INTRODUCTION

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OBJECTIVES OF THE STUDY
 To familiarize with the organisation.
 To study about the different departments of the organisation &
it’s functioning.
 To understand how the processes are carried out in the
business.
 To gain experience for future.

METHODOLOGY OF THE STUDY

 Both primary and secondary data is collected from the

organisation.
 Primary data is collected through interviews with employees at
various levels.
 Secondary data is collected from interaction with other
organisations that have visited in internship days and through
Google.

THE PERIOD OF STUDY

The study was held from 04/02/2019 to 01/03/2019

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LIMITATIONS OF STUDY

 The time span of this project was limited to collect all the
information.
 There was not much sources for reference.
 The workers were too busy in their work, so it was difficult to
collect data.

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INDUSTRIAL PROFILE

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CUSTOM HOUSE AGENTS
"Custom House Agent" means a person licensed, temporarily or
otherwise, under the regulations made under sub-section (2) of
Section 146 of the Customs Act, 1962 (52 of 1962), [Section
65(35)]. The services rendered by the custom house agent are not
merely limited to the clearing of the import and export consignment.
The CHA also renders the service of loading/unloading of import or
export goods from/at the premises of the exporter/importer, the
packing, weighment, measurement of the export goods, the
transportation of the export goods to the customs station or the
import goods from the custom station to the importers premises,
carrying out of various statutory and other formalities such as
payment of expenses on account of octroi, destuffing /pelletisation
terminal handling, fumigation, drawback/DEEC processing, survey
/amendment fees, dock fees, repairing and examination charges,
landing and container charges, statutory labour charges, testing fees,
drug control formalities, sorting /marking/stamping/sealing on
behalf of the exporter/ importer. The custom house agent incur
various other expenses such as crane/fork lift charges, taxi charges,
Photostat and fax charges, bank collection charges, courier service
charges, and miscellaneous other expenses on account of the
importer /exporter. For all the above charges, the CHA is ordinarily
reimbursed by the importer/ exporter for whom the above services
are rendered. Apart from the above charges, the CHA also charges
the client for his services under the head /nomenclature of “agency
and attendance charges “ or similar kind of heads which is purported

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to be his service charge in respect of the services rendered in relation
to the import/export goods. There are various Custom House Agent
Associations which are currently running down their exertion in
India. Indian Agri Trade portal provide extensive list of almost all
CHA’s around various location of India. One can get their contact
details by searching CHA’s name or by state.

As per customs law, any exporter or importer can directly file

documents of their own shipments and complete the procedures and
formalities. It does not mean that the exporter/importer can file
documents of other exporter or importer. There are many firms
appointed their office personnel to clear the cargo of their own.
Normally ‘self-clearance’ arrangements are done by some of the
firms to have a complete transparency between customs authorities
and firm. However, most of the companies appoint a CHA for
smooth clearance of their goods which saves more time and
concentration their own trade, as CHA has more ‘communicating
strength’ with the customs authorities as they know exact language
of customs.

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DUTIES
Authorized clearances only against authorization:

A CHA is required to clear goods for import or export with specific

authorization from the principal, which must be produced whenever
required by the Deputy or Assistant Commissioner.

Personal clearance:

The CHA must personally clear the goods or clear them through an
employee designated by the Commissioner. All documents should
list the CHA's name at the top. The CHA should not attempt to
influence the conduct of customs officers in matters pending before
him or his subordinates; there should be no threats, false accusations
or duress against such officers, and no promise of advantage, benefit
or gift should be made or bestowed on such officers. The CHA's
duties should be discharged expeditiously, and he cannot charge
more than the rates approved by the Commissioner.

Conflicts of interest:

If the CHA is a former officer of a department, he cannot represent

any matter before a customs officer which he had considered as an
officer. He cannot use facts which came to his knowledge as an
officer.

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Correct advice:

The CHA must advise the client to comply with the provisions of the
Act and the regulations, diligently ensuring the imparting of correct,
relevant information to the client for clearance of cargo or baggage.
If there is non-compliance by a client, the CHA must bring it to the
attention of the deputy or assistant commissioner. This regulation
requires the CHA to provide information to the department.

Fiscal accountability:

The CHA must promptly pay the government all monies received
from the client for duties and taxes. Any money received from the
client or from the government should be promptly and fully
accounted to the client.

