tata report 2
TRANSCRIPT
A Summer Training Project Report On
EVALUATION OF FUNDS MANAGEMENTAt
Submitted for the Partial Fulfillment of M.B.A. degree at Prestige Institute of
Management, Dewas
Submitted To: Submitted By: Prof. Parag Nigam Mr. Rizwan MansuryOn- training guide M.B.A. 2ND SamTata International pvt Ltd.
MENTOR’S CERTIFICATE
This to certify that Mr. Mohammad Rizwan Mansury student of
M.B.A Programme has completed her summer training of 8 weeks
{from 16th may to 30st june} and prepared this report “Study Of
Evaluation of fund management in Tata Intenational pvt ltd. With
under my guidance.
Prof. PARAG NIGAM
Faculty Guide
DECLARATION
Myself Mohammad Rizwan Mansury, student of Prestige Institute of
Management, Dewas hereby declare that all the information,
facts and figures produced in this report are based on my own
experience and study during my summer training in Tata
International pvt ltd. . This report has been submitted in the
partial fulfillment of M.B.A. (Marketing and Finance)
Programme and has not been submitted to any other university.
Mohammad Rizwan Mansury
ACNOWLEDGEMENT
I present my summer training report on “Study Of Evaluation of
fund management in Tata Intenational pvt ltd. ” with deep sense of
pride and satisfaction. I take this opportunity to express gratitude to
the people who have been instrumental in the successful completion
of this training.
I would like to express my deepest sense of gratitude to Ms.Richa
Arora , HR.Manager of Tata Intenational pvt Ltd. Who provided
and suggested me in all the aspects of this training. I also give
regards for the guidance and support received from all the colleagues
who contributed to this training, I feel motivated and encouraged
every time I attended their meeting.
Last but not the least, this project would not have been completed
without the inspiration and exhortative guidance of Prof. Parag
Nigam. His encouragement and guidance leads to the materialization
of this report.
PREFANCE
I have been assigned to do my summer training in Tata Intenational
pvt Ltd., Dewas M.P., under the faculty guidance of Prof. Parag
Nigam. During training period my job was to We all know that there
is a wide difference between what we learn in the text and what we
actually see in the Finance Department and I am very much grateful
that it is going to be a learning experience for me. It will give me
great pleasure if my study will help Reliance Life Insurance in any
respect.
Sr.No Contents Page No
1 INTRODUCATION.
1.1 Company Profile.
1.2 What is Export?
1.3 Why do we need Export ?
2 RESEARCH METHODOLOGY.
2.1 Objective of the Study.
2.2 Tool for data collection.
3 ANALYSIS & INTERPRETATION.
3.1 Export Documentation
3.2 Export Procedure
4 FINDINGS.
4.1 Common Defects in Documentation
5 SUGGESTIONS & CONCLUSION
5.1 Conclusion
5.2 Bibliography
5.3 Annexure
We believe the world is as wide as our vision..
Established in 1962, as the International business gateway of the Tata Group, Tata International was the driving force behind the emergence of the Tata name as a global brand. It is now one of largest export houses
The company has evolved into an International entity with a global reach…. in international trading, it encompasses the entire value chain from supply chain integration to facilitating third country trade and focussing on select geographies - by setting up strategic alliances or wholly-owned subsidiaries.Tata International has taken on various value-added roles and has stakes in a cross-section of businesses. It’s two main business lines are - Leather & Engineering (including Automobiles distribution in Africa).With the worldwide network of 42 offices that span India and the globe, it has developed some major international alliances for the Group.
As the company has achieved it’s targeted Mission & Vision much earlier, it has initiated a company wide exercise to update it’s Vision & Mission for 2009 – 10 and beyond.
This will be updated and put up on the company website shortly.
• Core ValuesThe Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance group synergy and becoming globally competitive is our chosen route to sustained growth and long-term success.
Tata International‘s values are :
Integrity: We will conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.
Understanding: We will be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.
Excellence: We will constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.
Unity: We will work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.
Responsibility: We will continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.
• Mr B Muthuraman
Chairman
• Mr R Dhawan
• Dr H S Vachha
• Mr Piyush G Mankad
• Mr Rajiv Dube
• Mr Arun K Vora
• Mr Noel N Tata
• Mr O K Kaul
Executive Director
Operating in the international arena, Tata International meets the exacting quality standards of its customers in terms of both products and services. At our leather manufacturing facility at Dewas in Madhya Pradesh, Central India, all our units are ISO 9001 and 14001 certified – the first in the Asian leather industry to attain the ISO certifications. We have streamlined our processes to be in line with the Tata Business Excellence Model which is based on the Malcolm Baldridge Quality Awards. We drive business excellence through continuous improvement, innovation and teamwork across the organisation, with a special slant to environment protection. Our indigenously developed world-class Leather Effluent treatment plant is the only one of its kind in the country, and has enabled us to win several other prestigious National awards & patents.
