export doc. process of ground nut
DESCRIPTION
This is my college project..TRANSCRIPT
Declaration of Originality
I hereby declare that this project is entirely my own work and that any addition sources of
information have been duly cited
I hereby declare that any internet source published or unpublished work from which I have
quoted or drawn reference have been referenced fully in text and in the content list I
understand that failure to do this will of the project due to plagiarism
I understand I will be called for a viva and must attend I acknowledged that it is my
responsibility to check whether I am required to attend and that I will be available during
the viva project I also undertake to make available to the panel week in advance of the
viva all the material (notes reference) in whatever format that was used during the
project
Signed
Date
Name of the supervisor
1
Acknowledgment
Here I am thankful to our Director Prof GAPathak for having permitted me to carry out
this project work
Through this acknowledgement I express my sincere thanks to all those people who have
helped me in preparing the project which give me an outlook towards practical knowledge
of working style of the industry which has been great experience for me
I am extremely thankful to my project guide Ms Bhavna Narang kamlesh sir amp Hitesh sir
for their precious guidance regarding the preparation of the project report Their guidance
has proved to be to be very useful and without which the preparation of this report might
not had been possible
Finally I would like to thanks my beloved parents my friends my classmates for their help
and wishes for the successful competition of this project
Ankita Sendre
2
PREFACE
As we all know without practical knowledge and experience for its application the
knowledge is not of any use
I have immense pleasure to bring out this document incorporating my views on
International business management especially highlighting the A study of export process
and how it had been impotent to the company There are several countries and their
different laws government policies etc which change the scenario of the market The
company had to adept the changes
International Business management has now become a subject of study in almost all
universities besides the management institution worldwide The project consists of
comprehensive discussion the ldquoExport Processrdquo This project report is prepared pursing the
lsquoIBMrsquo at H L CENTER FOR PROFESSIONAL EXCELLENCE the project is a part of
my academic curriculum By this report reader will be able to know about the Export
process
The information provided in this project is derived with reference from various books
internet sites amp professional guidance from people related to this field I confirm that this
particular project is true to the best of my knowledge
3
EXECUTIVE SUMMARY
Exports measure the amount of goods or services that domestic producers provide to
foreign consumers by It is a good that is sent to another country for sale In the past
export of commercial quantities of goods normally required involvement of the customs
authorities in both the country of export and the country of import Exports in India
increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of
2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main
exports are engineering goods (19 percent of total exports) gems and jewelry (15
percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and
Documentation is designed for any person in the organisation who has to deal with export
procedures and the paperwork associated with it It is ideal for those in administration
sales dispatch logistics purchasing finance and managers of companies exporting for
the first time
In export Process the documents required invoice packaging list License of exporter
PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise
process the documents required are ARE -1 form Value delaration certificates etc It is
obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different
Commodity the documents are compulsory for inspection certificates In Export of
Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export
Promotion Council (IOPEPC) To find out the data of export process I did an internship in
SMEnterprise (CHA) for one month In internship I get to know what are the documents
required for export process From my internship I get to know the steps required for export
process
4
Table of Content
No Content Page No
1 Declaration of originality I
2 Acknowledgment II
3 Preface III
4 Executive summery IV
Ch-1 Introduction
Groundnut market Aims and objectives
1
Ch-2 Literature review 4
Ch-3 Research and methodology 16
Ch-4 Export Process 23
Ch-5 Documents 30
Ch-6 conclusion 39
Ch-7 Appendices 40
Ch-8 Bibliography 45
5
INTRODUCTION
Groundnut also known as peanut (Arachis hypogaea) is considered as one of the
important Oil seed crops and is grown throughout the world It has gained a lot of
economic and nutritional Importance worldwide Groundnut is an annual herb belonging
to family Fabaceae The crop is suitable for cultivation in the tropical regions It prospers
well in a light sandy loam soil However it is also known for its ability to survive in less
favorable agro-climate conditions The pods need 4-5 months to ripen The groundnut
belongs to the pea and bean family and is a legume The groundnut is the only nut that
grows below the earth The groundnut plant is a variable annual herb which grows up to
50 cm in height The flowers of the plant develop a stalk which enters into the soil forms
a pod containing generally two seeds They become mature in about two months when
the leaves of the plant turn yellow The plant is then removed from the earth and allowed
to dry After three to six weeks they are separated from the plant The groundnut is
particularly valued for its protein contents which is of high biological value and it contain
more protein than meat-about two and a half times more than eggs and far more than
any other vegetable food except soybean and yeast Groundnut is grown in nearly 100
countries India is one of the major exporting countries of groundnuts after china
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavor sweet taste crunchy texture and a relatively longer shelf life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October
On an average India produces 7- 8 million tons of groundnuts (unshelled) every year In
fact considering the current export figures India has a much larger potential to supply
high quality groundnuts to the international buyer The awareness and concern for quality
amongst the Indian groundnut shellers and processors are growing steadily Multiple
sorting and grading are fast becoming a norm Indian shippers have the capability to
prepare and supply edible Peanuts conforming to highest standards
6
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Acknowledgment
Here I am thankful to our Director Prof GAPathak for having permitted me to carry out
this project work
Through this acknowledgement I express my sincere thanks to all those people who have
helped me in preparing the project which give me an outlook towards practical knowledge
of working style of the industry which has been great experience for me
I am extremely thankful to my project guide Ms Bhavna Narang kamlesh sir amp Hitesh sir
for their precious guidance regarding the preparation of the project report Their guidance
has proved to be to be very useful and without which the preparation of this report might
not had been possible
Finally I would like to thanks my beloved parents my friends my classmates for their help
and wishes for the successful competition of this project
Ankita Sendre
2
PREFACE
As we all know without practical knowledge and experience for its application the
knowledge is not of any use
I have immense pleasure to bring out this document incorporating my views on
International business management especially highlighting the A study of export process
and how it had been impotent to the company There are several countries and their
different laws government policies etc which change the scenario of the market The
company had to adept the changes
International Business management has now become a subject of study in almost all
universities besides the management institution worldwide The project consists of
comprehensive discussion the ldquoExport Processrdquo This project report is prepared pursing the
lsquoIBMrsquo at H L CENTER FOR PROFESSIONAL EXCELLENCE the project is a part of
my academic curriculum By this report reader will be able to know about the Export
process
The information provided in this project is derived with reference from various books
internet sites amp professional guidance from people related to this field I confirm that this
particular project is true to the best of my knowledge
3
EXECUTIVE SUMMARY
Exports measure the amount of goods or services that domestic producers provide to
foreign consumers by It is a good that is sent to another country for sale In the past
export of commercial quantities of goods normally required involvement of the customs
authorities in both the country of export and the country of import Exports in India
increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of
2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main
exports are engineering goods (19 percent of total exports) gems and jewelry (15
percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and
Documentation is designed for any person in the organisation who has to deal with export
procedures and the paperwork associated with it It is ideal for those in administration
sales dispatch logistics purchasing finance and managers of companies exporting for
the first time
In export Process the documents required invoice packaging list License of exporter
PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise
process the documents required are ARE -1 form Value delaration certificates etc It is
obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different
Commodity the documents are compulsory for inspection certificates In Export of
Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export
Promotion Council (IOPEPC) To find out the data of export process I did an internship in
