Download - Global vs Raka
-
8/19/2019 Global vs Raka
1/53
EXECUTIVE SUMMERY
The main objective of the summer internship is to interlink the theoretical knowledge gained in
the 1
st
year with the practical aspect of the industry. I was fortunate enough to be chosen to workwith RAKA !"#RT$ e%port house and hence privy to contact with almost all the players in an
e%port transaction.
&y stint in RAKA !"#RT during my 'ummer Internship e%posed me to the ground realities of
%port "rocedures . All the theory that had been taught my first year came into working
application and I learnt that theory$ thought very important $was just a base to the real thing was.
I was also given an opportunity to visit the (A'A()A#* &ARKT +AR, which is biggest
onion market in the Asia continent .-or one week working of operation under the guidance on
&r. 'unil )avli $where I came to know the different types onion which are grown in different
seasons like Kharip$ late kharip$ Rabi .
I was offered to work with the company as %port import coordinator and this was pleasant
moment for me to work very closely with the e%port procedure / ,ocumentation of the firm. As
well as shouldered with a great responsibility of the firm to co ordinate with the other department
of the firm 0I $Accounts &arketing and #peration as well as with the clients and other
forwarder / shipping companies.
It was a great moment to learnt the preparation of e%port document such as certificate of origin$
preparing job order $ dispatch mails and maintaining inward as well as outward registers. The
company helped me a lot to perform well and up to the mark always and I was praised for my upto date work regularly in the office.
-
8/19/2019 Global vs Raka
2/53
INTRODUCTION OF THE PROJECT
In today2s world of the International 3usiness %port and import plays vital role . in developing
countries like I*,IA $this %port and Import plays a very important role in determining balanceof payment of the country .If the e%port is greater than the import $the balance of payment is said
to be in surplus .similarly if the e%port of a country is very is very much lower than irs import
then country2s balance of payment is in deficit.
International trade is an e%change of capital $goods and services across international border or
territories . in most countries$ it represents significant share of gross domestic product 4),"5.
6hile international trade has been present throughout much of history $it2s economic social and
political importance has been on the rise in the recent countries Industriali7ation $advanced
transporting $globali7ation $multinational corporation and outsourcing are all having a major
impact on the international trade system . increasing international trade is a major source ofeconomics revenue for any nation that is considered a world power. 6ithout be limited to the
goods and services produced within their own borders. International trade is in principal not
different form domestic trade as the motivational and the behavior of parties involved in a
trade in a trade does not charge fundamentally depending on whether trade is across a border or
not. The main difference is that international trade is typically more costly than domestic trade.
The reason is the a border typically imposes additional costs such as tariff$ time . Times costs due
to border delays and costs associated with country differences such as languages$ the legal
system or a different culture.
-
8/19/2019 Global vs Raka
3/53
DOMESTIC vs. INTERNATIONAL BUSINESS
,omestic and international enterprise $ in both the public and private sector$ share the business
objectives of functioning successful to continue operation ."rivate enterprise seek to function
profitable as well . why $ then is international business different from domestic The answer liesin the different across border. *ation states generally have uni8ue government system $laws and
regulation$ currencies $ta%es and duties $ so on$ as well as different cultures and practice . An
individual travelling from his home country $ to be able communicate in the country $ to be
dressed appropriately$ and so on . ,oing business in a foreign country involves similar issue and
is this more comple% than doing business at home .the following section will e%plore some of
these issues. 'pecially comparative advantages is introduced$ the international business
environment is e%plored and for of international sent
-
8/19/2019 Global vs Raka
4/53
#R)A*IATI#* "R#-I(
• India is biggest agriculture industry And having the contribution in e%port as well as
providing the agriculture product to the world on the large scale. from India there are
many products available which are mainly e%port and through this economy became
'trong. India9s richest state$ &aharashtra contributed :; per cent of the country9sindustrial output and :&ar5 and Rabi 4#ct>*ov. to April>Bune5. Though
onion is produced in three seasons$ the onions produced in rabi season are only suitable
for storage as the variety grown in this season has higher T''$ dry matter and more
number of outer dried intact scales.
• #nion output is estimated to be a record C; lakh tonne in :==C>1=$ compared to around
@; lakh tonne last year$D *asik>based *ational Eorticulture Research and ,evelopment
-oundation 4*ER,-5 Additional ,irector said.
• #nion output is estimated to be a record C; lakh tonne in :==C>1=$ compared to around
@; lakh tonne last year$D *asik>based *ational Eorticulture Research and ,evelopment
-oundation 4*ER,-5 Additional ,irector said.
•
Ee said onion produce per hectare is e%pected to rise by 1< per cent to 1>1F tonne in top producing states of &aharashtra$ )ujarat and &adhya "radesh from 1; tonnes per hectare
in :==@.
• DGse of crop technology and irrigation has improved onion yields$ though acreage
remained at last year9s level of ;.; lakh hectare$D Eowever$ the rich yield is unlikely to
DThe wholesale prices of onions are unlikely to fall significantly because farmers are
-
8/19/2019 Global vs Raka
5/53
storing the crop in a bigway. Also$ higher production cost may not allow them to sell at
lower rates$D he said. According to *ER,- data$ the wholesale prices were ruling at Rs
>F per kg today at (asalgaon in &aharashtra$ Asia9s biggest onion market
•
India’s onion !"o#$
• India is the second largest onion growing country in the world. Indian onions are famous
for their pungency and are available round the year. Indian onions has two crop cycles$
first harvesting starts in *ovember to Banuary and the second harvesting from Banuary to
&ay.
