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A

TRAINING REPORTON

IMPORT PROCEDURE

FOR THE PARTIAL FULLFILLMENTOF THE REQUIREMENT OFBACHELOR OF BUSINESS ADMINISTRATION (BBA)SESSION 2015-16

SUBMITTED BYRUBY CHAUHANB.B.A (V SEM)COLLEGE ROLL NO: 1317016UNIVERSITY ROLL NO: 0003870065

S.D COLLEGE (LAHORE), AMBALA CANTTACKNOWLEDGEMENT

It is the matter of great pleasure and privilege to be able to present this project report on export procedure and documentation. The compilation of the project is a milestone in the life of the management student and its execution is inevitable with the co-operation of the project guide. I wish to record a deep sense of respect and gratitude to my project guide, prof. Mona for her encouragement to course of my work. It is due to the enduring effort and guidance of my guide that ultimately made it success.

I also take this opportunity to express my deep regards and gratitude to the principle Mr. Rajendra Rana and would like to thank the head of BBA department. who gave us guidance to take up and pursue the project I cannot just condone the valuable opportunity give to me by the university of for compiling and submitting the project, which i feel is an opportunity to express my views about export procedure and documentation.I acknowledge my in deftness to various authors for making use of valuable information liberally. It is my proud privilege to express my deep sense of appreciation and gratitude to my parents and friends for their support and co-operation in the course of the project either directly or indirectly involved in time with their valuable contribution.

(RUBY CHAUHAN)

DECLARATION

I hereby declare that this training report on Import Procedure of Alex Edutech Exporter submitted by me is of my own and not submitted to any other institution or published any where else.

NAME.

DATE..

PLACE.

PREFACE

It is true that Experience is best teacher, in todays globalize world, where cut throat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have a practical knowledge, which would help an individual in his/her career activities. In every professional course, training is an important factor. Professor gives us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn various marketing activities being performed in the industry which would in return help me in the future when I will enter in the practical field.

CHAPTER 1INTRODUCTION

Generally, an import means bringing goods into one country from another country in a legitimate manner, typically for use in trade. Import of goods and services are provided to domestic consumers by foreign producers. Import of commercial quantities of goods normally requires involvement of the Customs authorities in both the country of import and the country of export.

As per the Customs Act, 1962, import means bringing goods into India from a place outside India. The Foreign Trade Policy regulates import of goods.For the purpose of import, goods have been divided into following categories:-

1. Prohibited Goods are not permitted to be imported at all.2. Restricted Goods can be imported against a licence or subject to certain conditions3. Canalised Goods are permitted to be imported only through State Trading Enterprises (STEs).4. Free Goods are goods which can be imported without any licence or condition.An importer has to obtain an Importer-Exporter Code (IEC) Number from the office of Director General of Foreign Trade (DGFT). The IEC number is not necessary for import from Nepal or Bhutan. The importer can either handle the clearance formalities himself or he can appoint an authorised Customs House Agent, who is licensed by Customs for such work. For the clearance of imported goods, importers are required to file a document known as Bill of Entry under Section 46 of the Customs Act. The Bill of Entry (B/E) can be filed manually, where EDI/Computer system is not in operation. In most of the Customs Houses, it is filed, assessed and generated through computers.The documents generally required to be submitted for clearance of import goods are Signed invoice, Packing list, Bill of Lading/Airway Bill, Certificate of Origin, duly filled in GATT declaration form, Licence, Authorisation, Catalogues/Technical write-up/Literature Wherever necessary, etc.Some major/reputed importers or Government Undertakings have been given the Green Channel facility, under which the goods are cleared without routine examination of the goods.

OFFICERS OF CUSTOMS :-

Classes of officers of customs: There shall be the following classes of officers of customs, namely:-

Chief Commissioner of Customs Commissioner of Customs Commissioner of Customs (Appeals) Joint Commissioner of Customs Deputy Commissioners of Customs Assistant Commissioners of Customs Such other class of officers of customs as may be appointed for the purposes of this act.

IMPORT PRICING AND INCOTERMS :-

While finalizing the terms of import contract, the importer should be fully conversant with the mode of pricing and the manner of payment for the imports.

As regards mode of pricing, the overseas supplier should quote the terms prevailing in international trade. The importer for his benefit should also know the meaning of these terms to avoid ambiguity in interpretation of the same.

International Chamber of Commerce, Paris, has given detailed definition of few standard terms popularly known as INCOTERMS and these terms have universal acceptance.

