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									                                        1




            Submitted by


         NAME – PRERNA

REGISTRATION NUMBER – 200725990


                           PGDIB-2007
                                                          2




Name of the Learner -PRERNA
Registration No. - 200725990
Program Name – PGDIB-2007
Address- 5 , Mika Vihar ,
          Jansath Road, New Mandi
          Muzaffernagar ,
          Uttar Pradesh , 251001
           India


Title of the Project – Export Process And Documentation


Objectives -
The main objectives of the research were:



     To know about export import process.

     To know what are the documents required before and
      after sailing the cargo.
To know different type of container used in shipment
                                                                                  3


Need for the topic –The need for Export process and documentation
arise to make every one aware about the process .documentation need to

import or export the goods so that the other person can not make fool out of u,

frauds in import export can be controlled, and u will know the right way of

doing the work.



Methodology and Procedure of Work –


Collect data/information about cargo through:

    Primary data collection:-                E-mail , telephone , invoice and
       packing list.

      Secondary data collection:-                      Invoice , packing list ,
       shipping bill and internet.

       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
                                                                           4


      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




                                INDEX
                                                             Page No.
                                                    5


      1-    Important Abbreviations             6

      2-    Introduction of study               9

      3- Objective of study                    12

      4- Research Methodology                  13

      5- Research Design                       14

      6- Scope of the Project                  15

      7- Limitations of the study              16



      8- Company Profile                       17

      9- Organization Chart                    25

      10- Benefits Given by company            26



11-        Theoretical background              27

12-        Data Analysis and Interpretations   58

13-        Findings                            68

14-        Bibliography                        73

15-        Glossary                            74
                          6


Important Abbreviations
7
                                                                    8


                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 etc. This project will also find out how Committed
cargo Pvt. Ltd. could sustain in the competitive world by
providing   vast   range    of   cargo   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 seaway
in the committed cargo Pvt. Ltd.

     The India International Coir Fair-2009, which is
coinciding with the golden jubilee celebrations of the Central
Coir Research Institute, is expected to give further fillip to coir
exports from the country by providing better visibility to coir
products in the global market. The celebration of the
International Year of the Natural Fibre is also expected to
draw greater attention to coir and coir products.

Exceeding target

At a meeting of representatives of the coir exporters with the
Board officials to discuss issues related to exports, Mr V.S.
Vijayaraghavan, Chairman of Coir Board, thanked exporters
for their collective efforts in surpassing the export target last
year, both in quantity and value, despite tremendous odds
and conspicuous global impediments.




Forex Earnings
                                                                  9


Indian coir exports during 2008-09 had touched 1,94,791
tonnes valued at Rs 634 crore, exceeding the target set for the
year.

Coir export was 1,87,566 tonnes valued at Rs 592 crore
during the previous year.

Performance hopes

With the conduct of the India International Coir Fair-2009 and
the celebration of the International Year of Natural Fibre, the
Coir Board was confident of better performance this year.

Mr Vijayaraghavan hoped that the Coir Exporters Federation
would play a leading role in enhancing the growth of the coir
industry in all its dimensions and assured of the board's full
support in taking timely action to redress the problems of the
exporters.

The need to obtain timely governmental sanction to participate
in overseas fairs to achieve greater mileage in the export
market, setting up of a container freight station at Pollalchi,
Tamil Nadu, in view of its growing contribution to exports and
increasing the frequency of the meeting of exporters with
Board officials also received attention at the meeting held on
Monday. It was decided to hold the next executive committee
meeting of the Board at Bangalore on May 26.




Sales turnover

The 30-odd Coir Board showrooms spread over the country
had achieved a sales turnover of Rs 11.19 crore, accounting
for 86.10 per cent of the Rs 13-crore target fixed for the year
2008-09. The meeting also considered suggestions to revamp
                                                            10


these showrooms and sales depots through out the country in
tune with the growing expectations of all sections, especially
the upper strata of society in order to remain competitive in
the domestic market. In this background, Mr Vijayaraghavan
was confident of achieving the revised sales target of Rs 15
crore set for the showrooms in the country for the current
year.




              OBJECTIVE OF THE STUDY




The main objectives of the research were:
                                                          11




 To know about export import process.



 To know what are the documents required before and
  after sailing the cargo.




 To know different type of container used in shipment.




