spit 201012
TRANSCRIPT
-
7/24/2019 Spit 201012
1/39
AT
ynamic Logistics Pvt. Ltd.
In Partial Fulfillment For
PGDIT
INSTITUTE OF MANAGEMENT DEVELOPMENT AND
RESEARCH
SUBMITTED BY
DEEPAK MUNDADA
PGDIT-II (2009-11)
Roll No. 12
ACKNOWLEDGEMENT
-
7/24/2019 Spit 201012
2/39
Internship Report IMDR,
Pune
I express my sincere gratitude to the following people without whom this internship would have
not been possible. I would like to thank Mr. Raiza Ahmed, !" operations, "#$# for giving me
a chance to work with "ynamic #ogistics .I am also grateful to Mr. %antosh &iri, Mr. %ikandar
'adaf, Mr. (alinder )hite, my mentor Mr. %andeep Mhaske, whose cooperation and guidance
helped in successful completion of my internship .I also thank all the staff, *A+s working with
"ynamic logistics.
I would like to thank all the employees of "ynamic #ogistics who help me to understand and
euipping me with the tools reuired for an individual to work in this Industry. )hus working in
I*" was a worth mentioning experience. I am thankful to them for a considerable value addition
to my knowledge related to international trade .I would specially like to thank Mr. $aritosh
&ombi, of -M #ines, for his advice and guidance towards '/!** operations and cooperation
intended to me in successful completion of the internship.
Also I would like to express my sincere gratitude to Mr. A0ay 'agre, -x1director of IM"R,
Mrs. /ipra )iwari, and Mr. Manish Mishra for giving me a chance to undergo this kind of
experience and without whose support
"eepak Mundada
Deepak Mundada Page 2 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
3/39
Internship Report IMDR,
Pune
INDEX
OBJECTIVE OF THE SUMMER INTERNSHIP
)he main ob0ective behind this summer internship programme is to make oneself aware about
the Import 1 -xport procedures and also the documentation reuired for the same. In the
meanwhile to learn the working of I*" "ighi.
Deepak Mundada Page 3 Dynamic Logistics, ICD Dighi.
Sr. No Contents P!e no
" O#$e%t&'e (
) E*e%+t&'e s+,,r-
/ W0t &s n ICD 1
( Co,2n- 2ro3&4e 567
I,2ortnt ent&t&es &n &nternt&on4 tr8e n8 t0e&r 3+n%t&ons 96"1
1 I,2ortnt 8o%+,ents n8 ot0er ter,&no4o!&es "56)"
5 Gener4 e*2ort 2ro%e8+re n8 8o%+,ents ))6)7
7 E*2ort 2ro%e8+re 3o44o:e8 t ICD )96/(
9 I,2ort 2ro%e8+re 3o44o:e8 t ICD /6/1
"; I,2ort 8+t&es n8 8o%+,ents /16/9
"" B&o!r20- (;
-
7/24/2019 Spit 201012
4/39
Internship Report IMDR,
Pune
Also to thoroughly understand the operations in the field of Import and -xport and to understand
the complex working procedures of the customs department and how the custom clearance does
takes place.
2orking here in "ynamic logistics has also helped me experiencing a total logistics organization.
EXECUTIVE SUMMAR.%oon the company became a pioneer in the field of #ogistics and %upply *hain
Management. 7urther the company has I%! :
-
7/24/2019 Spit 201012
8/39
Internship Report IMDR,
Pune
LOCATION
)he company is located at "ighi in $une .Its well connected with air and road. )he gateway port
is Mumbai located 9>< kms.
FACILITIES
It has all the operating facilities, a container yard, Import warehouse, bonded warehouse, -xport
warehouse.
Also have the various euipments reuired for loading and unloading of the containers and also
the forklifts for handling of the cargo. A cargo scanner installed by the customs is also present in
the import warehouse
Administration facilities include the customs office headed by the deputy *ommissioner,
%hipping line offices, '/!** offices, and *A+s, freight forwarders and surveyors.
!ther facilities include a latest communication centre with all the facilities like phone, fax, and
internet photocopy etc.
)he premise is well protected with high scale compound walls and round the clock security. )he
organization also houses a full fledged software centre and has its own warehouse managementsystem with a full track and trace management systems.
SOME IMPORTANT ENTITIES INVOLVED IN THE BUSINESS
OF INTERNATIONAL TRADE
CUSTOM HOUSE AGENT?S
)he imports into India and -xport out of India take place only through ports and airports
declared under %ection B of the *ustom Act. )he international trade has therefore necessarily
Deepak Mundada Page " Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
9/39
Internship Report IMDR,
Pune
developed and concentrated at such ports and airports like Mumbai, *hennai, *alcutta, "elhi,
*ochin, Candla, /ishakhapattanam, and )uticorin.
)rade, no doubt is also through minor ports all among the coast. )he importers who consume the
goods imported and exporters who produce the goods for export however are spread all over the
country. )he distance between the point of importDexport and the exportersDimporters happens to
be uite long and the time1involved clearance deters the trade for handling the clearance
themselves. )hey have to necessarily depend on agents positioning themselves at such ports and
are specialized in such 0obs. In fact such institutions have been in existence almost from the
beginning of the trade.
