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AT

ynamic Logistics Pvt. Ltd.

In Partial Fulfillment For

PGDIT

INSTITUTE OF MANAGEMENT DEVELOPMENT AND

RESEARCH

SUBMITTED BY

DEEPAK MUNDADA

PGDIT-II (2009-11)

Roll No. 12

ACKNOWLEDGEMENT

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Internship Report IMDR,

Pune

I express my sincere gratitude to the following people without whom this internship would have

not been possible. I would like to thank Mr. Raiza Ahmed, !" operations, "#$# for giving me

a chance to work with "ynamic #ogistics .I am also grateful to Mr. %antosh &iri, Mr. %ikandar

'adaf, Mr. (alinder )hite, my mentor Mr. %andeep Mhaske, whose cooperation and guidance

helped in successful completion of my internship .I also thank all the staff, *A+s working with

"ynamic logistics.

I would like to thank all the employees of "ynamic #ogistics who help me to understand and

euipping me with the tools reuired for an individual to work in this Industry. )hus working in

I*" was a worth mentioning experience. I am thankful to them for a considerable value addition

to my knowledge related to international trade .I would specially like to thank Mr. $aritosh

&ombi, of -M #ines, for his advice and guidance towards '/!** operations and cooperation

intended to me in successful completion of the internship.

Also I would like to express my sincere gratitude to Mr. A0ay 'agre, -x1director of IM"R,

Mrs. /ipra )iwari, and Mr. Manish Mishra for giving me a chance to undergo this kind of

experience and without whose support

"eepak Mundada

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INDEX

OBJECTIVE OF THE SUMMER INTERNSHIP

)he main ob0ective behind this summer internship programme is to make oneself aware about

the Import 1 -xport procedures and also the documentation reuired for the same. In the

meanwhile to learn the working of I*" "ighi.


Sr. No Contents P!e no

" O#$e%t&'e (

) E*e%+t&'e s+,,r-

/ W0t &s n ICD 1

( Co,2n- 2ro3&4e 567

I,2ortnt ent&t&es &n &nternt&on4 tr8e n8 t0e&r 3+n%t&ons 96"1

1 I,2ortnt 8o%+,ents n8 ot0er ter,&no4o!&es "56)"

5 Gener4 e*2ort 2ro%e8+re n8 8o%+,ents ))6)7

7 E*2ort 2ro%e8+re 3o44o:e8 t ICD )96/(

9 I,2ort 2ro%e8+re 3o44o:e8 t ICD /6/1

"; I,2ort 8+t&es n8 8o%+,ents /16/9

"" B&o!r20- (;

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Also to thoroughly understand the operations in the field of Import and -xport and to understand

the complex working procedures of the customs department and how the custom clearance does

takes place.

2orking here in "ynamic logistics has also helped me experiencing a total logistics organization.

EXECUTIVE SUMMAR.%oon the company became a pioneer in the field of #ogistics and %upply *hain

Management. 7urther the company has I%! :

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LOCATION

)he company is located at "ighi in $une .Its well connected with air and road. )he gateway port

is Mumbai located 9>< kms.

FACILITIES

It has all the operating facilities, a container yard, Import warehouse, bonded warehouse, -xport

warehouse.

Also have the various euipments reuired for loading and unloading of the containers and also

the forklifts for handling of the cargo. A cargo scanner installed by the customs is also present in

the import warehouse

Administration facilities include the customs office headed by the deputy *ommissioner,

%hipping line offices, '/!** offices, and *A+s, freight forwarders and surveyors.

!ther facilities include a latest communication centre with all the facilities like phone, fax, and

internet photocopy etc.

)he premise is well protected with high scale compound walls and round the clock security. )he

organization also houses a full fledged software centre and has its own warehouse managementsystem with a full track and trace management systems.

SOME IMPORTANT ENTITIES INVOLVED IN THE BUSINESS

OF INTERNATIONAL TRADE

CUSTOM HOUSE AGENT?S

)he imports into India and -xport out of India take place only through ports and airports

declared under %ection B of the *ustom Act. )he international trade has therefore necessarily

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developed and concentrated at such ports and airports like Mumbai, *hennai, *alcutta, "elhi,

*ochin, Candla, /ishakhapattanam, and )uticorin.

)rade, no doubt is also through minor ports all among the coast. )he importers who consume the

goods imported and exporters who produce the goods for export however are spread all over the

country. )he distance between the point of importDexport and the exportersDimporters happens to

be uite long and the time1involved clearance deters the trade for handling the clearance

themselves. )hey have to necessarily depend on agents positioning themselves at such ports and

are specialized in such 0obs. In fact such institutions have been in existence almost from the

beginning of the trade.

