CERITIFICATE

This is to certify that Mr. Jitendra Solanki, has proceeded under my supervision his Research Project on Export & Import Procedure and Documentation The work embodied in this report is original and is of the standard expected of an PGDM student and has not been submitted in part or full to this or any other university for the award of any degree diploma. He has completed all requirements of guidelines for project report and the work is fit for evaluation.

Forwarded Through the research guide.

Signature of the candidate

Signature of the guide

(Name of guide- Prof. Suhas Prabhu) (Designation: HOD Operations)

(Jitendra Solanki)

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ACKNOWLEDGEMENT
We are very thankful to Thakur Institute of Management Studies & Research who give us such opportunity to work out for project. We also express our gratitude to Mr. Suhas Prabhu for his precious help during the entire course. We are very thankful to all employees of SABLE FAREAST LIMITED, MUMBAI for supporting and providing us the necessary knowledge that would help in our future quests. During our training period, we have not only learnt the Import & Export procedure but also learned about other aspects of for running the shipping departments smoothly. The various department of the organization work in close co-ordination with each other in order to achieve a common end. We would also like to thanks Mr. Dilip Maheta, Mr. Rajesh Naiyer, Mr. Lalit Agrawal, and Mr. Rakesh, Mr. Manoj for their guidance which help us to complete our project. Once again we heartly thankful to SABLE FAREAST LIMITED who help us in making a project of procedure import and export and gives us an opportunity to learn under kind guidance and learning environment.

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PREFACE

We know that training is for the development and enhancement of the knowledge in particular fields. It can never be possible to make a mark in todays competitive era only with theoretical knowledge when industries are developing at global level, practical knowledge of administration and management of business is very important. Hence, practical study is of great importance to PGDM student. With a view to expand the boundaries of thinking, we have undergone 2rd SEM TRAINING at SABLE FAREAST LIMITED. We have made a deliberate to collect the required information and fulfill training objective.

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EXECUTIVE SUMMRY
As a partial fulfilment of PGDM all students are required to undergo training for 2 months. With respect to that this we have prepared this project report on Import & Export Procedure and documentation undertaken at SABLE FAREAST LIMITED, MUMBAI We have selected this topic to know about the custom process. This report also tells about present scenario of Indian shipping and also tells about development in Import of Maharashtra. Another objective is to know Documentation process done by CHA (Clearing House Agent) to clear the goods from CUSTOM. Our secondary objective is to know the relation between CHA and importer as well as exporter. The report also describes that why shipping line invest their amount to purchase ship and type of ship for transportation of goods.

This report also tells that as that how to calculate the DUTY on import-export goods. We also describe that which Documents are useful for CHA, IMPORTER and EXPORTER.

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OBJECTIVE OF THE STUDY

To know about export and import process. To know the relation between the CHA and exporter as well as importer. To know the documentation process done by the CHA, IMPORTER and EXPORTER. To know different types of container used in shipment.

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INDEX
Contents Acknowledgement Preface Executive Summary Objective of Study List of Table Abstract 1. Introduction 1.1 Project 1.2 Industry 1.3 Company 2. Different Types of Ships Page No. 2 3 4 5 6 7-9 7 7 8 9 10-15 17-37 17-30 31-37 38 39 40

3.

Data Collection and Explanation 3.1 Export 3.2 Import

4. Recommendation 5. Conclusion Bibliography

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INTRODUCTION
1.1 Project: In view of the rapidly and constantly changing business environment globally and fast evolving trade and commerce scenario in India vis--vis global market, there is increasing requirement of reliable and dependable integrated logistics solutions providers who can provide comprehensive, professional and dependable logistics support to the industry, keeping the same in mind and with the vision to provide quality and professional comprehensive logistics solutions to the international & domestic trade. In the development of any countrys economy, exports play a crucial role. Export is the most important aspect of earning foreign exchange. A country should have to be equipped with natural resources, so that it can sell these resources into the international market. With the opening up of the Indian economy, the international trade has been increased significantly as there are less restriction on exports and imports. More and more multinationals are registering their entry into the Indian market. The imported products are now in well reach of Indian customers. The living standard has been improved. This results in substantial amount of growth in both exports and imports. The procedure of both the exports and imports are time consuming and complicated. In this regard there are several logistic companies and custom house agents providing their services on the behalf of the exporters and importers to facilitate the trade between them. These custom house agents and logistics companies take over the responsibility of sending the goods from the exporters premises to the importer premises, which also includes the most important aspect of custom clearance. SABLE FAREAST LIMITED is a leading name for IMPORT & EXPORT. Over the years they have operated smoothly with their wide spectrum of personalized services

