flexituff project
TRANSCRIPT
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ACKNOWLEDGEMENTLife of human beings is full of interactions. No
one is self-sufficient by himself whenever anyone is doing some
serious and important work a lot of help from the people concerned is
needed & one less specially obliged towards them. I cannot forget
acknowledging them in few words as without the guidance & co-
ordination of them in my project report would not have been possible
A large number of individual contributed to this project. I am
thankful to all of them for their help and encouragement. My
writing in this project report has also been influenced by a number
of website and standard textbooks. As far as possible, they have
been fully acknowledged at the appropriate place .I express my
gratitude to all of them.
First of all I owe my heartfelt gratitude to my guide prof. joshi for his
noble guidance throughout the completion of the Project.
I would like to extend my heartfelt thanks to Mr. Sushil gupta
marketing Manager of flexituff international pvt. for giving me an
opportunity to work on this project.
I would also like to thank Mr. Shilandra sir Senior marketing Executive,
Mr.Avinash sir and his team in document department of flexituff
international pvt. Ltd. for his guidance, inspiration, and constructive
suggestions, which helped me in the Project.
I must also thank the management & HR Executives of flexituff
international pvt. Ltd. to provide excellent opportunity and
environment to be able to pull my project through. Cooperation of the
staff is also gratefully acknowledged.
Last but not least, also give my sincere thanks to all the people to
directly indirectly have help and encourage me in finding the way to us
collecting the requisite information and completing the project
effectively and time
Sourabh joshi
PGDM 2nd sem
Indore magt.Institute indore
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Declaration
I hereby declare that this report on EXPORT DOCUMENTATION ANDPROCESS
has been written and prepared dy me during the academic year 2011-
2012.
This report (project)was done undertheable guidance and supervision
of prof. S.D. Joshi sir faculty, IMI INDORE, IN partial fulfilment of the
requirement for the POST GRADUATE DIPLOMA IN MANAGEMENT of
the IMI INDORE.
I also decleare this project is the result of
my own effort and has not been submitted to other institution for the
award of any degree or diploma.
Place : indore
Sourabh joshi
PGDM 3RD SEM.
Indore mgt. Institute indore
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COVER PAGE
EXPORT PROCESS AND
DOCUMENTATIONPROJECT REPORT
This project report entitled Export Process and
Documentation based on my knowledge and a
month long work experience with FLEXITUFF
International Pvt. Ltd. as a summer trainee.
SOURABH JOSHI
PGDM 3RD SEM.
IMI COLLAGE INDORE
EXPORTPROCESSANDDOCUMENTATION
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INDEX
Introduction of study
Objective of study
Research Methodology
Scope of the Project
Limitations of the study
Company Profile
Organization detail
Work pattern
Product range
Data Analysis and Interpretations
Findings
Bibliography
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INTRODUCTION OF STUDY
This project is all about to know about export import procedure/
documentation of shipment. This project puts more focus on to know
custom clearness, to make export - import invoice, to get shipping bill
number from custom department make sample document pre and post
document of export etc. This project will also find out how flexituff
international Pvt. Ltd. could sustain in the competitive world by
providing vast range of bulky bags handling through all instruments
which flexible prompt and innovative in meeting the requirement of the
customer. The purpose of the study was to know about export import
documentation of felxituff internationals Pvt. Ltd. Product.
Flexi tuff international pvt. Ltd. Is worlds second largest
manufacturerof fibc bulk containor . They export 90% of there product
in all over the world .
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OBJECTIVE OF THE STUDY
To know about export import process.
To know what are the documents required before and after
selling product
To know different type of documents and its process
To know about sales process
TO know about product detail and its export policy
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RESEARCH METHODOLOGY
Collect data/information about process through:
Primary data collection:-
E-mail
Telephone
Invoice
Packing List
Secondary data collection:-
> Invoice
> Packaging list
> Shipping bill
> Internet
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RESEARCH DESIGN
Research design is the based framework, which provides
guidelines for the research process. It is a map or blue print according
to which the research is to be conducts. The research design specifies
the methods for data collection & data analysis determine the source
of data. Most specifically it was a kind of Descriptive conclusive
research who takes care of who, when, where, what, how and why
aspects of the investigation further the researcher used the statistical
method to serve he purpose of project, it permitted the research to
derive more accurate generalization whose reliability could be
measured.
CENTRE : ALL OVER INDIA
RESEARCH : EXPLORATORY
RESEARCH TECHNIQUE : QUALITATIVE & QUANNTATIVE
TOOL USED : TELEPHONIC & E-MAIL
DATA SOURCE : PRIMARY & SECONDARY
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SCOPE OF THE STUDY
The scope of marketing research could cover the business problems
relating to the followings.
Types of consumers that compromise present and potential
markets.
Buying habits and pattern of consumption
Size and location of different markets, not only in India but also
overseas.
The prospects for growth or construction for the current markets
being served.
New mantras of emerging segments.
Marketing and manufacturing capabilities of competitors.
Most suitable entry timing.
The current and prospective competitive position.
Know about customer requirement.
To know about competitor and provide support .
Chances of improvement of current channels.
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LIMITATIONS OF THE STUDY
Not a panacea
Not an exact science
Limitation of time
Erroneous findings
Not exact tool for forecasting
In experience research staff
Narrow conception of marketing research
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COMPANY PROFILE
INTRODUCTION OF THE ORGANIZATION
Flexituff International Ltd, a company promoted by the renowned
Kalani group from Indore. Flexituff has the largest capacity in India
(2nd largest in the World) to produce PP woven based products. It has
the most modern Plant & Equipments under one roof to convert PP
granules to tapes, fabric, printing, extrusion lamination & bag making.
Flexituff is the first company to start BOPP printed & laminated ppwoven bags in India about seven years back. It is the leader in Jumbo
bags, Big bags and container liners. Due to continuous support and
strength derived from its own R& D and the international quality set &
maintained by its team of scientists, engineers & professionals, today,
Flexituff is exporting to more than 40 countries in the world and has
been receiving Best export awards year after year.
flexituff are also glad to mention here that Flexituff is the first and
only Asian company now successfully audited and certified by AIB
(American Institute of Food Bakers, USA) and BRC (British RetailersConsortium UK) to make direct food contact bags for supplies to
American and European companies. We are also certified for ISO 9001:
2000 and HACCP. In addition to three Units at Pithampur near Indore,
we are coming up with another most modern Unit at Kashipur at
Uttarakhand, where the commercial production is started. . This Unit
will have excise duty exemption for next 10 years and partial
exemption for CST.
flexituff are catering to different sectorslike; Agriculture produce-vegetables, fruits, rice, wheat, atta, besan,
salt, spices, as well as to other sectors like; fertilizer, chemicals,
cement, etc. We also have the experience & expertise to produce any
type of PP / HDPE bags to customer specifications. We can confidently
offer packaging solutions to prospective & other customers for
packaging of their products right from 1 KG to 20, 000 KG. For your
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ready reference, we are giving below list of our products:
* BOPP printed / laminated PP woven & Non-laminated bags with or
without liners**small bags*Jumbo bags*big bags*Container
Liners*Thermoformed wares / products**PP sheets*PP panels
(substitute to wood) *Leno bags*Printed & unprinted fabric*,etc.Manufacturer and exporter of all types of bopp printed bags, garden
waste bags, asbestos bags, form fitted liner bags, tunnel lift bags,
container liner bags etc
Manufacturers & exporters in India, having ISO 9001 certification.
Team Flexituff is committed to serving all your FIBC requirements. The
commitment stems less from the mammoth manufacturing facilities
we possess and more from our 5000 strong work force. Nothing
defines Flexituff better than its people. Young in outlook and rich in
experience, Team Flexituff strives for total customer satisfaction,
continuous improvement in quality and delivering ever larger value to
its buyers.
Despite the over arching team spirit that prevails at Flexituff, we
believe, commitment to customers begins with the individual.
