A Report on

Export Process & Documentation

Submitted By K. Raj kumar

Y12IB20022 Integrated M.B.A (IB), 3th Year (3/1 SEM)

In partial fulfilment for the award of the degree Of Master of Business Administration
(International Business) Acade ic Year (2013!201")

Under the Guidance of N. Prasanna Kumar.

B.co , MBA, #h.$. Asst. #ro%essor

Department of International Business studies

A !AR"A NA#AR$%NA %NI&ER'I("

&agar'una &agar, (untur!)22)10

DE )ARA(I*N

I here*+ declare that the ,ro'ect re,ort entitled a stud+ on +Export Documentation in MADDI )AK'!MAIA! & original -or. su* itted *+ *.)(D., is an

e in ,artial %ul%il ent %or the a-ard o%

degree o% ) +ear Integrated M.B.A o% Achar+a &agar'una /ni0ersit+, (untur and has not *een su* itted earlier to this uni0ersit+ or to an+

other institution %or the a-ard o% an+ degree , di,lo a, certi%icate or an+ other title.

A KN*-)ED#EMEN( 1i%e o% hu an *eings is %ull o% interactions. &o one is sel%!su%%icient *+ hi sel% -hene0er an+one is doing so e serious and i ,ortant -or. a lot o% hel, %ro the ,eo,le concerned is needed 2 one less s,eciall+ o*liged to-ards the . I cannot %orget ac.no-ledging the in %e- -ords as -ithout the guidance 2 co!ordination o% the in + ,ro'ect re,ort -ould not ha0e *een ,ossi*le. A large nu *er o% indi0idual contri*uted to this ,ro'ect. I a than.%ul to all o% the %or their hel, and encourage ent. M+ -riting in this ,ro'ect re,ort has also *een in%luenced *+ a nu *er o% -e*sites and standard te3t*oo.s. As %ar as ,ossi*le, the+ ha0e *een %ull+ ac.no-ledged at the a,,ro,riate ,lace. I e3,ress + gratitude to all o% the . 4irst o% all I o-e + heart%elt gratitude to + guide Dr.N.PRA'ANA K%MAR. Asst.professor. International Business 'tudies, %or his no*le guidance throughout the co ,letion o% the #ro'ect. I -ould li.e to e3tend + heart%elt than.s to Mr B.BABU RAO Personal Officer, MADDI LAKSHMAIAH& CO.LTD, an !"nt"r %or gi0ing e an o,,ortunit+ to -or. on this ,ro'ect. 1ast *ut not least, also gi0e + sincere than.s to all the ,eo,le to directl+ indirectl+ ha0e hel, and encourage e in %inding the -a+ to e in collecting the re5uisite in%or ation and co ,leting the ,ro'ect e%%ecti0el+ and ti el+.

6. 7A8 6/MA7 MBA (IB) - III Year 7oll &o. Y11IB20022

#%IDE ER(I/I A(E

(* -!*ME'*E&ER I( MA" *N ERN

This is to certify that the project report titled Export Process and Documentation ffered !y Ethnic To!acco India "imited# $untur has !een prepared !y %& '() %*+('# 'oll ,o&

Y11IB20022#

a student of +B( (+aster of Business

(dministration)# session (-./---./0) 1ith International Business 2tudies as major area of speciali3ation& The study 1as conducted 1ith special reference to Ethnic To!acco India "imited# $untur& I recommend this project for e4aluation&

#lace9 (untur SI(&A:/7E $ate9 #7;8E<: (/I$E9 $r.&.#7ASA&A 6/MA7

'erial no

(itles

0. 3.

4. 5. 6. 7. 8. 9. :.

1apter202 Introduction 1apter232 ;*'ecti0es and ethodolog+ &eeds o% stud+ Methods o% stud+ ;*'ecti0es o% stud+ 1i itations o% stud+ 1apter242 co ,an+ ,ro%ile 1apter252 Indian to*acco industr+ 1apter262 I ,ortance o% e3,ort docu ents in trade 1apter272 :heoretical %ra e-or. o% e3,ort ,rocedure

1apter282 E3,ort docu entation 1apter292 <onclusion 1apter2:2 Bi*liogra,h+

5hapter- / Introduction

Importance of forei6n trade (ll countries need 6oods and ser4ices to satisfy 1ants of their people& Production of 6oods and ser4ices re7uires resources& ,o country can produce all the 6oods and ser4ices that it re7uires& It has to !uy from other countries 1hat it cannot produce or can produce less than its re7uirements& 2imilarly it sells to other countries the 6oods 1hich it has in surplus 7uantities&
Foreign trade is exchange of capital, goods, and services across international borders or territories. It refers to export 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 (GD ). !hile international trade has been present throughout much of history its economic, social, and political importance has been on the rise in recent centuries. Industriali"ation, advanced transportation, globali"ation, multinational corporations, and outsourcing are all having a ma#or impact on the international trade system. Increasing international trade is crucial to the continuance of globali"ation. International trade is a ma#or source of economic revenue for any nation that is considered a $orld po$er. !ithout international trade, nations $ould be limited to the goods and services produced $ithin their o$n borders. Foreign trade is typically more costly than domestic trade. %he reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated $ith country differences such as language, the legal system or culture.

n the e4e of Independence in /89:# forei6n trade of India 1as typical of a colonial and a6ricultural economy& Trade relations 1ere mainly confined to Britain and other 5ommon1ealth countries& Exports consisted chiefly of ra1 materials and plantation crops 1hile imports composed of li6ht consumer 6oods and other manufactures& 4er the last 0. years# India;s forei6n trade has under6one a complete chan6e in terms of composition and direction& The exports co4er a 1ide ran6e of traditional and non-traditional items 1hile imports consist mainly of capital 6oods# petroleum products# ra1 materials# and chemicals to meet the e4er-increasin6 needs of a de4elopin6 and di4ersifyin6 economy& <or a!out 9. years (/8=.-8.)# forei6n trade of India suffered from strict !ureaucratic and discretionary controls& 2imilarly# forei6n exchan6e transactions 1ere ti6htly controlled !y the $o4ernment and the 'eser4e Ban> of India& <rom /89: till mid/88.s# India# 1ith some exceptions# al1ays faced deficit in its !alance of payments# i&e& imports al1ays exceeded exports& This 1as characteristic of a de4elopin6 country stru66lin6 for reconstruction and modernisation of its economy& Imports 6alloped !ecause of increasin6 re7uirements of capital 6oods# defence e7uipment# petroleum products# and ra1 materials& Exports remained relati4ely slu66ish o1in6 to lac> of exporta!le surplus# competition in the international mar>et# inflation at home# and increasin6 protectionist policies of the de4eloped countries&

Beginning

id!1==1, the (o0ern ent o% India introduced a series o% re%or s to

li*eralise and glo*alise the Indian econo +. 7e%or s in the e3ternal sector o% India -ere intended to integrate the Indian econo + -ith the -orld econo +. India>s a,,roach to o,enness has *een cautious, contingent on achie0ing certain ,reconditions to ensure an orderl+ ,rocess o% li*eralisation and ensuring acroecono ic sta*ilit+. :his a,,roach has *een 0indicated in recent +ears -ith the gro-ing incidence o% %inancial crises else-here in the -orld. All the sa e, the ,olic+ regi e in India in regard to li*eralisation o% the %oreign sector has -itnessed 0er+ signi%icant change. :he 4oreign :rade ($e0elo, ent and 7egulation)Act,1==2.An Act to ,ro0ide %or the de0elo, ent and regulation o% %oreign trade *+ %acilitating i ,orts into, and aug enting e3,orts %ro Since then has India and %or atters connected there-ith or Incidental thereto. Be it enacted *+ #arlia ent in the 4ort+!third Year o% the 7e,u*lic o% India. ade a re ar.a*le change in its trade to di%%erent destination.

:he econo + o% India is the %ourth largest in the -orld, -ith a ($# o% ?3.@3 trillion, and is the tenth largest in the -orld -ith a ?@=1.= *illion at 200" /S$ e3change rates and has a real ($# gro-th rate o% @.2A.E3,ort re0enues %ro %ro the sector ha0e gro-n ?B *illion in 2003 to ?"@ *illion in 200C. India>s %oreign e3change reser0es are

o0er /S? 102 *illion and e3ceed the %oreign e3change reser0es o% /SA, 4rance, 7ussia and (er an+. :his has strengthened the 7u,ee and *oosted in0estor con%idence greatl+.
Boosted !y the rapid pace of the economic pro6ress# profita!le in4estment re6ime# flexi!le procedural policies 1ith the relaxations introduced in 4arious sectors# has in turn pro4es to !e the horde for the international >ey players in findin6 the ne1 in4estment opportunities in India& 'isin6 trend of the forei6n direct in4estment is also si6nallin6 to1ards the pi4otal role playin6 !y the forei6n direct in4estment in the 6ro1th of the economy& The facts are also standin6 hi6h as in the year -..:-.?# forei6n direct in4estment in India has crossed the mar> of *2@-= !illion# 1hich 1as =0 per cent more than 1hat it 1as in -..0-.:# i&e&# *2@/=&: !illion&

In the first half of the financial year# -..?# IndiaAs forei6n direct in4estment 1as re6istered to !e *2 @B9/ !illion& It has !een projected that durin6 the time period of -..?-.8# the <DI of the country could attract *2@B= !illion& +ore flo1 of the forei6n direct in4estment has !een seen in the s>ill intensi4e and hi6h 4alue added ser4ice industries# especially those 1hich are related to the financial ser4ices and information technolo6y& <urthermore# India has come out as the international ser4ice industry 1ith the more attraction of <DI# pro4idin6 the more unassaila!le lo1 cost opportunities# the pre4alence of hi6h technolo6y and lan6ua6e s>ills and the hi6h supporti4e 6o4ernment policies& 5ompanies from across the 1orld are no1 !usy in e4incin6 their interest into 4arious sectors such as construction# ener6y# electrical e7uipment;s# telecommunication# automo!iles etc& <rom last /. years# IndiaAs 6o4ernment has under6one complete chan6e in its outloo> 1hen it comes a!out the <DI& The forei6n trade policy of India helps in determinin6 the trade relations of the country in a si6nificant 1ay& <or the first time# the 6o4ernment terminated the fi4eyear Exim Policy# -..--.: and replaced it 1ith <orei6n Trade Policy (<TP) for a term of fi4e-year startin6 the fiscal year on the B/st (u6ust -..9& It ta>es an inte6rated 4ie1 of the o4erall de4elopment of the country;s forei6n trade&

2trate6y The o!jecti4e of <orei6n Trade Policy is of t1o-foldC i& ii& To ma>e IndiaAs percenta6e share of 6lo!al merchandiser trade dou!le !y -..8D and To act as an effecti4e instrument of economic 6ro1th !y 6i4in6 a thrust to employment 6eneration# especially in semi-ur!an and rural areas& The >ey strate6ies are of <TP areC i& ii& iii& i4& *nshac>lin6 of controlsD 5reatin6 an atmosphere of trust and transparencyD 2implifyin6 the procedures and !rin6in6 do1n transaction costsD (doptin6 the fundamental principle that duties and le4ies should not !e exportedD 4& Identifyin6 and nurturin6 different special focus areas to facilitate de4elopment of India as a 6lo!al hu! for manufacturin6# tradin6 and ser4ices& <orei6n trade of India has pro4ed to !e the !ac> !one for its economy and has propelled the country;s trade relations to hi6her position& It has sho1n a remar>a!le chan6e from past fe1 decades contri!utin6 for the de4elopment of the country;s trade& 'ole of Exports in Indian Economy The export sector of Indian economy made comprehensi4e pro6ress o4er the last decade& The exponential 6ro1th of the export sector of Indian economy can !e attri!uted to the li!eral $o4ernment of India economic policy& Indian exports had an am!itious tar6et of *2 /0. !illion in -..:-.?& The achie4ement came to the Indian exports in the last fiscal despite the odds a6ainst the exports# minimi3in6 the 6ains& In the first t1o months of -..:-.? exports 6re1 !y -.&BE# 1hich 1as a little lo1er than the pre4ious year o4er the same period a year a6o& +anufactured 6oods from India 6re1 moderately !y /=E in the first 7uarter of -..:--..? as compared to -/&-E in the last fiscal year& Fi6h 4alue commodities li>e en6ineerin6 6oods and rice re6istered 4ery hi6h 6ro1th rate in the /st 7uarter of this fiscal a6ainst the same period last year& The o4erall exports su66est that the Indian exports 6re1

considera!ly across all major exportin6 destinations& The Indian exports to Pa>istan# *(E and Italy sho1ed remar>a!le 6ro1th in the first 7uarter of the current fiscal year& The astronomical 6ro1th of the Indian export sector 1as led !y the follo1in6 industries

Information Technolo6y Telecommunications hard1are Electronics and hard1are Pharmaceutical and !iotechnolo6y products 5onsumer dura!les Textiles 5onstruction machinery Po1er e7uipment <ood 6rains Iron and steel 5hemicals and fertili3ers

The ro!ust o4erall 6ro1th of export sector of Indian economy led to secondary 6ro1th of the follo1in6 economic parameters

IndiaAs economy 6re1 at 8&BE in 7uarter (pril-)une and it 1as dri4en !y manufacturin6# construction and ser4ices sector and a6riculture sector $DP factor for the first 7uarter of -..:-.? 1as at 's&:#-B#/B- crore# re6isterin6 a 6ro1th rate of 8&BE o4er the correspondin6 7uarter of pre4ious year

Exports 6re1 !y /?&//E durin6 the /st 7uarter of -..:--..? and the imports shoot up !y B9&B.E durin6 the same period

IndiaAs < 'EG reser4es (excludin6 $old and 2D's) stood at @-/8&:= !illion at the end of )uly A .:

The annual inflation rate 1as 9&9=E for the 1ee> ended )uly -?# -..: IndiaAs Balance of Payments is expected to remain comforta!le +erchandise Exports recorded stron6 6ro1th

(ccordin6 to reports# producti4ity 6ro1th rate of Indian economy is estimated to !e around ?E and a!o4e until -.-.

(t this stupendous 6ro1th of the export sector of Indian economy# it is expected that India 1ill !ecome the second lar6est economy in the 1orld after 5hina& Export 2ector of Indian Economy has impro4ed immensely o4er the years and has earned *2 @ /-= !illion in the current fiscal year& The 6oods exported from India mainly include 1ide 4ariety of a6ricultural products# chemicals# je1ellery# 6arments# and leather 6oods and so on& India has de4eloped !usiness relations 1ith a num!er of forei6n countries li>e the mem!er countries of 2(('5# some Eastern European countries as 1ell as (frican countries# +em!ers of E*& The impressi4e list of countries includesC

'ussia *(E *2( Fon6 %on6 *% )apan $ermany 2in6apore Bel6ium +alaysia ,etherlands Ban6ladesh Italy Thailand <rance (ustralia

The export sector of Indian economy has al1ays delineated impressi4e 6ro1th in all the areas of export# li>e the chemical industry in the financial year -..=-.0 recorded *2 @ /-0::&-/million from exports# 1hereas the export earnin6s from 6ems and

je1ellery 1as *2 @ /B:.=&99million in the same fiscal& The en6ineerin6 industry has !een performin6 consistently o4er the years in the arena of exports as it secured the second position in terms of the earnin6s from exports in -..9-.=# amountin6 to *2 @ /.=/0&9=million# 1hich increased to *2 @ /9=?:&B:million in the next fiscal& The performance of textile industry has fluctuated a little as the earnin6 of the textile industry from exports in the financial year -..9-.= 1as *2 @ /--.9&:/million 1hich came do1n to *2 @ /-./:&90million in -..=-.0& *2( has turned out to !e the most si6nificant export partner of India and the export sector of Indian economy earned approximately *2 @ /B-0=&0. million in -..0-.:& *(E has stood second only to *2( as *(E contri!uted 8&: out of the total Indian earnin6s from exports in -..0-.:& *% and 5hina has exchan6ed their positions in the current year as 5hinaAs share amon6 the exports fi6ure in India in -..0-.: has impro4ed !y 0&B E in comparison to -..=-.0& In -..9-.= Bel6ium and Italy contri!uted su!stantially to the earnin6s from exports# 1ith a contri!ution of *2 @ -99-&.8 million and *2 @ -/0.&?B million respecti4ely&

Products and sectors en6a6ed in International Trade There (6riculture (6riculture and allied sectors li>e forestry# lo66in6 and fishin6 accounts for -=E of the $DP& It employs almost =?E of the total 1or> force& It is the lar6est economic sector and plays a si6nificant role in the o4erall socio-economic de4elopment of India& Due to steady impro4ement in irri6ation# technolo6y# modern a6ricultural practices the yield per unit area of all crops has increased tremendously& are three major sectors of Indian Economy

Industry Index of industrial production 1hich measures the o4erall industrial 6ro1th rate 1as /.&/E in cto!er -..9 as compared to 0&-E in cto!er -..B& The lar6est sector here holds the textile industry& (utomo!ile sector has also demonstrated the inherent stren6th of Indian la!our and capital& The three main su! sectors of industry 4i3 minin6 H 7uarryin6# manufacturin6# and electricity# 6as H 1ater supply recorded 6ro1ths of =E# ?&?E and :&/E respecti4ely&

2er4ices The ser4ice sector is the fastest 6ro1in6 sector& It has the lar6est share in the $DP accountin6 for a!out 9?E in -...& Business ser4ices# communication ser4ices# financial ser4ices# community ser4ices# hotels and restaurants and trade ser4ices are amon6 the fastest 6ro1in6 sectors& 5omposition of Trade Export 6ro1th has increased in -..B-.9 due to major contri!ution from manufacturin6 sector&

Export of 1heat# 4e6eta!les and fruits# meat and meat preparation has accelerated&

Exports of products such as marine products# cashe1 nuts# spices ha4e declined durin6 -..B--..9&

Iet the o4erall export 6ro1th has 1itnessed a record sur6e in India;s export& The products most commonly exported today are manufacturin6 6oods# chemical products# 6ems and je1ellery# a6ricultural items and textiles&

The rise in imports is also !road !ased& The products imported include 6old and sil4er# consumer 6oods# capital 6oods# food and allied products mainly edi!le oil&

<or the period (pril-,o4em!er -..9-.= imports 1ere 4alued at *2 @ 09-0=&:8 million representin6 an increase of B9&9:E o4er the le4el of imports&

The major export products of India hail from the follo1in6 di4isions 1ithin the export sector of Indian economy li>eC En6ineerin6 $oods (6ricultural Products

5hemicals +arine Products Petroleum products "eather $oods Textiles

(mon6 the a6ricultural exports of India include Indian rice# ra1 cotton# cashe1#

su6ar# to!acco# spices# coffee# 1heat and tea ha4e !ecome 4ery popular in the international mar>et on account of their 4ariety and excellent 7uality& The en6ineerin6 industry ser4es to export electronic 6oods# transport e7uipment;s# iron and steel# and 4arious machineries and the textile industry is en6a6ed in the export of readymade 6arments# jute# cotton yarn# carpets# 1oollen yarn# coir# artificial fa!rics and so on& plastic# ther si6nificant export products include paints# ru!!er# iron ore# pharmaceuticals etc&

The export !arriers in India ha4e !een hamperin6 Indian exports to a 6reat extent and most of such !arriers ha4e !een announced !y the European *nion re6ardin6 certification re7uirements# application of pesticides# dumpin6 of 1aste products& But the most si6nificant export !arrier faced !y the Indian exporters is red tapism 1hich is mostly accompanied !y corruption& Fo1e4er# the 6o4ernment of India has considered plans to li!erate the Indian exporters from the cum!ersome paper 1or>s and simplify the re7uired procedures&

Export Tariffs in India follo1s the re6ulations of the 5ustoms Tariff (ct and a su!stantial num!er of export 6oods are su!jected to tariffs presently# such asC

+an6anese re 5hromium res Blac> Pepper 2illimanite 'a1 Jool $roundnut Tea and so on

+ajor 5ommodities of Export

$ems H )e1ellery Textiles 'eadymade 6arments Dru6s# Pharma H fine chemicals +achinery H Instruments +anufacturer of +etals res H minerals

Prim& H semi fin iron H steel "eather H leather manufactures Transport e7uipment Plastic H linoleum products Electronic 6oods +arine Products Dyes H Intermediates 'u!!er manufactured products

Balance of Payments The trade !alance is often a major determinant of the payments !alance& Trade deficit has often caused !alance of payments deficits for India& Fo1e4er# the effects of trade deficit ha4e !een miti6ated to a considera!le extant !y the in4isi!les surplus& ne of the important reasons for the recent !alance of payments (B P) pro!lem has !een the decline in the role of the in4isi!les surplus in financin6 the trade deficit& Expect for the !rief periods# India;s B P has sho1n deficit& India experienced B P pro!lems of 4aryin6 intensity in most of the years until the early /88.s&

Shrinking foreign trade

I&DI'(s trade deficit during the first three months of current fiscal year ()**+-,*) on a balance of payments (-. ) basis $as large due to the steeper decline in the pace of exports than that of imports %he trade deficit on a -. basis in /, (012 )3.* billion) $as, ho$ever, less than that in /, of )**4-*+ (012 5,.6 billion).

