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ROLE OF PORT OPERATION DEPARTMENTAT

LOUIS DREYFUS COMMODITIES IND.PVT.LTD (KACHCHH)

A PROJECT REPORT Submitted by

Viral D. Mehta

Batch 2010-12

Roll No. 10066

ToDirector (PGDM)

in partial fulfillment of the requirements of

Tolani Institute of Management Studies, Adipur

for the award of the degree of

Post Graduate Diploma in Management

Tolani Institute of Management StudiesPB No.11, LilashahKutiya Road, Adipur370 205 (Kachchh).

Ph: (02836) 261466, 262187 Email: [email protected],www.tolani.org/tims

JULY 2011
http://www.tolani.org/timshttp://www.tolani.org/timshttp://www.tolani.org/timshttp://www.tolani.org/tims


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Table of contents

Sr.

No.

Description Page

No.

1 Methodology. 7

2 Introduction to LDCommodities. 8

3 About Bhimasar Plant. 15

4 Procedure of receiving and dispatching crude oil. 20

5 Functions of port operation department at LDC. 27

6 Procedure for clearance of Import and Export of goods. 29

A.Import. 29

B. Export. 37

7 Findings. 44

8 Bibliography. 45


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List of figures

List of Figure / Charts

Sr.No.

Title of Figure / Chart Page No

1.1 LDC operates/is present on 13 main Platforms, whichare organized in 4 segments

9

2.1 Business of LDC 10

3.1 Process flow chart for LDCI plant 15


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List of Abbreviations

Acronym Meaning

CHA Custom House Agent.

DO Delivery Order

HO Head Office.

HOD Head of the Department

LD Louis Dreyfus

LDC Louis Dreyfus Commodities.

QA Quality Assurance

RPO Refined Palm Oil.

SEV Sugar and Ethanol Mills.

SKU Sugar and Ethanol Mills.

GATT General Agreement on Tariffs and Trade

DEEC Duty Exemption Entitlement Scheme

DEPB Duty Entitlement Pass Book

EDI Electronic data interchange

SIIB SPECIAL INTELLIGENCE ANDINVESTIGATION BRANCH


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METHODOLOGY

1) Research Objective:

Primary Research Objective:

To have an overview of role of port operation department.

Secondary Research Objective:

To identify functions of port operation executive.

To know type of vehicle use in road freight of edible oil.

To understand the clearance procedure followed by clearance companies.

2) Type of Data Required:

Here Primary & Secondary both data are required

3) Limitation of Study:

Less time

Limited area of study

Not proper response from responders


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About Louis Dreyfus Commodities

Louis Dreyfus Group is a diversified French private company that is involved in

agriculture and energy commodities (global processing, trading and merchandising). Itowns and manages ocean vessels, develops and operates telecommunicationsinfrastructures and is involved in real estate (development, management and ownership).

Louis Dreyfus companies are present in more than 53 countries, with 72 offices. Majoroffices are located in Geneva, Beijing, Buenos Aires, Paris, So Paulo, New York andConnecticut.

Aggregate average annual gross sales in recent years have exceeded $120 billion. Thecompany employs 35,000.

The company was founded by Leopold Louis-Dreyfus in 1851. His great-grandson,Gerard Louis-Dreyfus was president and CEO of the Group until 2006. He is also thefather of American actress Julia Louis-Dreyfus.

LDCommodities is a world leader in the processing of agricultural products and themerchandising of a diverse range of commodities. The Group is privately held, controlledby the Robert Louis-Dreyfus trust and approximately 20% employee-owned. Foundedand based in Europe, LDCommodities enjoys strong regional presence in North andSouth America, Europe, Asia, the Middle-East and Africa.

The Groups diversification and expansion strategy has enabled it to post outstanding

year-on-year growth, with six leadership positions and ten major trade flows covered. Itis the number one cotton and rice merchant worldwide and ranks in the top three inorange juice, wheat, corn and sugar and in the top five in oilseeds and coffee. In addition,LDCommodities is the second largest sugarcane crushing and renewable energy group inthe world.


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Inside the LDC Group

Figure: - 1.1

PROTEINS: Oilseeds, Grains, Rice, Freight, Finance

Experience, expertise and scope for growth well into the futureThe Grains and OilseedsPlatforms are the Groups longest-standing businesses and responsible for building itsreputation. In 1851, Leopold Louis-Dreyfus created the original business bycommercializing wheat in Switzerland. Since then, the Group has naturally expanded itsexpertise into the corn and soybean markets as well as the rice market, building a solidinternational presence through time.

TROPICALS: Cotton, Juice, Coffee, Sugar

Growth linked to a keen understanding of the dynamics of demographics around theworld.None of the Groups businesses illustrates more clearly LDCommodities ability tooperate at every crucial step of the value chain, in particular in the fast-developingBrazilian agricultural market.

.LDCOMMODITIES-SEV: Sugar and Ethanol Mills Business


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To further integrate its presence in the value chain and in a fast growing Brazilian sugarmarket, LDCommodities is also involved in the sugarcane processing through LOUISDREYFUS COMMODITIES-SEV.

OTHER: Metals, Milk, Fertilizers Seizing new market opportunitiesLDCommodities continually pursues future growth

and diversification with other activities, such as Metals, Milk and Fertilizers and has aleading position in copper, zinc, lead concentrates, copper cathodes, cobalt, andprecious metals raw materials.