Ex- Works (EXW):- Ex-Works means that the sellers responsibility is to make the goods available to the buyer at works or factory. The full cost and risk involved in bringing the goods from this place to the desired destination will be born by the buyer. This term thus represents the minimum obligation for the seller. It is mostly used for sale of plantation commodities such as tea, coffee and cocoa.

Free Carrier (FCA):- Free Carrier means the sellers obligations are fulfilled when the goods are delivered to the carrier named by the buyer at the named place. The term may be used for all modes of transport including multi- modal transport.

Free Alongside Ship (FAS):- Once the goods have been placed alongside the ship, the sellers obligations are fulfilled and the buyer notified. The buyer has to contract with the sea carrier for the carriage of the goods to the destination and ay the freight. The buyer has to bear all costs and risks of loss or damage to the goods hereafter.

Free on Board (FOB):- The sellers responsibility ends the moment the contracted goods pass the ships rail at the port of shipment named in the sales contract. This means that the buyer has to bear all costs and risk of loss of or damage to the goods from that point. The seller is required to clear the goods for export.

Cost and freight (CFR) :- Cost and Freight means that the seller delivers, when the goods pass the ships, rail in the port of shipment. The seller must on his own risk contract for the carriage of the goods to the port of destination named in the sale contract and pay the freight. This being a shipment contract, the point of delivery is fixed to the ships rail and the risk of loss or of damage to the goods is transferred from the seller to the buyer at that very point. As will be seen though the seller bears the cost of carriage to the named destination, the risk is already transferred to the buyer at the port of shipment itself.

Cost Insurance Freight (CIF) :- The term is basically the same as CFR, but with the addition that the seller has to obtain insurance at his cost against the risks of loss or damage to the goods during the carriage.

Carriage Paid to (CPT) :- CPT means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. The buyer bears all risks and any other costs after the point of delivery. The seller is required to clear the goods for export.

Carriage and Insurance Paid to (CIP) :- CIP is the same as CPT, with the addition that the seller is also required to procure insurance against the buyers risk of loss of or damage to the goods during the carriage.

Delivered at Frontier (DAF):- The term is used when the goods are to be carried by rail or road. The sellers obligations are fulfilled when the goods have arrived at the frontier, but before the Custom Border of the country named in the sales contract

Delivered Ex-Ship (DES):-. This is an arrival contract and means that the seller makes the goods available to the buyer in the ship at the name port of destination as per sales contract. The seller has to bear the full cost and risk involved in bringing the goods there. The sellers obligations fulfilled before the Custom border of the foreign country and it is for the buyer to obtain necessary import licence at his own risk and expense.

Delivered Ex-Quay (DEQ):- Ex-Quay means that the seller makes the goods available to the buyer at a named quay. As in the term Ex-Ship the points of division of costs and risks coincide, but they have now been moved one step further from the ship into the quay or wharf i.e. after crossing the customs border at destination. Therefore, in addition to arranging for carriage and paying freight and insurance the seller has to bear the cost of discharging the goods on the quay. The buyer is required to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import.

Delivered Duty unpaid (DDU):- DDU means that the seller delivers the goods to the buyers at the port of destination. The seller has to bear the costs and risks involved in bringing the goods thereto. The buyer has get the goods unloaded and cleared for import, by paying the applicable duty.

Delivered Duty Paid (DDP):- This term may be used irrespective of the type of transport involved an denotes the sellers maximum obligations as opposed to Ex-Works. The seller has not fulfilled his obligation till such time that the goods are mad available at his risk and cost to the buyer at his premises or any other named destination. In the latter case necessary documents (e.g, transport documents or Warehouse Warrant )will have to be made available to the buyer to enable to take delivery of the goods.

BILL OF LADING AND TYPES:-Bill of lading is a document issued by the shipping company for shipment of goods. It is a contract between the shipper & shipping company for carriage of goods in good condition from port of origin to port of destination.

It is a document required by consignee (Importer) to clear the goods at the port of destination. Shipping company also issue non-negotiable i.e.(Unsign) copies which are not document title to the goods but are normally use for record purpose.

Legal Importance:-It helps the shipping co to collect the freight from the shipper or the importer. It acts as a safeguard in the interest of shipping co. against wrong trends & disputes in court of law by the exporter / Importer.

If the goods have been damage prior to loading of goods on ship such things, will be reflected in bill of lading.

Functions of Bill of Lading:- It is the trial receipt for the goods received ( On the Board ) if ship. It confirm that goods are transferred in the ship. It is negotiable document to the bank. It is a document of exporter title. It is an evidence of contract between shipping company and exporter / Importer.