SMEnterprise (CHA) for one month In internship I get to know what are the documents
required for export process From my internship I get to know the steps required for export
process
4
Table of Content
No Content Page No
1 Declaration of originality I
2 Acknowledgment II
3 Preface III
4 Executive summery IV
Ch-1 Introduction
Groundnut market Aims and objectives
1
Ch-2 Literature review 4
Ch-3 Research and methodology 16
Ch-4 Export Process 23
Ch-5 Documents 30
Ch-6 conclusion 39
Ch-7 Appendices 40
Ch-8 Bibliography 45
5
INTRODUCTION
Groundnut also known as peanut (Arachis hypogaea) is considered as one of the
important Oil seed crops and is grown throughout the world It has gained a lot of
economic and nutritional Importance worldwide Groundnut is an annual herb belonging
to family Fabaceae The crop is suitable for cultivation in the tropical regions It prospers
well in a light sandy loam soil However it is also known for its ability to survive in less
favorable agro-climate conditions The pods need 4-5 months to ripen The groundnut
belongs to the pea and bean family and is a legume The groundnut is the only nut that
grows below the earth The groundnut plant is a variable annual herb which grows up to
50 cm in height The flowers of the plant develop a stalk which enters into the soil forms
a pod containing generally two seeds They become mature in about two months when
the leaves of the plant turn yellow The plant is then removed from the earth and allowed
to dry After three to six weeks they are separated from the plant The groundnut is
particularly valued for its protein contents which is of high biological value and it contain
more protein than meat-about two and a half times more than eggs and far more than
any other vegetable food except soybean and yeast Groundnut is grown in nearly 100
countries India is one of the major exporting countries of groundnuts after china
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavor sweet taste crunchy texture and a relatively longer shelf life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October
On an average India produces 7- 8 million tons of groundnuts (unshelled) every year In
fact considering the current export figures India has a much larger potential to supply
high quality groundnuts to the international buyer The awareness and concern for quality
amongst the Indian groundnut shellers and processors are growing steadily Multiple
sorting and grading are fast becoming a norm Indian shippers have the capability to
prepare and supply edible Peanuts conforming to highest standards
6
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
PREFACE
As we all know without practical knowledge and experience for its application the
knowledge is not of any use
I have immense pleasure to bring out this document incorporating my views on
International business management especially highlighting the A study of export process
and how it had been impotent to the company There are several countries and their
different laws government policies etc which change the scenario of the market The
company had to adept the changes
International Business management has now become a subject of study in almost all
universities besides the management institution worldwide The project consists of
comprehensive discussion the ldquoExport Processrdquo This project report is prepared pursing the
lsquoIBMrsquo at H L CENTER FOR PROFESSIONAL EXCELLENCE the project is a part of
my academic curriculum By this report reader will be able to know about the Export
process
The information provided in this project is derived with reference from various books
internet sites amp professional guidance from people related to this field I confirm that this
particular project is true to the best of my knowledge
3
EXECUTIVE SUMMARY
Exports measure the amount of goods or services that domestic producers provide to
foreign consumers by It is a good that is sent to another country for sale In the past
export of commercial quantities of goods normally required involvement of the customs
authorities in both the country of export and the country of import Exports in India
increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of
2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main
exports are engineering goods (19 percent of total exports) gems and jewelry (15
percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and
Documentation is designed for any person in the organisation who has to deal with export
procedures and the paperwork associated with it It is ideal for those in administration
sales dispatch logistics purchasing finance and managers of companies exporting for
the first time
In export Process the documents required invoice packaging list License of exporter
PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise
process the documents required are ARE -1 form Value delaration certificates etc It is
obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different
Commodity the documents are compulsory for inspection certificates In Export of
Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export
Promotion Council (IOPEPC) To find out the data of export process I did an internship in
SMEnterprise (CHA) for one month In internship I get to know what are the documents
required for export process From my internship I get to know the steps required for export
process
4
Table of Content
No Content Page No
1 Declaration of originality I
2 Acknowledgment II
3 Preface III
4 Executive summery IV
Ch-1 Introduction
Groundnut market Aims and objectives
1
Ch-2 Literature review 4
Ch-3 Research and methodology 16
Ch-4 Export Process 23
Ch-5 Documents 30
Ch-6 conclusion 39
Ch-7 Appendices 40
Ch-8 Bibliography 45
5
INTRODUCTION
Groundnut also known as peanut (Arachis hypogaea) is considered as one of the
important Oil seed crops and is grown throughout the world It has gained a lot of
economic and nutritional Importance worldwide Groundnut is an annual herb belonging
to family Fabaceae The crop is suitable for cultivation in the tropical regions It prospers
well in a light sandy loam soil However it is also known for its ability to survive in less
favorable agro-climate conditions The pods need 4-5 months to ripen The groundnut
belongs to the pea and bean family and is a legume The groundnut is the only nut that
grows below the earth The groundnut plant is a variable annual herb which grows up to
50 cm in height The flowers of the plant develop a stalk which enters into the soil forms
a pod containing generally two seeds They become mature in about two months when
the leaves of the plant turn yellow The plant is then removed from the earth and allowed
to dry After three to six weeks they are separated from the plant The groundnut is
particularly valued for its protein contents which is of high biological value and it contain
more protein than meat-about two and a half times more than eggs and far more than
any other vegetable food except soybean and yeast Groundnut is grown in nearly 100
countries India is one of the major exporting countries of groundnuts after china
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavor sweet taste crunchy texture and a relatively longer shelf life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October
On an average India produces 7- 8 million tons of groundnuts (unshelled) every year In
fact considering the current export figures India has a much larger potential to supply
high quality groundnuts to the international buyer The awareness and concern for quality
amongst the Indian groundnut shellers and processors are growing steadily Multiple
sorting and grading are fast becoming a norm Indian shippers have the capability to
prepare and supply edible Peanuts conforming to highest standards
6
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
EXECUTIVE SUMMARY
Exports measure the amount of goods or services that domestic producers provide to
foreign consumers by It is a good that is sent to another country for sale In the past
export of commercial quantities of goods normally required involvement of the customs
authorities in both the country of export and the country of import Exports in India
increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of
2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main
exports are engineering goods (19 percent of total exports) gems and jewelry (15
percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and
Documentation is designed for any person in the organisation who has to deal with export
procedures and the paperwork associated with it It is ideal for those in administration
sales dispatch logistics purchasing finance and managers of companies exporting for
the first time
In export Process the documents required invoice packaging list License of exporter
PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise
process the documents required are ARE -1 form Value delaration certificates etc It is
obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different
Commodity the documents are compulsory for inspection certificates In Export of
Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export
Promotion Council (IOPEPC) To find out the data of export process I did an internship in
SMEnterprise (CHA) for one month In internship I get to know what are the documents
required for export process From my internship I get to know the steps required for export
process
4
Table of Content
No Content Page No
1 Declaration of originality I
2 Acknowledgment II
3 Preface III
4 Executive summery IV
Ch-1 Introduction
Groundnut market Aims and objectives
1
Ch-2 Literature review 4
Ch-3 Research and methodology 16
Ch-4 Export Process 23
Ch-5 Documents 30
Ch-6 conclusion 39
Ch-7 Appendices 40
Ch-8 Bibliography 45
5
INTRODUCTION
Groundnut also known as peanut (Arachis hypogaea) is considered as one of the
important Oil seed crops and is grown throughout the world It has gained a lot of
economic and nutritional Importance worldwide Groundnut is an annual herb belonging
to family Fabaceae The crop is suitable for cultivation in the tropical regions It prospers
well in a light sandy loam soil However it is also known for its ability to survive in less