• 0arietiesH The major varieties found in India are Agrifound ,ark Red$ Agrifound (ight
Red$ *ER,- Red$ Agrifound 6hite$ Agrifound Rose and Agrifound Red $ "usa Ratnar$
"usa Red$ "usa 6hite Round. There are certain varieties in yellow onion which are
suitable for e%port in uropean countries Tana -1$ Arad>E$ 'upre%$ )rane% ;;$ EA =
and )rane% ?:C.• Areas of ultivation H The &ajor #nion producing states area &aharashtra$ Karnataka$
&adhya "radesh$ )ujarat$ 3ihar$ Andhra "radesh$ Rajasthan$ Earyana and Tamil *adu.
&aharashtra ranks first in #nion production with a share of :F.F:J.
• India -acts and -igures H
• There is a lot of demand of Indian #nion in the world$ the country has e%ported
1:$1;5 H3angladesh$ &alaysia$ 'ri (anka$ Gnited Arab
mirates and *epal. The major varieties found in India are Agrifound ,ark Red$
Agrifound (ight Red$ *ER,- Red$ Agrifound 6hite$ Agrifound Rose and Agrifound
Red $ "usa Ratnar$ "usa Red$ "usa 6hite Round. There are certain varieties in yellow
onion which are suitable for e%port in uropean countries Tana -1$ Arad>E$ 'upre%$
)rane% ;;$ EA = and )rane% ?:C.
• #nion e%port was canalised in 1CF?. *ational Agricultural ooperative &arketing
-ederation 4*afed5 was the only canalising agency till 1CCC. 'ubse8uently$ 1: 'tate
Trading nterprises 4'Ts5 along with *afed were designated as the canalising agencies
for e%port of onion. The e%porter had to pay 1J commission to these agencies in order to
get the no>objection certificate for e%ports.
-
8/19/2019 Global vs Raka
6/53
50
8.7
5.67
1.71
4.28
4.113.41
As the country is e%pecting an all>time>high onion crop in :=1?>1;$ the government about
to face the electorate$ removed the minimum e%port price 4&"5 restrictions$ which were
imposed during winter season as retail prices touched Rs 1==kg.
(ast week$ the director general of foreign trade 4,)-T5 issued a notification to free
onion e%ports. There was a strong demand from growers and e%porter to remove
canalisation as it did not serve any purpose.
DThe canalising agencies did not use the money collected from the e%porters to better the
condition of farmers$D claimed Ajit 'hah$ president$ #nion %porters Association.
The 1< canalising agencies include *A-,$ &aharashtra 'tate Agricultural &arketing
3oard 4&'A&35$ 'pices Trading orporation$ A" 'tate Trading orporation. D#nly five
to si% of the 'Ts were actually functioning$D said *afed ,irector E3 Eolkar.
&'A&3$ which was a leading agency issuing no objection certificates to onion e%porters
has welcomed the decision. D-reeing up of onion e%ports will help boost onion e%ports.
6e never looked at the commission charged for the certificates as a source of revenue forus$D said &'A&3 &anaging ,irector &ilind Akre.
%ports would be crucial to avoid a crash in onion prices as the rabi harvest gathers pace
from April. The current unseasonal rainfall$ though has damaged the standing onion crop$
will not affect the overall onion availability due to record area under the rabi crop.
,espite the arrival of rain>damaged crop in the market$ domestic prices have remained
-
8/19/2019 Global vs Raka
7/53
firm at Rs kg to Rs @kg as the good 8uality bulb is getting a good price.
SR.NO STATE DISTRICT
1 Maharashtra Nashik, Ahee!"a#ar, $%"e, S&'a(%r
2 )ar"ataka Dhar*a!, Chitra!%r#, +a!a#, a-eri , a#'k&t
3 A"!hra
$ra!esh
)%r"&&'. Me!ak, Ra"#are!!/, C%!!a(ah, Meh&&"a#ar
4 ttar $ra!esh ara"asi, $ata", )a"(%r, %k"&*, A''aha!, aiaa!
5 Tai' Na!% C&iat&re,$eraa!%e,Naakka',Di"!i#%',A""a,Thirihira
(a''i,$eri/ar
6 +%rat ha-"a#ar, S%re"!ra"ar
7 $%"a R&(%r a"! %!hia"a
-ollowing graphical design shows the state wise contribution in onion e%port
5036
2721.
824.8
383.5338.
1535.5 182.4
Maharashtra )ar"ataka +%rat A"!ra $ra!esh
ttar(ra!esh Tai' "a!% $%"a
-
8/19/2019 Global vs Raka
8/53
Indian e%port for the product fresh onion H India is biggest agriculture industry. This contribution
and share in percentage are shown in following table India2s rank in onion e%port is 1?; with
value around >:1@@@C 4===G',5and percentage with ?.1
%&'(
Ran)
E!"o#$in*
Co+n$#, -$, Va+
' 6orld ;$@@$:CF.== :$
-
8/19/2019 Global vs Raka
9/53
T6is is $a7 86i96 s6o8s $6 di::#n$ 9o+n$#is in 86i96 India !"o#$s $6 onion
%&'0;'(
S# No. Co+n$#, -$, Va+
' 3angladesh "r ?$;$F
-
8/19/2019 Global vs Raka
10/53
'( &aldives F$FCC.C :$=?=.@=
'1 G K $@;:.C 1$?;:.@F
'2 Reunion ;$=F1.== 1$:?;.;?