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1.2 Industry:

Indian shipping scenario: India has 12 major ports and 185 minor/intermediate ports. Over 90 percent by volume and 70 percent by value of Indias overseas trade, aggregate of exports and imports, is carried out through maritime transport along its 7617 km long coast line. India has the largest merchant shipping fleet among the developing countries and its merchant shipping fleet ranks 18th in the world, in terms of fleet size. Another silver lining is the average age of the Indias merchant shipping fleet is only 12.7 years as compared to the international average of 17 years .but, Indias share, sadly, constitutes only 1.45% of the worlds cargo carrying capacity. As on April 1, 2009, India has a total of 686 ships comprising 8.01 Million Gross Tonnage (GT) and 13.28 Million Dead Weight Tonnage (DWT). The shipping corporation of India (SCI), the countrys largest carrier, owns and manages 82 ships with 2.54 million GT and accounts for 40 percent of national tonnage. India is also among the few countries that offer fair and free competition to all shipping companies for obtaining cargo. There is no cargo reservation policy in India. Indian shipping has remained a deferred subject till independence. Only after independence, the development of shipping has attracted the state policy. The subject of shipping, in the beginning, has been dealt with by the ministry of commerce, till 1949 and subsequently, in 1951, it has been shifted to the ministry of transport and shipping. In 1947, the government of India has announced the national policy on shipping, aiming at the total development of the industry. In order to accelerate the developmental efforts, the necessity for a centralized administrative organization has been felt. Accordingly in September necessity for a centralized administrative organization has been felt. Accordingly in September 1949, the directorate general of shipping with its headquarters at Bombay has been established with the objectives of promotion and development of Indian shipping industry.

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1.3 Company:

An ISO 9001:2000 Company, formally known as Sable Fareast Limited was established in 1995. A leading Export and Import Company, has established its basis at three different places across word. Companys offices located at Hongkong, Shanghai, and Mumbai. The activities of the group cover international trading in a diverse range of commodities and business relationships range with customers spread across a wide variety of markets. The major markets where the group has business interest are Taiwan, China, Japan, Thailand, Indonesia, Malaysia, Hong Kong, Vietnam, Bangladesh, Dubai, India, Nepal, Iran, Romania, and several others. Major items handled by Sable Fareast Limited are as follows: Imports: PU leather, Stainless Steel Pipe, Weather Strip, Silicon Sealant, Frixen Stay, Wire Mesh, Flore Spring, Swing Machine, Swing Machinery parts, Latex Gloves, PVC Resin. Exports: PTFE scrap, Textiles, Marbles, Handicraft,

Company also deals in:  Packaging  Warehousing  Freight Forwarding  Clearance of Import and Export  Projects

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Different Types of Ships

 Container ships  Roll-on/roll-off ships  Break-bulk ships  Crude carries  Dry-bulk carriers  Gas carriers

Container ship :-

 

Container ship is also known as a BOX SHIP Container ships cater to only containerized cargo and generally have cranes on board. They can store up to 4 tiers of containers below the main

deck and up to 3 tiers above deck

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Roll on / Roll - off Ships:-

Roll-on/roll-of ships were created to accommodate cargo that was self propelled, such as automobiles or trucks, or cargo that could be wheeled into a ship, such as railroad cars. They are essentially floating garages. It takes long time to load such vehicles over the rail it is preferable to load them by rolling them onto the ship.

 up and

Roll-on/Roll-of ships therefore have a portion of their hull that opens acts as a ramp on which the vehicles are driven before being

parked on the many decks of the ship and secured with chains. The hull opening is either on the side of the ship or on its stern (rear).This ship have an advantage in that specialized lifting equipment is not required, even for the heaviest of loads, since the cargo rolls under its own power or pulled by a tractor.