%he 7ey features of India(s -. that emerged in /, of fiscal )**+-,* $ere8

(i) (ii)

%he decline in exports $hich started since .ctober )**4 continued during the first 9uarter of )**+-,*. Import payments, on a -. basis, also continued its declining trend mainly due to lo$er oil import bill: rivate transfer receipts remained buoyant and increased by +.6 per cent to 012 ,5.5 billion during /, of )**+-,*. ;xports of soft$are services, ho$ever, declined during /, of )**+-,*:

(iii)

Despite net invisibles surplus at 012 )*.) billion, the large trade deficit (012 )3.* billion) mainly on account of sharp decline in exports led to a current account deficit of 012 <.4 billion in /, of )**+-,* (012 +.* billion during /, of )**4-*+):

(iv)

!ith the revival in capital inflo$s to India, particularly foreign investments, the capital account sho$ed a turnaround from a negative balance in last t$o 9uarters of )**4-*+ to a positive balance of 012 3.= billion during /, of )**+-,*:

(v)

ortfolio investment $itnessed a sharp turnaround from net outflo$s of 012 ).= billion in /6 of )**4-*+ to net inflo$s of 012 4.5 billion during /, of )**+-,*:

(vi)

&>I deposits also $itnessed higher inflo$s reflecting the positive impact of the revisions in the ceiling interest rate on &>I

@a#or (012

Items

of

IndiaAs

-alance

of

ayments million)

;3<<82<9= ;PR= Exports Imports Trade Balance Invisibles, net Current Account Balance Capital Account* ,33,35 )<==4+ -+,3)3 =6<+)

;3<<92<:= ;P= ,=<,46 )+6<4= -,,+6*5 4+<4=

April2$une April2$une ;3<<92<:= ;3<<:20<= ;PR= ;P= 6+,)* 4*<6< -5,6)< ))6*3 54=4+ 36==< -)<+43 )*,=+

-,=*56

-)+4,=

-+*,+

-<4*4

,*+,+4

+=5=

,,)<6

<+)5

Change in eserves! "# indicates -+),36 increase$% indicates decrease&

deposits: (vii)

)**4*

-))5<

-,,<

%here $as a marginal increase in reserves on -.

basis ( i.e. , excluding valuation) during /, of )**+-,*. ?o$ever, the foreign

exchange reserves including valuation increased by 012 ,5.) billion during /, of )**+-,* implying that the increase in reserves during this period $as mainly due to valuation gains as the 01 dollar has depreciated against ma#or currencies.

Invisibles
(i) During /, of )**+-,*, invisibles receipts declined marginally, $hile invisibles payments recorded a positive gro$th. In net terms, the invisibles balance at 012 )*.) billion $as lo$er than that in the corresponding period of the previous year (012 )).6 billion), though higher than that in /6 of )**4-*+ (012 ,+.5 billion).

Invisibles Receipts

(i) Invisibles receipts registered a marginal decline of *.= per cent in /, of )**+-,* (as against a higher gro$th of 5*.5 per cent in /, of )**4-*+) on account of a decline in almost all categories of services except insurance and financial services and a decline of )*.5 per cent income receipts. 'ccording to the year in investment

(ii) ;xports of soft$are services declined by ,,.< per cent during /, of )**+-,* as against an increase of 5=.3 per cent in /, of )**4-*+. &'11B.@, soft$are services exports are pro#ected to gro$ by 6 to = per cent to 012 64 to <* billion during )**+-,*. the financial

(iii) %ravel receipts at 012 ).5 billion during /, of )**+-,* declined by 4.= per cent as against an increase of ,+.+ per cent in /, of )**4-*+ reflecting a slo$do$n in tourist arrivals in the country since &ovember )**4. 'ccording to the data released by the @inistry of %ourism, foreign tourist arrivals declined by ,.4 per cent in /, of )**+-,*.

Invisibles

ayments

(i) Invisibles payments recorded a positive gro$th of ,,.+ per cent in /, of )**+-,* (,5.< per cent in /, of )**4-*+) mainly due to gro$th in payments under services and income account. In the services account, ho$ever, payments under travel, transportation, G.&.I.;. and soft$are services recorded a negative gro$th in /, of )**+-,*.

(ii) Investment income payments (include mainly the interest payments on commercial borro$ings, external assistance and non-resident deposits, and reinvested earnings of the foreign direct investment (FDI) enterprises operating in India) increased marginally to 012 6.6 billion during /, of )**+-,* (012 6., billion in /, of )**4-*+) mainly due to increased reinvested earnings of FDI companies in India.

Invisibles

-alance

(iii) ' combined effect of decline in invisibles receipts and increase in invisibles payments led to marginally lo$er net invisibles (invisibles receipts minus invisibles payments) at 012 )*.) billion in /, of )**+-,* than that in the corresponding period of the previous year (012 )).6 billion). 't this level, ho$ever, the invisibles surplus financed about ==.= per cent of trade deficit during /, of )**+-,* (=,.5 per cent during /, of )**4-*+).

Burrent 'ccount Deficit

i) Despite net invisibles surplus, the large trade deficit mainly on account of sharp decline in exports led to a current account deficit of 012 <.4 billion in /, of )**+,* (012 +.* billion during /, of )**4-*+).

Bapital 'ccount and >eserves

i) %he gross capital inflo$s to India revived during /, of )**+-,* as compared to the last t$o 9uarters of )**4-*+ manifesting confidence in India(s long-term gro$th prospects. %he gross inflo$s $ere, ho$ever, at 012 =4.< billion as compared to 012 +*.+ billion in /, of )**4-*+ mainly led by inflo$s under FIIs, FDI and &>I deposits. Gross capital outflo$s during /, of )**+-,* stood lo$er at 012 =,.4 billion as against 012 =+.= billion in /, of )**4-*+. (ii) !ith the revival in capital inflo$s to India, particularly foreign investments, the capital account sho$ed a turnaround from a negative balance in last t$o 9uarters of )**4-*+ to a positive balance of 012 3.= billion during /, of )**+-,* (012 ,,., billion in /, of )**4-*+).

(iv)&et FDI inflo$s (net in$ard FDI minus net out$ard FDI) amounted to 012 3.4 billion in /, of )**+-,* (012 +.* billion in /, of )**4-*+). &et in$ard FDI stood at 012 +.< billion during /, of )**+-,* (012 ,,.+ billion in /, of )**4-*+). &et out$ard FDI stood at 012 ).3 billion in /, of )**+-,* as compared $ith 012 ).+ billion in /, of )**4-*+.

(v) During /, of )**+-,*, FDI to India $as channeled mainly into manufacturing sector (,+.) per cent), real estate activities (,<.3 per cent), financial services (,<.6 per cent), construction (,).) per cent) and business services (,,.= per cent). @auritius continued to be the ma#or source of FDI during /, of )**+-,* $ith a share of (vi) 64.+ per cent follo$ed by 01' at ,).4 per cent.

ortfolio investment primarily comprising foreign institutional investors( (FIIs) investments and 'merican Depository >eceipts ('D>s)CGlobal Depository

>eceipts (GD>s) $itnessed a sharp turnaround from net outflo$s of 012 ).= billion in /6 of )**4-*+ to net inflo$s of 012 4.5 billion during /, of )**+-,*. During )**+-,*, the sharp increase in FII inflo$s could be attributed to the recovery of domestic stoc7 mar7et in line $ith international stoc7 mar7ets, better corporate performance, political stability and comparatively better gro$th prospects.

(vii) %he tightness in li9uidity in the overseas mar7ets continued during /, of )**+-,*. %he approvals of external commercial borro$ings (;B-s) $ere very lo$ in the first t$o months of )**+-,*: ho$ever, it recovered during Dune )**+. In addition, repayments of ;B-s $ere higher at 012 )., billion during /, of )**+-,* (012 ,., billion during /, of )**4-*+) resulting in net outflo$s of 012 *.6 billion under ;B-s (inflo$s of 012 ,.< billion in )**4-*+). (viii) %he gross disbursements of short-term trade credit $as 012 ,*., billion during /, of )**+-,* almost same in /, of )**4-*+. %he repayments of short-term trade credits, ho$ever, $ere very high at 012 ,5.) billion in /, of )**+-,* (012 =.4 billion in /, of )**4-*+). 's a result, there $ere net outflo$s of 012 5., billion under short-term trade credit during /, of )**+-,* (inflo$s of 012 ).6 billion in /, of )**4-*+). /, of

(ix) -an7ing capital mainly consists of foreign assets and liabilities of commercial ban7s. &>I deposits constitute ma#or part of the foreign liabilities. -an7ing capital (net), including &>I deposits, $ere negative at 012 5.6 billion during /, of )**+-,* as against a positive net inflo$ of 012 ).= billion during /, of )**4-*+. 'mong the components of ban7ing capital, &>I deposits $itnessed higher inflo$s of 012 ,.4 billion in /, of )**+-,* (net inflo$s of 012 *.4 billion in /, of )**4-*+) reflecting the positive impact of the revisions in the ceiling interest rate on &>I deposits.

(x) .ther capital includes leads and lags in exports, funds held abroad, advances received pending for issue of shares under FDI and other capital not included else$here. .ther capital recorded net outflo$s of 012 ,.3 billion in /, of )**+-,*.

@erchandise %rade
;xports
(i) %he decline in exports $hich started since .ctober )**4 continued during the first 9uarter of )**+-,*. .n a -. basis, India(s merchandise exports recorded a decline of ),.* per cent in /, of )**+-,* as against an increase of 65.* per cent in /, of )**4-*+. (ii) 's per the data released by the Directorate General of Bommercial Intelligence and 1tatistics (DGBIE1), merchandise exports declined by )3.6 per cent in /, of )**+-,* as against a higher gro$th of 5=.6 per cent in /, of )**4-*+, reflecting fall in demand $orld$ide due to the global economic crisis.

INDIA>s cu ulati0e 0alue o% e3,orts %or the ,eriod A,ril! August, 200= -as /S? @"12= illion (7s. 311C1) crore) as against /S ? =2=)= illion (7s. 3=1B"1 crore) registering a negati0e gro-th o% 31 ,er cent in $ollar ter s and 20." ,er cent in 7u,ee ter s o0er the sa e ,eriod last +ear. <u ulati0e 0alue o% i ,orts %or the ,eriod A,ril! August 200= -as /S? 102300 illion (7s. "=C10B crore) as against /S? 1)3@=1 illion (7s. @"B0"1 crore) registering a negati0e gro-th o% 33." ,er cent in $ollar ter s and 23.3 ,er cent in 7u,ee ter s o0er the sa e ,eriod last +ear. ;il i ,orts during A,ril! August, 200= -ere 0alued at /S? 2B2C) illion -hich -as "C." ,er cent lo-er than the oil i ,orts o% /S ? )3C"2 illion in the corres,onding ,eriod last +ear. &on!oil i ,orts during A,ril! August, 200= -ere 0alued at /S? C"02" illion -hich -as 2).= ,er cent lo-er than the le0el o% such i ,orts 0alued at /S?==="= illion in A,ril! August,

200B. :he trade de%icit %or A,ril! August, 200= -as esti ated at /S ?3B1C1 illion -hich -as lo-er than the de%icit o% /S ? @0C32 illion during A,ril!August, 200B

ED#;7:S

IM#;7:S

(A,ril!August,

4Y

200=!10)

In ? Million E3,orts including re!e3,orts 200B!0= 200=!10 =2=)= @"12=

In 7s <rore

3=1B"1 311C1) !20."

(ro-th 200=! 10/200B!200= !31.0 (,ercent) I ,orts 200B!0= 200=!10 1)3@=1 102300

@"B0"1 "=C10B !23.3

(ro-th 200=! 10/200B!200= !33." (,ercent) :rade Balance 200B!0= 200=!10 4igures %or !@0C32 !3B1C1 200B!0= and

!2)@200 !1B)3=3 200=!10 are ,ro0isional

:he trade de%icit %or A,ril! 8une, 200= -as esti ated at ? 1))0" illion -hich -as lo-er than the de%icit at ? 2B@"2 illion during A,ril! 8une, 200B.

Imports

(i) Import payments, on a -. basis, also continued its declining trend. Imports declined by ,+.3 per cent in /, of )**+-,* as against a positive gro$th of 6).+ per cent in /, of )**4-*+.

(ii) 'ccording to the data released by the DGBIE1, the decline in imports is mainly attributed to the sharp fall in oil import payments due to lo$er crude oil prices during /, of )**+-,* (012 35.+ per barrel in /, of )**+-,* as against 012 ,,+ per barrel in /, of )**4-*+). .F imports recorded a sharp decline of <3.+ per cent during /, of )**+-,* as against a sharp increase of =6.) per cent during /, of )**4-*+. 's per the data released by the @inistry of etroleum E &atural Gas, Government of India, .F imports sho$ed a decline of 6<., per cent during /, of )**+-,* despite a 9uantity gro$th of ,* per cent mainly due to lo$er crude oil price.

(iii) 'ccording to the DGBIE1 data, out of the total decline in imports of 012 )3.= billion in /, of )**+-,* over the corresponding previous 9uarter, oil imports declined by 012 ,3.4 billion (share of 35., per cent in the decline in total imports during /, of )**+-,* as against <+.4 per cent share in total increase in imports during /, of )**4-*+), $hile non-oil imports decreased by 012 +.4 billion (share of 53.+ per cent in the decline in total imports during /, of )**+-,* as against 6*.) per cent share in total increase in imports during /, of )**4-*+).

Inflo$s (In

.utflo$s

from

&>I 2

Deposits

and

Focal

!ithdra$als million)

Inflo>s 3<<72<8 ;R= 3<<82<9 ;PR= 3<<92<: ;P= 3<<92<: ;PR= 3<<:20< ;P=
Gariation in

*utflo>s 066:4 3:333 43.8:: 935:

)ocal -it1dra>als 043<9 09:0: 3<.708 6068

0::05 3:5<0 48.<9: :<74

;?0=

;?0=

00083

:465

6679

>eserves

(i) %he increase in foreign exchange reserves on a -o basis ( i.e. , excluding valuation) $as 012 ,,< million in /, of )**+-,* (as against an accretion to reserves of 012 ),)5< million in /, of )**4-*+). ?o$ever, the foreign exchange reserves including valuation increased by 012 ,5.) billion during /, of )**+-,* implying that the increase in reserves during this period $as mainly due to valuation gains as the 01 dollar has depreciated against ma#or currencies. H' ress >elease on the sources of variation in foreign exchange reserves is separately issuedI. (ii) 't the end of Dune )**+, outstanding foreign exchange reserves stood at 012 )3<., billion

J;K I&DIB'%.>1 .F I&DI'A1 -'F'&B; .F 'K@;&%1

'(()% (*
@erchandi"e %rade

'((*% (+

'((*% '((+%-( (+ ",-& ",-& ".& ". &

"/ on Bo. basis& )4.+ 0ro1th ate "percent&

;xports

<.6

65.*

-),.*

"/ on Bo. basis& 5<.) 0ro1th ate "percent&

Imports Brude .il rices, er -arre

,6.5

6).+

-,+.3

l "Indian

Basket& Trade billion&

Invisibles

=+.)

4).6

,,4.4

35.+

Balance

"/

-+,.3

-,,+.6

-5,.6

-)3.*

&et Invisibles

"/ Billion& ".ercent& ".ercent& ".ercent& ".ercent&

=6.3 4,.6 6=.) )4.3 ,5.4

4+.3 =<.* 64., 5*.* ,5.=

)).6 =,.5 66.) )3.) ,5.4

)*.) ==.= 6+.+ )4.+ ,=.)

&et Invisibles 1urplusC%rade Deficit

Invisible >eceiptsCBurrent >eceipts

1ervices >eceiptsCBurrent >eceipts

rivate %ransfersCBurrent >eceipts

Burrent 'ccount

Burrent >eceipts

"/ Billion& "/ Billion& "/ Billion&

5,6.4 55,.4 -,=.*

55=.= 53=.3 -)+.4

44., +=., -+.*

==.< 45.5 -<.4

Burrent ayments

Burrent 'ccount -alance

Bapital 'ccount

Gross Bapital Inflo$s

"/ Billion& "/ Billion&

655.* 5)<.* ,*4.* ,6.5

Flo$s

5*).< )+5.5 +., ,+,.5 -,<5.6 4+.)

+*.+ =+.= ,,., 4*.< -5=.4 ,5.)

