shyam project
TRANSCRIPT
A STUDY ON
“EXPORT PROCEDURE AND DOCUMENTATION”
With reference to
KAKINADA SEA PORTS LIMITED. KAKINADA
A Project Report submitted in partial fulfillment of the requirement for the award of the degree of
5 Year Integrated MASTER OF BUSINESS ADMINISTRATION
Department Of INTERNATIONAL BUSINESS STUDIES
ACHARYA NAGARJUNA UNIVERSITY
(A recognized institute and given B++ rank by NACC)
SUBMITTED BY
K.VENKATA SHYAM BABU(Roll No: Y12IB20045)
UNDER THE GUIDANCE OF
Dr. R. SIVA RAM PRASAD M.B.A.,M.COM,M.C.A.,P.G.D.C.A., B.L.,PH.D
Declaration
I K.VENKATA SHYAM BABU hereby declare that the project report entitled “A Study on
export procedure & documentation in KAKINADA SEA PORTS LIMITED. KAKINADA prepared based
on the information collected during 30TH OCT 2013 TO 29TH NOV 2013for partial fulfillment of the award of
INTEGRATED M.B.A(International business studies). III/I SEMESTER, Acharya Nagarjuna
University, Nagarjuna Nagar.
It is an original work done by me and to the best of my knowledge and belief, it has not
been published earlier elsewhere or presented to any University or Institution for award of any degree,
diploma or
other similar title.
DATE:
PLACE:
(K.VENKATA SHYAM BABU)
CERTIFICATE
This is to certify that the project Report titled “A Study on export procedure & documentation
in KAKINADA SEA PORTS LIMITED. KAKINADA” is an original work carried out by K.VENKATA SHYAM BABU (Enrollment No Y12IB20045), under my guidance and supervision,
in partial fulfillment for the award of the degree of 5 Year integrated M.B.A to the department of
international Business, Acharya Nagarjuna University, Nagarjuna Nagar, Guntur during the Academic year
2011-16. This report has not been submitted to any other University or Institution for the award
of any Degree/Diploma/Certificate.
SIGNATURE OF THE GUIDE
Name and Address of the Guide:
Name of Guide:
Designation:
ACKNOWLEDGEMENT
I wish to acknowledge my sincere gratitude to all persons who whole-heartedly contributed
their sincere support that helped me for the successful completion of my project work.
I take much pleasure to express my deep sense of gratitude and thankfulness to the
Department of International Business, Acharya Nagarjuna University, and Guntur.
It is indeed my great pleasure to profoundly thank to my project guide
Dr. R. SIVA RAM PRASAD, for his valuable and sincere guidance throughout my Project.
I am duty-bound to sincerely thank SRI.M.MURALI KRISHNA, GENERAL MANAGER
(BUSINESS DEVELOPMENT & LOGISTICS) for his valuable guidance and support for the
successful completion of the project, and also thank to all the employees of “KAKINADA
SEA PORTS LIMITED. KAKINADA”, for their valuable co-operation, co-ordination and
assistance in my project work. K.VENKATA SHYAM BABU
CONTENTS
Chapter -1 Introduction
1.1- Need for exports & imports1.2- Export incentives.1.3- International business.1.4- International marketing.
Chapter – 2 2.1 Objectives. 2.2 scope 2.3 Research methodology 2.4 Limitations 2.5 sampling
Chapter- 3 Profile of sea port industry Chapter -4 Company profile Chapter – 5 Export procedure documentation and procedures and its analysis
Chapter – 6 INCOTERMS Chapter - 7 Suggestions and conclusion Chapter -8 . Bibliography
1. INTRODUCTION
INTRODUCTION
Imports and Exports of goods dominate the interdependence of countries in the world economy.
Exports are the part of a country’s domestic production that is sold to residents of other countries. Imports
are the part of a country’s domestic consumption and/or investment that is purchased from foreign
producers.
An export and import is very much necessary for a country. Because if a country had no import or
export, they wouldn't be able support themselves. Import is when a country brings things in that they can't
supply. And export is when a country gets paid to give away extra stuff they have. Without import and
export, a country would only have what they could supply on their own.
In order to develop country’s economy, it has to import what it doesn’t produce. The payment
for all these imports can be done only through exporting the products and earnings through valuable
foreign exchange.
NEED OF IMPORTS IN INDIA
On the imports side, India has been in a disadvantageous position, advanced countries which are
capable of producing and selling almost every commodity at low prices. This meant that India could
not develop any industry without protecting it from foreign competition.
Imports are essential to protect domestic industries and to promote industrial development.
Since independence, the government of India has broadly restricted foreign competition through
a judicious use of import licensing, import quotas, import duties and in extreme cases, even banning
import of specific goods.
NEED OF EXPORTS IN INDIA
To pay for its imports and to minimize dependence on foreign countries, expansion of exports
was very essential. There are many good reasons for exporting:
The first and the primary reason for exporting are to earn foreign exchange. The foreign exchange
cannot only brings profit for the exporter but also improves the economic condition of the country.
The companies that export their goods are believed to be more reliable than their counterpart
domestic companies assuming that exporting company has survive the test in meeting
international standards.
Free exchange of ideas and cultural knowledge opens up immense business and trade
opportunities for a company.
One starts visiting customers to sell one’s goods; he has an opportunity to start exploring
for newer customers, state-of-the-art machines and vendors in foreign lands.
EXPORT INCENTIVES The government of India has framed several schemes to promote exports and to obtain
foreign exchange. These schemes grants incentive and other benefits. The few important export
incentives, from the point of view of indirect taxes are briefed below:
1. Free Trade Zones (FTZ).
2. Electronic Hardware Technology Park/ software technology parks.
3. Advance License / Duty exception Entitlement scheme(DEFC)
4. Export Promotion Capital Goods Scheme (EPCG).
INDIAN EXPORTS
Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed
faster export growth than others. Some of the main Indian’s exports are
1. Software
2. Tobacco
3. Cotton
4. Textiles
5. Jute good tea
6. Coffee
7. Cocoa products
8. Rice
9. Wheat
10. Jams
11. Juices & preserved vegetables etc….
India exports its goods to some of the leading countries of the world such
UK
USA
BELGIUM
RUSSIA
CHINA , E.T.C
Exports : $155 billion f.o.b (2009 est.)
Goods exported : Software, petroleum products, textile goods, gems and jewelery, engineering goods, chemicals and leather manufactures.
Main export partners : US 12.3%, UAE 9.4%, China 9.3% (2008)
Imports : $232.3 billion f.o.b (2009 est.)
Import goods : crude oil, machinery, gems, fertilizer, chemicals
FDI stock
Foreign exchange reserve
: $161.3 billion (2009 est.)
:$279.4 billion(2010)
RESERVES OF FOREX
The foreign exchange market (FOREX) is a worldwide decentralized financial market for the
trading of currencies. Financial centers around the world function as anchors of trading between a
wide range of different types of buyers and sellers around the clock with the exception of weekends.
The foreign exchange market determines the relative values of different currencies.
The primary purpose of the foreign exchange market is to assist international trade and investment,
by allowing businesses to convert one currency to another currency. For example, it permits a US business
to import European goods and pay Euros, even though the business’s income is in US dollars.
It also supports speculation, and facilities the carry trade in which investors borrow low-yielding currencies
and lend (invest in) high-yielding currencies and which may lead to loss of competitiveness in some
countries.
INTERNATIONAL TRADE :-
International trade is exchange of capital, goods, and services across international borders or territories.In
most countries, it represents a significant share of gross domestic product (GDP). While international trade
has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and
political importance has been on the rise in recent centuries.
Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all
having a major impact on the international trade system. Increasing international trade is crucial to the
continuance of globalization. Without international trade, nations would be limited to the goods and services
produced within their own borders.
International trade is in principle not different from domestic trade as the motivation and the behavior of parties
involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main
difference is that international trade is typically more costly than domestic trade. The reason is that a border
typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with
country differences such as language, the legal system or culture.
Another difference between domestic and international trade is that factors of production such as capital and
labour are typically more mobile within a country than across countries. Thus international trade is mostly
restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of
production. Then trade in goods and services can serve as a substitute for trade in factors of production.
Instead of importing a factor of production, a country can import goods that make intensive use of the factor of
production and are thus embodying the respective factor. An example is the import of labor-intensive goods by
the United States from China. Instead of importing Chinese labor the United States is importing goods from
China that were produced with Chinese labor.
International trade is also a branch of economics, which, together with international finance, forms the larger
branch of international economics.
New Trade Theory
New Trade Theory tries to explain empirical elements of trade that comparative advantage-based models above
have difficulty with. These include the fact that most trade is between countries with similar factor endowment
and productivity levels, and the large amount of multinational production (i.e. foreign direct investment) which
exists. New Trade theories are often based on assumptions like monopolistic competition and increasing
returns to scale. One result of these theories is the home-market effect, which asserts that, if an industry tends
to cluster in one location because of returns to scale and if that industry has high transportation costs, the
industry will be located in the country with most of its demand to minimize.
Regulation of international trade
Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief
in mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century,
especially in the United Kingdom, a belief in free trade became paramount. This belief became the dominant
thinking among western nations since then. In the years since the Second World War, controversial multilateral
treaties like the General Agreement on Tariffs and Trade (GATT) and World Trade Organization have
attempted to promote free trade while creating a globally regulated trade structure. These trade agreements
have often resulted in discontent and protest with claims of unfair trade that is not beneficial to developing
countries.
Free trade is usually most strongly supported by the most economically powerful nations, though they often
engage in selective protectionism for those industries which are strategically important such as the protective
tariffs applied to agriculture by the United States and Europe. The Netherlands and the United Kingdom were
both strong advocates of free trade when they were economically dominant, today the United States, the United
Kingdom, Australia and Japan are its greatest proponents. However, many other countries (such as India, China
and Russia) are increasingly becoming advocates of free trade as they become more economically powerful
themselves. As tariff levels fall there is also an increasing willingness to negotiate non tariff measures,
including foreign direct investment, procurement and trade facilitation. The latter looks at the transaction cost
associated with meeting trade and customs procedures.
Traditionally agricultural interests are usually in favour of free trade while manufacturing sectors often support
protectionism. This has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly in
the United States, Europe and Japan, are chiefly responsible for particular rules in the major international trade
treaties which allow for more protectionist measures in agriculture than for most other goods and services.
During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This
occurred around the world during the Great Depression. Many economists have attempted to portray tariffs as
the underlining reason behind the collapse in world trade that many believe seriously deepened the depression.
The regulation of international trade is done through the World Trade Organization at the global level, and
through several other regional arrangements such as MERCOSUR in South America, the North American Free
Trade Agreement (NAFTA) between the United States, Canada and Mexico, and the European Union between
27 independent states. The 2005 Buenos Aires talks on the planned establishment of the Free Trade Area of the
Americas (FTAA) failed largely because of opposition from the populations of Latin American nations. Similar
agreements such as the Multilateral Agreement on Investment (MAI) have also failed in recent years.