'3 Thailand $C=
-
8/19/2019 Global vs Raka
11/53
(& &ali =.1; =.=@
(' +emen Republc =.= =.=?
(% Austria =.=C =.=<
Pa* To$a '%5/35'&%.1& %5/&5&(0.'0
COMPANY PROFILE
'hri Ratanlalji 3ansilalji Raka founded the RAKA )R#G" in 1C1. Ee also started the firm #R
4&s #mprakash Ratanlal Raka5 with the head office in *ashik$ &aharashtra. The principles and
values that were observed back then are valued and practised even now. It was in the best
benefits of the business and the customers. ven though he faced many hardships and obstacles
in the initial years of the business$his hardwork and dedication towards his work converted every
obstacle into success.
&r #mprakash Ratanlal Raka$ &r Eemant Ratanlal Raka and &r. "rashant 'ubhash Raka joined
the family business and contributed together to the e%pansion of the business all over the India
and overseas too. Raka group delivers #nions abroad under the firm RAKA !"#RT'. 6e also
-
8/19/2019 Global vs Raka
12/53
deliver various other products like &ai7e$ "otatoes$ Tomatoes$ "" 3ags and Bute 3ags. 6e also
plan to introduce many fruits and vegetables in the future.
)ut *o. :@$ 'hiv Road$ #pp. 3ank #f 3aroda$ (asalgaon$ (asalgaon ?::
-
8/19/2019 Global vs Raka
13/53
India produced 1< lack metric tones of onion in :=1:>:=1
-
8/19/2019 Global vs Raka
14/53
QI have been saying since Buly that there is no shortage of onion
in the country$ says R.". )upta$ director of *ational Eorticulture Research / ,evelopment
-oundation. Q#fficial figures show that :F.; lakh metric tonnes of onion were stored during
-ebruary and &ay. &onthly consumption of the country is only F>@ lakh tonnes per month.... 'o$
where was the problem of shortageS
This table shows the seasons in which onion grows
The below graph shows harvest pattern in leading #nions growing states 4'ourceH *A-,
Report5
S$a$ Jan F7 Ma# A"# Ma, J+n J+, A+* S" O9$ Nov D9
&aharashtr
a
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
"eak
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
)ujarat
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
3ihar
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
-
8/19/2019 Global vs Raka
15/53
Karnataka
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
"eak
seaso
n
"eak
seaso
n
"eak
seaso
n
andhra"radesh
(ean
seaso
n
"eak
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
"eak
seaso
n
"eak
seaso
n
"eak
seaso
n
(ean
seaso
n
&adhya
"radesh
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
Rajasthan
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
Earyana
(ean
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
Gttar
"radesh
(ean
seaso
n
"eak
seaso
n
"eak
seaso
n
"eak
seaso
n
(ean
seaso
n
(ean
seaso
n
(ean
seaso
n
RAKA2' #*I#* !"#RTH
Raka is the biggest name$ almost a legend$ in onion trade in *ashik and (asalgaon. The market
abounds with tales of his bumper transactions that made his Raka Traders such a big name in the
business. D'ometimes in a single week9s business traders make as much they might ordinarily
make in a year$D says an official which knowledge of the market. 6hen Raka arrives$ the market
is energi7ed and crowds follow him. (ike all the other large traders$ he is fast$ flies from onion>
truck to onion>truck in the mandi$ 8uickly buying or rejecting. A layperson can make no sense of
the speed>auction that happens in the market. ,amaged crops$ stock At (asalgaon$ the largest
onion market in India$ its traders of fabled wealth have become a bristling and defensive lot as
consumer prices for the vegetable in various parts of the country push towards the Rs 1== mark.
It did not help them that as this psychological Rs 1== mark was nearing$ onion sold at a modal
rate 4price at which bulk of produce is traded5 of Rs
-
8/19/2019 Global vs Raka
16/53
benchmark by the rest of the country. 6e are a 1@ year old market leader in providing
ompetitive 3usiness Intelligence on %ports and Imports.
6e started in 1CC$ with over 1;== clients in almost in @ ountry wise Associates$ 6e have
evolved as a company with a uni8ue blend of intricate knowledge of needs of %port Import
ommunity and superior information technologies and tools to deliver )lobal %port ImportTrade Intelligence Information. Eelpful information about %port
FAMILY NEXUS ?
A :=1? report on onion markets by the *ational ouncil of Applied conomic Research$ which$
like the I' report$ identified collusion as a key limitation of wholesale markets$ pointed out
that @>1= traders dominate trade in almost all mandis.
Today$ 'urana is no longer (asalgaon2s top onion trader. +et$ he continues to be among the big
five$ led by Raka Traders$ which accounts for most of the onion traded at (asalgaon. 'urana2s
name does not figure among the list of purchasers in the official records of (asalgaon mandi$
though. Eis son$ "rashant$ who lives in "une$ about 1F=km away from *ashik$ figures on that
list as a top commission agent. A commission agent is a broker who charges a commission of ?>
J from the farmer for arranging the sale of his produce.
*ot faraway$ #mprakash Raka basked in glory. The onion trader was in the middle of
overflowing sweetened milk and mithai. Ee had made a huge profit$ and was celebrating his
election as chairman of (asalgaon &erchants9 ooperative 3ank. The (asalgaon market is
India9s largest onion market.
QEad I had the capacity to hold my stock for a month$ I would have been able to sell my produce
for at least Rs.
-
8/19/2019 Global vs Raka
17/53
importing onion from gypt$ hina and Afghanistan. The business was booming$ even as
farmers like *yaharkar were back on their fields$ toiling for the ne%t crop.