CHAPTER 2COMPANY PROFILE

WELCOME TO ALEX EDUTECH EXPORTER Established in 1980. We Alex Edutech Exporter and ISO 9001, 14001 and 18001 certified company. We Alex Edutech Exporter take pleasure to introduce ourselves as one of the leading Manufacturer, Supplier and Exporter of Educational Products, Medical Products, Healthcare Products, Hospital, Agriculture, Food processing, Engineering & Electrical, Industrial products and supplies, Construction materials and equipments , chemicals & reagents for Laboratory , Industrial and research, Automobiles, Solar, I. C. Engine test rig and Turbines, Engineering training and Microscope equipments. The company specializes to customized products development. Bulk quantity supply strictly as per schedule deadlines such as MOE, MOH, IDA funded projects. In fact the company has many global projects and tenders of World Bank ADB, UN, UNDB, UNICEF, UNESCO, WHO etc., to its credits, which were spread over different countries in the World. We are supplying quality equipments like Petroleum testing equipments, Oil Testing equipments and various scientific lab equipments. We are completely dedicated towards the export, which is spread all over the globe, with the major chunks of the export to USA, Middle East, Europe (France, UK, Turkey Spain, Germany, Portugal etc. ), Africa ( Nigeria, Ghana, Zambia, Kenya, etc, ), Asia ( Malaysia, Philippines, Vietnam, Etc. ) to name a few. Alex Edutech Exporter - 95,000 varieties of latest testing Industrial, engineering, scientific, laboratory and educational equipments & Instruments. We have experience in these industries since 1972 managed for 3 generation. Alex Edutech Exporter is history of growth and development with a number of notable milestones. Alex Edutech Exporter is biggest manufacturer of Electronic Training Kits, Higher Science Educational Instruments, Physics, Chemistry, Biology, Lab ware, Laboratory Glassware/Plastic ware, Microscope, Electronic Instruments, electrical Instruments, Mechanics Instruments, Vocational and Training educational Instruments, Civil and Survey engineering Instruments, Laboratory Chemicals and Reagents, Biotechnology Engineering, Polytechnic and Educational instruments for School, Colleges and Universities. Our prime targets our equipments for educational lab, pharmaceuticals lab, medical lab, Universities lab. We fellow a methodical approach for efficiently serving our clients with flawless, durable and dimensionally accurate products. In addition, our clients place their trust in our ability to customized and deliver bulk orders within a committed time frame. Owing to our market credibility, financial stability and material and human resources we have been successful in grabbing some valuable international tender. In addition responsive communication and easy banking facilities employed by us, have position our organization futuristic establishment in India, USA, Mexico, Germany Australia, New Zealand , Panama, France, Italy, Egypt, U. A. E. , Saudi Arabia, Taiwan etc. We are looking for global inquiry.

PRODUCT PORTFOLIO

We specialize in manufacturing a wide assortment of lab apparatus, lab glassware and scientific instruments. These products are precisely engineered using modern production techniques and sophisticated machinery. To make our laboratory equipment light in weight yet sturdy in construction, we use borosilicate glass and laboratory plastic ware to fabricate these products. The microscopes and lab instruments are specifically manufactured as per international standards to produce precise measurements. Our instruments and anatomical models find extensive usage in chemistry lab, physics lab, biology labs, electronic labs and hospital/ medical labs. Among our range, we also offer accurately developed laboratory physical balances and laboratory chemicals. Available in standard specifications, these products can also be customized as per the requirements of our clients.ThanksWith RegardsAaditya

Our laboratory glassware and scientific instruments have been acknowledged for the following features: Light in weight Heat resistant Dimensionally accurate Compact designs Can withstand temperature and pressure fluctuations

Alex Edutech Exporter has successfully carved a niche in the global lab instrumentation market since its establishment in the year 1980. Standing on the edifice of quality and manufacturing expertise, we have become a renowned name engaged in manufacturing and exporting quality tested and reliable lab glassware, lab apparatus and scientific instruments. Our assortment of lab apparatus includes Hospital Equipment, Laboratory Balances, Laboratory Glassware, Physics Lab Apparatus, Laboratory Chemicals, Physics Lab Equipment and Laboratory Research Equipment. Further, we also supply Science Lab Apparatus, Biology Equipment, Pharmacy Lab Equipment, Electronic Equipment, Laboratory Wares and Microscopes to the global market. These precisely engineered products are fabricated using resilient & light weight material and sophisticated machinery as per international quality standards. Also, we have been accredited with ISO 9001, 14001 and 18001 certification and are listed as an international FDA (CDRH) site establishment.We follow a methodical approach for efficiently serving our clients with flawless, durable and dimensionally accurate products. In addition, our clients have placed their trust in our ability to customize and deliver bulk orders within a committed time frame. Owing to our market credibility, financial stability and material & human resources, we have been successful in grabbing some valuable international tenders. In addition, responsive communications and easy banking facilities employed by us, have position our organization as a futuristic establishment in India, USA, Mexico, Germany, Australia, New Zealand, Panama, France, Philippines, Egypt, U.A.E., Saudi Arabia and Taiwan etc.Our organization has positioned itself strategically and promises to grow further under the able guidance of our mentor Mr. Chander Mohan Kapila His knowledge and understanding of the market dynamics has helped the organization gain its present stature in the global market and muster a loyal clientele.We are looking for foreign buyers for all our products.Please find the attached company profile.ThanksWith RegardsChander Mohan Kapila