Tata International's efforts have been well- recognised by the industry & government , as the company has received several prestigious awards:
1. The Modeurop Award for introducing the latest generation of Leather Fashion Colours & Designs every year.
2. Best Exporter Award from the Council of Leather Exports, every year from 1984 – onwards till date.
3. The Rajiv Gandhi National Quality Award in 2000. 4. ISO 14001 Certification by RWTUV CERT of Germany in 2002. 5. The Rajiv Gandhi Environmental Award for Clean Technology was won in 2003. 6. The Madhya Pradesh State Pollution Control Board’s Environmental Award for Best
Environmental Practices in 2005. 7. Won The TERI Corporate Environment award for environment excellence in 2005. 8. Awarded an eco-labelling license by the Bureau of Indian Standards (BIS) : ECO-
MARK in 2005.
Tata International is deeply committed to being a good corporate citizen: by being a proactive, integral and responsible member of the community and the environment, in which it operates.
Stringent goals for the reduction of our water footprint and greenhouse gases in the Leather BU factory, coupled with empowering and enhancing the livelihoods of our local communities in equal measure, is our mantra for a better tomorrow.
Tata International is deeply committed to being a good corporate citizen: by being a proactive, integral and responsible member of the community and the environment, in which it operates. Stringent goals for the reduction of our water footprint and greenhouse gases in the Leather BU factory, coupled with empowering and enhancing the livelihoods of our local communities in equal measure, is our mantra for a better tomorrow.
Developmental Activities
Employment generation
Tata International Ltd. set up co-operatives and self-help groups (SHG’s) at Indore, Dewas and Mhow to generate leather industry-related employment for women. It also provides formal training to women in the manufacture of leather articles , footwear and it’s components.
For The Leather & Jute Training Centre at Indore, in collaboration with the Madhya Pradesh Handicraft Development Board and the World Bank – the company runs formal training courses and it gives meritorious students employment at it’s Leather Factory.
At the new Ladies footwear manufacturing plant in Dewas, the complete end-to-end operations are managed by 2000 women, who are trained to manufacture footwear by FDDI trainers. This is a further extension of Tata International’s commitment to provide opportunities to the women & underprivileged sections of society.
Community Developmental Activities in Dewas and other parts of India: Major initiatives of the company ,revolve around the Leather Business Unit :
At our Leather Factory , Dewas :
Constructed & adopted School Buildings in Village: Binjana & Amona, with complete class room infrastructure, computers etc. Sponsor several health, education and other vocational activities.
Maintenance of a public children's park in the Dewas township. Public library in Dewas supervised by workers as a volunteer activity. Marketing consultancy and computer classes for NGOs as a volunteer activity. Donation of finished leather to a leprosy hospital every year for making shoes for patients. Technical training to Central Jail inmates Supporting the Army Welfare Centre at Mhow with vocational training for disabled jawans and
war widows. Established the TATA JSK (Jansankhya Sthirata Kosh), National Prerna Award( with the
National Population Stabilization Fund): to work towards the two Millennium Development Goals of:
“Infant Mortality Rate” and “Maternal Health”. and create responsible parenthood, a maximum of 30 women from the district of Dewas – will be given this award
Goat Development Project in Bankura and Burdwan districts of West Bengal :An eco friendly, sustainable, goat development project was launched in Bankura
• Drive India Enterprise Solutions Limited (DIESL)
This en terprise is jointly owned by Tata Industries and Tata International and is a complete end-to-end Logistics Solutions Company that provide services like customs clearance, retail distribution, warehousing operations, reverse logistics, cash management services, tax & compliance management.
It is also the second largest Logistics & distribution Company in India and reaches out to a network of 1,200 towns and 6,000 distributors, with hubs in all major ports and state capitals across the country.
Its key clients are Tata Sky, Tata Indicom, Virgin Mobile, ZTE, Castrol, Haier, Voltas Limited, Croma, Dick Smith Electronics, Colgate Palmolive India Limited.
Contact: CEO - Mr Ajay Chopra [email protected] See presentation »»www.diesl.in
• Tata International DLT Pvt. Ltd.
This is a joint venture between Tata International Limited and Dutch Lanka Trailer (DLT) Manufacturers Limited, Sri Lanka. Established in 2006, the company is a pioneer in the organised sector and is at present, one of the largest manufacturers of trailers in India. Tata International DLT’s plant is located in Chakan, in Maharashtra.
The Company manufactures and sells trailers based on tested technical designs created by DLT. Its product range includes 7 models, available in both 35 tonne and 40 tonne segments, and is also introducing trailers in the 49 tonne segment.