         RESEARCH METHODOLOGY
                                                                       12




Collect data/information about cargo through:

    Primary data collection:-

                       E-mail

                       Telephone

                       Invoice

                       Packing List




      Secondary data collection:-

                       Invoice

                       Packaging list

                       Shipping bill

                       Internet




                      RESEARCH DESIGN




       Research design is the based framework, which provides guidelines
for the research process. It is a map or blue print according to which the
research is to be conducts. The research design specifies the methods for
                                                                         13


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




                    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.
                                                                            14


 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.

 Chances of improvement of current channels.




              LIMITATIONS OF THE STUDY




 Not a panacea

 Not an exact science
                                                                       15


    Limitation of time

    Erroneous findings

    Not exact tool for forecasting

    In experience research staff

    Narrow conception of marketing research




                      COMPANY PROFILE

               INTRODUCTION OF THE ORGANIZATION


Overview

          An ISO 9001:2000 Company Incorporated head quarter in the
national capital Delhi, India and specializes in handling Import & Export
Cargo. Earning and maintaining a reputation for dependable and
complete worldwide cargo movement solutions with the motto ―Customer
Pride‖ achieved this longevity in the volatile cargo industry.

Committed Group has established its hub at Los Angeles, Toronto,
Shanghai, Mumbai, Jaipur, Ludhiana and a reliable network of associate
offices in India and world over and is specialized in forwarding of cargos
                                                                        16


choosing the most convenient and cost effective transportation method
by air, courier, sea and truck any time & anywhere around the globe.

Committed Group management has the right mix of experience and
commitment and is fast to adapt to new emerging technology. Its well-
established network and tracking software enables to provide fast and
reliable information to its client. Thus capable of handling –

    Packaging

    Warehousing

    Freight forwarding

    Clearance of Export and Import Cargo

    Commercial, Diplomatic and Non-Diplomatic Consignment.

    Projects



Mission Statement

―To be focused as a pro-active cargo gateway by anticipating and reacting
to each stage of a shipment's transit with commitment and to experience
strategic growth of a highly respected and recognized cargo company in
the Industry‖.



Team

The Committed Group management team brings together leaders with a
wealth of expertise from various industries, including transportation,
logistics, cargo management, professional services and customer service.

             These individuals form a strong foundation that provides
vision and support to a growing team of talented, dedicated professionals
working to adopt and deliver professional freight forwarding solutions
and custom clearance.

The Operational team at Committed Group comprising of more than
50 in-house trained energetic and aggressive group of employees with
several years of experience in the international freight forwarding plus an
protracted experience in the reputable shipping lines and airlines.

Thus, with strong gamut of professional from cargo industry under one
roof help Committed Group to adopt the "Total Freight Management"
approach, a feature of which is the handling of client cargo on a door-to-
door basis.
                                                                       17


             This approach ensures the correct management of cargo in a
cost-efficient and professional way at competitive price and feels
Committed Group is the RIGHT PARTNER FOR YOU.


Services



 Air Freight

 Custom Clearance

 Document Processing

 Multi Modal Facility

 3 PL & Supply Chain Management

 Packaging & Warehousing

 Tracking & Tracing




Multi Modal Facility

At Committed Group it is a single window contract for the carriage of
goods by at least two or more different modes of transport. Thus, providing
a permutation-combination between air- ocean-surface modes to reduce
the cost of transportation. This includes Door pick to Door delivery and a
complete logistics support constituting of:

»   Origin Pickup/Trucking.
»   Warehousing if required.
»   Customs Clearance & Documentation at origin.
»   Origin charges payable like THC, B/L Fee etc.
»   Carriage by Sea or Air by payment of Freight.
»   Inland Trucking if required.
»   Customs Clearing of goods at destination and Warehousing if need be.
»   Door Delivery of the cargo.

Committed Group operates as Multimodal Transport Operator (MTO)
providing the end 2 end services like:

DDP: Delivered Duty Paid Shipments.

DDU: Delivered Duty Unpaid Shipments.

CI Shipments: Cargo picked up on cost and insurances terms
                                                                        18



CF Shipments: Cargo picked up on cost and freight paid terms

CIF Shipments: Cargo picked up on cost Insurance and freight paid
terms.

FOB: Free on Board Shipment. Only Port to port or Apt to Apt service by
Carrier.

Ex Works: Pick up if cargo from shipper’s warehouse/factory.

Multimodal Transport (MT) Document
Services along with logistic documentation evidencing a multimodal
transport contract which can be replaced by electronic data interchange
messages insofar as permitted by applicable law and be

(a)Issued in a negotiable form or,

(b) Issued in a non-negotiable form indicating a named consignee.

Taken in charge means that the goods have been handed over to and
accepted for carriage by the MTO for delivery.