Though their fates are interlinked and dependent on onions$ Raka9s pleasures and *yaharakar9s
pains are separated by a tricky termPbusiness acumen. The Rakas have it in abundance. And
they are aided by their networks across market committees of *ashik and 9inside9 information.-R'E #*I#*'
MAJOR PLAYER’S
"owerful traders like the Raka manipulate the market. They book stocks from farmers at low
prices$ much in advance. Thousands of tones of onions are hoarded to create a short>supply. And
as the prices spiral up$ the hoarded stocks are released. It was such an artificial scarcity thatallegedly spiked onion prices to record highs.QTraders in (asalgaon and pimpalgaon 4b5
Agricultural "roduce &arket ommittee alone earned more than Rs.1;= crore in just four days
4August 1:>1;5 this year$ says ,r )iridhar "atil$ a farmer>activist . At least .; lack 8uintals of
onion was auctioned at (asalgaon in the past three months. ,ocuments accessed by TE 6K
show that almost all of it went to 1: tradersgroups$ who clearly enjoy monopoly over the
(asalgaon market.
They are 'aibaba Traders$ Eemant Raka$ "uja Investments$ Anand Trading$ 'uresh chandra Bain$
Kisan ,arade$ 'udarshan Traders$ Eiralal Kaluram$ Kesarchand Runwal$ "ushkar Runwal$
'ubhash (unawat and Abhay 'urana .3esides the monopolist 1:$ another big name is the3ramhechha family. It apparently has eight licences through various firms in other A"&s in
*ashik.
Ajay and Akshay 3ramhecha run the business of trading in agriculture produce. They also have a
wholesale shop of food grain and coarse cereals$ and deal in types for four>wheelers$ trucks and
tractors. They have a huge storage facility of onion close to the (asalgaon A"&. The
3ramhechas e%ported over ?; 8uintals of onion to 3angladesh in the first half of 'eptember$
when onion prices were peaking. 'ureshchandra Bain is another major player in the (asalgaon
A"&. Eis nephew *itin Bain also holds a license under his firm "uja Investments. *itin$ a
member of the (asalgaon A"& board of directors$ e%ported F:= 8uintals of onion to *epal and,ubai$ again in the first half of 'eptember.
&ost of these traders finance political leaders during elections. It is also these traders who elect
local politicians to the A"&s$ which are supposed to oversee trade. The cru% of the issue seems
to be here. Though the Gnion government circulated the &odel A"& Act to all states$ its
implementation has been shoddyPespecially in &aharashtra$ home state of Gnion Agriculture
-
8/19/2019 Global vs Raka
18/53
&inister 'harad "awar.QThe &odel A"& Act allows anyone to participate in the auction and
no license is needed$ but the A"&s do not allow this$ alleges Ravi ,evang$ president of
'hetkari sanghatana$ a farmers9 organi7ation. Q&any big traders have multiple licenses within
their families and they just do not let anyone from outside participate in the business. The
A"&s have become places of robbery.-urthermore$ since only select traders bid in the
auctions$ they form a ring and decide prices$ ahead of the bidding.
QThe auctions are a farce$ says ,ivan. QTraders bid by pulling fingers of each other under a
clothO each finger denotes a value. #nce the bidding is over$ the winner announces the price. The
farmers have to sell their crop to him even if the price does not meet their production cost. They
get beaten up if they refuse. ven traders who tried to participate without licenses have got
beaten up.T6 7o8 *#a"6 s6o8s 6a#vs$ "a$$#n in adin* Onions *#o8in*
s$a$s 4'ourceH *A-, Report
'r.
no
E'
%port
er
"roduct
description
-oreign
country
/ port
Indian
port
0alue
I*R
0alue
G',
Lty /
unit
&od
e
ompan
y
1 1==;C=
=
#*I#*
"K, I*
R,
&'E
3A)'
Gnited
Arab
mirates
,ubai
Bnpt ?1??
-
8/19/2019 Global vs Raka
19/53
/ )R.6T.
?.;:K)'5
; 1==;C=
=
#*I#*
"AK,
I* &'E
3A)'
4AE
3A) *T
6T.?.;=
K)'./
)R.6T.?.
;: K)'5
&alaysi
a port
Kelang
&undr
a
1:?F?= 1C1.1< 1=;t
n
'ea 0ishal
1==;C=
=
I*,IA*
#*I#*
3A)'
"AK,
I* :@ K)'
*T
Gnited
Arab
mirates
Bebel Ali
Bnpt C:F1= 1?:
-
8/19/2019 Global vs Raka
20/53
1
1 1==;C=
=
-R'E
I*,IA*
#*I#*
4"AK,
I* &'E
3A)'5
Gnited
Arab
mirates
,ubai
&undr
a :;1?.