Value Chain

A solid presence at every step of the value chain enables us to exploit arbitrageopportunities

LDCommodities is strongly anchored at every step, from production andorigination, storage and logistics, primary processing, sales and marketing andmarine logistics to distribution.

Figure: - 2.1

OrganizationGlobal Overview


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LDCommodities Executive Group (Globally)

Serge Schoen- Chief Executive Officer

CiroEchesortu- President and Chief Operating Officer Commercial

Claude Ehlinger- Chief Financial Officer

Michel Paulin- Chief Operating Officer Integration

Nigel Mamalis- Chief Compliance and Risk Officer

Andrea Maserati- VP Global Human Resources and Communication Paul Akroyd - Sugar Platform Head

Franois Bloch - Development Director

Miguel Catella- Finance Platform Head

Kevin Grimes- Freight and Metals Platforms Head

TrishulMandana- Coffee Platform Head

Bruno Melcher- CEO LDC-SEV

Joseph Nicosia- Cotton Platform Head
http://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=245#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=245#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=246#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=246#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=247#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=247#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=248#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=248#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=257#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=257#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=390#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=390#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=249#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=249#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=253#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=253#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=254#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=254#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=256#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=256#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=258#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=258#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=259#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=259#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=261#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=261#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=261#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=259#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=258#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=256#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=254#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=253#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=249#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=390#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=257#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=248#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=247#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=246#tophttp://www.ldcommodities.com/-Corporate-Governance,22-.html?id_article=245#top


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LDCommoditiess key success factors

Major participant and Leader in six of the ten major trade flows:

1stin cotton and rice merchant worldwide

2ndin sugar global merchant Top three in orange juice, wheat, and corn Top five in oilseeds and coffee

Strong origination and industrial presence in South America

Major exporter of agricultural commodities Expected to remain one of the worlds leading regions in agri-commodity

origination LDCommodities established as a major player, and is continuing to develop its

presence

Integrated information network and fundamental analysis capability

Information exchange between originating/processing assets and sales/marketingcapabilities creates valuable synergies and thorough fundamental analysiscapability.

State-of-the-art market and credit risk management


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4thin Brazil

3rdsoyameal distributor in Europe

2ndinternational soya oil merchant

Combination of key assets, deep origination and distribution roots and access torelevant flows solid reputation in the oilseeds market is the result of more than 70 yearsof experience. Strong distribution channels at destination. Focus to maintain the rightcombination of recognized trading and research skills and a balanced fixed-asset base.

Plant wise details

Indonesia - Greenfield palm oil plantations in joint-venture.

4 plants in Brazil - processing soybeans and cotton seeds into vegetable oil(crude and refined) and meal

3 crushing plants in South Latin America:

o General Lagos (Argentina) - soybean oil, meal, and biodiesel

o Timbues (Argentina) - soybean oil and mealo Caaguazu (Paraguay) - soybean oil and meal

2 plants in North America:

o Claypool (US) - soybean oil, meal and biodiesel

o Yorkton (Canada), canola oil (crude and refined) and meal

1 plant in Europe:

o Wittenberg (Germany) - rape meal, rape oil, biodiesel and pharmaglycerin

2 plants in China:

o Bazhou - soybean oil (crude and refined) and meal

o Zhangjiagang (leased) - soybean oil and meal


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Kandla (India) - crude oil refining and fractionation

About Bhimasar Plant

Refinery of Palm oil and soybean oil.

The Bhimasar plant is basically an oil refining plant which refines the crude

edible palm to refined palm oil and crude degummed soybean oil to refined

soybean oil. They also have separate laboratory section within the plant to

check the quality of received oil as well as oil which is ready for dispatch.


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Capacity - 1,200 tons per day

Refining capacity of a plant is 1200 tons per day. Plant has a separate unit for packing oil

in plastic bags. They outsource the corrugated box and 15 liter Steel jar. Some of thewell-known loyal customers of LDC are BRITANNIA, PARLE, ITC, Mrs. Bector Foods,

Bonn Foods, Surya Foods, Haldiram etc. and Micro Ink, Makwell for making Inks.

Employees

80 permanent employee and 70 contract based worker Louis Dreyfus belives and hire the

person who is multi skilled, multitasking and posses extra skills therefore they have less

employees at Bhimasar plant. The plant is continuous working plant i.e LDC have 3

shifts. They also have 70 contract based workers. As per demand, plant head will give the

number of employees required and HR department do the arrangements for the same.


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Total of 14 departments

Including Execution Department which takes care of logistics activities of firm.

1) Accounting department

2) Purchase

3) Marketing

4) Operation

5) Logistics

6) Port operation

7) Health and safety

8) IT

9) Quality

10) Transport

11) HR

12) Packaging

13) Production

List of products being manufactured at Bhimasar Plant - Kachchh

LDcommodities India has been manufacturing its oil products under the brand nameVibhorin different packaging sizes as mentioned below the target market is north partof India.

Soya bean

Vibhor Refined Soya Bean

15KG Tin

1Ltr Pouch (12X1)15Ltr Tin

1Ltr Pouch (12X1) Vitamin

15KG Tin (Vitamin)

5Ltr Jar (5X4)

15 Ltr Jar


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Palmolein

Vibhor Refined Palmolein

15KG Tin

1Ltr Pouch (12X1)15Ltr Tin

1Ltr Pouch (12X1) Vitamin

15KG Tin (Vitamin)

Vanaspati

Vanaspati

15KG Tin1Ltr Pouch (1X16)

Louis Dreyfus Commodities in INDIA

IMPORTto India:-

Palm oil from Malaysia and Indonesia

Crude degum soya oil from Argentina.