=4.< =,.4 3.= ,*,.6 ,)).= -<.5

Gross Bapital .utflo$s

&et Bapital Flo$s

"/ Billion& ".ercent&

InvestmentC&et capital

&et FDIC&et Bapital Flo$s

&et

ortfolio

".ercent&
&et ;B-sC&et capital Flo$s

)=.6 ),.*

".ercent&

>eserves

Import Bover of >eserves

"In months&
as at end period

,6.6

,*.5 )<).*

,5.5 5,).,

,,.6 )3<.,

.utstanding

>eserves

"/

Billion&

5*+.=

$ross

5apital

Inflo1s

and

utflo1s

(In

+illion)

$ross Inflo1s FE(D2

$ross

ut flo1s

April2Marc1 3<<92 <: P 3<<92 <: ;?0= ;PR= 1213C 3<<:20< ;?0= ;P=

April2Marc1 3<<92 <: P 3<<92 <: ;?0= ;PR= 31C0 3<<:2 0< ;?0= ;P= 2CC= 303)C C3C 2""B =3)"

/orei@n Direct InAestment Portfolio InAestment External Assistance

3@2)B

=@12 3B@2) B21 20=2 111C2

1BC@2

12B@)1 "0C@" ),0"2 =0= 2C@0 =0@3

1"2@B) ""=C) 2,"0" C,22" ))B 12=3

External ommercial 1),3B2 Borro>in@s NRI Deposits Bankin@ capital excludin@ NR Deposits '1ort2term trade redits 3C,0B=

32,C== B2"=

2C,=0=

12BB=

""0)

3))=@

1100C

=)BB

3=,C3"

101C@ 0 21C@ :<895

1012@ 0 1@3@ 8959:

"))2= 101 B210

CCC= 30 2@CB

13211 23 32)@ 80864

Rupee DeBt 0 'erAice *t1er apital (*(A) 12,3=1 4<3.56

3:440< 8:84:

Business

2er4ices 'eceipts

(In

@ Payments

+illion)

Item

April2Marc1 3<<82 3<<92 3<<72<8 <9 <: P R PR

April2Marc1 3<<82 3<<92 3<<72 <9 <: P <8 R PR 1,@"2 22B) 1B01 3,)12 3@)3 3"B"

(rade Related

2,00B 2233 132)

Business & Mana@ement ",B"C ""33 ""C@ onsultancC Arc1itectural. En@ineerin@ 1,C)= 31"" 3")C & ot1er (ec1nical Maintenance 2,=B0 2B@1 2@3B of *ffices *t1ers (*(A) ",@)C "100 2@"B 07.36 0788 05655 0 0

3,10@ 31C3 302)

3,2B3 3,"=@ ",032 3,C2@ ",10B 3,)22 06.37 0780 06977 : 6

Need for exports & imports

I ,orts and E3,orts o% goods do inate the interde,endence o% countries in the -orld econo +. E3,orts are the ,art o% a countr+>s do estic ,roduction that is sold to residents o% other countries. I ,orts are the ,art o% a countr+>s do estic consu ,tion and/or in0est ent that is ,urchased %ro %oreign ,roducers.

(n export and import is 4ery much necessary for a country& Because if a country had no import or export# they 1ouldnAt !e a!le support themsel4es& Import is 1hen a country !rin6s thin6s in that they canAt supply& (nd export is 1hen a country 6ets paid to 6i4e a1ay extra stuff they ha4e& Jithout import and export# a country 1ould only ha4e 1hat they could supply on their o1n& In order to de4elop country;s economy# it has to import 1hat it doesn;t produce& The payment for all these imports can !e done only throu6h exportin6 the products and earnin6s throu6h 4alua!le forei6n exchan6e&

NEED */ IMP*R(' IN INDIA

;n the i ,orts side, India has *een in a disad0antageous ,osition, ad0anced countries -hich are ca,a*le o% ,roducing and selling al ost e0er+ co co ,etition. I ,orts are essential to ,rotect do estic industries and to ,ro ote industrial de0elo, ent. odit+ at lo- ,rices. :his eant that India could %oreign not de0elo, an+ industr+ -ithout ,rotecting it %ro

 Since inde,endence, the go0ern ent o% India has *roadl+ restricted %oreign co ,etition through a 'udicious use o% i ,ort licensing, i ,ort 5uotas, i ,ort duties and in e3tre e cases, e0en *anning i ,ort o% s,eci%ic goods.

NEED */ EDP*R(' IN INDIA

:o ,a+ %or its i ,orts and to %or e3,orting9 :he %irst and the ,ri ar+ reason %or e3,orting are to earn %oreign e3change. :he %oreign e3change not onl+ *rings ,ro%it %or the e3,orter *ut also i ,ro0es the econo ic condition o% the countr+. ini iEe de,endence on %oreign countries, an+ good reasons e3,ansion o% e3,orts -as 0er+ essential. :here are

:he co ,anies that e3,ort their goods are *elie0ed to *e e3,orting co ,an+ has sur0i0e the test in standards. 4ree e3change o% ideas and cultural .no-ledge o,ens u, i *usiness and trade o,,ortunities %or a co ,an+.

ore

relia*le than their counter,art do estic co ,anies assu ing that eeting international

ense

;ne starts 0isiting custo ers to sell one>s goodsF he has an o,,ortunit+ to start e3,loring %or ne-er custo ers, state!o%!the!art achines and 0endors in %oreign lands.

Chapter-2 Objectives & Methodology

*BjectiAe of studCE
Pri#ar$ O%&ecti'e :he ain o*'ecti0e o% stud+ is to loo. a%ter the ,attern o% to*acco e3,orting ,rocess in India and to ha0e a *rie% .no-ledge on e3,ort docu entation ,rocedure. Secon ar$ O%&ecti'e :o understand a*out the organiEations su,,orting the to*acco industr+ and to get %a iliar -ith 0arious ter s, a**re0iations, and other ter inolog+ used in the e3,ort ,rocess.

Met1od of studCE
:he data collection has in0ol0ed in t-o ste,s

Pri#ar$ ata
:he ,ri ar+ data -as collected *+ interacting -ith the e3ecuti0es and ,ri ar+ sta%%ing ,eo,le in the co ,an+.

Secon ar$ ata

:he secondar+ data -as collected %ro 'ournals, internet, *oo.s, ne-s ,a,ers and so e others ,rescri*ed *oo.s as suggested.

'cope & limitations of t1e studCE

:his ,ro'ect -or. is %ocussed and con%ined to understanding acti0ities in0ol0ed in the to*acco e3,ort ,rocess and related e3,ort docu entation.

Stud+ on the organiEations su,,orting the to*acco industr+ and e3,ort trade is ini iEed to gi0e ore i ,ortance to the E3,ort 2 $ocu entation ,rocess.

Chapter-3 Company profile

Chapter-4 Indian Tobacco industry

Indian (oBacco IndustrC

Introduction
7ight %ro the *eginning o% 1Cth centur+, :o*acco has *een ,la+ing an i ,ortant role in the %ield o% international trade. :o*acco is one o% the ain co ercial cro, o% India, to*acco consu ,tion is 0er+ high throughout the -orld as -ell as the de and o% to*acco is ulti ate. to eet the de and o% consu ers, an+ countries as India, <hina, BraEil are ,roducing huge a ount o% to*acco e0er+ +ear. India is the third largest ,roducer and eighth largest e3,orter o% to*acco and :o*acco ,roducts in the -orld. Ghile India>s share in the -orld>s area under to*acco cro, has risen %ro =A to 11A in the last 3 decades, its share in ,roduction has inched u, %ro BA to =A in to*acco Industr+. Asia and A erica, together account %or C)A o% -orld>s ,roduction o% to*acco. <hina, /SA and India are the three leading to*acco!,roducing nations in the -orld.

Production area
Andhra #radesh, (u'arat and 6arnata.a account %or the a'or ,ortion (B0A) o% ra- to*acco ,roduction in India. :hese states ,roduce 4<H to*acco, *idi to*acco, natu to*acco, cigar to*acco, cheroot to*acco and snu%% to*acco. ;ther states -hich anu%acture to*acco is Maharashtra, ;rissa, :a il &adu, Gest Bengal, /# and Bihar.

#ro>t1 promotional actiAities

4<H (4lue cured Hirginia) to*acco ,roduction and is regulated *+ :he :o*acco Board. A*out 0.C) n gro-ers are engaged in to*acco ,roduction. Eas+ a0aila*ilit+ o% to*acco has hel,ed de0elo, ent o% cottage industr+ %or anu%acture o% che-ing to*acco, cigar, cheroot, %lu3 etc. Bidi industr+ ,ro0ides e ,lo+ ent to "." n rural ,eo,le, ostl+

-o en and the cigarette industr+ ,ro0ides e ,lo+ ent to 0.)) ,eo,le.

:he to*acco industr+ in India ainl+ co0ers anu%acturing o% cigarettes, *idis, cigars, cheroot, hoo.ah, snu%% and other che-ing to*acco li.e Earda, gut.ha, and ,an asala.

(Cpes of (oBacco
:o*acco is ainl+ concentrated in the states o% Andhra #radesh, 6arnata.a, (u'arat, Maharashtra, Bihar, :a il &adu, and Gest Bengal etc. <igarette to*acco is ainl+ culti0ated in Andhra #radesh and 6arnata.a -hereas Bedi to*acco is gro-n in (u'arat, 6arnata.a, and Maharashtra. <igar and cheroot to*acco are also gro-n in the states o% :a il &adu, Andhra, and -est Bengal. -hereas che-ing to*acco is gro-n in :a il &adu, (u'arat , Bihar, -est Bengal, and utter #radesh. Ioo.ah to*acco is gro-n in utter #radesh and -est Bengal.

(oBacco mainlC exists in t>o tCpesE

4lue cured to*acco9 &on %lue cured to*acco9 1) 4lue cured Herginia 9 :his .ind o% to*acco is ostl+ used in the ,re,aration o% cigarettes. Most o% the countries are concentrating to ,roduce 4<H to*acco due to high de and in it. 2) &on %lue cured to*acco9 :his .ind o% to*acco is generall+ used %or anu%acturing *idis, cigars, ,an asala, snu%% and che-ing to*acco. :here ha0e *een signi%icant i ,ro0e ent in the ar.eting o% 4<H to*acco -ith the esta*lish ent o% :o*acco Board in India. E3cluding 4<H to*acco the ethod o% ar.eting o% to*acco in India di%%ers %ro t+,e to t+,e and state to state.

In the case o% 4<H to*acco the go0ern ent o% India and the :o*acco Board announces ini u su,,ort ,rice e0er+ +ear at the *eginning o% the to*acco ar.eting season -ith an o*'ecti0e o% ,rotecting the interest o% the gro-ers o% 4<H to*acco in India.

Different tCpes of / & toBacco Aarieties

'*I) :Y#ES! (Its characteristics, 'urisdiction, a0erage +ield, e3,ort ,otential, cro, season) a'or 0arieties gro-n,

In India, 4<H (4lue <ured Hirginia) :o*acco is culti0ated ainl+ in the states o% A# 2 6arnata.a %ollo-ed *+ ;rissa 2 Maharashtra in s all areas in 0arious soil Eones under 0aried rain%all conditions. And1ra Prades1E ! (including ;rissa 2 Maharashtra regions) Nort1ern Black 'oils ;NB'= :he *lac. soils located in the districts o% 6ha a , 6ari nagar, Garangal, East and Gest (oda0ari constitutes the &orthern Blac. soils. :he cro, is gro-n under rain %ed conditions ,resentl+ in around 2)00 hectares. :he cro, is generall+ ,lanted in ;cto*er and har0ested in $ec! 4e*. Gith culti0ation o% high +ielding 0arieties ,er hectare +ields are u, to 1)00!1C00 6gs. :he suita*le 0arieties %or culti0ation in this soil Eone are Ie a, and H:11)B. :he to*acco ,roduced is good *odied -ith length+ lea%, le on orange %lash+ in colour -ith ediu nicotine>s. :he to*acco is ostl+ ,re%erred *+ <IS and Eastern Euro,ean Mar.ets. :he do estic cigarette industr+ uses 0er+ little 5uantit+ o% to*acco %ro this region. entral Black 'oils ; B'= :he *lac. soils e3isting in 6rishna and (untur districts o% Andhra #radesh and (adchiroli district o% Maharashtra state constitute the central *lac. soils. :he ain 0arieties gro-n are (o-ta i, Ie a, and H:11)B. :he cro, is ,lanted in ;ct!&o0 and har0ested in $ec!4e*.

:he cro, is gro-n under rain %ed conditions ,resentl+ in around 2B00 hectares. :he +ields are u, to 1)00 to 1@)0 6gs/Ia. :he to*acco ,roduced in this tract is al ost si ilar to that o% &orthern *lac. soils. #re%erred %or e3,orts ostl+ to <IS, Eastern Euro,ean and Gest Asia 2 &orth A%rican ar.ets, 8a,an also used to i ,ort siEa*le 5uantities o% to*acco %ro select areas o% this region in the ,ast. :he do estic

cigarette industr+ also uses siEea*le 5uantit+. Io-e0er, the area under 4<H :o*acco culti0ation is graduall+ decreasing as gro-ers are s-itching o0er to alternati0e cro,s %or 0arious reasons. 'out1ern Black 'oils ;'B'= :he *lac. soils ,resent in #ra.asa and &ellore districts nearer to the coast constitute the Southern *lac. soils. #resentl+ the cro, is culti0ated in a*out 30,000 hectares. :he cro, is ,lanted in ;ct!&o0 and har0ested in $ec!4e*. :he ,o,ular 0arieties gro-n are Ie a, H:11)B and Siri. :he a0erage +ields are around 1)00 6gs/ha. Gith the culti0ation o% high +ielding 0arieties, the a0erage ,roducti0it+ le0els are on increase at a*out 1)00!1@00 .gs ,er ha. :he to*acco ,roduced is le on to le on orange in colour and ediu *odied. :his to*acco is rated *etter in 5ualit+ than the &BS/<BS to*accos. It is highl+ a ena*le %or *lending -ith other st+les o% to*acco in <igarette anu%acturing and hence ,re%erred %or e3,ort to Gest Asia, &orth A%rican countries (Eg+,t and 1i*+a), &e,al and to <IS countries. SiEea*le 5uantities are also e3,orted to Gest Euro,e. Ial% o% the ,roduction goes %or do estic cigarette anu%acturing. 'out1ern )i@1t 'oils ;')'= :he light soils e3isting in #ra.asa and &ellore districts constitute the southern light soils (S1S). #resentl+ this cro, is culti0ated in a*out @),000 hectares. :he soils are suita*le %or gro-ing good 5ualit+ to*acco as a se i onsoon cro,. :he suita*le 0arieties are 8a+ashree, Ie a and H:!11)B. :he cro, is ,lanted in Se,te *er!;cto*er and har0ested in $ec!8an.

:he +ields are around 1000 .gs/ha. Erratic rain%all and drought situations generall+ a%%ect +ields in this Eone. :he lea% is le on to le on orange in colour, thin to ediu *odied, ri,e and o,en grain -ith good aro a and lo- in nicotine. :his cro, is ,re%erred %or e3,ort to /6, South East Asia and other EE< countries. All the M&<s ,re%er this to*acco. :he do estic anu%acturers use su*stantial 5uantities o% this region to*acco %or ho e consu ,tion. Nort1ern )i@1t 'oils ;N)'= :he light soils e3isting in East and Gest (oda0ari and ,arts o% 6ha a districts constitute the &orthern light soils (&1S). #resentl+ this cro, is culti0ated in a*out 2),000 ha. :he soils are sand+ to sand+ loa . :he cro, is raised -ith the hel, o% C!B irrigations, ,roducing se i %la0our%ul to*acco. :he cro, is ,lanted in Se,t!;ct and har0ested in $ec!

4e*. :he +ields are ranging *et-een 1B00!2000 .gs/ha de,ending on stage o% to,,ing. :he suita*le 0arieties are 632@, 1@/103, M<&air!12, (old Strea. and &1S!". :he lea% is ediu to hea0+ *odied, ri,e o,en grained, orange to dee, orange in colour and %lu%%+ in nature. Mostl+ e3,orted to /6 2 other Euro,ean countries 2 South East Asia. All the M&<s ,re%er this to*acco. SiEea*le 5uantities are also used in do estic anu%acturing. :he 1ight soils e3isting in the 7a+agada district o% ;rissa and Hi'a+anagara district o% Andhra #radesh constitute Eastern 1ight Soils and to*acco is culti0ated in an area o% around 200 ha. And the characteristics o% to*acco ,roduced is al ost si ilar to that o% &orthern 1ight Soils o% Andhra #radesh. KARNA(AKA Karnataka )i@1t 'oils ;K)'= :he light soils e3isting in M+sore, Iassan, Shi oga, $a0angere, <oorg, <hi..a agalore and <hitradurga districts constitute the light soils o% 6arnata.a. :he cro, in this transitional Eone is raised as a onsoon cro, -ith su%%icient rain%all during the cro, gro-th ,eriod. #resentl+ the cro, is gro-n in a*out B)000 hectares. :he cro, is ,lanted in the last -ee. o% A,r!Ma+ and har0ested in 8ul+!Aug. #er ha +ields are around 12)0 .gs. :he 0arieties under culti0ation are 6anchan, Bha0+a, 632@, 7atna and 6S:!1=. :he to*acco ,roduced is light to ediu *odied, le on orange to orange in colour, so%t in nature, o,en grained -ith nicotine o% 1.) to 2.2A. Gest Euro,ean, so e A%rican, Middle East and South East Asian countries ostl+ ,re%er this to*acco.
Different tCpes of / & toBacco Aarieties

Brie% note :his to*acco is on the t+,e o% neutral o% :o*acco character and *lends -ell -ith an+ to*acco #lantation

It is ri,e :his to*acco is to*acco, se i! a good %iller lo%la0our%ul to -ith nicotine and %la0our%ul -ith good aro a and *lends -ell -ith e3cellent aging an+ to*acco. ,ro,erties Se,te *er ;cto*er

:his is lonicotine, good neutral %iller and *lends -ell -ith an+ to*acco.