@
-
8/19/2019 Global vs Raka
21/53
-ollowing graphical design shows the Raka2s regional level share in onion e%port
479
269
09
269
Raka
isha'
Tk-Ch&th"i
hain up events which happen onion when e%port
S#. No. +idins
1 Transported to "ackhouse
: Gnloading
< 'orting / )rading
? "acked in netted poly bag si7es
; "recooling
old storageF "alleti7ing
@ Refrigerated trucks
C 'hipment
'torage Re8uirement of fresh onion
-
8/19/2019 Global vs Raka
22/53
Sr. "& Te(erat%re Re'ati-e %i!it/
st&ra#e
(eri&!
reei"# (&i"t Desri(ti
1 0& 65:709 3:5 &"ths &*
te(erat%re
::
. $aka#i"# a"! its !etai's
a; &r e the
Nette! $&'/ a# sie ha-e ee" #i-e" e'&* >&r !i?ere"t &%"tries. +e"era''/ there
are 60 @''s (er 10 k# a# &> &"i&"
Ta'e .10 Sh&*i"# the (aki"# s(ei@ati&" &> s&e &%"tries
Sr."& I(&rti"# "ati&" $ak sie
1 Ma'a/sia a"! I"!&"esia 10 k#
2 Sri'a"ka 25 k#
3 Si"#a(&re 8 k#
4 $hi''i((i"es 20 k#
5 +%'> &%"tries 5k#,10k#,15k#,a"! 20k#
Ta'e .11 sie &> &"i&" re=%ire! !i?ere"t &%"tries
S. N& C&%"tr/ Sie B;
1 Mi!!'e East a"! +%'>
BD%ai,Shaah,D&ha,M%sat,ahrai",Da
a,)%*ait;
40:60
2 Ma'a/sia,Si"#a(&re,$&rt )e'a"# A>ria"
(&rts
25:30
-
8/19/2019 Global vs Raka
23/53
3 Sri a"ka 25:30
4 a"#'a!esh,$akista" Ne(a'0 25:30
5 E%r&(e 60:70
6 a(a" 60:70
Do9+
-
8/19/2019 Global vs Raka
24/53
3ill
In India5 ships transport more than C= per cent of the cargo. It therefore interesting to study the
e%port processed by ship documentation related to it.
"rocessing of an e%port order>>>>>
•%porter operation starts with the receipt of en8uiry by the e%porter from importer. 3ar on
the en8uiry e%porter submits his offer giving complete details of products technical
specific price delivery payment terms etc.
•After the process negotiations importer sends a purchase order follow by letter of credit 4if
applicable5.
•The e%porter manufactures the goods according to the specification given in purchase order.
•As soon as the goods are ready the e%porters invites the representative of %port
inspections agency 4IA5 for pre shipment inspection and obtain the certificate of
inspection.
•After that$ the e%porter prepared following documentsH>>>>
oI*0#I
o"AKI*) (I'T
oAR1 -R#& !'I ,"ART&*T
o&ARI* I*'GRA* "#(I+
o#"+ #- "GREA' #R,R (
•Above those documentation sends to EA by e%porter.
•3ased on these documents EA agent completes the octroi formalities$ obtain port permit
and prepare shipping bill which is a customs documents.
•ustom department check the e%port cargo on the basis of information provided on the
shipping bill. If satisfy then cargo allow to loaded on the board of ship.
•The shipping line gives mate receipts to EA agents after the payment of ocean freights and
port due obtains the bill of lading 43(5 from shipping line .3( is a proof of dispatch of
cargo and also a negotiable document.
•After that$ EA agent send various documents back to e%porter which isP
oustoms attested invoice
-
8/19/2019 Global vs Raka
25/53
oopy of shipping bill
o-ull set of non board bill of lading.
oopy of purchase order or (
oopies of AR1 -orm
o',- form
•After that the e%porter submitted above these documents for negotiation to the bank which
include H>>>>
oommercial invoice
o"acking list
o',- form
o#riginal copy of purchases order
o ertificate of origin
o3ill of e%change
o'hipment advice
After that$ bank scrutini7es these documents and if found correct make payment to e%porter
against documentations.
EXPORT INVOICE
ELEMENT OF EXPORT INVOICE?;
• %porter
• onsignee
• Invoice *o. and ,ate
• %porter Ref.
• 3uyer order no and date
• #ther reference
• 3uyer 4other than consignee5
•
ountry of origin of goods• ountry of final destination
• Terms of delivery and "ayment
• "re>carriage by
• "lace of receipt by pre>carrier
• 0essel -light no.
• "ort of loading
-
8/19/2019 Global vs Raka
26/53
• "ort of discharge
• -inal ,estination
• &arks and *os. *o / Kind of pkgs.
• Item code
• ,escription of good
• *et weight
• )ross weight
• Luantity
• Rate I- GR#
• Amount I- GR#
• Amount in words
• ,eclarationH
• Authorised signature
'T"' I*0#(0, I* !"#RT TRA*'ATI#*H
'tep 1
In the case of first time e%porter importer$ they need to apply to ,irector general of foreign
trade 4,)-T5 regional office Importer>%porter code 4I5 number.
'tep :
The e%porter has to register with the concerned e%port promotional council in order to obtain
various permissible given by the government . they need to get registered with sales ta% office$
and even e%porter credit guarantee corporation.
'tep <
The e%porter can now go in for procuring orders$ by first sending a sample $if re8uired. The
importer sends a purchase order once both e%porter and importer have agreed upon the terms and
condition of the contract like pricing$ document$ freight charge$ currency etc.
'tep ?
6ith e%port order in hand $the e%porter starts manufacturing goods or buying them from other
manufacturers.
'tep ;
The e%porter make arrangements for 8uality and obtain a certificate confirming the 8uality of the
goods from inspector of 8uality control.
-
8/19/2019 Global vs Raka
27/53
'tep
%portable are then dispatched to portsairport for transit.
'tep F
The e%port firm has to apply to an insurance company for marine air insurance cover .4the
e%porter asks the importer to take marine air insurance under cost and freight $free on board etc.
terms of contract5
'tep @
The e%porter contract the clearing and forwarding agent 4c /f5for storing the goods in
warehouse$ A document called shipping bill $re8uired for allowing shipment by customs
authority is presented by the forwarding agent.