*ustoms ouse Agent @CHAis a person who is licensed to act as an agent for transaction of any

business relating to the entry or departure of conveyances or the import or export of goods at any

*ustoms station. nlike the work related to *entral -xcise and Income )ax, the customs

facilities cannot be attended to leisurely, as clearance is allowed only on completion of

formalities and payment of duty, where due. )o meet this situation alone this provision for

licensing *ustom ouse Agents to represent importerDexporter for clearance work has been made

in the *ustom Act 4under sec. 9;E5

A *ustom ouse Agent has to be not only knowledgeable in *ustoms #aws, procedure and

documentation, but also alert all the time, closely following the instructions or changes brought

about by issue of $ublic 'otices from time to time. e is in a very peculiar position that though

he is employed by importers Dexporters, he is licensed by the *ustoms dept. )he *ustoms ouse

Agent is answerable both to the *ustoms dept. for doing the clearance correctly and

expeditiously. In case he defaults, the clearance may be delayed and demurrage etc. incurred. is

knowledge and experience particularly in the areas of classification and valuation of goods and

more so in procedural formalities to be compiled with, in *ustom big role to play in the

clearance of goods through customs.

ROLE OF C.H.A=6

A role of C.H.Astarts81

o 2hen an exporter or

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o An importer asks him to work for him.

o A C+sto, Ho+se A!entfirm prepares81

o 3ill of entry or

o %hipping 3ill

o As per the reuirement of the customers, for these services the customer provides them

with all the reuired documents like

o Invoice,

o $acking list and other relevant documents.

A *..A firm should try to prepare documents on time to get goods delivered. )he *..A

collects these documents from the customer and according to that they prepare shipping bills or

bill of entry. After preparing the documents some time they collect the goods from the exporter

and with the documents they go to I*" or at the $!R) of "I%*AR&- and get the goods

custom cleared. If an exporter or an importer has some special reuirement like if they want their

goods to be exported under special schemes then they prepare documents according to that and

vice versa for an importer.

)hey collect

services charges

services tax

custom charges and

!ther charges from the customer.

MANAGEMENT AT C.H.A

FILING=

7iling is an important process of any *..A company. )hey have to maintain several files as that

helps them to know how much business they have done in a financial year so they can know their

condition at the end of a year.

)hey have to prepare separate files for both imports and exports, this also helps them to know the

profits they have made in a year and expenses incurred by them in a year.

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)hese files contain all the documents given to *..A *ompany by an importer or an exporter. %o

these files contain all these documents, services charges taken by a *..A for clearing of goods

from the customs.

FREIGHT FORWARDER

7reight 7orwarding is a vital part of international trade. )he company will face many difficulties

if it does not take into account how the goods will be delivered to the market.

)he issue of freight forwarding must be considered at an early stage of the development of the

export marketing plan as it raises several concerns that need to be addressed uickly. 'ot only

does the exporter need to understand which I'*!)-RM% to stipulate and work to, but the

method of transport also needs to be considered 4road, rail, sea, air5. $ackaging is also another

factor that needs to be considered, as is insurance. Much of the hassle can be taken out of the

exporter+s hands by using an effective freight forwarder, but as with any supplier care needs to be

taken to ensure that the supplier meets the needs of the organisation.

A freight forwarder is an agent who handles export shipments for a fee. ence, freight forwarder

plays a very important role for exporters. ere are few of the many activities that you will

conduct as a freight forwarder8

International documentation and packaging

*arrier and routing information

-xport license assistance

Marine insurance rates and coverage

2arehouse and distribution services

azardous materials shipping compliance information

ROLE OF A FREIGHT FORWARDER=6

)he 7reight 7orwarder plays a very important role. e is the entity who on behalf of the %hipper

does all procedural 6 documentation formalities involved to get the goods *ustom *leared.

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)hey also look after warehousing 6 carting of cargo before shipment of export consignments 6

after a discharge of import cargoes, by sea carriers. )here is a important aspect of their work1

consolidation of shipments.

)he role of a 7reight 7orwarder is as 7ollows81

%election of routes

"etermination of shipping documents

"elivery to carriers 6 collection of documents

Ceeping the consignor 6 consignee informed

Assisting for preparation of shipment documents

$reparing 6 processing documents through *ustoms, port 6 !ctroi authorities, payment

of fees, duty etc.

FLOW CHART SHOWING FUNCTIONS OF FREIGHT

FORWARDER=6

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In the above diagram, -9, -? 6 -= send their #*# cargo to *7% 9. )he consolidator stuffs the

cargo into the container. )his container could be his or of another shipping line. )he process is

called FConso4&8t&onG. )hen the container is sent overseas via ocean 0ourney, to *7% ? in

another country. )here the container is de1stuffed and #*# cargos are given to the respective

importers.