favorable agro-climate conditions The pods need 4-5 months to ripen The groundnut
belongs to the pea and bean family and is a legume The groundnut is the only nut that
grows below the earth The groundnut plant is a variable annual herb which grows up to
50 cm in height The flowers of the plant develop a stalk which enters into the soil forms
a pod containing generally two seeds They become mature in about two months when
the leaves of the plant turn yellow The plant is then removed from the earth and allowed
to dry After three to six weeks they are separated from the plant The groundnut is
particularly valued for its protein contents which is of high biological value and it contain
more protein than meat-about two and a half times more than eggs and far more than
any other vegetable food except soybean and yeast Groundnut is grown in nearly 100
countries India is one of the major exporting countries of groundnuts after china
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavor sweet taste crunchy texture and a relatively longer shelf life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October
On an average India produces 7- 8 million tons of groundnuts (unshelled) every year In
fact considering the current export figures India has a much larger potential to supply
high quality groundnuts to the international buyer The awareness and concern for quality
amongst the Indian groundnut shellers and processors are growing steadily Multiple
sorting and grading are fast becoming a norm Indian shippers have the capability to
prepare and supply edible Peanuts conforming to highest standards
6
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Table of Content
No Content Page No
1 Declaration of originality I
2 Acknowledgment II
3 Preface III
4 Executive summery IV
Ch-1 Introduction
Groundnut market Aims and objectives
1
Ch-2 Literature review 4
Ch-3 Research and methodology 16
Ch-4 Export Process 23
Ch-5 Documents 30
Ch-6 conclusion 39
Ch-7 Appendices 40
Ch-8 Bibliography 45
5
INTRODUCTION
Groundnut also known as peanut (Arachis hypogaea) is considered as one of the
important Oil seed crops and is grown throughout the world It has gained a lot of
economic and nutritional Importance worldwide Groundnut is an annual herb belonging
to family Fabaceae The crop is suitable for cultivation in the tropical regions It prospers
well in a light sandy loam soil However it is also known for its ability to survive in less
favorable agro-climate conditions The pods need 4-5 months to ripen The groundnut
belongs to the pea and bean family and is a legume The groundnut is the only nut that
grows below the earth The groundnut plant is a variable annual herb which grows up to
50 cm in height The flowers of the plant develop a stalk which enters into the soil forms
a pod containing generally two seeds They become mature in about two months when
the leaves of the plant turn yellow The plant is then removed from the earth and allowed
to dry After three to six weeks they are separated from the plant The groundnut is
particularly valued for its protein contents which is of high biological value and it contain
more protein than meat-about two and a half times more than eggs and far more than
any other vegetable food except soybean and yeast Groundnut is grown in nearly 100
countries India is one of the major exporting countries of groundnuts after china
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavor sweet taste crunchy texture and a relatively longer shelf life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October
On an average India produces 7- 8 million tons of groundnuts (unshelled) every year In
fact considering the current export figures India has a much larger potential to supply
high quality groundnuts to the international buyer The awareness and concern for quality
amongst the Indian groundnut shellers and processors are growing steadily Multiple
sorting and grading are fast becoming a norm Indian shippers have the capability to
prepare and supply edible Peanuts conforming to highest standards
6
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
INTRODUCTION
Groundnut also known as peanut (Arachis hypogaea) is considered as one of the
important Oil seed crops and is grown throughout the world It has gained a lot of
economic and nutritional Importance worldwide Groundnut is an annual herb belonging
to family Fabaceae The crop is suitable for cultivation in the tropical regions It prospers
well in a light sandy loam soil However it is also known for its ability to survive in less
favorable agro-climate conditions The pods need 4-5 months to ripen The groundnut
belongs to the pea and bean family and is a legume The groundnut is the only nut that
grows below the earth The groundnut plant is a variable annual herb which grows up to
50 cm in height The flowers of the plant develop a stalk which enters into the soil forms
a pod containing generally two seeds They become mature in about two months when
the leaves of the plant turn yellow The plant is then removed from the earth and allowed
to dry After three to six weeks they are separated from the plant The groundnut is
particularly valued for its protein contents which is of high biological value and it contain
more protein than meat-about two and a half times more than eggs and far more than
any other vegetable food except soybean and yeast Groundnut is grown in nearly 100
countries India is one of the major exporting countries of groundnuts after china
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavor sweet taste crunchy texture and a relatively longer shelf life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October
On an average India produces 7- 8 million tons of groundnuts (unshelled) every year In
fact considering the current export figures India has a much larger potential to supply
high quality groundnuts to the international buyer The awareness and concern for quality
amongst the Indian groundnut shellers and processors are growing steadily Multiple
sorting and grading are fast becoming a norm Indian shippers have the capability to
prepare and supply edible Peanuts conforming to highest standards
6
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Groundnut is the major oilseed of India It accounts for around 25 of the total oilseed
production of the country Annual production of Indian Peanuts and Indian Peanuts oil are
around 5-8mln and 15 mln tons respectively Peanuts Production is highly vulnerable to
rainfall deviations and display huge fluctuation between years
Regional estimates are Gujarat (1-35 million tons) Tamil Nadu (1million tons) Andhra
Pradesh (1-2 million tons) Karnataka (05 million tons) Maharashtra (05 million tons)
are the major producers of Peanuts Around 75 of the crop is produced in khariff (June
- September) and remaining 25 in rabi (November - March) India exported around
100000 tons of groundnut oil in 2003-04 after 4 decades as crop failed in Senegal and
Argentina Peanuts or Groundnut kernels are approx 70 of weight in shells and kernels
have an oil recovery of 40-42
China (2-25 million tons) India (15-2 million tons) is the major producers of groundnut
oil followed by Sub-Saharan African countries and Central and South America
Global trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year EU
and US are major importers Senegal and Argentina are the major Peanuts exporters
Factors Influencing Peanuts or Groundnut Markets
1 Weather at the major domestic producing centers The southwest monsoon is the most
important factor that determines the area sown production and prices
2 Price of other competitive oils in India viz soy oil palm oil cottonseed oil sunflower
oil and mustard oil
3 International price movement of soy oil at CBOT and palm oil at BMD Malaysia also
influences the groundnut oil prices
4 Festivals and celebrations also increase consumption and the prices
Source httpwwwiopepcorgproductsphp
Varieties
The main Groundnut varieties produced in India are Kadiri-2 Kadiri-3 BG-1 BG-2
Kuber GAUG-1 GAUG-10 PG-1 T-28 T-64 Chandra Chitra Kaushal Parkash
Amber
7
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Areas of Cultivation
Andhra Pradesh Bihar Gujarat Haryana Uttar Pradesh Maharashtra Tamil Nadu
Madhya Pradesh is the main production area in India
India Facts and Figures
The country has exported 8 3261692 MT of groundnuts to the world for the worth of
Rs5 24645 cores during the year 2011-12
Major Export Destinations (2011-12) Indonesia Vietnam Social Republic Malaysia
Philippines and China P RP
Source httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
AIMS AND OBJECTIVES
To know about how to do a business of Export
Help to get knowledge of custom clearance procedure
To get knowledge of required documentation
To get knowledge of government rules amp regulation
8
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
LITERATURE REVIEW
WHAT IS EXPORT
This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country The seller of such goods and services is referred to
as an exporter who is based in the country of export whereas the overseas based buyer
is referred to as an importer In International Trade exports refers to selling goods and
services produced in the home country to other markets Export of commercial quantities
of go Odds normally require involvement of the customs authorities in both the country of
export and the country of import The advent of small trades over the internet such as
through Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades Nonetheless these small
exports are still subject to legal restrictions applied by the country of export An exports
counterpart is an import
ldquoExport ldquoExports measure the amount of goods or services that domestic producers
provide to foreign consumers by It is a good that is sent to another country for sale In
the past export of commercial quantities of goods normally required involvement of the
customs authorities in both the country of export and the country of import More recently
with the advent of small trades over the internet such as through Amazon and e-Bay
exports have largely bypassed the involvement of Customs in many countries due to the
low individual values of these trades Nonetheless these small exports are still subject to