'tep C once the goods load end into the ship $a receipt called mate2s receipt is issued by the
captain to the ship superintendent of the port.
'tep 1=
The superintendent calculate port charges and handover to the e%porterc /f agent .
'tep 11
After making the port payment$ the c /f agent or e%porter gets the bill of landing or airway bill
from the official agent if the shipping company or the airline.
'tep 1:
The e%porter applies to the relevant chamber of commerce for obtaining certificate of origin$
starting that the goods originated from India
'tep 1<
The e%porter sends a set of document to the importer$ starting the date of shipment $name of
vessel$ etc.
'tep 1?
6ithin :1 days after shipment the e%porter must present all the document at his bank which
scrutini7es these document against the original letter of credit purchase order.
'tep 1;
-
8/19/2019 Global vs Raka
28/53
The e%porters bank sends documents to the importers bank which should make the payment on
of before the due date.
!"#RT A*, > ,#G&*TATI#*
"R#-#R&A I*0#I
"erforma invoice$ as the name suggest $is a "erforma of the invoice. it is prepared by an e%porter
and send to the importer for necessary acceptance. it suggest to a buyer the actual invoice would
like and send him when he is ready to purchased the goods.
"AKI*) (I'T
This statement gives the packing details of goods in a prescribed format. it is a very useful
document for custom at the time of e%amination and for warehouse keeper of the buyer to
maintain a record of inventory and to effect delivery.
#&&RIA( I*0#I
An invoice is very important as it contains the names of the e%porter$ importer$ and the
consignee$ and the description of goods. It has to be signed by the e%porter $other document are
prepared by deriving information from the invoice .it is re8uired to be presented before different
authorities for the invoice .it is re8uired to be presented before different authorities for different
purposes.
RTI-IAT #- #RI)I*
This certificate issued by the local chamber of commerce indicates that the goods $which are being e%porter $ are actually manufactured in a specific country mentioned therein. It is sent by
the e%porter to the importer and is useful for the clearance of the goods from the custom
authority of the importing country.
'EI""I*) 3I(( 3I(( #- *TR+
It is a re8uisite for seeking the permission of custom to e%port goods. It contains a description of
e%port goods by seaair .it contain a description of e%port goods $number and kind of packages
$shipping marks $and numbers value of goods $the name of the vessel$ the country of
destination $etc. on the other hand $importers have to submit copies document called bill of entry
for custom clearance .later $a copy has to be given to the bank to the bank for verification.
AR>1 -#R&
This form is an application for the removal of e%cisable goods from the factory premises for
e%port purpose . the AR>1 form has multiple copies which are distributed to different
authorities$ including customers $range office of e%cise$ refund office of e%cise$ etc.
-
8/19/2019 Global vs Raka
29/53
!EA*) ,(ARATI#* -#R& 4)R ',- -#R&5
The R3I has prescribed has prescribed a )R form 4',-5$a "" form $and '#-T! forms to
declare the e%port transaction .the )R form containsH
a5 name and address of the e%porter and description of goods.
b5 name and address of authori7ed dealer through whom proceeds of e%ports have been or will be
reali7ed.
c5 details of commission and discount due to foreign agent or buyer.
d5 the fill e%port value $giving break up of -#3$ freight$ insurance$ discount$ and commission$
etc.
3I(( #- !EA*)
it is an instrument in writing $containing an order$ signed by the maker $directing a certain personto pay ascertain sum of money only to the order of a person to the bearer of the instrument. it is
commonly known as a draft.
I*'"TI#* RTI-IAT
It is re8uired by some importer and countries in order to get the specification of the goods
shipped attested. The attesting is usually performed by a government agency or by independent
testing organi7ation.
3I(( #- (A,I*)
This document is issued by the shipping company acknowledging of the good mentioned in the
bill$ for shipment on board of the vessel. the 3( is the legal document to be referred in case of
any dispute over the shipment it containH
• The shipping company2s name and address
• The consignee2s name and address
• The port of landing and port of discharge
• 'hipping marks and particulars
• *umber of packages and the goods
• )ross weight and net weight• -reight details and name of the vessel
• 'ignature of the shipping company2s agent.
AIR6A+ 3I((
-
8/19/2019 Global vs Raka
30/53
This receipt issued by an airline company or its agent for carriage of goods is a contract between
the owner of the goods and the carrier . it should indicate freight pre>paid or freight to collect .the
first three digit of the Airway 3ill *umber represents the code which identifies the carrier.I*'GRA* RTI-IAT
This document$ obtains from the freight forwarder$ is used to assure the consignee that insurance
will cover the loss or damage to the cargo during transit 4 marineair insurance5#*'G(AR I*0#I
This invoice is needed to be submitted for certificate to the embassy of the country concerned. Its
main purpose is to enable the importer2s country to collect accurate and authenticate information
about the value$ volume$ 8uantity$ sources etc. of the import for assessing import duties and for
statistical purpose. It helps the importer to get goods cleared through custom customs without
any under delay.
-#R I&"#RTR !"#RTR #, *G&3R 4I5
)GI,(I*' -#R A""(IA*T'
• Two copies of the application must be submitted otherwise mentioned
• ach individual page of the application has to be signed by the applicant
• a5 part 1 /part ? has to be filled in by all application submitted electronically $no hard
copy of part 1 has to be submitted .
b 5 only relevant portions of part : need to be filled in.