Risk in international trade
Companies doing business across international borders face many of the same risks as would normally be
evident in strictly domestic transactions. For example,
Buyer insolvency (purchaser cannot pay);
Non-acceptance (buyer rejects goods as different from the agreed upon specifications); Credit risk (allowing the buyer to take possession of goods prior to payment); Regulatory risk (e.g., a change in rules that prevents the transaction); Intervention (governmental action to prevent a transaction being completed); Political risk (change in leadership interfering with transactions or prices); and War and other uncontrollable events.
In addition, international trade also faces the risk of unfavorable exchange rate movements (and,the potential
benefit of favorable movements).
Top traded commodities (exports)
Rank Commodity Value in US$('000) Date ofinformation
1 Mineral fuels, oils, distillation products, etc $1,658,851,456 2009
2 Electrical, electronic equipment $1,605,700,864 2009
3 Machinery, nuclear reactors, boilers, etc $1,520,199,680 2009
4 Vehicles other than railway, tramway $841,412,992 2009
5 Pharmaceutical products $416,039,840 2009
6Optical, photo, technical, medical, etc apparatus
$396,337,696 2009
7 Plastics and articles there of $386,628,064 2009
8 Pearls, precious stones, metals, coins, etc $320,174,080 2009
9 Organic chemicals $310,106,432 2009
10 Iron and steel $273,024,416 2009
Top trading nations
List of countries by exports and List of countries by importsRank Country Exports + Imports Date of
information- European Union (Extra-EU27) $3,197,000,000,000 2009 [26]
1 United States $2,439,700,000,000 2009 est.2 People's Republic of China $2,208,000,000,000 2009 est.3 Germany $2,052,000,000,000 2009 est.4 Japan $1,006,900,000,000 2009 est.5 France $989,000,000,000 2009 est.6 United Kingdom $824,900,000,000 2009 est.7 Netherlands $756,500,000,000 2009 est.8 Italy $727,700,000,000 2009 est.- Hong Kong $672,600,000,000 2009 est.9 South Korea $668,500,000,000 2009 est.10 Belgium $611,100,000,000 2009 est.11 Canada $603,700,000,000 2009 est.12 Spain $508,900,000,000 2009 est.13 Russia $492,400,000,000 2009 est.14 Mexico $458,200,000,000 2009 est.15 Singapore $454,800,000,000 2009 est.16 India $387,300,000,000 2009 est.17 Taiwan (Republic of China) $371,400,000,000 2009 est.18 Switzerland $367,300,000,000 2009 est.19 Australia $322,400,000,000 2009 est.20 United Arab Emirates $315,000,000,000 2009 est.
International Marketing:-
International marketing (IM) or global marketing refers to marketing carried out by companies overseas or
across national borderlines. This strategy uses an extension of the techniques used in the home country of a
firm. It refers to the firm-level marketing practices across the border including market identification and
targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets.
According to the American Marketing Association (AMA) "international marketing is the multinational
process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and
services to create exchanges that satisfy individual and organizational objectives." In contrast to the definition
of marketing only the word multinational has been added. In simple words international marketing is the
application of marketing principles to across national boundaries. However, there is a crossover between what
is commonly expressed as international marketing and global marketing, which is a similar term.
The intersection is the result of the process of internationalization. Many American and European authors see
international marketing as a simple extension of exporting, whereby the marketing mix 4P's is simply adapted
in some way to take into account differences in consumers and segments. It then follows that global marketing
takes a more standardized approach to world markets and focuses upon sameness, in other words the
similarities in consumers and segments.
According to Kotabe, the following topics cover the micro-context of international marketing.
Organizational and consumer behaviour:
organizational buying behaviour ;
international negotiations;
consumer behaviour;
country of origin.
Marketing entry decisions:
initial mode of entry
specific modes of entry
exporting ;
Joint ventures .
Local market expansion: marketing mix decisions:
global standardization vs. local responsiveness
Marketing mix:
product policy;
advertising;
pricing;
Distribution.
Global strategy:
Competitive strategy :
conceptual development;
competitive advantage vs. competitive positioning;
Sources of competitive advantage and performance implications.
Strategic alliances:
learning and trust;
recipes for alliance success;
Performance of different types of alliance.
Global sourcing:
global sourcing in a service context;
benefits of global sourcing;
Country of origin issues in global sourcing.
Multinational performance:
determinants of performance;
a different interpretation of performance.
Analytical techniques in cross-national research:
measurement issues;
Reliability and validity issues
Differences between domestic marketing and international marketing
There are various differences between domestic marketing and international marketing. Due to a language
barrier it is more difficult to obtain and interpret research data in international marketing. Promotional
messages need to consider numerous cultural differences between different countries. This includes the
differences in languages, expressions, habits, gestures, ideologies and more. For example, in the United States
the round O sign made with thumb and first finger means "okay" while in Mediterranean countries the same
gesture means "zero" or "the worst". In Tunisia it is understood as "I'll kill you" meanwhile for a Japan
consumer it implies "money". Even among the 74 English-speaking nations a word with the same meaning can
differ greatly from the English which is spoken in the United States as the following example shows:
Police: bobby (Britain), garda (Ireland), Mountie (Canada), police wallah (South Africa)
Porch: stoep (South Africa), gallery (Caribbean) Bar: pub (Britain), hotel (Australia), boozer (Australia, Britain, New Zealand) Bathroom: loo (Britain), dunny (Australia) Ghost or monster: wendigo (Canada), duppy (Caribbean), taniwha (New Zealand) Barbecue: braai (South Africa), barbie (Australia) Truck: lorry (Britain and Australia) Festival: feis (Ireland) Sweater: jumper (England) French fries: chips (Britain) Soccer: football (the rest of the world) Soccer field: pitch (England)
Three recent international examples of misinterpretation are:
On a sign in a Bucharest hotel lobby: The lift is being fixed for the next day. During that time, we regret that you will be unbearable.
From a Japanese information booklet about using a hotel air conditioner: Cooles and Heates: If you want just
condition of warm your room, please control yourself.
In an Acapulco hotel: The manager has personally passed all the water served here.
Mode of engagement in foreign markets
After the decision to invest has been made, the exact mode of operation has to be determined. The risks concerning operating in foreign markets is often dependent on the level of control a firm has, coupled with the level of capital expenditure outlayed. The principal modes of engagement are listed below:
Exporting (which is further divided into direct and indirect exporting).
Joint ventures. Direct investment (split into assembly and manufacturing).
IMPORTANCE OF GLOBAL TRADE
A. Current status of maritime transport industry in India
1. Importance of maritime transport in economicdevelopment and in international trade
Ocean transport or shipping plays an important role in the trade and economic development ofnations. In fact, transport, trade and economic development are mutually supportive. The overwhelmingshare of shipping in the carriage of about 95 per cent in terms of volume and almost two thirds of the totalvalue of international trade establishes its predominance and importance as a mode of internationaltransportation system. The importance of shipping, over the period, has also increased due to thetechnological developments in transport, especially in terms of containerization culminating in multimodaltransportation on door-to-door basis, since majority of the containers move by this mode of transport.
2. Role of shipping in India’s foreign tradeand foreign exchange earnings
In case of India, shipping constitutes an essential component of the country’s international trade sinceabout 90 per cent of her overseas trade in terms of volume and about 77 per cent in terms of value movesby sea. In view of the vital role played by shipping industry in furthering the growth of overseas trade, asalso as a direct earner and saver of foreign exchange, the Government right from the beginning of planningera in 1950-51 has been endeavoring to build adequate national fleet.
Shipping is a valuable invisible export or foreign exchange earner for any country. Over the period,Indian shipping has improved its foreign exchange flows, as the gross earnings/receipts increased fromRs 26.98 billion in 1991-92 to Rs 57.2 billion in 1999-2000 and the net inflows increased from Rs 15.6billion to Rs 35.3 billion during the same period.
3. Growth of Indian shipping fleet
Indian shipping fleet which possessed 59 ships with a total tonnage of about 0.19 million GT at thetime of independence (August 1947) gradually increased to 0.37 million GT in 1951, i.e., the beginning ofthe First Five Year Plan. Since then the same registered a remarkable growth till the end of the SixthFive Year Plan, i.e., 31 March 1985. In the subsequent years, there have been fluctuations in the growthof the shipping fleet as the achievement in terms of fleet size fell short against the fixed target. The targetof 9 million GT fixed for Ninth Five Year Plan is unlikely to be achieved since the shipping fleet as on1 April 2001 was 546 ships aggregating only 6.84 million GT, which is almost the same level as at thebeginning of the Plan period.
4. Growth of India’s overseas tradeand the shipping capacity
Over the period, the movement of traffic in terms of export and import cargoes has witnessed aremarkable growth increasing from 30 million tons in 1960-61 to 224.6 million tons in 1999-2000, butthe capacity of Indian shipping has not shown the corresponding growth, since the same increased from
0.9 million of payment of freight charges, which could otherwise be used for other high priorityimports or for building up indigenous infrastructure.
5. Availability of international shipping services to trade
The shipping services in India are also patterned similar to the global shipping services, namely,tramps and liners. The types of ships engaged in India’s overseas trade include dry cargo liners, cellularcontainer ships, dry cargo bulk carriers, ore/oil/bulk carriers, oil tankers (product carriers), passenger-cum-cargo vessels, acid carriers, timer carriers, LPG carriers, RoRo ships, OSVs and specialized ships.The shipping industry also caters to the requirements of coastal trade and offshore supply vessels (OSVs)for ONGC and GAIL.
During the last 50 years, India’s overseas trade has expanded considerably both in terms of composi-tion and direction due to the policy of export promotion being pursued by the Government. At the sametime, efforts are being made to provide and improve the trade related infrastructure, especially thetransport, to facilitate the movement of traffic more efficiently. So far as the movement of traffic by shipsto overseas destinations is concerned, both Indian as well as the foreign flag ships operating conferenceand non-conference liner shipping services have been providing the services either directly or throughtransshipment arrangements for the general cargo in break-bulk or containerized form. Similarly for thebulk cargo moving either as imports or exports, the services of tramp ships both Indian and foreign usuallyengaged on chartering basis are available to all the destinations.
6. Port infrastructure for foreign trade
India is served by twelve major ports, handling more than 75 per cent of the total sea borne trade, anda number of small and minor ports, located along country’s coastline. The development of major ports isthe responsibility of the Central Government, while the operational and administrative responsibility forthe development of the intermediate and minor ports rests with the maritime states under whose jurisdic-tion they fall, although technical assistance wherever necessary is provided by the Central Government.
7. Port capacity and traffic throughput
Ever since the beginning of planning era, i.e., 1950-51, expansion of port capacity has beenan important aspect of development programmes obviously due to increasing volume of traffic. Therehas been progressive development towards capacity building during the past decade or so. The table(table 1) in the next page gives the trends in ports capacity, traffic throughput and the capacity utilizationfrom 1984-85 onwards:
The total capacity at the major ports is expected to be 344 million tons at the end of Ninth Five YearPlan (31 March 2002) against the envisaged traffic of about 300 million tons (about 86 per cent capacityutilization), thus bringing a great relief to the existing overworked ports. Besides, the port developmentprojects taken up by the state governments in respect of minor ports and also the establishment of captiveports would boost the capacity expansion programmes in the port sector.