*ustoms ouse Agent @CHAis a person who is licensed to act as an agent for transaction of any
business relating to the entry or departure of conveyances or the import or export of goods at any
*ustoms station. nlike the work related to *entral -xcise and Income )ax, the customs
facilities cannot be attended to leisurely, as clearance is allowed only on completion of
formalities and payment of duty, where due. )o meet this situation alone this provision for
licensing *ustom ouse Agents to represent importerDexporter for clearance work has been made
in the *ustom Act 4under sec. 9;E5
A *ustom ouse Agent has to be not only knowledgeable in *ustoms #aws, procedure and
documentation, but also alert all the time, closely following the instructions or changes brought
about by issue of $ublic 'otices from time to time. e is in a very peculiar position that though
he is employed by importers Dexporters, he is licensed by the *ustoms dept. )he *ustoms ouse
Agent is answerable both to the *ustoms dept. for doing the clearance correctly and
expeditiously. In case he defaults, the clearance may be delayed and demurrage etc. incurred. is
knowledge and experience particularly in the areas of classification and valuation of goods and
more so in procedural formalities to be compiled with, in *ustom big role to play in the
clearance of goods through customs.
ROLE OF C.H.A=6
A role of C.H.Astarts81
o 2hen an exporter or
Deepak Mundada Page # Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
10/39
Internship Report IMDR,
Pune
o An importer asks him to work for him.
o A C+sto, Ho+se A!entfirm prepares81
o 3ill of entry or
o %hipping 3ill
o As per the reuirement of the customers, for these services the customer provides them
with all the reuired documents like
o Invoice,
o $acking list and other relevant documents.
A *..A firm should try to prepare documents on time to get goods delivered. )he *..A
collects these documents from the customer and according to that they prepare shipping bills or
bill of entry. After preparing the documents some time they collect the goods from the exporter
and with the documents they go to I*" or at the $!R) of "I%*AR&- and get the goods
custom cleared. If an exporter or an importer has some special reuirement like if they want their
goods to be exported under special schemes then they prepare documents according to that and
vice versa for an importer.
)hey collect
services charges
services tax
custom charges and
!ther charges from the customer.
MANAGEMENT AT C.H.A
FILING=
7iling is an important process of any *..A company. )hey have to maintain several files as that
helps them to know how much business they have done in a financial year so they can know their
condition at the end of a year.
)hey have to prepare separate files for both imports and exports, this also helps them to know the
profits they have made in a year and expenses incurred by them in a year.
Deepak Mundada Page $% Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
11/39
Internship Report IMDR,
Pune
)hese files contain all the documents given to *..A *ompany by an importer or an exporter. %o
these files contain all these documents, services charges taken by a *..A for clearing of goods
from the customs.
FREIGHT FORWARDER
7reight 7orwarding is a vital part of international trade. )he company will face many difficulties
if it does not take into account how the goods will be delivered to the market.
)he issue of freight forwarding must be considered at an early stage of the development of the
export marketing plan as it raises several concerns that need to be addressed uickly. 'ot only
does the exporter need to understand which I'*!)-RM% to stipulate and work to, but the
method of transport also needs to be considered 4road, rail, sea, air5. $ackaging is also another
factor that needs to be considered, as is insurance. Much of the hassle can be taken out of the
exporter+s hands by using an effective freight forwarder, but as with any supplier care needs to be
taken to ensure that the supplier meets the needs of the organisation.
A freight forwarder is an agent who handles export shipments for a fee. ence, freight forwarder
plays a very important role for exporters. ere are few of the many activities that you will
conduct as a freight forwarder8
International documentation and packaging
*arrier and routing information
-xport license assistance
Marine insurance rates and coverage
2arehouse and distribution services
azardous materials shipping compliance information
ROLE OF A FREIGHT FORWARDER=6
)he 7reight 7orwarder plays a very important role. e is the entity who on behalf of the %hipper
does all procedural 6 documentation formalities involved to get the goods *ustom *leared.
Deepak Mundada Page $$ Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
12/39
Internship Report IMDR,
Pune
)hey also look after warehousing 6 carting of cargo before shipment of export consignments 6
after a discharge of import cargoes, by sea carriers. )here is a important aspect of their work1
consolidation of shipments.
)he role of a 7reight 7orwarder is as 7ollows81
%election of routes
"etermination of shipping documents
"elivery to carriers 6 collection of documents
Ceeping the consignor 6 consignee informed
Assisting for preparation of shipment documents
$reparing 6 processing documents through *ustoms, port 6 !ctroi authorities, payment
of fees, duty etc.
FLOW CHART SHOWING FUNCTIONS OF FREIGHT
FORWARDER=6
Deepak Mundada Page $2 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
13/39
Internship Report IMDR,
Pune
In the above diagram, -9, -? 6 -= send their #*# cargo to *7% 9. )he consolidator stuffs the
cargo into the container. )his container could be his or of another shipping line. )he process is
called FConso4&8t&onG. )hen the container is sent overseas via ocean 0ourney, to *7% ? in
another country. )here the container is de1stuffed and #*# cargos are given to the respective
importers.
)he above process involves both consolidation 6 freight forwarding. )oday, the services of a
forwarder are usually available with a consolidator, and the forwarder often engages in the
consolidation of cargo. ence, the term forwarder is often used synonymously with the
consolidator.