Timber from Malaysia and Africa for trading.

EXPORTfrom India:-

Sugar

Soya milk


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Red seed milk

Maize

Cotton

Domestic ConsumptionIndia

Refined oil

RPO

Soya bean

Cotton seed oil

(Consumer pack and bulk)

Logistics Support

6 Ports: 3 terminals in Santos Port (Brazil), Paranagu Port (Brazil), GeneralLagos (Argentina), Timbes (Argentina)

3 river terminals: So Simo and Perderneiras (Brazil), Angostura (Paraguay)

Barge convoys in Uruguay and Brazil

Elevator, export terminals and in-land silos in Argentina, Uruguay, Brazil and theUS

Core Values of LDC


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LDCommodities strong, long-standing corporate identity and values have been built eversince the founding of the Group over 150 years ago. They are constantly evolving anddisseminated to ensure the successful integration of new employees

Diversity

Commitment

Entrepreneurship

Humility

Over time, these values have guided the firm in decision-making processes both

internally as well as with its counterparts. In other words, they have provided theguidelines for the firm to remain open to constant learning.

Procedure of Receiving crude and refined oil at Kandla Port, Gujarat.

Crude oil purchase activity is carried out by trading desk at India head officebased in Gurgaon. Crude oil is imported from Brazil, Argentina, Malaysia andIndonesia. This is then sent to Bhimasar Plant for refining purpose.

High seas purchase

In case of high seas basis, an agreement is done with the selling party and thisagreement is handed over to CHA for clearing the cargo. The copy of this

agreement is also sent to account department for their record.

Here seller nominates storage tanks at terminal storage and gives intimation toplant about tank number and quantity and other information such as grade of oil,certificates and important documents pertaining to clearance of goods etc.


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Kandla Port Officer would then perform aQAofrandomly selected samples of oilimported. If the results are satisfactory, QA officers informtheirfindings to planthead and give permission to lift consignment.

The necessary documents like delivery order, Bill of Lading handed over to

transporter to carry out lifting of this oil consignment. The transporter submitsthis document at terminal and start lifting from designated tanks.

In case of self purchase.

LDCommodites is also engaged in selling Soya oil, Palmoline oil and Vanaspati under itsbrand named Vibhor. Hence, the firm imports crude oil, refines it and sells in Northernpart of India. This method of purchasing crude is for self-use is called Self Purchase.

While importing crude oil, vessel agent intimates about vessel arrival. On receiptof this information terminal allocation and surveyor appointment are done byLDCommodities (Buyer) and information about vessel arrival given to both traders and HO. CHA arranges cargo clearance process.

On vessel arrival surveyors arranges sampling from ship tanks for qualitychecking and the samples are also send to QA (Kandla refinery) for crosschecking. Discharge operation from ship tanks are monitored by surveyor anddischarge is done in the port storage tanks. After complete discharge, surveyordraws samples from terminal storage tanks for complete quality checks. Surveyorwill by dip method finalize the quality of received quantity. Surveyor then sends


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this data of quality and quantity to trading desk at HO and gives advice aboutlifting.

The necessary documents like delivery order, bill of lading handed over totransporter to carry out lifting of this oil. The transporter submits this document at

terminal and start lifting from designated tanks. Surveyor ensures the condition ofeach tanker reported for crude oil loading.

The tanker reports at factory gate security and security divert the tankers frommain gate to load out through Weigh Bridge. Weight is recorded on the slip.

The load out personnel at Weigh Bridge checks the accompanying documents,and on being found complete inform QA of LDCommodities. QA checks thecondition of seal on the tanker received from the port.

QA draws a sample of oil from each compartment and prepares a compositesample for testing as per inspection plan.

In the event of the tanker seal is observed to be damaged, QA informs plant headand head execution over the telephone. A Head executive investigates suchdeviation with the transporter and maintains record as per procedure for purchase.

On completion of unloading, security person visually inspects the tanker and signsthe vehicle movement pass as confirmation of complete unloading.

Stock verification (Quality perspective)

The stock position of all crude oil, refined oil, by-products and liquid chemicals ischecked by load out operator by the Dip method and the results are beingrecorded in the dip register and the stock report in soft copy format and the sameis submitted through e mail to plant head ,process head and head executive at theplant.

On first of every month, stock verification is undertaken as mentioned above bythe shift officer in the presence of a team comprising of plant manager, executivesand account manager and records are maintained as mentioned above.

Transfer of refined oil to packing section.


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Refined oil received from refinery through pipeline is stored in tanks. The oil is refinedon continuous basis and the storage of the same is done in specific tanks based on verbalinformation from refinery whether the oil is meant for bulk packing or consumer packing.

Load out receives requisitions for release of oil for packaging through oil transfer note.Every morning load out receives a tank farm analysis report through an email from QAinforming the quality of products in the various tanks and their intended customer.

On the basis of the tank farm analysis report received from QA for the day load outoperator identify tank from which refined oil is to be transferred in quantities mentionedon the oil transfer note received from packing section.

Quantity of oil released is measured through the flow meter and records are maintainedon transfer to packaging record.

Dispatch of packed oil in tankers for bulk supply

As and when the customer or broker request for delivery, HO verifies availability ofstocks for dispatch received from Execution Section by email and generates a DeliveryOrder and forwards the same through email to execution section at LDCI Kandla Plant,The DO provides serial number of DO along with details of product, name of thecustomer, quantity, destination, tanker number and rate.

