A

TPP Report
Role of C&F agents (CHA) in Export Process
For the Training undergone at

Southex Shipping & Clearing Agency (P) Ltd.

PANIPAT
For the partial fulfillment of the award of degree of MBA
Subject: TPP (IMS-903 / MBA 5year - 9th SEM)

Under the supervision of:

General Manager (HR) Mr. Munish Rana

Submitted to:

Submitted by:

Director

HIMANSHU SETIA
Class 9th semester
Roll no. 34
Registration no.10 UD 704

Institute of Management Studies (IMS)

Kurukshetra University, Kurukshetra
(August December 2014)
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ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the training Report so easy
to understand for a person who is willing to get knowledge about the Southex Shipping &
Clearing Agency (P) Ltd.
I am deeply indebted to my esteemed teacher & our chairman K.U.K., because he gave me
opportunity of making project report. I am also thankful to my lecturer. My supervisor (Guide)
Mr. Munish Rana (General Manager HR.) for their kind support & suggestion for making
project report.

Signature
Himanshu Setia
Roll no. 34
9th semester

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DECLARATION

I, Himanshu Setia hereby declare that I have completed the report entitled assigned to me by the
Institute, to be submitted in the partial fulfillment of the MBA 5 Year Degree from Kurukshetra
University. Further, I declared that this is original work done by me and the information provided
in the study is authentic to the best of my knowledge and belief.

Signature
Himanshu Setia
Roll no. 34
9th semester

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Content
Chapter

Name of the Chapter

Page No.

No.
1.

Introduction

A. SHIPPING Sector.
2.

B. Other Players in sector

Company profile

A. Introduction
B. Organizational Structure
3.

C. Services offered
Analysis and Discussion:

12

A. Process followed
B. Role of C&F agents
4.

C. Documents Prepared
SWOT Analysis of Company

15

5.

Learning from training

17

6.

References

19

7.

Abbreviations

20

8.

ANNEXURE

21

( also included blank formats of documents involved)

CHAPTER 1
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INTRODUCTION

1. SHIPPING SECTOR:
Current Market Situation in India
The Indian shipping industry plays an important role in the Indian economy as almost 90% of
the countrys international trade is conducted by the sea
India is ranked 15th in the world, with a shipping tonnage of around 11,5 million gross tonnage
(GT) in 2011
Today, India has around 1071 ships with 722 coastal and 349 overseas ships Indian coastal
shipping is highly fragmented
The top 9 companies account for nearly 70% of the total fleet by Dead Weight Tons and in terms
of number of ships, the top 9 companies only control 20% share of the fleet. Many companies
own just 1 or 2 ships
The Indian shipping industry consists of approximately 31 major shipping companies with
Shipping Corporation of India (SCI), the largest public sector enterprise also being the largest in
the country
India has a long coastline, spanning 7516.6 kilometers and is serviced by approximately 200
ports
India has historically been serviced through 14 major ports. Several, private ports outside the
scope of Major Ports Act has emerged in recent years
Mumbai is the largest port and handles 50% of all of Indian export originating mainly from the
Northern and Central India
Container wise, Mumbai handles 4.1 million Twenty Foot Equivalent Units (TEU)
Bulk wise, the overall tonnage of all cargo shipped through major ports in the 2010 was 560 mn.
Tonnes

Major Ports in India

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JNPT

GTI

NSCIT

Mumbai Port

Kandla

Mundra

Pipavav

Ennore

Chennai

2. OTHER PLAYERS IN SECTOR

Key Government Entities in the Indian Shipping Industry

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Company name

Activities

Shipping Corporation Shipowners,

of India (SCI)

Office

Total turnover No. Of ships

location

in USD $

Mumbai

803 million

85

chartering,
offshore

Key Private Entities in the Indian Shipping Industry

Company

Activities

Name
TheGreat

Office

Turnover

No, of ships

Mumbai

448 million

37

Mumbai

176 million

20

Mumbai

136 million

32

Mumbai

242 million

21

Location
Shipowner,

Eastern Shipping chartering,

Company

offshore

Limited
Varun Shipping

Shipowner,
chartering,

ESSAR

offshore
Shipowner,

SHIPPING

chartering,

offshore
Mercator Lines Shipowner,
Limited

chartering,
offshore

CHAPTER 2

1. INTRODUCTION
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COMPANY PROFILE

SOUTHEX SHIPPING PRIVATE LIMITED begins in the year 1984 aiming to offer

professional services to Exporters and Importers and minimize the problems faced by them by
offering prompt services , safe handling on competitive prices. Earlier IT operates as
Name ICF PVT.LTD all over and now from year 2000 in Panipat it has
opened its sub branch named as Southex shipping Pvt. Ltd.