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Break-BulkShips:

  

Break-bulk cargo ships are multipurpose ships that can transport shipments of unusual sizes, unitized on pallets, in bags, or in crates. Due to increasing role of RORO (Roll-on/Roll-off) ships, container ships, break-bulk ships share of international trade is decreasing. The advantage of break-bulk ships is that they can call at just about any port to pick up different kinds of cargo loads, giving them a flexibility that container ships do not yet have.

The main problem with a break-bulk ship stems from its labor-intensive loading and unloading because each unit of cargo handles separately

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Crude Carriers:-

   in

Crude carriers are the bulk ships dedicated to the transport of petroleum products, whether unrefined or refined, such as gasoline or diesel fuel.

The crude carriers are also known as VLCC (Very Large Crude Carriers) and ULCC (Ultra Large Crude Carriers). VLCCs and ULCCs are such large ships that they can call on only a few ports the world; since their draft, when loaded, can reach 35 meters(115 feet) they

need very deep ports for berthing

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Dry-Bulk Carriers:-

  placed.  ores, 

Dry-bulk carriers operate on the same basis as oil tankers in that they are chartered for a whole voyage.

Dry-bulk ships have several holds in their hull, in which non-unitized cargo is

Dry bulk ships carry agricultural products, such as cereals, as well as coal, scrap iron, dry chemicals, and other bulk commodities. Dry-bulk ships are generally small enough to fit through the PANAMA CANAL

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Gas Carriers:-

Another important bulk trade is the transportation of Liquefied Natural Gas (LNG) and of Liquefied Petroleum Gas (LPG). These types of carriers have a very distinctive shape. These ships hold several spheres of compressed gasses, only part of which are visible above their main deck.

The LNG and LPG trades tend to be slightly different than the average bulk transport, as they are used in a particular trade for long periods of time, on long- term contracts-called time charter parties and therefore nearly have a sailing schedule, not unlike liner ships.

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3. DATA COLLECTION AND EXPLANATION

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3.1 Export Export Procedure

Export preliminaries: In order to enter into export business, certain preliminary steps have to be taken by every business organization. The setting up of an export firm is completed in two stages. They are: A) Establishing a business firm-: There are various formalities and registrations to be made with different authorities before an exporter can enter into export business and accept an export order. 1) Selection of name of the firm-: An entrepreneur can choose any name for the firm he wants to start. It is desirable that the name of the firms indicates that the business relates to export/import. 2) Approval to name of firm-: There is no need to obtain prior approval of regional licensing authority of DGFT (Directorate General of Foreign Trade) for the proposed name of business firm. However, if the firm is planning to export readymade garments to any country; approval from Apparel Export Promotion Council (AEPC) is required. The entrepreneur has to apply to AEPC in the prescribed application form for the clearance of the name. Once the name is approved, registration of firm in that name with AEPC is to be made within a period of three months. After the registration is done, the firm would become registered exporter.

3) Registration of Organization-: The form of organization can be sole partnership, partnership firm under Indian partnership act, 1932 or join stock company registered under the companies act, 1956. 4) Opening of Bank Account-: The firm or company has to open a bank account with branch of a commercial bank, authorized by reserve bank of India to deal in foreign exchange. The firm may require pre and post shipment finance for its business.

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5) Obtaining Permanent Account Number-: export income is subject to a number of exemptions and deductions under the income tax act. For claiming those exemptions and deductions, it is necessary for every exporter to obtain permanent account number from the income tax authority. 6) Registration with Sales Tax Authorities-: exporter need not pay sales tax while making purchases meant for export. But for availing the benefit, firm has to register with sales tax authorities and secure sales tax number.

B) Obtaining the importer-exporter code number -: This is required for completing other registrations.