8. Privatization/liberalization of port sector
In order to accelerate the pace of privatization, in line with the overall policy of liberalization of theGovernment, policy guidelines on private sector participation in port development were issued by theMinistry in 1996. As a result, a substantial capacity, particular container handling facilities fundedthrough private sector funds has been created during the Ninth Five Year plans..
India
Table 1. Total Capacity and Traffic Handled at Major Ports
(In Million Tons)
Year Capacity Traffic Handled (Per cent)
1984-85 132.7 107.8 81
1985-86 141.9 119.5 841986-87 141.9 124.4 881987-88 141.9 133.7 941988-89 141.9 146.4 1031989-90 162.8 148.4 911990-91 162.8 152.9 941991-92 169.2 157.6 931992-93 170.2 166.6 981993-94 170.2 179.3 1051994-95 174.0 197.2 1131995-96 181.2 215.3 1191996-97 219.5 227.3 1041997-98 239.5 251.4 1051998-99 254.4 251.7 1051999-00 254.4 272 1072000-01 291.0 281 91
B. Existing policies/laws/regulations
1. Market access and restrictions on specific trades
Market access, i.e. access to the carriage of cargo traffic assumes a great significance so far asshipping services are concerned. The dearth or denial of opportunity to carry cargo, both bulk as well asbreak-bulk, even originating in their own countries or belonging to them is one of the most importantfactors inhibiting participation of mercantile fleet of developing countries. This is primarily due to theterms of trade being used by the major trading partners of the developing countries which are morefavourable to them, i.e., buying on FOB/FAS and selling on CIF/CFR basis.
Imposition of restrictions on maritime transport services can adversely affect the price, reliabilityand quality of these services. These are in fact barriers that limit maritime service suppliers fromentering or operating in a market. Such restrictions are imposed by some governments through legislationand regulation. Such restrictions may be discriminatory or non-discriminatory against foreign servicesuppliers.
Cargo support in favour of national shipping is nearly universal, since reservation of national cargoesfor national bottoms provides the national fleet with a certain degree of stability in an otherwise violentlycyclical market. This stability has an extremely positive impact on the eventual financial strength ofnational shipping companies and their ability to raise capital competitively. In case of Indian shipping aswell, cargo support was made a cardinal principle of national policy which proved to be a great source ofstrength in promoting the growth of the national fleet. Since the key to cargo support is provided bycontrolling the terms of shipment to buy on FOB and sell on CIF basis, the Government of India alsoformulated a policy of FOB/FAS imports and CIF exports in 195
. I) Providing cargo support to Indian shipping,
(ii) Saving outgo of valuable foreign exchange and earning foreign exchange in cross trades,
(iII) Controlling freight level and commodity price in national interest, etc. Under this arrangement,the government owned/controlled cargo is channeled by the charting wing of the Ministry ofShipping, called Transchart. As per this policy the first right of refusal for carriage of suchcargo was given to Indian vessels.
However, pursuant to the policy of trade liberalization in mid-1991 resulting in decanalization ofvarious items, like rock phosphate, sulphur, ammonia, phosphorus acid, DAP, MOP, etc. and entry ofprivate trade in import of these items, Transchart’s role for making shipments arrangements for thecargoes under reference has been marginalized and the same is likely to further go down in the nearfuture due to the changing pattern of trade in which private sector will be having a greater role to play.
Moreover, the declining share of national carriers in the total overseas trade of the country andremaining within a range of 28 per cent to 35 per cent especially in the post liberalization era clearlyreflects that India has not been following strictly any cargo support policy even in respect of cargo beingimported or exported by the Public Sector Undertakings, since lately they have been demanding relaxationin the policy of going through Transchart for making the shipment arrangements due to the growingcompetitive business environment in which now they have to operate.
In the context of market access, it may also be highlighted that the lower share of Indian shipping inthe carriage of country’s overseas trade is due to the terms of trade used by India’s trading partners, who,by and large, have been buying and selling goods on terms more favourable to them. Thus from India’spoint of view, there is no protection as such for the national carriers and no restrictions for the ships ofother countries to carry cargo from Indian ports.
The carriage of coastal trade is governed under the cabotage principle in many countries, developedas well as developing. India too, has a scheme of 100 per cent reservation of coastal trade for the nationalcarriers, since the movement of traffic within a country’s ocean territory has always been considered aspart of the internal transport system. However, any dispensation permitting the foreign flag in the coastaltrade is given on voyage to voyage basis.
2. Bilateral/unilateral cargo reservation schemes
Bilateral shipping arrangements are considered to be an effective tool to ensure cargo support tothe national bottoms and is reportedly used by some of the countries in the world.
Initially, India used to have bilateral trade and shipping agreements with some of the Eastern BlocCountries and UAE, according to which there was parity (50:50) in terms of sailings and the carriage oftrade by the carriers of the respective trading partners. This system proved quite effective in ensuringcargo support for the national carriers and thereby better utilization of ships in the liner trade, especially incase of India. However, due to the changes that have taken place in the economies of those countries, overthe period, no such agreements or schemes are currently in force.
3. Subsidies
Some of the developed countries arereportedly extending the facilities of operational and constructionsubsidies, concessional credits, registration of vessels in open registry countries, tax incentives or assis-tance for shipbuilding or operation costs aiming at the development of shipping activities or sometimes at
For exampl
(SDFC) was set up in 1958. SDFC disbursed large amounts at very attractive rates of interest varyingfrom 3 per cent during 1959 to 1971 to 7.5 per cent from 1980 to 1986. However, SDFC was abolished in1987 and now no one financial institute has been given an exclusive mandate for financing the shippingsector. Similarly adoption of certain fiscal measures, e.g. additional 1 per cent REP license in case ofutilization of national carrier for the carriage, were also directed towards the development of shippingfleet. All schemes have been removed during the past one and a half decades, especially after theintroduction of the policy of liberalization. Since the financial support to the shipping industry is almostnon-existent, the same has been left with no option but to take care of its requirement through ECBs orsuch other instruments so far as the raising of funds for acquisition of ships is concerned.
Further, there exists no scheme for subsidizing the national carriers in the carriage of cargo andthere is also no cargo preference for them and the trade is thus open for being carried by the ships offeringcompetitive freight rates. Even in case of shipments of Government controlled cargoes or the cargoestraded by the Public Sector Undertakings for which the fixation of ships by Transchart is done, Indianbottoms do not get any price preference, they have to match the lowest price.
4. Access to port facilities/services for overseas vessels
Indian ports, from the very beginning, have been following the ‘principle of non-discrimination’ inproviding the facilities and services to the ships calling at ports irrespective of their flags. Likewise, thereis uniformity in levying charges for the port related facilities or services for all the ships.
Ports being the lifeline for the economy as a whole and foreign trade in particular, the need forefficient services has been well recognized universally. To bring about improvement in this sector, theGovernment has deviated from its erstwhile socio-economic policy and has accepted privatization conceptof construction, development and operation in ports. The objective of privatization is in terms of techno-logy, better equipment availability, management, funding, marketing, shift of operation and related risks tothe private entrepreneurs who can have better inputs, commercial practice and flexibility required forensuring the needed competition.
Private sector is permitted to construct its own cargo handling facilities at the ports, under Build-Operate-Transfer format. There is no distinction between foreign and Indian companies. 100 per centForeign Direct Investment is permitted without specific approvals from the Government authorities. Inorder to provide incentives to the projects to enhance their viability/profitability, corporate tax exemptionhas been provided for 10 years and the import of project and its component is permitted on concessionalimport duty bases. In the maritime auxiliary services, there are no limitations on market access, nor arethere any limitations on national treatment in the commercial presence in the areas of Maritime CargoHandling services; Storage and Warehousing services in ports; Container Station and Depot Services;Maritime Agency services; Maritime Freight Forwarding services and maintenance and repairs of seagoing vessels.
C. National (plan/policy) towards liberalization
1. Policy towards liberalization of maritimetransport services
In case of shipping and port sectors, especially, the policy has been towards encouraging openness.
e, foreign direct investment (FDI) is permissible up to 100 per cent. Various measures towardsliberalization of shipping sector include automatic approval for acquisition of all categories of ships (exceptcrude tankers and OSVs) by private shipping companies, sale of ships for further trading/scrapping toIndian companies within India or abroad, acquisition of replacement tonnage, permitting shipping compa-nies to retain sale proceeds of Indian ships abroad and utilization of the same for fresh acquisition andfreedom to charter out Indian ships to foreign shipping companies for employment in international crosstrade, on case to case basis.e, foreign direct investment (FDI) is permissible up to 100 per cent. Various measures towardsliberalization of shipping sector include automatic approval for acquisition of all categories of ships (exceptcrude tankers and OSVs) by private shipping companies, sale of ships for further trading/scrapping toIndian companies within India or abroad, acquisition of replacement tonnage, permitting shipping compa-nies to retain sale proceeds of Indian ships abroad and utilization of the same for fresh acquisition andfreedom to charter out Indian ships to foreign shipping companies for employment in international crosstrade, on case to case basis.
D. India’s participation at the 4 WTO MinisterialthConference held in Doha
India participated at the 4 WTO Ministerial Conference in Doha from 9-13 November 2001. Thet h“Ministerial Declaration” adopted at Doha reaffirms the Guidelines and Procedures for the Negotiationsadopted by the Council for Trade in services on 28 March 2001 as the basis for continuing the negotia-t htions, with a view of achieving the objectives of the General Agreement on Trade in services as stipulatedin the Preamble, Article IV and Article XIX of that Agreement. The Doha agreement stipulates that theparticipants shall submit their initial requests for specific commitments by 30 June 2002 and initial offersby 31 March 2003.
India is sensitive to the needs of the developing countries and is in the process of examining the matterin order to finalize its stand with regard to the forthcoming negotiations on Maritime Transport Services.
E. Preparation for negotiations
1. Expectations from the forthcoming negotiations on MaritimeTransport Services (MTS) through WTO
Mandated Negotiations under the General Agreement on Trade in Services (GATS) commenced atthe WTO on 1 January 2000. The main objective of GATS is the expansion of trade in services,stprogressive liberalization of such trade through negotiations, transparency of rules and regulations andincreasing participation of developing countries. Since MTS is governed by the GATS under the WTOregime, it is expected that this sector will witness significant liberalization through multilateral tradenegotiations.
In the past, the shipping interests of developing countries like India have been adversely affectedbecause of the policies and practices of the developed countries and their shipping companies. Therefore,the burden of making the maritime transport services transparent, non-discriminatory and providingmarket access to the shipping industry of the developing countries on a fair and equitable basis liessquarely on developed countries. The developing countries may hope that with the removal of protectionistpolicies and practices followed by the developed maritime countries, the former will be having a betteropportunity of improving their shipping fleet as also the share in the carriage of trade. The participation oftheir fleet in cross trade with equal opportunity of carriage of global trade would further result in betterearnings in foreign exchange, besides utilization of increased capacity for carriage of national trade wouldgive the advantage in terms of savings in the outgo of foreign exchange. The improvement in shipping fleetas also in the port sector is expected to bring in better results for the country’s economy as a whole.