Delivery of the Cargo through Multimodal facility

This is done after completion of various documentation and formalities
after    the    arrival    of    the    shipment    at    destination.

The Cargo delivery is subject to various terms and conditions to be
fulfilled by the consignee as listed below:

1. Payment of all applicable charges to the delivery agent of the carrier.
2. On presentation of Duly Endorsed Original Bill of Lading (for Sea /
Ocean                                                         Shipments).
3.    For    Air   shipments,   an   Authority    Letter   is   required.
4.                             Original                              DIC.
5. In case of shipments under L/C, the designated Bank need to endorse
the Bill of Lading or issue
      A     Bank    Release   Order    in   favour    of   the    carrier.

Committed Group as an MTO undertakes to perform or to procure the
performance of all acts necessary to ensure delivery of the goods / cargo
with                                                        responsibility:

   (a) When the MT document has been issued in a negotiable form "to
       bearer", to the person surrendering one original of the document,
       or
                                                                         19



   (b) When the MT document has been issued in a negotiable form "to
   order", to the person surrendering one original of the document duly
   endorsed, or

(c) When the MT document has been issued in a negotiable form to a
named person, to that person upon

    Proof of his identity and surrender of one original document; if such
document has been transferred "to Order" or in blank the provisions of
(b) above apply, or

(d) When the MT document has been issued in a non-negotiable form, to
the person named as consignee in the document upon proof of his
identity, or

(e) When no document has been issued, to a person as instructed by the
consignor or by a person who has acquired the consignor's or the
consignee's rights under the multimodal transport contract to give such
instructions.


Period of responsibility

        The responsibility of Committed Cargo Care Pvt. Ltd. as a
Multimodal Transport Operator (MTO) for the goods under these Rules
covers the period from the time the MTO has taken the goods in his
charge       to       the      time      of      their     delivery.

        The multimodal transport operator shall be responsible for the
acts and omissions of its employee or agents, when any such employee or
agent is acting within the scope of his employment, or of any other
person of whose services he makes use for the performance of the
contract, as if such acts and omissions were his own.



Packaging & Warehousing


Packaging at Committed Group

    Committed Group employs professional packers and experienced
supervisors who are trained packing and packaging. We specialize in
handling fragile / heavy / oversized cargo. For packaging, we use
material like craft paper / soft papers, corrugated rolls & boxes, air
bubble pack rolls, polythene & polypropylene, and masking tape, etc.
depending upon the requirement.

      We design fabrication and assembly of crating material for
packaging machinery and equipment for storage or shipment and usage
of correct primary protective packing materials to insulate machinery and
                                                                         20


equipment from moisture, corrosion and excessive shock. Crating and
the use of machines to execute packing and moving operations has
resulted in accolades and sustained patronage by clients in India and
abroad.

Warehousing at Committed Group

      Committed Group offer warehousing facilities to support export -
import activities. The warehousing facilities are very helpful to accelerate
the transportation of goods, especially for cargos with LCL Status. We
use         authorised        warehouses          located        worldwide.


      Further to our covered warehousing facilities are provided for storing
of FMCG, industrial and high-end sophisticated products on transit. The
warehouses are equipped with dedicated loading and unloading bays.
At Committed Group storage areas of warehouses are demarcated to
identify each location. Our distribution centres offer ample space for
palletizing, crating and packing services according to customers’
specifications.

3 PL & Supply Chain Management



      At Committed Group, we define functional experience, expertise,
speed, flexibility, and ingenuity to manage your freight efficiently
everytime.

       As an experienced provider of 3PL (Third Party Logistics) 24 x 7, we
provide a total supply chain solution for your logistics and freight
management needs. Our ongoing goal is to simplify the shipping process
for our clients by finding the best rates and then smoothly coordinating
all aspects of the shipment from pick-up to ship to delivery for our E2E,
B2E, B2B, B2C and C2C clientele base.

        At Committed Group, we practice logistics. We can develop a
comprehensive project plan for your organization, deploy a project team,
and remain with your team through the implementation and start-up. We
analyze existing processes, from initiation of an order through fulfillment,
and evaluate modal selection, carrier utilization, and existing cost
structures. We formulate a customized solution for your unique needs.
Committed group is a hub-based third party fulfilment and logistics
company servicing both domestic and international needs.

   Services include: Complete Supply Chain Operations: End-to-End
                                                                        21


    Full    Case Pick       Modules

    Split Case      Pick    Modules

    Tilt      Tray Sorter

    Sliding        Shoe Sorter

    CAPS        Line

    Pick-to-Light

    Kitting

    Product/Process QA Management

    Performance-driven Controls

    Standard and Customized Reporting

    Inventory control

    Private and Public Delivery Network


      Invoicing

    Call Centre Support

    Diverse Product Categories Returns processing

    Assembly and inbound / outbound freight management.