Mid ;cto*er to Earl+ ;cto*er %irst -ee. o% &o0e *er in Andhra #radesh. Earl+ Ma+ in

to Earl+ Ma+

6arnata.a Mar.eting 4e*ruar+ to 4e*ruar+ to 8une 8une in Andhra #radesh. Se,te *er to 4e*ruar+ in 6arnata.a 8anuar+ to 8une Se,te *er 4e*ruar+ to

#h+sical <haracteristics <olor 9 1ea% siEe 9 #ore Holu e ( l/gra ) 9 4illing Halue (cc/gra ) 9 &icotine 9 7educing Sugars 9 <hloride (A) 9 1e on Mediu 1arge 0.13 to 0.1) 2.@ to 2.B 1e on!;range to ;range to 1arge 0.13 to 0.1) 2.@ to 3.) 1e on!;range to ;range S all Mediu 0.13 to 0.1) 2.@ to 3.) 9 1e on! ;range to ;range to 1arge 0.13 to 0.1C

2.= to 3.B

<he ical <haracteristics 1.) to 2.2 10 to 1B 9 0.) to 0.= 1.) to 2.2 10 to 1B 0.) to 1.) 1.) to 2.2 10 to 1B 0.) to 0.= 1.2 to 2.) 10 to 23 0.2 to 0.@

(oBacco IndustrC
:o*acco industr+ in India contri*utes in an uni5ue anner to se0eral i ,ortant %acets o% the Indian econo ic co0ering re0enue, e3,ort, e ,lo+ ent and ($# gro-th. Gorld to*acco de and is e3,ected to increase until the +ear 2010 due to ,o,ulation and inco e gro-th, *ut at lo-er rates than in the ,ast, according to a ne- stud+ ,u*lished *+ 4A; toda+. Ghile in de0elo,ed countries to*acco s o.ing is set to continue to decline, in de0elo,ing countries consu ,tion -ill increase, the re,ort said (#ro'ections o% to*acco ,roduction, consu ,tion and trade to the +ear 2010). Gorld to*acco ,roduction is ,ro'ected to reach o0er C.1 illion tonnes

o% to*acco lea% in the +ear 2010, u, %ro ).= illion tonnes in 1==C/==. :his is lo-er than the record to*acco ,roduction o% 1==2 o% C.) illion tonnes. :he nu *er o% s o.ers is e3,ected to gro- %ro 1.1 *illion in 1==B to around 1.3 *illion in 2010, according to the re,ort. :his is an increase o% a*out 1.) ,ercent annuall+. $es,ite the o0erall increase o% to*acco use, 4A; e3,ects consu ,tion ,er adult to decline *+ around 10 ,ercent *+ 2010, and indi0idual consu ,tion -ill ,ro*a*l+ *e around 1." .g ,er +ear (%ro around 1.@ .g in 2000). A,,l+ing an aggressi0e anti!s o.ing and anti!to*acco ,olic+, to*acco consu ,tion ,er ,erson could e0en dro, *+ 20 ,ercent, 4A; said. <onsu ,tion ,er ,erson is declining in de0elo,ed, and odestl+ declining in de0elo,ing countries, including <hina. <igarette s o.ing is the ost ,re0alent t+,e o% to*acco consu ,tionF anu%actured and hand rolled cigarettes account %or a*out B) ,ercent o% all to*acco consu ed -orld-ide. Gith around 320 illion s o.ers, <hina is the -orld>s a'or cigarette consu er. A*out 100 countries ,roduce to*acco, the a'or ,roducers are <hina, India, BraEil, the /S, :ur.e+, Ji *a*-e and Mala-i, -hich together ,roduce o0er B0 ,ercent o% the -orld>s to*acco. <hina alone accounts %or o0er 3) ,ercent o% -orld ,roduction.

(oBacco onsumption
B+ 2010, the share o% de0elo,ed countries in -orld to*acco consu ,tion is ,ro'ected to *e onl+ 2= ,ercent (1==B9 3" ,ercent), the share o% de0elo,ing countries -ill *e C1 ,ercent. :he o0erall ,attern o% to*acco consu ,tion is in%luenced *+ t-o di0ergent trends. :o*acco de and in de0elo,ed countries is declining slo-l+ and -ill reach a*out 2.0) illion tonnes in 2010. :his is 10 ,ercent lo-er than 2.23 illion tonnes consu ed in 1==B. :his can *e attri*uted to a slo-er ,o,ulation and inco e gro-th.

In addition, in de0elo,ed countries and increasing a-areness o% the da aging health e%%ects o% s o.ing, together -ith the anti!s o.ing easures o% go0ern ents including intensi%ied anti!s o.ing ca ,aigns, the *anning o% ad0ertising and increased ta3ation, ha0e had a strong negati0e e%%ect on consu ,tion o% to*acco ,roducts, the re,ort said. But ore to*acco -ill *e s o.ed in de0elo,ing countries, -here to*acco consu ,tion is e3,ected to gro- to ).0= illion tonnes *+ 2010 ( %ro ".2 illion 1==C/==). :his is an a0erage annual gro-th rate o% 1.C ,ercent *et-een 1==B and 2010, signi%icantl+ lo-er than the 2.B ,ercent rate o*ser0ed in de0elo,ing countries *et-een 1=C1 and 1==B. A a'or ,art o% the ,ro'ected increase in de and is e3,ected to *e in the 4ar East, ,articularl+ in <hina. :he share o% <hina in total -orld to*acco de and is li.el+ to re ain around 3C ,ercent in 2010. In India, the second ost i ,ortant to*acco consu er, s o.ing o% con0entional cigarettes accounts %or onl+ 2) ,ercent. Most ,eo,le consu e to*acco in the %or o% non!cigarette ite s such as hand!rolled *idis, che-ing etc. :otal de and %or to*acco in India is li.el+ to continue to increase, *ut ore slo-l+ than in the ,re0ious decades. In 1atin A erica, to*acco use in 1==B -as a*out 0."B illion tonnes, o% -hich 'ust o0er hal% -as in BraEil. $e and in the region is e3,ected to increase odestl+ until 2010, and ost o% the increase -ill occur in BraEil. In A%rica, total to*acco de and increased in the 1==0s -ith record gro-th o% 3.) ,ercent ,er +ear. (ro-th %or the ,eriod to 2010 is e3,ected to continue at a si ilar rate. In the &ear East, the de and %or to*acco is e3,ected to gro- at 0."2A, a gro-th rate a little lo-er than e3,erienced in the 1== <he-ing to*acco has *een a tradition in India %or centuries. ;% the total a ount o% to*acco ,roduced in the countr+, around "BA is in the %or o% che-ing to*acco, 3BA as *idis, and onl+ 1"A as cigarettes. :hus, *idis, snu%% and che-ing to*acco (such as gut.a, .haini and Earda) %or the *ul. (B@A) o% India>s total to*acco ,roduction. In the rest o% the -orld, ,roduction o% cigarettes is =0A o% total ,roduction o% to*acco related ,roducts.

:he ,er ca,ita consu ,tion o% cigarettes in India is erel+ a tenth o% the -orld a0erage. :his uni5ue to*acco consu ,tion ,attern is a co *ination o% tradition and ore i ,ortantl+ the ta3 i ,osed on cigarettes o0er the last 2 decades. <igarette s o.ers ,a+ al ost B)A o% the total ta3 re0enues generated %ro to*acco. India is the second largest ,roducer o% to*acco in the -orld a%ter <hina. It ,roduced )C2 .gs o% to*acco in 4Y03. Io-e0er, India holds a eagre 0.CA share o% the /S ? 30 *n glo*al trade in to*acco, -ith cigarettes accounting %or B)A o% the countr+>s total to*acco e3,orts. $es,ite *eing the second largest ,roducer, India is onl+ the ninth largest e3,orter o% to*acco and to*acco ,roducts in the -orld. ;ut o% the total to*acco ,roduced in India, onl+ one!third is %lue!cured to*acco suita*le %or cigarette anu%acturing. Most o% the to*acco ,roduce is suita*le %or the anu%acture o% che-ing to*acco, *idis and other chea, to*acco ,roducts, -hich ha0e no de and outside the countr+. In India, three a'or <igarette ,la+ers do inate the ar.et, ,ri aril+ I:< -ith C2A ar.et share, (od%re+ #hilli,s -ith 12A and HS: -ith BA share o% the ar.et.

Chapter-5 Importance export documents in trade of

(1e Importance of Export Documents in (rade

:rade o0erseas needs the su,,ort o% e3,ort docu ents. ;,erations -ith %oreign countries are ade 0er+ co ,le3, the sellers ust e3,lain -hat the+ are selling and the *u+ers ust .no- -hat the+ are *u+ing. 4or that reason, -e use the %ollo-ing e3,ort docu ents9 So e o% e3,ort docu ents are used %or co ercial ,ur,oses li.e *ills, notes and -eight ,ac.ing. :here are also docu ents to guarantee the 5ualit+ o% -hat is *eing e3,orted. Insurance docu ents certi%+ -hat is co0ered *+ insurance. Bills o% lading are e3a ,les o% trans,ort docu ents. :here are di%%erent e3,ort docu ents that do not o%%er the sa e *ene%its to each user. 1etters o% credit are an instru ent that guarantees to the seller that he or she -ill *e ,aid %or the erchandise sent -hen it atches the criteria set in the contract *+ the i ,orter. Most are irre0oca*le and con%ir ed, -hich eans that the+ cannot *e odi%ied *ut -ith the consent o% the ,arts in0ol0ed. Additionall+, these docu ents relie0e the e3,orter %ro an+ -orr+ a*out non!,a+ ent. :he e3,ort docu ents can *e re0oca*le or irre0oca*le, con%ir ed or noti%ied.

7e0oca*le docu ents gi0e the holder the a*ilit+ o% odi%+ing the -ithout the consent o% the other ,arts. Ban.s a+ also reser0e the right to gi0e or re%use ,a+ ent. Irre0oca*le9 the *an. cannot re0erse its co it ent, -hate0er the changing circu stances o% his client, unless the agree ent o% all ,arties concerned. &oti%ied docu ents gi0e ,rotection to the e3,orter *ut onl+ to a certain degree. :he+ -ill not co0er %or natural, ,olitical or trans%er!related ,ro*le s. <on%ir ed, -here the co it ent o% the *an.er o% the i ,orter is su,,orted *+ a *an.er in the countr+ o% the e3,orter. :he e3,orter ust %ull+ res,ect its o*ligations and it is guaranteed to *e ,aid. E3,orters run a series o% ris.s -hen 0enturing into ne- lands. 4irst o% all, the+ ris. not *eing ,aid *+ the i ,orter in the %oreign countr+.

Secondl+, i% the+ do not .no- the ,olitical and econo ic situation o% the countr+ the+ are e3,orting to, the+ ris. losing their one+. Another ris. the+ ta.e is related to the e3change rates. E3,ort docu ents e3ist to relie0e these ris.s. E3,ort docu entation is i ,ortant, as it co0ers all areas o% shi,,ing ite s, %ro ,ac.ing and la*elling to insuring the goods. I ,ortant ite s are *eing shi,,ed *+ rando carriers to %ar!o%% custo ersF itKs necessar+ to %ile accurate ,a,er-or. to ensure deli0er+.

EDP*R( IN EN(I&E'

:he go0ern ent o% India has %ra ed se0eral sche es to ,ro ote e3,orts and to o*tain %oreign e3change. :hese sche es grants incenti0e and other *ene%its. :he %e- i ,ortant e3,ort incenti0es, %ro the ,oint o%

0ie- o% indirect ta3es are *rie%ed *elo-9

1. 4ree :rade Jones (4:J). 2. Electronic Iard-are :echnolog+ #ar./ so%t-are technolog+ ,ar.s. 3. Ad0ance 1icense / $ut+ e3ce,tion Entitle ent sche e($E4<) ". E3,ort #ro otion <a,ital (oods Sche e (E#<().

INDIAN EDP*R('

Indian e3,orts ha0e gro-n at a rate o% nearl+ 22A. So e co Indian>s e3,orts are

odities ain

ha0e en'o+ed %aster e3,ort gro-th than others. So e o% the

Exports

C @/== !illion f&o&! (-..8 est&)

$oods exported

C 2oft1are# petroleum products# textile 6oods# 6ems and je1elery# en6ineerin6 6oods# chemicals and leather manufactures&

+ain export partners

C *2 /-&BE#

*(E 8&9E#

5hina 8&BE (-..?)

Imports

C @-B-&B !illion f&o&! (-..8 est&)

Import 6oods

C crude oil# machinery# 6ems# fertili3er# chemicals

 So%t-are, :o*acco, <otton, :e3tiles, 8ute good, tea, <o%%ee, 7ice, Gheat, <ocoa ,roducts, 8a s 8uices 2 ,reser0ed 0egeta*les etc. India e3,orts its goods to so e o% the leading countries o% the -orld such as9 /SA BE1(I/M 7/SSIA <II&A

RE'ER&E' */ /*RED
:he %oreign e3change %inancial ar.et (4;7ED) is a -orld-ide decentraliEed ar.et %or the trading o% currencies. 4inancial centres around

the -orld %unction as anchors o% trading *et-een a -ide range o% di%%erent t+,es o% *u+ers and sellers around the cloc. -ith the e3ce,tion o% -ee.ends. :he %oreign e3change 0alues o% di%%erent currencies. :he ,ri ar+ ,ur,ose o% the %oreign e3change ar.et is to assist ar.et deter ines the relati0e

international trade and in0est ent, *+ allo-ing *usinesses to con0ert one currenc+ to another currenc+. 4or e3a ,le, it ,er its a /S *usiness to i ,ort Euro,ean goods and ,a+ Euros, e0en though the *usiness>s inco e is in /S dollars. It also su,,orts s,eculation, and %acilities the carr+ trade in -hich in0estors *orro- lo-!+ielding currencies and lend (in0est in) high!+ielding currencies and -hich co ,etiti0eness in so e countries. a+ lead to loss o%

Chapter-6
THEORETICAL FRAMEWORK OF EXPORT PROCEDURE

(!E*RE(I A) /RAME-*RK */ EDP*R( PR* ED%RE

EDP*R( PR* ED%RE

<hoosing the *u+er. 7e5uire ent o% license. Sa ,ling. &egotiations. Indication letter. 4inancial arrange ents. #urchase o% to*acco. Insurance. <lassi%ication o% to*acco :hreshing ,rocess.

 4u igation. Ins,ection. Shi,,ing instructions. Shi, ents.

:hese are the ste,s in0ol0ed in e3,ort ,rocedure. 1et us see into a *rie% detail9
!**'IN# (!E B%"ER9

Be%ore entering into trade the su,,lier has to choose the *u+ers> -here their ,roducts ha0e

ar.et

ore de and. :he trader has to .no- the aintain trade

geogra,hical, ,olitical and social situation o% the countr+. I% the trader satis%ies -ith the conditions o% the countr+, then the+ -ill relations -ith that countr+.

RE?%IREMEN( */ )I EN EE

A%ter selecting the

ar.et -e ha0e to ta.e license to e3,ort goods %ro 4or e3,ort o% goods the %ollo-ing

one countr+ to another countr+. license should *e needed.

1) E3,ort 2 I ,ort license. 2) :o*acco Board license. 3) 7A: (sale ta3) license.

'AMP)IN#E

According to the re5uire ent o% the *u+er the e3,orter ha0e to see the ,ractical a0aila*ilit+ o% the ,roduct. :he 5ualit+ o% the ,roduct ust *e .no-n to the *u+er through sa ,ling. :he ,ac.ed sa ,les are sending to the *u+er %or %uture e0idence. :he sa ,les are send to *u+er, agent. ;ne sa ,le ust *e -ith the e3,orter -hich is use%ul to chec. the 5ualit+ o%

e3,orting goods.
Dependin6 upon the re7uirement of the !uyer samples 1ith chemistry (nicotine# su6ars H chlorides) must !e dispatched in lo1er 7uantity (-=.6ms) throu6h air car6o# E-mail or !y sendin6 photos as 6rade 1ise and !y >eepin6 a counter sample 1ith us& 5ounter 2ampleC-Ia0ing

a sa ,le o% the e3,orted ,roduct -ith us and the atch the

sa e sa ,le -ith the i ,orter .e,t in the dee, %ridge to 5ualit+ -e send in *ul. to the i ,orter.

A sa ,le -ith us sa e sa ,le -ith <usto er

NE#*(IA(I*N'9

;nce the sa ,les are acce,ted then negotiation o% ,rice 2 ,a+ ent conditions is done. Ge -ill get indication letter in ter s o% grades. In

general negotiations re%ers to

#rice #ac.ing details <o ercial in0oice

Geight list

A#REEMEN(E

A%ter the a,,ro0al o% ,a+ ent ter s, a contract is

ade -ith the

custo er according to his ter s and conditions. In order to a0oid dis,utes, it is necessar+ to enter into an e3,ort contract -ith the o0erseas *u+er. 4or this ,ur,ose, e3,ort contract should *e care%ull+ dra%ted incor,orating co ,rehensi0e *ut in ,recise ter s, all rele0ant and i ,ortant conditions o% the trade deal. :here should not *e an+ a *iguit+ regarding the e3act s,eci%ications o% goods and ter s o% sale including e3,ort ,rice, and distri*ution schedule etc. ode o% ,a+ ent, storage ethods, t+,e o% ,ac.aging, ,ort o% shi, ent, deli0er+

#roduct, Standards and S,eci%ications. Luantit+, Lualit+. Ins,ection.

 :er s o% deli0er+. #eriod o% deli0er+. :a3es, $uties 2 <harges. :otal 0alue o% contract. #ac.ing, 1a*eling 2 Mar.ing. :er s o% ,a+ ent.

/INAN IA) ARRAN#EMEN(E

4or the sa.e o% e3,orts -e need so e ca,ital. :hough the ca,ital %or s are di%%erent, the *an.s are *eco ing ain source to ,ro0ide ca,ital %or e3,orts. &or all+ a *an. allo-s %inance %or e3,orts at B.C)A interest %or the encourage ent o% e3,orts. :he insurance co0erage %or e3,orts is a*out 1B0da+s. Ban. loan is gi0en -ith suret+ -hich is called M<;11E:E7A1 ASS/7A&<EN.

P%R !A'E */ (*BA

:o*acco is ,urchased %ro ,lat%or acce,ts

*E
:;BA<<; B;A7$ through auction illion .gs. :he to*acco *oard auction %or s *+

,lat%or s. :he ideal 5uantit+ o% to*acco to *e handled in an auction in Indian conditions is ) to @ ore than 10 illion 6gs. A ong the 0arieties the trader has to

select the de anded 0ariet+. #urchase o% to*acco %ro sending M:E<I&I<A1 B/YE7SN.

)A''I/I A(I*N */ (*BA

(rading o% to*acco :hreshing o% to*acco Storage in -arehouses 4u igation

*E

;0= $radin6C !
(rading is done as ,er the re5uire ent o% the custo ers. A%ter the *ales are *rought their ,osition are -atched and according to their condition the+ are re o0ed %ro .ee, the *ales and i% the+ are dried -ater to oisture the lea0es is s,rin.led o0er the lea% and gunn+ *ags are ,laced o0er the -et, -hen the+ are ha0ing ,ro,er

are graded as ,er classi%ication. :hen the+ are se,arated (and the+ are) ,ac.ed and ta.en to threshing ,lant. :o ha0e a *rie% idea, so e o% the grades are as %ollo-s

#radin@ Process
(*BA * PR* E''IN#

:here are 0arious %or s o% to*acco ,rocessing threshing is the ain

ethods. :i,,ing and ost co on idri*

ethod in use toda+. :his is the each indi0idual lea% (la ina).