F. The most important limitation expected to be eliminatedor reduced through such negotiations
Services trade has emerged as an important and growing part of the world economy accountingfor increasing shares of production, employment and international transactions. The share of servicesin the world trade as well as the majority of domestic activities in most economies is reportedly around20 per cent.
Developing and transition economies can expect to compete effectively in the services sectorscovered by GATS. The range of services currently being exported by some of the countries falling underthe above group includes the transport services.Currently the most important limitation for the maritime transport services of the developingmaritime nations is the market access, i.e., the denial of opportunity to carry even the national trade.Though the cargo may originate in the developing countries, their national shipping has no claim on thecarriage of the same, since the carriage of cargo is very much dependent on the terms of trade used by theoverseas buyers, especially buyers from developed countries. In case of India, it has been observed that,
barring strategic cargo like crude and petroleum products, the requirement of which is mostly met throughimports, majority of the cargo in bulk and break-bulk trade is being carried by the ships belonging either tothe importing countries or FOC (Flag of Convenience) countries, where again the ownership is with theleading maritime countries. The ships registered with FOC countries are offering competitive freightcharges due to their inherent advantage in terms of lower operating costs. In the interest of providingopportunities for a fair share in their trades, the issue of ‘market access’ has to be considered based onGATS rules. The negotiations would hopefully do away with the limitation in this regard and themaritime transport services of developing countries like India might benefit from such a move.
CHAPTER-2 OBJECTIVES SCOPE
RESEARCH METHODOGY ( DATA ANALYSIS)
LIMITATIONS SAMPLING
THE present study is a comprehensive study of EXPORT DOCUMENTATION
AND PROCEDURE . The research work is done in collaboration with KAKINDA SEA PORT LTD
To assess the overall export procedure & documentation. On concentrating the
OBJECTIVE Of the project of maximum information is summed up sequentially. The
Executive Summary of the project describes...
Objective
The main objective of the study is to formulate the overall procedure of export orders say ‘how
to export’, documentation, modes of payment & incentives from KAINADA SEA PORT LTD.
Research Methodology
Research comprises defining and redefining problems. Research purpose is to discover answer to
question through the procedure of scientific procedure. Interviews and discussion
With thesupervisors and officials to get the root of the pre-determined objective and in order to outline
the ‘a to z’ steps of processing export order.
Findings & Recommendations
On the execution of the objective of study, it might be conclude that processing of export order
can be a tedious and costly activity. A careful planning and implementation of appropriate
procedure can reduce time and cost drastically. A fair documentation not only reduces the threats
of frauds, bottlenecks and risks but also enhances the business relationship between Exporters,
Importers & Governments in the whole world.
Statement of objectives
The complexity of business operations greatly accentuate as businessmen cross the
formulate the ‘how to export’ concept finally to contribute to national and in
national boundaries . A lot of formalities and modalities of several organizations have to be
compiled to and as error can create bottle necks in the free flow of good, documents,
information and payments.
Documentation is definitely one of the prime specialized functions of international
business. The documents safeguard the interests of Exporter, Importer, Banks, Governments,
Transport Agencies, Insurance Agencies and Inspection Agencies.
Main Objective of the Study
The main objective of the training was to study the systematic export procedure &
documentation of a reputed export house say KAKINADA SEA PORT LTD to overcome any kind of error,
bottleneck, frauds and mistake for the awareness and implementation of standardized rule-
regulations & documentation to contribute the integration of International Business up to any
extent.
Sub Objectives of the Study
The sub objectives of the study were:
• To study the department wise functions & sequential documentation for various
operations in export orders adopted by KAKINADA SEA PORT LTD.
• To study the standard modes of payment in export-import.
• To identify the incentives, discounts & duty drawbacks to exporters by the
Government. FOCUS OF THE STUDY
The focus of the study was the formulation the multifunction procedure of an export unit
named KAKINADA SEA PORT LTD. The focus of the study was on identifying the activities of
different divisions and departments of KAKINADA SEAPORT LTDhaving an impact on the export p
procedureOf this unit. Focus was to outline the standard modes of payment for export houses.
Research on analyzed the pre-export formalities and necessities for exportation. The project is an attempt to national and international economy & business contribution
METHODS OF COLLECTING DATATHE Data collection has involved in two steps
PRIMARY DATA:- The Primary data is collected by interacting with the General manager ,asst.General manager and employees of kakinada sea port LTD. S ECONDARY DATA:- The secondary data is collected from the internet , journals and books
This project work is focussed and confined to understanding activities involved in the tobacco export process
PARTIALinformation of negotiable documents because of securities reasons..
All the findings are based on the information from Seller/Exporter side only.
Primary data is analyzed though interview of executives and they may not be available
and may not be part of research.
Less sufficient response of executives & supervisors in respect to information related to securities and related mattersDue to insufficient time , information about the project is limited because of project time is one month
CHAPTER-3
INDUSTRY PROFILE
LIMITATIONS:-
Export Rules, Regulations & Compliances are too wide to cover thoroughly in short term project.
INDUSTRY PROFILE
Seaports and sea-borne trade are an important economic asset for the Gulf Coast region, directly an indirectly supporting significant numbers of jobs. The region is home to four major seaports, those of Houston, Texas City, Freeport and Galveston.
The Port of Houston is one of the world’s largest cargo ports. In 2007, the port ranked first in Texas, second in the U.S., and 16th In the world in to tal cargo volume handled.32 It is also the state’s second-largest cruise port and is expanding those operations th the opening of a new cruise terminal.
The Port of Houston is a 25-mile-long complex administered by the Port of Houston Authority and hosts more than 150 private industrial companies along the Houston Ship Channel. More than 225 million tons of cargo moved through the port in 2007 and 8,053 vessel calls were recorded at the Port of Houston in 2008. 33
International trade partners of the port include Mexico and countries in the Middle East, South America and Europe. Principal products handled at the Port of Houston include crude fertilizers, petroleum, organic chemicals, cereal, iron and steel, machinery, plastics and vehicles.
A recent study by the University of Texas at Austin’s Center for Transportation Research found that the Port of Houston directly or indirectly accounted for 785,049 jobs, $39.3 billion in personal income and $117.6 billion in economic impact on the area, while providing $3.7 billion in tax revenue for local, state and federal governments in 2006The Port of Texas City is the state’s fourth–largest, 13th in the nation and 87th in the world for total cargo volume.5 It is located about 10 miles northwest of Galveston and has the significant advantage of a highly integrated railway system.The railway facilitates the movement of liquid cargoes including crude petroleum oil and refined petroleum products. The Texas City Terminal Railway Company handles more than 25,000 rail car loads annually. Both the Union Pacific and Burlington Northern Santa Fe rail companies have a significant presence in the area, with 32 miles of connecting rail lines that serve different facilities at the port. The Port of Texas City includes 1,500 acres of land leased to various industrial entities that operate petrochemical plants and refineries and tank and terminal facilities, making it a vital national hub for the petroleum industry.36
The Port of Texas City directly or indirectly accounted for 15,050 jobs and $919.5 million in personal income in 2004. In that year, it generated $667.6 million in economic activity in the area and contributed $248.3 million in tax revenue to local, state and federal governments.In 2007, the port handled nearly 52 million tons of cargo. Its principal import is crude oil, while its principal exports are gasoline, diesel, jet fuel, intermediate chemicals and petroleum coke. The port serves customers throughout the U.S., as well as numerous countries around the world.37
The Port of Freeport, located about 50 miles south of Houston in Brazoria County, is the fifth-largest port in Texas and the 27th-largest in the nation for total cargo volume.38 Its principal imports include crude petroleum, fruit, textiles, aggregate, paper goods and plastics. Its primary exported commodities include automobiles, chemicals, clothing, food, paper goods and plastics.
The port serves customers throughout the U.S. and from Nigeria, Saudi Arabia, South Africa, Brazil, Colombia, the Dominican Republic, Guatemala, Honduras, Mexico, Venezuela and Costa Rica. The port directly or indirectly accounted for 25,795 jobs, $1.8 billion in personal income and $1.6 billion in economic activity, while contributing $169.9 million in tax revenue for local, state and federal governments in 2003. The Port of Freeport handled about 29.6 million tons of cargo in 2007.39
In 2007, the Port of Galveston was the eighth-largest port in the state and 53rd-largest in the nation for total cargo volume.40 The port, located at the mouth of Galveston Bay along the Upper Texas Coast, handles imports including containers, agricultural equipment, machinery, vehicles, fertilizer products, lumber products and military-related cargoes. Its principal exports include bulk grains, containers, machinery, vehicles, linerboard and paper, carbon black and light fuels. In 2007, the port handled 9.8 million tons of cargo.41
The Port of Galveston is also Texas’ number-one passenger port. In 2006, nearly 617,000 people embarked from the port on cruise ships.The port serves customers throughout the state as well as Texas’ neighboring states and the Midwestern U.S. Its international trading partners include Mexico, Guatemala, Panama, Colombia, Venezuela, Brazil, Dominican Republic, Spain, Italy, Egypt, Israel, Turkey, Bulgaria, Belgium, England, Germany, Saudi Arabia, United Arab Emirates, Kuwait, Singapore and China.The Port of Galveston directly or indirectly accounted for 13,367 jobs, $727.5 million in personal income, and $2.2 billion in economic activity, while contributing $190.4 million in tax revenue to local, state and federal governments in 2006.42
CHAPTER 4 COMPANY PROFILE
KAKINADA SEAPORTS LIMITED a dynamic gateway port on East Coast of India which is ideally located between Visakhapatnam and Chennai Ports.Hope Island, a natural formation offers protection as natural breakwater for Kakinada Port and 1.2 Km breakwater of tetra pods provides tranquil bay conditions round the year for vessels to operate in sheltered waters of Kakinada Deep Water Port.
The vantagious position of Port gives a unique opportunity to handle a mix of bulk, liquid, break bulk, containers, project cargoes & service offshore Oil & Gas exploration activities of Krishna – Godavari Basin. KSPL team is truly committed to Customer needs, safe working practices, supply chain management and environment protection.KAKINADA PORT is located at Kakinada off the east coast of India. It is 170 km (106 mi) south of Visakhapatnam Port.Kakinada Port is a large complex comprising Kakinada Anchorage Port, Kakinada Deep Water Port, Kakinada Fishing Harbour and Ship-Breaking Unit. Kakinada Anchorage Port has a century-long tradition. Kakinada Deep Water Port is an all-weather deep water port, and the channel has a depth of 12 metres (39 ft). The port can handle vessels up to 50,000 DWT. The port handled 10.81 million tonnes of cargo in 2010–2011.Recently AP Govt has developed Kakinada beach and it has 100 acres of land covered from port to uppada area.
KAKINADA ANCHORAGE PORT
Located on the East Coast of A.P, East Godavari District , India and the port is in operation departmentally since long time by A.P.Ports Department, Government of Andhra Pradesh.