Record-keeping:

A CHA should not attempt to gather information from government

records if they are not provided by the appropriate officer. Access to
records should not be denied, removed or concealed when sought by
the Commissioner. Records and accounts must be maintained as
directed by the Deputy or Assistant Commissioner, and available for
inspection. All documents must be prepared in accordance with rules
and orders.

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COMPANY PROFILE

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ISLAND SHIPPING AGENCIES

Island shipping agencies customs brokers are the specialists in

addressing the worldwide import & export requirements. Combined
with a vast range of services, island shipping agencies is able to
provide customer, the fastest possible access to the cargo as it
crosses through countries and continents via ocean.

At Island shipping agencies, they take pride in their work. Working

closely with the shipper translates into the provision of a quick and
transparent release of the international freight they are connected to
India Customs electronically, through ICEGATE and thus the
expediting the documents. At Island shipping agencies, every
shipment is a priority shipment for them

Their services are:

 Import Customs Clearance

 Export Clearance under various Schemes
 Duty Drawbacks
 SAD Refunds
 SVB (Clearance under Related Party Transaction)
 Clearance under EOU/SEZ/EPCG/Advance Licence
 Pre & Post Import Consultation

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With profound domain expertise, Island shipping agencies is capable
of rendering Custom Clearance Service. The professionals in this
agencies have updated knowledge of rules & regulations of customs
by utilizing their knowledge clears sea consignment with hassle free
manner. This service main aim to advice to the customers & help
them to maintain documents related to import and export within the
deadline. During the process, they ensure the safety of
consignments. Further, their valuable clients enjoy this comfortable
service at highly competitive prices. In this range of service they
handle:

 Custom documentation
 Carting / receiving goods
 Examination of shipments
 Handling of stuffing & de-stuffing at ports, ICD/CFS and at
customer’s warehouse/Factory.

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Service profile

 Transportation of goods to docks and arrangements of

warehousing at port
 Warehousing facilities before the goods are transported to
docks
 Booking of shipping space or air freighting and advice on
relative cost sending goods by sea and air
 Arrangements for loading of goods on board
 Equipped with information on shipping lines and freight to
different destinations, and various charges payable by
exporters
 Obtaining marine insurance policies
 Preparation and processing of shipping documents, bill of
lading, dock receipt, export declarations, consular invoice,
certificate of origin, etc.
 Forwarding of banking collection papers.

Desirable Services

 Can trace the goods, if shipment goes astray, through his

international connections.
 Arrangement for assessing the damage to shipment enroute.

At Present, Island shipping agencies renders the following Services:-

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  Traditional services like product classification, export and
import compliance trade documentation, landed cost
calculations, record keeping on client’s behalf, etc.
 Logistics services like warehouse management and
distribution, arranging International transportation and
managing reverse logistics;
 Consulting services that include trade consulting, free zone
consulting, legal Services, etc.
 Intermediary services like intermediary in financial products,
intermediary in insurance products and services on behalf of
other CHAs;
 Inspection services like product valuation services and
physical inspection Services
 Other services like trade automation services and managing
supply chain security.

Company competitors

 Hina Shipping & Clearing (Cochin) Pvt. Ltd

 Classic India Logistics
 A V Thomas & Co. Ltd
 Aqua Transporting Agency
 Blue Wave Shipping

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COMPANY STRUCTURE

Island shipping agencies

Managing partners

General Manager

Documentation Operations Transportation Accounting

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Welfare measures
Island shipping agencies is registered in Cochin custom brokers
association.by this they are in the

COCHIN TRAILER USERS WELFARE ASSOCIATION:-

CTUWA was registered with statutory authorities in March 2003 and

Cochin Trailer Users Welfare Association was formally inaugurated on
02nd April 2003.

They reproduce below the main aspects pertaining to the transportation of

containers at Cochin Port in accordance with the judgement of the Hon-ble
High Court of Kerala dated 26.07.2002. The Hon-ble Court upheld the
decision taken by the Chairman, Cochin Port Trust as per the meeting held
on 05.07.2002 with all affected parties on the above issue.

1. Notwithstanding the internal code of conduct evolved by the members

of the CCCOWA, the association or members of the association or their
workmen shall not prevent /obstruct a non-member like CHA, Shipper etc.
operating their trailers in the Port area in the manner they would like to.