    Accounts Management, and advanced in-house Systems Support.

    A-frame       and      Real-Time   RF-Controlled   Inventory   System

       Along with state-of-the-art distribution, our 3PL and SCM services
offers clients around the clock full service fulfilment support. Additional
services available: extensive print support, product packaging and ware
housing.


Our 3PL solution and Supply Chain Management enables cost savings
and better route planning


    Ability to connect customers and their supply chain partners
     through a real-time information hub

    10-15% reduction in transportation costs

    Real-time monitoring of inventory, orders and events
                                                                        22



      Intelligent order sourcing across multiple stocking locations

    10-15% cost improvement for fleets


Tracking & Tracing

        Committed Group big advantages offer to our customers is the
one stop online track and trace facility. Through this site you now have
the ability to monitor your consignments online or web access at any
time, day or night, without the need to constantly refer back to your
forwarder. Our system offers access on a 24/7 basis for all consignments
shipped          by          road,          sea           and          air.


       Updated daily, the moment you entrust your consignment given a
reference number and subsequently logged on our system the same day.
All customers are assigned unique login details to allow immediate
tracking of their consignments. The unique login codes ensure total
security by baring others from viewing the same information. The
accessible information is kept on a secure location and is accessed
through a strict password system. The information available from our
track and trace facility is flexible and can be tailored to your individual
needs. Thus, a global network of contacts and our combined wealth of
experience ensure that your shipments are transported effectively and
efficiently. Committed Group Track and Trace facility is available for
obtaining your freight consignment status with most major Airlines.
                     23




ORGANISATION CHART
                                                  24




        BENEFITS GIVEN BY COMPANY


 Origin Pickup/Trucking.

 Warehousing if required.

 Customs Clearance & Documentation at origin.

 Origin charges payable like THC, B/L Fee etc.

 Carriage by Sea or Air by payment of Freight.

 Inland Trucking if required.

 Customs Clearing of goods at destination and
  Warehousing if need be.

 Door Delivery of the cargo.
                                                                          25




               THEORETICAL BACKGROUND

LOGISTICS SYSTEM

      Logistics is defined by the council of Logistics, Ohio USA as the

Process of planning, implementing and controlling the efficient, co-
effective flow and storage flow and storage of raw materials, in process
inventory finished goods and related information from point of origin to
point consumption. More simply, the objective of Logistics System is that
the right products reach the right place in the right quantity at the right
time to satisfy customer demand.



ELEMENTS OF LOGISTICS SYSTEM



 Nature of Product


 Location of Manufacturing Plant


 Availability of infrastructure such as Road



 Availability of different modes of transportation



 Dealer/Distributor Network



 Government Policy
                               26




ELEMENTS OF LOGISTICS SYSTEM
                                                                          27


MODE OF TRANSPORTATION



   AIR TRANSPORT

   OCEAN TRANSPORT

   RAIL TRANSPORT

   ROAD TRANSPORT



  OCEAN TRANSPORT

  More than 95 per cent of international trade is conduced by sea
  routes   since   ancient   times,   sea   routes   are   being   used   for
  transportation of cargo from one continent or country to Coastal
  shipping is also used for transporting the cargo from one port within
  the country to another.



  For example in India the cargo can be transported from Chennai port
  to Visakhapatnam port using the costal shipping route.



                     Sea routes are used for carrying bulj commodities
  like such as coaling and thermal coal mires, fertilizers rock phosphate
  etc, and liquid go like crude oil ammonium acids etc Ideally the goods
  with high volume and kiw vakye are suited die ocean transport in the
  era of containerisation even the high value cargo can be safely enabled
  the cargo carrying capacities of the ship to increase many fold.



                      In 1956, the first containerised ship belonging to
  sea land corp. carried 58 twenty feet containers. The modern ships
  have the capacity to carry 7000 containers.



                     One of the biggest ships owned by Maersk-sea land
  is 1,138 feet long from end to end and 140 feet wide at mid ship. Such
  ships are called Post-Panamax ship.
                                                                          28




               Cargo   ship categorised into followings:-



     Liners ships : Liners ship represent the organized sector of the
shipping industries due to their fixed schedules of arrival and departure,
Pre-determined voyages and trade routes and published ocean freight
rates. Liner shipping is governed by shipping conference and offers the
following advantage to shippers:-

       Regular sailings to scheduled ports of call.