,rocessing techni5ue -here the o*'ecti0e is to re o0e the (*ac.*one ste ) %ro

;I= (!RE'!IN# PR*

E''9

:he ,rocess o% threshing to*acco is co ,lete and in0ol0es a series o% ste,s -here the ,roduct is conditioned -ith heat and oisture to hel, the ,roduct *eco e so%t and ,lia*le. :he threshers hel, se,arate the idri* %ro the la ina *+ a tearing action -hich is created *+ rotors -ith *oth %i3ed and rotar+ .ni0es ,laced a*o0e a sha,ed *as.et o% di%%erent ,atterns and siEes. ;nce this is done 0arious air se,aration de0ices, .no-n as classi%iers, are used to se,arate the lights, the la ina %ree o% ste la ina still attached to the ste . $ue to the nature o% to*acco lea% not all la ina is re o0ed on a single ,ass o% threshing and se,arating. :here%ore this ,rocess occurs as ti es as re5uired through the ,rocessing line to ensure an+ a3i u %ro the Mhea0iesN, the

re o0al o% la ina in as large as ,ossi*le siEes -ith as least da age and stress to the la ina as ,ossi*le. :he industrial standard %or this is nor all+ through ) stages o% threshing -ith a 0ar+ing nu *er o% classi%ier to achie0e a3i u e%%icienc+.

;nce threshing is co ,leted all the ,roducts ,ass through a dr+ing ,rocess -here the co ,lete %lo- o% ,roduct is su*'ected to heated air %lo-s, %ro *oth a*o0e and *elo- the ediu o% trans,ort o% the oisture -ithin each ,roduct .no-n as an a,ron. Iere the contained the ,articles to a

indi0idual ,article -ill, through os osis, intentionall+ *e dri0en out o% easured ,ercentage re aining in the collecti0e oisture le0el. :his is done oisture content. ,articles and should a0erage out at an e0en %or ,recise control o% %inal

A%ter the ,rocess the ,roducts are ,ac.ed into s,eci%ic ,ac.ages and ar.ed accordingl+ *e%ore shi, ent to custo ers.

?%A)I(" *N(R*)E

:here are " stages o% 5ualit+ test. :he+ are 1) #article siEe distri*ution stage (#S$). 2) Ste test 3) %i*re ProcessE A sa ,le o% 3.g %ro redr+er is collected 2 the+ are dro,,ed into ,article siEe distri*utor, -here it distri*utes the la ina into res,ecti0e *o3es according to its la ina siEes. :here are ) t+,es o% siEes in -hich 1 inch, O inch, P inch, and 1/B inch torn/dust. :he total ti e ta.en in this stage is C.) in .-eights o% each *o3 is ta.en and noted

'tem testE :he total ti e esti ated is " in. here the sa ,le is dro,,ed into the thresher -here the ste and -eight is noted. /iBreE In the 1st *o3 there threshing control. I% ore ste ust not *e an+ ste s, i% there are control an+ ste s the 2 la ina gets se,arated. :he+ are ,assed ,assed do-n is collected through <4< -here la ina is *lo-n u, 2 ste

ust *e sto,,ed. :he ste

ainl+ de,ends on 5ualit+

are a,,earing than the target -eight then the

5ualit+ in charge instructs to increase cutting the lea% 2 to chec. %or less ste s

)aBoratorCE

In the ,rocess o% threshing sa ,les %ro are grinded into ,o-der *+ grinding

dri%t ,laces are collected 2 the+ achine. 10g s o% each sa ,le is in the+ are ta.en out 2 the

ta.en into s all *o3es ha0ing holes on to, and -eight is noted. :hen the+ are .e,t in B7ABE&$E7. A%ter 30 -eight is also noted. :he reduction in -eight is due to decrease in oisture content. :he re aining is %i*re content 2 to i ,ro0e 5ualit+ that the in charge suggests the redr+ing o,erator. :hose *o3es are .e,t in ;0en>s roo , results can *e %ound in 2" hrs. At the end o% the threshing ,rocess, the lea0es that -e *ought a%ter grading are utiliEed %or di%%erent ,ur,oses, e3ce,t &:7M. A%ter all the ,rocess is o0er the %loor is neatl+ s-i,ed and the scra, collected is also sold to do estic *u+ers and is also e3,orted, B+ this -e can sa+ that nothing is -asted in this threshing ,rocess. A%ter the retr+ing ,rocess, the stri,s are ,ressed into *ales, t+,icall+ siEed %or <"B cases, occasionall+ %or hogsheads or other siEes. 'crap & 'tem9 :he scra, that is o*tained a%ter threshing is also ,ac.ed and sold in the do estic #an etc., ar.et %or the usage o% ,roducing Beedis and

;ii= '(*RA#E IN -ARE!*%'E'9

A -arehouse is a co are used *+

ercial *uilding %or storage o% goods. Garehouses

anu%acturers, i ,orters, e3,orters, -holesalers, trans,ort

*usinesses. <usto s, etcQQ Iere, the threshed to*acco is stored in the -arehouses until the+ are e3,orted.

;iii= /%MI#A(I*NE

4u igation is a

ethod o% ,est control that co ,letel+ %ills an area -ith

gaseous ,esticides or %u igants to su%%ocate or ,oison the ,ests -ithin. It is utiliEed %or control o% ,ests in *uildings soil, grain, and is also used during ,rocessing o% goods to *e i ,orted or e3,orted to ,re0ent trans%er o% e3otic organis s. :he %u igated containers should *e enclosed %or a*out C2hrs o% e3,orting.

IN'PE (I*N9

7ando l+ chec.ing o% the ,ac.ed cartons in Eeroes or ones to 0eri%+ the 5ualit+ -hether the+ are atched -ith the sa ,le or not.

Ins,ection *+ custo er -hich is called as M#7E!SII#I&(N ins,ection. ;ne technical ,erson and custo er ca e to co ,an+ and ins,ect the storage aterials rando l+. Ie a+ as. an+ che istr+ details. :he a.ing achine to chec. the trader has to ,ossess a sa ,le cigarette

le0els o% chlorides ordered *+ *u+ers. :his is called MSM;6E :ES:N.

Pre2s1ipment Inspection & s1ippin@ instructionsE !

7e,resentati0e o% the custo er -ill 0isit the consign ent i.e., is called. I% the sa ,le atches -ith the consign ent, then he allo-s %or the e3,orts. :hen onl+ he can issue the shi,,ing instructions.

'!IPPIN# IN'(R% (I*N'9

Luantit+ &u *ering $estination address Ban.er address 4inal destination address #a+ ent ter s

:he docu ents are arranges according to the shi,,ing instructions.

*N(RA ( /*R #**D'

At the ti e o% deli0ering the ,roduct, a docu ent is signed *+ the *u+er and e3,orter i.e.., *oth the ,arties. :he trader should get the ,er ission %ro custo s agenc+ %or clearance.

EDP*R(E 2

As ,er the contract esti ated ti e le%t %or the deli0er+, the e3,orter tal.s to a liner -ho ,la+s a :here are t-o ain role in loo.ing a%ter the %urther acti0ities. ain acti0ities

1. 4;B (4ree on Board) 2. <I4 (<o ission Insurance 2 4reight)

/*B ;/ree on Board=9 ! :his is an acti0it+ -here the e3,orter has the res,onsi*ilit+ o0er the goods u,to recei0ing the *ill o% lading (B/1). I/ ; ommission Insurance & /rei@1t=9 ! :his is an acti0it+ -here the e3,orter has the res,onsi*ilit+ o0er the goods till the+ reach the i ,orter. According to our order the liner ,ro0ides the loading o% cartons %ro eans o% trans,ort %or the

the -are house into the container and *ring the dut+ is to chec. the container -hether odit+, 5uantit+ 2 then he seals 2 declaration %or . a.e the

to Inland container Area (I<A). :his area is under the control o% the custo s de,art ent. :he custo it is ,er%ect or not as ,er the grades, co

the container 2 issues the Shi,,ing *ill, S$4 %or

:hen the container is %or-arded to liner -ho gi0es the *ill o% 1ading (B/1). Be%ore issuing the B/1, it is the dut+ o% the liner to container sure that container has recei0ed the %ollo-ing certi%icates.

1. 8$ Board o% ser0ices 2. 4u igation <erti%icate 3. <erti%icate o% ;rigin. $D Board of serAices9 ! <hec.s the container ,ro,erl+ -hether <ontainer has no s ell, holes, 2 ,ro,erl+ ,ac.ed, 2 then issues a certi%icate according to it.

/umi@ation ertificate9 ! :his de,art ent ,roduces a certi%icate that the container is %ree %ro aintained. ertificate of *ri@in9 ! :his certi%ies that the goods in the cartons are %ro the res,ecti0e origin countr+ -here the+ are originated. *eetles, 2 the oisture content is ,ro,erl+

4inall+ the containers are ,laced in the 0essel, and then all the certi%icates are send to e3,orter. :hen the e3,orter ,re,ares the re aining docu ents as ordered *+ the *u+er. Examples9 ! a) #h+to sanitar+ *) (S# %or %or to*acco e3,orts, i% necessar+ as.ed *+ the *u+er.

:hen *+ adding those docu ents e3,orter ,re,ares re5uired docu ents as <o the ercial In0oice, Sight dra%t etc., then %inall+ a%ter ,lacing all the docu ents in the order e3,orter su* it those docu ents to the *an. %or one+. ainl+ loo.s %or <o ercial in0oice, Sight $ra%t, ED

Iere the *an. gi0e the

co,+ o% shi,,ing *ill ,roduced *+ the custo s de,art ent, later the+ one+ re5uired.

Post s1ipment Inspection9 !

A%ter reaching the ,ort, the re,resentati0e o% custo er chec.s -hether the to*acco is as ,er the sa ,le or not, ,ercentage o% the &:7M in to*acco 2 the ,ercentage o% ,ests (*eetles) in the to*acco. I% the *eetles are ore than %i3ed a ount then he a+ as. %or legal clai or return the goods.

M*DE */ PA"MEN(
Financial assistance to the exporters are generally provided by Bommercial -an7s, before shipment as $ell as after shipment of the said goods. %he assistance provided before shipment of goods is 7no$n as per-shipment finance and that provided after the shipment of goods is 7no$n as post-shipment finance. re-shipment finance is given for $or7ing capital for purchase of ra$-material, processing, pac7ing, transportation, $are-housing etc. of the goods meant for export. ost-shipment finance is provided for bridging the gap bet$een the shipment of goods and reali"ation of export proceeds. %he latter is done by the -an7s by purchasing or negotiating the export documents or by extending advance against export bills accepted on collection basis. !hile doing so, the -an7s ad#ust the pre-shipment advance, if any, already granted to the exporter. ,. ). Fetter of Bredit (FB) Documents 'gainst ayment (D )

Fetter of Bredit (FB)8- letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, $hich usually provides an irrevocable payment underta7ing. %his is FB is again of t$o types- a) ,**L FB b)=*-4*LFB

IN'%RAN E
Be%ore e3,orting goods the trader has to ,re%er to ta.e insurance co0er %or e3,orting the goods *ecause M4/:/7E IS /&<E7:AI&N. Business should *e ris. %ree. :o ensure this Insurance is ,aid to goods those are i ,orted. :here are di%%erent t+,es o% insurances na el+ 1. :ransit Insurance 2. ;0erseas :ransit Insurance 3. #re!shi, ent Insurance ". #ost! shi, ent :he 4irst t-o insurances are chec.ed a%ter the e3,orters 2 i ,orters. :he re aining t-o insurances are loo.ed a%ter (o0ern ents. 1. (ransit Insurance9 ! :he insurance that is ,aid %or trans,ortation on roads is :ransit insurance. :his insurance is co onl+ .no-n as Insurance on -heels 2. *Aerseas Insurance9 ! :he insurance that is ,aid %or trans,ortation in -ater. :he #re 2 #ost shi, ent insurances are loo.ed a%ter E3,ort <redit (uarantee <or,oration (E<(<) 3. Pre2s1ipment Insurance9 ! :he insurance ,aid *e%ore the goods trans%erred into the shi,. ". Post2s1ipment Insurance9 ! :he insurance ,aid a%ter the goods

loaded into the shi, and *e%ore reaching the i ,orter.

Documents reFuired
:he docu ents re5uired %or the e3,orts are as %ollo-s9 1. <ontract 2. In0oice cu 3. <o ,ac.ing list

ercial in0oice

". Geight list ). #ac.ing list @. Sight dra%t C. #h+tosanitar+ certi%icate B. <erti%icate o% authenticit+ =. Shi,,ing *ill 10. Bill o% lading

*r@anisations related to t1e Indian toBacco IndustrC

As :he :o*acco Board, :he <entral :o*acco 7esearch Institute, and :he Indian :o*acco Association are ,la+ing a'or roles in ,rotecting the interests o% :he :o*acco trade, a *rie% anal+sis on the a*o0e three organiEations is gi0en here.

(oBacco Board
<onsidering the (ro-ing siEe o% the :o*acco <ro,, (o0ern ent o% India

esta*lished the :o*acco Board to cater to the interests o% the :o*acco :rade. A *rie% note on the :o*acco, and %or ation o% :o*acco Board is gi0en *elo- co0ering the acti0ities o% the :o*acco Board also. :o*acco Board -as %or ed in the +ear 1=C@, under Ministr+ o% <o erce, (o0t. o% India, -ith Iead 5uarter (untur. :o*acco auctions s+ste -as introduced in 1=B", -ith an o*'ecti0e o% cro, regulation %or Hirginia :o*acco and one+ guarantee to registered gro-ers. :o*acco Board collects Ser0ice <harge R 1A %ro gro-er and 1A %ro trader.

B*ARD *B$E (I&E' */ (*BA

4or 4ar er concern

<ro, regulation *ased on re5uire ent, *+ allotting 5uantit+ to registered gro-ers. Su,,l+ing re5uired %ertiliEer to registered gro-ers on loan *asis. 4acilitating loan arrange ent through *an.s. 7ight ,rice %or right 5ualit+ to gro-ers. For Trader concern :rader :rader ust register -ith to*acco *oard to ,artici,ate in auctions. ust #roduce Ban. guarantee.

(oBaccoE
:o*acco is an i ,ortant co ercial cro, gro-n in India. It occu,ies the third ,osition in the -orld -ith an annual ,roduction o% a*out C2) Million 6gs. ;% the di%%erent t+,e>s gro-n, %lue!cured to*acco, countr+ to*acco, *urle+, *idi, rustica and che-ing to*acco are considered i ,ortant. India, as an e3,orter o% to*acco, ran.s si3th in the -orld ne3t to BraEil, <hina, /SA, Mala-i and Ital+. :o*acco and to*acco ,roducts earn a -ho,,ing annual su o% a*out 7s.102C1 crores to the national e3che5uer *+ -a+ o% e3cise re0enue, and 7s.2022 <rores (200@!0C) *+ -a+ o% %oreign e3change. 4urther ore, to*acco is a source o% gain%ul e ,lo+ ent. Se0eral la.hs o% ,eo,le thri0e on this -eed cro,. 4lue!cured gro-th, -ith an annual ,roduction o% a*out 300 illion 6gs, is the singular t+,e, -hich contri*utes huge a ount o% %ore3 and e3cise earnings. More or less, )0A o% the 4<H to*acco ,roduced is consu ed do esticall+ -hile the rest is e3,orted to ore than 100 countries across

the glo*e. ;ther to*acco t+,e>s 0iE., Burle+, <ountr+ to*acco, <he-ing to*accos (1al cho,adia, 8udi and 7ustica) are also e3,orted -hereas *idi to*acco ! a ,oor anKs s o.e ! is consu ed onl+ -ithin the countr+. 4lue!cured Hirginia to*acco is the ,rinci,al t+,e gro-n in the states o% Andhra #radesh and 6arnata.a under 0aried agro!cli atic conditions. It is gro-n in the light soils o% 6arnata.a as rain!%ed cro, and in the hea0+ soils o% Andhra #radesh under conser0ed oisture in the a%ter ath o% South-est onsoon rains. :he cro, is gro-n under irrigated conditions in the &orthern 1ight Soils (&1S) o% Andhra #radesh and Eastern 1ight Soils (E1S) o% ;rissa and as a se i! onsoon cro, in Southern 1ight Soils (S1S) o% Andhra #radesh. :hus, India is endo-ed -ith a 0ast ,otential to ,roduce di%%erent t+,es o% to*acco so as to cater to the interests o% the discerning custo ers.

/ormation of (oBacco BoardE

:he (o0t. o% India esta*lished the :o*acco Board under an Act o% #arlia ent in the +ear 1=C) (*rought to e%%ect %ro 1.1.1=C@) and o,ened its head5uarters at (untur, Andhra #radesh -ith a 0ie- to *ring a*out an all!round de0elo, ent to the to*acco industr+.

I'* :<<0E3<<9 ertification to Indian toBacco Board

:he Indian to*acco Board, in %urtherance o% its o*'ecti0es stri0e to ,ro0ide su,erior ser0ice to its custo ers na el+, gro-ers and traders in a s+ste atic anner. M/s. $et &or.se Heritas ($&H), &etherlands *esto-ed the honour o% IS; =0019200B certi%icate to the Indian :o*acco Board %or esta*lishing 5ualit+ anage ent s+ste s. :he :o*acco Board has i ,le ented s+ste s ai ed at achie0ing ,roduct integrit+ and tracea*ilit+, odel ,ro'ect area and 5ualit+ circles conce,t to i ,ro0e the 5ualit+ o% to*acco lea% so as to eet the s,eci%ications o% i ,orters. :he Board, co itted to eeting the needs o% custo ers, ad0ises all the Indian e3,orters to o*tain IS; certi%ication -ith a 0ie- to eet the e3,ectations o% the glo*al ar.et.