)he above process involves both consolidation 6 freight forwarding. )oday, the services of a

forwarder are usually available with a consolidator, and the forwarder often engages in the

consolidation of cargo. ence, the term forwarder is often used synonymously with the

consolidator.

C0r!es= )he forwarder usually receives the forwarderHs charges from the exporter.

In the ocean shipment, the forwarder may HbuyH the shipping space, in a special arrangement with

the carrier, and HresellH the space to individual shippers, instead of receiving a commission.

In such an arrangement, the forwarder functions as an independent distribution or logistical

company known as the NVOCC4non6'esse4 o2ert&n! %o,,on %rr&er5.

NVOCC @Non Vesse4 O2ert&n! Co,,on Crr&er=

&enerally they are the entities, that don+t own the vessels. )hey reserve space on the vessels of

the shipping lines for the containers that are being dispatched by them, as they have tie1up with


ContainerCFS 1CFS 1

Stuffing

Vessel Container

De-stuffing

CFS 2CFS 2

Importer

2

POL

POD

OCEAN JOURNEY

Importer

1

Importer 3Exporter

3

Exporter

1

Exporter

2

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shipping lines. 7or this the shipping line charges some extra money to them for the same. )his is

because the carriers have the benefit of dispatching the container on board the ship for the

particular destination even though the space is full on the vessel. )hey have an advanced

reserved space on the vessel for their containers. )hese carriers have the authority to issue the

3ill of #ading. )he freight forwarder ensures that your goods receive the priority it reuires

your documentation is appropriately filled and your goods reach its destination in the specified

time.

SURVE5 Invoice no 6 "ate

E5 'o of $ackagesB5 "escription@5 &ross weight 6 'et weight

In case of survey of cargo, the details examination is mentioned i.e. the condition of cargo

where damaged or proper. If damaged, then total description and reason for damage of goods

is given in survey report.


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CONSOLIDATORS

*onsolidators, as the name suggest is an entity which is responsible for consolidation of cargo.

In the case of #*# shipment 4lesser than container load5, the consignment is sent to

consolidators. 2ho then after getting other sufficient #*# consignments which are supposed to

be shipped the same destination, books the place in container. After which as the place in

container is utilized, the container is shipped to particular destination. ence by converting #*#

shipments to 7*# consolidators earn huge profits.

CUSTOMS

*ustoms clearance of the goods, is done by the customs Authorities functioning under the overall

change of the Ministry of 7inance.

At the apex there is *entral 3oard of -xcise 6 *ustoms in the Ministry of 7inance.

)he 3oard is headed by the *hairman and assisted by members.

*ustoms perform following roles,

a))o ensure that whatever items move into or out of the country are in accordance with thelaws of the land, and not, prohibited or banned.

b) 3oth in regard to sea cargo as well as air imports, the customs authorize and appoint

FcustodiansG and all imported goods unloaded in a customs area remains in their custody

and till these are cleared for home consumption, or are warehoused or transshipped as

provided in the law.

c) )he items of import 6 export are properly assessed to duty tax or any other charge

leviable there on.

d) All the regulatory provision application to items of exports 6 import are being duly

complied with the exporter 6 the importer.

e) )he import D export trade statistics are regularly compiled 6 made available to different

authorities for their guidance 6 necessary action.

SHIPPING LINE?S


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a5 )he shipping line is responsible for the preparation of 3ill of lading.

b5 It is also responsible to deliver in the goods in the like order and condition as received

from the consignee.

c5 )he shipping line is also responsible for maintaining the goods in proper manner and

filing the I&M.

SOME IMPORTANT DOCUMENTS AND OTHER

TEMINOLOGIES

I,2orter6E*2orter Co8e @IEC

I-* is a prereuisite for any exporter or importer. All the below1mentioned categories of

exporters as well as importers reuire an I-* 'o. which is the basic reuirement in international

trade.

Manufacturer -xporters8

Merchant -xporters8

"eemed -xporters8

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%ervice -xporters8

)hird party -xporters

A&r:- #&44 @AWB=

Means the document made out by or on behalf of the shipper, which evidences the contract

between the shipper and carrier4s5 for carriage of goods over routes of the carrier4s5.

Mster A&r:- B&44 @MAWB):It is issued by the airlines to the *onsignerD7reight

7orwarder, which certifies that goods are received by the airlines for transit

Ho+se A&r:- B&44 @HAWB= )his document is issued by the freight forwarder to

the consigner, when the cargo is #*#.

ARE @A224&%t&on 3or Re,o'4 o3 E*%&se For,=

It is an application for removal of excisable goods for exports from India by any mode i.e. sea,

air, post and land. It is reuired in cases where sealing of goods and their examination takes place

at the place of dispatch and also for dispatch of goods without examination.

)hese forms are reuired to be printed in different colours to facilitate disposal of goods for

export in bond or under rebate of duty.