Although, our 5000 member team works like a well greased machine,
it is the individuals - the cogs, who fuel its driving commitment to
quality and responsiveness.
100% customer orientation has helped Flexituff gain wide global
market share. A fact, acknowledged by the Govt. of India.Awards,
citations, growing volumes, expanding product range and satisfied
customers are achievements we now take in our stride. But nothing
fails to tickle us more than the idea of an impossibility.
Throw us a challenge and you have us hooked.
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company features
Team Flexituff nurtures its hunger to hit
the ball out of the park. We like to be known as partners who can rise
to the moment, who can be counted upon to meet a crisis head on...Size Matters So does integration...
but what matters most is the system of putting it to use. That is
where, Team Flexituff scores. I would like to believe we are engaged
in an enterprise which delivers ever greater value to our customers.
And we can partner ourselves as vendors who can be intrinsically
relied upon to deliver any FIBC requirement Within an exacting
spectrum of cost, quality and delivery schedules.
I would like to believe, that our products impact the business of our
clients. That our endeavors can earn profits for our stakeholders,
value for our customers and equity for our brand.
Emergencies...? No sweat !
Pharmaceuticals...Bulk Drugs...Cement...Polymer
Resins...Agro Produce...Chemicals... you name it. Team Flexituff has
an FIBC ready to package your product.
You want it swiftly? No sweat! You want last minute additions to the
your existing order. No sweat! You want a complicated sample in 72
hours? No sweat! You want 1000 more bags in tomorrow's shipment?
No sweat! You want to upstage your competitor? No sweat!
Our fully integrated plant eats emergencies for breakfast. Our
dedicated Account Handlers stay in daily contact with you. Never do
you wonder who was the guy you talked to last. Never do your emails
stay unresponded for more than 24 hours. Never do we give you a
reason to sweat. Say goodbye to sweat! Turn to Team Flexituff.
Decoding your needs, pre empting themThe wherewithal to service your requirements in every industry.
In today's market dynamics, brands seek to reach all corners of theworld while retaining geographical production advantages. This is
where FIBCs can help ensure gobally standardized quality, delivered in
local flavor. We believe the advantages of FIBC are here to stay and in
days to come customization will evolve itself to a very fine level.
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We provide bulk packaging, we are well placed to cater to such
customized requirements. Our integrated plant is uniquely poised to
address this process of customization. From the polypropylene pellets
used to extrude the yarn, to the bales of finished FIBC packed to
customer specifications, our across the board integration allows us tocustomize each individual stage of your requirement.Our rich and varied experience of developing bulk packaging solutions
for various industries have developed into a common capital for our
buyers. An asset, which can be tapped by our clients for developing
FIBC designs, for addressing material configurations and logistical
alternatives.
Our R&D initiatives have worked well for our clients. We continually
strive to optimize our products to render a more efficient service while
endeavoring to reduce costs, enhance quality and shorten delivery
schedules. The benefits of which, obviously, get passed to our buyers.
An endeavor which has helped reduce the cost of D Bag drastically.
Bulk transportation of explosive and static sensitive products can now
be extremely economical. These bags are tested on a complex matrix
of parameters to enable us to deliver an FIBC, which is completely
safe and secure.
"At any given time, Team Flexituff is travelling to be closer
to you. No distance is too large to not know your needs. We do realize
that opportunity dances with those on the dance floor."
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Market place and MARKET FOOTPRINTGERMANY; FRANCE; IRELAND; NETHERLANDS;
SPAIN; MEXICO; UNITED KINGDOM; BELGIUM;
ITALY; PORTUGAL; GREECE; BRAZIL; USA;
UAE; RUSSIA; KENYA; RWANDA; CHILE;
ERETRIA; CANADA; SWITZERLAND; AUSTRALIA;
ALGERIA; JAPAN; NEW ZEALAND; CHINA;
EGYPT; SINGAPORE; SWEDEN; ISRAEL; AUS
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Delivering to your exeptationThe expectations of response, confidentiality and post sales service.
At Flexituff, we aim to change your experience of procuring an
FIBC. A responsive and singularly customer oriented organization,
we aim to evolve into a one stop FIBC provider for our buyers.
Whatever be your need of bulk packaging, we would like to explore
the solution and service your need.
As a tailor made product, we understand the buyers' expectationsof evaluating multiple options before selecting the ideal one. Our in-
house Design and Development Centre is able to give you numerous
alternative design samples, with in your specified time frame.
The cofideltiality factor
We understand that most buyers and resellers would like to be assured
of the confidentiality of their product specifications, design and end
users. We consider our strategic partners members of our extended
family and pivots on which our volumes and global reach rests. As
corporate ethics, Flexituff is committed to maintaining this
confidentiality and would like to reassure our buyers in this context.
The reach factor
Flexituff employs the largest team of travelling professionals to be in
easy reach of our buyers. Our technically savvy, multilingual team can
promptly touch base with you in an emergency. All our front line
professionals are competent in English and language is never a barrier
when dealing with us.
The Print Accuracy Factor:
As a policy, Flexituff ensures 100% approval of print and labels before
production. The print section is equipped with a digital camera, where
all print production is photographed and emailed for approval before
commencement of commercial productions. A video conferencing set
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up is also being installed to address the need of live discussions.
The Post Sales Service Factor:
FIBC being a 100% customized product, bag approvals and
specification tweaking are routine hurdles in our endeavor for buyersatisfaction. Flexituff addresses these with a view to finding a
mutually acceptable solution. Any problem at our clients' end is
OURproblem and has to be resolved mutually and amicably.
Flexituff International Limited is one of the very few fully integrated
plants is the world. Its 100% integration permits us to deliver our
products in multiple options while retaining 100% control over the
manufacturing process. Needless to say, Flexituff is fully independent
from the vagaries of
Outsourced material or workmanship.
Last minute change in specifications, add on orders can be quickly
and comfortably accommodated at Flexituff. We are able to maintain
full traceability of material and workmanship in our Quality
Assurance system
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TOTAL QUALITY CONTROL
enhanced customization, last minute changes,
faster sampling and lower turn around delivery time are the winning
advantages of our vertical integration.
Microprocessor controlled extrusion ensure excellent input for thesubsequent operations.
Extrusion plants at Flexituff - the very life blood of the manufacturing
process, are state-of-the-art Starlinger. This ultimate extrusion
technology comes alive in the experienced hands of our workforce to
process over 60,000 kgs. of virgin polymer everyday. Producing
impeccable high tensile strength tapes with optimum elongation - a
pre requisite for perfect fabric. Precision winding being the key to
weave fine fabrics, all tapes are wound by new generation inverter
controlled winders to produce even bobbins. Quality checks begin
from the very initial stages of Tape-making. Every lot produced is
checked for its Denier, Strength, Elongation and Color.
If 3 layer co-extruded liner plant is a luxury, so be it. Our buyers
deserve this luxury. This over qualified plant ensures that we produce
liners with zero pinholes, fish eyes or any other extrusion flaw.
At Flexituff, microprocessor controlled Form-fit Liner Machine cuts,
seals and form-fits the liner in a dust-free clean room environment
conforming to ISO Level-7 (< 10,000 PPM). Be it Glued, Tabbed or
Flanged-in, well executed process eliminates liner twisting inside the
bag.
The vital facility of coating the essential prerequisite for making
FIBCs is a 2.4 meter wide coating plant laminating both circular and
flat fabric in thicknesses ranging from 15 to 80 microns. A unique
fabric cleaning device, designed and developed in-house, is mounted
on the coating machine to avoid any foreign particle going in-between
Fabric and the coating.
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As the foremost manufacturer of FIBC in the world, we are sensitive to
decoding customer needs. Our design and development team is
committed to evolving bulk packaging solutions for your specific
requirements. Infact, we try to preempt them..
Flawless weaving, off the floor stacking of stretch wrappedrolls and Unsurpassed 6 colour printing.