(oBacco Board E MI''I*N

S:o stri0e %or the o0erall de0elo, ent o% to*acco gro-ers and the Indian :o*acco Industr+.S

(oBacco Board E &I'I*N

S:o*acco Board is co itted to acco ,lishing its role ! the e3,ressed -ill o% ,arlia ent ! %or the s ooth %unctioning o% a 0i*rant %ar ing s+ste , %air and re unerati0e ,rices to to*acco gro-ers and e3,ort

,ro otion.S

(oBacco Board E A (I&I(IE'

7ecogniEing the need to regulate ,roduction, ,ro ote o0erseas ar.eting and control recurring instances o% i *alances in su,,l+ and de and, -hich lead to ar.et ,ro*le s, the (o0ern ent o% India under the :o*acco Board Act o% 1=C), esta*lished the :o*acco Board, in ,lace o% the :o*acco E3,ort #ro otion <ouncil. :he Board ca e into e3istence %ro 1!1!1=C@ and o,ened its head 5uarters at (untur in Andhra #radesh, India. :he :o*acco Board Act ai s at ,lanned de0elo, ent o% :o*acco Industr+ in the countr+. :he 0arious acti0ities o% the Board outlined in the Act %or the ,ro otion o% the industr+ are! 7egulating the ,roduction and curing o% Hirginia :o*acco -ith regard to the de and in India and a*road. <onstant onitoring o% the Hirginia to*acco ar.et, *oth in India and a*road and ensuring %air and re unerati0e ,rice to the gro-ers and reducing -ide %luctuations in the ,rices o% the co odit+. Sustaining and i ,ro0ing the e3isting international ar.ets and de0elo,ing ne- ar.ets o0erseas %or Indian Hirginia :o*acco and its ,roducts and de0ising ar.eting strategies in consonance -ith de and %or the co odit+ including grou, ar.eting under li ited *rand na es. Esta*lishing auction ,lat%or s %or sale o% Hirginia to*acco *+ registered gro-ers and %unctioning as an auctioneer at auction ,lat%or s either esta*lished *+ it or registered -ith it. 7eco ending to the <entral (o0ern ent the ini u ,rices to *e %i3ed %or e3,orta*le Hirginia to*acco -ith a 0ie- to a0oiding unhealth+ co ,etition a ongst the e3,orters. (/nder its E3i ,olic+, the (o0ern ent decided to a*olish %i3ation o% M.E.#. -ith e%%ect %ro 1!"!1==3). 7egulating other as,ects o% Hirginia to*acco ar.eting in India and e3,ort o% Hirginia to*acco ha0ing due regard to the interests o% gro-ers, anu%acturers, dealers and the nation. #ro,agating in%or ation use%ul to the gro-ers, dealers and e3,orters (including ,ac.ers) o% Hirginia to*acco and anu%acturers o% to*acco ,roducts and others concerned. #urchasing Hirginia to*acco %ro gro-ers -hen the sa e is

considered necessar+ or e3,edient %or ,rotecting the interests o% the gro-ers and dis,osing it in India or a*road as and -hen considered a,,ro,riate. #ro oting to*acco grading at the le0el o% gro-ers. S,onsoring, assisting, co!coordinating or encouraging scienti%ic, technological and econo ic research %or ,ro otion o% to*acco industr+. Ser0ices ;%%ered *+ :o*acco Board %or the :rade

Introduction
:o*acco Board, ha0ing a -ide net-or. o% 5uali%ied and trained technical sta%%, ,la+s a crucial role in i ,ro0ing +ield and 5ualit+ o% 4<H to*acco. :he Board i ,le ents 0arious e3tension and de0elo, ental sche es %or i ,ro0ing +ield and 5ualit+ o% to*acco in colla*oration -ith <entral :o*acco 7esearch Institute (<:7I), 7a'ah undr+ and 7esearch 2 $e0elo, ental -ings o% to*acco co ,anies in ,ri0ate sector. :he Board i ,le ents the %ollo-ing E3tension 2 $e0elo, ental Acti0ities %or i ,ro0ing the +ield 2 5ualit+ o% the to*acco, econo + in %uel consu ,tion, echaniEation in to*acco %ar ing, trans%er o% technolog+, #roduct Integrit+/#ost Iar0est #roduct Manage ent etc., to hel, ,ro ote e3,orts.

/arm Mec1anisation
&o- a da+s, to*acco %ar ers are increasingl+ %inding la*our shortages in an+ areas. :here%ore, the Board, -ith a 0ie- to hel, %ar ers echanise certain o,erations is organising su,,l+ o%9 I ,ro0ed %ar i ,le ents/ achines li.e Bulloc. $ra-n 7idger, ,o-er -eeder!cu !interculti0ator!cu !ridger, trans,lanting achines, etc. Micro!irrigation e5ui, ent %or irrigating to*acco seed*eds and dri, irrigation e5ui, ent %or irrigating ain %ields -ith the hel, o% (o0t. o% Andhra #radesh. #H< ,i,es %or dra-ing -ater %ro long distances %or irrigating to*acco cro,s in #ra.asa 2 &ellore $istricts o% Andhra #radesh. Ii!tech S,ra+ers %or ,ro,er s,ra+ o% ,esticides in seed*eds and ain %ield. #o,ularising lea% stitching achines a ong gro-ers. <uro eters / Electronic de0ices in the *arn %or ,ro,er curing o%

to*acco. Geighing scales %or ,ro,er ,ac.ing 2 *aling o% to*acco. Yield 2 Lualit+ I ,ro0e ent

'eeds & 'eedlin@s

Seed ! :o*acco Board organises su,,l+ o% 5ualit+ seed e0er+ +ear to the gro-ers in the states o% Andhra #radesh and 6arnata.a at its 30 Auction #lat%or s through ,rocuring the sa e %ro <:7I and M/s. I:< 1td. :ra+ Seedlings T :he Board encourages gro-ers to go %or raising o% 5ualit+ 2 health+ seedlings in tra+s. :he Board organises su,,l+ o% tra+s 2 coco!,eat edia to the to*acco gro-ers in 6arnata.a and Andhra #radesh at co ,etiti0e ,rices and against in,ut loans at @ to @.)A rate o% interest. :he Board ,ro otes (reen houses/#ol+ houses %or tra+ nurseries su,,l+ing shade nets and ,ol+thene sheets at co ,etiti0e ,rices. Sche es are on the an0il to raise 5ualit+ seedlings and su,,l+ to S</S:, S all 2 arginal gro-ers.

-ater !arAestin@ 'tructures

:he rain%all in the Southern 1ight Soil areas located in the #ra.asa and &ellore districts in the state o% Andhra #radesh is erratic and the cro, in this area o%ten -itnesses ,rolonged dr+ ,eriods a%%ecting the 5ualit+ 2 +ields. :here%ore, the Board had e *ar.ed u, on creating so e -ater har0esting structures to hel, gro-ers gi0e one li%e sa0ing irrigation to sustain the cro,. :he Board is ta.ing u, construction o% Mini <hec. da s o0er the ri0ulets and digging o% %ar ,onds eeting B) to 100A cost o% the -ater har0esting structures. :he Board is i ,le enting the ,ro'ect o% ,ro0iding %ar association -ith M/s. I:< 1td. ,onds in

Inte@rated Pest Mana@ement

:he Board i ,le ents I#M ,rogra e in e0er+ +ear in select areas in all the Auction #lat%or s in A.#. Su,,lies o% ,hero one tra,s, lures, &#H solution, etc at co ,etiti0e ,rices to gro-ers.

 Monitors ,est ,o,ulation and ad0ises gro-ers ta.e u, cultural/ echanical and *io!control easures %ollo-ed *+ che ical control easures. Su,,lies tra, cro, seeds/seedlings %ree o% cost to the gro-ers. ;rganises su,,lies o% organic ,esticides at co ,etiti0e ,rice. Monitors ,esticide residues in to*acco %ro Eones and ta.es correcti0e ste,s. Su,,l+ o% In,uts :he Board organises su,,l+ o% 0arious in,uts to gro-ers 0iE. Karnataka 4ertilisers $A#, <A&, S;# #esticides 4/&(I<I$ES ;rganic #esticides Starthene, 7ido ill &i0aar, <on%idor, Gellgro Actara soil/Gellgro cro, ;thers :ra+s, <oco! #eat, S,ra+ers, :ar,aulins, <uro eters, Suc.ericides, #h+ton!: di%%erent gro-ing

And1ra Prades1 /ertilisers ;rganic 2 #esticides Bio! ;thers

$A#, <A&, S;#, &i0aar, Gellgro :ra+s, <oco!#eat, SS#, 2092090913, soil/Gellgro cro,, S,ra+ers, :ar,aulins, A oniu Sul,hate &#H Solution <uro eters, Suc.ericides, #h+ton!:, Geighing Scales

urin@ of (oBacco Ener@C onserAation Measures

:he cost o% curing o% to*acco accounts %or a*out 1/3 o% the total cost o% culti0ation. :here%ore, the Board i ,le ents the %ollo-ing sche es to achie0e energ+ conser0ation in curing o% to*acco and thus reduce curing costs.

 4i3ing o% Henturi %urnaces in the *arns re,lacing traditional %urnaces. Barn 7oo% Insulation. Modi%ied 4lue Bo3es T re,lacing )0A o% the e3isting c+lindrical ,i,es in the *arn. #ro oting esta*lish ent o% *ri5uetting units %or *ri5uettes %ro agri -aste. #ro oting raising o% o-n %uel *+ gro-ers. :raining ,rogra es to gro-ers on curing o% to*acco and a,,ointing aster curers to ad0ise gro-ers on curing techni5ues. E%%orts are under-a+ to de0elo, suita*le solar *arn %or curing o% to*acco. Post !arAest Product Mana@ement ;P!PM= G Product Inte@ritC anu%acture o%

Bulkin@ ;PR* E''IN#=. #radin@ & storin@ of (oBacco

:he cured to*acco unloaded %ro the *arns re5uires to *e *ul.ed ,ro,erl+ to %acilitate %er entation ,rocess and i ,ro0e in 5ualit+ *e%ore it is graded and ,ac.ed in *ales. :he Board conducts training ,rogra cured to*acco. es on ,ro,er *ul.ing o%

Su,,lies tar,aulins to gro-ers %or co0ering the *ul.s and a0oiding ad i3ture o% &on!:o*acco 7elated Materials (&:7Ms) during *ul.ing and grading o% to*acco. Assist gro-ers construct *ul.ing sheds/ odel storage %acilities under loan tie!u, arrange ent -ith *an.s. $istri*utes lea%lets 2 ,a ,hlets on #roduct Integrit+, #ro,er curing 2 grading and on eli ination o% &:7Ms. It also screens %il s through ca*le net-or. during eetings in the 0illages.

(ransfer of (ec1nolo@ies
:raining ,rogra es are organiEed R 3 ,rogra es in each o% the 30 Auction #lat%or s in A.# 2 6arnata.a %or the *ene%it o% %ar ers and %ield sta%% in colla*oration -ith <:7I and 7esearch Ging o% I:< T I1:$ at di%%erent stages o% cro, gro-th to i ,art latest .no-ledge on cro, ,roduction. Stud+ tours o% %ar ers to research stations and Board>s Model #ro'ect Area, ;n 4ar :rial #lots, 6rushi Hignana 6endra, (reen lea% threshing ,lants, Auction #lat%or s, to ena*le the to get

ac5uainted -ith the latest i ,ro0ed ,ractices and ado,t the sa e in their o-n %ields. $istri*ution o% literature on latest ,roduction technolog+. 7esult oriented de onstrations to de onstrate 0arious latest ethods o% cro, ,roduction and 0arietal trials to test the ,er%or ance o% ,i,eline 0arieties under %ield conditions are conducted *+ Board in colla*oration -ith <:7I, e0er+ +ear. Audio!0isual ,u*licit+ in 0illages on (ood Agricultural #ractices during gro-ers> eetings. Screening o% short!%il s on (ood Agricultural #ractices and latest i ,ro0ed technolog+ through ca*le net-or.. Gor.sho,s at <:7I 7esearch Stations -ith gro-ers. E3clusi0e training ,rogra Stations. es to gro-ers at <:7I 7esearch

;rganiEing %ield 0isits o% scientists %ro <:7I and e3ecuti0es %ro trade to ad0ice gro-ers on the latest ,ac.age o% ,ractices and cro, ,rotection easures. Model #ro'ect Area sche e in &1S 2 S1S o% Andhra #radesh 2 61S o% 6arnata.a.

Intensi0e E3tension through de onstrating all (ood Agricultural #ractices, latest technolog+, i ,ro0ed cro, ,rotection easures including I#M, #I#M 2 I&M in association -ith <:7I and trade. 4re5uent contacts -ith all the %ar ers in select areas.

A>ards to #ro>ers
:o*acco Board honours the *est gro-ers %or achie0ing higher +ields e0er+ +ear as a ste, to-ards inculcating a s,irit o% co ,etition a ong the gro-ers.

E0er+ +ear the Board %elicitates the Best (ro-er A-ardees on the 4or ation $a+ o% the Board cele*rated in the 1st -ee. o% 8anuar+ -ith a cash incenti0e o% 7s. ),000, a Sil0er Medal and a <erti%icate o% Merit. :he %ollo-ing are the a-ards ,resented to the gro-ers.

'. No. 1. 2. 3. ".

ate@orC

No. of A>ards

;ne Best (ro-er A-ard %or each A#4 in A.#. 30 and 6arnata.a ;ne Best (ro-er A-ard each %ro and Maharashtra states ;rissa 02

All India *asis ! 1st, 2nd and 3rd *est gro-er 03 a-ards ;ne Best (ro-er A-ard %or Inno0ati0e 01 a,,roach (otal A>ards 47

entral (oBacco Researc1 Institute ; (RI=

7esearch on to*acco has *een ,la+ing an i ,ortant role in the de0elo, ent o% to*acco 0arieties in India. India gro-s di%%erent .inds o% to*acco under di%%erent agro cli atic <onditions. as such the ,ro*le o% i ,ro0e ent o% di%%erent 0arieties o% to*accos in India are ini al and co ,licated. :he ain research -or. on to*acco is *eing done at <E&:7A1 :;BA<<; 7ESEA7<I I&S:I:/:E at 7A8AIM/&$7Y and its research stations s,read throughout India. A ,art %ro conducting research %or de0elo, ent o% di%%erent 0arieties o% to*acco %or the a3i iEation o% ,roduction, the <:7I 7a'ah undr+ has *een ,resentl+ doing research on de0elo, ent o% alternati0e cro,s to to*acco.

India is one a ongst to, ten countries culti0ating to*acco since decades. It is the second largest ,roducer in the -orld and earning %oreign e3change to the tune o% 7s 1000 crores and 7s B000 crores as e3cise re0enue e0er+ +ear. Iu an de,endenc+ on this cro, *+ -a+ o% e ,lo+ ent is su*stantiall+ high. A*out 20 la.h ,eo,le are engaged in the ,roduction. <igarette anu%acturing industr+ engages 10 la.h ,eo,le, *idi industr+ alone ,ro0ides e ,lo+ ent to a*out @0 la.h rural %ol. ostl+ -o en and tri*als. Besides these, the other sectors engaged in to*acco ,roducts li.e che-ing, cigar, cheroot and snu%% along -ith ,ac.ing, ,rocessing and e3,orting engage se0eral thousands o% ,eo,le. :he trans,ort agencies such as 7ail-a+s, 7oad-a+s and Sea *orne tra%%ic *ene%it i ensel+ %ro to*acco trade. B+ 0irtue o% the do inant role ,la+ed *+ this co ercial cro,, the Indian <entral :o*acco <o ittee (I<:<) esta*lished <entral :o*acco 7esearch Institute ( (RI ) in 7a'ah undr+ (Andhra #radesh) in 1="C. :he Institute -as under the ad inistrati0e control o% Indian <entral :o*acco <o ittee, Madras %ro 1="C to 1=@) and su*se5uentl+ trans%erred to the Indian <ouncil o% Agricultural 7esearch (I<A7), &e$elhi.

I<A7 acts as a re,ositor+ o% in%or ation and ,ro0ides consultanc+ on agriculture, horticulture, resource anage ent, ani al sciences, agricultural engineering, %isheries, agricultural e3tension, agricultural education, ho e science and agricultural co unication. U a *rie% note on I<A7 is enclosed at end o% this section %or read+ re%erecneV. It has the andates to co!ordinate agricultural research and de0elo, ent ,rogra es and de0elo, lin.ages at national and international le0el -ith related organisations to enhance the 5ualit+ o% li%e o% the %ar ing co unit+. I<A7 has esta*lished 0arious research centres in order to eet the agricultural research and education needs o% the countr+.It is acti0el+ ,ursuing hu an resource de0elo, ent in the %ield o% agricultural sciences *+ setting u, nu erous agricultural uni0ersities s,anning the entire countr+.:he :echnolog+ Inter0ention #rogra es also %or an integral ,art o% I<A7Ks agenda -hich esta*lishes 6rishi Hig+an 6endras (6H6s) res,onsi*le %or training, research and de onstration o% i ,ro0ed technologies. As a ,art o% its acti0it+ I<A7 has ta.en o0er the <:7I %ro I<:< during 1=@) %or conducting %unda ental and a,,lied research on :o*acco %or the *ene%it o% the %ar ing co unit+. :he institute is ha0ing regional net-or. -ith su* stations at (untur, 6andu.ur, 8eelugu illi, 8eddangi (Andhra #radesh), Hedasandur(:a il &adu), Iunsur (6arnata.a), #usa (Bihar) and $inhata (Gest Bengal). I ,ro0ing the Yield and Lualit+ o% 0arious t+,es o% to*acco 0iE., 4<H, &atu, <he-ing, 1an.a, Burle+, I$B7(, Ioo.ah, <igar -ra,,er, <igar %iller, etc is the ,ri e andate o% this institute and regional research stations %ocusing ulti!0arious ,ro*le s o% di%%erent t+,es o% to*acco culti0ation. :he All India <oordinated 7esearch #ro'ect on :o*acco -as sanctioned *+ the I<A7 in A,ril, 1=C0 -ith %our ain centers na el+ 7a'ah undr+ and #usa ( (RI ), Shi oga and Anand, and %i0e su* centers na el+ (untur, Iunsur and $inhata (<:7I), &i,ani and &and+al to intensi%+ the research on a'or ,ro*le s o% to*acco ha0ing regional and inter! regional signi%icance. :-o ne- centers at Berha ,ur and Sarai iran -ere sanctioned during Cth ,lan and the+ started %unctioning %ro 1=BC W =BB and 1=BB!B= res,ecti0el+. 7ecentl+ during 2001, the Sarai iran centre -as shi%ted to (ursaha+gan' in /#. :he AI<7# on to*acco -as erged -ith <entral :o*acco 7esearch Institute in August, 1==B. :his is one o% the ,ioneering organisations in the -orld dedicated to the to*acco research %or the *ene%it o% the to*acco %ar ers. :he ne- (RI *uilding co ,le3 -as constructed -ith necessar+ in%rastructural

%acilities during 1=B2 in a land o% 1) acres gi0en *+ the (o0ern ent o% Andhra #radesh. :he Institute Iead5uarters is located in the historical cit+ o% 7a'ah undr+ (1@.)= &, B1."C E and 2) a*o0e MS1) on the *an.s o% ,erennial ri0er (oda0ari in East goda0ari $istrict o% Andhra #radesh. :he 7a'ah undr+ cit+ is situated on <alcutta!<hennai 7ail 7oute and &ational Iigh-a+ &o.) :he near*+ Air,orts are located at Hisa.ha,atna (1=0 . ) and (anna0ara (Hi'a+a-ada 1"0 . ) :oda+, the Institute is the *iggest o% its .ind in Asia, -ell e5ui,,ed -ith the ost so,histicated instru ents %or carr+ing out *asic and a,,lied research, es,eciall+ in the %rontier areas li.e Bio!technolog+ and s o.e research at 7a'ah undr+ (E.(.$ist. o% A.#.). It is recognised *+ se0eral uni0ersities li.e Andhra /ni0ersit+, Achar+a &.(. 7anga Agricultural /ni0ersit+, Bhagal,ur /ni0ersit+, &agar'una /ni0ersit+, Mahat a #hule 6rishi Hid+a,eeth, 7ahuri %or the a-ard o% #h.$. degree through 7esearch. At ,resent a*out )30 e ,lo+ees including )" Scientists, 1C= technical sta%% and 300 ad inistrati0e and other sta%% are -or.ing in this institute %or the de0elo, ent o% to*acco in the countr+. $ue to the e0erlasting research done in the Institute %or )0 +ears, se0eral to*acco %ar ers are *ene%ited *+ %ollo-ing the ,ac.age o% ,ractices and ,roduction technolog+ de0elo,ed *+ the scientists o% this institute.

