purchasers who do not provide such a certificate. Other types of sales taxes, or similar taxes, include:
Gross receipts taxes, levied on all sales of a business. This tax has been criticized for its "cascading" or "pyramiding" effect, in which an item is taxed more than once as it makes its way from production to final retail sale.
Excise taxes, applied to a narrow range of products, such as gasoline or alcohol, usually imposed on the producer or wholesaler rather than the retail seller.
Use tax, imposed directly on the consumer of goods purchased without sales tax, generally items purchased from a vendor in another state and delivered to the purchaser by mail or common carrier. Use taxes are commonly imposed by states with a sales tax, but are difficult to enforce on consumers, except for large items such as automobiles and boats.
Value Added Taxes, in which tax is charged on all sales, thus avoiding the need for a system of resale certificates. Tax cascading is avoided by applying the tax only to the difference ("value added") between the price paid by the first purchaser and the price paid by each subsequent purchaser of the same item.
FairTax, a proposed federal sales tax, intended to replace the federal income tax. Turnover tax, similar to a sales tax, but applied to intermediate and possibly capital goods as an indirect tax.
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Port Rent
The port charges consist of:
Vessel related charges consisting of port dues, pilot age, berth hire charges and anchorage charges.
Cargo handling charges consisting of wharf age and storage. Other charges like the hire charges for the use of port equipments, etc
The port tariff does not include the following:

Charges paid to the transshippers owners for handling ores. Labour paid to the Cargo handling labour dept., (formerly DLB), and Mormugao handling agent's association.
Charges paid for the services of stevedores and cargo handling agents towards cost of gear, supervision, hire of machinery and trucks, and other incidental expenses.
Charges paid to ship agents, custom house agents etc.
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Worked examples of some vessels with different types of the major commodities handled at this port are provided to give a rough idea to the port users as to the charges payable to the port for handling their cargo. Besides, the labour charges are shown. However the other costs of transhippers, stevedores and handling agents are not shown. Information provided in this section is meant for rough and ready guidance for the port users. For more details, users are advised to refer to the Schedule of Rates and also consult their stevedores, ship agents etc. The Port Charges, viz. Vessel related charges and Cargo related charges are generally revised once in three years.
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SEA IMPORT -5 YEAR TREND
Years
Quantity (MT) No. of containers. No. of consignments
2005-06
2006-07
2007-08
2008-09
2009-10
23078
1455 0 715 399
14362
16574
20599
1010 364
658 332
731 397
925 302
Physical Appraisement
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Next step is the Appraisement of the consignment. The designated customs officials examine the goods to ensure whether the particulars given in the bill of entry i.e. amount of duties and taxes, PCT heading etc. correspond with the goods imported. Provided there is no contradiction with the particulars given in the bill of entry and the goods actually imported, the case is marked to the principal appraiser of the assessment hall, for assessment of duties and taxes on the imported goods. On assessment of duties and taxes, the amount so assessed is deposited in the treasury and goods are released. Physical inspection of imported goods will be done by risk-assessment and management techniques on a computer based system and not on the orders of customs examining staff. Audit of import documents will not be by existing system of concurrent audit but will be done by post-clearance audit, as prevalent in developed countries
Delivery to Plant
Last Stage is the Delivery of Imported Spare Parts to plant. All the Imported Spare parts and coking coal are delivered to Manufacturing plants through various transporters appointed by the SAIL BTSO.
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CONCLUSION
I had done my internship at Steel Authority of India Ltd regarding its Sea Import, Documentation and port operation. There are different operations carried on port in order to import Spare Parts used in manufacturing of Steel by the SAIL. These operations are
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carried out by the BTSO (Branch Transport and Shipping Office) department of the SAIL. SAIL BTSO:-My Internship had taken in BTSO is physical process of transporting goods and cargo from one place to other. Every product ever made, bought, or sold has been affected by Import-Export. Despite the many variables in shipped products and locations, there are only three basic types of shipments: land, air, and sea. Import-Export department have the responsibilities of managing the availability of Spare Parts on time, Delivery of shipments on time, to manage all Import documents, to calculate the size of shipment according to the products. The use of containers in Import shipments makes the transport and handling easier and faster. The crane and gantry are commonly used in handling containers. The forklift is also used at the docks and container terminals to move the 20' and shorter dry cargo containers.
Problems
1.
Unethical business practices adopted by shippers, exporter, importer& maritime frauds in international trade.
For Example: Under Documents against Payment (D/P), sellers ship the cargo and send original documents to the collecting bank, usually in the buyer's country. Meanwhile, they also send `non-negotiable' copies of the bills of lading to the buyers to advise them
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of the vessel carrying the cargo. Based upon the non-negotiable bills of lading, the buyers prepare a false `original'. This is presented to the shipping agent when the vessel arrives at the discharge port, and a delivery order is obtained which is used to clear the cargo out of the port. This fraud enables the buyers to bypass the original documents awaiting payment and collection at the collecting bank. By the time the seller realizes his documents are overdue for collection, the cargo and the buyer have often disappeared. In this scenario, the shipping company may face a claim from the seller for delivery of the cargo without presentation of the original bill of lading.
2. Use of information technology is limited.