Fine and consistently even fabric is the face of
our FIBCs. Over 3 million square feet of high quality fabric is woven
everyday on an array of wide width Starlinger looms. Computerized
weaving machines with the help of skilled hands produce consistent
quality fabric. In the end what you have from this state-of-the-art
facility is an amazing collection of poly woven fabric, ranging 60 GSM
to 300 GSM ready to be turned into burly jumbo bags for stringent end
applications.
Flexituff's R&D initiatives are amply reflected in its ultrasonic slitting
and sealing technology which makes our fabric comparable to tuck in
fabric of a Sulzer loom.
Flexituff recognizes that for a critical food contact application, its not
enough to mere make a high quality fabric, the fabric also needs to be
contamination-free, carrying no foreign particle or even a speck of dirt.
To achieve this high level of fabric cleanliness, fabric is stretch-
wrapped on looms itself. Raising the bar on cleanliness, the stretch
sealed fabric rolls never touch the ground.
4 color printing a rare facility with others is pass at Flexituff. For,
we utilize a 6 color flexographic printing machine of a kind, which
makes the fabric come alive. This excellence finds it's match in the
fabric's evenness to create sharp, even, non-fading prints repeats
after repeats.
At Flexituff, we hardly believe that quality is what clients demand. Out
here, we believe, quality is what you live. And breathe. Quite simply,
the cost of making a quality product is seldom more than that of a sub
standard product. But its value, far higher.
.
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For consistency in quality and schedules, even the smallestauxillary is manufactured in-house.
Genuine quality, is a chain without a weak link.
Any FIBC, therefore, is as good as the quality of input that goes into
making it. Recognizing that even a small leak can sink a ship, Flexituff
rather chose to invest in establishing facilities for making every FIBC
input in-house. It has paid rich dividends in terms of customer
satisfaction.
Take for example high tenacity sewing yarn for FIBCs. Flexituff
commissioned state-of-the-art Fare multifilament plant which produces
7 GPD UV stabilized sewing thread in the deniers ranging 420 to
5200.also set up in-house is the facility of twisting the filament yarn
into sewing thread to required specifications.
Or take the all important webbing.
A battery of needle looms make 75 million metres of webbings
required to produce bags at Flexituff. In-house production not only
ensures required level of UV stability and the strength but also
customizing of webbing to colours and weaving required by the client.
The list is quite exhaustive. Be it filler-cord for sift proofing, Tie-tape,
rope and B-lock bag for closure, document pouch, identification labels,
printing stereosall inputs get made in-house.
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An intelligent, skilled and trained workforce assembles thecomponents into efficient bulk containers
The assembly section is planned for neat and
clean environment, smooth workflow and strict adherence to Clean
Room Specifications. The specially trained work force, qualified for
basic intelligence parameters and quality orientation works as a team
to deliver consistent product quality.
Full scale production for any bag starts only after the first prototype
bag has been certified by the QC in all respects, including Load Test.
Each and every bag is inspected for all critical and aesthetic
parameters.
To ensure contamination-free bag, every bag is cleaned on
pneumatically-operated cleaning machine where double action
blowers with alternating blowing and suction cycles eliminate the
smallest loose particles from the bag.
All food contact application bags essentially pass through a Metal
Detector unit eliminating any chance of metalno matter how light or
smallto slip in the bag.
TraceabilityFlexituff believes in acquiring wisdom from its mistakes. To that
effect, Flexituff has in place a complete traceability system to track
down the root cause of deviation, should they happen to occur. All
bags carry a unique code number, from which Flexituff can trace the
set of workers who made the bag, the date on which it was made up,
details and properties of fabric and all other components - going back
to the batch of raw material which was used for the extrusion.
This system allows for course-correction by identifying the root cause
of the problem and carrying out corrective measures to avoid
reoccurrence.
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U.V. Resistance testBulk bags are often subject to intense UV Rays for months at a time.The body fabric and the seams must survive this exposure without
weakening. FIBCs often undergo rapid degrading under the influence
of Sun Light, unless they have been stabilized in durable fashion. Sun
Light and Moisture causes millions of dollars of material damage every
year.
To ensure that Flexituff FIBCs would last outdoors without weakening,
every fabric and the yarn produced undergoes a U V Resistance test in
State of Art QUV accelerated weathering tester.Accelerated QUV tester reproduces the damage caused by sun light,
rain and dew. QUV tests material by exposing them to alternating
cycles of light and moisture at a controlled elevated temperatures.
QUV Resistance test conforms to EN1898 and ASTMG154.
Appreciating the need to be 100% right every time, as an abundant
precaution, Flexituff has instituted additional layer of quality audit.
Where a team of professionals randomly draw 10% bags for inspection
from duly baledready to go bags. Any minor deviation in the drawnsample leads to entire lot to go back for re-inspection and
segregation.
Packaging these packages is an art in itself at Flexituff. Each batch is
packed in compact cuboid bales which are duly stretch-wrapped and
marked for easy readability and stackability at clients place. The new
European and the U.S. Pallet Norms ISPM-15 are followed as every
individual pallet is treated and marked.
Load Test RigFirst bag for every order and also randomly selected bags from daily
lot get continually load tested on our 4 Load Cell Test Rig. Bags get
tested for 5, 6 or 8 times their Safe Working Load. This in-house test
facility is very vital to the confidence of our buyer as it eliminates any
possibility of an un-safe bag getting production.
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Flexituff manufactures one of the widest
range of FIBCs in the world. Whatever be your packaging and bulk
transportation requirement, you will find a suitable product in ourcomprehensive range. Moreover, with our in house Design &
Development Center, any packaging requirement can be aptly
developed, tested and offered as sample very quickly. Some of the
standard designs at Flexituff are as under:
High-end Bags for food and pharma industry
These bags are made with a high degree of precision. Precautions
have to be taken so as to avoid contamination of any kind from
entering the bag. These are normally laminated or lined bags made
in a clean environment. Their main application is in packaging of
food products, pharmaceutical products, special plastics for
manufacture of specialized electronic items such as compact discs,
circuit boards, etc.
Sift -proof Bags
These bags are needed for products which are powdery in nature
and are stitched in a special manner so as to block needle holes
thereby preventing sifting of powder from bags
Baffle Bags
These bags have baffle restraints stitched onto all corners of the
bag which prevent the bags from expanding beyond a point. Mainly
these bags are used where cargo has to be containerised or space
has to be saved.
Form-fitted Liner Bags
These are special FIBCs where the liner of the bag is also shaped in
the shape of a bag itself. These liners can be attached to bag by
various methods i.e. gluing, tabbing or sewing. The main purpose of
doing this is to avoid extra liners inside the bag and liner easily
forms the shape of the, bag rather than creating bulges in the bag.
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Builder Bag / Tunnel-lift
These are used specifically in construction and aggregate industry
and are used for filling sand, construction waste or aggregates.
They are simple FIBCs and are high volume usage bags owing to
nature of the industries that they are used in. A relatively recentdevelopment in this industry has created a tunnel-lift bag which
effectively can be used without a pallet and uses body fabric as a
lifting mechanism apart from 4-loops. By avoiding the use of pallets,
it saves cost to end-users as a package.
Single-loop Bags
These bags are normally made for fertilizer or cement packaging.
These bags are different in construction where body-fabric of bag
itself is formed into a lifting loop
Sling Bags
These are mainly used to carry 20 to 40 bags of 25 to 50 kg each.
Thus, it is an outer bag which enables easy carrying or mechanical
handling of small bags without using pallets
Flexituff manufactures one of the widest range of FIBCs in the
world. Whatever be your packaging and bulk transportation
requirement, you will find a suitable product in our comprehensive
range. Moreover, with our in house Design & Development Center,any packaging requirement can be aptly developed, tested and
offered as sample very quickly. Some of the standard designs at
Flexituff are as under:
High-end Bags for food and pharma industry
These bags are made with a high degree of precision. Precautions
have to be taken so as to avoid contamination of any kind from
entering the bag. These are normally laminated or lined bags made
in a clean environment. Their main application is in packaging offood products, pharmaceutical products, special plastics for
manufacture of specialized electronic items such as compact discs,
circuit boards, etc.