Contact: COO - Mr Ramesh K Gupta [email protected]
• Tata Precision Industries (India) Ltd.
• Set up in 1995, Tata Precision is a 50:50 joint venture between Tata Precision Industries Pte. Ltd., Singapore and Tata International Limited, India. It ventured mainly into international business and the Company has taken on various value added products and the business line includes Precision metal and plastic parts for Engineering, Wireless Control and Automobile Sectors.
Tata Precision has evolved from being a world class manufacturer of Precision Engineering Parts and the company has facilities in India, at Dewas. Its state-of-the-art manufacturing facility of Telecommunications is located near the Tata International's Leather factory. Tata Precision, an ISO 9001:2000 accredited organisation, will endeavour to provide customer delight through world class quality and services.
The set-up in TPIIL consists of 21 CNC Vertical Machining Centres (VMCs), 8 CNC Turning Centres, 10 Special Purpose Machines (SPMs), 8 CNC Turning Centres, a well equipped Quality Control Department with Mitutoya Microhite, 3-Axis CNC Co-ordinate Measuring Machine (CMM), Mitutoya Microhite alongwith other measuring instruments and the Plastic shop consists 500T, 220T and 75T capacity CNC Injection Moulding Machines. Its customers are :
Click here to view the product line of Tata Precision
A. W. Chesterton Co. - USA, Mini Circuits Ltd. - USA, MESL Microwave Ltd. - UK, TATA Precision Industries Pte. Ltd. - Singapore, Revon Electronics Ltd- Israel, Andrew Telecommunications (I) Ltd. - Goa, Mahindra Two Wheelers Ltd, Pithampur Tata Motors Ltd. - Lucknow/Pune, Tata Consultancy Ltd. - Mumbai Tudor India Limited - Gujarat, Kirloskar Brothers Ltd - Dewas, Tata Motors Ltd. - Lucknow/Pune, Tudor India Limited - Gujarat, Tata Consultancy Ltd. - Mumbai Andrew Telecommunications Ltd. - Goa,
• Tata Code of Conduct (TCOC)
Every Tata employee is bound by the tenets of the TCOC and the stakeholders of the companies are also made aware of the TCOC. Tata International has an apex Ethics Council, an Ethics Counsellor who heads the function, Locational Ethics Counsellors in India and overseas locations and a Ladies Ethics Counsellor.
An Equal Opportunity Employer, the Company does not discriminate on grounds of race, ethnicity, religion, sex, nationality, gender, disability etc.
See Link to review the Tata Code of Conduct (TCOC).
and Burdwan districts of West Bengal in terms of an agreement between Sir Dorabji Tata Trust, Animal Resources Development Dept, West Bengal and BAIF for the weaker sections of society. Tata International lent support to this venture through selection of suitable NGOs & providing interface between the West Bengal Govt. and BAIF.
Tata International also provides financial assistance to several NGOs in the areas of Education, Healthcare, Medical Research and Social Welfare in the several towns, where it operates.
Affirmative Action: The Company practices Affirmative Action in employing a diverse work force and ensuring equal opportunities are given to all. In keeping with the Group’s values, the Company believes in economic and social empowerment of the disadvantaged society and plays a pro-active role in its upliftment and welfare.
It's Leather Business Unit (LBU) has in Dewas, undertaken several affirmative actions for the SC, ST and OBC communities of the state. It’s commitments cover 3 main areas:
Entrepreneurship Development : imparting specialized training for S-O-W: stitched on wood – for buying back products and footwear components from the new trainee entrepreneurs.
Employment Creation: Adopting & upgrading ITI institutes and offering their promising students employment. Special support given to SC/ST’s for making them employable. Tata International has also initiated ‘Public Private Partnership’ in collaboration with the Govt. of Madhya Pradesh – whereby , 642 women have been trained in the footwear trade for activities like cutting, sewing & inspection.
Education: Continuous vocational training at the school, college and adult level is given to both men & women, to make them employable in the footwear trade and beyond.
• Environment Protection Activities
Concern for the environment is topmost on the list of Tata International's corporate sustainability responsibilities.
Apart from planting 200,000 trees at the leather factory at Dewas, it has also begun its reforestation plan of the Tekri hillock plan in Dewas.
5 Ponds of 10,000 cu.mtrs have been excavated in the factory for water harvesting & utilization. Children’s Parks have been created with the excavated earth.
The leather factory in Dewas has a sophisticated effluent treatment plant in place along with a reverse osmosis plant for liquid waste. R&D projects like processes for chrome free leather, process changes study for eco labelling of leather products are also being followed.
Tata International also has one of India's largest solar thermal water heating systems at the leather factory in Dewas.