The tanker on arrival is parked in parking area and the driver is advised to report at maingate. Security enters the details on the reporting register and prepares and attaches a

tanker turnaround time sheet and directs the driver to the execution section. Functionaryfrom execution enters the details of tanker number, name of the customer and transporter,product and destination and reporting time on the Tanker Reporting Sheet, Securityinforms QA over telephone to inspect the tanker for ensuring that it is fit for loading.

QA undertakes the tanker inspection as per Empty Tanker Fitness Certificate andindicates the result as either Accepted/rejected and forwards the same to Execution


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Section. Awaiting the decision, the tanker continues to be parked inside the LDCIparking bay under the supervision of the security. Tanker rejected as unfit is returned.

On being declared as Fit for Loading Execution Section forwards fitness Certificate,Lorry Receipt, and DO to the main gate for allowing tanker entry into the plant facility.

Security checks the tanker or truck as per the vehicle checklist and safety instruction andif found satisfactory prepares a Vehicle Movement Pass and records the details on the oiloutward Register. At this point security hands over the relevant documents to the driverand allows the tanker entry into the plant facility and directed to proceed to theweighbridge for weighing. Tare weigh is recorded on the system and slip is generated.

Every morning load out receives a tank farm Analysis report through email form QAinforming the quality of products in the various tanks and their intended customers.

Load out operator checks the products details mentioned on the Do presented by the

driver and based on the results on the tank farm analysis report, identifies the tank fromwhich the product is to be loaded.

Based on these load out operator loads the tanker as per delivery order and recordsdetails of product. Tanker, tank number from which oil has been unloaded, quantity andtime of both loading in bulk load out operations log sheet and in the system. Oncompletion of loading, QA is telephonically informed for undertaking sampling.QAdraws samples in duplicate. Labels and seals them and handover one sample to the driverwhile the second one is retained by QA as a control sample. Control samples are retainedin QA for 3 months. QA prepares a certificate of analysis for every tanker and forwardsthe same to Execution section for onward dispatch to concerned customer.

The gross weight of the tanker is measured, checked against the requirement on the copyof the DO with the driver, and recorded on the weighbridge slip. In case excess oil hasbeen loaded, slip is not generated and the vehicle is returned to loading point forunloading excess quantities. Excess oil is unloaded into rework tank from where it ispumped into the crude oil tank for reprocessing. The tanker is again weighed on aweighbridge and a final weigh slip is generated.


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Weigh bridge operator prepares outward gate pass in triplicate, and forward 2 copies ofthe same to execution and one is retained by him. At this juncture the tanker is sealed byQA and the same is verified by the security.

Execution section verifies the DO, LR Slip, Vehicle pass, weighbridge slip, outward gatepass, and certificate of analysis and accordingly generates an invoice in triplicate. Theinvoice along with these documents are required legal forms is sent on to the main gatefor releasing the tanker.

Security records the details on the Oil Outward Register and provides two copies ofinvoice along with a copy of each of the documents received from Execution section tothe driver, and returns the second set of documents to Execution Section.

Dispatch of packed oil

Execution section informs stocks of finished packed products to marketing HODon daily basis, and asks for dispatch plan.

As and when location wise DO sheet is received from HO, Execution sectionreviews stock in required quantities and prepares a DO versus dispatch sheet and

circulates this to head packing and execution section.

Execution section identifies the DOs which could be executed ensuring full truckloading with available materials. Accordingly, execution sections by telephoniccommunication hire trucks from the approved transporters for the dispatch ofpacked products.


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The details of the truck on arrival are recorded by security in the reporting registerand a tanker turnaround time sheet is prepared and handed over to the driver.Driver is then directed to the execution section for loading of bulk and packed oil.

On the basis of the DO versus Dispatch sheet, execution section generates a

loading slip and hands over the same along with the lorry receipt either to driveror the security to facilitate the entry of the truck into the plant.

Security checks the truck as per vehicle (truck) checklist/safety instructions, and iffound satisfactory, prepares a vehicle movement pass and records the details inthe oil outward register.

Security hands over the documents as mentioned above to the driver and allow thetanker to proceed to weighbridge for weighing.

Tare weight is recorded on the system and Weightment slipis also generated in

presence of supervisor on duty at weighing bridge.

On instructions from packaging section on phone, Security personal organizesspread of dried grass on the floor of truck which acts as buffer and preventstransmission of jerks/shocks to the packaged products thus preventing leakages intransit.

The truck is again sent to weighing bridge to record the weight of the truck withdried grass on it and weighting slip is generated which accounts from the weightof the grass too. The weight of the dried grass is generated in the system, which istaken into account after loading of the truck with packaged product.

The personnel from the packaging department (loading supervisor) load thepackaged commodities in the truck as per detail on the loading slip, and recordactual details of batch number, quantity SKUwise and theoretical weight on theloading slip. The theoreticalweight is calculated based on number of cartons etcloaded in the trucks.

The loaded vehicle is then directed to the weighbridge for taking it weight. Theweighbridge operator compares the weight of products as generated by weightingbridge with the theoretical weight recorded on the loading slip by the loadingsupervisor. If the variationbetweenthe two is within acceptable limits i.e. (+/-50kg), steps at above are followed and the vehicle is allowed to leave. However ifthe variation is beyond the acceptable limits, the loaded vehicle is returned forrecounting of tins and cartons etc.