C0r!es= )he forwarder usually receives the forwarderHs charges from the exporter.
In the ocean shipment, the forwarder may HbuyH the shipping space, in a special arrangement with
the carrier, and HresellH the space to individual shippers, instead of receiving a commission.
In such an arrangement, the forwarder functions as an independent distribution or logistical
company known as the NVOCC4non6'esse4 o2ert&n! %o,,on %rr&er5.
NVOCC @Non Vesse4 O2ert&n! Co,,on Crr&er=
&enerally they are the entities, that don+t own the vessels. )hey reserve space on the vessels of
the shipping lines for the containers that are being dispatched by them, as they have tie1up with
Deepak Mundada Page $3 Dynamic Logistics, ICD Dighi.
ContainerCFS 1CFS 1
Stuffing
Vessel Container
De-stuffing
CFS 2CFS 2
Importer
2
POL
POD
OCEAN JOURNEY
Importer
1
Importer 3Exporter
3
Exporter
1
Exporter
2
-
7/24/2019 Spit 201012
14/39
Internship Report IMDR,
Pune
shipping lines. 7or this the shipping line charges some extra money to them for the same. )his is
because the carriers have the benefit of dispatching the container on board the ship for the
particular destination even though the space is full on the vessel. )hey have an advanced
reserved space on the vessel for their containers. )hese carriers have the authority to issue the
3ill of #ading. )he freight forwarder ensures that your goods receive the priority it reuires
your documentation is appropriately filled and your goods reach its destination in the specified
time.
SURVE5 Invoice no 6 "ate
E5 'o of $ackagesB5 "escription@5 &ross weight 6 'et weight
In case of survey of cargo, the details examination is mentioned i.e. the condition of cargo
where damaged or proper. If damaged, then total description and reason for damage of goods
is given in survey report.
Deepak Mundada Page $4 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
15/39
Internship Report IMDR,
Pune
CONSOLIDATORS
*onsolidators, as the name suggest is an entity which is responsible for consolidation of cargo.
In the case of #*# shipment 4lesser than container load5, the consignment is sent to
consolidators. 2ho then after getting other sufficient #*# consignments which are supposed to
be shipped the same destination, books the place in container. After which as the place in
container is utilized, the container is shipped to particular destination. ence by converting #*#
shipments to 7*# consolidators earn huge profits.
CUSTOMS
*ustoms clearance of the goods, is done by the customs Authorities functioning under the overall
change of the Ministry of 7inance.
At the apex there is *entral 3oard of -xcise 6 *ustoms in the Ministry of 7inance.
)he 3oard is headed by the *hairman and assisted by members.
*ustoms perform following roles,
a))o ensure that whatever items move into or out of the country are in accordance with thelaws of the land, and not, prohibited or banned.
b) 3oth in regard to sea cargo as well as air imports, the customs authorize and appoint
FcustodiansG and all imported goods unloaded in a customs area remains in their custody
and till these are cleared for home consumption, or are warehoused or transshipped as
provided in the law.
c) )he items of import 6 export are properly assessed to duty tax or any other charge
leviable there on.
d) All the regulatory provision application to items of exports 6 import are being duly
complied with the exporter 6 the importer.
e) )he import D export trade statistics are regularly compiled 6 made available to different
authorities for their guidance 6 necessary action.
SHIPPING LINE?S
Deepak Mundada Page $5 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
16/39
Internship Report IMDR,
Pune
a5 )he shipping line is responsible for the preparation of 3ill of lading.
b5 It is also responsible to deliver in the goods in the like order and condition as received
from the consignee.
c5 )he shipping line is also responsible for maintaining the goods in proper manner and
filing the I&M.
SOME IMPORTANT DOCUMENTS AND OTHER
TEMINOLOGIES
I,2orter6E*2orter Co8e @IEC
I-* is a prereuisite for any exporter or importer. All the below1mentioned categories of
exporters as well as importers reuire an I-* 'o. which is the basic reuirement in international
trade.
Manufacturer -xporters8
Merchant -xporters8
"eemed -xporters8
Deepak Mundada Page $ Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
17/39
Internship Report IMDR,
Pune
%ervice -xporters8
)hird party -xporters
A&r:- #&44 @AWB=
Means the document made out by or on behalf of the shipper, which evidences the contract
between the shipper and carrier4s5 for carriage of goods over routes of the carrier4s5.
Mster A&r:- B&44 @MAWB):It is issued by the airlines to the *onsignerD7reight
7orwarder, which certifies that goods are received by the airlines for transit
Ho+se A&r:- B&44 @HAWB= )his document is issued by the freight forwarder to
the consigner, when the cargo is #*#.
ARE @A224&%t&on 3or Re,o'4 o3 E*%&se For,=
It is an application for removal of excisable goods for exports from India by any mode i.e. sea,
air, post and land. It is reuired in cases where sealing of goods and their examination takes place
at the place of dispatch and also for dispatch of goods without examination.
)hese forms are reuired to be printed in different colours to facilitate disposal of goods for
export in bond or under rebate of duty.
Bre B+4 Cr!o=
)he cargos that transit in loose form, and are not containerized due to their size.