2. The out-station trucks arriving either empty or with loads shall not be
obstructed/prevented by the association or its members or their workmen
from carrying the return loads from Cochin Port area.

3. A non-member shall be free to provide his vehicle to any other person

or firm the commercial use the rate mutually agreed.

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4. CCCOWA shall not deny the trucks to any person requisitioned the
trucks, provided such person shall pay the amount in advance and observe
the formalities of availing services. There shall not be any discrimination
by CCCOWA in allotting vehicles to any non-member.

5. Non-member shall have the freedom to choose or change his transport

contractor, provided he has settled the outstanding dues, if any, to the
previous contractor.

6. There shall be no discrimination in the procedure for granting

membership to the CCCOWA. The procedure shall be transparent and
objective. If any member chooses to join CCCOWA, he will abide the
rules and regulations of the association in Toto.

7. The employment aspects of the labour shall not be brought up as a

material point in the commercial negotiations/transaction with the CHAs
/Shippers. The CCCOWA shall themselves ensure appropriate wages, Bata
and other employment requirements of their employees.

The activities of CCCOWA should be supportive to the CHAs/Shippers

and absolutely devoid of any coercion and undue influence in the overall
interest of the exim trade in general and the Port in particular. The
situation started to improve gradually. But the situation became worse in
the month of February 2003. An EGM was convened by the CCBA
immediately to discuss the above issue and it was unanimously decided to
form a separate Association called Cochin Trailer Users Welfare
Association to protect the interest of CHAs and members of CTUWA.
There after many meetings were convened to frame and approve the

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Memorandum of Association and Rules and regulations of CTUWA. The
membership of CTUWA is open to CHAs and individual trailer owners.

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Insurance for containers at Cochin Port:-
Insurance coverage is given to protect CHAs in the case of any damage
occurs while in transit of the export/import container CCBA in
consultation with Steamer Agents Association introduced a container
insurance scheme which came into operation from 02nd. April 2003, and
officially launched by Shri. A.C. Jose M.P. at a distinguished gathering
comprising all segments of trade at Hotel Casino. W. Island

The risk covered by Cochin Custom Brokers Association in its policy is

much more wider. Unlike the other policies offered by some other
organizations which is only a contingency policy. The following risks are
covered under the policy of CCBA.

Loss or damage to the subject-matter insured reasonably attributable to

 fire or explosion
 overturning or derailment of land conveyance
 collision of conveyance with any external object
 strike ,riot or civil commotion
 malicious damage
 storm typhoon flood inundation

There are no strings attached to the above Policy. Hence Shippers, Steamer
Agents, CHAs can have peace of mind. Containers are insured against the
full value of containers as indicated by Cochin Steamer Agents
Association and not on a depreciated value.

CCBA also gives a written guarantee to the Steamer Agent with all the
requisite details when a CHA on behalf of his exporter/importer takes

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delivery of containers for stuffing/de-stuffing and to indemnify the said
steamer Agent against the risks so covered. Hence at last CHAs who opt
for the policy under CCBA can now have a piece of mind so that they need
not repent later on in case any accident to export/import container while in
transit.

Movement of trailers and transportation of containers at Willingdon Island

and the formation of Cochin Trailer Users Welfare Association

The existence of CTUWA is very essential for the CHA community and
members are requested to avail the services of CTUWA pertaining to your
export/import transactions through the port of Cochin.

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 STUDY OF
DEPARTMENTS

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Departments
The term 'Department' may cover a wide variety of meanings, from e.g. a
geographical or administrative division within a country, to a
governmental ministry or a part of an institution, such as a university.
Departments within a company can be organized around a number of
different parameters, e.g. function, product, customer, geography or
process.

From a financial point of view it may be interesting to look at the income

and expenses for each department.

Departments are useful for companies of a certain size, since they allow
for a more detailed overview of the performance of each unit within a
company. This way, companies are better equipped to improve the most
required areas. For small companies, departments are often of less use -
but each company should always be considered separately.

Departments in island shipping agencies

 Documentation
 Operations
 Transportation
 accounting

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Documentation
Documentation is a set of documents provided on paper, or online, or
on digital or analogue media, such as audio tape or CDs. Examples are
user guides, white papers, on-line help, and quick-reference guides. It is
becoming less common to see paper (hard-copy) documentation.
Documentation is distributed via websites, software products, and other
on-line applications.