Indian ouncil of A@ricultural Researc1 ;I AR=

:he Indian <ouncil o% Agricultural 7esearch (I<A7) is an autono ous organisation under the $e,art ent o% Agricultural 7esearch and Education ($A7E), Ministr+ o% Agriculture, (o0ern ent o% India. 4or erl+ .no-n as I ,erial <ouncil o% Agricultural 7esearch, it -as estaBlis1ed on 07 $ulC 0:3: as a registered societ+ under the Societies 7egistration Act, 1B@0 in ,ursuance o% the re,ort o% the 7o+al <o ission on Agriculture. :he I<A7 has its head5uarters at &e$elhi. :he <ouncil is the a,e3 *od+ %or co!ordinating, guiding and anaging research and education in agriculture including horticulture, %isheries and ani al sciences in the entire countr+. Gith :8 I AR institutes and 56 a@ricultural uniAersities s,read across the countr+ this is one o% the largest national agricultural s+ste s in the -orld. :he I<A7 has ,la+ed a ,ioneering role in ushering (reen 7e0olution and su*se5uent de0elo, ents in agriculture in India through

its research and technolog+ de0elo, ent that has enaBled t1e countrC to increase t1e production of food @rains BC 5 times , 1orticultural crops BC 7 times, fis1 BC : times ;marine 6 times and inland 08 times=, milk 7 times and e@@s 38 times since 1=)0!)1, thus a.ing a 0isi*le i ,act on the national %ood and nutritional securit+. It has ,la+ed a a'or role in ,ro oting e3cellence in higher education in agriculture. It is engaged in cutting edge areas o% science and technolog+ de0elo, ent and its scientists are internationall+ ac.no-ledged in their %ields.

Indian (oBacco Association. #untur ;I(A=

:he Indian :o*acco Association is an A,e3 Bod+ 7e,resenting :o*acco E3,orters, $ealers and Manu%actures. It has *een esta*lished in the +ear 1=@!3C. It has a Me *ershi, o% a*out 1C) e *ers. It re,resents al ost 100A o% the do estic <igarette Manu%actures and 4<H E3,orters. It is the 7e,resentati0e Bod+ o% the <igarette :o*acco Industr+ on all ,olic+ issues

Address9

:he Indian :o*acco Association =th 1ine, Srini0asarao :hota, (.: road (untur!)2200" A&$I7A #7A$ESI #hone!=1!B@3!221@23B 4a3!=1!B@3!23))2@=

Indian (oBacco Association 2 *BjectiAesE

:he Indian :o*acco Association has the %ollo-ing o*'ecti0es9 :o di%%use .no-ledge a*out the use%ulness o% (rades and Standards a ong the (ro-ers Merchants and Manu%actures in India. :he Association shall ta.e ste,s to ha0e a s+ste o% Mar.et intelligence serci0e regarding ,rices, stoc.s su,,lies, etc. :he association a+ o-n ,re ises or -arehouses %or its ,ur,ose

*ut shall not *e a trading Association. :he Association does all such things as a+ *e conduci0e to the de0elo, ent o% to*acco industr+ or incidental to attain ent o% the a*o0e o*'ects. :he association can liaison -ith :o*acco Board o% India, (o0ern ents/ $e,art ent concerned, 4oreign :rade/Associations/i ,orters and an+ other Bodies/indi0iduals, -ith -ho contacts a+ ,ro ote the interests o% :o*acco industr+. :he Association can grant $onations either in cash or in .ind and to assist in the aintenance and i ,ro0e ent o% Educational institutions, Medical Institutions and ;ther <harita*le Association %or the #ro otion o% 1iterature, Arts Science, en0iron ent and %or the Gel%are o% the Societ+ as a -hole -ithout distinction o% <aste 7eligion, creed, 7ace or Se3. :he Association does such other Acts and things that are necessar+ %or the %urtherance o% the o*'ects o% the Association.

Indian

toBacco

association

ActiAities

:he Indian :o*acco Association has *een acti0el+ in0ol0ed in the de0elo, ent o% the Indian :o*acco Industr+ o0er the ,ast se0en decades. 7ecentl+, in 8anuar+, 2003 it has associated itsel% -ith the Indian Societ+ o% :o*acco Science in organiEing the &ational S+ ,osiu on :o*acco -ith the the e S4orcing 4uture <hallengesS at I:A Auditoriu , -hich has *een attended *+ the e inent :o*acco Scientists and other delegates %ro all o0er India and the Gorld

Chapter-7 Export

documentation

Export Documentation
An e3,ort trade transaction distinguishes itsel% %ro a do estic :rade transaction in ore than one!-a+. ;ne o% the signi%icant 0ariations *et-een the t-o arises on account o% the uch hea0ier docu entation -or. -hich is characteristic o% an e3,ort transaction. So e o% the docu ents are a ust in e3,ort *usiness, arising as the+ do on account o% Mcusto o% tradeN and con0entions go0erning international co ercial ,ractices. Besides, 5uite %e- o% these o-e their e3istence to certain statutesF rules and regulations go0erning e3,ort trade, -hich inter alias, include e3,ort trade control, %oreign e3change regulations, ,re shi, ent ins,ection, central e3cise and custo s. :he docu entation and ,rocedures are rendered co ,le3 on account o% the ine0ita*le in0ol0e ent o% a nu *er o% inter ediar+ agencies and go0ern ent authorities such as %reight %or-arders, carriers, insurance co ,anies, *an.s, e3,ort ,ro otion councils, Ins,ection agencies, 7.B.I etc. In order to si ,li%+ the docu entation ,rocedure, a ne- Aligned $ocu entation has *een de0elo,ed.

A))I#NED D* %MEN(A(I*N '"'(EM ;AD') Based on /& la+out .e+ and the e3,erience gained in an+ other de0elo,ed countries, the go0ern ent o% India has decided to introduce the A$S -ith e%%ect %ro 1st ;cto*er!1==1. :his s+ste in0ol0es the ,re,aration o% docu ents on a uni%or and standard A" siEe o% ,a,er. :he docu ents are aligned to one another in such a -a+ that the co on ite s o% in%or ation are gi0en the sa e relati0e slots in each o% the docu ents included in the s+ste . :his a.es it ,ossi*le to ,re,are one MMaster $ocu entN e *od+ing the in%or ation co on to all the docu ents included in the aligned series and to run o%% all the aligned docu ents %ro the sa e Master $ocu ent -ith the hel, o% suita*le as.ing and re,roduction techni5ues. :he use o% as.s is intended to *lan. out such in%or ation as is not re5uired in a ,articular docu ent. 'tandardiHed and ali@ned pre2s1ipment export documents ;n an a0erage, a*out 2" co ercial and regulator+ docu ents are associated -ith an e3,ort transaction in India. :he+ include 1) i ,ortant co ercial docu ents and are discussed as under9 a. #er%or a In0oice *. <o ercial In0oice c. #ac.ing list d. Shi,,ing instructions e. <erti%ication o% Ins,ection/Lualit+ <ontrol %. Insurance declaration g. <erti%icate o% insurance h. Shi,,ing order i. Mate recei,t '. B/1/ <o *ined :rans,ort $ocu ent .. A,,lication %or certi%icate o% origin l. <erti%icate o% origin . Bill o% e3change n. Shi, ent ad0ise o. 1etter to the *an. %or collection/negotiation. :he co ercial docu ents are those -hich, *+ custo or trade are re5uired %or e%%ecting ,h+sical trans%er o% goods and their Mtitle> %ro the e3,orter to the i ,orter and the realiEation o% e3,ort sale ,roceeds. Re@ulatorC Documents 7egulator+ #re!shi, ent e3,ort docu ents are those, -hich ha0e *een

,rescri*ed *+ di%%erent agencies in co ,liance o% the re5uire ents o% 0arious rules, and regulations under rele0ant la-s go0erning e3,ort trade such as e3,ort ins,ection, %ore3, custo s etcQ. ;n an a0erage there are = regulator+ docu ents. 1. (ate ,ass!1/gate ,ass!2 prescribed by9 ! <entral e3cise $e,t. 2. A7"!A/A7!" %or 3. Shi,,ing *ill / 4or e3,ort o% goods e3 *ond 4or e3,ort o% dut+ %ree goods 4or e3,ort o% dutia*le goods 4or e3,ort o% goods under clai $ut+ dra-*ac. ". E3,ort a,,lication/$oc. <hallan #ort trust #ort trust co,+ o% shi,,ing *ill ). 7ecei,t %or ,a+ ent o% #ort charges @. Hehicle tic.et C. (7/##/S$4 %or s 7.B.I B. 4reight ,a+ ent certi%icate =. Insurance ,re iu D* %MEN( #**D'. ,a+ ent <erti%icate. *NNE (ED -I(! (RAN'P*R(A(I*N */ !do! !do! %or !do! !do! !do! !do! !do! %or e3,ort <usto s de,t.

0. Air -aC Bill ;A-B= Air consi@nment Note. :he recei,t issued *+ an airline or its agent %or the carriage o% goods is called air-a+ *ill or air consign ent note. It is issued in ter s and conditions o% the contract o% carriage o% goods. It is not a docu ent o% title and it is not issued in a negotia*le %or . (enerall+ AGB is issued in three co,ies, 0iEF %or the carrier, %or the consignee and %or the consignor. 3. Postal Parcel Receipt ;PPR=. 1i.e the AGB, the ##7 e0idence erel+ the recei,t o% the goods to *e e3,orted to the *u+er and is not a docu ent o% title. 4. Bill of )adin@ ;BI)=. A Bill o% 1ading is the ost i ,ortant docu ent in 4oreign :rade. It is generall+ issued *+ a shi,,ing co ,an+. It ser0ices as a recei,t %ro the shi,,ing co ,an+ -ho underta.es to deli0er the goods at agreed

destination on ,a+ ent o% %reight in a ,rearranged anner and also a docu ent o% title to the goods. B/1 is generall+ ade out in the sets o% t-o or three originals. All the originals are dul+ signed *+ the aster o% shi, or the agent o% the stea shi, co ,an+ and all the originals are e5uall+ 0alid %or ta.ing the deli0er+ o% goods and once one original co,+ is utiliEed the other originals *eco e %ull and 0oid. B/1 is nor a negotia*le instru ent in ter s o% &egotia*le instru ent Act, Io-e0er, it is a ,ractice to call the original co,ies as negotia*le co,ies. 5. omBined (ransport Document ; (D= Gith the introduction o% ulti ode o0e ent o% goods in container on the *asis o% single contract %ro and to interior o% the countr+, go0ern ent has esta*lished Inland <ontainer $e,ot (I<$s) at selected centre. :hese dr+ de,ots ha0e ade it ,ossi*le to co0er the entire o0e ent o% goods, %ro I<$ to destination, under one trans,ort docu ent called <:$. 7ules go0erning co *ined trans,ort docu ent are designed *+ International <ha *er o% <o erce (Brochure &o.2=B) considering the international ,ractices. *MMER IA) D* %MEN('. 0. Performa InAoice As the na e denotes, it is an in0oice in esta*lished #er%or a, ,a+ ent o% -hich is not intended. :hese in0oices are used %or o*taining %inancial assistance li.e #ac.ing <redit %ro a *an.ing institution, as #er%or a in0oice together -ith an o%%er, acce,tance on -hich -ill %or a legal contract. 3. ommercial InAoice It is the ost -idel+ used in0oice in co ercial transactions. It is the state ent o% account o% sale rendered *+ the seller to the *u+er and is ,re,ared on seller>s letterhead or in the ,rescri*ed %or on A!" siEe ,a,er. It contains the na e o% the *u+er and his address, date, re%erence nu *er, 5uantit+, ar.s descri,tion o% goods unit ,rice, total 0alue o% goods, ter s o% ,a+ ent/< 2 B/1 no. Etc.

4. onsular InAoice A consular in0oice is re5uired *+ so e countries li.e <anada, /SA, etcQa consul %or in0oice is re5uired to *e ,re,ared in a ,rescri*ed %or at and it should *e signed/certi%ied *+ the consul o% the i ,orting countr+ located in the countr+ o% e3,ort. :he ain ,ur,ose o% a consular in0oice is to ena*le the i ,orter>s countr+ to collect accurate and

authenticated in%or ation a*out the 0alue, 0olu e, 5ualit+, source etcF o% the i ,ort %or assessing i ,ort duties and %or other statistics ,ur,oses. 5. ustoms InAoice <ountries li.e /SA, <anada etc. need custo >s in0oice. It is generall+ ade out on a s,ecial %or ,rescri*ed *+ the custo authorities o% the i ,orting countr+ and hel,s %or allo-ing entr+ o% goods in the i ,orting countr+ at ,re%erential tari%% rates. :he in0oice %or s are generall+ a0aila*le at the consular o%%ice o% the i ,orting countr+ and are re5uired to *e signed and -itnessed a%ter dul+ %illing the sa e. 6. )e@aliHedI &isaed InAoice :hese are the in0oices s-orn %or their genuineness *+ the seller as *eing correct *e%ore the a,,ro,riate consulate/cha *er o% co erce/e *ass+ as the case a+ *e and the+ *ear the sta , and authentication o% the consulate/cha,ter o% co erce/e *ass+ as *eing in order. :he+ collect a no inal charge %ro the seller %or doing this. IN'%RAN E D* %MEN(' 0. )etter of insurance. :his is analogous to co0er note issued *+ the *ro.er. It is stated that ,articular su*'ect are ,laced under insurance and certi%icate/,olic+ o% insurance -ill *e issued later on. 3. BrokerJs ertificate :his is also not acce,ta*le as *ro.er issues the sa e, as *ro.er acts %or the insured and cannot co ,el insurer to acce,t the ,ro,osal o% insurance. 4. Insurance ertificate. :he insurance on Mo,en co0erN or M%loatingN ,olic+ co0ering all shi, ent on certain ter s and su*'ects to conditions laid do-n. /nless the insurance certi%icate gi0es details o% the conditions o% co0er it is not so uch 0alue to third ,art+ -ho negotiate the shi,,ing docu ents. 5. Insurance PolicC. :his is a *asic legal docu ent!e0idencing contract o% insurance *et-een the insurer and insured. It gi0es %ull details o% all the ris.s co0ered. Marine or transit insurance ,olicies can *e assigned *+ the insured erel+ *+ endorse ent and deli0er+. Insurance ,olicies are issued in di%%erent %or s li.e %loating ,olic+, o,en ,olic+ or co0er, s,eci%ic ,olic+ etcQ A %loating ,olic+ is a contract o% insurance %or co0ering a nu *er o% shi, ents, the details o% -hich are not %inaliEed -hen the contract o%

insurance is conclude. :he rele0ant details li.e na e o% the 0essel, destination, descri,tion o% cargo etc. is there%ore re5uired to *e declared su*se5uentl+ and endorse in the ,olic+. An o,en co0er /,olic+ is 0alid %or a gi0en ,eriod o% ti e or ,er anentl+ o,en. As ,er this ,olic+ the insurer underta.es to insure all the shi, ents %or -hich the details are alread+ inti ated to the insurer. A s,eci%ic ,olic+ co0ers s,eci%ic shi, ents and such ,olic+ is readil+ a0aila*le %or su* itting -ith the e3,ort docu ents. :he co0erage o% ris.s is classi%ied into categories li.e A, B, < etc. and the insurance ,olicies are issued accordingl+. /INAN IA) D* %MEN(' 0. Draft It is *ill o% e3change. According to section ) o% the &egotia*le Instru ents Act, 1BB1 a *ill o% e3change is M an instru ent in -riting containing an unconditional order, signed *+ the a.er, directing a certain ,erson to ,a+ a certain su o% one+ onl+ on or to the order o% a ,erson to the *earer o% the instru ent.N A *ill o% e3change contains an order %ro the <reditor to the de*tor to ,a+ a s,eci%ic a ount to a ,erson entioned therein. :he a.e o% the *ill is called the Mdra-erN the ,erson -ho is directed to ,a+ is called the Mdra-eeN. :he ,erson -ho is entitled to recei0e ,a+ ent is called M,a+eeN. In an e3,ort transaction it is ad0isa*le that an e3,orter dra-s a dra%t, -hich a+ either Mat sight/on de and or usanceN. $ra%ts are ainl+ a.e in t-o sets -ith all other concerned docu ents and ailed to the %oreign corres,ondent through an authoriEed dealer %or ,resentation to the dra-ee/i ,orter, Ghen an+ o% the dra%ts is ,aid on ,resentation it is called an Mat sight/on de and dra%t and i% acce,ted -hen it is a usance dra%t *+ the dra-ee, then the second dra%t *eco es null and 0oid. 3. lean Bill and DocumentarC Bill Ghen the dra-er o% a *ill encloses -ith it a docu ent o% title to goods or an+ other e5ui0alent docu ent it is called a docu entar+ *ill. In an e3,ort transaction the e3,orter deli0ers to the *an.er, docu ents li.e %ull set o% B/1, AGB, ##7 etcQ together -ith docu ents li.e dra%ts, in0oices, ,ac.ing list etcQ %or ,resent ent to the dra-ee. $e,ending u,on the tender o% the *ill i.e. $/# or $/A, the docu ents are deli0ered to the dra-ee against ,a+ ent or acce,tance. I% no such docu ents are attached -ith the *ill, then it is called as a clean *ill. 4. 'tamp DutC