Bre B+4 A!ent=
Deepak Mundada Page $! Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
18/39
Internship Report IMDR,
Pune
An agent who deals in break bulk cargos or breaks consolidated consignments into their
individual parts.
B&44 o3 48&n!=
3ill of #ading is a document issued by the shipping company or its agent, acknowledging the
receipt of goods mentioned in the bill for the shipment on board the vessel and undertaking to
deliver the goods, in the like order and condition as received to the consignee or his order,
provided the freight and other charges specified in the bill of #ading have been duly paid.
Cons&!nee=
)he party to whom the goods are to be delivered.
Co,#&ne8 Trns2ort Do%+,ent=*ombined )ransport "ocuments are used for movement
of goods from I*" that are set up in various centers in the country to destinations
EDI @E4e%tron&% Dt Inter%0n!e=
)he transfer of structured data from one computer to another 4detail of shipping or air cargo data
interchange5.
EP @E*2ort Pro,ot&on Co2-=
It is the final copy of shipping bill, which is issued by the customs. It is generally used for
getting benefits and is submitted to the consigner+s bank as the proof of export.
FCL @F+44 Cont&ner Lo8=
2hen the container is loaded fully with the cargo.
LCL @Less T0en Cont&ner Lo8=
Deepak Mundada Page $" Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
19/39
-
7/24/2019 Spit 201012
20/39
Internship Report IMDR,
Pune
India will be entitled to a concessional rate of import duty in these countries. )he &ovt. of India
authorized the export agencies to issue the certificate of origin.
Mtes Re%e&2t=
Mate Receipt is issued by the *hief of the vessel after the cargo is loaded onto the ship. )his is
later presented in the office of %hipping agent to be exchanged with the 3ill of #ading. )his
document is transferable in nature and is formed in %tandardized Aligned 7ormat. )he main
details if the Mates Receipt is as follows8
95 'ame of the exporter
?5 $lace of receipt
=5 /oyage number
;5 $ort of loading
>5 $ort of discharge
E5 $ort of delivery
B5 Marks and numbers
@5 *ontainer number
:5 "escription of goods
9
-
7/24/2019 Spit 201012
21/39
Internship Report IMDR,
Pune
)he place where the goods are delivered and carrier+s liability ends.
S4ot=
)he space occupied by the container on the vessel.
Trnss0&2,ent=nloading and #oading of the cargo in between the transit.
Ter,&n4=
)he place where the cargo is loadedDunloaded under the customs supervision.
GENERAL EXPORT PROCEDURE
Deepak Mundada Page 2$ Dynamic Logistics, ICD Dighi.
R-*-I$) !7 !R"-R 3J -K$!R)-R
!' 3A%I% !7 I'/!I*- A'" $A*CI'& #I%) )-
'-K) %)-$ I% "-*I"-"
7A*)!RJ %)77I'& !7 -K$!R)% !R *!')A*)*..A A'" 7R)-R $R!*--" A**!"I'J
ASK THEM TO DO THE STUFFING
*!')A*) *..A 7!R *%)!M *#-ARA'*-
-
7/24/2019 Spit 201012
22/39
Internship Report IMDR,
Pune
Deepak Mundada Page 22 Dynamic Logistics, ICD Dighi.
&-) )- *-*C#I%) 7R!M )- *%)!M%
A7)-R %3MI))I'& )- I'/!I*-, $A*CI'&
#I%). -)*
SUBMITTING THE INVOICE, PACKING LIST
*-*C )- *-*C#I%) A'" %3MI) I) )! )-
*%)!M% A'"RECEIVE%I$$I'& 3I## '!
RECEIVE SHIPPING BILL NO$R-$ARA)I!' !7 %I$$I'& 3I## "-$-'"I'& !'
")J 7R-- !R '!)
OR NOT2A)-/-R %I$$I'& 3I##1"-$3 D"RA23A*C I)
A% )! 3- A%%-%%-" A**!R"I'J.
*AR&! I% !77#!A"-" A) I*"D *7% A'" *%)!M
-KAMI'A)I!' )AC-% $#A*-.
R-&I%)RA)I!' !7 &!!"% )AC- $#A*- 3J
-KAMI'-R, "-$)J *!MMI%%I!'-R, A$$RAI%-R
A "-)AI#-" *-*C )AC-% $#A*- #IC-. 'A)R-
!7 &!!"%, /A#- !7 &!!"%, 2-I&), A'"
I'*-')I/-% #IC- "-$3 AR- $R!$-R#J *-*C-".
A7)-R /-RI7I*A)I!' #-! 4#-) -K$!R) !R"-R5
I% I%%-"
7I'A# $RI')!) !7 %I$$I'& 3I## I% )AC-'
C
O
NT
T
.
-
7/24/2019 Spit 201012
23/39
Internship Report IMDR,
Pune
After understanding of the procedure, we could understand the documents involved therein and
also its role in the procedure. 2hich are as below mentioned8
In'o&%e8
Deepak Mundada Page 23 Dynamic Logistics, ICD Dighi.
&!!"% %)77-" I')! )- *!')AI'-R I7 '!)