Sift -proof Bags
These bags are needed for products which are powdery in nature
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and are stitched in a special manner so as to block needle holes
thereby preventing sifting of powder from bags
Baffle Bags
These bags have baffle restraints stitched onto all corners of the
bag which prevent the bags from expanding beyond a point. Mainly
these bags are used where cargo has to be containerised or space
has to be saved.
Form-fitted Liner Bags
These are special FIBCs where the liner of the bag is also shaped in
the shape of a bag itself. These liners can be attached to bag by
various methods i.e. gluing, tabbing or sewing. The main purpose of
doing this is to avoid extra liners inside the bag and liner easily
forms the shape of the, bag rather than creating bulges in the bag.
Builder Bag / Tunnel-lift
These are used specifically in construction and aggregate industry
and are used for filling sand, construction waste or aggregates.
They are simple FIBCs and are high volume usage bags owing to
nature of the industries that they are used in. A relatively recent
development in this industry has created a tunnel-lift bag which
effectively can be used without a pallet and uses body fabric as a
lifting mechanism apart from 4-loops. By avoiding the use of pallets,it saves cost to end-users as a package.
Single-loop Bags
These bags are normally made for fertilizer or cement packaging.
These bags are different in construction where body-fabric of bag
itself is formed into a lifting loop
Sling Bags
These are mainly used to carry 20 to 40 bags of 25 to 50 kg each.
Thus, it is an outer bag which enables easy carrying or mechanical
handling of small bags without using pallets
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CONDUCTIVE TYPE-C BAGS:
These are special bags which allow static electricity to pass through
the bag when the bag is earthed. Fast filling and discharge of an FIBC
by a powdered material causes static electricity to accumulate inside
the bag. Further, to avert the dangers of explosion due to such
accumulation of static charge, conductive properties are created in
the bag and bag is earthed to allow safe discharge of electrical
charge.
DISSIPATIVE TYPE-D BAGS:
These bags are made by using a technology which allows static
electricity charge to dissipate in micro-volts without a bag being
earthed
Garden Waste Bags:
Your way to a better and cleaner environment... versatile garden
waste bags for County Councils, Collection Services, Farms and
Individual Residences:
Ideally suited for:
Grass cutting
Hedge trimming
Woody waste
Kitchen waste
Leaves & Shrubs
BOPP Printed Bags:
Be different! Do away with monotony and dullness of your bags. Style
them with our high quality 6 color magic printing.
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FIBCs? you name it!
As the foremost manufacturer of FIBCs in the world, we are sensitive to
decoding customer needs. Our Design and Development team, is committed
to evolving bulk packaging solutions for your specific requirement. In fact,
we try to pre empt them.
Flexituff is follow CSR
People FocusDreams are what drive us. We respect people and value their individual
differences and this has led to a free, vital corporate culture that
encourages creativity.
We are fortunate to have so many talented people with different
backgrounds, interests and skills who come together to create
offerings for the future.
Flexituff is a place where teamwork is essential. Yet our employees
also maintain the freedom to work on their own, be creative and make
their own decisions. And most of all, grow both personally and
professionally.
Equal Opportunity & Meritocracy:
Environment, Health and Safety:
Since its inception, the Flexituff core values of commitment to safety,
health and the environment, high ethical standards and respect for
people have been the cornerstone of who we are and what we stand
for.
Well communicated EHS policies ensure that production targets never
override the safety of a person and that as a responsible corporate, we
remain an environmentally responsible neighbor in the communities
where we operate, acting promptly and surely to correct incidents or
conditions that endanger health, safety or the environment.
Recruitment and promotions policy
Recruitment and promotions in Flexituff are all based strictly on merit.
Equal opportunities are provided to all without regard to race, caste,
religion, colour, ancestry, marital status, gender, age or nationality.
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The Company believes that people accept meritocracy as a just and
equitable system, and contribute best under optimum challenges and
opportunities & differential rewards commensurate with performance.
At Flexituff, our pursuit to achieve good governance is an ongoingprocess, thereby ensuring truth, transparency, accountability and
responsibility in all our dealings with our employees, shareholders,
consumers and communities. We aim to develop capabilities and
identify opportunities that best serve the goal of value generation,
thereby creating an outstanding organization.
Its all about flexi tuff which detail get by flexis
webside and also by companys internal and external sources........
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EXPORT DOCUMENT PROCEDURE
In India, ships transport more than 90 per cent of the cargo. It
therefore interesting to study the export processed by ship
documentation related to it.
Processing of an export order-----
i. Exporter operation starts with the receipt of enquiry by the
exporter from importer. Bar on the enquiry exporter submits his
offer giving complete details of products technical specific price
delivery payment terms etc.
ii. After the process negotiations importer sends a purchase orderfollow by letter of credit (if applicable).
iii. The exporter manufactures the goods according to the
specification given in purchase order.
iv. As soon as the goods are ready the exporters invites the
representative of Export inspections agency (EIA) for pre
shipment inspection and obtain the certificate of inspection.
v. After that, the exporter prepared following documents:----
PROFORMA INVOICE (5COPY)
PACKING LIST (5COPY)
SHIPING BILL (FULL SET 6COPY)
ARE1 FROM EXSICE DEPARTMENT
MARINE INSURANCE POLICY
COPY OF PURCHASE ORDER / L/Cvi. Above those documentation sends to CHA by exporter.
vii. Based on these documents CHA agent completes the octroi
formalities, obtain port permit and prepare shipping bill which is
a customs documents.
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viii. Custom department check the export cargo on the basis of
information provided on the shipping bill. If satisfy then cargo
allow to loaded on the board of ship.
The shipping line gives mate receipts to CHA agents after the payment
of ocean freights and port due obtains the bill of lading
i. (B/L) from shipping line .B/L is a proof of dispatch of cargo and also
a negotiable document.
ii. After that, CHA agent send various documents back to exporter
which is
Customs attested invoice
Copy of shipping bill
Full set of non board bill of lading.
Copy of purchase order or L/C
Copies of ARE1 Form
SDF form
iii. After that the exporter submitted above these documents for
negotiation to the bank which include :----
Commercial invoice (5COPY)
Packing list (5COPY)
SDF form
Original copy of purchases order
Certificate of origin
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Bill of exchange
Gurranty remmittence
Shipment advice
After that, bank scrutinizes these documents and if found correct
make payment to exporter against documentations.
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Export document detailed analaysisProforma invoice
the following details are pertinent to the setting up of the proforma
invoice and need careful attention:
A complete and clear description of the goods in question
The quantity of goods in question including the number and kinds
of packaging involved
The total price of the goods (and unit price where applicable)
The currency in which the goods will be sold (e.g. US dollars or
rands)
The likely delivery schedule and delivery terms
The physical addresses of both the exporter (referred to as theshipper) and importer (sometimes referred to as the consignee)
The payment methods, for example cash in advance or L/C
The payment terms, for example 30 days on sight
The Incoterm to be used
Who is responsible for the banking fees and other related costs
(insurance and freight costs are covered by the incoterm in
question)
The exporter's banking details
The country of origin of the goods The expected country of final destination
Any freight details such as the port of loading and discharge
Any trasshioment requirements
Any other information relevant to the order
Commercial invoice
After the pro-forma invoice is accepted, the exporter must prepare a
commercial invoice. The commercial invoice is required by both the
exporter (to obtain the necessary export documents to enable the
consignment to be exported, to prove ownership and to enable
payment) and importer (who requires the commercial invoice to
facilitate the import of the goods in question). In exporting, the
commercial invoice is considered a very important document as it
serves asthestarting document that underpins an export transaction.