• Community Work at our Overseas offices - Africa
Training and Skills Development activities undertaken:
Namibian nationals trained in Hospitality sector Skills Development of Ethiopians in Leather Industry Industry Internships in India for South African Women graduates Women trained in Jewellery making Women trained in Decoration of ceramics ware
Pilot projects in Computer based Functional Literacy in support of women’s empowerment
Annual scholarships to disadvantaged and financially needy students
Sponsorship of Vehicles for underprivileged sports club, schools for the disabled
• UN Global Compact Tata International is a signatory to the UN Global Compact. It has also submitted a Corporate Sustainability Report recently, as per the Global Reporting Initiative Guidelines of the UN, which has been verified by PricewaterhouseCoopers. Tata International's commitment to the UN Global Compact "Communication on Progress" is ongoing for 2009 - 2010.
Ten Principles of the UN Global Compact Human Rights
Businesses should support and respect the protection of internationally proclaimed human rights.
Make sure they are not complicit in human rights abuses.
Labour Standards
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
The elimination of all forms of forced and compulsory labour. The effective abolition of child labour. Eliminate discrimination in respect of employment and occupation.
Environment
Businesses should support a precautionary approach to environmental challenges.
Undertake initiatives to promote greater environmental responsibility. Encourage the development and diffusion of environmentally friendly
technologies.
Anti-Corruption
Businesses should work against all forms of corruption, including extortion and bribery.
.
The Tata Group is one of India’s largest and most respected business conglomerates, with revenues in FY 2009 of $70.8 billion, and operates in over 80 countries. Tata Companies together employ over 3,50,000 people worldwide.The Tata Group comprises of 96 operating companies in 7 Business sectors :
• Information Systems and Communications • Engineering • Materials • Services • Energy • Consumer Products • Chemicals
The Group has the largest number of publicly listed Companies, all of which have been pioneers in their respective fields among them, Tata Motors, Tata Steel, Tata Consultancy, Tata Tea, Tata Chemicals, Tata Power and Indian Hotels.Going forward, the Group is focussing on new technologies and innovation to drive its businesses in India and globally, in tandem with the increasing international presence of its Companies.Anchored in India and committed to its traditional values of leadership with trust, the Group is fast building a multinational business footprint which will achieve growth through excellence and innovation, while balancing the interests of its shareholders, its employees and the society
Globally driven, award winning and a community conscious corporate, the Leather and Leather Products business unit (BU) truly epitomises a modern Tata company.
India’s leading leather and leather-products exporter and supply chain integrator - this BU offers comprehensive Leather & Leather Products solutions right from… the concept presentation stage to product design development, to manufacturing in low-cost economies and then final delivery.
This is supported by a well integrated IT enabled ERP-SAP set-up, offering an edge in the product supply and delivery management for the customer
Our Leather BU runs one of the world's largest tanneries at Dewas, Madhya Pradesh, design studios in Italy and Spain and modern manufacturing facilities in India, Bangladesh, China and Indonesia that produce a wide range of leathers, shoes, garments and other leather articles.
The BU is a valuable partner and supplier to global brands like Betty Barclay, Peter Keiser, Marks & Spencer, GCI, Mango, Pierre Cardin, Hush Puppies, Escada, Gabor, Naturalizer, Zara, Grenson, Ambiorix, Samsonite, Danier and leading Indian retailers.
It has established a highly flexible, globally spread supply chain for sourcing leather, footwear, garments and leather goods.
The R&D department of this BU has made internationally acknowledged breakthroughs in the production of chrome free leather and processing of solid waste.
The BU was the first leather company in Asia to receive ISO 9000, ISO 14000 and the Eco-Mark certification. All its products are free from banned chemicals. See link for all Awards >>
The LBU , Dewas was the first leather manufacturing unit in India to secure the Eco-labelling (Eco-Mark) License by the Bureau of Indian Standards (BIS) and can use the Eco-Mark below , for its finished leather products. This has opened up several opportunities to market environmentally friendly leather products to our retail customers
Add to this, the Tata Brand value of Quality - a strong consumer proposition and presents a huge opportunity for the global retail market.
For Efficient Customer Response, Tata International has instituted Marketing Offices in the Far East & Europe i.e. in Hong Kong, London and Italy. The presence of these global marketing hubs provides a competitive edge for making a difference in the market .
TIL’s infrastructure is backed up by the industry’s top notch Technicians, Designers and Professionals and is designed to cater to needs of the renowned Brands and Retailers across the world.
backed up by the industry’s top notch Technicians, Designers and Professionals and is designed to cater to needs of the renowned Brands and Retailers across the world.
FACTS AT GLANCE
A Large Scale Enterprise• 200,000 square feet of raw material sourced every day. • 5 million square feet of leather produced every month. • Over 1,000 unique product offerings.