"!'- -AR#I-R
&!!"% #!A"-" !' )! )- /-%%-# '"-R
%$-R/I%I!' !7 $R-/-')I/- !77I*-R
*!')AI'-R %-A#-" 3J )- %I$$I'& #I'- A'"
)- $R-/-')I/- !77I*-R
#I'-RD77 I%%-% 3I## !7 #A"I'& 2I* %)A)-%
LR-*-I/-" !' 3!AR"+ !R L%I$$-" !' 3!AR"+
)-' MA)-% R-*-I$) I%%-" 3J /-%%-#+% *A$)AI'
I' 2I* &!!"% AR- #!A"-". )I% I% "!'- A7)-R
)A##JI'& *AR&! 2I) %D34"$#I*A)-5.
-K$!R) $R!M!)I!' *!$J I% &-'-RA)-" A7)-R
7I#I'& -&M *!$J. I)+% $R!!7 %!2I'& )A) &!!"%
AR- -K$!R)-". A#%! %-" )! *#AIM "-$3I'*-')I/-%
C
O
N
T
.
-
7/24/2019 Spit 201012
24/39
Internship Report IMDR,
Pune
An invoice is a document which contains the detailed description of the goods consigned, order
of acceptance or contract no., I-* 'o., *osigner+s 6 *onsignee+s address, port of loading, port
of destination, country of origin, marks and number, number of packages, special marks 4if any5,
uantity shipped, selling price, terms of payment, terms of delivery amount of freight and
insurance 4if applicable5 etc. It is a good evidence of the contract of sale. )he invoice should be
strictly according to the contract of sale and should be on the paper of seller and must be signed
by him or by the person acting on his behalf.
P%&n! L&st8
$acking #ist gives the information like the invoice number, number of pieces, number of pieces
per package, number of packages, dimensions of packages, general description of cargo, net
weight, gross weight, etc.
Letter O3 Cre8&t8
#etter of *redit is a written understanding by a bank 4issuing bank5 given to the seller
4beneficiary5 at the reuest and in accordance with the instructions of the buyer 4applicant5 to
effect payment up to a stated sum of money within a prescribed time limit and against stipulate
documents. )hese stipulated documents are commercial invoice, certificate of origin, insurance
policy 4if reuired5 etc. *redits may either be revocable or irrevocable.
S0&22&n! B&448
%hipping 3ill is an important document reuired by the customs authorities for allowing
shipment. It is prepared by the exporter D *A and contains several details. )he documents that
are reuired to prepare the shipping bills are as follows8
95 7our copies of Invoices
?5 7our copies of $acking #ist
=5 %elf "eclaration 7orm
Deepak Mundada Page 24 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
25/39
Internship Report IMDR,
Pune
*ontract, #etter of *redit, $urchase !rder
T-2es o3 s0&22&n! #&446
"uty drawback&reen 14B5
"uty -ntitlement $ass 3ook 4"-$35..3lue 14B5
"uty -xemption -ntitlement *ertificate... 2hite 14B5
7ree %hipping bill.2hite 14E5
-xport oriented nit. 4-!5$ink 14E5
"uty free shipping bill..Jellow 14E5
)he figure in the bracket indicates the number of shipping bill copy used under different scheme
of the shipment of the good.
95 D+t- Free S0&22&n! B&44=)his type of shipping bill is used for the goods for which
neither duty nor is cess applicable. It is also used for the goods manufactured out of
materials imported under the duty free import. It is white in color.
?5 D+te S0&22&n! B&44=)his type of shipping bill is used for goods sub0ect to export dutyD
cess, which either entitled or not entitled for drawback. It is used separately in respect of
which export duty is levied on the basis of 4a5 market price 4b5 tariff assessed value. It is
yellow in color.
=5 Dr:#% S0&22&n! B&44=If the export of goods is simultaneously by duty free and D or
sub0ect to export duty D cess, this type of shipping bill is compulsorily to be used whether
alone or
;5 Along with any other shipping bill. It is green in color.
>5 S0&22&n! B&44 3or s0&2,ent E*6Bon8= case of goods imported for re1export and kept in1
bond, this type of shipping bill is used. It is pink in color.
E5 DEPB S0&22&n! B&44=)his kind of %hipping 3ill is used when the export is under the scheme
of "-$3. It is blue in color.
!riginal. .*ustoms *opy
Deepak Mundada Page 25 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
26/39
Internship Report IMDR,
Pune
"uplicate.*ustoms *opy
-xport $romotion *opy..-$ copy
NuadruplicateO... %cheme *opy
$ort trust !riginal...$ort
$ort trust "uplicate..$ort
$ort trust )riplicate. "ynamic logistic.
NOTE
;) copy is optional and is reuired according to the scheme under which the goods are shipped.
In the case where only six copy of shipping bill is reuired ;thcopy is not used whereas in the
case where seven copy of shipping bill is used ; thcopy is used.
B&44 O3 L8&n!=
3ill of #ading is a document issued by the shipping companyD its agent acknowledging the
receipt of goods mentioned in the bill for the shipment on board the vessel and undertaking to
deliver the goods in the like order and condition as received to the consignee or his order
provided the freight and other charges specified in the bill of #ading have been duly paid.
T0e B&44 o3 L8&n! +n8er!oes t0e 3o44o:&n! ste2s=
95 )he exporter should give to the shipping company a complete set of the 3ill !f #ading
along with the Mates Receipt.