Indias economy is slowly blooming and if you want to develop this great potential market, ICF
will be your best choice. Our experienced staff bound to provide professional services on
logistics management.
An alliance with ICF, you will have a unified partner with 14 offices in India, four offices at
abroad and Associates Agents all over the globe.
We will keep expansion in India and provide high standard of services to keep our Partners,
customers, well-wisher competitive and progressive in the days to come.
The company started its operations initially by handling Handicrafts/ Carpets exports from
Moradabad -Bhadohi and from 2000 onward slowly expanded its branches at Agra , Chennai,
Cochin, Delhi , Gandhidham, Jaipur, Jodhpur , Ludhiana, Moradabad , Pune , Panipat ,
Varanasi by appointing professional Managers to develop these markets.
Mr. Dasharath Y. Patade, Chairman & Managing Director, a self-made man, is in the industry
since 1973.

A man with pioneering spirit coupled with single minded perseverance, has

outstanding achievements to his credit and has excellent negotiation skills. He developed ICF as
one of the largest Freight Forwarding & Logistics network in India, with a highly motivated team
of professionals. An excellent marketing caliber man, he is determined to shape a better future to
the company. To him the world of tomorrow is determined by the vision and foresight of today.
Mr. Harish J. Shirodkar, Director, Administration, is in the industry since 1970 and is well
experienced documentation expert. He is fully conversant with all customs documentation
procedures and formalities. His professionalism and expertise has been extremely useful for ICF
in developing the business and most important in developing a professionally managed
organization. He is an innovative and zealous, coupled with a keen sense of humors.
Company is run by professionals who are highly knowledgeable in expediting local and
international consignments. So, it comes no surprise that the company was certified under ISO
9001:2008 certification. In those early days very few international forwarding services existed in
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India and ICF is one of them who were equipped to handle the volume and priority assigned to
customers satisfaction. ICF strictly maintains the secrecy of the Clients relevant documents
handled from Nhava Sheva/ Mumbai at all corner of the operations.

Excellent infrastructure was built up with high-tech equipments to ensure efficient

communication and connectivity. All efforts are made to achieve result oriented performance at
every stage. As a result ICF grew in strength in a very short span.
Our Clientele which includes some of the leading names in various industries speaks a lot for our
credentials and customer oriented work. . Its consolidated staff strength is 75 personnels in
Mumbai cityonly. Dynamism and creativity of our qualified, trained and experienced personnel
bring enthusiasm to the work place. Customer satisfaction is given the highest priority by these
dedicated and motivated staff.
In addition we are associated with several transporters for transportation of export- import
consignments to all corners of India; we provide warehouses facilities near port area.
ICF is having own space for stuffing of Export consignments and arrangement for
consolidation/deconsolidation at Cwc Logistics Park- Hind Terminals

adjacent to Nhava

Sheva. Also arranging Export shipments from CFS Mulund and Mumbai Sea Port. Inbound and
outbound shipments are handles from all ICD on request.

2. ORGANISATION STRUCTURE
Management Team
Mr. Dasharath Y. Patade, Chairman & Managing (Director)
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Mr. Harish J. Shirodkar, Director (Administration)

Mr. Sunil Verma (International Marketing)
Mr. Anil Verma (Production)
Mr. Chris (European Market)

Nature of Business:
Medium & Small Enterprise - Supplier, Manufacturer, Exporter

Number of Employees:
50 to 60 employees (AT PANIPAT BRANCH), more than 400 Employees.

Turnover
US$ 0.25-1 Million (or Rs. 1-4 Crore Approx.)

Head Office
MUMBAI

3. SEVICES OFFERED
SERVICES OFFERED BY Southex shipping (ICF):

NVOCC Operations

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Consolidation And Groupage Cargo

Project Cargo

Air Freight Export and Import

Pick up, Consolidation and Direct Fcl/Lcl services for export shipments from all Major
ICDs in India

Liaising with third parties to move goods in accordance with customers needs.

Custom Broking and allied Services

Transportation Warehousing , Storage and Distribution Facilities

Marine Insurance

Freight Forwarding

Deconsolidation and forwarding shipments from all Major ports and strategic
International Locations.

Delivery of Import shipments to any locations in India

Empty container handling and storage facility

Working closely with Customers, Colleagues and Third Parties to ensure smooth
Operation on safe deadline.