       Stable freight rates for a long period of time which helps the
         shipper to quote C & F prices with confidence.

       Uniform rates for all shippers.

       Coverage of wide range of ports.

       Rebates of freight rates based on loyalty agreements.



     Tramp ships:- Tramp ships on the other hand have the following
characteristics –



              They are free to move anywhere on the high seas at their will.



              Their voyage routes and schedules are flexible.




              They    travel from the port to another port o various trade
                routes looking for the cargo and carrying the same to various
                routes looking for the cargo and carrying the same to various
                destinations around the world.



              They arrive or depart without a fixed route or schedule.
                                                              29


 They fix their voyages according to availability of cargo
   and as per the requirement of the shippers of these
   cargoes.



 The freight rates of tram ships depend upon the demand
   and supply conditions in the shipping industry. If there
   is a glut of shipping space the tramp freight rates
   plummet. Whereas in case of shortage of shipping space,
   the tramp freight rates shoot up.



 The cargo space on the tramps is booked by the brokers
   located in major port cities like New York, London,
   Rotterdam Hamburg, and Hong- Kong etc. They work as
   a link between tramp operators and shippers.
                                             30




        TYPE OF CONTAINER USED IN
                 SHIPMENT
 HIGHCUBE   REEFERS
 BULKERS
                         FLAT RACKS      DRY CONTAINER




TANKS           ROOLTRALERS           OPEN TOPS
                                                                                                    31


  STANDARD CONTAINER
  STANDARD CONTAINERS:

Standard 20'




  inside       inside         Inside       door         door                      tare          Maxi
                                                                   capacity
  length        width         height       width       height                    weight         cargo



   19'4"        7'8"           7'10"        7'8"        7'6"       1,172CuFt     4,916lbs      47,900lbs


  5.900m       2.350m         2.393m       2.342m      2.280m      33.2CBM       2,230Kg       21,770Kg


Standard 40'




  inside       inside         Inside       door         door                      tare          Maxi
                                                                   capacity
  length        width         height       width       height                    weight         cargo




  FLAT RACK CONTAINER

  Flat rack 20'


      inside      inside          inside       door        door                       tare          maxi
                                                                      capacity
      length       width          height       width      height                     weight         cargo


      18'5"            7'3"        7'4"            -           -         -          5,578lbs      47,333lbs

     5.620m       2.200m         2.233m            -           -         -          2,530Kg        21,470Kg

  Flat rack 40'


      inside      inside          inside       door        door                       tare          maxi
                                                                      capacity
      length       width          height       width      height                     weight         cargo


      39'7"        6'10"           6'5"            -           -         -         12,081lbs      85,800lbs

    12.080m       2.438m         2.103m            -           -         -          5,480Kg        39,000Kg
                                                                                                  32


 FLATT RACK COLLAPSIBLE CONTAINER



Flat rack Collapsible 20'

  inside       inside     inside     door          door                        tare          Maxi
                                                               capacity
  length        width     height     width        height                      weight         cargo

   18'6"        7'3"        7'4"       -            -             -          6,061lbs       61,117lbs

  5.618m       2.208m     2.233m       -            -             -          2,750Kg        17,730Kg

Flat rack Collapsible 40'

  inside       inside     inside     door          door                        tare          Maxi
                                                               capacity
  length        width     height     width        height                      weight         cargo

   39'7"        6'10"       6'5"       -            -             -          12,081lbs      85,800lbs

 12.080m       2.126m     2.043m       -            -             -          5,800Kg        39,000Kg



 REEFER COINTAINER


  Reefer 20'



    inside       inside     inside     door           door                         tare          maxi
                                                                  capacity
    length        width     height     width         height                       weight         cargo



     17'8"        7'5"        7'5"         7'5"         7'3"     1,000CuFt       7,040lbs      45,760lbs


    5.425m      2.275m      2.260m    2.258m        2.216m        28.3CBM        3,200Kg       20,800Kg


 Reefer 40'



    inside       inside     inside     door           door                         tare          maxi
                                                                  capacity
    length        width     height     width         height                       weight         cargo



     37'8"        7'5"        7'2"         7'5"         7'0"     2,040CuFt      10,780lbs      56,276lbs


   11.493m      2.270m      2.197m    2.282m        2.155m        57.8CBM        4,900Kg       25,580Kg




 REEFER HIGH CUBE CONTAINER
                                                                               33




Reefer High Cube 40'




  inside     Inside     inside    door      door                  tare       maxi
                                                     capacity
  length      width     height    width    height                weight      cargo