?5 )he shipping company shall calculate the amount of freight on the basis of weight or
measurement as recommended by the recognized *hamber of *ommerce.
=5 )he exporter shall pay the thus calculated freight amount.
;5 )he shipping company shall return the 3ill of #ading to the exporter duly signed and
supported by the reuisite adhesive stamps.
>5 )he 3ill of #ading eventually are, through the banking channels sent to the importer so that
he can take the delivery of the cargo after making the due payments.
Deepak Mundada Page 2 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
27/39
Internship Report IMDR,
Pune
)here are generally ?1= copies of the 3ill of #ading prepared. )he masterD agents of the
shipping company duly sign all the copies. All the originals are eually valid for taking the
delivery of the goods. !nce one copy is so utilized, the rest of the copies are rendered null
and void for the purpose. tmost care should be taken to see that none of the copies go in the
wrong hands. )he exporter should take all the original copies form the shipping company or
its agent as the case may be.
A few more copies of 3ill of #ading are also issued, marked as L'on1 negotiable+, which
cannot be used to take the delivery of the goods. )here are various types of 3ill of #ading
depending upon the terms of #etter of *redit. %ome of them may not acceptable under #etter
of *redit unless specifically permitted. )hey are also distinguished on the basis of the
contents and validity of the 3ill of #ading. )hey are as follows8
95 C4+se B&44 o3 L8&n!=)his contains the additional clauses limiting the responsibility of the
%hipping *ompany and indicating defective conditions of the goods. )his 3ill of #ading is
not acceptable unless specifically authorized.
?5 C4en B&44 o3 L8&n!= It is the one that does not contain any superimposed clause or
annotation, which expressly declares a defective condition of the goods andD or packaging.
=5 St4e B&44 o3 L8&n!=Is the one, which is tendered to the bank at so late a date that though
within the validity of #etter of *redit, it is impossible for it to be dispatched to the consignee
in time to reach him before the goods themselves arrive at the destination port.
FOB V4+e= 6 @FREE ON BOARD
)he value of the goods needed to be represented in the 7!3 term. In case the term of the contract
is 7!3 then it is same as the invoice value, but in the case of the *67 and *I7, freight or freight
and insurance need to be deducted respectively as the case may be.
PMV Present Mret V4+e= 6
&enerally it is 9< P greater than the 7!3 value. It is taken because of the assumption that the
market value of the goods increases during the time gap.
Deepak Mundada Page 2! Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
28/39
Internship Report IMDR,
Pune
B&44 o3 entr-=
A list of goods received at a customhouse for export or import. An importer of any goods
presents the 3ill of -ntry
EXPORT PROCEDURE FOLLOWED AT ICD
" ROUND TRIP FACTOR
-
7/24/2019 Spit 201012
29/39
Internship Report IMDR,
Pune
) FACTOR< STUFFIING
/ ICD STUFFING
)his process begins from the premise of the exporter
Deepak Mundada Page 2# Dynamic Logistics, ICD Dighi.
)he loaded container comes back to I*" and the entire*ustoms formalities takes place
&ateway $orts D *7% at ('$),Mumbai
-mpty container is sent to the 7actory of the exporter for
stuffing
*argo is stuffed in the container and completion of all excise
formalities
%tuffed container comes to I*" to complete all documentation
processes and the custom clearance and the container is sealed
#oaded container gate pass is generated and departure of the
shipment for ('$)
*ontainer loaded in the vessel and sent to the destination
*argo is loaded in trucks and sent to "ynamic logistics $vt #td
"ighi
)he cargo is unloaded here and stacked at the specific location
in the export warehouse
-
7/24/2019 Spit 201012
30/39
Internship Report IMDR,
Pune
EXPORT AND CUSTIOM CLEARANCE PROCEDURE AT
D5 )he transporter picks up the container of a particular %hipping line and sends it to the
factory of the exporter.
E5 )he container gets stuffed and brought to I*""ighi for the reuired documentation and
custom procedures
B5 7ollowing documents are generated
4a5 If the factory of the exporter lies outside the $*M* area = copies of the loaded gate
pass are generated
4b5 9 copy is sent to t chief superintendant of $*M* !ctroi post.
Deepak Mundada Page 3% Dynamic Logistics, ICD Dighi.
"eparture of the container from I*" to ('$) loading on the
vessel and departure to the destination.
"ocumentation procedure, customs examination of the cargo to
be exported
*ustoms cleared cargo is stuffed and the container is sealed
-
7/24/2019 Spit 201012
31/39
Internship Report IMDR,
Pune
4c5 9 copy is given to the transporter.
4d5 9 copy is retained with the gate in charge of the I*".
4e5 If the factory lies in the $*M* limits, = copies of the empty container gate pass along
with = copies of the loaded gate pass are generated .all of them are distributed to the
authorities as the above. )he documents are useful for the fulfillment if the !ctroi
formalities.
@5 )he *A on then submits the shipping bills to the customs department .%hipping bills
serve as a specification of the goods to be exported
:5 )he role of the customs starts from here, so the appraiser scrutinizes the documents
carefully, and if needed he indicates the examiner for the same. )hen the process of
assessment takes place.