We are Manufacturer and exporter quality tested and reliable Laboratory Equipments, scientific instruments, Medical and Hospital equipments educational equipments for physics, chemistry and Biology chemicals for Lab research and for educational purpose, engineering instruments etc.

Please send your requirement or inquiry on our email id: [email protected]

ThanksWith RegardsAlex Edutech Exporter# 4, Defence Colony, Sector - BNear Govt. High School, Ambala, HaryanaPin Code - 133 001, India.Mobile +91 89011 44444Phone No. +91 171 2671100Email Id:[email protected]:alexedutech.comSkype: punit.kapilaGoogle talk - [email protected]

PRODUCTS DETAILS

Alex Edutech exporter is one of the leading science instruments manufacturers and exporters of science equipments, laboratory equipments, scientific products, scientific lab instruments like autoclave, incubators and ovens, laminar air flow, moisture meters, water distillation plants, laboratory balances, water bath, centrifuge, cooling equipments, water testing equipments, laboratory shaking machine, microtome, microscope, measuring instruments and laboratory instruments.TheseScientific and Laboratory Equipmentscan be used in general laboratory, sterilizing / clean room, microbiology / biotechnology, pathology, entomology, pharmaceuticals, seed and soil testing, water testing, meteorology food processing, customized instruments.

Laboratory Glasswarelike beakers, burettes, condensers, cylinders, culture tube, flasks conical, flasks round bottom, flasks flat bottom, flasks volumetric, funnels, petri dish, pipettes, measuring cylinder, kipps apparatus, funnels,volumetric flask, spirit lamp, beaker, burettes, pipettes, joints, test tube, crucible, power supply, battery eliminator, water bath, soxhlet apparatus, ammeter, voltmeter, incubator, oven, muffle furnace, magnets, burners, boss head, retort stand, stop clock, prism, lens, mirrors, magnifiers, tripod stand, spatula, water tap, gas tap, crucible tong, distillation apparatus, separating funnel, desiccators, gas jar.Physics Instrumentslike induction coils, microtome spencer type, tangent galvanometer, conductivity apparatus, physical balance, weight boxes and accessories, optical bench, optics, heat lab equipment, sound laboratory equipment, mechanics laboratory instruments, magnetism, electricity, electronics, electrostaticsChemistry lab instrumentslike lab balance, chemistry lab bottles, laboratory brushes, chemistry lab burner, laboratory bunsen and corks, Hoffmans voltameter, pipette test tube, tripod stand, laboratory pumps, flame test apparatus, bell jars, tubing, balances & weights, laboratory brushes, laboratory burners, laboratory spatula, electro chemistry instruments, laboratory tongs.Biology instruments manufacturerlike dissecting equipment, biology magnifiers, environmental science instruments, educational models, microbiology instruments, projectors, educational charts, plant physiology equipment, slide rack, microtomes, baths and staining, slide cabinets.If required we can send you our company Printed materials (CATALOGUES etc). Please provide us your Address and all contract numbers.We are to request you to please compare our services by favoring us your fresh list of requirements.I can assure you of our best supplies with competitive prices

CHAPTER-3

OBJECTIVE OF STUDY

To know about Importt Processes To understand the working of various departments of ALEX EDUTECH contributing towards processing of an import order To know what are that documents required before and after sailing the cargo. To know different type of container used in shipment To study the Import Documentation in ALEX EDUTECH Pre Shipment procedure. Post Shipment procedure

IMPORT PROCEDURE

Inquiry (By Importer)

Information as per Inquiry / Quotation (By Exporter)

Conformation / Purchase Order ( By Importer)