legal restrictions applied by the country of export
Source httpwwwtradingeconomicscomindiaexports
HISTORY OF EXPORT IN INDIA
Exports in India increased to 141206 INR Billion in February of 2013 from 138982 INR
Billion in January of 2013 Exports in India are reported by the Directorate General of
Commerce Historically from 1978 until 2013 India Exports averaged 23501 INR Billion
9
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
reaching an all time high of 142173 INR Billion in March of 2012 and a record low of
375 INR Billion in May of 1978 Indiarsquos main exports are engineering goods (19 percent
of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural
products (9 percent) and textiles (9 percent) India is also one of Asiarsquos largest refined
product exporters with petroleum accounting for around 18 percent of total exports
Indiarsquos main export partners are United Arab Emirates (12 percent of total exports) and
United States (11 percent) Others include China Singapore Hong Kong and
Netherlands
Source httpwwwtradingeconomicscomindiaexports
IMPORTANCE OF EXPORT IN INDIA
Exports of a country play an important role in the economy A healthy balance a
sustainable development with trade and foreign exchange reserves to maintain the
countrys export growth should be a constant and high rate Exports as a whole affect the
industrial environment To compete internationally the industry standard for quality
products competitive price good packaging etc which is important for overall industry
For export as a national priority for government and private sectors recognized by all
agencies to export export growth is to maintain high rates Partnership between public
and private sectors export procedure the better foreign direct investment (FDI)
especially in the manufacturing sectors the results at all levels should be Exports as a
motivating force to act fast developing Indian economy and India an important player in
the global market can make During 2002-03 merchandise exports are worth Rs 2
compared to Rs 50 130 crore 1967 209 017 million with a growth rate of Indian
exports in 2001-02
Indias GDP growth rate in exports strong factor contributing to GDP increases constantly
day by day India in terms of population after China the second largest country in the
world Indias economy has performed well in recent years after the country began to
open in 1991 Indias exports enter the WTO since 1995 has doubled
Total exports of goods and commercial services Indias share in the world is up 086
percent in 1995 from 061 per cent in 2001 total imports of goods and commercial
10
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
services in the world the countrys stock 099 percent from 078 percent increase
Indias trade usually last two decades a faster growth rate than GDP growth Since 1991
especially with liberalization Indias economy has boosted the importance of international
trade As a result of international trade to GDP ratio has gone from 14 percent in 1980 in
the late 1990s to about 20 percent Given the trends of globalization and liberalization to
the openness of Indian economy is expected to grow further in the coming two decades
In 2020 Indias trade and more precise magnitude of Indias national income ratio will be
determined by a variety of factors
Source httpforanhubpagescom
ORGANIZATION FOR EXPORT IN INDIA
Exim Bank is managed by a Board of Directors which has representatives from the
Government Reserve Bank of India Export Credit Guarantee Corporation of India a
financial institution public sector banks and the business community
The Banks functions are segmented into several operating groups including Corporate
Banking Group which handles a variety of financing programmers for Export Oriented
Units (EOUs) Importers and overseas investment by Indian companies Project Finance
Trade Finance Group handles the entire range of export credit services such as suppliers
credit pre-shipment Agri Business Group to spearhead the initiative to promote and
support Agri-exports The Group handles projects and export transactions in the
agricultural sector for financing
Small and Medium Enterprise The group handles credit proposals from SMEs under
various lending programmes of the Bank
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Export Marketing Services Bank offers assistance to Indian companies to enable them
establish their products in overseas markets The idea behind this service is to promote
Indian export Export Marketing
11
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Services covers wide range of export oriented companies and organizations EMS group
also covers Project exports and Export of Services
Besides these the Support Services groups which include Research amp Planning
Corporate Finance Loan Recovery Internal Audit Management Information Services
Information Technology Legal Human Resources Management and Corporate Affairs
Source httpwwweximbankindiacom
EXPORT OF GROUNDNUT FROM INDIA
India ranks second in the world in groundnut production In India groundnut is
considered as the most important oilseed followed by mustard In India groundnut is
mostly grown as a kharif crop and contributes to around 45 percent of the total oilseed
production in the country Gujarat Andhra Pradesh Tamil Nadu Rajasthan and
Karnataka are the leading groundnut producing states in India accounting for around 86
percent of the total domestic output However area under groundnut cultivation in the
country has gradually decreased from 67 million hectares (mha) in 2005-06 to an
estimated 49 mha in 2010-11 Total production of groundnut has also declined from 80
million tonnes in 2005-06 to an estimated 56 million tonnes in 2010-11
India exports groundnut mostly to its neighboring countries such as Indonesia Malaysia
Philippines and Pakistan In 2009-10 India exported around 340 million kg of groundnut
valued at US$ 300 million which was an increase of 124 percent by volume and 103
percent by value over 2008-09 Despite being the second largest producer of groundnut
in the world India is not a dominant player in global trade in groundnut since domestic
demand accounts for 30 percent of the worldrsquos total groundnut consumption Further
decreasing production coupled with rising demand has resulted in increase in prices of
groundnut in the country In the recent years this has also resulted in ban on exports of
edible groundnut oil from the country
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
12
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
OPPORTUNITIES
Groundnut kernels also known as edible nut or table nut are usually considered at par
with cashew pistachio and almond in terms of consumer demand The international
market for premium selected kernels is large and concentrated mainly in developed
economies although in the recent years demand for premium groundnut and groundnut
products in the emerging markets such as China and India are also increasingly rising
In India while the acreage of groundnut is large productivity is one of the lowest in the
world Therefore there is a need to give a major thrust on developing groundnut varieties
which are high yielding and promising in less-fertile regions and moisture stress
conditions
Source httpwwwagricultureinformationcommag201110groundnut-export-potential-
for-india
INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION
COUNCIL
Indian Oilseed and Produce Export Promotion Council (IOPEPC) are concerned with the
promotion of various Oilseeds and Oils Formerly known as IOPEA it was formed on 23
rd June 1956 at a preliminary meeting held in Bombay under the Partnership of late Shri
Lalji Mehrotra former President of Federation of Indian Chambers of Commerce and
Industry (FICCI) and Indias one time ambassador to Myanmar and Japan
The formation of IOPEA was in fact the first organized effort to promote and protect the
interests of Indias export trade in commodities like Oilseeds Vegetable Oils and
Oilcakes in a collective and concerted manner through a representative body With
subsequent setting up of sectoral Associations for different oilcakes and extraction cakes
IOPEPC concentrated its attention and activities mainly on productivity and export of
oilseeds and vegetable oils IOPEPC is thus the pioneer body for oilseeds and oils in the
13
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
country
IOPEPC has a diverse membership manufacturer-exporters merchant-exporters
traders brokers and service providers such as freight brokers superintendents
surveyors commission agents fumigators etc actively connected with the export trade
in oilseeds and oils
Since 1991 IOPEPC has been functioning as the Indian liaison office of FOSFA
International London and is also kindred Association Member of FOSFA The Peanut
Councils of developed countries like Germany Netherlands UK and USA have already
recognized IOPEPC as the main representative from India
INDIAN HPS GROUNDNUT KERNELS
India is one of the largest producers of Groundnuts in the world Indian groundnuts are
available in different varieties ie Bolds or Runners Javas or Spanish and Red Natals
and have a rich nutty flavour sweet taste crunchy texture and a relatively longer shelf
life
Groundnuts in India are available throughout the year due to a two-crop cycle harvested
in March and October On an average India produces 7- 8 million tons of groundnuts
(unshelled) every year In fact considering the current export figures India has a much
larger potential to supply high quality groundnuts to the international buyer
The awareness and concern for quality amongst the Indian groundnut shellers and
processors are growing steadily Multiple sorting and grading are fast becoming a norm
Indian shippers have the capability to prepare and supply edible peanuts conforming to
highest standards
Source httpwwwiopepcorgproductsphp
14
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
METHODS OF EXPORTING
1 Indirect Exports via Export management companies or trading companies
2 Direct exporting using a foreign agent or a distributor
3 Direct Exporting by using wholly owned sales subsidiary
4 Direct sales including mail order and e-commerce
EXPORT DOCUMENTATION REQUIREMENTS IN INDIA