Bre B+4 Cr!o=

)he cargos that transit in loose form, and are not containerized due to their size.

Bre B+4 A!ent=

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An agent who deals in break bulk cargos or breaks consolidated consignments into their

individual parts.

B&44 o3 48&n!=

3ill of #ading is a document issued by the shipping company or its agent, acknowledging the

receipt of goods mentioned in the bill for the shipment 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 and other charges specified in the bill of #ading have been duly paid.

Cons&!nee=

)he party to whom the goods are to be delivered.

Co,#&ne8 Trns2ort Do%+,ent=*ombined )ransport "ocuments are used for movement

of goods from I*" that are set up in various centers in the country to destinations

EDI @E4e%tron&% Dt Inter%0n!e=

)he transfer of structured data from one computer to another 4detail of shipping or air cargo data

interchange5.

EP @E*2ort Pro,ot&on Co2-=

It is the final copy of shipping bill, which is issued by the customs. It is generally used for

getting benefits and is submitted to the consigner+s bank as the proof of export.

FCL @F+44 Cont&ner Lo8=

2hen the container is loaded fully with the cargo.

LCL @Less T0en Cont&ner Lo8=

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India will be entitled to a concessional rate of import duty in these countries. )he &ovt. of India

authorized the export agencies to issue the certificate of origin.

Mtes Re%e&2t=

Mate Receipt is issued by the *hief of the vessel after the cargo is loaded onto the ship. )his is

later presented in the office of %hipping agent to be exchanged with the 3ill of #ading. )his

document is transferable in nature and is formed in %tandardized Aligned 7ormat. )he main

details if the Mates Receipt is as follows8

95 'ame of the exporter

?5 $lace of receipt

=5 /oyage number

;5 $ort of loading

>5 $ort of discharge

E5 $ort of delivery

B5 Marks and numbers

@5 *ontainer number

:5 "escription of goods

9

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)he place where the goods are delivered and carrier+s liability ends.

S4ot=

)he space occupied by the container on the vessel.

Trnss0&2,ent=nloading and #oading of the cargo in between the transit.

Ter,&n4=

)he place where the cargo is loadedDunloaded under the customs supervision.

GENERAL EXPORT PROCEDURE

Deepak Mundada Page 2$ Dynamic Logistics, ICD Dighi.

R-*-I$) !7 !R"-R 3J -K$!R)-R

!' 3A%I% !7 I'/!I*- A'" $A*CI'& #I%) )-

'-K) %)-$ I% "-*I"-"

7A*)!RJ %)77I'& !7 -K$!R)% !R *!')A*)*..A A'" 7R)-R $R!*--" A**!"I'J

ASK THEM TO DO THE STUFFING

*!')A*) *..A 7!R *%)!M *#-ARA'*-

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&-) )- *-*C#I%) 7R!M )- *%)!M%

A7)-R %3MI))I'& )- I'/!I*-, $A*CI'&

#I%). -)*

SUBMITTING THE INVOICE, PACKING LIST

*-*C )- *-*C#I%) A'" %3MI) I) )! )-

*%)!M% A'"RECEIVE%I$$I'& 3I## '!

RECEIVE SHIPPING BILL NO$R-$ARA)I!' !7 %I$$I'& 3I## "-$-'"I'& !'

")J 7R-- !R '!)

OR NOT2A)-/-R %I$$I'& 3I##1"-$3 D"RA23A*C I)

A% )! 3- A%%-%%-" A**!R"I'J.

*AR&! I% !77#!A"-" A) I*"D *7% A'" *%)!M

-KAMI'A)I!' )AC-% $#A*-.

R-&I%)RA)I!' !7 &!!"% )AC- $#A*- 3J

-KAMI'-R, "-$)J *!MMI%%I!'-R, A$$RAI%-R

A "-)AI#-" *-*C )AC-% $#A*- #IC-. 'A)R-

!7 &!!"%, /A#- !7 &!!"%, 2-I&), A'"

I'*-')I/-% #IC- "-$3 AR- $R!$-R#J *-*C-".

A7)-R /-RI7I*A)I!' #-! 4#-) -K$!R) !R"-R5

I% I%%-"

7I'A# $RI')!) !7 %I$$I'& 3I## I% )AC-'

C

O

NT

T

.

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After understanding of the procedure, we could understand the documents involved therein and

also its role in the procedure. 2hich are as below mentioned8

In'o&%e8


&!!"% %)77-" I')! )- *!')AI'-R I7 '!)