A Global Reach• •Worldwide sourcing for raw material from India, CIS, China, Middle East,
Africa, Australia, Latin America and Indonesia. Supply chain presence in Dewas, Kanpur, Chennai, Kolkata (India), Bangladesh, China, Pakistan and Indonesia.
• Market presence across all major leather hubs - Far East, EU, US, LAC, CIS and SAARC.
• Valuable partner and supplier to global brands. A Leader In Innovation
• Innovation in colours - Fashion colours selected in Modeurop every year. • Innovation in design - Produces over 100 new products every year. • Installed capacities - Design tie ups in Europe. • Human Resource - Dedicated team for product development made up of
alumni from the best leather research and technical institutes. Committed to Quality
• First leather company in Asia to receive ISO 9000 and ISO 14000 certification.
Responsible Corporate Citizens• Patented waste management solutions with 100% recycling of waste. • All products are free from all banned chemicals. • Entitled to use the ECO-MARK on our leathers.
WHAT IS EXPORT ?
The term "export" is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to an "exporter" who is based in the country of export whereas the overseas based buyeris referred to as an "importer". ... exporting - the commercial activity of selling and shipping goods to a foreign countryExporting - International trade is exchange of capital, goods, and services across international borders or territories. It refers to exports of goods and services by a firm to a foreign-based buyer (importer)In most countries, it represents a significant share of gross domestic product (GDP). ...
International trade is exchange of capital, good, and services across international bounders or
territories. In most countries, it represents a significant share of Gross domestic products (GDP). While
international trade has been present throughout much of history , its economic, social, and political
importance has been on the rise in recent centuries.
Industrialization, advanced , transportation, globalization, multinational, corporation
and outsourcing are all having a major impact on the international trade system. Increasing
international trade is crucial to the continuance of globalization Without international trade, nations
would be limited to the goods and services produced within their own borders.
International trade is in principle not different from domestic trade as the motivation and the behavior
of parties involved in a trade do not change fundamentally regardless of whether trade is across a
border or not. The main difference is that international trade is typically more costly than domestic
trade. The reason is that a border typically imposes additional costs such as tariff, time costs due to
border delays and costs associated with country differences such as language, the legal system or
culture.
Another difference between domestic and international trade is that factor of production such as capital
and labor are typically more mobile within a country than across countries. Thus international trade is
mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or
other factors of production. Then trade in goods and services can serve as a substitute for trade in
factors of production. Instead of importing a factor of production, a country can import goods that
make intensive use of the factor of production and are thus embodying the respective factor. An
example is the import of labor-intensive goods by the United States from China. Instead of importing
Chinese labor the United States is importing goods from China that were produced with Chinese labor.
International trade is also a branch of economics, which, together with international finance , forms the
larger branch of international economics.
"export" is when you trade something out of the country. In economics, an export is
any good or commodity, transported from one country to another country in a
legitimate fashion, typically for use in trade.
In national accounts “exports” consist of transactions in goods and services (sales,
barter, gifts or grants) from residents to non-residents. The exact definition of exports
includes and excludes specific "borderline" cases. A general delimitation of exports in
national accounts is given below:
An export of a good occurs when there is a change of ownership from a
resident to a non-resident; this does not necessarily imply that the good in
question physically crosses the frontier. However, in specific cases national
accounts impute changes of ownership even though in legal terms no change of
ownership takes place (e.g. cross border financial leasing, cross border deliveries
between affiliates of the same enterprise, goods crossing the border for significant
processing to order or repair). Also smuggled goods must be included in the
export measurement.
Export of services consist of all services rendered by residents to non-
residents. In national accounts any direct purchases by non-residents in the
economic territory of a country are recorded as exports of services; therefore all
expenditure by foreign tourists in the economic territory of a country is considered
as part of the exports of services of that country. Also international flows of illegal
services must be included.
National accountants often need to make adjustments to the basic trade data in order
to comply with national accounts concepts; the concepts for basic trade statistics often
differ in terms of definition and coverage from the requirements in the national
accounts:
Data on international trade in goods are mostly obtained through declarations
to custom services. If a country applies the general trade system, all goods
entering or leaving the country are recorded. If the special trade system (e.g. extra-
EU trade statistics) is applied goods which are received into customs warehouses
are not recorded in external trade statistics unless they subsequently go into free
circulation in the country of receipt.
A special case is the intra-EU trade statistics. Since goods move freely
between the member states of the EU without customs controls, statistics on trade
in goods between the member states must be obtained through surveys. To reduce
the statistical burden on the respondents small scale traders are excluded from the
reporting obligation.
Statistical recording of trade in services is based on declarations by banks to
their central banks or by surveys of the main operators. In a globalized economy
where services can be rendered via electronic means (e.g. internet) the related
international flows of services are difficult to identify.