Exporter prepares documents and send Bill of Lading Through bank to the Importer

Importer makes payment to the Exporter through Bank

Delivery Order & Documents is obtained by the Bank Or the agent of the Exporter

Importer handover the documents to CHA

On the basis of documents CHA files the, same for obtaining the Bill of Lading

Meanwhile goods reach to the port of destination

Bill of Entry No. is received from the Custom House

Documents is forwarded to the appraising unit

Documents are forwarded to auditing department By the auditor

Documents is forwarded to Deputy Commissioner for final Assessment

TR6 Challan has to be collected

Goods to be produced for the Examination along with the Duty paid Challan

Out of charges has to be taken from the docks

N-Form is obtained if goods are to be take out without paying octroiIf not, then octroi is to be paid And paid CFS Charges / Warehouse charges

Relevant documents shown to preventive officer & The Cargo is taken out

CUSTOM CLEARANCE PROCEDURE IN GENERALAs soon s the importers receive the advice of arrival of the vessel, he is required to present a document known as Bill of Entry in terms of section 46 of the Customs Act, either for Home Consumption or for warehousing the goods.The Bill of Entry is noted in Import Department. The date of noting is indicated on the Bill of Entry under corresponding endorsement made against the consignment entry in the IGM. The date of noting is an important date, for the reason that the rate for duty applicable to the goods imported would be that which is in force on the date of noting. In case of warehoused goods, the rate of Custom duty applicable would be that in force on the date of payment of Custom duty.Under the Second Check Clearance procedure,, The bill of Entry will be presented in the Appraising Department at Custom House, with the relevant documents like Invoice, Bill of Landing, Import licence, catalogue / Literature & other relevant documents. Where the documents produced are adequate for determining the classification, value & rate of Custom Duty, the Bill of Entry is then Passed by the concerned Appraiser and the Assistant Commissioner countersigns the same.The passed Bill of Entry is then forwarded to the license Department for licensing debit and audit and then returned back to the importers for payments of duty in the Accounts / Cash department. After recovery of duty the original Bill of Entry is retained in the Accounts Department and the duplicate and other copies returned to the importers for getting the goods examined in the docks.In the docks, Shed Appraiser / Examiner the goods and if is in order then will give the out of charge for taking delivery form the custodian of the goods viz. Port Trust, after payment of the Port Trust charges. This procedure under which 80 to 90% of the consignments are being cleared is known as the Second Check Procedure.Under the First Check Clearance Procedure, the concerned Custom Appraiser at Custom Hose prior to passing of the Bill of Entry gives the order to the port Supervisor to examine the imported goods. The goods are then remarks on examination of goods to the Appraiser for passing & charging the appropriate custom duty on the goods imported. In this case the customs gives out of Charge only after payment of Custom duty by the importer.No person shall, except with the permission of the proper officer of Custom, is allowed to open any package of goods imported into India and lying in a Custom Area. The Examination of cargo for assessment purposes is chiefly the function of the Appraising Department or their representative posted at the docks / Air cargo shed.The importer pays charges to freight forwarder for this work of documentation, destuffing, and freight charges and stamp duty to shipping line and collect the final delivery order.

Bill of Entry:- Section 46 of the Custom Act 1962:-The bill of entry is the document on the strength of which clearance of imported goods can be done. The form of the bill of entry has been standardized by the Central Board of Excise and Custom. As soon s the importer receives the advice of arrival of the vessel the importer are required to present a document known as Bill of Entry, either for Home Consumption or for warehousing the goods. The Bill of Entry is noted in the Import Department.The Bill of Entry should be type written.Types of Bill of Entry:- Goods Entered for Home Consumption are cleared on White Bill of Entry (Form No.22) Goods entered for warehousing are removed into bond on Yellow colour In-Bond Bill of Entry. (Firm No.23) Goods cleared Ex-Bond for Home Consumption on payment of duty on Green Colour Ex-Bond Bill of Entry. (FormNo.24)

For preparing the Bill of Entry the documents that are required are as follows:-

Bill of Entry for Home Consumption in the prescribed firm duly filled. Invoice Packing list Bill of Lading / Airway Bill Insurance Freight Bill (In Case Invoice shows F.O.B value) Do (Delivery order) Purchase order Certificate of origin License copy, Bond certificate (If Required) IEC Copy Declaration in the prescribed format signed by the importer regarding the correctness of the contents and the value of the goods in connection with the relevant documents. The Appraiser of Customs may call for any other information / documents if found necessary, to determine the exact value and exact rate of duty(Section 46 Custom Act, 1962 CHA Declaration.