Customs clearance work involves preparation and submission of

documentations required to facilitate export or imports into the country,
representing client during customs examination, assessment, payment of
duty and co taking delivery of cargo from customs after clearance along
with documents.

There is a great deal of paperwork involved in international shipping. The

complications of shipping cargo from one country to another are much.

The documentation department have the experience and knowledge of

smoothly shipping cargo from one country to another so, the shipper, don’t
have to worry about all the details, regulations, and hassles and can focus
on the business.

Being accurate and thorough with, the paperwork is important. This

includes business information, inventories or itemized lists of shipments,
and value of cargo.

This information affects the duties and custom fees at the ports; helps
assess the risk of the cargo shipment, and more.

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Some of the documents involved in customs clearance are:

1. Exports Documentation:
 Purchase order from Buyer
 Sales Invoice
 Packing List
 Shipping bill
 Bill of Lading
 Certificate of Origin
 Specific documentation as specified by the buyer, or as required by
financial institutions or LC terms or as per importing country
regulations.

2. Imports Documentation:
 Purchase Order from Buyer
 Sales Invoice of supplier
 Bill of Entry
 Bill of Lading
 Packing List
 Certificate of Origin
 Specific documentation required by the buyer, or financial institution
or the importing country regulation.

By these documents, the CHA gets customs clearance and gets permission
to export or import containers through ports, for stacking, for
transportation etc.

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Operations
Operation means The actions and decisions made by participants and
members of a business that affect the production, distribution, service,
management, etc. needed for a company to function that requires the use
of resources and assets.

These procedures are used to create goods and services, market them to
customers, and deliver the final products. Thus, every business’ operations
are slightly different.

Jobs or tasks consisting of one or more elements or subtasks, performed

typically in one location.

Operations transform resource or data inputs into desired goods, services,

or results, and create and deliver value to the customers. Two or more
connected operations constitute a process, and are generally divided into
four basic categories:
(1) Processing
(2) Inspection
(3) Transport
(4) Storage.

In custom house agencies, the operations which are taking place are
 Shipping
 Transport
 Clearing
 Forwarding

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The operations of the agency is mainly done on

International container transhipment terminal (ICTT)

The Kochi International Container Transhipment Terminal (ICTT), locally
known as the Vallarpadam Terminal, is the first transhipment terminal in
India and the first container terminal to operate in a SEZ. It is part of
the Cochin Port in Kochi, Kerala.
It is designated for the handling, storage, and possibly loading or
unloading of cargo into or out of containers, and where containers can be
picked up, dropped off, maintained, stored, or loaded or unloaded from
one mode of transport to another (that is, vessel, truck, barge, or rail).

Container freight station (CFS)

A container freight station is a location, usually a warehouse, where
products and other goods are collected, stored, and where they wait to be
shipped to the next location. This process is a major part of the product
shipping industry and it’s important to understand how the process works.
They are an integral part of any LCL (Less than Container Load) shipping.
When an order prepared for shipping is less than a full container, it is most
often more cost effective to ship by LCL. In this instance, the freight is
taken to a warehouse where it waits for consolidation, or in some cases, for
the rest of the goods to catch up. The container is then loaded onto a truck
or ship and sent to its destination.
Here the containers are examined
The major CFS of Cochin port are Q10 (Cochin port CFS),Willingdon
Island and Falcon CFS (Kerala state) Kalamassery.

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Transportation
Transport or transportation is the movement of humans, animals
and goods from one location to another. In other words the action of
transport is defined as a particular movement of an organism or thing from
a point A to the Point B .It includes air, land(rail and road), water, cable,
pipeline and space. The field can be divided into infrastructure, vehicles
and operations. Transport is important because it enables trade between
people, which is essential for the development of civilizations.

Freight transport is the physical process of transporting commodities and

merchandise goods and cargo. The term shipping originally referred to
transport by sea, but in American English, it has been extended to refer to
transport by land or air (International English: "carriage") as well.
"Logistics", a term borrowed from the military environment, is also
fashionably used in the same sense.