9
-
7/24/2019 Spit 201012
32/39
Internship Report IMDR,
Pune
truck no. and gate pass of "#$#. In case of any damage to seal or any suspicion the cargo is sent
back to the I*" "ighi or permitted to enter. )he truck will reach to specified container yard
where the container is unloaded from the vehicle. )he container should reach to the container
yard before the cut off time. 'ow days it is mandatory for the exporter to inform to the custom
of port of shipment ?; hour before the scheduled time of shipment. )he shipping line files -&M
-xport &eneral Manifest. %hipping #ineD Airline issue 3ill of #adingD air way bill when the
goods is received by the shipping line. 2hen the goods are physically exported the shipping line
issue Mate Receipt to the customs. )he mate receipt is forwarded along with the transference
copy by the custom of port of loading to the custom of I*" "ighi. !n receiving the transference
copy and mate receipt the I*" "ighi customs write the detail of the mate of receipt on the back
of the -$ copy at the specified space. )he I*" "ighi customs release the -$ copy to the
concerned *A along with the scheme copy and AR-. )he -$ copy along with &R is reuired to
be submitted to Authorized 3ank through which the payment will be realized. %cheme *opy is
reuired for any incentives and AR- for the drawback of the -xcise duty paid on the exported
goods.
PROCEDURE FOLLOWED FOR AIR EXPORTS AT ICD
*A -xporter after noting %hipping 3ill approaches I*" and files reuest 7l for
*arting of cargo along with %hipping 3ill, Airways 3ill, *ommercial Invoice and$acking list 4!$)I!'A#5.
4)his activity involves collectionH of *argo wm several exporters and consolidation at
"ronagiri ub5
%hipping 3ill8 -xport specification is prepared for customs. )hey reuire to inspect the
goods after the shipping bill is prepared to verify the goodS being exported. *ustoms
allow the goods to be exported and the drawbacks and other export benefits based on
%hipping 3ill After receiving reuest I*" issues a &$ 7; 4= copies5, 9 copy for &ate In charge 4I*"5,
? copies for transporter out of which one copy !ctroi. !ctroi issues a debit memo but this
is only for cargo arriving from area other than $*M* limit. If factory is within $*M*
limit there is no need to pay !ctroi.
Deepak Mundada Page 32 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
33/39
Internship Report IMDR,
Pune
!nce cargo arrives at the gate security allows the cargo to enter on seeing the &$ and
records the time, exporter details, cargo description, no of packages and uantity.
$artyD*A approaches "#1*R for issue note for unloading the cargo at I*" 2arehouse.
*A -xporter gets cargo cleared by customs and obtains %hipping 3ill 4)ransference
*opies5
"# obtains $ermission1letter of the customs for transit through *3) and after that
prepares stuffing sheet for stuffing cargo in *3). An approved surveyor 4Master Marine5
surveyors the goods and produces certificate of measurement, document prepared by the
surveyor as a proof of measurement.
After stuffing 1 *3) is sealed by customs and stuffing report is made on %hipping 3ill. -xport &eneral Manifest 4-&M5 1 E copies )ransit $ermit 4)$51E copies and Inland 2ay
3ill 4I235, = copies are prepared by "# and endorsed by customs.
-xport &eneral Manifest8 1 prepared by "#. It is a summary of all the cargo that is loaded
onto the truck. It is for reference of customs at Mumbai.
)ransit permit8 1 is prepared by "# and signed by customs, stating that loaded truck is
heading towards %A** 4%ahar Air *argo *omplex5
)ransference *opies, -&M 49 copy5, )$ 49 *opy5 are put in the envelope and sealed
by *ustoms $une for Airport *ustoms. )he sealed envelope is handed to transporter and
!ctroi formalities fulfilled after which the vehicle is allowed to leave for the air port.
.
Deepak Mundada Page 33 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
34/39
Internship Report IMDR,
Pune
GENERAL IMPORT PROCEDURE THAT IS FOLLOWED
Deepak Mundada Page 34 Dynamic Logistics, ICD Dighi.
-'NIR-J )- IM$!R)-R
I'7!RMA)I!' A% $-R )- NA)A)I!' 3J )-
-K$!R)-R
*!'7!RMA)I!' !7 )- $R*A%- !R"-R 3J
)- IM$!R)-R
-K$!R)-R $R-$AR-% )- "!*M-')% A'"
%-'"% )- 3I## !7 #A"I'& )R!& 3A'C )!
)- IM$!R)-R
IM$!R)-R MAC-% $AJM-') )! )- -K$!R)-R
)R!& )- 3A'C
IM$!R)-R R-*-I/-% "!*M-')% 7R!M )-
3A'C A'" A'" )-M !/-R )! )- *A
!' )- 3A%I% !7 )- %AM- *A 7I#-% 7!R )-
3I## !7 -')RJ
M-A'2I#- &!!"% R-A* )- "-%)I'A)I!'4IM$!R)-R+% *!')RJ5
)-' )- 3I## !7 -')RJ 'M3-R I% R-*-I/-"
7R!M )- *%)!M%
"-%)77I'& )AC-% $#A*-, A%%-%M'-) )AC-%
$#A*- A'" A"I)I'& )AC-% $#A*- A'"
A%%A%M-') !7 )- ")J $AJA3#- I%
*A#*#A)-"
C
O
N
T
-
7/24/2019 Spit 201012
35/39
Internship Report IMDR,
Pune
IMPORT DUTIES AND DOCUMENTS
*ustoms duties are levied on the goods as per rates specified in the schedule to the customs
tariff. Import duty is charged practically on all the items except food1grains, fertilizers, life
saving drugs and euipment etc.