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The loading supervisor verifies the quantity loaded in the truck and confirms thesame on the loading slip. The vehicle is Weighed on the weighbridge and releasedas per details mentioned at above.

Physical stock verification (Quantity perspective)

Physical stock are reconciled with stock registers once a week. During thisprocess, if any packaged product is found damaged, leaking, suitable action istaken including change of packaging.

Annual verification of stocks is undertaken on the first working day of the financial year(1styear),

Functions of Port Operations Department at LDCommodities

To do arrangement of transport vehicle.

All the decision regarding purchasing of crude oil is done by trading desk of LDC.Trading desk will let know about order placed, expected date of order arrival and port ofdischarge to purchase department. Purchase department will pass on same data torespected port operation executive and to logistics department. After getting call frompurchase/marketing department, port operation executive will do arrangements fordifferent types of vehicles as directed. vehicles on hire basis are booked via


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Booking Agents or

Brokers

All transporters and the actual owner of vehicle do not have direct contact with

the industry. But booking agent has direct connection with the industry people.They arrange vehicle from the broker and actual vehicle owners as per therequirement of industry. Following is the characteristics of both;

(1) Booking Agent: - Do business on margins from company

- Mediator between company and broker

- May not have own vehicle

- Earns around 3% to 7% margin

(2) Broker : - Arrange vehicles to booking agent for company

- Deal with sub-broker and vehicle owner

- Do business of fixed commission

Generally trucks (for carrying finished goods) used by LDC are stainless steel

tankers the main reason to hire such tankers at higher rate is to avoid probability

of having particles in oil and iron tankers (for supplying the oil nearby place at

economical rate) are used to send the goods/oil at mentioned destinations. The

authority to finalize the rates is given to port operation executive. Some of the

regular destinations are Hardwar, Delhi, Hyderabad, Bangalore, Noida and Nasik.

Arrangement for warehouse.

Selection of Warehouse is an important activity, commodities which are eitherimported or exported by LDC such as Sugar, Soya milk, Red seed milk, Maize,Cotton, are required to be stored in warehouse until it is transported. Whileselecting the warehouse the authorized person has to see risk associated with

warehouse, cost of warehouse (whether it is charged per sq.foot basis or on per tonbasis),facilities provided by warehouse owner, sufficient staff for working,advanced technology for handling and storing the commodities, It also includesnegotiation and finalization of warehouse rates. The authority of fixing andfinalizing is given to port operation executive.

Verification of shipping documents and its handover to CHA


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detailed customs clearance formalities of the landed goods have to befollowed by the importers. In regard to the transit goods, so long as these arementioned in import report/IGM for transit to any place outside India,Customs allows transit without payment of duty. Similarly for goodsbrought in by particular vessel aircraft for transshipment to another customs

station detailed customs clearance formalities at the port of landing are notprescribed and simple transshipment procedure has to be followed by thecarrier and the concerned agencies. The customs clearance formalities haveto be complied with by the importer after arrival of the goods at the othercustoms station. There could also be cases of transshipment of the goodsafter unloading to a port outside India. Here also simpler procedure fortransshipment has been prescribed by regulations, and no duty is required tobe paid.

For other goods, which are offloaded importers, have the option to clear thegoods for home consumption after payment of the duties levied or to clear

them for warehousing without immediate discharge of the duties levied interms of the warehousing provisions built in the Customs Act. Everyimporter is required to file in terms of the Section 46 an entry (which iscalled Bill of entry) for home consumption or warehousing in the form, asprescribed by regulations.

If the goods are cleared through the EDI system no formal Bill of Entry isfiled as it is generated in the computer system, but the importer is requiredto file a cargo declaration having prescribed particulars required forprocessing of the entry for customs clearance.

The Bill of entry, where filed, is to be submitted in set, different copiesmeant for different purposes and also given different color scheme, and onthe body of the bill of entry the purpose for which it will be used isgenerally mentioned in the non-EDI declaration.

The importer clearing the goods for domestic consumption has to file bill ofentry in four copies; original and duplicate are meant for customs, third copyfor the importer and the fourth copy is meant for the bank for makingremittances.

In the non-EDI system along with the bill of entry filed by the importer orhis representative the following documents are also generally required:

Signed invoice Packing list Bill of Lading or Delivery Order/Airway Bill GATT declaration form duly filled in Importers/CHAs declaration


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License wherever necessary Letter of Credit/Bank Draft/wherever necessary Insurance document Import license Industrial License, if required

Test report in case of chemicals Adhoc exemption order DEEC Book/DEPB in original Catalogue, Technical write up, Literature in case of machineries, spares or

chemicals as may be applicable Separately split up value of spares, components machineries Certificate of Origin, if preferential rate of duty is claimed No Commission declaration

While filing the bill of entry and giving various particulars as prescribed

therein the correctness of the information given has also to be certified bythe importer in the form a declaration at the foot of the bill of entry and anyincorrect declaration has legal consequences, and due precautions should betaken by importer while signing these declarations.

Under the EDI system, the importer does not submit documents as such forassessment but submits declarations in electronic format containing all therelevant information to the Service Centre. A signed paper copy of thedeclaration is taken by the service center operator for non-reputability of thedeclaration. A checklist is generated for verification of data by theimporter/CHA. After verification, the data is submitted to the system by theService Centre Operator and system then generates a B/E Number, which isendorsed on the printed checklist and returned to the importer/CHA. Nooriginal documents are taken at this stage. Original documents are taken atthe time of examination. The importer/CHA also needs to sign on the finaldocument after Customs clearance.