Much shipping is done by actual ships. An individual nation's fleet and the
people that crew it are referred to as its merchant navy or merchant
marine. Merchant shipping is the lifeblood of the world economy, carrying
90% of international trade with 102,194 commercial ships worldwide. On
rivers and canals, barges are often used to carry bulk cargo.

The transportation department looks after the shipment, vessels,

containers, movement of containers to CFS, movement of containers to
destination etc.

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Accounting
Accounting or accountancy is the measurement, processing,
and communication of financial information about economic entities such
as businesses and corporations.. Accounting, which has been called the
"language of business", measures the results of an organization's economic
activities and conveys this information to a variety of users,
including investors, creditors, management, and regulators. Practitioners of
accounting are known as accountants. The terms "accounting" and
"financial reporting" are often used as synonyms.

Accounting can be divided into several fields including financial

accounting, management accounting, external auditing, tax
accounting and cost accounting.

The company charges two type of amount from its clients.

1. for providing services

2. for payment at port on behalf of clients.

The customs duty, indirect taxes, land rent, tax invoices etc are doing by
this department.

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ANALYSIS

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Findings

 The overall functioning of the agency is smoothly running.

 This agency has a good relationship with other ports.
 They are doing a major role In forwarding, cleaning, shipping etc.
 They are recognized custom brokers by government of India &
A licensed custom house agent by the central board of indirect taxes
and customs
 They are one of the most trusted custom house agents in cochin port

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 Suggestions

 Human resources should be more encouraged.

 The company needs more facilities
 There should be a stability in the work of an employee ie. Make an
employee specialize in one field.
 Recreation should be promoted after long period of work. It can
make them more fresh and active.

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SWOC ANALYSIS
SWOC analysis (strengths, weaknesses, opportunities and Challenges
analysis) is a framework for identifying and analysing the internal and
external factors that can have an impact on the viability of a project,
product, place or person.

SWOC analysis is most commonly used by business entities, but it is also

used by non-profit organizations and, to a lesser degree, individuals for
personal assessment. Additionally, it can be used to assess initiatives,
products or projects.

The framework is credited to Albert Humphrey, who tested the approach

in the 1960s and 1970s at the Stanford Research Institute. Developed for
business and based on data from Fortune 500 companies, the SWOC
analysis has been adopted by organizations of all types as an aid to making
decisions.

A SWOC analysis is often used at the start of or as part of a strategic

planning exercise. The framework is considered a powerful support for
decision-making because it enables an entity to uncover opportunities for
success that were previously unarticulated or to highlight threats before
they become overly burdensome. For example, this exercise can identify a
market niche in which a business has a competitive advantage or help
individuals plot career success by pinpointing a path that maximizes their
strengths while alerting them to threats that can thwart achievement.

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STRENGHT
1. It has network in around 40 countries

2. Blue chip customers across many commercial & industrial sectors

3. It reported increase in air freight volumes despite the dramatic

global downturn

4. Serves over 100+ corporate clients from diverse sectors

WEAKNESS

1. They have small number of employees which is very low

2. Brand name has limited recall owing to lesser adverting and reach

compared to global leaders

OPPORTUNITIES

1. It has a top ranking in ocean volume which can help them to get

strong business in ocean services

2. More penetration in emerging economies can boost its operations

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CHALLENGES

1. Major players in the industry

2.Small players with very low cost

3. Fluctuating economies and stringent government policies

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CONCLUSION

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A project entitled ‘ORGANISATION STUDY’ at ISLAND SHIPPING
AGENCIES, Willingdon Island was carried with a core objective to
understand about the base through which the company manages the
operations in Island Shipping Agencies.
Island shipping agencies is one of the most trusted custom house agents in
Cochin. Since the growth of company, the department played a vital role
in the progress of the organization. This study helped me to understand the
operations that are taking place.
This study concludes that there exist efficient and effective management in
the organization. This study also identifies areas where further
improvements are needed. And also, it helped me to get a practical
knowledge about the functioning of the organization.

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BIBLIOGRAPHY

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Search engines

 Wikipedia
www.wikipedia.org
 Google
www.google.com
Websites

 Central board of indirect taxes and customs.

www.cbic.gov.in
 Customs house, Cochin.
cochincustoms.nic.in
 D P World, Cochin.
www.igtpl.com
 Cochin Custom Brokers Association.
www.cchaa.org
 South Indian Chamber of Commerce and Industries.
www.sicci.in

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