Located at:-o Lat :- 16 º .56’ No Long :- 82º .15’ E
Kakinada Port is the main gateway port for the rich agricultural belt of East Godavari, West Godavari and Krishna Districts of Andhra Pradesh.
Kakinada Port comprises of Kakinada Anchorage Port, Kakinada Deep Water Port, Kakinada Fishing Harbour.
Kakinada Anchorage Port has a hundred years old history managed by the Government of Andhra Pradesh.
Kakinada Anchorage Port handled a cargo of 1.14M.tons during the year 2010-11 and 2.55 M.Tons during the year 2011-2012 (up to 01/2012)
Kakinada Anchorage Port Infrastructureo Land: 1959.69 Acreso Wharf: 922 Mts lengtho Open Stocking Area: 1,00,000 Tonneso Transit sheds for storage of Cargo: 50,000 MT (Govt) 3,00,000 MT (Private)
KAKINADA DEEP WATER PORT
Kakinada Sea Ports Limited is a Special Purpose Company set up in 1999 as a part of its privatization initiatives by the government.
It is promoted by Kakinada Infrastructure Moldings Pvt. Ltd., group and Konsortium Logistic Berhad of Malaysia with an objective of developing and operating a truly world class Hub.
This deep-water port is located on the east coast of India with a graphical position of
Located at:-o North:- Latitude 17° 05.8’ N and longitude of 82° 31.5’ E.o South:- Latitude 16° 55.9’ N and longitude of 82° 30.0’ E.o East :- (A) Latitude 17° 05.8’ N and longitude of 82° 31.5’ E.
(B) Latitude 17° 00.0’ N and longitude of 82° 31.5’ E. (C) Latitude 16° 55.9’ N and longitude of 82° 30.0’ E.
It is situated 170 km south of Visakhapatnam and 650 km north of Chennai. Kakinada forms the main gateway port for the rich agricultural belt of East Godavari, West Godavari and Krishna Districts of Andhra Pradesh.
Conservancy powers vested with Kakinada Seaports Company Limited. The port is developed with the land to an extent of Ac.302
THE KEY FEATURES
All weather, deep water. It has a channel depth of 12 metres. The berth waiting time is the minimum in the country of 0.31 hours as against 5.0 hours
in major port. The vessel turnround time is one day as against 3.5 days in major ports. It has secured warehouses and spacious storage yards. It is blessed with an efficient evacuation corridor and rail/road linkage. It is an ISO and ISPS certified port.
PRESENT STAGE:
Commercial operations are commenced from 1-4-1999 Berths availability: 4 Berths are in operationo Cargo Berth – 910 Mtso Multi cargo berth – 635 Mtso Offshore supply vessels Bertho Coast Guard Bertho The 5th and 6th Berths are under construction stage
Draft Depth of the channel availability is 14.00 Mts. Vessel handling capacity is 50,000 DWT. Cargo of 10.81 Million Tons was handled during 2010-11. Ship to ship transport facility is available
COMPANY ORGANISATION STRUCTUREMANAGING DIRECTOR : kranti venkatESWARA raoOther direcrtors ; MIRZAN BIN MAHATHIR NAVATHA KARNATI VIJAYA SEKHAR VELLANI SATYANARAYANA MURTHY PYDI VIBHA JAIN GENERAL MANAGER (BUSINESS DEVELOPMENT AND LOGISTICS): M.MURALI KRISHNAASSISTANT GENERAL MANAGER(LOGISTICS): PRABHAKAR
:: ROLE OF PORT DEPARTMENT
Providing facilities for the export and import of various commodities.
Safe Entry and berthing of vesselDischarging of CargoWarning the ships of all imminent dangers such as cyclones depressions, etc.Issue of instructions and guidelines to mariners for safe passage of ships. Benefits to the Nation:-
Derive the revenue to the nation such as customs duty, excise duty, etc.Reduce pressure on road and rail.Saving the consumption of fuel.Avoid traffic congestionReduction of air pollutionReduction of Environmental problemsIncrease in employment.
:: DUTIES OF OFFICERS OF THE PORT DEPARTMENT
1. Director of State Ports.
Director of State Ports is the Head of the Port Department and the Marine Advisor to the Government of Andhra Pradesh and exercises administrative control over the conservancy of all the Minor and Intermediate Ports in the State. The Director of State Ports is the Intermediate Authority to control the Conservators of Ports appointed in G.O.Ms.No. 132, P.W.D., dated 28-1-1970. He is also the Agent for Andhra Pradesh Government Consignments and Government Surveyor. The Development and Improvement works at all the State Ports, consistent with need and trade at the Ports, is the responsibility of the Director. 2. Port Officers
1. Port Officers are the Conservators of the Ports as per Section 7 of
Indian Ports Act, 1908.2. The Main functions and duties attached to the Port Officers are as
follows: -
1. They shall be the registering officers under the Andhra Pradesh State Ports Harbour Craft Rules, 1980.
2. They shall be the inspecting officers under sub-section (1) of section 238 and 287 of the Indian Merchant Shipping Act, 1958.
3. They shall be the Shipping Masters as per the provisions of the Indian Merchant Shipping Act, 1958 and the instructions received from time to time from the Merchantile Marine Department shall be followed.
4. They shall be the Inspectors under section (6) of the Employment of Children Act, 1938.
5. They shall be the Agents to the receiver of the Wrecks.6. They shall be the drawing, disbursing and Controlling Officers
for the Staff working under them and the Staff of the Ports under their jurisdiction. (Vide G.O.Ms.No. 345, P.W.D., dated 22-3-1969 and G.O.Ms.No. 679, P.W.D., dated 12-6-1975.
7. They shall be the Chairman of the Port Advisory Committee originally created in G.O.Ms.No. 1646, P.W.D. dated 26-9-1970 and extended from time to time.
8. They are required to frequently examine the light apparatus and navigational aids at the Ports and be responsible for their efficient up-keep and maintenance. They are also required to make annual inspection of the Ports under their jurisdiction as well as the light houses of the Port Department situated therein and be responsible for their efficient up-keep.
9. They shall inspect the V.H.F/R.T. Stations at the Ports frequently and be responsible for its maintenance.
They are responsible for looking in to the dredging requirements at the Ports. The Mechanical Engineer and Dredging Superintendent shall carry out of the dredging work in close coordination with the Port Officers. A dredging programme shall be drawn up annually by the Port Officers and Mechanical Engineer and Dredging Superintendent and implemented as per requirements and availability of funds.
10. They shall allot the departmental launches and tugs at the Ports to the Shipping interests upon their requisition and collect revenues thereon at the prescribed rates.
11. They shall control and regulate all the boat traffic within the Port limits in accordance with the Harbour craft rules and ensures safe navigation.
12. They shall allot the Port lands on annual licence system for Marine Purposes collecting the prescribed rate of revenues thereon.
13. They shall allot the Port godowns and transit sheds to the Shipping interests for Marine purposes upon requisition by them and collects the revenues thereon at the prescribed rates.
14. They shall attend to pilotage duties as and when introduced and whenever specially ordered to do so by the Director of State Ports.
15. They are responsible to collect revenues, various items of Port Charges, as per the rules and regulations in force, from time to time and shall ensure that the revenues so collected are remitted into the Treasury promptly and within the time limits prescribed under rules to the appropriate heads of account of State Government and also to see the proper accounts for collection as well as remittances etc., are maintained and proper receipts are issued to the parties from whom revenues are collected and be responsible for the regular maintenance of the Cash Book.
:: CARGO HANDLING
CARGO SPECTRUM
Kakinada Anchorage Port:
Kakinada Deep Water Port
Imports:
Murate of PotashRock PhosphateIndustrial SaltUreaCrude Palm OilExports:
RiceWheatMaizeSoya bean MealSoya bean RetractionRice bran ExtractionSandCement
CARGO GROWTH
Kakinada Anchorage Port
Kakinada Deep Water Port
Year No. Of Ships Cargo (In Lakh Tonnes)
2000 164 13 2001 92 5 2002 62 8 2003 234 24 2004 - 2005 158 18 2005 - 2006 195 28 2006 - 2007 251 38 2007 - 2008 298 40 2008 - 2009 228 22 2009 - 2010 123 8 2010 - 2011 125 11
Imports:
Edible OilsPOL (Naphthalene, HSD, SKD, Furnace Oil)Chemicals (Phosphoric Acid, Sulphuric Acid)Gases (Ammonia)Dry Cargo (Wood Pulp, Machineries) Project Cargo(ODCS and heavy lifts)Exports:
Iron OreCement ClinkerMinerals (Bentonite, Feldspar)Lighterage:
Crude Oil.
Year No. Of Ships Cargo (In Lakh Tonnes)
2000 255 15
2001 318 18
2002 508 18
2003 571 35
2004 555 56
2005 1,176 105
2006 1,343 128
2007 1,398 122
2008 2,142 126
2009 3,755 145
2010 2,876 119
2011 2,174 108
:: REVENUE EARNINGS
REVENUE DERIVED
Kakinada Anchorage PortYear Amount (In Crores)2000 6.342001 4.032002 3.012003 7.042004 4.562005 5.662006 10.96
2007 - 08 20.002008 - 09 16.882009 - 10 11.312010 - 11 16.37
Kakinada Deep Water Port
Year Amount (In Crores)
2000 11.00
2001 16.00
2002 4.50
2003 7.75.