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The commercial invoice is essentially a bill (i.e. invoice) from the
seller (the exporter) to the buyer (the importer) describing the goods
to be sold and the terms involved. The commercial invoice will
normally be presented on the exporter's letterhead and will be
addressed to the importer. It should contain full details of theconsignment, including price and other related costs, in order to
facilitate customs clearance. It must be signed and dated. Freight and
insurance, when included in the selling price, should be itemised
separately as these charges are not subject to duty in certain
countries. There is usually very little, if any, difference between the
final proforma invoice accepted by theimporter and the commercial
invoice, except that the one is titled "Proforma Invoice", while the
other is titled "Commercial Invoice".
The following details need to appear in the commercial invoice:
The name of the shipper/exporter and their contact details,
including physical address
The name of the importer/consignee and their contact details,
including physical address
An order number of reference to correspondence between the
supplier and importer
A complete and clear description of the goods in question
(including brandmarks and the HS number)
The packing details unless provided in a separate packing list
The quantity of goods in question including the number and kinds
of packaging involved
The external dimensions, cubic capacity, weight, numbers and
contents of each package shipped.
The total price of the goods (and unit price where applicable)
usually quotes as a CIF/FOB price
The currency in which the goods will be sold (e.g. US dollars or
rands)
The type and amount of discount given
The likely delivery schedule and delivery terms
The payment methods, for example cash in advance or L/C
The payment terms, for example 30 days on sight
The Incoterm to be used
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Who is responsible for the banking fees and other related costs
(insurance and freight costs are covered by the incoterm in
question)
What the freight and insurance charges are The exporter's banking details
A declaration of the country of origin of the goods
The expected country of final destination
Any freight details such as the port of loading and discharge
Any trasshipment requirements Any other information relevant to
the order
Packing list
When you prepare your goods for shipment, you will be required to
prepare a detailed export packing list. This is a formal document
that itemises quite a number of details about the cargo such as:
Your name and contact details
The importer's/consignee's/buyer's name, address and contact
details
The gross, tare and net weights of the cargo
The nature, quality and specifications of the product being
shipped
The type of package (such as pallet, box, crate, drum, carton,
etc.)
The measurements/dimensions of each package
The number of pallets/boxes/crates/drums, etc.
The contents of each pallet or box (or other container)
The package markings, if any, as well as shipper's and buyer's
reference numbers
It is also important that the details on the packing list (such asshipper's/importer's details, number of items involved, etc.), match
what is stipulated on the commercial invoice and bill of lading/airway
bill. You can imagine that if there is a mismatch between the packing
list and the other transport/export documents that this may lead to
closer scrutiny of the cargo and may ultimately result in delays in the
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cargo arriving at its destination! Note that pricing information is not
required on the packing list.
The purpose of the packing list
The packing list should be attached to the outside of a package in a
waterproof envelope or plastic sheath marked "Packing list enclosed".
The list is used by the shipper or forwarding agent to determine (1) the
total shipment weight and volume and (2) whether the correct cargo is
being shipped. In addition, customs officials (both local and foreign)
may use the list to check the cargo. Packing lists come in fairly
standard forms and can be obtained from your freight forwarder.
Don't make mistakes with the packing list
It is essential that the packing list agreeexactlywith all the terms and
conditions of the export sale. It is important for you to realise that any
mistake on the packing list may cause a delay in clearance at the port
of destination. Customs Authorities in the target country have the right
to delay the clearance of the shipment until the importer provides a
packing list reflecting the real contents of the container (should your
packing list be incomplete or incorrect). If all the information required
for the packing list is already stated in the commercial invoice, then
the packing list may be unnecessary. Our recommedndation is toprovide it anyway - you don't want the consigment delayed simply
becuase a customs official demands to see a packing list (you can
never provide too much information).
Letter of credit
Sight credits
This is an easy enough term to explain. A sight credit or
L/C is one which paid upon presentation of the requireddocumentation (as stipulated in the original L/C) to the
issuing or confirming bank. As exporter, you need to be
careful however, as some L/Cs state that payment will
only be made at a specified branch counter of the
issuing or confirming bank (and won't necessarily be
paid or transferred directly into your account). The
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process of having to go to a particular branch and
receive payment and then to transfer this payment into
your account will slow down the payment process and
may add further costs to the overall process. Thus,
when working with sight L/Cs (or any L/Cs for thatmatter) make sure where payment will be made.
Usance credits
An L/C can specify any credit period that you have
negotiated with the importer. A letter of credit that that
incorporates a payment after a given term (e.g. 60
days) is known as a usance credit (also referred to as a
term or acceptance credit). The correct phrase is hat
the L/C is at usance, meaning that it will come into
effect at some future date (also referred to as
maturity).
You should note that the maturity date may also have
further stipulations associated with it; for example:
90 days sight
120 days from Bill of Lading (B/L) date
60 days and upon issuing of a FDA (US Food andDrug Administration) clearance
Some of these provisos can have a significant impact
on your receiving payment and you should make
yourself fully aware of any such provisos to your L/C. A
usance/term credit will require you, as exporter, to
finance the gap between delivery and payment.
Transferable credits
An irrevocable L/C may also be transferable. In the case
of a transferable L/C, the exporter can transfer all or
part of his/her rights to another party. Transferable
letters of credit are often used when the exporter is the
importer's agent or a middleperson (i.e. export agent)
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between supplier and importer, and not the actual
supplier of merchandise. With a transferable letter of
credit, the exporter uses the credit standing of the
issuing bank and avoids having to borrow or use his
own funds to buy goods from a supplier. Hence, it is aviable pre-export financing vehicle. Before transfer can
be made, the exporter must contact, in writing, the
bank handling the disbursement of funds - the
transferring bank. Transferable L/Cs can only be
transferred based on the terms and conditions
specified in the original credit, with certain exceptions.
Therefore, it may be difficult to achieve flexibility and
confidentiality with this finance method.
The transferring bank, whether it has confirmed the
letter of credit or not, is only obligated to make the
transfer to the extent and in the manner expressly
specified in the L/C. Transferable L/Cs involve specific
risks. When a bank opens a transferable letter of credit
for a buyer, neither party can be certain of who will be
the ultimate supplier. Both parties must rely upon the
importer's assessment of the exporter's reputation and
ability to perform. To reduce overall risk and prevent
the shipment of substandard goods, an independent
certificate of inspection may be required in the
documentation.
For simplicity's sake, many banks prefer single transfer
and discourage multiple transfers, but will do multiple
transfers if conditions are right. Partial transfers can
also be made to one or several suppliers if the terms of
the original L/C allow for partial shipments. The
processing of this type of letter of credit can become
complicated and tricky, requiring logistics coordination
and the highest level of precision. Incomplete and/or
ambiguous information on the transferable letter of
credit almost always leads to problems. Furthermore,
the beneficiary of the transferable letter of credit must
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be available throughout the entire negotiation process
to assist the transferring bank.
Revolving credits
The term "revolving" is used to describe a letter of
credit, which, incorporates a condition whereby the
credit amount is to be renewed or reinstated
automatically without the need for a specific
amendments to the credit. This type of credit is used
when regular trade is conducted between an exporter
and an overseas buyer. A revolving credit can be
irrevocable or confirmed. Although a credit may, in
theory, revolve in relation to amount, in practice this is
rare, as it would mean that there might be no limit to
the number of times a specific amount could be drawn.
A credit, which revolves in relation to time, is a much
more common form of a revolving credit. For example, a
revolving credit could be made available for an amount
of US$ 10 000 per month (irrespective of whether any
sum was drawn during the previous month) with an
overall validity of six months. A revolving credit may
be:
Cumulative, i.e. any sum not utilised during the
first period is carried over and may be utilised in
the subsequent period.
Non-cumulative i.e. any sum not utilised during
the first period ceases to be available in
subsequent periods.