1. Importer - Exporter Code Number (IEC)-: No export or import transaction can be made without obtaining an importer-exporter code number. IEC number is a precondition for exports from and imports into India. IEC number entitles to import or export any item of non-prohibited goods. This code number is made compulsory now. The registered /head office of the applicant shall make an application for grant of IEC number to the regional office of DGFT (known as Regional Licensing Authority), having territorial jurisdiction over the firm, along with the following documents: profile of the exporter/importer, demand draft from a bank for rs.1000 as fees, certificate from the banker of the applicant, two copies of passport size of the applicant, declaration on applicants letterhead that there is no association of the applicants firm with caution listed firms. The licensing authority shall allot the IEC number in prescribed format. There is no expiry date for IEC number. This number is invariably used in all documents particularly in bill of entry in case of imports and shipping bill in case of exports. 2. Registration Cum Membership Certificate (RCMC) -: it is obligatory for every exporter to register with appropriate Export Promotion Council (EPC) and obtain registration cum membership certificate. Any person applying for import or export license or any other benefit under the current exim policy is required to obtain registration cum membership certificate (RCMC). The benefits provided in the

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current EXIM policy are available only to those having valid RCMC with the receipt of the certificate the exporter will be known as Registered Exporter 3. Registration with Export Credit and Guarantee Corporation (ECGC)-: The exporter should also register with export credit and guarantee corporation of India (ECGC) in order to secure export payments against political and commercial risks. It also helps to get financial assistance from commercial banks and other financial organization. 4. Registration with other authorities -: It is desirable for the exporters to become members of local chamber of commerce, productivity council or any other trade promotion organization recognized by the ministry of commerce or industry. Local membership helps the exporters in different ways, including in obtaining certificate of origin, which is vital for exporter to certain countries. 5. Registration for business identification number (BIN)-: The exporters have to obtain pan based Business Identification Number (BIN) from DGFT (Director General Foreign Trade) prior to filling for custom clearance of export goods. Purpose of bin is to bring a common identification number to all persons dealing with various regulatory agencies such as custom department, central excise etc. 6. Export Licensing - : many items of goods are free for exports without obtaining any license, if they do not fall in the negative list. The negative list consist of goods the import or export of which is prohibited, restricted or canalized. Prohibited items-: these items cannot be exported or imported. These items include wild life, exotic birds, wood and wood products in the form of logs, timber, pulp and charcoal. Restricted items -: these are the items, export or import of which is restricted through license. They can be imported or exported only in accordance with the regulations governing in this behalf. So it is necessary for the exporter to check the nature of the item before he enters into the contract or even makes efforts to secure the export order. Needless to add, the items of export agreed upon should not be fall in the negative/ banned list.

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Exporters incentives & drawback:

Incentives & facilities: Advance license -: inputs required for manufacturing export products can be imported without payment of custom duty under advance license. Since the raw materials can be imported before exports of final product, the license issued for this purpose is called advance licenses. An advance license is issued under duty exemption scheme to allow import of inputs, which are physically incorporated in the export product. Duty free replenishment certificate (DFRC):- DFRC is issued to a merchant exporter or manufacturer exporter for the duty free import of inputs such as raw materials, components, intermediates, consumables, spare parts, including packing materials to be used for export production. Such license is given subject of the fulfilment of time bound export obligation. Duty entitlement passbook scheme (DEPB):- under the DEPB scheme, an exporter may apply for credit as a specified percentage of fob value of exports, made in freely convertible currency. The credit shall be available against such export products and at such rates as may be specified by the director general of foreign trade (DGFT) by way of public notice issued in this behalf, for import of raw materials, intermediates, components, parts, packaging materials, etc. Export promotion capital goods scheme (EPCG):- EPCG scheme was introduced by the EXIM policy of 1992-97 in order to enable manufacturer exporter to import machinery and other capital goods for export production at confessional or no customs duties at all. This facility is subject to export obligation, i.e., the exporter is required to guarantee exports of certain minimum value, which is in multiple of title value of capital goods imported.

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The different steps involved in export department are as follows: Step 1: Exporter sends the following document to any CHA. Letter of credit: Assures exporter his payment promise to pay a seller (Beneficiary) upon receipt of goods by a buyer if certain conditions outlined in the Letter have been met.