• Application must be accompanied by documents as per details give below H
i. Fo# i
-
8/19/2019 Global vs Raka
31/53
b5 only relevant portions of part : need to be filled in.
C5 application must be accompanied by document as per details give belowH
• 3ank receipt 4in duplicate5 demand draft left details evidencing payment of application
in free term of appendi% :1 3• 'elf certified copy of "erforma invoice from foreign supplier showing I- value of the
goods
• 'elf certified copy of registration issued by concerned authority
• 'elf certified copy of the recommendation letter by the concerned
• In case of import of gift $ donors2 in original
• In case of import ammunition $a certificate form the chartered accountant and works
accountantcompany secretary showing sales turnover of ammunition 4indigenous and
imported5 during the preceding three licensing years.
i. B>Fo# i
-
8/19/2019 Global vs Raka
32/53
-or e%port license for '#&T items -or e%port license for '#&T item
)GI,(I*' -#R A""(IA*T'
1F. two copies of the application must be submitted unless otherwise mentioned.
1@. each individual page of the application has to be signed by the applicant
1C.a. part 1 / part ? has to be filled in by all application submitted .in case of application
submitted electronically $ no hard copies of part 1 may be submitted. Eowever in cases where
application are submitted otherwise $hard copy of part 1 has to be submitted.
b. only relevant portioned of part : need to be filled in.
:=.Application must be accompanied by document as per details given below H
-
8/19/2019 Global vs Raka
33/53
,I ,eclaration form for Import
argo ,eclaration
'. *o. Eeading ,ata
1. Importer code
:. EA ode
-
8/19/2019 Global vs Raka
34/53
;. ountry of onsignment
. I)& *#. / ,ate
F. &A63 *o. / ,ate
@. EA63 *o./ ,ate
C. &arks / *os.
1=. *o. of packages
11. )ross 6eight
1:. Types of 3 4E6!'?E'5
1
-
8/19/2019 Global vs Raka
35/53
> urrency Terms of Invoice
4-#3I-I-5
>-reight harges
>Insurance
>#ther charges
vSAMPLE COPY OF DOCUMENTS USED IN EXPORT
'> BILL OF LADIN
-
8/19/2019 Global vs Raka
36/53
:5 !"#RT RTI-IAT
-
8/19/2019 Global vs Raka
37/53
-
8/19/2019 Global vs Raka
38/53
-
8/19/2019 Global vs Raka
39/53
0> INVOICE
-
8/19/2019 Global vs Raka
40/53
;5 (TTR #- "A+&*T
5 (I* #- !"#RT
-
8/19/2019 Global vs Raka
41/53
-
8/19/2019 Global vs Raka
42/53
F5 (TTR #- R,IT
Ho8 Bi* is a C+7i9 M$#
-
8/19/2019 Global vs Raka
43/53
Ca9+a$ion? Ln*$6 ! id$6 ! Hi*6$ dividd 7, '2%3 9+7i9 :$ dividd 7, /(
9+7i9
-
8/19/2019 Global vs Raka
44/53
In$#od+9$ion
'ea freight calculations can broadly be divided into two main componentsO break>bulk and
containeri7ed. In this section we deal with how you should calculate the freight costs of both of
these two types of sea freight.
B#a) 7+) 9a#*o 9a9+a$ions
3reak bulk cargo$ is cargo that is uniti7ed$ palleti7ed or strapped. This cargo is measured along
the greatest length$ width and height of the entire shipment. The cargo is also weighed. 'hipping
lines 8uote break bulk cargo per Dfreight tonD$ which is either 1 metric ton or 1 cubic meter$
which ever yields the greatest revenue.
%ampleH
A case has a gross mass of : &t.
The dimensions of the cargo areH
:.; ! 1 ! : meters
The tariff rate 8uoted by the shipping line isH G', 11=.== weight or measure 4freight ton5
Step 1
&ultiply the meters :.; ! 1 ! : U ; meters ompare to the mass U : &t.
Step 2
alculate the freight with the greater amount either the mass or the dimension. ; ! G', 11=.==U G', ;;=.00
Ra)a’s 9a9+a$ion :o# onion !"o#$ :o#< $6 s6i"
-
8/19/2019 Global vs Raka
45/53
-reight would be paid on the measurement and not the weight. All shipping lines carrying cargo
in a break>bulk form insist on payment based on a minimum freight charge which is e8uivalent
to one freight ton$ one cubic meter or one metric ton.
F+ Con$ain# oad 9a9+a$ions and s+#96a#*s -reight rates for containers are based on the
container as a unit of freight irrespective of the commodity or commodities loaded therein$
4-AK5 -reight All Kinds. The shipping lines 8uote per bo% 4container5 either a si% or twelve
meter container. -rom time to time$ abnormal or e%ceptional costs arise in respect of which no
provision has been made in the tariffs. -or e%ample a shipping line cannot predict the movement
of the G' ,ollar or the sudden increase of the international oil price. These increases have to be
taken into account by the shipping line in order to ensure that the shipping line continues to
operate at a profit. These increases are called surcharges. All shipping lines accordingly retain
the right to impose an adjustment factor upon their rates taking into account these fluctuations.
All surcharges are e%pressed as a percentage of the basic freight rate. 'urcharges are regularly
reviewed in the light of unforeseen circumstances$ which may arise and bring cause for asurcharge increase.
B+n)# AdG+s$
D3unkersD is the generic name given to fuels and lubricants that provide energy to power ships.