Back-to-back credits
Back-to-back L/Cs are another common occurrence in
the world of international trade. When an exporter, who
is not a manufacturer, but obtains goods from a
supplier by acting as an export agent for the supplier
for example, has received an L/C from an importer, the
exporter, in turn, may request his bank to open a L/C in
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favour of his supplier on the strength of the existing
L/C. These two credits are said to be "back-to-back",
that is to say the one is issued on the security of the
other. A bank will only consider opening a second
credit if the same goods are involved in both credits. Interms of the back-to-back L/C, the exporter is both the
beneficiary/exporter of the first credit and the
applicant/buyer for the second credit.
Standby credits
A standby L/C is one which is issued in favour of the
exporter for the purpose of "backing-up" certain
specified obligations of the importer. A standby letter
of credit requires the exporter's presentation of
documents which indicate that importer has not met
the obligations which the standby letter of credit
backs-up. A standby letter of credit, therefore, is not
intended to be drawn upon by the standby letter of
credit beneficiary unless the standby letter of credit
applicant does not meet its obligations as specified by
the standby letter of credit.
Certificates of origin
A Certificate of Origin (C/O) is required by some countries and is
intended to certify to the importing authorities as to which country the
products being imported were manufactured in - that is, the C/O
certifies that the imported product meets the 'Country of Origin'
requirements set by the importing country and which are expected of
their foreign suppliers. It may be required that the C/O includeinformation such as local material and labour content. In many cases,
a statement of origin printed on company letterhead will suffice,
although the document may need to be certified in some way. In other
instances, specific types of C/Os may be required, such as the
Generalised System of Preferences (GSP) Form A and the Chamber of
Commerce C/O.
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Certificates of Value (and Origin)
A Certificate of Value is intended to confirm the value of a cargo to
assist in quick clearing of the goods in the country of destination.
Often the Certificate of value is combined with a Certificate of Origin
and is referred to as a Certificate of Value and Origin (CVO). A CVO
outlines details about the labour and packing costs, royalties or
commissions (if applicable), freight charges and any overseas
insurance costs. The CVO also provides an exporter's declaration and
statement, in the form of clauses, about the value and origin of the
goods.
Fumigation certificate
Some countries, such as Australia, Canada, New Zealand, the US and
the UK, are very strict about letting in goods that might contain
bacteria or insects that could harm their agriculture. For this reason,
they may require a fumigation certificate - also referred to as a 'pest
control certificate - as proof that the packing materials e.g. wooden
crates, wood, wool etc., have been fumigated or sterilised. Fumigation
certificates usually contain details such as purpose of treatment, the
articles in question, temperature range used, chemicals and
concentration used, etc. Sometimes they may be required for sea
shipments, but not for air shipments. Your freight forwarder should be
able to advise you as to whether you require such as certificate.
Bill of landing
A BOL is one of the oldest and most common forms of transportation
documents in use today. It is a document that establishes the terms of
a contract between a shipping company (or its agent) and the
exporter/shipper (or agent, such as a freight forwarder). Within this
contract, it is agreed that freight is to be moved between specifiedpoints for a specified charge.TransporThe BOL is normally completedby the exporter on forms issued by the shipping carrier. The BOL
serves as a document of title, a contract of carriage, and a receipt for
goods. The BOL also describes the kind and quantity of goods being
shipped (such as the number of packages, the weight and
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consignment dimensions), the shipper (or exporter), the consignee (the
person or firm to whom the goods are being shipped), the ports of
loading and discharge, and the carrying vessel.
Key points of BOLs
The key points that you should take note of, are:
The BOL is a legal contract between the shipper (normally the
exporter) and carrier (the shipping line represented by the ships
master or shipping line representative)
As a legal document, the BOL plays an important role in releasing
payment from the bank in conjunction with the Letter of Credit
A BOL is a document issued by a carrier, e.g. a ship's master or
by the carriers shipping department, or a representative of either
of these two
The BOL must be signed or authenticated by the person issuing
the document
The BOL must name the ship/vessel carrying the goods
The BOL does not afford the holder of the document any
ownership of the goods listed in the document (it is not a
negotiable document)
The BOL acknowledges that specified goods have been received
on board as cargo for conveyance
The BOL specifies both the ports of loading and discharge
The BOL normally has a named consignee
The BOL will specify the goods to be conveyed, their number,
weight and volume
BOLs are usually issued in three originals; one for the
exporter/shipper, one for the shipping line and one for
receiver/consignee of the goods.
An ocean bill of lading is the traditional BOL used wihen shippinggoods with shipping lines. The ocean (also referred to as a marine)
BOL is a document that outlines the terms between an
exporter/shipper and the international ocean or marine carrier (i.e.
shipping line) for the shipment of goods to a foreign location
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overseas. The description of a BOL that was provided earlier in this
section pertains mainly to an ocean BOL.
A through BOL is a contract that covers the specific terms agreed
to by an exporter/shipper and carrier. This document covers the
domesticandinternational transportation of export merchandise. It
provides the details of the agreed upon transportation between
specific locations (usually the exporters premises and the
exporters customers premises in a foreign destination) for a set
monetary amount.
An air waybill is a BOL that establishes terms of flights for the
transportation of goods both domestically and internationally. This
document also serves as a receipt for the exporter, proving the
carrier's acceptance of the exporters goods and agreement to
carry those goods to a specific airport. Essentially, an air waybill is
a type of through bill of lading waybills. This is because air waybills
may cover both international and domestic transportation of goods.
By contrast, ocean shipments require both inland and ocean bills of
lading. Inland bills of lading are necessary for the domestic
transportation of goods and ocean bills of lading are necessary for
the international carriage of goods. Therefore, through bills of
lading may not be used for ocean shipments.
Inland and ocean BOL may be negotiable or non-negotiable. If the
BOL is non-negotiable, the transportation carrier is required to
provide delivery only to the consignee named in the document. If
the bill of lading is negotiable, the person with ownership of the bill
of lading has the right of ownership of the goods and the right to re-
route the shipment
Straight bill of lading
This bill states that the goods are consigned to a specified person and
it is not negotiable free from existing equities, i.e. any endorsee
acquires no better rights than those held by the endorsor. So, for
example, if the carrier or another holds a lien over the goods as
security for unpaid debts, the endorsee is bound by the lien although,
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if the endorsor wrongfully failed to disclose the charge, the endorsee
will have a right to claim damages for failing to transfer an
unencumbered title. Also known as a non-negotiable BOL.
Order bill of lading
This bill uses express words to make the bill negotiable, e.g. it states
that delivery is to be made to the further order of the consignee using
words such as "delivery to Company Name Ltd. or to order or assigns".
Consequently, it can be endorsed by Company Name Ltd. or the right
to take delivery can be transferred by physical delivery of the bill
accompanied by adequate evidence of Company Name Ltd.'s intention
to transfer. Also known as a negotiable bill of lading.
Transshipment clauses
If a BOL incorporates a clause stating that the carrier reserves the
right to tranship, then the transhipment is allowed even if an
accompanying Letter of Credit (L/C) prohibits transhipment.
Loading on deck
Unless otherwise required by the Letter of Credit (L/C), the BOL should
not indicate that the goods are to be stored on deck. Modern container
ships carry about one-third of the containers on deck. Consequently,
the BOL may contain a provision that the goods may be carried on
deck. If such a provision is contained in the BOL, then the loading on
deck is acceptable even if the Letter of Credit (L/C) stipulates
otherwise, provided that the BOL does not specifically state that the
goods are or to be stored on deck.
AIR WAY BILL
Air waybills (AWB) are a form of BOL and are used for both domestic
and international flights. An AWB (also referred to as air consignment
note or airway bill of lading) refers to a documentary receipt issued by
a carrier (i.e. airline) in favour of a shipper for goods received and is
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evidence of the contract of carriage to carry the goods to a specified
airport under specified conditions, but it is not a document of title to
the goods. Hence, the AWB is non-negotiable. It is usually the shipper -
the exporter - (or their agent) that completes the AWB. It serves as:
Proof of receipt of the goods for shipment
Evidence of the contract of carriage
An invoice for the freight, reflecting the shipper, the consignee
and the goods being shipped, as well as the full freight amount
A certificate of insurance (if carriers insurance is requested by
the shipper)
A guide to airline staff for the handling, dispatch and delivery of
the consignment
A means of clearing the goods through customs
Usually, the AWB consists of three originals and nine copies. The first
original is intended for the carrier (airline) and is signed by the
exporter (or agent); the second originalthe consignee's copyis also
signed by the exporter (or agent) and accompanies the goods; the
third original is signed by the carrier and is handed to the exporter (or
agent) as a receipt for the goods after they have been accepted for
carriage.