Arranging Custom Consultancy in case require by Customer.

CHAPTER 3.

ANALYSIS AND DISCUSSION:

1. PROCESS FOLLOWED:

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Under Southex Shipping a procedure of clearing documents and forwarding containers is being
followed, it continues to the claim of the Drawback amount and also include various incentives
claim. This process is the main functioning and source of income for the organization. Southex
shipping pvt. Ltd. Also involves the insurance facilities and many more services described above.

Company follows or functions in following manner to accomplish its job:

1. Exporter provide invoice and packing list to the clearing agent of company.
2. After receiving packing and invoice company prepares the various documents to be filed in
customs. Like check list, SDF etc.
2. Company start filing paper on net, on the ICEGATE web portal. It is an online server which
allows clearing agents to file paper of exports directly in the Customs to get a shipping bill no.
3. After filing of Papers and receiving the sipping bill no, company advice Exporter to stuff the
shipment and be ready for inspection.
4, Paper filed could be cancelled by the customs if there is change in weight, number of boxes
and quantity description to be checked.
5. Than containers are transferred to the ICD inland container depot where they are inspected and
sealed.
6. It is duty of our company to get goods inspected and cleared from customs, documents needed
for export are passed ad duly stamped.
7. Our company gets LEO order and forwarding notes for container to move and then railed by
obtaining PDA form CONCOR.
8. Goods reach to port of lading and here our company plays role of Forwarder and obtain bill of
lading and insurance if necessary.
9. Goods are loaded and ready to ship.
10. Our company helps Exporter to get incentives and preparation of documents for claiming that
incentives and drawback.
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11. We play various function like obtaining Shipping bill from ICD, preparation of several
documents etc.

2. Role of C&F agent:

Southex shipping is a service based agency which act as clearing and forwarding agent for the
various exporters, and at panipat branch mainly it is involved in the clearing of home furnishing
items and textile made products, here its major role is:

1. Filing the papers on ICEGATE,

2. Preparation of documents needed for custom clearances,
3. Stamps and seals acquired for sealing container,
4. Inspection passing during stuffing of the products,
5. Obtaining the LEO for container,
6. Obtaining the Shipping bill,
7. Negotiation with the banks for claim of the Drawbacks,
8. Forwarding of the container at port,
9. Insurance of container and goods,
10. Obtaining the freight charges and Bill of lading,

3. Documents Prepared:
There are very documents which are needed by customs and it is duty of our company as
clearing and forwarding agent to fulfill the documents needed. There are a number of documents
which are prepared and made available by the agents, some of the documents are:

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1. Commercial Invoice
2. Packing List
3. Check List
4. Annexure c
5. Inspection Report
6. Export Value Declaration
7. SDF Form (self declaration form)
8. PDA from CONCOR (Railway Authority)
9. Shipping bill. Form ICD
10. LEO order from customs
11. Bill of Lading
12. Booking release Order (for Shipping Line)
13. Appendix 3 (Drawback Declaration
14. Obtaining Forwarding notes.
15. Bill of lading & freight.
16. Bill (Claiming the payments from Exporter)

CHAPTER 4

SWOT Analysis of Company

Strength:
India has access to two major shipping routes
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 More than 7500 km coastline including the island territories

Widespread ports and workable merchant fleet
Fleet expansion by major domestic shipping companies
Sustained rise in the volume of exports with revival growth in the manufacturing sector
Large number of Indian sea farers
More than 1 billion citizens to drive the import demand

Weakness:
The underinvestment in the Indias maritime sector has affected the development of ports in the
country
Inefficient judiciary system slow development of new port infrastructure
High levels of bureaucracy prevents the government funding from developing new port
projects in the country
Tax structure not allowing the Indian manufacturers to be competitive <Think this is an
argument Indian exporters are using in lobbying rather than being a fact>

Threats:
Major developments taking place in Sri Lanka's port sector may reduce demand for
transshipment services at Southern Indian ports. A government tax on iron ore exports may lead
to a fall in bulk shipments at major export terminals.

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 India's ports have suffered from congestion during 2011, potentially slowing the country's
growth trajectory.

Opportunities:
Indian shipping companies having acquisitions with foreign shipping companies
More than USD $4bn is expected to be invested in India's port sector.
New major container terminals being developed at the port of Chennai and Mumbai
Cargo volumes are expected to grow with an average of 16.5% year on year in the coming 510 years

CHAPTER 5

Learning and Findings

A, Objectives of Research:
1. To learn about the export import of Home furnishing items.
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2. To acquire knowledge about the Export procedure followed during export of

3.
4.
5.
6.

home furnishing items.