Basic statistics on international trade normally do not record smuggled goods
or international flows of illegal services. A small fraction of the smuggled goods
and illegal services may nevertheless be included in official trade statistics
through dummy shipments or dummy declarations that serve to conceal the illegal
nature of the activities.
EXPORT DOCUMENTATION
PUBLIC COMPANY:
A minimum of seven persons required forming a Public Company
After obtaining Certificate of Incorporation, it has to obtain Certificate of
Commencement of Business for commencing business. These certificates are
issued by Registrar of Companies on filling certain documents, such as
Memorandum of Association and Article of Association, Address of Registered
office, Approval for Name, Statutory declaration, along with prescribed fee, it
needs to have a minimum of three Directors. It may be limited by shares and or by
guarantee or with unlimited liability. The Companies Act, 1956, governs it.
LETTER HEAD:
Once the type of set up has been decided, the next step is to print letterhead. The
entrepreneur may entrust the job to commercial artist to design the letterhead and
logo of the company. The size of the letterhead should be “A-4” as per
international practice.
RUBBERSTAMP:
As soon as the name of the company is decided, a Rubber Stamp of the company is
to be made.
BANK ACCOUNT:
The Company now has to open a Current Account in any Commercial Bank.
While opening account, the entrepreneur may see the facilities, particularly
Foreign Exchange transaction facilities in the Bank. The selection of bank is very
important, particularly keeping in view of the long-term relations to be established
not only with the concerned heads of the Foreign Exchange Department but also
with the staff for getting prompt services.
PERMANENT ACCOUNT NUMBER (P.A.N ):
The Company now has to apply for a permanent (Income Tax) number from the
local office or via designated agencies of Income tax department, in the prescribed
format along with necessary documents and Fee. It will help you to forward with a
smooth business without any type of taxation related problems.
IMPORTER- EXPORTER CODE NUMBER (IEC):
Every person (whether an individual or firm or company etc.) importing or
exporting goods into or from india will require a Code Number unless specifically
exempted by the Chief Controller of Imports and Exports. The customs authority
will not allow any person to import or export goods into or from india unless such
person holds a valid Importer-Exporter Code Number. The Concerned Regional
Licensing Authority, under whose jurisdiction the applicant’s firm is located, will
allot code number.
Application for allotment of IEC should be made in triplicate in the prescribed
form duly accompanied by Bank receipt/Demand draft evidencing payment of fee
along with the following documents:
A) Xerox of income tax PAN.
B) Certificate from the banker in the form as mentioned in the IEC application
form.
BUSINESS IDENTIFICATION NUMBER (BIN):
Application for allotment of BIN should be made in duplicate in the prescribed
form duly to the Concerned Regional Licensing Authority, under whose
jurisdiction the applicant’s firm is located or also can made the application online
directly trough the website DGFT to have BIN.
S.S.I REGISTRATION (TINY UNIT):
All exporters engaged in manufacturing process and whose investment in plant and
machinery is less than five lakhs can file an application for Registration as a Small
Scale Industrial unit. The SSL unit registration benefits you in many kinds in your
future business. It attracts levies and priority in bank loan interest/electricity rates
etc.
SALES TAX REGISTRATION (TIN):
For producing export goods, manufacturers exporters/traders, should get
themselves registered with the Local Sales Tax Department of the State/Union
Territory where they are located.
CENTRAL EXCISE (RBA):
All manufacturer-exporters and merchant-exporters engaged in exporting excisable
goods under “bond” are required to open and maintain a Running Bond Account
(RBA) with the Maritime Collector of Central Excise. However, SSL units whose
clearances don’t exceed Rs.25 lakhs consequently are exempt from excise duty.
REGISTRATION WITH EXPORT PROMOTION COUNCILS:
The general policy in respect of the role and functions of the Export promotion
Councils is given separately.
An exporter may obtain Registration-Cum-Membership Certificate (RCMC) from
any one-export promotion council (EPC) relating to his main line of business.
However, if the export product is such that it is not covered by any
EPC, the Regional Licensing Authority concerned thereof may issue RCMC in
respect. The Federation of Indian Export Organization (FIEO) shall issue the
RCMC.
The Chief Controller of Imports and Exports may, on his own motion or otherwise,
direct an EPC or FIEO to register or de-register an exporter of otherwise issue such
other direction to them consistent with and in order to implement the provisions of
the Act, the rules and orders made in the Import and Export Policy of Ministry of
Commerce, Government of India.
CLEARING AND FORWARDING AGENT (C&F/C.H.A):
Clearing and forwarding agents offer a host of services like preparation of shipping
bill, getting the documents authenticated at customs after getting the consignments
checked by customs officers. Some other services them are as under: -
a) Door to door services
b) Warehousing facilities
c) Regular air consolidation services in India
d) Booking of shipping space
e) Arrangements for insurance policies
f) Arrangements for shipping on board
g) Handling of exhibition goods, its clearance & display at pavilion.
h) Preparation and processing of all kinds of shipping documents
i) Efficient shipment tracking systems like availing of Flight details with routes
and date etc.