All dra%ts are dra-n on the dra-ee. /nli.e in ost o% the %oreign countries, the Indian sta , Act does not re5uired the sight dra%ts to *e Msta ,edN. I.e no sta , dut+ is a,,lica*le to dra%ts dra-n at sight/de and *ills. $ra%ts dra-n on usance *asis re5uire to *e ade5uatel+ sta ,ed. Sta , dut+ is the sa e no atter -hether the *ills is dra-n or negotiated in India. 5. Acceptance of Bill A *ill o% e3change ,a+a*le on de and or at sight or on a %i3ed date does not need acce,tance and hence ,resent ent %or acce,tance is unnecessar+ unless such ,resentation is s,eci%icall+ desired. A dra%t ,a+a*le a%ter sight ust *e ,resented %or acce,tance since the aturit+ date o% the *ill can onl+ *e deter ined a%ter such acce,tance. Ghen the dra-ee o% a *ill signi%ied his consent to the dra-er>s order in the *ill o% -riting his na e across the %ace o% the *ill -ith or -ithout the -ord Macce,tedN the *ill is said to *e acce,ted. Acce,tance o% a *ill, there%ore, Means that the dra-ee gi0es his consent to ,a+ the a ount entioned therein on the due date/ aturit+ date. :he %oreign corres,ondent *an. usuall+ ad0ises the due date to the e3,orter through his *an.er in India. 6. Notin@IProtestin@ of /orei@n Bills At the ti e the *ills are %or-arded to the e3,orter>s *an., it is ad0isa*le to ,ro0ide the *an. -ith clear instructions/ste,s to *e ta.en in case the *ills are dishonored on ,resentation or aturit+ as the case a+ *e. :he dra-er/holder %or 0alue a+ cause the dishonor to *e noted *+ a &otar+ #u*lic on the instru ent or u,on a ,a,er attached thereto or ,artl+ u,on each. :he notar+ %or all+ a.es a de and o% acce,tance or ,a+ ent u,on the acce,tor or dra-ee and on his re%usal to do so notes the sa e on the *ill. :hus M&otingN eans the %act that the *ill has *een dishonored is recorded on it and ,uts the dra-er/holder %or 0alue on a higher ,edestal in the e+es o% la-. :his is done -ithin a reasona*le ti e a%ter dishonor. /suall+ the notar+ a.es the %ollo-ing o*ser0ations9 ! a) :he date o% dishonour. *) :he reason, i% an+ assigned %or such dishonor. c) :he &otar+Ks charges. :he %oreign *ills ust, therea%ter #rotested %or dishonor, %or it is to *e ,laced as docu entar+ e0idence in the court o% la-. In other -ords the

o*ser0ations ade thereon *+ the notar+ -ill *e ta.en at %ace 0alue. A ,rotest is a certi%icate issued *+ the &otar+ #u*lic attesting that the *ill has *een dishonored and -ill usuall+ contain9 ! a) :he na e o% the ,erson %or -ho and against -ho the instru ent has *een ,rotested. *) A state ent that the &otar+ #u*lic and the reason %or dishonor de anded acce,tance or ,a+ ent %ro the acce,tor or dra-ee. c) :he ,lace and ti e o% dishonor o% the *ill d) :he signature o% the &otar+ #u*lic. (!IRD PAR(" D* %MEN(' 0. ertificate of *ri@in. (enerall+ the i ,orter to %urnish to hi a certi%icate stating that the goods are o% his countr+>s origin -ill call u,on an e3,orter. Inde,endent *odies li.e, the <ha *er o% <o erce, Iandicra%ts Board, E3,ort ins,ection <ouncil etc, -ill gi0e this certi%icateQ Gho Issue the against ,a+ ent or no inal %ees a%ter *eing satis%ied o% the origin o% goods. :here a+ *e a ,re%erential tari%% in %a0our o% goods %ro ,articular countries and there%ore, it has to *e ensured that the e3,orter -ho has *rought the into his o-n countr+ %ro so e other ,lace o% origin has not reshi,,ed the goodsF -hich is not eligi*le %or the ,re%erence.

3. Black )ist ertificate. :his is to certi%+ that the shi,/aircra%t carr+ing the goods has not touched a ,articular countr+ on its 'ourne+ or that the goods are not o% a ,articular countr+. :his certi%icate is usuall+ called -here countries ha0e strained ,olitical relations -ith another. 4. Packin@ )ist. :his docu ent sho-ing details o% goods contained in each ,arcel/shi, ent. It sho-s ite !*+!ite the contents o% the containers or ,arcels shi,,ed to ena*le the *u+er / recei0er o% the shi, ent to chec. the shi, ent. 5. ManufacturerJsI'upplierJs FualitCIInspection ertificate.

:his is a certi%icate to the e%%ect that the goods, -hich ha0e *een anu%actured / su,,lied, are as ,er the re5uire ent o% the contract o% sale. 6. ertificate of Inspection. Ins,ection certi%icate, indicating that goods ha0e *een ins,ected *e%ore so e countries need under so e contracts or shi, ent. :his certi%icate is generall+ re5uired to *e issued *+ one o% the authoriEed inde,endent Ins,ection Agencies li.e E3,ort Ins,ection Agenc+, :e3tile <o ittee, and <entral Sil. Board etc. 7. ertificate of AnalCsis. <erti%icate regarding the che ical anal+sis o% the goods issued *+ a co ,etent o%%ice. <erti%icate o% shi,,ing agent that a certain lot o% goods ha0e *een shi,,ed. 8. !ealt1I&eterinarCI'anitarC ertificate. Ghen the goods i ,orted are %oodstu%%s, arine ,roducts, li0estoc. etc. a certi%icate %ro the health/0eterinar+/sanitar+/authorities is called %or. :his is *ecause the i ,orter desires to .no- i% the goods are %it %or hu an consu ,tion. D* %MEN(' RE?%IRED B" ED !AN#E *N(R*) 0. #RI ED !AN#E *N(R*) *P" I'D/ /*RM. :his is one o% the ost i ,ortant docu ents re5uired *+ 7eser0e *an. o% India %or E3change <ontrol #ur,ose. But no- (7/S$4 %or s has *een -ai0ed o%% incase the total 0alue o% shi, ent is less /S?!2)000. :he (7 %or contains the *rie% details o% shi, ent sa e as entioned in the shi,,ing *ill. :his co es under the 4oreign E3change Manage ent Act. But S$4 is a sel%!declaration ade *+ the e3,orter the re,atriation o% the a ount -ithin the sti,ulated ti e, under the Indian <usto s E$I s+ste s %or E3,orts (I<ES/E). 3. P.P /*RM :his is also one o% the ost i ,ortant docu ents %or e3change control, ,rescri*ed *+ 7BI, i% the e3,ort ,arcel/shi, ent is routed through AuthoriEed 4oreign #ost o%%ice, as a ,ostal ,arcel. But no- ## %or s has

*een -ai0ed o%% in case the total 0alue o% shi, ent is less /S?!2)000.

IN *(ERM'
1anguage is one o% the ost co ,le3 and i ,ortant tools o% International :rade. As in an+ co ,le3 and so,histicated *usiness, s all changes in -ording can ha0e a a'or i ,act on all as,ects o% a *usiness agree ent. Gord de%initions o%ten di%%er %ro industr+ to industr+. :his is es,eciall+ true o% glo*al trade. Ghere such %unda ental ,hrases as Sdeli0er+S can ha0e a %ar di%%erent eaning in the *usiness than in the rest o% the -orld. 4or *usiness ter inolog+ to *e e%%ecti0e, ,hrases ust ean the sa e thing throughout the industr+. :hat is -h+ the International <ha *er o% <o erce created SI&<;:E7MSS in 1=3@. I&<;:E7MS are designed to create a *ridge *et-een di%%erent e *ers o% the industr+ *+ acting as a uni%or language the+ can use. Each I&<;:E7M re%ers to a t+,e o% agree ent %or the ,urchase and shi,,ing o% goods internationall+. :here are 13 di%%erent ter s, each o% -hich hel,s users deal -ith di%%erent situations in0ol0ing the o0e ent o% goods. 4or e3a ,le, the ter 4<A is o%ten used -ith shi, ents in0ol0ing 7o/7o or container trans,ortF $$/ assists -ith situations %ound in inter odal or courier ser0ice!*ased shi, ents. I&<;:E7MS also deal -ith the docu entation re5uired %or glo*al trade, s,eci%+ing -hich ,arties are res,onsi*le %or -hich docu ents. $eter ining the ,a,er-or. re5uired to o0e a shi, ent is an i ,ortant 'o*, since re5uire ents 0ar+ so uch *et-een countries. :-o ite s, ho-e0er, are standard9 the co ercial in0oice and the ,ac.ing list. I&<;:E7MS -ere created ,ri aril+ %or ,eo,le inside the -orld o% glo*al trade. ;utsiders %re5uentl+ %ind the di%%icult to understand. See ingl+ co on -ords such as Sres,onsi*ilit+S and Sdeli0er+S ha0e di%%erent eanings in glo*al trade than the+ do in other situations. In glo*al trade, Sdeli0er+S re%ers to the seller %ul%illing the o*ligation o%

the ter s o% sale or to co ,leting a contractual o*ligation. S$eli0er+S can occur -hile the erchandise is on a 0essel on the high seas and the ,arties in0ol0ed are thousands o% iles %ro the goods. In the end, ho-e0er, the ter s -ind u, *oiling do-n to a %e- *asic s,eci%ics9 <osts9 -ho is res,onsi*le %or the e3,enses in0ol0ed in a shi, ent at a gi0en ,oint in the shi, entKs 'ourne+W <ontrol9 -ho o-ns the goods at a gi0en ,oint in the 'ourne+W 1ia*ilit+9 -ho is res,onsi*le %or ,a+ing da age to goods at a gi0en ,oint in a shi, entKs transitW It is essential %or shi,,ers to .no- the e3act status o% their shi, ents in ter s o% o-nershi, and res,onsi*ilit+. It is also 0ital %or sellers 2 *u+ers to arrange insurance on their goods -hile the goods are in their SlegalS ,ossession. 1ac. o% insurance can result in -asted ti e, la-suits, and *ro.en relationshi,s. I&<;:E7MS can thus ha0e a direct %inancial i ,act on a co ,an+Ks *usiness. Ghat is i ,ortant is not the acron+ s, *ut the *usiness results. ;%ten co ,anies li.e to *e in control o% their %reight. :hat *eing the case, sellers o% goods ight choose to sell <I4, -hich gi0es the a good gras, o% shi, ents o0ing out o% their countr+, and *u+ers a+ ,re%er to ,urchase 4;B, -hich gi0es the a tighter hold on goods o0ing into their countr+. In this glossar+, -eKll tell +ou -hat ter s such as <I4 and 4;B ean and their i ,act on the trade ,rocess. In addition, since -e realiEe that ost international *u+ers and sellers do not handle goods the sel0es, *ut -or. through custo s *ro.ers and %reight %or-arders, -eKll discuss ho- *oth %it into the ter s under discussion. I&<;:E7MS are ost %re5uentl+ listed *+ categor+. :er s *eginning -ith 4 re%er to shi, ents -here the ,ri ar+ cost o% shi,,ing is not ,aid %or *+ the seller. :er s *eginning -ith < deal -ith shi, ents -here the seller ,a+s %or shi,,ing. E!ter s occur -hen a sellerKs res,onsi*ilities are %ul%illed -hen goods are read+ to de,art %ro their %acilities. $ ter s co0er shi, ents -here the shi,,er/sellerKs res,onsi*ilit+ ends -hen the goods arri0e at so e s,eci%ic ,oint. Because shi, ents are o0ing into a countr+, $ ter s usuall+ in0ol0e the ser0ices o% a custo s *ro.er and a

%reight %or-arder. In addition, $ ter s also deal -ith the ,ier or doc.ing charges %ound at 0irtuall+ all ,orts and deter ining -ho is res,onsi*le %or each charge. 7ecentl+ the I<< changed *asic as,ects o% the de%initions o% a nu *er o% I&<;:E7MS, *u+ers and sellers should *e a-are o% this. :er s that ha0e changed ha0e a star alongside the .

ED2-orks
;ne o% the si ,lest and ost *asic shi, ent arrange ents ,laces the ini u res,onsi*ilit+ on the seller -ith greater res,onsi*ilit+ on the *u+er. In an ED!Gor.s transaction, goods are *asicall+ ade a0aila*le %or ,ic.u, at the shi,,er/sellerKs %actor+ or -arehouse and Sdeli0er+S is acco ,lished -hen the erchandise is released to the consigneeKs %reight %or-arder. :he *u+er is res,onsi*le %or a.ing arrange ents -ith their %or-arder %or insurance, e3,ort clearance and handling all other ,a,er-or..

/*B ;/ree *n Board=

;ne o% the ost co onl+ used!and isused!ter s, 4;B eans that the shi,,er/seller uses his %reight %or-arder to o0e the erchandise to the ,ort or designated ,oint o% origin. :hough %re5uentl+ used to descri*e inland o0e ent o% cargo, 4;B s,eci%icall+ re%ers to ocean or inland -ater-a+ trans,ortation o% goods. S$eli0er+S is acco ,lished -hen the shi,,er/seller releases the goods to the *u+erKs %or-arder. :he *u+erKs res,onsi*ilit+ %or insurance and trans,ortation *egins at the sa e o ent.

/ A ;/ree arrier=
In this t+,e o% transaction, the seller is res,onsi*le %or arranging trans,ortation, *ut he is acting at the ris. and the e3,ense o% the *u+er. Ghere in 4;B the %reight %or-arder or carrier is the choice o% the *u+er, in 4<A the seller chooses and -or.s -ith the %reight %or-arder or the carrier. S$eli0er+S is acco ,lished at a ,redeter ined ,ort or destination ,oint and the *u+er is res,onsi*le %or Insurance.

/A' ;/ree Alon@side '1ip=K

In these transactions, the *u+er *ears all the trans,ortation costs and the ris. o% loss o% goods. 4AS re5uires the shi,,er/seller to clear goods %or e3,ort, -hich is a re0ersal %ro ,ast ,ractices. <o ,anies selling on these ter s -ill ordinaril+ use their %reight %or-arder to clear the goods %or e3,ort. S$eli0er+S is acco ,lished -hen the goods are turned o0er to the Bu+ers 4or-arder %or insurance and trans,ortation.

/R ; ost and /rei@1t=

:his ter %or erl+ .no-n as <&4 (<24) de%ines t-o distinct and se,arate res,onsi*ilities!one is dealing -ith the actual cost o% erchandise S<S and the other S4S re%ers to the %reight charges to a ,redeter ined destination ,oint. It is the shi,,er/sellerKs res,onsi*ilit+ to get goods %ro their door to the ,ort o% destination. S$eli0er+S is acco ,lished at this ti e. It is the *u+erKs res,onsi*ilit+ to co0er insurance %ro the ,ort o% origin or ,ort o% shi, ent to *u+erKs door. (i0en that the shi,,er is res,onsi*le %or trans,ortation, the shi,,er also chooses the %or-arder.

I/ ; ost. Insurance and /rei@1t=

:his arrange ent si ilar to <47, *ut instead o% the *u+er insuring the goods %or the ariti e ,hase o% the 0o+age, the shi,,er/seller -ill insure the erchandise. In this arrange ent, the seller usuall+ chooses the %or-arder. S$eli0er+S as a*o0e, is acco ,lished at the ,ort o% destination.

P( ; arria@e Paid (o=

In <#: transactions the shi,,er/seller has the sa e o*ligations %ound -ith <I4, -ith the addition that the seller has to *u+ cargo insurance, na ing the *u+er as the insured -hile the goods are in transit.

IP ; arria@e and Insurance Paid (o=

:his ter is ,ri aril+ used %or ulti odal trans,ort. Because it relies on the carrierKs insurance, the shi,,er/seller is onl+ re5uired to ,urchase ini u co0erage.

Ghen this ,articular agree ent is in %orce, 4reight 4or-arders o%ten act in e%%ect, as carriers. :he *u+erKs insurance is e%%ecti0e -hen the goods are turned o0er to the 4or-arder.

DA/ ;DeliAered At /rontier=

Iere the sellerKs res,onsi*ilit+ is to hire a %or-arder to ta.e goods to a na ed %rontier, -hich usuall+ a *order crossing ,oint, and clear the %or e3,ort. S$eli0er+S occurs at this ti e. :he *u+erKs res,onsi*ilit+ is to arrange -ith their %or-arder %or the ,ic. u, o% the goods a%ter the+ are cleared %or e3,ort, carr+ the across the *order, clear the %or i ,ortation and e%%ect deli0er+. In ost cases, the *u+erKs %or-arder handles the tas. o% acce,ting the goods at the *order across the %oreign soil.

DE' ;DeliAered Ex '1ip=

In this t+,e o% transaction, it is the sellerKs res,onsi*ilit+ to get the goods to the ,ort o% destination or to engage the %or-arder to the o0e cargo to the ,ort o% destination uncleared. S$eli0er+S occurs at this ti e. An+ destination charges that occur a%ter the shi, is doc.ed are the *u+erKs res,onsi*ilit+.

DE? ;DeliAered Ex ?uaC=K

In this arrange ent, the *u+er/consignee is res,onsi*le %or duties and charges and the seller is res,onsi*le %or deli0ering the goods to the 5ua+, -har% or ,ort o% destination. In a re0ersal o% ,re0ious ,ractice, the *u+er ust also arrange %or custo s clearance.

DDP ;DeliAered DutC Paid=

$$# ter s tend to *e used in inter odal or courier!t+,e shi, ents. Ghere*+, the shi,,er/seller is res,onsi*le %or dealing -ith all the tas.s in0ol0ed in o0ing goods %ro the anu%acturing ,lant to the *u+er/consigneeKs door. It is the shi,,er/sellerKs res,onsi*ilit+ to insure the goods and a*sor* all costs and ris.s including the ,a+ ent o% dut+

and %ees.

DD% ;DeliAered DutC %npaid=

:his arrange ent is *asicall+ the sa e as -ith $$#, e3ce,t %or the %act that the *u+er is res,onsi*le %or the dut+, %ees and ta3es.

Chapter-8 Suggestions & Conclusion

Suggestions
:he anage ent has to loo. a%ter and assign tas.s to its

e ,lo+ees %ro

ti e to ti e so that things

a+

o0e %aster

:he ;rganisation s.ills and talents

a+ ,ro0ide training and de0elo, ent

,rogra s %or the e3isting e ,lo+ees to de0elo, ,ro%essional

:he ;rganisation has greater sco,e %or increasing its e3,orts *+ e3,orting ore 5uantities.

Conclusion
:he ;rganisation is ho-e0er success%ul in carr+ing on its *usiness o,erations. It ar.ed i ,ro0e ent in its ,er%or ance o0er the +ears. :here is e0en greater sco,e %or e3,anding its trade acti0ities a.ing a re ar.a*le e3cellence in its %ield o% *usiness. It has *een ,ro0ed to *e success%ul in achie0ing its o*'ecti0es and %ul%illing its %unctions e%%ecti0el+.

Chapter-9 Bibliography

Bibliography
/& Information ta>en from the 1e! sites of C To!acco Board K111&to!acco!oard&com L Indian To!acco (ssociation K111&smenet1or>&netL 5entral To!acco 'esearch Institute(5T'I) K 111&ctri&or6&in L -& +anual of Export Documentation !y P&Meerareddy H P& +amatha K 5ommercial "a1 Pu!lications India Pri4ate "imited L B& Export N Policy# Procedures H Documentation !y +&I&+ajan K 2no1 Jhite Pu!lications Pri4ate "imited L