It is a method of payment for goods in the buyer establishes which his credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required, and a time limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by the buyer or takes title to the goods themselves and proceeds to transfer funds to the seller. Types of letter of credit Clean letter of credit: negotiated against a clean draft without any documents

Documentary letter of credit: documents specified in the letter of credit must accompany the draft

Revocable letter of credit: can be cancelled or revoked any time without the consent or notice to the beneficiary

Irrevocable letter of credit: cannot be amended, revoked or modified by the issuing bank without the express consent of all parties concerned Thus the issuing bank has definite undertaking to honor drafts drawn under that credit, provided that the conditions in letter of credit are met.

Confirmed letter of credit: Issuing bank sends letter of credit to the bank located in beneficiarys country with a request to add confirmation to the credit

Confirmation involves legal undertaking on the part of the confirming bank that it will duly honor payment or acceptance on presentation of documents
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Back to back letter of credit: SECONDARY CREDIT: In favour of a domestic supplier. The original credit backs the

secondary credit and facilitates the purchase of goods from a local supplier by the original beneficiary of L/C

Red clause letter of credit: Allows exporter to withdraw a predetermined he is able to pay his suppliers and purchase relevant letter of credit

amount so that

Packing list: A list which shows number and kinds of packages being shipped, totals of gross, legal, and net weights of the packages, and marks and numbers on the packages. The list may be requested by an importer or may be required by an importing country to facilitate the clearance of goods through customs. Invoice: One of the common to both international and domestic transactions is the bill (invoice) that the exporter sends to the importer. However, the content of an international invoice is more complex and should be prepared slightly differently for a foreign customer than for a domestic one. Step 2:

On the basis of invoice, CHA prepare Annexure A, Annexure C, Annexure D and SDF (Statutory Declaration Form) along with the invoice.

Step 3:

Send these annexure to the custom house. The custom prepares the shipping bill in four copies on the basis of these annexure.

Step 4:

Custom calculate the duty (CESS) on the value of the goods.

Using the Treasury Challan the duty can be paid. Cargo can enter the port premises.

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Step5: Custom examined the cargo by using the sample. (Customs examined the cargo only after the duty is paid) in case of more than one container in one B/L than A.C give some container no. randomly for examination and that container must be de-stuff by CHA. Step 6: The duplicate shipping bill and wharf age duly paid is given to the container agent. The container agent hand over the duplicate shipping bill to the vessel agent who is here uses it for the purpose of filling EGM (Export General Manifest). The container agent gives the wharf age form paid is given to the container agent grants the loading permission. (But in case of the break bulk cargo, the CHA itself submits the wharf age paid form to the port authority, so that loading can be allowed in the vessel). Step 7: In the case of break bulk, after loading the cargo the chief officer issues the mate receipt, on the basis of which captain of the vessel issues the bill of lading.

Step 8: Besides all the CHA sends the phytosanitary certificates/pre inspection certificate to the exporter so that with all documents he can submit this to the bank. In case of charter, after processing and shipment of the goods following documents are sent back by the CHA to exporter.

Full set of bill of lading: For pre carriage is through ship the bill prepared for export is called bill of lading & if the shipment is by air then the bill prepared is called airway bill. A bill of lading is a very important document. It is issued by the logistics service providers. It can be well explained as a document issued by a common carrier to a shipper that serves as:

A receipt for the goods delivered to the carrier for shipment.

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A definition of the contract of carriage of the goods. A Document of Title to the goods described therein. This document is generally not negotiable unless consigned "to order." If we ask to the logistics companies than a Bill Of Lading is a product for them. They do the whole business on the Bill of Lading. Increase in Bill of Lading shows increase in companys turnover.

Bill of Lading, On Board: A bill of lading acknowledging that the relative goods have been received on board a Specified vessel.