The AWB must be accompanied by the commercial invoice, packing
list, certificate of orgigin and any other document which may be
necessary to clear the goods through customs (such as any health
certificates, etc.). AWBs have tracking numbers which can be used to
check the status of delivery and current position of the goods being
trasnported.
Marine insurance
Because of the enormous risks involved ininternational trade, it has become a core part of
the international trading process for the parties
involved to insure their respective risks. One of
the major risks that international traders
(exporters and importers) face is the risk of
damage or loss during the trasnportation process.
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This is where marine insurance comes into play.
'Marine insurance' is thus the term used to
described the insurance taken out to cover the
risks involved in all forms of transportation, for
example, sea, road, rail and air, from the pointwhere the goods are loaded onto their first form
of transport until they arrive at their final
destination.
Why bother with marine insurance?
As there are many risks involved in the
transportation cargo internationally, traders want
to minimise these risks. A loss of goods to a
buyer (or seller - depending who has contractual
ownership of the goods at the time of the
damage/loss) could mean:
Loss of business
Loss of money
Loss of goodwill
Delays in utilisation of the goods
Expensive repairs
Penalties for late delivery
Any of these factors could put a small firm out of
business and can even cause larger firms serious
financial difficulties. The sensible trader will
make certain that he or she has taken out
suitable insurance cover, covering the correct
value and risks thereby ensuring that all aspects
of marine insurance have been suitably
addressed.
It is a contract of indemnity
The marine insurance contract is a contract of
indemnity. The insurer (the marine insurance
company), undertakes to indemnify the assured
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(the policy holder) against financial loss or
expenses incurred resulting from any of the risks
and hazards which are defined in the policy
document. The insurer will define his liability in
such a manner that he does not becomeresponsible for loss or damage resulting from any
misconduct of the assured. The assured must
therefore take reasonable steps to protect the
goods/cargo from any potential hazards by
ensuring that the cargo/goods are packed,
labelled and stored correctly.
The insurer will also limit his liability by excluding
losses which arise inevitably from the nature of
the goods, such as evaporation or natural
deterioration. The insurer therefore indemnifies
the assured against fortuitous loss (dropping,
crushing, breaking, rusting etc of the goods
themselves), accidents and disasters, together
with the loss of damage which may arise from
causes over which the assured can exercise no
control, such as war, riots, strikes and civil
commotions.
Categories of risk to cover
There are several different categories of risk
thatr you can consider cvovering. These are
1. Catastrophe risk - These relate to events
which can occur to the carrying ship,
aircraft or other conveyance in which the
goods are loaded, or to the location in whichthe goods are temporarily housed in the
normal course of transportation. These are:
Sinking, stranding, collision, or
catching fire of the carrying ship
Overturning or collision of a carrying
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vehicle
Fire or flooding of a transit warehouse
2. Accidental or fortuitous risks - These are
risks which are more commonly the cause
of claims and relate to events which affectthe goods themselves rather than the
conveyance in which they move. These are
the risks which account for the greater part
of the premium rate. These are:
Dropping
Crushing
Impacting
Twisting and bending
Breaking Burning
Rusting
Contamination
Scuffing, scratching, bruising, denting
etc.
3. Other risks - There are risks which are not
accidental or fortuitous but are outside of
the control of the cargo owner and include:
Theft and pilferage Non-delivery
Losses due to piracy
Malicious damage
4. War and associated risks - These include
war, strikes, civil commotion and terrorism
and we discuss them separately. Click here.
Certain types of goods are especially prone to
damage from these risks and they may in respect
of such goods, involve a substantial portion of the
premium rate. All these categories of risk are
taken into account when the insurer is
calculating the rate for the premium. The
insurance company would be prepared to offer a
reduction on the premium amount if the company
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in question is moving large volumes of cargo
globally. Under these circumstances the
insurance company would offer a discount for
greater volumes moved.
Factors to consider in taking out marine cover
In taking out marine insurance, there are several
factors that the assured must take into
consideration. These include:
The principle of 'utmost good faith'
The categories of risk to be insured
The principles of insurable interest and
insurable value
Insuring against the risks of war, strikes,
riots and civil commotion
The duration of an insurance policy
The principle of general average
Types of marine insurance cover
The premium
There are three main contracts these are:
The contract of sale; between the seller and
the buyer
The contract of carriage; between the
carrier and the shipper
The contract of marine insurance: between
the insurer and the assured
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While each of the contracts are independent of
each other they cannot be detached because they
complement each other and look after the
interests of both the seller and the buyer. When
concluding these contracts the following aspects
must be given attention, these are:
The nature of the journey
The means of conveyance that will carry the
goods to their final destination
The goods/cargo being sold
Marine insurance policies attach to the goods
from the moment they are loaded into a form of
conveyance (truck, container (6 or 12 metre),
aircraft, rail truck or vessel), until they arrive at
their final destination. This type of marine policy
is commonly called .
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ELEMENT OF EXPORT INVOICE:-
Exporter
Consignee
Invoice No. and Date
Exporter Ref.
Buyer order no and date
Other reference
Buyer (other than consignee)
Country of origin of goods
Country of final destination
Terms of delivery and Payment
Pre-carriage by
Place of receipt by pre-carrier
Vessel/ Flight no.
Port of loading
Port of discharge
Final Destination
Marks and Nos. / No & Kind of pkgs.
Item code
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Description of goods
Net weight
Gross weight
Quantity
Rate CIF EURO
Amount CIF EURO
Amount in words
Declaration:
Authorised signature
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Air freight calculation
Introduction
Airlines that are members of theInternational Air Transport
Association(IATA) are bound by their membership to comply with
tariffs issued by IATA. However since 11th September 2002, airfreight
rates are now extremely negotiable. Airfreight rates cover
transportation from the airport of loading to the airport of discharge.
These rates do not include the following:
Collection of air cargo from the consignor's/exporters premises
Delivery of cargo from the airport of destination to the
consignee's premises
Storage of cargo before or after loading
Customs clearance in the country of destination
Any duties and taxes that may have to be paid
Insurance
Chargeable/volumetric weight
Airline freight rates are based on a "chargeable weight", because the
volume or weight that can be loaded into an aircraft is limited. Thechargeable weight of a shipment will be either the "actual gross mass"
or the "volumetric weight", whichever is the highest. The chargeable
weight is calculated as follows: 1 metric ton = 6 cubic metres. In order
to establish if the cargo will be a weight or volumetric based
shipment.
Step 1
Measure the parcel/cargo along the greatest length, width and height
of that parcel. For example; 100 cm (L) X 100 cm (W) X 100 cm (H) = 1
000 000 cm3. Next, weigh the parcel; assume it weighs 150kg.
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Step 2
Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You have now
converted the centimeters (cm) into kilograms (kg)
Step 3
Now compare the weight to the volume. If the weight is 150 kg then
the airline would base the freight on the higher amount being: 166,66
kg
Air freight calculations
The airline calculates freight based on weight or volume, which ever
yields the greatest amount. Airlines quote freight rates based on thefollowing rate structures:
A basic minimum charge per shipment.
General cargo rates quoted for per kilogram. This rate applies
without reference to the nature or description of the parcel,
which is to be freighted.
Specific commodity rates apply to certain goods of specific
descriptions, such as fresh produce. These rates are lower than
the general cargo rate, and they provide breakpoints at whichthe level of the rate reduces further.