PROCEDURE FOR THE CLEARANCE OF IMPORTED GOODS:-Procedure to clear imported goods for home Consumption:-A Bill of Entry for home consumption in quadruplicate duly filled and signed by the importer / CHA and the same to be filed in the import department of customs. The noting clerk in the import department assigns a serial number and affixes the date stamp and initials on the bill of entry after verifying the details with reference to the import general manifest. Than the Bill of Entry is forwarded to the Appraiser/ Superintendent for Assessment. After verifying the documents and bill of entry the appraiser may assess the Bill of Entry under any one of the two different systems called as First Appraisement Second appraisement depending upon the circumstances. The Assistant Commissioner of Customs countersigns on the Bill of Entry. After examination of the goods and on payment of duty the goods are cleared out of Customs charge for home Consumption.Procedure followed under first appraisement / Original open order:- The Bill of entry is forwarded to the appraiser / Superintendent after noting is done by the import department if the appraiser for assessment feels that the goods should be subjected for examination in the first stage itself to decide the weight measurement / country of origin / correctness of value / marks and numbers / classification of the goods under the Customs and Central Excise Tariffs, he passes an examination order on the reverse of original copy of the bill of entry. This is called original open order / first appraisement subsequently the bill of entry with the original open order is presented to the A.C.(Dock) for examination of the goods Examination is carried out and a report is written by the proper officer as per the direction specified in the original open order.Then the bill of entry is forwarded to the assessing officer who verifies the examination report with reference to he relevant documents and bill of entry. After verifying the correctness of value and classification of goods the assessing officer writes the rate of basic custom duty. Additional duty etc, to be leviable by customs and signs the bill of entry. Than the Assistant Commissioner places his counter signature on the bill of entry. The value / quantity or both of the bill of entry is debited in the import license / customs clearance permit wherever required. The comptist / computer operator pinpoints the amount of duty on the bill of entry. The internal audit department pre-audits the bill of entry.

The amount of duty shall be paid by the importer / CHA in the customs treasury / authorize bank. The original copy of the bill of entry is detached in the custom treasury. Clearance of goods for home consumption are permitted by the proper officer of customs with his signature and stamp on the revere of the duplicate copy of the bill of entry. This order is called as passed out of custom charge The importer / CHA presents the duplicate bill of entry to the custodian (Port / Airport / ICD ) who releases the goods after collection necessary dues.

Procedure followed under second appraisement / Duplicate open order:-The bill of entry is forwarded to the appraiser / superintendent after noting is done by the import department. If the appraiser for assessment feels that all the documents / information are available to determine the correctness of value and classification under the Tariff, the assessing officer makes assessment in the first stage itself and passes an examination order on the reverse of the duplicate copy of the bill of entry. This may be called as second appraisement duplicate open order. Than the Assistant Commissioner place his counter signature on the bill of entry. The value quantity or both of the bill of entry is debited in the import license / customs clearance permit wherever required. The comptist / computer operator pinpoints the amount of duty on the bill on entry. The internal audit department pre-audits the bill of entry. The amount of duty shall be paid by the importer / CHA in the custom treasury / authorized bank.

The original copy of bill of entry is detached in the customs treasury, and the remaining copies are returned to the importer / CHA. Subsequently the bill of entry with the duplicate open order and other documents are presented to the proper officer for examination. Examination is carried out and a report is written by the proper officer as per the directions specified in the duplicate open order. If the examination officer satisfies that the goods so imported are in par with the declaration in the documents, he gives and order permitting clearance of goods for home consumption on the reverse of the duplicate copy of the bill of entry. This order is called as passed out of customs charges.

Procedure followed Examination of import cargo at Dock:- Once Bill of Entry final assessment paid duty custom appointed Authorized bank. Made shipping line payment and collect final Do, without Bill of entry and TR6 challan Shipping line unable to issue the Delivery order. Paid stamp duty Get cargo / container receiving from CFS on bill of entry back side. Check container no and seal number as per shipping documents Do the Bill of Entry registration from custom officer in custom system(Before Bill of Entry registration Custom officer check all document like B/L, Invoice, packing list, TR6 challan, certificate of origin, Importer declaration along with Signature, CHA declaration. Than after get seal cutting form CFS authority. Check import cargo as per the invoice and packing list and tally with Bill of entry before present to custom officer. Custom officer do the examination as per declared in Bill of Entry Custom officer fill the examination report in custom system and than after issue out of charge. After out of charge made the CFS payment, and get allow for empty vehicles for container / cargo loading purpose. Submit the Original Delivery order, CFS payment duplicate copy, Bill of entry Xerox copy, Original Custodian out of charge copy to CFS and get Gate Pass from CFS. Done the Container / Cargo survey from surveyor, which is appointed by shipping line. Present the Gate pass and Original Gate Copy of out of charge to Custom Preventive officer. Original Gate copy of out of charge surrender to custom Preventive officer and get allow to move the container / Cargo from CFS.