Bill of lading, Order:

It is a negotiable bill of lading. There are two types: A bill drawn to the order of a foreign consignee, enabling him to endorse the bill to a third party. A bill of lading drawn to the order of the shipper and endorsed by him either "in blank" or to a named consignee. The purpose of the latter bill is to protect the shipper against the buyer's obtaining the merchandise before he has paid or accepted the relative draft. To get B/L, software (Visual Samudra) is used. Various details are entered in the software such as Vessel Name & Number, Consignee, Shipper, Notify Address, Quantity, No. Of Packages, Packing List (Details of Material), Container No. etc. The invoice is given to the company by the shipper. And a shipping bill is generated in the customs clearance on the basis of the invoice and packing list. The container is stuffed and the required information is received from the port office, such as the container number, and the Vessel name and No. The details are entered in the Software (Visual Samudra) also each B/L is given a manual entry if not computerized. Than the details are entered in the software and the final print of the B/L is taken. In B/L there are two types.
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Receipt for shipment: If the shipper wants a receipt the shipper can get the receipt when the container is ready to load on a vessel.

HBL House Bill of Lading HBL House Bill of lading is made when the information is received for the port office. If the shipper wants a bill before the loading of vessel on board, than HBL is provided. HBL is also sent to shipper for approval. MBL Master Bill of Lading MBL- Master Bill of lading is the final copy of Bill. It is given to the shipper it contains all the details of everything. The Bill is used to charge the fees from the shipper. It is only given after the container is loaded on to the vessel for sail. Now if the freight charges are paid by the exporter then bill of lading is stamped as freight prepaid & if the freight charges are to be paid by importer then bill of lading is stamped as

fright to pay. 

Copy of Mate Receipt:

Issued by commanding officer of the ship that cargo has been loaded to the ship name of the vessel, date of shipment, condition of cargo at the time of receipt, berth, and description of packages. Mate receipt is handed over to the port authorities so that port dues are cleared by the exporter. Bill of lading is issued by the shipping company only after the mates receipt is submitted by the exporter  Self Declaration Form or G R Form:

Under customs act, every exporter is required to declare export value of shipment ad give an undertaking that export proceeds would be realized within a period of six months from the date of shipment or due date, whichever is earlier. If customs clearance for the shipment is
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made manually, declaration is made in GR form, in duplicate. If the clearance is computerized, SDF form, in duplicate, is used in place of GR form.

Copy of shipping bill (triplicate and quadruplicate):

Bill is generated in the customs clearance on the basis of the invoice is given to the company by the shipper. And a shipping the invoice and packing list. When cargo is stuffed, inside the container, in our port office or at factory. The details are given to the corporate office documentation department via fax. The details as such received are feed in to software called Visual Impex. Than, the details are sent via Ice gate link to the customs database. In return, the customs allocate a shipping bill number and print a shipping bill in the port office which is to be collected from the port office. Further, the procedure goes for carting and loading the cargo into the vessel.

Following three types of shipping bill with custom authorities Dutiable shipping bill: it is used in case of goods, which attract export duty may or may not be entitled to duty drawback. It is printed on yellow paper.

Free shipping bill: it is used in case of goods which neither attract any export duty nor entitled for duty drawback. It is printed on simple white paper. Drawback shipping bill: it is used in case when refund of duties is allowed on the goods exported generally it is printed on green paper, but when the drawback claim is paid to a bank, then it is printed on yellow paper.  Certificate of origin.

A document provided by the exporters chamber of commerce that attests that the goods originated from the country in which exporter is located

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Document submitted by CHA to the customs:

 Invoice  Packing list  Self Declaration Form or Gr form  Acceptance of contract  Letter of credit  Quality control certificate

Lists of documents required to be submitted by the exporter to various authorities, organizations, and agencies.

1) To the custom authority:-

 Commercial invoice  GR Form ( Original and Duplicate )  Shippers Declaration Form  Copy of the Export Contract /L/c/Export Order  Inspection certificate  AR-4 Form Export License  Export license  Weighment Certificate  Shipping bill

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1) To the port authority: Port trust copy of the shipping Bill  Wharf age application 2) To the bank

         

Letter of credit Commercial invoice Bill of lading Insurance Policy/Certificate Bill of exchange GR Form (duplicate copy) Bank certificate Export Inspection Certificate Certificate of Origin Shipment advice

3) To the RBI:   
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Copy of the invoice Sales Contract Bill of lading Inspection / Analysis Report
Export &Import Procedure and Documentation

4) To the EXIM Bank:      Export contract Letter of Contract Balance sheet of the exporter Statement of profit and loss in the transaction covered by the export contract Statement regarding the projections of the credit requirement.