Export documentation in India has evolved a great deal particularly since 1990 Efforts
are on on a fast footing to streamline and modernize the system further Prior to 1990
documentation was all manual and not at all coordinated The result was lot of delays and
mistakes rendering the task very clumsy tiresome repetitive and truly frustrating India
adopted ADS in 1991 ADS refer to aligned documentation system which is the
internationally accepted documentation system ADS use a master document that
contains the information common to all documents forming part of the aligned series
The export documentation framework in India can be best understood by classifying
export documents in following categories
1 Commercial documents
2 Regulatory document
3 Export assistance documents
4 Documents required by importing countries
1 Commercial documents these documents have their origin in ldquocustom of traderdquo in
international commerce and are used by exporters importers to discharge their
respective legal and other incidental responsibilities under sales contract Commercial
documents can be further sub divided into
a) PRINCIPAL COMMERCIAL DOCUMENTS these documents serve the following
15
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
purposes
To effect physical transfer of goods and title to the goods from exporter to buyer
To realize export sale proceeds
Principal Commercial Documents include
1 Commercial Invoice (and the invoice prescribed by the importer) It is the basic
and most important document in an export transaction and extreme care has to
be taken by the exporter to prepare this document This document requires the
exporter to submit details such as his own details Invoice number with date
details of the consignee and buyer (if the buyer is other than consignee) buyerrsquos
order number with date country of origin of the goods country of final destination
terms of payment and delivery pre-carriage details (RoadRail) vesselflight
number port of loading port of discharge final destination container number
number and kind of packaging detailed description of goods quantity rate and
total amount chargeable etc
2 Packing list This document provides the details of number of packages quantity
packed in each of them the weight and measurement of each of the packages
and the net and gross weight of the total consignment Net weight refers to the
actual weight of the items and the gross weight means the weight of the items
plus the weight of the packing material The packing list serves a useful purpose
of the exporter while dispatching the consignment as a cross check of goods sent
For the port personnel it comes handy while planning the loading and offloading
of cargo It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct checks on
the weight and measurements of the goods smoothly against the declarations
made by the exporter in the packing list
1 Certificate of Inspection This is the Certificate issued by the Export Inspection
Agency after it has conducted the pre-shipment inspection of goods for export
provided the goods fall under the notified category of goods requiring compulsory
shipment of inspection
16
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
2 Insurance Policy Insurance is an important area in the export business as the
stakes are usually very high Protection needs to be taken in the form of
insurance cover for the duration of transit of goods from the exporter to the
importer
3 Bill of Lading Combined Transport Documents
Bill of lading A legal document between the shipper of a particular good and the carrier
detailing the type quantity and destination of the good being carried The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination This document must accompany the shipped goods no matter the form of
transportation and must be signed by an authorized representative from the carrier
shipper and receiver
Combined Transport Document This is also known as Multi-modal Transport
Document Ever since containers have become popular the concept of Combined
Transport Document has gained solid ground
4 Certificate of Origin This document serves as a proof of the country of origin of
goods for the importer in his country Imported countries usually require this to be
produced at the time customs clearance of import cargo It also plays an important
part in computing the liability and the rate of import duty in the country of import
This certificate declares the details of goods to be shipped and the country where
these goods are grown manufactured or produced Such goods need to have
substantial value addition so as to become eligible to certification of this nature
5 Bill of exchange Also known as Draft this is an instruments for payment
realization It is a written unconditional order for payment from a drawer to a
drawee directing the drawee to pay a specified amount of money in a given
currency to the drawer or a named payee at a fixed or determinable future date
The exporter is the drawer and he draws (prepares and signs) this unconditional
order in writing upon the importer (drawee) asking him to pay a certain sum of
money either to himself or his nominee (endorsee) This order could be made for
payment on demand called a bill of exchange at sight or payment at a future
17
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
date called a usance bill of exchange
6 Shipment Advice The exporter sends this document called shipping advice to
the buyer soon after the shipment is made to provide him all the shipment details
This serves as an advance intimation of the shipment and allows the importer to
arrange for delivery of the same
b) AUXILIARY COMMERCIAL DOCUMENT these documents are required to prepare
procure the principal commercial documents
Auxiliary commercial document include
1 Proforma Invoice The starting of the export contract is in the form of offer made
by exporter to the foreign customer The offer made by the exporter is in the form
of a proforma invoice Itrsquos a quotation given as a reply to an inquiry It normally
forms the basis of all trade transactions
2 Shipping Instructions where the contract terms require that the insurance to be
covered by exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
3 Insurance Declaration where the contract terms require that the insurance to be
covered by the exporter the shipper has to give details of the shipment to the
insurance company for necessary insurance cover
4 Intimation for Inspection whenever the consignment requires the pre-shipment
inspection necessary application is to be made to the consumed inspection
agency for conducting the inspection and issue of certificates
5 Shipping Order It is issued by the shipper conference line intimating the
exporter about the reservation of space for shipment of cargo which the export
intends to ship Details of the vessel poet of the shipment and the date on which
the good are to be shipped are mentioned This order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods
6 Mates Receipt Clean matersquos receipt ndash the commanding officer of the ship issues
18
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
a clean matersquos receipt if he is satisfied that the good are packed properly and
there is no defect in the packing of cargo or package
Qualified matersquos receipt ndash the commanding officer of the slip issues qualified
matersquos receipt when goods are not packed properly and the shipping company
does not take any responsibility of damage to the goods during transit
7 Application for Certificate of Origin In case the exporter has to obtain certificate
of origin form the concerned authorities as application has to be made to the
concerned authority with required documents While the simple invoice copy will
do for getting CO from the chamber of commerce in respect of obtained the
same from the office of the textile committee or export promotion council
8 Letter to bank for negotiation collection of documents at the post shipment
stage the exporter has to submit the documents to a bank for negotiation or
discounting or collection for forwarding the same to the customer and also for
realization of export proceeds
2 REGULATORY DOCUMENTS these are prescribed by various government
departments bodies for compliance of formalities under relevant laws governing export
transactions
Regulatory documents include
1 Exchange Control Declaration (GRPPSOFTEX) Form Under the exchange
control regulation all export must declare the details of shipment for monitoring by
the reserve bank of India for this purpose RBI has prescribed different forms for
different types of shipments like GRI PP for ms etc these declaration must be
presented to the customs officials at the time of passing of export documentation
under the EDI processing of shipping bill in the customs these forms have been
dispensed with and a new form SDF has to be submitted to the customs in the
place of above forms
2 Freight Payment Certificate In most of the cases the BL or AWB will mention
the transportation and other related charges However if the exporter does not
want these details to be disclosed to the buyer the shipping company
3 Insurance Premium Payment Certificate Differs upon product to product and a
number of such other factors such as distance of voyage type and condition of
19
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
packing etc premium for air consignments lowered as compared to
consignments by sea
4 ARE I Forms ARE 1 form (central excise) is prescribed under central excise
rule for export of goods In case goods meant for export are cleared directly from
the premises of a manufacture the exporter can avail the facility of exemption
from payment of terminal excise duty The good may be declared for export either
under claim for rebate of duty paid or under bond without payment of duty In both
the events the goods are to be cleared under from ARE ndash 1 which will show the
detail of the goods being exported the relevant duty involved and if the duty is
paid or goods being cleaned under bond details of goods being sealed either by
the exporter or central excise officials etc
5 Shipping BillBill of Export shipping bill is the main custom document required by
the customs authorities for granting permission for the shipment of goods The