Limited use of information technology gives rise to low labour productivity, Delay in Delivery of goods. Due to limited use of Information Technology the whole procedure of Sea Import consumes lots of time. Limited availability of Customer Related Information, facts & figures, resource planning etc.
3. Inadequate infrastructure leading to port congestion, road blockage, demurrage & damage to cargo.
Due to Port Congestion ships have to queue up and wait for a berth so they can load or offload. Ports only have a limited amount of dockage, storage area and only limited no of cargo & container cranes. Ships usually have to "wait in line" to get to the cranes or the pier because there is a high demand on the limited resources of a port. The high traffic volume causes port congestion.
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Congestion and poor infrastructure have severely affected business operations at the Kolkata port. There has been a steep decline in ship movement even as the port remains open, despite earlier announcements of it being shut down till October 17. The situation at the dock is grim with all trailer-tractor trucks and four reach stackers being out of order for some time. Also, sources in the Kolkata dock say that vehicles may have to wait at the anchorage till as late as October 17, before the congestion backlog clears. The Kolkata port, operated by the state-run Kolkata Port Trust, handles about 25,000 standard containers a month. From September, container ships calling at Kolkata are facing delays due to draft restrictions and lack of space to store containers. This becomes a cost for shipping lines. Hence, congestion surcharge are imposed which is a big problem. Container ships calling at the port take about six days to unload and load containers and sail off, a process that needed two days or less.
4. Complex rules & regulations leading to multiple documents.

National and international businesses, traders and transport operators are faced with numerous documents and forms (up to 40 originals), often containing redundant and repetitive data and information (200 data elements on average). These documents, frequently not standardized, are complex and cumbersome for traders to complete and for authorities to verify. Moreover, if they exist only in one language, such documents and forms might be difficult to understand. Excessive paperwork takes more time for import and transit procedures and formalities and calls for the employment of more human resources in government and the private sector. This invites errors in submissions and malfeasance, raises trade transactions costs, and slows down trade flows.
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Recommendations
1. Proper check on exporters activities and Maritime Frauds
Making checks into the background of sellers, through banks, embassies and other trade sources. Requesting a full set of documents of title to the goods for presentation under the
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credit. Requiring the provision of a performance bond from the supplier's bank. Calling for inspection, analysis, weight and other certificates to be issued by independent third parties. Checking that the vessel nominated to perform the voyage has the capacity to carry the particular cargo, will be calling at the nominated loading port and is scheduled to go to the discharge port. Arranging for a cargo surveyor to go to the loading port to examine the cargo and supervise the loading operation. Additionally (and if practical), providing for a cargo surveyor to remain on the vessel during transit
2.
The use of information technology should be introduced.
All operations from planning, production and emission control to management should be computerized. The Company should plan to integrate advanced computer and communication systems like Electronic Commerce, Satellite communication etc. Development of Artificial Intelligence to facilitate decision making and control of Production Process.
Integrated IT solutions for deliveries on schedule, resource planning, facts
& figures retrieval, customer related information. Central database with all details on time, location, resource and contract information All service units have access to database for every task related to defined targets PC based cargo tracking, accounting and billing Dispatching cycle and customer related information through website
Adequate infrastructure is required to deal with port congestion, road blockage, and demurrage.
Government should dredge the ports channel to create more depth. Reducing equipment breakdown and widening of roads leading to the port will make it easier to evacuate
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containers. The depth of the ports channel should increase to 8-9 m from 5m so that ships can be called with their full loading capacity to enter the port.
1. Training and development program should be there at lower level