Short shipment: In case of short shipment customs sends the short shipment notice Annexure C to the RBI (Reserve Bank of India) along with G R form. Short shipment notice is in five copies: Original customs  Second copy Agent  Third copy Exporter  One copy Wharf age refund  One copy if for CESS Treasure Challan:This is document is used at the time of payment of the duty to the customs. It shows the amount to be paid to the customs authority.

It is in four copies: Original  Duplicate  Triplicate  Quadruplicate Customs keeps the original and duplicate copies. Triplicate and Quadruplicate copies are sent to the CHA.
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3.2 IMPORT IMPORT PROCEDURE

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The import procedure is quite different the export procedure. It starts with:o The importer asks for the three original bills of lading from the bank. The Bank issues the bill of lading only when the importer cleared all the payments due to the bank. The importer then sends the following documents CHA :A) B) C) D) E) F) G) H) o NOC. BILL OF LADING INVOICE PACKING LIST CERTIFICATE OF ORIGIN PRE SHIPMENT INSPECTION CERTIFICTE INSURANCE CERTIFICATE SALES CONTRACT BOND COPY (IF H.S.S.) The CHA shows the bill of lading to the shipping agent in order to get the

No objection certificate has been issued by the shipping line to make sure that they have no objection to open the containers for the examination of goods.

CHA then presents the bill of entry to the customs for noting and then customs gives the import department the serial no. that comes on all copies of bill of entry.

CHA pays wharf age to the port authority and the original copy of wharf age goes to the treasury of port trust.

Customs give the examination order on the back of original bill of entry in case of first check procedure.

Cargo is inspected in front of the customs. Customs give the examination report at the back of the bill of entry.

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Customs assessed the duty to ensure that the duty evaluated by the CHA is correct.

Prior to this, the CHA on the basis of invoice, packing list prepares the bill of entry. The bill of entry is a proof that the goods have been imported.

For custom clearance purpose, the importer has to submit to the customs authority a form, which is known as bill of entry.

Bill of entry is in three copies:Original copy:This is called the customs copy. In first check procedure it contains the examination report on the back of it.

Duplicate copy:It is submitted in port either in container section or in break bulk section along with wharf age, NOC, Delivery order. It shows charges have been paid to customs and contain on the back, passed out of custom charges. Triplicate copy:This copy is for central excise for availing certain benefits. Quadruplicate copy:This copy is submitted to the bank. Port trust copies:Out of 5th, 6th, and 7th copies, one copy is given to the port authority. The other two Copies are kept by the CHA for his record.

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Calculation of duty in import

The duty has been calculated on the basis of assessable value.

Assessable value in rupees = CIF (Cost Insurance Freight) value + landing charges (1% of CIF value and H.S.S. (High Seas Sale) CIF+2%+1) If the case is of FOB (Free on Board) then freight and insurance is to be added. If insurance is not there than 1.125% of the C & F (Cost and Freight) value is taken as insurance charges. Duty calculation is done by CHA as per the given rate of duty for a particular product. There are six kinds of duties, which have to be paid at the time of custom clearance in case of imports those are:

i. Basic Custom Duty ii. CVD iii. Additional cess on CVD iv. Secondary and higher cess on CVD v. CESS vi. Custom sec & higher education cess vii. Additional Custom Duty

Let us consider that basic custom duty on the ALL ALUMINIUM SCARP is 0%, CVD 8%, and additional duty is 4%. Say basic custom duty in rupees be X, Additional custom duty be Y and CVD be Z (12.826688%) X = 0% of assessable value Z = Assessable value*8 %( CVD)