After out of charge getting below bill of entry copies:- Original Duplicate Bill of Entry :- Consignee purpose Original Triplicate Bill of Entry :- Consignee purpose Custom Copy :- Handover original copy along with import documents to custom at Dock. Custodian copy :- Handover original copy along with Do, CFS Charges copy, Bill of Entry, B/L. Gate Copy:- Handover original Gate copy to Custom Preventive officer at CFS Gate. IMPORT DUTIES:- The following are the Import duties, which are presently levied on import goods.1. Basic Import Duty:- Which is specified against each Heading or Sub- heading in the first Schedule to the CTA. This is popularly called Basic Customs Duty. There are different rates of duty for different commodities. There are also different rates of duty for goods imported from certain countries in terms of bilateral or other agreements with such countries, which are called preferential rates of duties. The duty may be a percentage f the value of the goods (when it is called ad valoerm duty) or at a specific rate

2. Additional duty:- This duty is collected by customs on the landed cost (Value + Custom duty) of the imported goods at the rate equal to ventral excise duty in order to protect / safe guard the indigenous / local industries. The authority for collection of this duty is section 3 of customs Tariff Act 1975. This duty is also called C.V.Duty (Counterveling duty).3. Special Additional Duty:- 4%

4. Anti Dumping duty:- On specified goods imported from specified countries to protect indigenous industry from injury resulting from dumping of goods.

DUTY STRUCTURE:-

Full duty Structure :-

Cumalative Total Duty Amount Calculations

On the Basis -Basic Customs Duty 10% with Revised CVD 8% wef 24.02.09

S NoCodeParticularsAmount

1ACustoms Assessable Value (CIF +Landing Charges)-CAV100

2BBCD -Basic Custom Duty10.000

3CCVD 8% on BCD+CAV8.800

4DEducation Cess duty on CVD -2%0.176

5ESecondary & Hr Edu Cess 1% (Excise)0.088

6FEducation Cess 2% on B+C+D+E0.381

7GSecondary & Hr Edu Cess 1% (Customs)0.191

8HAs per Customs Notification 19/2006, Addl Duty 4% on A+B+C+D+E+F+G4.785

TOTAL 24.421

HOW TO CALCULATE IMPORT DUTY:-For Example:- Invoice CIF Value :493.50 Euro 1% Landing Charges on CIF 1% SVB Loading On CIF Unit price = 14.10 Duty Rate = 10%, 8%, 2%, 1%, 2%, 1%, 4%,Calculation of duty :-Assessable value=Unit 37 kgs x 14.10 unit price x 1% (Landing charges) x 1% (SVB Loading if applicable) x 71.80 (Exchange Rate). = 36141.966A. Basic Duty 10% AV:-3614.19 INRB. CVD 8% on (AV + Basic Duty):-3180.49INRC. Education Cess 2% on CVD:- 63.61INRD. Secondary Customs Education Cess on1% on CVD:- 31.80 INRE. Custom Education Cess 2% on (A+B+C+D):-137.80 INRF. Secondary Customs Education Cess 1% on(A+B+C+D):- 68.90 INRG. Additional Duty (Import) 4% on (AV + A+B+C+D+F):- 1729.55 INR===========Total Duty:- 8826.34 INR

Short cut to duty calculation: - Duty = Assessable value x 1% landing charges x 1 % SVB loading x Exchange Rate x duty rateDuty =493.50Euro x1% x 1% x 71.80 x 24.421%Duty = 503.37 x 71.80 x 24.421%Duty = 8826.34 INR