cargo is moved inside the dock area only after shipping bill is duly stamped ie
certified by the customs
6 Export Application this is the application to be made to the customs officials
before shipment of goods The prescribed form of the application is the Shipping
BillBill of Export Different types are required for shipment like ex-bond duty free
goods and dutiable goods and for export under different export promotion
schemes such as claims for duty drawback etc
7 Vehicle TicketCart TicketGate Pass etc before the goods are being taken inside
the port for loading necessary permission has to be obtained for moving the vehicle into
the customs area This permission is granted by the Port Trust Authority This document
will contain the detail of the export cargo name and address of the shippers lorry
number marks and number of the packages driverrsquos license details etc
3 Export Assistance Documents These are the documents which are required for
claiming assistance under the various export assistance measures as may be in
operation from to time Currently these refer to drawbacks of central excise and customs
duties packing credit facilities etc
4 Documents required by importing countries These are the documents which are
required by the importer in order to satisfy the requirements of his Government These
20
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
include certificates of origin consular invoice quality control certificate etc
RESEARCHMETHOLOGY
What is research
It is a systematic process of collecting amp analyzing information in order to increase our
understanding of the phenomenon about which are concerned or interested
The research is basically an exploratory research We will do by way of extensive
literature review of books to find out the scope and basic background journals and other
published data related to the focus of the study as also concerned websites was carried
out to gather background information about the general nature of the research problem
Research methodology is considered as the nerve of the project Without a proper well-
organized research plan it is impossible to complete the project and reach to any
conclusion The project was based on the survey plan The main objective of survey
waste collect appropriate data which work as a base for drawing conclusion and
getting result
Therefore research methodology is the way to systematically solve the research
problem Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
Research design
21
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Research design is important primarily because of the increased complexity in the
markets well as marketing approaches available to the researchers In fact it is the key to
the evolution of successful marketing strategies and programmers It is an important tool
to study buyerrsquos behavior consumption pattern brand loyalty and focus market changes
A research design specifies the methods and procedures for conducting a particular
study According to Kerlinger ldquoResearch Design is a plan conceptual structure and
strategy of investigation conceived as to obtain answers to research questions and to
control variance
SECONDARY DATA
Secondary data is data collected by someone other than the user Common sources of
secondary data for social science include censuses Organizational records and data
Collected through qualitative methodologies or qualitative research Primary data by
Contrast are collected by the investigator conducting the research Secondary data
analysis saves time that would otherwise be spent collecting data and particularly in the
case of quantitative data provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own In addition Analysts of
social and economic change consider secondary data essential since it is impossible to
conduct a new survey that can adequately capture past change andor developments
PRIMERY RESEARCH
Experiments investigations or tests carried out to acquire data first-hand Rather than
being gathered from published sources
QUALITATIVE RESEARCH Qualitative research uses observation as the data collection
method Observation is the selection and recording of behaviors of people in their
Environment Observation is useful for generating in-depth descriptions of Organizations
or events for obtaining Information that is otherwise inaccessible and for conducting
22
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
research when other methods are inadequate Qualitative research design use not to
convert number Itrsquos for analyzes the process of export process
QUANTITATIVE RESEARCH refers to the systematic empirical investigation of social
Phenomena via statistical mathematical or computational techniques The objective of
quantitative research is to develop and employ mathematical models theories andor
hypotheses pertaining to phenomena The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships Quantitative data
is any data that is in numerical form such as statistics percentages etc
EXPLORATORY RESEARCH
Investigation into a problem or situation which provides insights to the researcher The
research is meant to provide details where a small amount of information exists It may
use a variety of methods such as trial studies interviews group discussions
experiments or other tactics for the purpose of gaining information In this method I am
going to study the export process of groundnuts and I collect information and data
collection from the organization by taking personal interview
DESCRIPTIVE RESEARCH
Research that provides an accurate portrayal of characteristics of a particular individual
situation or group These studies are an of discovering new meaning describing what
exists determining the frequency with which something occurs and categorizing
information Descriptive research design use for to know process of export in more detail
and in depth by taking interview of employees I collect some data from magazines and
journals to know new polices and government regulations
CASUAL RESEARCH
An informal type of investigation into an issue or topic Casual research might
23
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Include searching for something on the Internet It differs from scientific research that
Is considerably more formal and rigorous in nature and causal research that investigates
The effect of one thing on another
DATA COLLECTION METHOD
SURVEY Often used with a variety of meanings and can take a number of forms but
three different types generally used in needs assessment face-to-face telephone and
mailed (questionnaires) Survey may be an extensive study of the needs of a large
community or a brief and superficial study of the situation of a particular organization
Pilot Survey One of the key elements in conducting surveys and other data gathering
methods is efficiency It is important to utilize money time and effort in the most efficient
way possible to achieve success in performing surveys especially those that require a
large number of participants To promote efficiency in conducting surveys researchers
usually perform a pilot survey
OBSERVATION METHOD An extensive array of research methods used with the
intention of Observing consumer interactions with products and services in their natural
surroundings The main advantage to conducting observational research in business is
that the consumer are often unaware they are being monitored allowing the researcher to
make an objective analysis
INTERVIREW is verbal questioning In research Lindzey Gardner has defined interview
as ldquoa two-person conversation initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified by
the research objectives of description and explanationrdquo
UNSTRUCTURED There are no specifications in the wording of the questions or the
order of the questions The interviewer forms questions as and when required The
structure of the interview is flexible Unstructured interview use to get more deep
knowledge I am using this method to get more knowledge about export process Its
24
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
depend upon the answer of questions and how much I would like to collect the
information related to relevant filed
Structured Is based on the structured interview-guide which is little different from the
questionnaire It is a set of specific points and definite questions prepared by the
interviewer I have made the questions as per I want to collect the data
SAMPLING PLAN
A sampling plan is a detailed outline of which measurements will be taken at what times
on which material in what manner and by whom Sampling plans should be designed in
such a way that the resulting data will contain a representative sample of the parameters
of interest and allow for all questions as stated in the goals to be answered
SAMPLE SURVEY Cross-sectional study aimed at producing summary statistics such
as averages means and percentages For this research we are taken sample survey as
per the industry needs
Sample size 1
Sampling Unit SM Enterprise
Sample method convenience
SAMPLING TECHNIQUES
PROBABILITY SAMPLING
Method is any method of sampling that utilizes some form of random selection In order
to have a random selection method you must set up some process or procedure that
assures that the different units in your population have equal probabilities of being
chosen Simple random sampling Here people are selected at random through lottery
system or at random by a computer Systematic Sampling Here every lsquonrsquo th element of
the population is selected For example every 10 th person from the telephone directory
25
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
is chosen Stratified sampling This is similar to quota sampling Here also groups on the
basis of age income occupation etc are made But the people from each of the groups
are chosen by simple random sampling or by systematic sampling ClusterArea sampling
Here the population is divided into small similar groups like small populations Then one
or two groups are selected as the sample
NON PROBILILITY
It does mean that no probability samples cannot depend upon the rationale of probability
theory At least with a probabilistic sample we know the odds or probability that we have