Example:
0 - 50 Kg @ R22.00/per kg
50 - 100 Kg @ R19.00 per kg
100 - 150 Kg @ R17.00 per kg
Unit Load Device charges
These rates are charged per container/ULD without reference to thecommodity loaded therein. Calculation of freight rates:
Let us assume the following figures:
The freight rate is R18.00 per kg
The weight of the parcel is 300 kg
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The dimensions are: 114,6 cm X 120,4cm X 132,5 cm (round the cm's
up or down)
Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6 000 = 305.9
kg (having converted cm's to kg's now round up the kg's to the next
half a kilogram = 306 kg.
As the freight rate quoted by the airline is R18.00 per kg, we calculate
the price as follows:
306 kg X R18/kg = R5 508.00
The freight rate will not be calculated on the actual mass 300 kg X
R18.00 = R5 400.00 as the airline will always use the greater amount
either the kg, or volumetric weight.
Consolidation
Consolidation is an economical method of moving cargo by employing
a consolidator. The consolidator receives cargo from a number of
suppliers/shippers and then combines these cargoes into one
consignment by packing the goods into a Unit Load Device. The
consolidator then books the Unit Load Device with an airline. The
supplier/shipper would have a contract of carriage with theconsolidator of the cargo and in turn the airline would have a contract
of carriage with the consolidator. The airline would issue an air waybill
to the consolidator when accepting the Unit Load Device and in turn
the consolidator would issue the supplier/shipper with a house air
waybill.
The air waybill
The air waybill, unlike the ocean bill of lading is not a document of
title to the goods described therein, however it does perform several
similar functions these are:
It is a receipt for the goods
It is evidence of the contract of carriage between the exporter
and the carrier
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It incorporates full details of the consignor/shipper, the
consignee/receiver and the consignment/goods
It is an invoice showing the full freight amount
It must be produced, be it in an electronic format, at the airport
of discharge for clearing purposes
All copies of the air waybill, together with the commercial invoice,
packing list, certificate of origin and any other document which may
be necessary for clearing the goods through customs, these
documents are carried in the flight captain's bag.
Sea freightcalculations
Introduction
Seafreight calculations can broadly be divided into two main
components; breakbulk and containerised. In this section we deal with
how you should calculate the freight costs of both of these two types
of seafreight.
Break bulk cargo calculations
Break bulk cargo, is cargo that is unitised, palletised or strapped. This
cargo is measured along the greatest length, width and height of the
entire shipment. The cargo is also weighed. Shipping lines quote break
bulk cargo per "freight ton", which is either 1 metric ton or 1 cubic
metre, which ever yields the greatest revenue.
Example:
A case has a gross mass of 2 Mt.
The dimensions of the cargo are:2.5 X 1 X 2 metres
The tariff rate quoted by the shipping line is: USD 110.00 weight or
measure (freight ton)
Step 1
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"Bunkers" is the generic name given to fuels and lubricants that
provide energy to power ships. The cost of bunker oil fluctuates
continually and with comparatively little warning.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
US Dollar 1 250.00 X 5.2% = US Dollar 65.00
Add the two amounts together
Freight rate: U S Dollar 1 315.00
Currency Adjustment Factor (CAF)
The currency adjustment factor is a mechanism for taking into
account fluctuations in exchange rates, these fluctuations occur when
expenses are paid in one currency and monies earned in another by a
shipping company. The currency adjustment factor is a mechanism for
taking into account these exchange rate fluctuations. It is always
expressed as a percentage of the basic freight and is subject to
regular review.
Example:
Freight rate: Port Elizabeth to SingaporeFreight rate: US Dollar: 1 250.00 per 6-M container
+ CAF 6.3%
US Dollar 1 250.00 X 6.3% = US Dollar 78.75
Add the two amounts together
Freight rate: U S Dollar 1 328.75
War Surcharge
The outbreak of hostilities between nations can have a serious effectupon carriers servicing international trade even though they may sail
under a neutral flag. Carriers sailing within the vicinity of a war zone
may impose a war surcharge on freight to compensate for the higher
risks involved and the higher levels of insurance premium, which they
may be obliged to pay.
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Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ WAR 5%
US Dollar 1 250.00 X 5% = US Dollar 62.50Add the two amounts together
Freight rate: U S Dollar 1 35.50
All of the above surcharges may be applied to a single freight rate.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
+ CAF 6.3%
+ WAR 5%
Total amount of surcharge 16.5%
US Dollar 1 250.00 X 16.5% = US Dollar 206.25
(add to freight rate)
US Dollar 1 456.25
Port Congestion Surcharge
Congestion in a port for a period of time can involve considerable idletime for vessels serving that port. When a ship lies idle, this creates a
huge amount of loss for the ship's owner. Shipping lines therefore have
the right to impose a surcharge on the freight to recover revenue lost.
Another factor which influences port congestion surcharge would be
labour disputes. Port congestion surcharges are calculated as a
percentage of the freight rate as expressed in the previous examples.
Consolidation services
The consolidator or groupage operator hires a container from a
shipping line and then sells that space to his clients/exporters. The
benefit for the exporter is that small quantities which, would not fill a
full container load, can be shipped by sea freight in a shipping
container as an alternative to air freighting the goods. The
consolidator would charge per metric ton or cubic metre, which ever
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yields the greatest. Example: US Dollar 89.00 Weight or Measure. The
shipping line would have a contract of carriage with the consolidator
and in turn the consolidator would have a contract of carriage with the
exporter. The consolidator would be issued with an combined through
bill of lading from the shipping line and then present the exporter witha house bill of lading (See bill of lading below)
The bill of lading
The bill of lading performs the following functions:
A contract of carriage between the shipper of the cargo and the
carrying shipping company.
The name of the shipper and the receiver of the goods the
consignee.
The contents of the packages as declared by the shipper.
Shipping details such as: port of loading and the port of
discharge.
The bill of lading is a freight invoice and indicates if the freight
costs have been prepaid by the exporter or will be paid by the
importer, "freight collect".
The bill of lading states the number of packages, weight and
dimension of the shipment.
It is a document of title to the goods stated thereon.
Every original bill of lading signed by or on behalf of the shipping
company is a document of title to the underlying goods. This special
function of a bill of lading is achieved by a form of words which state:
"In witness whereof the undersigned on behalf of the shipping
company has signed three bills of lading all of this tenor and date, one
of which being accomplished the others to stand void".
"Accomplishing" the bill of lading requires the surrender to the
shipping line or its agents in the port or place of destination one of thesigned original bills of lading duly endorsed by the consignee/importer.
Unless and until one of the original bills of lading as described above
is surrendered, the shipping line will not release the cargo to the
consignee/importer. Upon surrender of any one of the originals the
other originals bills of lading become void.
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Endorsed Bills of Lading
Bills of lading can only be issued with the words "shipped on board", if
the cargo has actually been loaded onto the named vessel at the port
of loading. By insisting that the exporter supplies the importer with a
"shipped on board" bill of lading, the importer obtains conclusive
evidence that the goods have been loaded on board the intended
vessel.
Some importers insist that the exporter presents "shipped on board"
bills as a condition for payment. "Received for shipment", bills of
lading can be issued as soon as the goods have been delivered into
the custody of the carrying shipping company or its agent either at the
point of receipt or at the port of loading. Thus, a 'received for
shipment", bill of lading will only indicate the ship in which the cargo
is intended to be loaded on. The risk remains that the loading may, for
many reasons delayed or the cargo may not be loaded at all.
Banks responsible for the payment of funds in payment for goods
under letters of credit will not release the funds if the bill of lading has
been endorsed "received for shipment".
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BIBLIOGRAPHYExport Import Documentation - Prof. D.C. paiLogistics in International Business - Prof. Rajeev Aserkar
REFERENCES INTERNETwww.committedgroup.com www.google.co.inwww.ask.comwww.exit.net
:http://www.exporthelp.co.za/modules/17_documentation/marine_insurance/intro.html#ixzz1Za841
www.flexituffinternational.comwww. Export document process .com
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