BILL OF ENTRY FOR BOND / WAREHOUSING:-Import goods may be stored in a warehouse under section 49 or goods may be Bonded in a warehouse under section 59 of the Custom Act, 1962. Warehoused means a public warehouse appointed under section 57 or Private warehouse licenced under section 58 of the Custom Act, 1962. Warehouse goods means goods deposited in a warehouse. Warehousing station mention a place declared as a warehousing station under section 9. The goods may remain in the warehouse for a period of one year from the date of passing order by the proper officer of customs. The period of one year may however, be reduced by the Commissioner of Custom if the goods likely to deteriorate. The period of one year may be extended by the Commissioner of Custom / Chief Commissioner / the Central Board of Excise and Custom if the goods are not likely to deteriorate and on sufficient cause being shown for such extension. The importer, however has to pay interest on the amount of appropriate duty payable at the time of clearance of the goods for home consumption from the warehouse for the extended period, i.e. from the date of expiry of the initial period till the date of actual removal of the goods from the warehouse.There are two type of warehouse. Public Warehouse Privet WarehousePublic Warehouse: - Under section 57 At any warehousing station the Assistant Commissioner of Customs may appoint public warehouses. Where in dutiable goods may be deposited without payment of duty. Any imported dutiable goods may be deposited in a Public Warehouse. For this purpose the importer has to execute a double duty bond which means twice the amount of duty payable on such goods deposited in the warehouse. For warehousing the goods there is a Into-Bond Bill of Bill of yellowcolour to be filed long with a double duty bond as stated above together with documents such as invoice, bill of lading / Air way bill, freight and insurance certificate, contract, L/C, import licence etc. and importers declaration related to correctness of value and contents in the consignment and other documents if any to be filed in Custom house. The same procedure to be followed as in the case of Bill of Entry for home consumption. After assessment is done, the proper officer examines the goods and issues an order permitting to deposit the goods in the warehouse without payment of duty.

INLAND CONTAINER DEPOT:-

Inland container depot have been set up in many major cities where there is no sea port facility. The objective of I.C.Ds is to cater the needs of surrounding importers and exporters of the respective city. The I.C.Ds possess ware housing facility to station various types of containers for stuffing of export cargo and de-stuffing of import cargo in the presence of custom officials for examination, assessment, clearance etc. Most of the I.C.Ds are located near the railway stations for rapid movement connecting to adjacent port. Due to global liberalization, containerization of cargo has become a must to achieve the full benefits. Hence the container should move from the exporters factory premises to the importers factory premises or vice versa or in close proximity to import industrial stations, so that the importer / exporter can save time and expenditure and also ensure safety of the goods. To begin with the Government of India appointed suitable industrial stations as Inland Container Depots for unloading of imported goods and loading of export goods by issuing notification under section 7AA of the Custom Act 1962. Correspondingly, the Commissioner of Customs having jurisdiction over the place approves places in the I.C.D for loading and unloading of goods and the limits of customs area where the custom officers and staff shall function by issuing a notification under section 8 of custom act 1962. Transhipment of containerized cargo from the ports to destination to I.C.D is done by the steamer agents after customs permission. No extra duty is charged on the freight from harbour to I.C.D. Steamer agents are liable to pay fine equal to duty on short landing / Pilferage/ Damage under section 116 of Custom Act 1962 to ensure safety avoid demurrage and to relieve congestion. The Container Corporation of India generally arrange container movements either by rail or road. If the importer intends to import the goods at a particular ICD he should inform well in advance to his foreign supplier so that the containers are manifested to the particular ICD . When such containers are landed in a sea port the steamer agent arranges through Container Corporation of India or any other authorized agency to transport to that particular ICD. The ICD receives the containers and shifts to CFS to enable the importer to file the bill of entry and other documents as they do in the case of clearance through Sea ports or Airport .

Chapter 5Findings This study found a higher number of documents involved in the process. This study also found the costs to be marginally lower than those reported long term relationships with the buyers/sellers, which results in time and cost savings. Furthermore, the use of freight forwarders and customs brokers, who are very familiar with the various processes and customs officials, reduces the time required to complete the import and export processes.

Chapter 6LimitationLIMITATIONS OF THE STUDY Not exact tool for forecasting Erroneous findingsLimitation of time Narrow conception of marketing research In experience research staff Not an exact science

Chapter 7ConclusionThe objective of the current study was to examine, in detail, the processes involved in the import of goods. By employing the Business Process Analysis (BPA) methodology, this study was able to trace all the steps and procedures involved in the import processes and consider the time and cost involved in each step.

A BPA is carried out using a case study approach, which allows for an in-depth analysis of the process and challenges faced by firms behind the border. In this way, the researcher is able to follow goods and documents from one stakeholder to another, i.e. from the warehouse of the exporter to the warehouse of the exporter. On completion of he mapping of the trade process, one is then able to identify areas where bottlenecks and duplication occur and propose possible solutions

Chapter 8ReferenceBooks 1. Balagopal T.A.S, Export Management, Himalaya Publishing House, nineteenth edition 2010 2. Jeevanandam.C., Foreign Exchange- practice, concepts and control, Sultan Chand and Sons, tenth edition 2007 4. Mahajan M.I., A guide on export policy, procedure and documentation, Tata McGraw hill publishing company ltd, Third Edition 2005 5. Dr.Varma.M.M. & Aggarwal R.K, Foreign Trade Management, King Book, second editionWebsite:http://www.alexedu.comhttp://www.singmascientfic.comhttp://www.alexwikipedia.com