represented the population well We are able to estimate confidence intervals for the
statistic With nonprobability samples we may or may not represent the population well
and it will often be hard for us to know how well weve done so In general researchers
prefer probabilistic or random sampling methods over nonprobabilistic ones and consider
them to be more accurate and rigorous
Convenience Sampling It means selecting friends relatives or other people at your
own convenience
Judgmental Sampling Means selecting people on the basis of the researcherrsquos
judgment The researcher selects people whom he thinks are suitable for giving
information
Quota sampling Here the population is divided into different groups as per age income
or any other criteria and then people are selected from each group
Snowball Sampling Here one person recommends 3-4 people and then each of these
3-4 people recommends another group of persons Thus the chain goes on
26
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
LIMITATION
1 This research there are some restriction and company secrets that canrsquot be
disclose in this project
2 Management and operations are different in every organization
3 I cannot say that what the person have revealed will be right for each and every
Situation because their perception is influenced by many factors
4 Many people showed less interest in providing information and havenrsquot
cooperated
27
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
EXPORT PROCESS
Export Procedure
Export procedure consists of several commercial and regulatory formalities which an
exporter is required to complete during the course of export trade transactions These
formalities are very complex and time-consuming and involve considerable documentation
Hence the exporters must possess adequate knowledge of such formalities At the same
time it should be ensured that the rules- and regulations Of not only exporting country but
also of importing Country are duly complied with Last but not least it should be ensured
that all the required documents whether commercial or regulatory are prepared and filed
with the appropriate authorities
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities which directly or indirectly help him in the smooth conduct of export trade
28
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
The registration stage includes
1 Registration of the Organization -
The form of organization selected by the exporter must Be registered under the
appropriate Act of The country)
1048713 A joint stock company under the Companies Act 1956
1048713 A partnership firm under the Indian Partnership Act 1932
1048713 A sale trader should seek permission from the local authorities as required
2 Opening-Bank Account -
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank of India (RBI) to deal in foreign
exchange Such bank also serves as a source of pre-shipment and post-shipment finance
for the exporter
3 Obtaining Importer Exporter Code Number (lEC No) -
Prior to 111997 it was obligatory for every exporter to obtain CNX number from the RBI
However since then IEC number issued by the Director General for Foreign Trade
(DGFT) has replaced the CNX number
4 Obtaining Permanent Account Number (PAN )-
Export income is subject to a number of exemptions and deductions under different
sections of the Income Tax Act For claiming such exemptions and deductions the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN)
29
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
5 Obtaining Sales Tax Number -
Exportable goods are exempted from sales tax provided the exporter or his firm is
registered with the Sales Tax Authorities For this purpose the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his exporters) Office is situated
6Registration with Export Promotion Council (EPC ) -
It is obligatory for every exporter to register with the appropriate Export Promotion Council
(EPC) and obtain the Registration-cum-Membership Certificate (RCMC) The benefits
provided in the current EXIM Policy are extended only to the registered exporters having
valid RCMC In groundnut commodity itrsquos required to register in Indian Oilseed and
Produce Export Promotion Council (IOPEPC)
7 Registration with ECGC -
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions
8 Registration with other Authorities -
The exporter should also register with various other authorities such as
1048713 Federation of Indian Export Organization (FIEO)
1048713 Indian Trade Promotion Organization (ITPO)
PRE- SHIPMENT STAGE
30
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Pre-shipment stage consists of the following steps
A Approaching Foreign Buyers -
In order to secure an export order a new exporter can make use of one or more of the
techniques such as advertising in International media sales promotion public relation
personal selling publicity and participation in trade fairs and exhibitions
BInquiry and Offer -
An inquiry is a request from a prospective importer about description of goods their
standard or grade size weight or quantity terms of payments etc On getting an inquiry
the exporter must process it immediately by making an offer in the form of a Performa
invoice
CConfirmation of Order -
Once the negotiations are completed and the terms and conditions are finalized the
exporter sends three copies of Performa Invoice to the importer for the confirmation of
order The importer signs these copies and sends back two copies to the exporter
DOpening Letter of Credit -
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions On finalization of the export
Contract the importer opens a letter of credit in favour of the exporter if agreed upon in
the contract
EArrangement of Pre-shipment Finance -
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components processing and packing of goods
and transfer of goods to the port of shipment
31
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
FProduction or Procurement of Goods -
On securing the pre-shipment finance from the bank the exporter either arranges for the
production of the required goods Or procures them from the domestic market as per the
specifications of the importer
G Packing and Marking -
Then the goods should be properly packed and JXl8rkedwith necessary details such as
port of shipment and destination country of origin gross and net weight etc If required
assistance can be taken from the Indian Institute of Packing (IIP) The Packing of
groundnut is in New Jute Bags of 50 25 or 20 Kgs Gross and also in plastic bags with
Vacuum packing
HPre-shipment Inspection -
If groundnuts to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the Export Inspection Agency (EIA) For
obtaining an inspection certificate
I Central Excise Clearance -
The exporters are totally exempted from the payment of central excise duty However the
exemption should be claimed in one of the following ways-
1048713 Export under Rebate
1048713 Export under bond
JObtaining Insurance Cover -
The exporter must take appropriate policies in order to insure risks -
32
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
1048713 ECGE policy in order to cover credit risks
1048713 Marine policy if the price quotation agreed upon is CIF
POST SHIPMENT STAGE
The post-shipment stage consists of the following steps-
ASubmission of Documents by the CampF Agent to the Exporter -
On the completion of the shipping procedure the CampF agent submits the documents to the
exporter
BShipment Advice to Importer -
After the shipment of goods the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment the name of the vessel the
destination etc He should also send one copy of non-negotiable bill of lading to the
importer
Presentation of Documents to Bank for Negotiation -
Submission of relevant documents to the bank and the process of getting the payment
from the bank are called Negotiation of the Documents and tile documents are called
Negotiable Set of Documents
DDispatch of Documents -
The bank -negotiates these documents to the importers bank in the manner as specified in
the LC Before negotiating documents the exporters bank scrutinizes them in order to
33
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
ensure that all formalities have been complied with and all documents are in order The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter
Acceptance of the bill of exchange -
Bill of exchange accompanied by the above documents is known as the Documentary Bill
of Exchange
Documents against Payment - In case of sight draft the drawer instruct the bank to hand
over the relevant documents to the importer only against payment
(D) Letter of Indemnity -
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity By signing the letter of indemnity the exporter undertakes
to indemnify the bank in the event of non-receipt of payment from the importer along with
accrued interests
(E) Realization of Export Proceeds -
On receiving the documentary bill of exchange the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange The exporters bank receives the payment through importers bank and is
credited to exporters account
(F) Processing of GR Form -
On receiving the export proceeds the exporters bank intimates the same to the RBI by
recording the fact on the duplicate copy of GR The RBI verifies the details in duplicate
34
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
copy of GR with the original copy of GR received from the Customs If the details are
found to be I in order then the export transaction is treated to be completed
(G) Realizations of Export Incentives -
If the exporter is eligible for export incentives then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority
DOCUMENTS
35
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
36
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
37
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
38
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
39
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
40
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
41
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
42
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
43
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
44
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