EXPORT PROSEDER
Exports are an important means of earning foreign exchange, therefore they require a considerable importance. The Central Excise Rules, 1944 offer several benefits of substantive nature as well as procedural nature for the export of goods outside India. Details of which are as under
Procedure for export.
The assesses has the option to clear the export goods with or without sealing of the consignment at the place of removal. In case he opts for factory sealing, the goods would be examined by the Central Excise officers at the factory. Otherwise, the goods would be examined by the Customs officer at the port of exportation.
Examination and sealing of goods at the place of removal.
The assessee has to file AR-4 application duly filled in, normally 24 hrs. in advance with the jurisdictional Superintendent in six copies.
The proper officer after identification and verification of the goods with AR- 4, and the duty payment particulars (in case the export is under claim for rebate) or after debiting the running bond account or against the specific bond, shall seal the consignment with the Central Excise seal and make necessary endorsement of the same on the AR – 4.
The original duplicate and the 6th copy of the AR-4 are thereafter handed over to the exporter.
The exporter desirous of exporting the goods in a container, are required to obtain the permission of the proper officer and shall also present the shipping bill duly processed by the customs authorities of the port of exportation or the ICD as the case may be, along with the AR-4 at the time of sealing of the container.
The inspector supervising the container’s stuffing as well as the Range Superintendent will make an endorsement on the body of the shipping bill.
The assessees opting for sealing of their consignment or container are required to pay the supervision charges in terms of the provisions of, and at the rates prescribed in the Customs (Fees for rendering services by Customs Officers) Regulation, 1968.
Despatch of goods without examination under Rule 187 A.
The assessee can clear the export goods either on payment of duty under claim for rebate or under bond under the cover of an invoice
He is required to send the original, duplicate and six triplicate copies of the AR-4 with the consignment.
The triplicate and quadruplicate and quintuplicate copies of the AR-4 shall be submitted to the Range Superintendent within 24 hrs. of clearance of such consignment,
The jurisdictional Superintendent, after verifying the duty payment particulars shall forward the triplicate copy to the jurisdictional Assistant Commissioner of Central Excise or the Maritime Commissioner as the case may be, either by post or on request handing over the same to the exporter in a sealed cover.
Quadruplicate copy of the AR-4 is sent to Chief Accounts Officer of the Central Excise Department and
Procedure in respect of goods not exported directly under Rule 187 or 187A.
Where the goods are not exported directly from the factory of the manufacturer, the triplicate and quadruplicate copies of the AR-4 are sent by the proper officer to the Superintendent having jurisdiction over the factory of the manufacturer, who after verification, would forward the triplicate copy to the Maritime Commissioner either by post or by handing over to the exporter in a tamper proof sealed cover, or the Assistant Commissioner of Central Excise having jurisdiction over the factory, as the case may be. The quadruplicate copy is sent to the Chief Accounts Officer by the Superintendent.
Export procedure for exempted units.
The exempted units desirous of exporting their goods are required to file declaration under notification no. 13/92- CE (NT) dated 14.5.92 as amended by Notification 22/98 CE (NT) and obtain declarants code number.
The code number is to be mentioned in all the clearance documents which are pre-authenticated by the manufacturer or his authorised agent.
In case of export through merchant exporter, the clearance documents shall be marked ‘Export through merchant exporter’ and the merchant exporter’s export - import Code number should also be mentioned.
The exempted units are required to maintain simple account of production and clearance and they shall file a quarterly statement to the jurisdictional Range Superintendent and also submit proof of export.
Information to be given on AR-4.
The exporter is required to give the following information on the AR-4 form
a. running sl. No. of the AR-4 beginning from each financial year; b. scheme under which export has been made, i.e. value based advanced
licensing scheme/ quantity based advanced licensing scheme/ under claim for duty drawback etc.;
c. whether the exported goods have been manufactured availing/without availing Modvat credit under Rule 57A; and
d. particulars of bond executed or the duty debit particulars as the case may be.
Export by merchant exporters.
A merchant exporter can export excisable goods either directly from the premises of the manufacturer, with or without sealing of export consignment, or through his premises under claim for rebate of duty or under bond.
In case of export under bond, the merchant exporter is required to execute bond either with the jurisdictional Assistant Commissioner having jurisdiction over the factory of the manufacturer or with the Maritime Commissioner.
The merchant exporter can execute consolidated B-1 general bond with the Maritime Commissioner and obtain "Block Transfers" from him along with attested copies of B-1 consolidated bond executed for various ports or manufacturers and export the goods under bond. The merchant exporter can also export goods on manufacturer’s bond.