2004 14.29
2005 17.03
2006
EXPORTS
1. Aluminium Roofing Sheets2. Bentonite3. Cement4. Cement Clinker5. Cigarettes6. Construction Material7. Cotton Seed Extractions8. Cotton Seed Meal 9. Crude oil (Coastal) 40. Sand10. Crushe bones, harms, hoofs
41. Sesame Cake Extractions
11.Feldspar 42. Sesame Seed Extractions12. Fibre 43. Soap Needles13. Fish Meal 44. Sorghum14. Fruit Jam 45. Soya bean Extractions15. Fruit Juice 46. Soya bean Flakes16. Ground nut Extractions 47. Soya bean Meal17. Ground nut Kernal 48. Stone Dust18. Ground nut Meal 49. Steel Pipes (Galvanised)19. Illepe Extractions 50. Sugar20. Illuminated Sand 51. Sunflower Extractions21. Iron Ore 52. Sunflower Seed22. Machine Tools 53. Sunflower Seed Extractions23. Maize 54. Tea24. Mango Kernal Extractions 55. Tipiaca Chips25. Mango Kernals 56. Tobacco26. Mica 57. Topiaca dried Chips27. Onions 58. Turmeric28. Organic Manure 59. Wheat
29. Palm Kernal Extractions 60. Wheat Bran30. Palmyrah Fibre 61. Wheat Flour31. Paper 62. Yellow Corn32. Rape Seed Extractions 63. Yellow Maize33. Rape Seed Meal 64. Organic Manure34. Red Chillies 65. Project Material35. Rice 36. Ricebran Extractions 37. Salseed Extractions 38. Salseed Extractions (Dollet)
39. Salseed Pellets
IMPORTS
1. Ammonium Sulphate
2. Cement
3. Crude Palm Oil
4. D.A.P
5. Fertilizer of all kinds
6. H.P.K
7. Industrial Salt
8. L.P.G
9. M.O.P
10. N.P.K.
11. Palm Kernals
12. Peas
13. Potassium Chloride
14. Rape Seed
15. Raw Rice Bran
16. RBD Palmolein
17. Rice
18. Rock Phosphate
19. Solar Common Salt
20. S.O.P
21. Soyabean Seed
22. Sugar
23. Sulphate of Potash
24. Sunflower Oil
25. Tea
26. Urea
27. Wheat :: FUTURE DEVELOPMENTS
PROPOSALS FOR DEVELOPMENT OF KAKINADA ANCHORAGE PORT The Anchorage Port under control of Government of Andhra Pradesh is handling at present about 2.0 Million Tonnes of Cargo per annum. The Port has requisite backup infrastructure such as Wharves/Jetties, Transit Sheds Open stack yards and other amenities like Water and Power supply, Road and Rail links. The revenue earnings of the Port are mainly from Port dues, L&S dues. Registration and Renewal fees from steel barges/fishing boats. Rentals on departmental godowns, T. Sheds and Port lands. To enhance the revenue of the Port Department, the existing cargo handling capacity of the Port has to be increased. For this, various measures are to be taken up. To know the exact measures to be taken up for enhancing the cargo handling capacity of the Port and there by its revenue, it is necessary to critically analyse existing infrastructure so as to suggest steps to be taken up. For this a detailed project report on the existing infrastructure and steps to be taken up for enhancing the cargo handling capacity is to
3.5Million tones is presented in detail as below :
DEVELOPMENT PROPOSALS FOR ANCHORAGE PORT TO HANDLE 3.5 MILLION TONNES PER ANNUM
I. STATUS OF WHARVES :
(A.) BURMAH SHELL WHARF
1. Length of the Wharf : 100 Mts.2. Year of Construction : Not known (Appx. 50 years back)
3. Type of Construction: Design particulars not known, R.C.C. piled structures with hard surfaced backup area.
4. Status of Wharf : Manual operations
5. Type of cargo handled: Exports (baggage):- Rice,Wheat, Maize, Rice bran, Cement, Soya beans, Sugar,
6. Present pattern of allotment Wharf shippers
: Allotment is based on first come first serve.
7. Problems in Mechanical
: Due to pressure from shippers handling Mechanical handling was permitted since 1995 by placing steel plates underneath the proclainers for uniform distribution of load up to safe limits. Inspite of all precautions, the area adjacent towharf sunk by about 40Cms. Hence, Mechanical operations stopped and at present manual operations are going on.
8. Extent of availability of stacking area behind the Wharf : 3,000 Sq.Mts. of hard surfaced area.9. No. of barges can be andled on this Wharf
: 3 Barges of 400 T. capacity can be handled simultaneously.
10. Rate of handling – manual : 10 Hours/barge of 400 T.11. How to improve the efficiency : The wharf is used at present for
export cargo by manual means. For using the wharf for import cargo, the wharf is to be strengthenedand following measures are to be dopted for mproving cargo fficiency.- By Introducing Mechanical operations.- By Constructing five loading platforms of size 32 Mts. x 8 Mts. each.- By Increasing the backup area for stacking the cargo. If import cargo is permitted the following cargo can be handled : Urea,DAP (Diammonium Phosphate), MOP
(Murate of Potash),Industrial Salt, Rock Phosphate.
(B). NEW PORT AREA WHARF
1. Length of the Wharf : 613 Mts.
2. Year of Construction: The Wharf Constructed in different spells starting from 1970 to 1985 as a part of development scheme under plan grant.
3. Type of Construction
: The Construction of Wharf comprised driving of continuous RCC interlocking sheet piles driven upto (-) 8.95 Mts. These piles have been anchored by means of anchor piles. The area behind the Wharf is filled up with the sea sand, gravel and hard surfaced at the top.
4. Status of Wharf
: The Wharf is designed to take a surcharge load of 2 T./M². and thereby its usage is restricted to the manual operations upto 14 Mts. Behind the Wharf. Rest of the area in between the Railway siding and Wharf is to be used for movement of trucks.
5. Type of cargo handled
: (a) Exports (By Manual) Rice, Maize, Rice bran, Cement, WheaT, Soya bean. At loading platform – Sand. (b) Imports - At loading Platforms Urea, MOP ( Murate of Potash) Rock Phosphate, Industrial Salt DAP (Diammonium Phosphate) Potassium Chloride.
6. Present pattern of allotment of Wharf to shippers
: Based on the availability, on first come first serve basis, and as per shippers requirement.
7. Problems in Mechanical handling
: As the 14 M. long backup areabehind the wall could not take the load beyond 2 T/M²., the facility is restricted to manual operations only nd the proclainers are not permitted because of its limitations to operate heavy machines on it. To overcome this difficulty and to increase the rate of handling the argo by mechanical means, three umber of platforms were onstructed during 12/2002 pposite to T-Sheds A, B & C long the Wharf Wall in New Port rea.
8. Stacking area behind the Wharf : Stacking of any materials are not allowed behind the Wharf up to 14 Mts. Beyond 14 Mts. the area
available is being used for plying of lorries for loading and unloading of cargo to barges as well as to railway wagons and Transit sheds.
9. No. of barges can be loading handled on thisWharf
: In the area available for three platforms. 3 Barges can be handled at a time for imports. In the rest of the area, 14 Nos. of barges can be handled at a time for Imports /Exports.
10. Rate of handling: (a) Manual - 10 hours / barge of 400 T.(b) Mechanical – 5 hours / barge of 400 T.
11. How to improve the efficiency
: - By introducing Mechanical operations. - By constructing three additional loading platforms of size 32 Mts. x 8 Mts. each.
12. Limitations
: At present most of the cargo handled in New Port Area is export cargo. The export cargo are Rice, Maize, Wheat, Soya Bean, Cement, Rice Bran. These cargoes are baggaged cargoes. The baggaged Crgo are handled by manual. import cargoes such as Rock Phosphate, Industrial Salt, Fertilizers are bulk cargoes, and these cargoes cannot be handled in New Port Area, where already baggaged cargoes are handled so to prevent contamination of ediblecargo.
(C). MATTI POOL WHARF
1. Length of the Wharf : Two wharves of length 44 M. and 27 Mts.
2. Year of Construction : Not known (Appx. 50 years back)
3. Type of Construction: Design particulars not known, R.C.C. piled structures with hard surfaced backup area
4. Status of Wharf : Manual operations5. Type of cargo handled : Mostly Import Cargo - Rock
phosphate and Industrial Salt.6. Present pattern of allotment of Wharf to shippers : Allotment is based first serve basis7. Problems in Mechanical handling : Wharves were constructed long
back, Technical designs are not available. In the absence of technical details, safety of the structure cannot analysed for allowing mechanical operations.
8. Stacking area behind the Wharf : 5,000 Sq.Mts. of hard surfaced area.9. No. of barges can be handled on this Wharf
: 3 Barges of 400 T. capacity can handled simultaneously.
10. Rate of handling : 10 Hours/barge
11. How to improve the efficiency
: - By introducing Mechanical operations. - By constructing three loading platforms of size 32 Mts. x 8 Mts.each.
12. Limitations: The area falls out side ISPS Compound Wall. For developing this Wharf separate Perimeter Wall is to be constructed.
:: OUR VISION The minor ports of Andhra Pradesh Port Department handled 15 Million Tonnes of Cargo during 2005 and is the 2 nd Highest Cargo handling State in Union India. The A.P. State has prepared a perspective development plan in its vision 2020 document for development of Ports according to which 50 Million Tonnes of Cargo by 2009 and 173 Million Tonnes of Cargo by 2020 is programmed to handle
Granite Blocks
We are query owners' representative in Karimnagar. Karimnagar is world famous for Granite Blocks- Tan Brown Colour, Maple Red Colour, Black Colour. You are most welcome to visit India along with your Geologist/ Marker. We offer fresh Granite Blocks infront of you from our mines and friend mines. We also give maximum allowance up to 20 cm in cubic meter. Karimnagar is 150 km from Hyderabad. From Hongong to Hyderabad it is 6 hours journey on flight, If you are
interested to buy our blocks, Our representative will come and escort you from Hyderabad airport till Karimanagar hotel. We can also arrange Chinese food, Chinese translation and other facilities. We make your Hotel, mine visit, selection of blocks, transportation from mine to Kakinada port, export formalities, loading on the ship and other work for you. Regular vessels of PUY VASH, GST etc.., are available from Kakinada to Xiamen and Shibu ports. Our rates are cheaper by 10-20% than your local prices of similar Blocks.
The southern India holds a major market share of granite blocks exports to China, Taiwan, Japan and Italy and out of the total volume china takes about 80%.
Out of 1.5 million tons per year to the far eastern ports, 1.2 million tons are handled by A.S.SHIPPING as break-bulk cargo.Customized infrastructure with all mechanical devices have been created by the company at Ongole in Andhra Pradesh to efficiently handle the orerations.
With regard to Export of Granite Blocks to various destinations, A.S.Shipping AgenciesPrivate Limited, has Stockyards at the following places viz., Surareddy Palem Railway yard, A.P., Numbal Granite Stockyard, Chennai, Dockyard inside Chennai Harbour, Granite Stockyard at Visakhapatnam, A.P. & the Granite Stockyard at Kakinada Deep Sea Port, A.P.
Our Customer's can choose their nearest Stockyards, whereby they can cut down on their Transportation, handling and the most important being the time saved with respect to Transportation of Rough Blocks from Quarries to the Stockyards for Export.
Movement of Granite Blocks are also carried out through Railway Wagons from Surareddy Palem & Karim Nagar to Chennai & Kakinada Ports.
Total logistic support is provided to our customers from the mines to the final destination.
Our services include loading and unloading at the mine site, road/rail transportation, loading of cargo into the ship and ocean freight forwarding to the destination from chennai.
To destinations like Bangkok, Port Kelang, Shangai, Northern Europe and Australia, where break-bulk service is not feasible, granite blocks are containerised and moved.
To containerise the blocks, equipments with exclusive facilities have been created at our chennai CFS and we handle about 600 teus per mont
Break Bulk LinerWe are the Agents in India for Gen Shipping Pacific Pte Ltd., based in Singapore.
A Fleet of Seven Multipurpose Ships of 18500 DWT are operational and they are Fitted with Heavy
Gear to handle up to 120 MT Lifting Capacity.
We can handle any Type / Volume of Cargo ranging from Rough Granite Blocks, Crates, Skids, Bales, Bundles, either in Packed or in Unpacked Condition.
All the Vessels are fitted with TWEEN-DECK to facilitate the handling of Over Dimension Cargo.
Export
We Export Granite Blocks on behalf of Shippers in Break Bulk to Far-East Ports like XIAMEN, HONGKONG, SHIHU, etc., Granite Blocks are exported by us through other line vessels also to MARINA DI CARRARA, ANTWERP, HUALIEN, PASAJES, VIGO and other European
Ports. More than 90% of Granite Blocks which are exported to Far-East Countries are only through us.