The first stage for processing a bill of entry is what is termed the noting of the billof entry, vis--vis, the IGM filed by the carrier. In the non-EDI system theimporter has to get the bill of entry noted in the concerned unit which checks theconsignment sought to be cleared having been manifested in the particular vesseland a bill of entry number is generated and indicated on all copies. After notingthe bill of entry gets sent to the appraising section of the Custom House forassessment functions, payment of duty etc. In the EDI system, the Steamer Agentsget the manifest filed through EDI or by using the service center of the Custom


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House and the noting aspect is checked by the system itselfwhich alsogenerates bill of entry number.

After noting/registration of the Bill of entry, it is forwarded manually or

electronically to the concerned Appraising Group in the Custom House dealingwith the commodity sought to be cleared. Appraising Wing of the Custom Househas a number of Groups dealing with earmarked commodities falling underdifferent Chapter Headings of the Customs Tariff and they take up furtherscrutiny for assessment, import permissibility etc.

The basic function of the assessing officer in the appraising groups is to determinethe duty liability taking due note of any exemptions or benefits claimed underdifferent export promotion schemes. They have also to check whether there areany restrictions or prohibitions on the goods imported and if they require any

permission/license/permit etc. and if so whether these are forthcoming.Assessment of duty essentially involves proper classification of the goodsimported in the customs tariff having due regard to the rules of interpretations,chapter and sections notes etc., and determining the duty liability. It also involvescorrect determination of value where the goods are assessable on ad valorembasis. The assessing officer has to take note of the invoice and other declarationssubmitted along with the bill of entry to support the valuation claim, and adjudgewhether the transaction value method and the invoice value claimed for the basisof assessment is acceptable, or value needs to be re-determined having due regardto the provisions of Section 14 and the valuation rules issued there under, the caselaw and various instructions on the subject. He also takes note of thecontemporaneous values and other information on valuation available with theCustom House.

Where the appraising officer is not very clear about the description of the goodsfrom the document or as some doubts about the proper classification, which maybe possible only to determine after detailed examination of the nature of the goodsor testing of its samples, he may give an examination order in advance offinalization of assessment including order for drawing of representative sample.This is done generally on the reverse of the original copy of the bill of entrywhich is presented by the authorized agent of the importer to the appraising staffposted in the Docks/Air Cargo Complexes where the goods are got examined inthe presence of the importers representative.

On receipt of the examination report the appraising officers in the group assessesthe bill of entry. He indicates the final classification and valuation in the bill ofentry indicating separately the various duties such as basic, countervailing, anti-dumping, safeguard duties etc. that may be leviable. Thereafter the bill of entrygoes to Assistant Commissioner/Deputy Commissioner for confirmation


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depending upon certain value limits and sent to comptist who calculates the dutyamount taking into account the rate of exchange at the relevant date as providedunder Section 14 of the Customs Act.

After the assessment and calculation of the duty liability the importersrepresentative has to deposit the duty calculated with the treasury or the

nominated banks, where after he can go and seek delivery of the goods from thecustodians.

Where the goods have already been examined for finalization of classification orvaluation no further examination/checking by the dock appraising staff is requiredat the time of giving delivery and the goods can be taken delivery after takingappropriate orders and payment of dues to the custodians, if any.

In most cases, the appraising officer assesses the goods on the basis ofinformation and details furnished to the importer in the bill of entry, invoice andother related documents including catalogue, write-up etc. He also determineswhether the goods are permissible for import or there is anyrestriction/prohibition. He may allow payment of duty and delivery of the goodson what is called second check/appraising basis in case there are norestriction/prohibition. In this method, the duties as determined and calculated arepaid in the Custom House and appropriate order is given on the reverse of theduplicate copy of the bill of entry and the importer or his agent after paying theduty submits the goods for examination in the import sheds in the docks etc., tothe examining staff. If the goods are found to be as declared and no otherdiscrepancies etc., are detected, the importer or his agent can clear the goods afterthe shed appraiser gives out of charge order.

Wherever the importer is not satisfied with the classification, rate of duty orvaluation as may be determined by the appraising officer, he can seek anassessment order. An appeal against the assessment order can be made toappropriate appellate authority within the time limits and in the mannerprescribed.

In the EDI system of handling of the documents/declarations for taking importclearances as mentioned earlier the cargo declaration is transferred to theassessing officer in the groups electronically.

The assessing officer processes the cargo declaration on screen with regard to allthe parameters as given above for manual process. However in EDI system, all


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the calculations are done by the system itself. In addition, the system also suppliesuseful information for calculation of duty, for example, when a particularexemption notification is accepted, the system itself gives the extent of exemptionunder that notification and calculates the duty accordingly. Similarly, itautomatically applies relevant rate of exchange in force while calculating. Thus

no comptist is required in EDI system. If assessing officer needs any clarificationfrom the importer, he may raise a query. The query is printed at the service centerand the party replies to the query through the service center.

After assessment, a copy of the assessed bill of entry is printed in the servicecenter. Under EDI, documents are normally examined at the time of examinationof the goods. Final bill of entry is printed after out of charge is given by the

Custom Officer.

In EDI system, in certain cases, the facility of system appraisal is available. Underthis process, the declaration of importer is taken as correct and the system itself

calculates duty which is paid by the importer. In such case, no assessing officer isinvolved.

Also, a facility of tele-enquiry is provided in certain major Customs stationsthrough which the status of documents filed through EDI systems could beascertained through the telephone. If nay query is raised, the same may be gotprinted through fax in the office of importer/exporter/CHA.