  37'11"      7'6"       8'2"      7'6"     8'0"    2,344CuFt   9,900lbs    57,761lbs




 11.557m     2.294m     2.500m    2.294m   2.440m   66.6CBM     4,500Kg     25,980Kg




    HIGH CUBE CONTAINER


 HIGH CUBE 40'




   inside     Inside     inside    door     door                 tare       Maxi
                                                    capacity
   length      width     height    width   height               weight      cargo




    39'5"        7'8"    8'10"     7'8"     8'5"    2,694CuFt   8,750lbs   58,450lbs




  12.036m    2.350m     2.697m    2.338m   2.338m   76.3CBM     3,970Kg    26,510Kg




    PLATEFORM CONTAINER
                                                                         34




PLATFORM 20'


  inside   inside   inside   door     door                 tare       Maxi
                                              capacity
  length    width   height   width   height               weight      cargo


  19'11"    8'0"     7'4"      -       -         -       6,061lbs    52,896lbs

 6.058m    2.438m   2.233m     -       -         -       2,750Kg     24,000Kg


PLATFORM 40'


  inside   inside   inside   door     door                 tare       Maxi
                                              capacity
  length    width   height   width   height               weight      cargo


  40'0"     8'0"     6'5"      -       -         -       12,783lbs   86,397lbs


 12.180m   2.400m   1.950m     -       -         -       5,800Kg     39,200Kg




International Transaction
35
36
                                     37


EXPORT PROCEDURE AND DOCUMENTATION
                                                                        38




In India, ships transport more than 90 per cent of the cargo. It therefore
interesting to study the export processed by ship documentation related
to it.
Processing of an export order-----

  i. Exporter operation starts with the receipt of enquiry by the exporter
       from importer. Bar on the enquiry exporter submits his offer giving
       complete details of products technical specific price delivery
       payment terms etc.

 ii. After the process negotiations importer sends a purchase order follow
       by letter of credit (if applicable).

 iii. The exporter manufactures the goods according to the specification
        given in purchase order.

 iv. As soon as the        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:----

          INVOICE
          PACKING LIST
          ARE1 FROM EXSICE DEPARTMENT
          MARINE INSURANCE POLICY
          COPY OF PURCHASE ORDER / L/C
 vi. Above those documentation sends to CHA by exporter.

vii. Based on these documents CHA agent completes the octroi
       formalities, obtain port permit and prepare shipping bill which is a
       customs documents.

viii. Custom department check the export cargo on the basis of
       information provided on the shipping bill. If satisfy then cargo
       allow to loaded on the board of ship.

 ix. The shipping line gives mate receipts to CHA agents after the
       payment of ocean freights and port due obtains the bill of lading
       (B/L) from shipping line .B/L is a proof of dispatch of cargo and
       also a negotiable document.
                                                                 39


 x. 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

xi. After that the exporter submitted above these documents for
      negotiation to the bank which include :----
          Commercial invoice

         Packing list

         SDF form

         Original copy of purchases order

         Certificate of origin

         Bill of exchange

         Shipment advice



   After that, bank scrutinizes these documents and if found correct
make payment to exporter against documentations.
                                   40




                       INVOICE


                     CERTIFICATE


                  CUSTOMS DOCUMENT

   EXPORT
                 TRANSPORT DOCUMENT
DOCUMENTATION
                  EXCHANGE CONTROL
                      DOCUMENT.

                       PAYMENT
                      DOCUMENT.

                MISCELLANEOUS DOCUMENT
                                            41




                           EXPORT INVOICE


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
                         42



 Description of goods

 Net weight

 Gross weight

 Quantity

 Rate CIF EURO

 Amount CIF EURO

 Amount in words

 Declaration:

 Authorised signature
43
       44


xpor
45
46
47
48
    49




.
50
51
                                                                                 52



                       Self certified copy of proforma from foreign supplier showing
CIF value of the goods.
Self certified copy of registration certificate issued by concerned authority.

Self certified copy of the recommendation letter by the concerned authority.
53
54
                                                                           55




DATA ANALYSIS



http://www.shipping-worldwide.com/How       Big is a Cubic Meter?
Calculation: Length x Width x Height divided by 1728 = cubic feet divided by
                             35 = cubic meters.