Apart from Chennai we are arranging shipments of Granite Blocks from Kakinada & Vizag ports also. At Chennai Port our vessels are available thorough out the year for shipment.
On an average 10,00,000 MT of granite blocks are exported as Break Bulk Cargo through us.
On an average we handle 6000 containers of Granite Blocks in a year.
Apart from the break bulk services, we are also providing C&F agency for shipment of Granite Blocks and Granitefinished Products which
are containerized & Exported to all destinations of the world.
Granite Yard
<< Previous
Next >>
Product SpecificationIn order to cater to the varied requirements of our valued patrons, we have constructed a capacious Granite Yard. This yard is constructed in segmented form so as to ensure a safe and categorical arrangement of granite stone. Furthermore, we have installed various hi-tech machines in our yard to load and transport large blocks of stone in an efficient and safe manner. Additionally, our Granite Yard is constructed in compliance with all set regulations of this field.
Features:
Highly spacious Sophisticated machines
Segregated construction
Act Stock Yard
Next >>
Product SpecificationWe have developed a highly capacious Act Stock Yard. This yard is constructed in segregated form so as to ensure that sourced act stock is stored in an organized manner. We also make sure that our yard has all required safety guidelines. This is done to make sure that material as well as our working personnel remain in safe condition. Adding to this, we have installed some highly sophisticated machines in our Act Stock Yard so as to transit the material in safest possible manner.
Graniet Loading
<< Previous
Next >>Product Specification
Founded in the year 1996, we are one of the most reputed organizations engaged in rendering Graniet Loading service. These services are offered by our professionals in accordance with set regulations of this domain. We have been following all prevailing safety policies while rendering these services. Other than this, we use optimum grade hi-tech machines to execute these services. In order to attain utmost satisfaction of our patrons, we have been executing Graniet Loading service at highly competitive price
Exports are key to the economic survival of a nation . Exports not only help a country earn
foreign exchange, they help create jobs, peace, prosperity, and the power to influence.
To be successful in exporting and importing, it helps to know why so many export and importbusinesses do not succeed. Success cannot be rushed by high hopes. Rather, it comesincrementally.
The success of an export business is often attributed to luck. Work harder and there wilExports l be moreluck. The export success of Taiwan, China, Japan, South Korea, Germany and other exports countries not a miracle, it is the result of hard work. The business miracle will not happenwithout working hard. However, success cannot be rushed by hard work.
The events in a large number of export offices worldwide are comparable to the events in afootball game. It is not unusual to see colleagues kicking responsibilities back and forth, just likefootball players do the ball. It is important that employees' responsibilities are clearly spelled outand that systems of operation are flexible in order to accommodate the rapidly changing needs ofworld markets.
Dangers of Imbalance in International Trade
Trade surplus --- favorable balance of trade ---is an excess of exports over imports.Tradedeficit --- unfavorable balance of trade ---is an excess of imports over exports. In layperson'sparlance, the trade surplus means earn more and spend less, while the trade deficit means spendmore and less.
The trade surplus and deficit is analogous to one person's fortune is another person's misfortune.The danger is imminent in either situation. A country with a record trade surplus is oftenthreatened with sanctions and trade barriers from a deficit-ridden importing country. A countrywith a record trade deficit is usually faced with the internal social upheaval.
The imposition of trade barriers, such as import quotas and higher duties, is nota solution tomeeting the international challenge. The trade barrier will be confronted with a trade retaliation.A trade retaliation will be faced with a counter-retaliation. The conflict will not end if anagreement is not reached. The remedy to beat the trade imbalance is to understand foreigncultures and business practices, and to provide competitive products and services.
It is a good practice to diversify export markets. Concentrating exports to only a few marketsposes imminent danger to an exporting country. Too much export concentration in a marketusually invites protectionist trade laws from the importing country. In case the importing countryimposes sanctions, the effect to the economy of the exporting country and the livelihood of itspeople can be devastating.
1
:: PORT CHARGES
PORT CHARGES at KAKINADA ANCHORAGE PORT LANDING FEES
Sl.No. Commodity Unit of Charges Rates Fixed Rs. Ps.(1) (2) (3) (4)1 Fertilizers all kinds in bags or bulk M.Tons 29.002 Rock Phosphate in bulk M.Tons 29.003 Cement in bags/Cement Clinker M.Tons. 23.004 Rice in bags or bulk + sugar M.Tons 29.005 Articles or goods not specifically
enumerated in the schedule (other than passengers & Seamen’s baggage, ship provisions and stores)
M.Tons 29.00
6 Canal Borne cargo and/or passengersBoat load 69.007 Timber or Bamboos in rafts (canal
borne traffic)Rft. Of 10 Sq.m or part thereof
69.00
8 Liquified Petroleum Gas 1 CM 132.009 Steel Pipes 1 CM 35.0010 Crude Oil 1000 Lts 69.00
SHIPPING FEES
Sl.No. Commodity Unit of Charges Rate Fixed Rs. Ps.(1) (2) (3) (4)1 Iron Ore, Manganese Ore, Ferro
Manganese Slag, Barytes Quartz, Gypsum, Pig Iron and all other ores in bulk
M.Tons 23.00
2 Feldspar, M.Tons 29.003 Granite Stones/Blocks M.Tons 35.004 Coal M.Tons 29.005 Coking Coal, Lam Coal, Steam Coal M.Tons 29.006 Thermal Coal M.Tons 29.007 Rice Bran, Crushed bines, Horns, Hoofs,
Palmyra FiberM.Tons 29.00
8 Groundnut Kernels M.Tons 29.009 Rice in bags or bulk M.Tons 29.0010 Articles or goods not specifically
enumerated in the schedule (other than passengers & Seamen’s baggage, ship provisions and stores)
M.Tons 29.00
11 Illuminated sand M.Tons 25.0012 Tobacco Advalorem 0.12%13 Canal Borne cargo and/or passengers Boat Load 69.0014 Timber or Bamboos in rafts (canal borne
traffic)Rft. Of 10 Sq.m. or part thereof
69.00
15 Liquified Petroleum Gas 1 CM 132.0016 Steel Pipes 1 CM 35.0017 Crude Oil 1000 Lts 69.00
LANDING & SHIPPING DUES
Item No.
Particulars of Articles Unit of charge Rate of Landing and Shipping dues
(1) (2) (3) (4)1 Heavy Machinery and other over
Dimensional Cargo (ODC)-- Ad-valorem 0.29% on the
CIF value of the cargo2 Any sub-merged equipment like
Rigs/Drilling equipment etc. with the vessel.
-- Ad-valorem 0.29% on the CIF value of the sub-merged equipment.
GODOWNS/T.SHEDSSCHEDULE
Port Department having 30 Godowns total capacity 1,73,347.33 Sq.Feet.
Class – A Godowns / T.Shed – Rs. 50.00 per Square Metre, per monthClass – B Godowns / T.Shed – Rs. 25.00 per Square Metre per month:There will be yearly enhancement by 10% and the rates proposed above shall be in force for a period of three (3) years and thereafter fresh revision takes place.”
LAUNCHES/PABLOES/WATERBARGESDRAFT SCHEDULE
Name of the Launch Water Barge
Now reduced charges
Hire
1 2 Tugs & Launches:1. TST Godavari 165+1652. MT Machilipatnam 1653. MT Calingapatnam 1654. MT Kakinada5. 1506. MT Bheemunipatnam 2357. ML Nizampatnam8. MT Coringa 1089. MT Satya 325 HP10. Mechanised BoatsBarge hire for supply of fresh water:1. Minimum 100 Metric Tons2. Above 100 Metric Tons to 200 Metric Tons
46946946950530433612232499780
The revised rentals/annual license are as specified in the Table below:
Mode (per 10 Sq. Mt. or part thereof.)
Annual License System
Rs. 300
Monthly Rental Basis
Rs. 30.00
Weekly rental basis
Rs. 30.00
PORT CHARGES at KAKINADA DEEP WATER PORT I. A) Port Dues: All Sea going Vessels entering Deep
Water Port.Rate per GT Frequency of
payment in respect of the same.
1. Foreign Vessels: Port Dues are payable for each entry.
a. Vessels handling cargo of 1500 tons or less
US$ 0.24
b. Vessels handling cargo above 1500 tons US$ 0.322. Coasting Vessels:
Port Dues are payable for each entry.
a. Vessels handling cargo of 1500 tons or less
US$ 0.16
b. Vessels handling cargo above 1500 tons US$ 0.19
II. A) Pilotage: Fees for pilotage mentioned under is inclusive of towage (Using one or two tugs),
mooring, un-mooring charges for each entry. S.No
.Size of the
Vessel in GTForeign
Vessel per GT
Coastal Vessel per GT
1. Upto 3, 000 US$ 0.35 US$ 0.232. 3, 001 to 30, 000 US$ 0.39 US$ 0.253. 30, 001 and above US$ 0.55 US$ 0.36
B) Detention Charges: 1.If the vessel is not ready to sail/shift/enter within half-an-hour of booking time for
pilot boarding Detention Charges shall be levied as under:
Detention Feea. First Half-an-hourb. Thereafter per hour or part thereof
US$ 350US$ 500
2.If the vessel is not ready to sail/shift/enter after the pilot boards the vessel the detention charges shall be levied as under:
Detention Feea. First Half-an-hourb. Thereafter per hour or part thereof
US$ 250US$ 500
III. A) BERTH CHARGES FOR VESSELS:
S.No. Size of the vessel in GT UnitForeign Vessel Rate per GT
Coastal Vessel Rate per GT
1 Upto & inclusive of 3,000 GTPer day of 24 Hours US$ 0.16 US$ 0.063
2 3,001 to 5,000 GT Per day of 24 Hours US$ 0.11 US$ 0.0423 5,001 to 10,000 GT Per day of 24 Hours US$ 0.099 US$ 0.03784 10,001 to 15,000 GT Per day of 24 Hours US$ 0.077 US$ 0.0325 15,001 to 30,000 GT Per day of 24 Hours US$ 0.061 US$ 0.0216 30,001 and Above Per day of 24 Hours US$ 0.100 US$ 0.0327 Minimum Charges Per Vessel per day US$ 190 US$ 150
B) SHIFTING CHARGES: S.N
o.Description Charges per
Shifting1 Without tug/tugs & Pilot US$ 2352 With tug/tugs & Pilot US$ 1,3103 With Pilot & without
tug/tugsUS$ 850
IV. A) TOWAGE CHARGES: S.
No.
Description Unit Charges
1 Tug of 1, 000 HP & above but below 3, 000 HP
First two hours or part thereof
US$ 1214
2 Tug of 1, 000 HP & above but below 3, 000 HP
Per every additional hour or part thereof
US$ 607
B) LAUNCH CHARGES: S.
No.
Description
Unit Charges
1 Pilot Launch
First two hours or part thereof
US$ 131
2 Per every additional hour or part thereof
US$ 66
C) MECHANICAL EQUIPMENT: i)Mobile Crane Charges: Ite
m No.
