aids to trade

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Aids to trade


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Definition Aids To

TradeThere are various obstacles that can hinder the smooth runningof trade. The activities that are involved in removing theseobstacles are known as aids to trade.

Aid for Trade is the new frontier of development assistance,

whether it means an increment in official developmentassistance (additionality) or a significant diversion. The newamounts cited at WTOs 2005 ministerial meeting in HongKong up to $10 billion per year from Japan, USA and Europe would represent a tripling of trade-related aid and be close to10% of total ODA.

Aid for trade used to be a very straightforward concept. Most of

the rich countries provided a significant portion of their ODA astrade credits, enabling developing countries to purchase goodsfrom the donor on the never-never. It was classic tied aid, fromwhich some unpaid debts are only now being forgiven.Today, aid for trade has a broader definition, although it is notquite clear how broad. Aid has helped to increase domesticexport supply capacity and enhance enterprise competitivity.That is clearly aid for trade. But supporting facilitation andinfrastructure is arguably part of more general developmentassistance.

In any case, aid for trade now has the characteristics of otherkinds of aid, and we should apply the familiar criteria of aideffectiveness. In a recent report on trade-related assistance(What do recent evaluations tell us? ), the DevelopmentAssistance Committee of the Organisation for Economic Co-

Bba Fy-c2010-20013


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operation and Development (OECD/DAC) finds many familiarproblems of aid as it is frequently administered.

Importance : Aids toTrade

The hindrance of place:Goods are produced at few places, but consumed atdifferent places. This geographical distance betweena manufacturer and a consumer can be eliminated bytransport.

The hindrance of persons:There are limited numbers of producers as compared

to consumers. These producers and consumers arelinked to each other through various intermediariessuch as wholesalers, retailers, etc

The hindrance of time:There are some products that are produced during aparticular season, but are in demand throughout the

year. These products are needed to be stored andreleased at the time of requirement. This obstacle iseliminated by warehousing.

The hindrance of finance:There is a time gap between the production and salesof goods. If there is a need for finance to conducttrade activities during this period, it is met by banks.Banks and financial institutions help a businessmanby providing overdrafts, loans, etc.


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The hindrance of risk:Risk can be in the form of fire, theft, accidental loss,human error, etc. This risk can be eliminated byinsurance companies.

The hindrance of knowledge:When a new product is produced, it should come intothe knowledge of consumers. This can be eliminatedby advertisements and salesmanship.

Definition of Transportation

Transport or transportation is the movement of peopleand goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline,and space. The part of transportation which proves to beas aids to trade for business organization is freighttransport.

Freight transport, or shipping, is a key in the valuechain in manufacturing. With increased specializationand globalization, production is being located furtheraway from consumption, rapidly increasing the demand

for transport. While all modes of transport are usedfor cargo transport, there is high differentiation betweenthe nature of the cargo transport, in which mode ischosen.

Logistics refers to the entire process of transferringproducts from producer to consumer, including storage,transport, transshipment, warehousing, material-

handling and packaging, with associated exchange of information.


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This mode of freight transportation or movement of goodcan be done with the help of these fields of transportation-: Air cargo Sea Port Roadway Railway goods train

Introduction to AirCargo


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In our project we have basically focused on thispart of transportation system and we haveexplained the working and its functioning in a verybrief manner. Our field work was related to thistopic and we have gone through the completeworking of KINGFISHER AIRLINES which is a verypremier company of the country in terms of aircargo and passenger service


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Why We Use Air Cargo

?

Air freight has become more common for productsof high value; while less than one percent of worldtransport by volume is by airline, it amounts toforty percent of the value. Time has becomeespecially important in regards to principles suchas postponement and just-in-time within the valuechain, resulting in a high willingness to pay forquick delivery of key components or items of highvalue-to-weight ratio. In addition to mail, commonitems send by airinclude electronics and fashion clothing. Thebeginning of air cargo system has made possiblethe delivery of any goods in any part of the world


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within a short period of 4-6 days. You can ship justabout anything by air. Letters, packages, cars,horses, construction equipment and even otherairplanes can be shipped air freight

Types of Goods


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Automobiles and Spare PartsPerishable GoodsVaccinePrototypes of ProductsDocumentsClothsSmall machinery

Procedure


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Types of Customers

There are basically two type of customer ;Walk in customerPermanent customer

Walk in customer;

They are the customer which directly visit to thecounter. They have a direct talk with the manager.From there they get the form in which they need tofeel all the detail regarding the product they aresending through air cargo. But they dont receiveany benefit which are basically received bypermanent customer like discounts, special offers,low carriage price etc

Permanent customer They are basically the registered agency. To theseagency consumer contact to send his goods toparticular place. They collect the goods fromconsumers place and they have a direct contactwith air cargo. As these agency deliver lot of goodsthrough air cargo they get huge corporate

discount. These agency charges a little bit of feefor there services. And even they give discounts,less price , special offers to their consumer


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Airway Bill

(AWB)


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Airway Bill (AWB)

Airway Bill is the most important bill in carrying outthis entire procedure

It Consists of :-

Shippers Name and Address

Consignees Name and Address

Issuing Carrier Agent Name and City

Walk-in Customer / Permanent Customer

Description about the Product

Signature of Issuing Carriers or its Agent


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Types of Rates

Different carriers charge different freightcharges for transporting goods. Thefollowing are the freight rates charged byKingfisher Airlines.

Minimum rate Rs.300 Normal Rate(0 to 45kg)


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If weight is between 45 to 100 kg Per kgrate reduces If weight exceeds 100 kg The rate furtherreduces

RateList


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X-Ray/Security

Check


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After all the necessary formalities have beenfulfilled and the airway bill has been passed,the goods are passed through the X-Ray

machine. There are minimum two expertssupervising the goods when they passthrough the machine. This is done in order todetect whether any objectionable goods arebeing transported.

Disadvantages


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High Cost of Air Freight

Dependency on Weather Conditions

Time Consuming Security Procedures

Prices Increase Drastically with Gradual Increasein Sizes

Some carriers do not allow delivery of animals,currency &Valuable items like jewellery, precious stones

Risk of goods getting damaged at the timeloading and unloading of goods.


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Project by:Aditya JainAnuj BairoliyaArijeetGautamKrunalPiyush JainQ LeeRannungUday

Vinambra Gupta


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