   23 BOOK                   11 MEDIUM                     8 LARGE
    BOXES                      BOXES                        BOXES
                         = one cubic meter




  13x13x17 inches            18x18x17 inches             18x18x24 inches
   1.5 cubic feet             3.1 Cubic Feet              4.5 Cubic Feet
0.043 Cubic Meters         0.091 Cubic Meters          0.125 Cubic Meters
      (approx)                   (approx)                     (approx)


                            Or mix and match:

                                                                         =
                                                                         one
                                                                         cubi
                                                                         c
                                                                         mete
                                                                         r
                                                                         =
                                                                         one
                                                                         cubi
                                                                         c
                                                                         mete
                                                                         r
                                                                         =
                                                                         one
                                                                         cubi
                                                                         c
                                                                 56


                                                            mete
                                                            r




Air freight calculation

Introduction

Airlines that are members of the International Air Transport
Association (IATA) are bound by their membership to comply
with tariffs issued by IATA. However since 11th September
2002, airfreight rates are now extremely negotiable. Airfreight
rates cover transportation from the airport of loading to the
airport of discharge.

These rates do not include the following:

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

Chargeable/volumetric weight

Airline freight rates are based on a "chargeable weight",
because the volume or weight that can be loaded into an
aircraft is limited. The chargeable weight of a shipment will be
either the "actual gross mass" or the "volumetric weight",
whichever is the highest. The chargeable weight is calculated
as follows: 1 metric ton = 6 cubic metres. In order to establish
if the cargo will be a weight or volumetric based shipment.
                                                                57


Step 1

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




Step 2

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

Step 3

Now compare the weight to the volume. If the weight is 150 kg
then the airline would base the freight on the higher amount
being: 166,66 kg

Air freight calculations

The airline calculates freight based on weight or volume,
which ever yields the greatest amount. Airlines quote freight
rates based on the following rate structures:

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

Example:
0 - 50 Kg @ R22.00/per kg
50 - 100 Kg @ R19.00 per kg
100 - 150 Kg @ R17.00 per kg

Unit Load Device charges
                                                                 58


These rates are charged per container/ULD without reference
to the commodity loaded therein. Calculation of freight rates:

Let us assume the following figures:
The freight rate is R18.00 per kg
The weight of the parcel is 300 kg
The dimensions are: 114,6 cm X 120,4cm X 132,5 cm (round
the cm's up or down)



Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6
000 = 305.9 kg (having converted cm's to kg's now round up
the kg's to the next half a kilogram = 306 kg.
As the freight rate quoted by the airline is R18.00 per kg, we
calculate the price as follows:
306 kg X R18/kg = R5 508.00

The freight rate will not be calculated on the actual mass 300
kg X R18.00 = R5 400.00 as the airline will always use the
greater amount either the kg, or volumetric weight.

Consolidation

Consolidation is an economical method of moving cargo by
employing a consolidator. The consolidator receives cargo from
a number of suppliers/shippers and then combines these
cargoes into one consignment by packing the goods into a Unit
Load Device. The consolidator then books the Unit Load
Device with an airline. The supplier/shipper would have a
contract of carriage with the consolidator of the cargo and in
turn the airline would have a contract of carriage with the
consolidator. The airline would issue an air waybill to the
consolidator when accepting the Unit Load Device and in turn
the consolidator would issue the supplier/shipper with a
house air waybill.

The air waybill

The air waybill, unlike the ocean bill of lading is not a
document of title to the goods described therein, however it
does perform several similar functions these are:

     It is a receipt for the goods
                                                               59


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

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



Sea freight calculations

Introduction

Seafreight calculations can broadly be divided into two main
components; breakbulk and containerised. In this section we
deal with how you should calculate the freight costs of both of
these two types of seafreight.

Break bulk cargo calculations

Break bulk cargo, is cargo that is unitised, palletised or
strapped. This cargo is measured along the greatest length,
width and height of the entire shipment. The cargo is also
weighed. Shipping lines quote break bulk cargo per "freight
ton", which is either 1 metric ton or 1 cubic metre, which ever
yields the greatest revenue.

Example:
A case has a gross mass of 2 Mt.
The dimensions of the cargo are:
2.5 X 1 X 2 metres
The tariff rate quoted by the shipping line is: USD 110.00
weight or measure (freight ton)

Step 1
                                                                60


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



Step 2

Calculate the freight with the greater amount either the mass
or the dimension. 5 X USD 110.00 = USD 550.00

Freight would be paid on the measurement and not the
weight. All shipping lines carrying cargo in a break-bulk form
insist on payment based on a minimum freight charge which
is equivalent to one freight ton, one cubic metre or one metric
ton.