To know about the Shipping sector and Documentation.
To learn export documentation and process.
To know about various Documents needed during the export import.
To acquire knowledge about the various government authorities who issue

various type of documents which are needed during the export process?
7. To know about the importance and use of various Documents.
8. To know about the role of C&F agents.
9. To learn how to clear inspections and customs authorities clearance.

B, Study Followed:
An Observative Study of export procedures and documentation was done during the training
program, there was a discussion with consultant and Manager Munish Rana about the Company
and the procedure followed during the export process and custom clearances, study material was
provided by the consultant Mr. V.K. Batra and observative research is done by studying the
various procedures and comparing them with procedure followed in the industry. Study made me
aware of various export documents and authorities who issue the documents. All documents
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which are needed at time of claiming the shipment and at time of sending the shipment are part
of export process and there are various different authorities who issues different documents in
India and these documents are base of export process. After studying and research I found how
the documents are issued and which Government authority issues which Document, and where
these documents are needed.

C, On the basis of study and research my findings were:

1. Work of Clearing agent and Forwarding Agent.
2. How their work is Different, Duties and authorities of C&F agent.
3. Scope of Shipping Sector in INDIA.
4. Role of various Custom document.
5. Inspections and sealing process.
6. Claiming of incentives and payments
7. Various Government parties Involved.

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CHAPTER 6

References

Export planner, cbi.nl.com,

Export management, P.K. Khurana, Galgotia publishing company, new delhi,110005

(Book).
http://en.wikipedia.org/wiki/carpets
http://www.export.com/in/en/CompanyInfomation/HMI/index.htm
http://en.wikipedia.org/wiki/exports licenses
http://money.cnn.com/2011/05/10/_kia_success.fortune/index.htm
http://search.babylon.com/+financial+statement
http://www.salesforcecompensation.com/
http://www.export.com/carpet/-sales-promotion-strategy-in-india
OUTLOOK (magazine)

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Abbreviations
SB No.
AR-4
QC Cert. No
RBI Code No.

Shipping Bill No.

Application for removal 4.
Quality Control Certificate
Number
Reserve Bank of India Code

Number
L/C No.
Letter of Credit Number
CIF
Cost Insurance Freight
CFR*
Cost and Freight*
FOB
Free on Board
CHA
Custom House Agent
GR Form
Guaranteed Receipt Form
ETC License Export Trade Control License
QC
Quality Control Certificate
Certificate
DBK
Drawback
AWB No.
Airway Bill No.
EGM No.
Export General Manifesto No.
BE
Bill of Export

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ANNEXURE -1
DECLARATION TO BE FILED IN CASE OF EXPORT OF GOODS UNDER CLAIM FOR DRAWBACK
I / We

(name of the exporter) do hereby declare as follows:-

(a) that the quality and-specifications of the goods as stated in this Shipping Bill are in accordance with the terms of
the export contract entered into with the buyer/consignee in pursuance of which the goods are being e xported;
(b) that the duties of Customs and Central Excise have been paid in respect of the containers, packing materials and
other materials used in the manufacture of the export goods on which drawback is being claimed and that in respect
of such containers, packing materials or other materials, no separate claim for rebate of duty under Rule 12A or Rule
191A of the Central Excise Rules, 1944 has been made or will be made to the Central Excise authorities;
(c) That there is no change in the manufacturing formula and in the quantum per unit of the imported materials or
components if any, utilized in the manufacture of export goods; and that the materials or components, which have
been stated in the application under Rule 6 or Rule 7 to have been imported, continue to be so imported and are not
being obtained from indigenous sources;
(d) That the present market value of the goods is as follows:(e) That the goods are not manufactured and/or, exported in discharge of export obligation against an advance
license issued under the Duty Exemption Scheme vide relevant import and export policy in force;
(f) That the goods are riot manufactured and/or exported by a unit licensed as a 100% export oriented unit in terms
of the import and export policy in force;
(g) That the goods are not manufactured and/or exported by a unit situated in any Free Trade Zone, Export
Processing Zone or any such other Zone;
(h) That the goods are not manufactured partly or wholly in bonds under Section 65 of the Customs Act, 1962;
(i) That the goods are not manufactured partly or wholly in bond under Rule 191B of the Central Excise Rules,
1944;
(j) That the export value .of each of the goods covered by this shipping bill is not less than the total value of all
imported materials used in the manufacture of such goods.
[NOTE: Strike out the declaration whichever is not applicable]
Name & Signature of the exporter _________