"!'- -AR#I-R

&!!"% #!A"-" !' )! )- /-%%-# '"-R

%$-R/I%I!' !7 $R-/-')I/- !77I*-R

*!')AI'-R %-A#-" 3J )- %I$$I'& #I'- A'"

)- $R-/-')I/- !77I*-R

#I'-RD77 I%%-% 3I## !7 #A"I'& 2I* %)A)-%

LR-*-I/-" !' 3!AR"+ !R L%I$$-" !' 3!AR"+

)-' MA)-% R-*-I$) I%%-" 3J /-%%-#+% *A$)AI'

I' 2I* &!!"% AR- #!A"-". )I% I% "!'- A7)-R

)A##JI'& *AR&! 2I) %D34"$#I*A)-5.

-K$!R) $R!M!)I!' *!$J I% &-'-RA)-" A7)-R

7I#I'& -&M *!$J. I)+% $R!!7 %!2I'& )A) &!!"%

AR- -K$!R)-". A#%! %-" )! *#AIM "-$3I'*-')I/-%

C

O

N

T

.

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An invoice is a document which contains the detailed description of the goods consigned, order

of acceptance or contract no., I-* 'o., *osigner+s 6 *onsignee+s address, port of loading, port

of destination, country of origin, marks and number, number of packages, special marks 4if any5,

uantity shipped, selling price, terms of payment, terms of delivery amount of freight and

insurance 4if applicable5 etc. It is a good evidence of the contract of sale. )he invoice should be

strictly according to the contract of sale and should be on the paper of seller and must be signed

by him or by the person acting on his behalf.

P%&n! L&st8

$acking #ist gives the information like the invoice number, number of pieces, number of pieces

per package, number of packages, dimensions of packages, general description of cargo, net

weight, gross weight, etc.

Letter O3 Cre8&t8

#etter of *redit is a written understanding by a bank 4issuing bank5 given to the seller

4beneficiary5 at the reuest and in accordance with the instructions of the buyer 4applicant5 to

effect payment up to a stated sum of money within a prescribed time limit and against stipulate

documents. )hese stipulated documents are commercial invoice, certificate of origin, insurance

policy 4if reuired5 etc. *redits may either be revocable or irrevocable.

S0&22&n! B&448

%hipping 3ill is an important document reuired by the customs authorities for allowing

shipment. It is prepared by the exporter D *A and contains several details. )he documents that

are reuired to prepare the shipping bills are as follows8

95 7our copies of Invoices

?5 7our copies of $acking #ist

=5 %elf "eclaration 7orm


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*ontract, #etter of *redit, $urchase !rder

T-2es o3 s0&22&n! #&446

"uty drawback&reen 14B5

"uty -ntitlement $ass 3ook 4"-$35..3lue 14B5

"uty -xemption -ntitlement *ertificate... 2hite 14B5

7ree %hipping bill.2hite 14E5

-xport oriented nit. 4-!5$ink 14E5

"uty free shipping bill..Jellow 14E5

)he figure in the bracket indicates the number of shipping bill copy used under different scheme

of the shipment of the good.

95 D+t- Free S0&22&n! B&44=)his type of shipping bill is used for the goods for which

neither duty nor is cess applicable. It is also used for the goods manufactured out of

materials imported under the duty free import. It is white in color.

?5 D+te S0&22&n! B&44=)his type of shipping bill is used for goods sub0ect to export dutyD

cess, which either entitled or not entitled for drawback. It is used separately in respect of

which export duty is levied on the basis of 4a5 market price 4b5 tariff assessed value. It is

yellow in color.

=5 Dr:#% S0&22&n! B&44=If the export of goods is simultaneously by duty free and D or

sub0ect to export duty D cess, this type of shipping bill is compulsorily to be used whether

alone or

;5 Along with any other shipping bill. It is green in color.

>5 S0&22&n! B&44 3or s0&2,ent E*6Bon8= case of goods imported for re1export and kept in1

bond, this type of shipping bill is used. It is pink in color.

E5 DEPB S0&22&n! B&44=)his kind of %hipping 3ill is used when the export is under the scheme

of "-$3. It is blue in color.

!riginal. .*ustoms *opy


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"uplicate.*ustoms *opy

-xport $romotion *opy..-$ copy

NuadruplicateO... %cheme *opy

$ort trust !riginal...$ort

$ort trust "uplicate..$ort

$ort trust )riplicate. "ynamic logistic.

NOTE

;) copy is optional and is reuired according to the scheme under which the goods are shipped.

In the case where only six copy of shipping bill is reuired ;thcopy is not used whereas in the

case where seven copy of shipping bill is used ; thcopy is used.

B&44 O3 L8&n!=

3ill of #ading is a document issued by the shipping companyD its agent acknowledging the

receipt of goods mentioned in the bill for the shipment 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 and other charges specified in the bill of #ading have been duly paid.

T0e B&44 o3 L8&n! +n8er!oes t0e 3o44o:&n! ste2s=

95 )he exporter should give to the shipping company a complete set of the 3ill !f #ading

along with the Mates Receipt.