He can also claim rebate of duty paid on exported goods either from the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or from the Maritime Commissioner.
The merchant exporter is also required to take disclaimer certificate from the manufacturer as well, in case he wants to avail the export benefits.
Special procedure to export to Nepal.
Export to Nepal is governed by special procedure provided in notifications issued under Rule 12 & 13. The procedure is as explained below
Notification no. 47/94-CE(NT) dated 22.9.94 – payment of rebate to His Majesty’s Government of Nepal.
Goods for export to Nepal are to be cleared from the registered factory on Nepal Invoice prepared in quadruplicate and marked ‘For Export to Nepal’ on payment of duty.
The Nepal Invoice is to be presented along with the goods to be exported before the Central Excise officer.
The Central excise officer shall verify the goods and seal the packages with the Central Excise seal. After making necessary endorsement on the Nepal invoice to this effect, he will hand over the original copy of the invoice to the exporter. Duplicate and triplicate copies of the Nepal invoice after being put in a sealed cover are handed over to the exporter for giving the same to the Customs officer incharge of the Land Customs Station, mentioned on the invoice and through which the goods are to be exported to Nepal.
On arrival at the Land Customs Station, exported goods are to be presented to the Customs officer along with the original copy of the Nepal invoice and sealed cover containing duplicate and triplicate copy of invoice. The Customs officer incharge, after verification of the goods with the invoice makes an endorsement on all copies of the invoice. The original copy is handed over to the exporter and the duplicate and triplicate copies are sent directly to the Nepalese Customs Officer incharge of the check post through which the goods are to be imported into Nepal.
The Nepalese Customs officer will return the duplicate copy of the invoice after endorsement regarding verification and allowing import into Nepal, to the Customs officer incharge at Indian Land Customs Station who is to forward the same to the Deputy Director of Inspection, Customs and Central Excise, Nepal Wing, for grant of rebate to His Majesty’s Government of Nepal.
Notification no. 51/94-CE (NT) dated 22.9.94 as amended – procedure for export to Nepal and Bhutan without payment of duty.
Export under bond without payment of duty to Nepal and Bhutan is subject to the following conditions
a. the payment for goods shall be in freely convertible foreign currency; and
b. the importer shall open an irrevokable letter of credit in favour of the exporter in India before the export takes place, subject to certain conditions prescribed in the notification.
The exporter is required to execute a bond under Rule 13 before the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or any other place from where the goods are to be exported and is required to furnish a certificate in Appendix 1 to the said notification from the Reserve Bank of India or any other bank duly authorised to deal in foreign exchange showing that full payment has been received.
On receipt of the said certificate and on completion of the conditions of the bond, the exporter shall be discharged of his liabilities under the bond. Capital goods are permitted to be exported to Nepal against any global tender invited by His Majesty’s Government of Nepal and the payment for which is received in the Indian currency, without payment of duty, subject to the condition that the exporter executes a bond and furnishes a certificate duly signed by the concerned Bank of India that full payment has been received in Indian currency by the said bank.
On receipt of such certificate and on completion of the conditions of the bond, the exporter is discharged of his liabilities under the bond.
The exporter is required to follow the procedure as provided in Appendix 2 to the said notification. The procedure is explained below
The exporter is required to make 6 copies of the invoice as prescribed in Annexure-A to the notification and make the following declaration on the same:
" I/We declare that the goods entered herein are intended for export to Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any other country".
The exporter shall present all the 6 copies of the invoice duly filled in along with the goods before the proper officer of Central Excise. The proper officer after verification of the goods and sealing them would make an endorsement on all the copies of the invoices.
The original copy of b the invoice is given to the exporter. Duplicate, triplicate and quadruplicate copies under sealed cover are given to the exporter for delivering the same to the Customs officer incharge of the Land Customs Station through which the goods are to be exported. The quadruplicate copy is forwarded to the Central Excise officer who has accepted the bond and quintuplicate copy is retained by the proper officer.
On arrival at the Land Customs Station, the goods are presented before the Customs officer incharge along with original copy of the invoice and the sealed cover containing copies of invoices.
The Customs officer, after verification of the goods with the invoices would make the endorsement on the invoice and hand over the original copy to the exporter. The duplicate and triplicate copies are sent directly to the Nepalese or Bhutanese, as the case may be, Custom officer incharge Land Customs Station through which the goods are to be imported into Nepal or Bhutan.
The Customs officer incharge of Land Customs Station at Nepal or Bhutan will return the duplicate copy of the invoice, after making an endorsement thereon regarding verification and allowing of import into Nepal or Bhutan, directly to the Customs officer incharge Land Customs Station in India.
The same is eventually forwarded to the Central Excise officer incharge of the factory or warehouse from where the goods were removed for export.