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ANNEXURE - II
DECLARATION TO BE FILED IN THE CASE OF EXPORT OF GOODS UNDER THE D. E. E. C.
SCHEME
I / We _______________ (Name of the Exporter) do hereby declare as follows:(a) That the goods to be exported under this Shipping Bill are the products corresponding to the export products
specified against Sl. No. _____ in part (e) of the DEEC No. _______ dated ____ issued by the
Joint/Deputy Chief Controller of Imports & Exports ______________ (Name of the office).
(b) That the following raw materials/components/consumables have been used for the manufacture of goods covered
under this shipment, namely:-

Sl. No. Description

Quality

Technical characteristics

Quantity Whether imported/indigenous

(c) That I/We are not availing the benefit of the provisions of Rule 191A or Rule 191B of the Central Excise Rules,
1944
OR
That I/We are availing the benefit of the provisions of Rule 191A or Rule 191B of the Central Excise Rules, 1944 in
respect of ___________
(name of the item).
[NOTE: Strike out the declaration whichever is not applicable]

Name & Signature of the Exporter --------------------------(for use by the Customs authorities)
Shipping Bill No. & Date. -----------------------------Name & Signature of the Customs Officer ------------------

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ANNEXURE - III
DECLARATION TO BE FILED IN THE CASE OF EXPORT OF GOODS IN ANTICIPATION OF ISSUE
OF AN ADVANCE LICENCE/DEEC
I / We _________________ (name of the exporter) do hereby declare as follows:(a) That the shipment is in pursuance of discharge of the export obligation against export order No. _______ dated
______; and
(b) I/We request for registration of the shipping bill in anticipation of the grant of an Advance License/DEEC for
which we have already applied to the Licensing Authority, namely
vide our application No. _______ dated _______ and for which I/We have obtained the letter of permit/receipt No.
_______ dated _____ from the said Licensing Authority.
(c) That the following raw materials/components/consumables have been used for the manufacture of goods covered
under this shipment, namely:-

Sl. No. Description

Quality

Technical characteristics

Quantity Whether imported/indigenous

(c) That I/We are not availing the benefit of the provisions of Rule 191A or Rule 191B of the Central Excise Rules,
1944
OR
That I/We are availing the benefit of the provisions of Rule 191A or Rule 191B of the Central Excise Rules, 1944 in
respect of____________
(name of the item).
[NOTE: Strike out the declaration whichever is not applicable]
Name & Signature of the Exporter _________
(For use by the Customs authorities)
Shipping Bill No. & Date _________
Name & Signature of the Customs Officer_________

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ANNEXURE - IV
DECLARATION TO BE MADE ON SHIPPING BILLS FOR
CONSIGNMENTS COVERED BY AR-4A
PENDING WEIGHMENT AT THE DOCKS
In consideration of the Commissioner of Customs agreeing to assess the goods on the declared
weight pending verification by reference to AR-4A Forms, I/We ___________ (name of the
exporter) do hereby agree :(a) to pay any extra duty/cess leviable on the goods covered by the Shipping Bill, and
(b) to produce the AR-4A Forms covering the shipment to the Customs House within 15 days of
the shipment of the goods.
[NOTE: Strike out the declaration whichever is not applicable]
Name & Signature of the exporter
_________
(For use by Customs authorities)
Shipping Bill No. & Date.Name & Signature of the Customs
Officer_________

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ANNEXURE V
DECLARATION TO BE MADE BY EXPORTERS
WHO FILED SHIPPING BILL WITHOUT CERTIFICATE
FROM THE EXPORT INSPECTION FROM THE EXPORT INSPECTION AGENCY
ETC.
(a) I/We

(name of the exporter) do hereby declare the goods been dispatched

are shall be in accordance with the conditions prescribed in the Export (Quality Control and
Inspection) Act,1963. Application for necessary inspection/quality control has been made
to

(name of the export inspection agency) and the same in the original will be

produced along with the goods at the time of customs examination.

(b) I/We

(name of the exporter) do hereby declare the goods are as per the

quality control requirements under the Export (Quality Control and Inspection) Act, 1963.
Application for the issue of inspection/quality control certificate has been made to
which is duly authorized agency to issue such a certificate. The said certificate will be produced
to the Customs Officer for checking at the time of shipment.
[NOTE: Strike out the declaration whichever is not applicable]
Name & Signature of the exporter_________
(For use by the Customs authorities)
Shipping Bill No. & Date _________
Name & Signature of the Customs Officer_________

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