?5 )he shipping company shall calculate the amount of freight on the basis of weight or

measurement as recommended by the recognized *hamber of *ommerce.

=5 )he exporter shall pay the thus calculated freight amount.

;5 )he shipping company shall return the 3ill of #ading to the exporter duly signed and

supported by the reuisite adhesive stamps.

>5 )he 3ill of #ading eventually are, through the banking channels sent to the importer so that

he can take the delivery of the cargo after making the due payments.


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)here are generally ?1= copies of the 3ill of #ading prepared. )he masterD agents of the

shipping company duly sign all the copies. All the originals are eually valid for taking the

delivery of the goods. !nce one copy is so utilized, the rest of the copies are rendered null

and void for the purpose. tmost care should be taken to see that none of the copies go in the

wrong hands. )he exporter should take all the original copies form the shipping company or

its agent as the case may be.

A few more copies of 3ill of #ading are also issued, marked as L'on1 negotiable+, which

cannot be used to take the delivery of the goods. )here are various types of 3ill of #ading

depending upon the terms of #etter of *redit. %ome of them may not acceptable under #etter

of *redit unless specifically permitted. )hey are also distinguished on the basis of the

contents and validity of the 3ill of #ading. )hey are as follows8

95 C4+se B&44 o3 L8&n!=)his contains the additional clauses limiting the responsibility of the

%hipping *ompany and indicating defective conditions of the goods. )his 3ill of #ading is

not acceptable unless specifically authorized.

?5 C4en B&44 o3 L8&n!= It is the one that does not contain any superimposed clause or

annotation, which expressly declares a defective condition of the goods andD or packaging.

=5 St4e B&44 o3 L8&n!=Is the one, which is tendered to the bank at so late a date that though

within the validity of #etter of *redit, it is impossible for it to be dispatched to the consignee

in time to reach him before the goods themselves arrive at the destination port.

FOB V4+e= 6 @FREE ON BOARD

)he value of the goods needed to be represented in the 7!3 term. In case the term of the contract

is 7!3 then it is same as the invoice value, but in the case of the *67 and *I7, freight or freight

and insurance need to be deducted respectively as the case may be.

PMV Present Mret V4+e= 6

&enerally it is 9< P greater than the 7!3 value. It is taken because of the assumption that the

market value of the goods increases during the time gap.

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B&44 o3 entr-=

A list of goods received at a customhouse for export or import. An importer of any goods

presents the 3ill of -ntry

EXPORT PROCEDURE FOLLOWED AT ICD

" ROUND TRIP FACTOR

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) FACTOR< STUFFIING

/ ICD STUFFING

)his process begins from the premise of the exporter

Deepak Mundada Page 2# Dynamic Logistics, ICD Dighi.

)he loaded container comes back to I*" and the entire*ustoms formalities takes place

&ateway $orts D *7% at ('$),Mumbai

-mpty container is sent to the 7actory of the exporter for

stuffing

*argo is stuffed in the container and completion of all excise

formalities

%tuffed container comes to I*" to complete all documentation

processes and the custom clearance and the container is sealed

#oaded container gate pass is generated and departure of the

shipment for ('$)

*ontainer loaded in the vessel and sent to the destination

*argo is loaded in trucks and sent to "ynamic logistics $vt #td

"ighi

)he cargo is unloaded here and stacked at the specific location

in the export warehouse

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EXPORT AND CUSTIOM CLEARANCE PROCEDURE AT

D5 )he transporter picks up the container of a particular %hipping line and sends it to the

factory of the exporter.

E5 )he container gets stuffed and brought to I*""ighi for the reuired documentation and

custom procedures

B5 7ollowing documents are generated

4a5 If the factory of the exporter lies outside the $*M* area = copies of the loaded gate

pass are generated

4b5 9 copy is sent to t chief superintendant of $*M* !ctroi post.

Deepak Mundada Page 3% Dynamic Logistics, ICD Dighi.

"eparture of the container from I*" to ('$) loading on the

vessel and departure to the destination.

"ocumentation procedure, customs examination of the cargo to

be exported

*ustoms cleared cargo is stuffed and the container is sealed

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4c5 9 copy is given to the transporter.

4d5 9 copy is retained with the gate in charge of the I*".

4e5 If the factory lies in the $*M* limits, = copies of the empty container gate pass along

with = copies of the loaded gate pass are generated .all of them are distributed to the

authorities as the above. )he documents are useful for the fulfillment if the !ctroi

formalities.

@5 )he *A on then submits the shipping bills to the customs department .%hipping bills

serve as a specification of the goods to be exported

:5 )he role of the customs starts from here, so the appraiser scrutinizes the documents

carefully, and if needed he indicates the examiner for the same. )hen the process of

assessment takes place.