All imported goods are required to be examined for verification of correctness ofdescription given in the bill of entry. However, a part of the consignment isselected on random selection basis and is examined. In case the importer does nothave complete information with him at the time of import, he may request forexamination of the goods before assessing the duty liability or, if the CustomsAppraiser/Assistant Commissioner feels the goods are required to be examinedbefore assessment, the goods are examined prior to assessment. This is calledFirst Appraisement. The importer has to request for first check examination at thetime of filing the bill of entry or at data entry stage. The reason for seeking FirstAppraisement is also required to be given. On original copy of the bill of entry,the Customs Appraiser records the examination order and returns the bill of entryto the importer/CHA with the direction for examination, which is to take it to theimport shed for examination of the goods in the shed. Shed Appraiser/Dockexaminer examines the goods as per examination order and records his findings.In case group has called for samples, he forwards sealed samples to the group.The importer is to bring back the said bill of entry to the assessing officer forassessing the duty. Appraiser assesses the bill of entry. It is countersigned byAssistant/Deputy Commissioner if the value is more than Rs. 1 lakh.


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The goods can also be examined subsequent to assessment and payment of duty.This is called Second Appraisement. Most of the consignments are cleared onsecond appraisement basis. It is to be noted that whole of the consignment is notexamined. Only those packages which are selected on random selection basis areexamined in the shed.

Under the EDI system, the bill of entry, after assessment by the group or firstappraisement, as the case may be, need to be presented at the counter forregistration for examination in the import shed. A declaration for correctness ofentries and genuineness of the original documents needs to be made at this stage.After registration, the B/E is passed on to the shed Appraiser for examination ofthe goods. Along-with the B/E, the CHA is to present all the necessarydocuments. After completing examination of the goods, the Shed Appraiser entersthe report in System and transfers first appraisement B/E to the group and gives'out of charge' in case of already assessed Bs/E. Thereupon, the system prints Bill

of Entry and order of clearance (in triplicate). All these copies carry theexamination report, order of clearance number and name of Shed Appraiser. Thetwo copies each of B/E and the order are to be returned to the CHA/Importer,after the Appraiser signs them. One copy of the order is attached to the Customscopy of B/E and retained by the Shed Appraiser.

Some major importers have been given the green channel clearance facility. Itmeans clearance of goods is done without routine examination of the goods. Theyhave to make a declaration in the declaration form at the time of filing of bill ofentry. The appraisement is done as per normal procedure except that there wouldbe no physical examination of the goods. Only marks and number are to bechecked in such cases. However, in rare cases, if there are specific doubtsregarding description or quantity of the goods, physical examination may beordered by the senior officers/investigation wing like SIIB.

Wherever necessary, for availing duty free assessment or concessional assessmentunder different schemes and notifications, execution of end use bonds with BankGuarantee or other surety is required to be furnished. These have to be executedin prescribed forms before the assessing Appraiser.

The duty can be paid in the designated banks or through TR-6 challans. DifferentCustom Houses have authorized different banks for payment of duty. It isnecessary to check the name of the bank and the branch before depositing theduty. Bank endorses the payment particulars in challan which is submitted to theCustoms.

Whenever mistakes are noticed after submission of documents, amendments ofentry is carried out with the approval of Deputy/Assistant Commissioner. Therequest for amendment may be submitted with the supporting documents. For


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A separate form of bill of entry is used for clearance of goods for warehousing.All documents as required to be attached with a Bill of Entry for homeconsumption are also required to be filed with bill of entry for warehousing. Thebill of entry is assessed in the same manner and duty payable is determined.

However, since duty is not required to be paid at the time of warehousing of thegoods, the purpose of assessing the goods at this stage is to secure the duty in casethe goods do not reach the warehouse. The duty is paid at the time of ex-bondclearance of goods for which an ex-bond bill of entry is filed. The rate of dutyapplicable to imported goods cleared from a warehouse is the rate in-force on thedate on which the goods are actually removed from the warehouse.

EXPORT

For clearance of export goods, the export or his agents have to undertake the followingformalities:

(a) Registration:

The exporters have to obtain PAN based Business Identification Number(BIN)from the Directorate General of Foreign Trade prior to filing of shipping bill forclearance of export goods. Under the EDI System, PAN based BIN is received bythe Customs System from the DGFT online. The exporters are also required toregister authorized foreign exchange dealer code (through which export proceeds


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are expected to be realised) and open a current account in the designated bank forcredit of any drawback incentive.

Whenever a new Airline, Shipping Line, Steamer Agent, port or airport comes

into operation, they are required to be registered into the Customs System.Whenever, electronic processing of shipping bill etc. is held up on account ofnon-registration of these entities, the same is to be brought to the notice ofAssistant/Deputy Commissioner in-charge of EDI System for registering the newentity in the system.

(b) Registration in the case of export under export promotion schemes:

All the exporters intending to export under the export promotion scheme need toget their licenses/DEEC book etc. registered at the Customs Station. For such

registration, original documents are required.

(c) Processing of Shipping Bill-Non-EDI:

Under manual system, shipping bills or, as the case may be, bills of export arerequired to be filed in format as prescribed in the Shipping Bill and Bill of Export(Form) regulations, 1991. The bills of export are being used if clearance of exportgoods is taken at the Land Customs Stations. Different forms of shipping bill/billof export have been prescribed for export of duty free goods, export of dutiable

goods and export under drawback etc.

