export doc. process of ground nut

68
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 I hereby declare that any internet source, published or unpublished work from which I have quoted or drawn reference have been referenced fully in text and in the content list.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

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Page 1: Export doc. process of ground nut

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I hereby declare that any internet source published or unpublished work from which I have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
Page 2: Export doc. process of ground nut

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
Page 3: Export doc. process of ground nut

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
Page 4: Export doc. process of ground nut

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
Page 5: Export doc. process of ground nut

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
Page 6: Export doc. process of ground nut

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
Page 7: Export doc. process of ground nut

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
Page 8: Export doc. process of ground nut

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
Page 9: Export doc. process of ground nut

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
Page 10: Export doc. process of ground nut

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
Page 11: Export doc. process of ground nut

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
Page 12: Export doc. process of ground nut

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
Page 13: Export doc. process of ground nut

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
Page 14: Export doc. process of ground nut

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
Page 15: Export doc. process of ground nut

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
Page 16: Export doc. process of ground nut

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
Page 17: Export doc. process of ground nut

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
Page 18: Export doc. process of ground nut

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
Page 19: Export doc. process of ground nut

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
Page 20: Export doc. process of ground nut

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
Page 21: Export doc. process of ground nut

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
Page 22: Export doc. process of ground nut

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
Page 23: Export doc. process of ground nut

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
Page 24: Export doc. process of ground nut

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
Page 25: Export doc. process of ground nut

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
Page 26: Export doc. process of ground nut

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
Page 27: Export doc. process of ground nut

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
Page 28: Export doc. process of ground nut

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
Page 29: Export doc. process of ground nut

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
Page 30: Export doc. process of ground nut

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
Page 31: Export doc. process of ground nut

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
Page 32: Export doc. process of ground nut

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
Page 33: Export doc. process of ground nut

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
Page 34: Export doc. process of ground nut

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
Page 35: Export doc. process of ground nut

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
Page 36: Export doc. process of ground nut

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
Page 37: Export doc. process of ground nut

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
Page 38: Export doc. process of ground nut

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
Page 39: Export doc. process of ground nut

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
Page 40: Export doc. process of ground nut

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
Page 41: Export doc. process of ground nut

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
Page 42: Export doc. process of ground nut

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
Page 43: Export doc. process of ground nut

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
Page 44: Export doc. process of ground nut

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
Page 45: Export doc. process of ground nut

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
Page 46: Export doc. process of ground nut

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
Page 47: Export doc. process of ground nut

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
Page 48: Export doc. process of ground nut

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
Page 49: Export doc. process of ground nut

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
Page 50: Export doc. process of ground nut

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
Page 51: Export doc. process of ground nut

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
Page 52: Export doc. process of ground nut

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