Bs&% D+t-:It may be at the standard rate or in the case of import from some countries, at the
preferential rate.
A88&t&on4 C+sto,s D+t-: )his is eual to excise duty leviable on like goods produced or
manufactured in India. It is commonly known as countervailing duty or */". Additional duty is
charged for import of specific items from specified countries with a view of protecting domestic
industry from unfair in0ury.
C+sto,s D+t&es= Most of the customs duties are ad /alerom. /aluation of goods for customs
purposes is done as per the principles laid down in the customs valuation 4determination and
prices of imported goods5 rules 9:@@. 2hen goods attract specific rate of duty, there is no
problem but when duty is ad /alerom, customs and importers have disputes on value of goods.
Deepak Mundada Page 35 Dynamic Logistics, ICD Dighi.
A7)-R )I% ")J $AJM-') I' )- 3A'C
)R!& )- )RE *A##A'
-KAMI'A)I!' )AC-% $#A*-, !) !7 *AR&-
&I/-' 3J )- *%)!M%
$AJM-') !7 )- !*)R!I, A'" &!!"% R-A*
)! )- "-%IR-" #A!*)I!' !7 )- IM$!R)-R
-
7/24/2019 Spit 201012
36/39
Internship Report IMDR,
Pune
*ustoms value the goods in terms of section 9; of the customs act, 9:E? for the determining the
customs duty.
E*e,2t&on Cess= )he central government can exempt any specified goods from the levy of
custom duty generally or by special order either absolutely or conditionally in
public interest. %imilarly, certain cess is leviable on specified articles as duties of
customs and is passed on to the administering agencies nominated under the
respective statutes
.
Do%+,ents In'o4'e8 &n I,2orts8
B&44 O3 Entr-8 )he 3ill of -ntry is the document on the strength of which clearance of
imported goods can be done. )he form of the 3ill of -ntry has been standardized by the *entral
3oard of -xcise and *ustoms. As soon as the importer receives the advice of arrival of the vessel
the importers are reuired to present a document known as 3ill of -ntry, either for ome
*onsumption or for warehousing the goods. )he 3ill of -ntry is noted in the Import "epartment.
T-2es o3 B&44 o3 Entr-=
95 &oods -ntered for ome *onsumption are cleared on 2hite 3ill of -ntry.
47orm 'o. ??5It is to be submitted when the imported goods are to be cleared on payment of
full duty for consumption of the goods in India
?5 &oods entered for warehousing are removed Hinto bond on Jellow colour In13ond 3ill of
-ntry. 47orm 'o. ?=5 It is to be submitted when the imported goods are not reuired
immediately the importer but here they are to be stored in a warehouse without payment of
duty under a bond and cleared later when reuired on payment of duty. )his enables the
importer to defer payment of *ustoms "uty until the goods are actually reuired by him.
=5 &oods cleared ex1bond for ome *onsumption on payment of duty on &reen colour -K1
3ond 3ill of -ntry.4 7orm 'o. ?;5 It is used for clearing goods from the warehouse on
Deepak Mundada Page 3 Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
37/39
Internship Report IMDR,
Pune
payment of duty. )he goods are classified and valued at the time of clearance from the
*ustoms $ort. /alue and classification are not determined on such 3ill of -ntry.
)he rate of duty payable is that rate which is applicable on the date of removal of goods from the
warehouse
7or preparing the bill of entry the documents that are reuired are as follows8
95 Invoice
?5 $acking #ist
=5 3ill of #ading
;5 "! 4"elivery !rder5
>5 $urchase !rder
E5 *ertificate of !rigin
B5 #icense copy, 3ond certificate 4If reuired5
COMMERCIAL INVOICEAS AN IMPORTANT DOCUMENT
)he invoice must include at least the following information8
%ellerHs complete name, postal address, and telephone and fax number and bank
information Invoice number and date
%ellerHs reference, business I", foreign trade number 4/'5
3uyerHs reference, order number and date
7ull name and address of the buyer 4and addressee, if not the same5
'ame and address of the recipient of the goods
*ountry of origin of the goods
*ountry of destination
)ransport information, e.g. method, route
)erms of delivery 4e.g. *I7 'ew Jork, Inco terms ?
-
7/24/2019 Spit 201012
38/39
Internship Report IMDR,
Pune
-xact definition of goods
*ustoms tariff designation, in most cases a E1digit % designation
Nuantity of goods8 nits according to the trade practice, gross and net weight, other units
reuired by the customs tariff of the purchasing country. $rice information of the goods in the agreed currency, unit and total prices by types of
goods "iscounts andDor any additional charges with their criteria
-xporterHs signature and name clarification.
Deepak Mundada Page 3" Dynamic Logistics, ICD Dighi.
-
7/24/2019 Spit 201012
39/39
Internship Report IMDR,
Pune
BIBLIOGRAPH