Full Container load calculations and surcharges

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

Bunker Adjustment Factor (BAF)

"Bunkers" is the generic name given to fuels and lubricants
that provide energy to power ships. The cost of bunker oil
fluctuates continually and with comparatively little warning.
                                                               61


Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
US Dollar 1 250.00 X 5.2% = US Dollar 65.00
Add the two amounts together
Freight rate: U S Dollar 1 315.00

Currency Adjustment Factor (CAF)

The currency adjustment factor is a mechanism for taking into
account fluctuations in exchange rates, these fluctuations
occur when expenses are paid in one currency and monies
earned in another by a shipping company. The currency
adjustment factor is a mechanism for taking into account
these exchange rate fluctuations. It is always expressed as a
percentage of the basic freight and is subject to regular review.

Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ CAF 6.3%
US Dollar 1 250.00 X 6.3% = US Dollar 78.75
Add the two amounts together
Freight rate: U S Dollar 1 328.75

War Surcharge

The outbreak of hostilities between nations can have a serious
effect upon carriers servicing international trade even though
they may sail under a neutral flag. Carriers sailing within the
vicinity of a war zone may impose a war surcharge on freight
to compensate for the higher risks involved and the higher
levels of insurance premium, which they may be obliged to
pay.

Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ WAR 5%
US Dollar 1 250.00 X 5% = US Dollar 62.50
Add the two amounts together
Freight rate: U S Dollar 1 35.50
                                                                 62


All of the above surcharges may be applied to a single freight
rate.

Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
+ CAF 6.3%
+ WAR 5%
Total amount of surcharge 16.5%
US Dollar 1 250.00 X 16.5% = US Dollar 206.25
(add to freight rate)
US Dollar 1 456.25

Port Congestion Surcharge

Congestion in a port for a period of time can involve
considerable idle time for vessels serving that port. When a
ship lies idle, this creates a huge amount of loss for the ship's
owner. Shipping lines therefore have the right to impose a
surcharge on the freight to recover revenue lost. Another
factor which influences port congestion surcharge would be
labour disputes. Port congestion surcharges are calculated as
a percentage of the freight rate as expressed in the previous
examples.

Consolidation services

The consolidator or groupage operator hires a container from a
shipping line and then sells that space to his
clients/exporters. The benefit for the exporter is that small
quantities which, would not fill a full container load, can be
shipped by sea freight in a shipping container as an
alternative to air freighting the goods. The consolidator would
charge per metric ton or cubic metre, which ever yields the
greatest. Example: US Dollar 89.00 Weight or Measure. The
shipping line would have a contract of carriage with the
consolidator and in turn the consolidator would have a
contract of carriage with the exporter. The consolidator would
be issued with an combined through bill of lading from the
shipping line and then present the exporter with a house bill
of lading (See bill of lading below)

The bill of lading
                                                                63


The bill of lading performs the following functions:

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

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

Endorsed Bills of Lading

Bills of lading can only be issued with the words "shipped on
board", if the cargo has actually been loaded onto the named
vessel at the port of loading. By insisting that the exporter
supplies the importer with a "shipped on board" bill of lading,
the importer obtains conclusive evidence that the goods have
been loaded on board the intended vessel.

Some importers insist that the exporter presents "shipped on
board" bills as a condition for payment. "Received for
shipment", bills of lading can be issued as soon as the goods
                                                                  64


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".




                           FINDINGS
65
66
67
                                                                    68




                                 IMPORTER
                            PURCHASES ORDER / L/C




                                 EXPORTER
     CERTIFICATE INVOICE      PACKING   GR          ARE1    MARINE
     OF                       LIST      FORM        FORM    INSURANCE
     INSPECTION                                             POLICY


                                 C & F AGENT
     CUSTOMS     SHIPPING    FULL SET COPY      DUPLICATE   DUPLICATE
     ATTESTED    BILLS       OF ON    OF L/C    COPY ARE    COPY GR
     INVOICE                 BOARD              FORM        FORM
                             BILL OF
                             LADING


                                  EXPORTER
COMMERCI     PACKIN   DUPLICAT   NEGOTIAB ORIGI      CERTIFICATE   BILL OF
AL INVOICE   G LIST    E COPY    LE COPIES NAL        OF ORIGIN    EXCHANG
                      GR FORM      OF B/L  L/C                     E




                            NEGOTIATING BANK



               L/C AMOUNT                      SHIPPING DOCUMENT

                        EXPORTER                 IMPORTER
                                                               69




                              BIBLIOGRAPHY



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



                        REFERENCES – INTERNET


www.committedgroup.com
www.google.co.in
www.ask.com
www.exit.net

								
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