The cost of bunker oil fluctuates continually and with comparatively little warning.
alculationH -#R 3A-
-reight rateH G' ,ollarH 1 :;=.== per >& container
M 3A- ;.:J
G' ,ollar 1 :;=.== ! ;.:J U G' ,ollar ;.==
Add the two amounts together
-reight rateH G ' ,ollar 1
-
8/19/2019 Global vs Raka
46/53
-reight rate H G' ,ollar 1:;=.== per & containerM A- .
-
8/19/2019 Global vs Raka
47/53
15 To understand the various document involved in the process of e%port.
:5 To 'tudy the e%act process of the documentation and preparation of documents which.
used in e%port
-
8/19/2019 Global vs Raka
48/53
'econdary data collectionH>
Invoice
"ackaging list
'hipping bill
Internet
RESEARCH DESIN
Research design is the based framework$ which provides guidelines for the research process. It is
a map or blue print according to which the research is to be conducts. The research design
specifies the methods for data collection / data analysis determine the source of data. &ost
specifically it was a kind of Ds9#i"$iv 9on9+siv #sa#96 who takes care of who$ when$
where$ what$ how and why aspects of the investigation further the researcher used the statistical
method to serve he purpose of project$ it permitted the research to derive more accurate
generali7ation whose reliability could be measured.
In this project the study of e%port and the agriculture is done the india is major country as well as
producer and e%porter country in agriculture. that is why I took this topic to study.
CENTRE? *A'EIK$ &AEARA'ETRA
TOOL USED? T("E#*I / >&AI(
DATA SOURCE? '#*,AR+
ACTIVITY CHART
-
8/19/2019 Global vs Raka
49/53
KEY LEARNIN
ATI0IT+ "ARTIG(AR
-irst week 'tudy on e%port process and how the e%port
done from the India or regional level.'econd week 'tudy on the product which are e%port.
Third week Ready the consignment for the e%port$ sorting
of the product as per re8uirement.
-orth week 0isit the market yard. And learn the process
of buying the product and storing the product
in 8uantity.
-ifth week 'tudy of various document which used in
e%port
'i%th week ontact to the customer and know the
re8uirement
'eventh week 'tudy on all records$ calculation$ re8uired
document$ eligibility criteria
ight week 'chemes of e%port consignment and how to
claim the amount of subsidy.
-
8/19/2019 Global vs Raka
50/53
As the student of &3A and there after having opportunity to work with such big name through
that I learned e%actly whole process of the e%port and it2s re8uirement of the document and
format of attaching. They also given me an opportunity to visit the Asia2s biggest onion market
yard where I learn the process of buying and selling of onion and other agriculture product which
are available in such huge 8uantity. The trader2s of market are well known about the types of
product and they can also predict the situation of the rate$ shortage of product$ and also the future
demand of the different product.
It delighted me towards this study because of the following.
15 It was tremendous opportunity for me learned and earned the knowledge of e%port
documentation and procedure. The e%port procedure of the agriculture products in india are so
much different than that of other products this project helps to understand me that.
:5 This project helps me to study the various types of documents re8uire for the e%port procedure
such as I code$ Es code$ shipping bill$ letter of credit$ certificate of e%port$ certificate of8uality$ bill of e%change$ bill of lading $letter of payment$ invoice and etc.
-
8/19/2019 Global vs Raka
51/53
•Eaving the conversation with the all the employees who work on different role in the
company.
•I also work in the arrangement the basic document .which are used in e%port.
•6ith the help of this project we can calculate the Raka2s contribution in e%port
•6ith the help of this project they was able to analyse company should improve the image
of the firm or organisation
•6ith the help of this project we are able to study the documentation of e%port.
•6ith the help of this project we measure the role of the onion e%port.
•The project report was done on the e%port process and documentation which visualise the
raka2s image
•The raka2s rate is having benchmark in the buying 8uantity
•The services are also given on the state level and many people get work and the
employment
-
8/19/2019 Global vs Raka
52/53
CONCULISION
After studying this report we come to know that how much India contribute and to which
countries India provides or e%ports the fresh onion. As per the report IndiaOs rank is on fifth place
in whole world and the also it is the one of the major supplier as well as provider of fresh onion
to the world.
In the above study we came to know that the different states which are the major producer states
of fresh onion and these are the major contributor in e%port of fresh onion from India on the
large scale such as &aharashtra$ )ujarat$ Tamil>nadu $Karnataka etc
In these states the &aharashtra is having the important role in producing and e%port of fresh
onion the report shows that from the &aharashtra the *ashik district is one of the major producer
and e%porter district. In the nashik there is huge area available in which fresh is been produce. To
sell and buy this onion there are market yard2s are available in which the buying and selling
process is been done. In this market yard or the Krushi Gttapnna 3ajar 'amiti the authorised
trader2s are their to buy such huge 8uantity of fresh onion these trader are done their business on
domestic as well as the international level.
In *ashik there are also this kind of Trader2s available to carry the such huge stock of the fresh
onion from this report we came to know the one of big trader name is Raka who is active in this
business since last eighteen year2s and he is one of the strong provider as well as the e%porter of
fresh onion in the *ashik. -rom the studied data of e%port onion from *ashik we found that
Raka is having share of ?F.
-
8/19/2019 Global vs Raka
53/53
BIBLIORAPHY @ APPENDIX
15 %port Import procedure / ,ocumentation Khushpat s. Bain
"oints takenH
a5Registration -ormalities 15 %port (icence 4page no>:@$:C5
:5 Application for Import and %port of Restricted item
4 page no>:C$