Description Unit Unit
Charges
Minimum
Charges
1 Mobile Crane Per Rs. Rs.
20 Tons & Below
Hour or Part thereof
450 2250
2 Mobile Crane above 20 Tons but not exceeding 40 Tons
Per Hour or Part thereof
Rs. 675
Rs. 3375
ii)Fork Lift Hire Charges: Ite
m No.
Description
Unit Unit Charges
Minimum
Charges
1 Capacity upto 2 Tons
Per Hour or Part thereof
Rs. 315
Rs. 1575
2 Above 2 Tons but not exceeding 3 Tons
Per Hour or Part thereof
Rs. 540
Rs. 2700
iii)Charges for Storage Fee: Ite
m No.
Description Unit Slab – I (First
15 Days)
Slab – II (Every
15 days from 16 th day onward
s)1 Covered Space Per 100
Sq.M per fortnight or part thereof
Rs. 5625 Rs. 11250
2 Open Space Per 100 Sq.M per fortnight or part thereof
Rs. 675 Rs. 1350
V. A) CHARGES FOR SUPPLY OF WATER TO VESSELS Descriptio
nUnit Rate Minimum
ChargesSupply of fresh water
1000 Litres US$ 4.50 US$ 225
to vessels at berth.
B) CHARGES FOR STORAGE FEE Ite
m No.
Description Unit Slab – I (First 15
Days)
Slab – II (Every 15 Days from 16 th Day onwards)
1. Covered SpacePer Sq.M oer fortnight or part thereof
US$ 125.00
US$ 250.00
2. Open Space Per Sq.M oer fortnight or part thereof
US$ 15.00
US$ 30.00
VI. A) WHARFAGE: (CHARGES ARE IN INDIAN RUPEES) No. Items Unit Wharfage
(In INR)
1. Acids of all kinds in bags, bulk or otherwise.
1000 Kg 30.00
2. Asphalt Ad valorem 0.75%
3. Barytes 1000 Kg 20.004. Cement & Clinker 1000 Kg 20.005. Chemicals in cases, drums or barrels Ad valorem 0.60 %
6. Chrome Ore & Feldspar & fullers Earth 1000 Kg 31.00
7. Coal 1000 Kg 27.008. Crude Oil, Furnace oil, Diesel Oil,
Kerosene, Motor Spirit, Petrol and other oils
1000 Litres 78.00
9. Drugs and Medicines in bags, cases, drums, etc.
Ad valorem 0.25%
10. Dunnage (mats bamboo’s and woods) 1 CBM 20.00
11. Edible Oils 1000 Litres 44.50
12. Electrical Goods Ad valorem 0.25 %
13. Fertilizers 1000 Kg 32.5014. Fish and Shrimps Ad valorem 0.02 %
15. Grains, pulses and cereals of all kinds 1000 Kg 28.50
16. Granite Blocks 1000 Kg 43.5017. Liquid Ammonia 1000 Kg 60.0018. Liquid Petroleum Gas 1 CBM 149.0019. Machinery and part thereof Ad valorem 0.35 %
20. Molasses 1000 Litres 43.50
21. Naphtha (bulk) 1000 Litres 78.00
22. Oil Cake 1000 Litres 20.00
23. Over dimensional Cargo Ad valorem 0.35 %
24. Palmyra Fibre 1 CBM 20.0025. Phosphoric Acid 1000 Kg 60.0026. Rock Phosphate 1000 Kg 20.0027. Sugar 1000 Kg 28.5028. Sulphuric Acid 1000 Litres 60.00
29. Industrial Salts 1000 Kg 20.0030. Timber in logs, planks, scanting, squares 1 CBM 20.00
31. Tobacco Ad valorem 0.13 %
32. Un-Enumerated goods 1000 Kg 46.50
33. Unknown Goods(Unit Which ever higher is applicable)
1000 Kg / 1 CBM / Ad valorem
47.00 /47.00 /0.35 %
34. Wood Pulp 1000 Kg 40.5035. Waste Paper 1000 Kg 40.50
VII. A) CONTAINER: No Items Unit New
KDWP USD
1. Port Dues GRT 0.2012. Pilotage Charges
a) Upto 3,000 GT GRT 0.330 b) 3,001 to 30,000 GT GRT 0.355
3. Berth Hire Charges a) Upto 3,000 GT GRT 0.150 b) 3,001 to 10,000 GT GRT 0.092 c) 10,001 to 15,000 GT GRT 0.063 d) 15,001 to 30,000 GT GRT 0.040
4. Wharfage on Containers No Wharfage for Containers
Wharfage on Export & Import cargo
As per Schedule – VI
5. Reefer a) Charges for Reefer points i) R 20 8 hours
shiftRs. 330
ii) R 40 8 hours shift
Rs. 385
6. Dwell time i) For empty a) First Seven days (for both
R 20 & R 40) Free
b) 8 th day onwards (for both R 20 & R 40)
USD 0.13
ii) For Loaded a) First seven days (for both
R 20 & R 40) Free
b) 8 th Day onwards (for both R 20 & R 40)
USD 0.13
7. Equipment – Top Loader a) For empty (for both R 20
& R 40)Per Move Rs. 275
b) For Loaded (for both R 20 & R 40)
Per Move Rs. 385
CHAPTER -5 EXPORT DOCUMENTATION AND PROCEDURE and its analysis
Analysis patttern:The nature of the project is of the subjective nature so for the analysis of the available data, the
use various statistical and mathematical and graphical techniques was not required. There were
no additional statistical and technical tool were considered for suitability of the procedure &
problem in order to achieve the desire objective. The study was of the qualitative aspect not the
quantitative. All the data was collected through interviews a secondary data so not tool were used
-
Chapter-6
INTERNATIONAL COMMERCIAL TERMS
EXW Ex Works
FAS Free Alongside Ship
FCA Free Carrier
FOB Free On Board
CFR Cost and Freight(The former acronym of Cost and Freight was C&F )
CIF Cost, Insurance and Freight
CIP Carriage and Insurance Paid To
CPT Carriage Paid To
DAF Delivered At Frontier
DDP Delivered Duty Paid
DDU Delivered Duty Unpaid
DEQ Delivered Ex Quay
DES Delivered Ex Ship
Incoterms or international commercial terms are a series of international sales terms,published by International Chamber of Commerce (ICC) and widely used in internationalcommercial transactions. They are used to divide transaction costs and responsibilities betweenbuyer and seller and reflect state-of-the-art transportation practices
Group F – Main carriage unpaid
FCA – Free Carrier (named place)The seller hands over the goods, cleared for export, into the custody of the first carrier(named by the buyer) at the named place. This term is suitable for all modes of transport,including carriage by air, rail, road, and containerized / multi-modal transport.
FAS – free alongside Ship (named loading port)The seller must place the goods alongside the ship at the named port. The seller mustclear the goods for export; this changed in the 2000 version of the Incoterms. Suitable formaritime transport only.
FOB – Free on board (named loading port)The seller must load the goods on board the ship nominated by the buyer, cost and riskbeing divided at ship's rail. The seller must clear the goods for export. Maritime transportonly. It also includes Air transport when the seller is not able to export the goods on theschedule time mentioned in the letter of credit. In this case the seller allows a deductionof sum equivalent to the carriage by ship from the air carriage.
Group C – Main carriage paid
CFR or CNF – Cost and Freight (named destination port)Seller must pay the costs and freight to bring the goods to the port of destination.However, risk is transferred to the buyer once the goods have crossed the ship's rail.Maritime transport only.
CIF – Cost, Insurance and Freight (named destination port)Exactly the same as CFR except that the seller must in addition procure and pay forinsurance for the buyer. Maritime transport only.
CPT – Carriage Paid To (named place of destination)The general/containerized/multimodal equivalent of CFR. The seller pays for carriage tothe named point of destination, but risk passes when the goods are handed over to thefirst carrier.
CIP – Carriage and Insurance Paid (To) (named place of destination)The containerised transport/multimodal equivalent of CIF. Seller pays for carriage andinsurance to the named destination point, but risk passes when the goods are handed overto the first carrier.
Group D – Arrival
DAF – Delivered At Frontier (named place)This term can be used when the goods are transported by rail and road. The seller paysfor transportation to the named place of delivery at the frontier. The buyer arranges forcustoms clearance and pays for transportation from the frontier to his factory. Thepassing of risk occurs at the frontier.DES – Delivered Ex Ship (named port)e
Where goods are delivered ex ship, the passing of risk does not occur until the ship hasarrived at the named port of destination and the goods made available for unloading tothe buyer. The seller pays the same freight and insurance costs as he would under a C IFarrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, butalso Risk and Title up to the arrival of the vessel at the named port. Costs for unloadingthe goods and any duties, taxes, etc are the Buyer. A commonly used term in shippingbulk commodities, such as coal, grain, dryfor chemicals - - and where the seller either ownsor has chartered, their own vessel.
DEQ – Delivered Ex Quay (named port)This is similar to DES, but the passing of risk does not occur until the goods have beenunloaded at the port of destination.
DDU – Delivered Duty Unpaid (named destination place)This term means that the seller delivers the goods to the buyer to the named place ofdestination in the contract of sale. The goods are not cleared for import or unloaded fromany form of transport at the place of destination. The buyer is responsible for the costsand risks for the unloading, duty and any subsequent delivery beyond the place ofdestination. However, if the buyer wishes the seller to bear cost and risks associated withthe import clearance, duty, unloading and subsequent delivery beyond the place ofdestination, then this all needs to be explicitly agreed upon in the contract of sale.
DDP – Delivered Duty Paid (named destination place)This term means that the seller pays for all transportation costs and bears all risk until thegoods have been delivered and pays the duty. Also used interchangeably with the term"Free Domicile".The most comprehensive term for the buyer. In most of the importingcountries, taxes such as (but not limited to) VAT and excises should not be consideredprepaid being handled as a "refundable" tax. Therefore VAT and excises usually are notrepresenting a direct cost for the importer since they will be recovered against the saleson the local (domestic) market.
a g e
Chapter-7 S Suggestions& Conclusion
Suggestions The management has to look after and assign tasks to its employees from time to time so that things
may move faster
The Organisation may provide training and development programs for the existing employees
to develop professional skills and talents
The Organisation has greater scope for increasing its exports by exporting more quantities.
Conclusion The Organisation is however successful in carrying on its business operations. It marked improvement
in its performance over the years. There is even greater scope for expanding its trade activities making a
remarkable excellence in its field of business. It has been proved to be successful in achieving its
objectives and fulfilling its functions effectively.
Chapter-8 Bibliography
Bibliography1. Information taken from the web sites of :
KAKINADA Seaports ( www.kakinadaseaports.in)ANDHRA PORTS (www.andhraports.com)
2. Manual of Export Documentation by P.Veerareddy & P. Mamatha[ Commercial Law Publications India Private Limited ]
3. Export – Policy, Procedures & Documentation by M.I.Majan[ Snow White Publications Private Limited ]