Y = Assessable value + 4% of ASS. VAL. +Z+ CESS on CVD 2%+ SEC. &HIGHER EDU.CESS ON CVD 1%+ CUS. EDU.CESS 2+1%

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CESS on CVD = 2% of Z SEC. & HIGHER EDU.CESS ON CVD = 1% OF Z Total duty amount (in rupees) = X+Y+Z CUS. EDU.CESS on Total duty = 2% of Z +EDU.CESS ON CVD+S&H EDU.CESS ON CVD 1% of Z +EDU.CESS ON CVD+S&H EDU.CESS ON CVD

Documents to be used in import:

a. Bill of lading b. Invoice c. Certificate of origin d. 59- Bond warehousing bond e. Wharf age f. Bill of entry g. Packing list h. NOC (No Objection Certificate) i. Deliver order j. Treasury challan k. Gate pass

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DOCUMENTS WHICH ARE TO BE USED IN IMPORT AND EXPORT CUSTOM CLEARANCE. o Letter of Credit

A Letter of credit is a document containing guarantee of a bank to honor drafts drawn on it by an exporter, under certain conditions and up to certain amounts, provided that the beneficiary fulfils the stipulated conditions. o Packing list

Its is a detailed document provided by the exporter that spells out how many containers there are in the shipment and which merchandise is contained in each container. o Invoice

It is a document which shows the total amount of the goods and the description of goods. o Bill of lading

A generic term used to describe a document issued by the carrier to the shipper. o Mate receipt

Mate receipt is issued by the mate (assistant to the captain of the ship) after the cargo is loaded into the ship. It is an acknowledgement that the goods have been received on board the ship o Shipping Bill

It is issued by the custom authority. Shipping is the main document of the basic of which the custom permission is given. After the shipping bill is stamped by custom, then only the goods are allowed to be enter to the deck. It is prepared by EDI system or manually system. o Certificate of Origin

A document provided by the exporters chamber of commerce that attests that the goods originated from the country in which exporter is located.

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Phyto-sanitary certificate

A document provided by an independent inspection company, or the Agriculture Department of the exporting countrys government, that attests that the goods confirm to the agriculture standard of the importing country. o Manifest

A document internal to the shipping company (the carrier) that lists all cargo onboard the transportation vehicle. o Forms AR-4/AR-4A

These forms are meant for applying for the removal of excisable goods for export by sea/post. Form AR-4 is used for applying for excise inspection at the factory and form AR-4A is used when goods are to be exported under a claim for rebate of excise duty or under bond. o Certificate of Measurement

Freight can be charged either on the basis of weight or measurement. When it is charged on weight basis, the weight declared by the overseas supplier is accepted. The certificate contains the name of the vessel, the port of destination description of goods, quantity, length, breadth, depth etc of the packages. o Shipping advice

A shipping advice is used to inform the overseas customer about the shipment of goods. There is no particular form of shipping advice. The exporter only advises his importer about the invoice number, Bill of lading / Airway bill number and date, name of the vessel with date of sailing of the vessel. o Bill of entry

The bill entry is a document, prepared by the importer or his clearing agent in the prescribed form under bill of entry regulation, 1971, on which clearance of imported goods can be mad

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4. SUGGESTIONS
The custom clearance for import and export cargo is such a long procedure so it takes time to clear, so the employee must be try to make their work on time and quick.

Some of the complicated procedure in custom clearance so if we get the support of all Employees it must be easy.

If custom clearance done through online then it should be more simple.

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5.CONCLUSION

The Indian business environment is changing with the rapid growth in infrastructure and technology. With the increasing inflows of multinationals, trade has been increased, which result in stiff competition between the organizations. Despite of the stiff competition SABLE FAREAST LIMITED known as the leading Export & Import Company, because of their effective implementation of quality management system and customer centric approach.

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BIBLIOGRAPHY

Export Import documentation Logistics in International Business

Prof. D. C. Pai Prof. Rajeev Aserkar

REFRENCE INTERNET
WWW.COMMITTLEGROUP.COM WWW.GOOGLE .COM WWW.ASK.COM WWW.EXIT.NET WWW.EXIM.IN.NET

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