9

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truck no. and gate pass of "#$#. In case of any damage to seal or any suspicion the cargo is sent

back to the I*" "ighi or permitted to enter. )he truck will reach to specified container yard

where the container is unloaded from the vehicle. )he container should reach to the container

yard before the cut off time. 'ow days it is mandatory for the exporter to inform to the custom

of port of shipment ?; hour before the scheduled time of shipment. )he shipping line files -&M

-xport &eneral Manifest. %hipping #ineD Airline issue 3ill of #adingD air way bill when the

goods is received by the shipping line. 2hen the goods are physically exported the shipping line

issue Mate Receipt to the customs. )he mate receipt is forwarded along with the transference

copy by the custom of port of loading to the custom of I*" "ighi. !n receiving the transference

copy and mate receipt the I*" "ighi customs write the detail of the mate of receipt on the back

of the -$ copy at the specified space. )he I*" "ighi customs release the -$ copy to the

concerned *A along with the scheme copy and AR-. )he -$ copy along with &R is reuired to

be submitted to Authorized 3ank through which the payment will be realized. %cheme *opy is

reuired for any incentives and AR- for the drawback of the -xcise duty paid on the exported

goods.

PROCEDURE FOLLOWED FOR AIR EXPORTS AT ICD

*A -xporter after noting %hipping 3ill approaches I*" and files reuest 7l for

*arting of cargo along with %hipping 3ill, Airways 3ill, *ommercial Invoice and$acking list 4!$)I!'A#5.

4)his activity involves collectionH of *argo wm several exporters and consolidation at

"ronagiri ub5

%hipping 3ill8 -xport specification is prepared for customs. )hey reuire to inspect the

goods after the shipping bill is prepared to verify the goodS being exported. *ustoms

allow the goods to be exported and the drawbacks and other export benefits based on

%hipping 3ill After receiving reuest I*" issues a &$ 7; 4= copies5, 9 copy for &ate In charge 4I*"5,

? copies for transporter out of which one copy !ctroi. !ctroi issues a debit memo but this

is only for cargo arriving from area other than $*M* limit. If factory is within $*M*

limit there is no need to pay !ctroi.


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!nce cargo arrives at the gate security allows the cargo to enter on seeing the &$ and

records the time, exporter details, cargo description, no of packages and uantity.

$artyD*A approaches "#1*R for issue note for unloading the cargo at I*" 2arehouse.

*A -xporter gets cargo cleared by customs and obtains %hipping 3ill 4)ransference

*opies5

"# obtains $ermission1letter of the customs for transit through *3) and after that

prepares stuffing sheet for stuffing cargo in *3). An approved surveyor 4Master Marine5

surveyors the goods and produces certificate of measurement, document prepared by the

surveyor as a proof of measurement.

After stuffing 1 *3) is sealed by customs and stuffing report is made on %hipping 3ill. -xport &eneral Manifest 4-&M5 1 E copies )ransit $ermit 4)$51E copies and Inland 2ay

3ill 4I235, = copies are prepared by "# and endorsed by customs.

-xport &eneral Manifest8 1 prepared by "#. It is a summary of all the cargo that is loaded

onto the truck. It is for reference of customs at Mumbai.

)ransit permit8 1 is prepared by "# and signed by customs, stating that loaded truck is

heading towards %A** 4%ahar Air *argo *omplex5

)ransference *opies, -&M 49 copy5, )$ 49 *opy5 are put in the envelope and sealed

by *ustoms $une for Airport *ustoms. )he sealed envelope is handed to transporter and

!ctroi formalities fulfilled after which the vehicle is allowed to leave for the air port.

.


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GENERAL IMPORT PROCEDURE THAT IS FOLLOWED


-'NIR-J )- IM$!R)-R

I'7!RMA)I!' A% $-R )- NA)A)I!' 3J )-

-K$!R)-R

*!'7!RMA)I!' !7 )- $R*A%- !R"-R 3J

)- IM$!R)-R

-K$!R)-R $R-$AR-% )- "!*M-')% A'"

%-'"% )- 3I## !7 #A"I'& )R!& 3A'C )!

)- IM$!R)-R

IM$!R)-R MAC-% $AJM-') )! )- -K$!R)-R

)R!& )- 3A'C

IM$!R)-R R-*-I/-% "!*M-')% 7R!M )-

3A'C A'" A'" )-M !/-R )! )- *A

!' )- 3A%I% !7 )- %AM- *A 7I#-% 7!R )-

3I## !7 -')RJ

M-A'2I#- &!!"% R-A* )- "-%)I'A)I!'4IM$!R)-R+% *!')RJ5

)-' )- 3I## !7 -')RJ 'M3-R I% R-*-I/-"

7R!M )- *%)!M%

"-%)77I'& )AC-% $#A*-, A%%-%M'-) )AC-%

$#A*- A'" A"I)I'& )AC-% $#A*- A'"

A%%A%M-') !7 )- ")J $AJA3#- I%

*A#*#A)-"

C

O

N

T

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IMPORT DUTIES AND DOCUMENTS

*ustoms duties are levied on the goods as per rates specified in the schedule to the customs

tariff. Import duty is charged practically on all the items except food1grains, fertilizers, life

saving drugs and euipment etc.