CONCLUTION
I had started my project with the Export Process of groundnut but here I am concluding the documents are use in all over the world is same but the custom and tariff freight carriage etc are different in different countries All the information I gain from professionals I was having limitation that I dint get documents I have studied the documents and procedure for export which shows the process of export in international market
45
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
INCOTERMS 2000
Inco terms stands for International Commercial Terms to provide a set of rules to interpret
the most commonly used trade terms in international trade
This set of rules defines the precise obligations of buyer and seller to reduce the possibility
of misunderstanding between the exporter and importer
The purpose of these terms is to clarify who is responsible (seller or buyer) for
1 The cost of transporting the goods from one point to the other
2 The risk of loss if the transportation cannot take place
3 The risk of loss or damage to goods in transit
In other words Inco terms 2000 aim is to set out the rights and obligations of the seller
and the buyer when it comes to transporting the goods
Each term means a different division of costs risks and responsibilities between
the seller and the buyer
61 Different types of Inco terms 2000
EXW EX WORKS
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
CIF COST INSURANCE AND FREIGHT
46
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
CPT CARRIAGE PAID TO
CIP CARRIAGE AND INSURANCE PAID TO
DAF DELIVERED AT FRONTIER
DES DELIVERED EX SHIP
DEQ DELIVERED EX QUAY
DDU DELIVERED DUTY UNPAID
DDP DELIVERED DUTY PAID
EXW
EXW EX WORKS ( named place)
Ex works means the sellers only responsibility is to make the goods available at the
sellers premises ie factory The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed The buyer bears the full costs
and risk involved in collecting the goods from there to the desired destination Ex works
represents the minimum obligation of the seller
FCA
FCA FREE CARRIER ( named place)
This term has been designed to meet the requirements of multimodal transport
such as container or roll-on roll-off traffic by trailers and ferries It is based on the
same name principle as FOB (free on board) except that the seller fulfills its
obligations when the goods are delivered to the custody of the carrier at the named
place If no precise place can be named at the time of the contract of sale the
parties should refer to the place where the carrier should take the goods into its
charge The risk of loss or damage to the goods is transferred from seller to buyer
47
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
at that time and not at the ships rail The term carrier means any person by
whom or in whose name a contract of carriage by road rail air sea or a
combination of modes has been made When a seller has been furnished a bill of
lading way bill or carriers receipt the seller duly fulfills its obligation by presenting
such a document issued by a carrier
FAS
FAS FREE ALONGSIDE SHIP ( named port of shipment)
FAS or free alongside ship requires the seller to deliver the goods alongside the
ship on the quay From that point on the buyer bears all costs and risks of loss and
damage to the goods Unlike FOB FAS requires the buyer to clear the goods
for export and pay the cost of loading the goods
FOB
FOB FREE ON BOARD ( named port of shipment)
Under FOB the goods are placed on board the ship by the seller at a port of
shipment named in the sales agreement The risk of loss of or damage to the
goods is transferred to the buyer when the goods pass the ships rail (ie off the
dock and placed on the ship) The seller pays the cost of loading the goods
CFR
CFR COST AND FREIGHT ( named port of destination)
CFR requires the seller to pay the costs and freight necessary to bring the goods to
the named destination but the risk of loss or damage to the goods as well as any
cost increases are transferred from the seller to the buyer when the goods pass
the ships rail at the port of shipment (ie off the dock and placed on the ship)
Insurance is the buyers responsibility as well as stevedore charges at the named
port of destination
CIF
48
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
CIF COST INSURANCE AND FREIGHT ( named port of destination)
CIF is CFR with the additional requirement that the seller procure transport
insurance against the risk of loss or damage to goods The seller must contract
with the insurer and pay the insurance premium Insurance is generally more
important in international shipping than domestic shipping because US laws
generally hold a common carrier to be liable for lost or damaged goods
CPT
CPT CARRIAGE PAID TO ( named place of destination)
This term means the seller pays the freight for the carriage of the goods to the
named destination The risk of loss or damage to the goods and any cost increases
transfers from the seller to the buyer when the goods have been delivered to the
custody of the first carrier and not at the ships rail Accordingly freightcarriage
paid to can be used for all modes of transportation including container or roll-on
roll-off traffic by trailers and ferries When the seller is required to furnish a bill of
lading way bill or carrier receipt the seller duly fulfills its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination
CIP
CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination)
This term is the same as freightcarriage paid to (CPT) but with the additional
requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage The seller contracts with the
insurer and pays the insurance premium
DAF
DAF DELIVERED AT FRONTIER ( named place)
49
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
Delivered at frontier means that the sellers obligations are fulfilled when the
goods have arrived at the frontier but before the customs border of the country
named in the sales contract The term is primarily used when goods are carried by
rail or truck The seller bears the full cost and risk in delivering the goods up to this
point but the buyer must arrange and pay for the goods to clear customs
DES
DES DELIVERED EX SHIP ( named port of destination)
Means the seller shall make the goods available to the buyer on board the ship at
the place named in the sales contract The seller bears the full cost and risk
involved in bringing the goods there The cost of unloading the goods and any
customs duties must be paid by the buyer
DEQ
DEQ DELIVERED EX QUAY ( named port of destination)
Means the seller has agreed to make the goods available to the buyer on the quay
or wharf at the place named in the sales contract The seller bears the full cost and
risks in delivering the goods to that point including unloading
DDU
DDU DELIVERED DUTY UNPAID ( named place of destination)
Under these terms the seller fulfills his obligation to deliver when the goods have
been available to the buyer not cleared for import at the point or place of the
named destination The seller bears all costs and risks involved in bringing the
goods to the point or place of named destination There is no obligation for import
clearance
DDP
50
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
DDP DELIVERED DUTY PAID ( named place of destination)
Represents the sellers maximum obligation The term DDP is generally followed
by words indicating the buyers premises It notes that the seller bears all risks and
all costs until the goods are delivered This term can be used irrespective of the
mode of transport If the parties wish to make clear that the seller is not responsible
for certain costs additional word should be added (for example delivered duty
paid exclusive of VAT andor taxes)
51
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-
BIBLOGRAPHY
Journal International Trade Operations
wwwiopepcorg
httpwwwtradingeconomicscomindiaexports
httpwwwagricultureinformationcom
httpwwwiopepcorgproductsphp
httpwwwapedagovinapedawebsiteSubHead_ProductsGround_Nuthtm
52
- Exports measure the amount of goods or services that domestic producers provide to foreign consumers by It is a good that is sent to another country for sale In the past export of commercial quantities of goods normally required involvement of the customs authorities in both the country of export and the country of import Exports in India increased to 1678 INR Billion in March of 2013 from 141206 INR Billion in February of 2013 Exports in India are reported by the Directorate General of Commerce Indiarsquos main exports are engineering goods (19 percent of total exports) gems and jewelry (15 percent) chemicals (13 percent) agricultural products (9 percent) Export Procedures and Documentation is designed for any person in the organisation who has to deal with export procedures and the paperwork associated with it It is ideal for those in administration sales dispatch logistics purchasing finance and managers of companies exporting for the first time
- In export Process the documents required invoice packaging list License of exporter PAN Certificate of origin Bill Of ledding sales tax number etc Customs amp Excise process the documents required are ARE -1 form Value delaration certificates etc It is obligatory for every exporter to register with the appropriate Export Promotion Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC) For Different Commodity the documents are compulsory for inspection certificates In Export of Groundnut commodity itrsquos required to register in Indian Oilseed and Produce Export Promotion Council (IOPEPC) To find out the data of export process I did an internship in SMEnterprise (CHA) for one month In internship I get to know what are the documents required for export process From my internship I get to know the steps required for export process
- AIMS AND OBJECTIVES
- Pilot Survey One of the key elements in conducting surveys and other data gathering methods is efficiency It is important to utilize money time and effort in the most efficient way possible to achieve success in performing surveys especially those that require a large number of participants To promote efficiency in conducting surveys researchers usually perform a pilot survey
-