An interactive training program that identifies and develops the critical management practices and skills for creating a work environment in which resilience flourishes. Team Effectiveness Process (TEP) - Often the best starting point for solving workload issues, this process engages and empowers workgroups to identify the practices and processes that cause excessive workload for their team and develop solutions and "quick wins" to improve teamwork, reduce low value work and stress, and enhance work-life effectiveness.
2. Documents must be made more simplified to make import easy.

Simplified trade documents and procedures aligned to international standards expedite trade transactions as they provide a common basis for similar measures applied by different countries and regions. In addition, aligned trade documents are the first step towards electronic documents submission and Customs automation
Simplified and standardized trade documentation yields tangible benefits: Fewer documents and forms - easy to complete Reduced time, money and human resources - lower total transaction costs
Harmonized data elements - facilitate document transmission between countries
and remove language barriers Easy reproduction and fewer mistakes - as data is entered only once
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Improved administrative controls Smoother transition to automation and electronic documents submission.
Bibliography
Internet
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www.google.com www.scribd.com
www.wikipedia.com
www.sail.co.in
References

The Major Port Trust Act, 1963 Research Methodology by CR Kothari Handouts provided by SAIL Annual Report of SAIL Indian Port Act 1908 Inco terms Import Procedure: Ministry of Commerce, Government of India
Custom and Excise Law times: Various Issues
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Sea Import Procedure and Documentation

Executive Summary Purpose of the Study

2. Profile of the company

Sea Import Procedure and Documentation

Conclusions and Recommendations Bibliography

Sea Import Procedure and Documentation

Purpose of the Study

Sea Import Procedure and Documentation

Steel Authority of India ltd

Sea Import Procedure and Documentation

SAIL Structure and Activities

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Future Prospects of SAIL

Sea Import Procedure and Documentation

Base Case ( 2006-07) Actual

After Expansion 2012-13

Hot Metal Crude Steel Saleable Steel

14.6 13.5 12.6

26.2 (23.5) 24.6 (21.4) 23.1 (20.2)

Sea Import Procedure and Documentation

Construction activity at ISP

Sea Import Procedure and Documentation

Share Department of SAIL

Sea Import Procedure and Documentation

Objective of the Study

The objectives are:

To study the documentation required in shipping and port operation.

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure

Sea Import Procedure and Documentation

COPY DOCUMENTS SAIL BTSO VIZAG

Vessel Declaration IGMDock of File Customs by shipping agent

Arrival Information of Vessel

Sea Import Procedure and Documentation

Freight Bill and Other Charges Bill

Payment of Bills Delivery Order Sales Tax Clearance

Sea Import Procedure

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Material Ready at Load Port

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Test Certificate Bill Of Lading

Types of Bill of Lading Clean B/L B/L acknowledging receipt of goods

insufficiently packed is known as claused

Sea Import Procedure and Documentation

Transshipment or through B/L

Freight paid B/L

Freight collect B/L

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation

Sea Import Procedure and Documentation