Bs&% D+t-:It may be at the standard rate or in the case of import from some countries, at the

preferential rate.

A88&t&on4 C+sto,s D+t-: )his is eual to excise duty leviable on like goods produced or

manufactured in India. It is commonly known as countervailing duty or */". Additional duty is

charged for import of specific items from specified countries with a view of protecting domestic

industry from unfair in0ury.

C+sto,s D+t&es= Most of the customs duties are ad /alerom. /aluation of goods for customs

purposes is done as per the principles laid down in the customs valuation 4determination and

prices of imported goods5 rules 9:@@. 2hen goods attract specific rate of duty, there is no

problem but when duty is ad /alerom, customs and importers have disputes on value of goods.


A7)-R )I% ")J $AJM-') I' )- 3A'C

)R!& )- )RE *A##A'

-KAMI'A)I!' )AC-% $#A*-, !) !7 *AR&-

&I/-' 3J )- *%)!M%

$AJM-') !7 )- !*)R!I, A'" &!!"% R-A*

)! )- "-%IR-" #A!*)I!' !7 )- IM$!R)-R

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*ustoms value the goods in terms of section 9; of the customs act, 9:E? for the determining the

customs duty.

E*e,2t&on Cess= )he central government can exempt any specified goods from the levy of

custom duty generally or by special order either absolutely or conditionally in

public interest. %imilarly, certain cess is leviable on specified articles as duties of

customs and is passed on to the administering agencies nominated under the

respective statutes

.

Do%+,ents In'o4'e8 &n I,2orts8

B&44 O3 Entr-8 )he 3ill of -ntry is the document on the strength of which clearance of

imported goods can be done. )he form of the 3ill of -ntry has been standardized by the *entral

3oard of -xcise and *ustoms. As soon as the importer receives the advice of arrival of the vessel

the importers are reuired to present a document known as 3ill of -ntry, either for ome

*onsumption or for warehousing the goods. )he 3ill of -ntry is noted in the Import "epartment.

T-2es o3 B&44 o3 Entr-=

95 &oods -ntered for ome *onsumption are cleared on 2hite 3ill of -ntry.

47orm 'o. ??5It is to be submitted when the imported goods are to be cleared on payment of

full duty for consumption of the goods in India

?5 &oods entered for warehousing are removed Hinto bond on Jellow colour In13ond 3ill of

-ntry. 47orm 'o. ?=5 It is to be submitted when the imported goods are not reuired

immediately the importer but here they are to be stored in a warehouse without payment of

duty under a bond and cleared later when reuired on payment of duty. )his enables the

importer to defer payment of *ustoms "uty until the goods are actually reuired by him.

=5 &oods cleared ex1bond for ome *onsumption on payment of duty on &reen colour -K1

3ond 3ill of -ntry.4 7orm 'o. ?;5 It is used for clearing goods from the warehouse on


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payment of duty. )he goods are classified and valued at the time of clearance from the

*ustoms $ort. /alue and classification are not determined on such 3ill of -ntry.

)he rate of duty payable is that rate which is applicable on the date of removal of goods from the

warehouse

7or preparing the bill of entry the documents that are reuired are as follows8

95 Invoice

?5 $acking #ist

=5 3ill of #ading

;5 "! 4"elivery !rder5

>5 $urchase !rder

E5 *ertificate of !rigin

B5 #icense copy, 3ond certificate 4If reuired5

COMMERCIAL INVOICEAS AN IMPORTANT DOCUMENT

)he invoice must include at least the following information8

%ellerHs complete name, postal address, and telephone and fax number and bank

information Invoice number and date

%ellerHs reference, business I", foreign trade number 4/'5

3uyerHs reference, order number and date

7ull name and address of the buyer 4and addressee, if not the same5

'ame and address of the recipient of the goods

*ountry of origin of the goods

*ountry of destination

)ransport information, e.g. method, route

)erms of delivery 4e.g. *I7 'ew Jork, Inco terms ?

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-xact definition of goods

*ustoms tariff designation, in most cases a E1digit % designation

Nuantity of goods8 nits according to the trade practice, gross and net weight, other units

reuired by the customs tariff of the purchasing country. $rice information of the goods in the agreed currency, unit and total prices by types of

goods "iscounts andDor any additional charges with their criteria

-xporterHs signature and name clarification.

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BIBLIOGRAPH

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