Shipping Bills are required to be filed along with all original documents such asinvoice, AR-4, packing list etc. The assessing officer in the Export Departmentchecks the value of the goods, classification under Drawback schedule in case ofDrawback Shipping Bills, rate of duty/cess where applicable, exportability ofgoods under EXIM policy and other laws inforce. The DEEC/DEPB Shippingbills are processed in the DEEC group. In case of DEEC Shipping bills, the

assessing officer verifies that the description of the goods declared in the shippingbill and invoice match with the description of the resultant product as given in theDEEC book. If the assessing officer has any doubts regarding value, descriptionof goods, he may call for samples of the goods from the docks. He may also callfor any other information required by him for processing of shipping bill. He mayassess the shipping bill after visual inspection of the sample or may send it for testand pass the shipping bill provisionally.


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Once, the shipping bill is passed by the Export Department, the exporter or hisagent presents the goods to the shed appraiser (export) in docks for examination.The shed appraiser may mark the document to a Custom officer (usually anexaminer) for examining the goods. The examination is carried out under the

supervision of the shed appraiser (export). If the description and other particularsof the goods are found to be as declared, the shed appraiser gives a let exportorder, after which the exporter may contact the preventive superintendent forsupervising the loading of goods on to the vessel.

In case the examining staff in the docks finds some discrepancy in the goods, theymay mark the shipping bill back to export department/DEEC group with theirobservations as well as sample of goods, if needed. The export department re-considers the case and decides whether export can be allowed, or amendment indescription, value etc. is required before export and whether any other action is

required to be taken under the Customs Act, 1962 for mis-declaration ofdescription of value etc.

(d) Processing of Shipping Bill-EDI:

Under EDI System, declarations in prescribed format are to be filed through theService Centers of Customs. A checklist is generated for verification of data bythe exporter/CHA. After verification, the data is submitted to the System by theService Center operator and the System generates a Shipping Bill Number, whichis endorsed on the printed checklist and returned to the exporter/CHA. For export

items which are subject to export cess, the TR-6 challans for cess is printed andgiven by the Service Center to the exporter/CHA immediately after submission ofshipping bill. The cess can be paid on the strength of the challan at the designatedbank. No copy of shipping bill is made available to exporter/CHA at this stage.

(e) Octroi procedure, Quota Allocation and Other certification for

Export Goods:

The quota allocation label is required to be pasted on the export invoice. The

allocation number of AEPC is to be entered in the system at the time of shippingbill entry. The quota certification of export invoice needs to be submitted toCustoms along-with other original documents at the time of examination of theexport cargo. For determining the validity date of the quota, the relevant dateneeds to be the date on which the full consignment is presented to the Customs forexamination and duly recorded in the Computer System. In EDI System at DelhiAir cargo, the quota information is automatically verified from theAEPC/TEXPROCIL system.


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Since the shipping bill is generated only after the 'let export order' is given byCustoms, the exporter may make use of export invoice or such other document asrequired by the Octroi authorities for the purpose of Octroi exemption.

(f) Arrival of Goods at Docks:

The goods brought for the purpose of examination and subsequent 'let export' isallowed entry to the Dock on the strength of the checklist and other declarationsfiled by the exporter in the Service Center. The Port authorities have to endorsethe quantity of goods actually received on the reverse of the Check List.

(g) System Appraisal of Shipping Bills:

In many cases the Shipping Bill is processed by the system on the basis ofdeclarations made by the exporters without any human intervention. In other caseswhere the Shipping Bill is processed on screen by the Customs Officer, he maycall for the samples, if required for confirming the declared value or for checkingclassification under the Drawback Schedule. He may also give any specialinstructions for examination of goods, if felt necessary.

(h) Status of Shipping Bill:

The exporter/CHA can check up with the query counter at the Service Centerwhether the Shipping Bill submitted by them in the system has been cleared ornot, before the goods are brought into the Docks for examination and export. Incase any query is raised, the same is required to be replied through the service

center or in case of CHAs having EDI connectivity through their respectiveterminals. The Customs officer may pass the Shipping Bill after all the querieshave been satisfactorily replied to.

(i) Customs Examination of Export Cargo:


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After the receipt of the goods in the dock, the exporter/CHA may contact theCustoms Officer designated for the purpose present the check list with theendorsement of Port Authority and other declarations as aforesaid along with alloriginal documents such as, Invoice and Packing list, AR-4, etc. Customs Officermay verify the quantity of the goods actually received and enter into the system

and thereafter mark the Electronic Shipping Bill and also hand over all originaldocuments to the Dock Appraiser of the Dock who many assign a CustomsOfficer for the examination and intimate the officers name and the packages to

be examined, if any, on the check list and return it to the exporter or his agent.

The Customs Officer may inspect/examine the shipment along with the DockAppraiser. The Customs Officer enters the examination report in the system. Hethen marks the Electronic Bill along with all original documents and checklist tothe Dock Appraiser. If the Dock Appraiser is satisfied that the particulars enteredin the system conform to the description given in the original documents and as

seen in the physical examination, he may proceed to allow "let export" for theshipment and inform the exporter or his agent.

(j) Variation between the Declaration & Physical Examination:

The check list and the declaration along with all original documents is retained bythe Appraiser concerned. In case of any variation between the declaration in theShipping Bill and physical documents/examination report, the Appraiser maymark the Electronic Shipping Bill to the Assistant Commissioner/DeputyCommissioner of Customs (Exports). He may also forward the physical

documents to Assistant Commissioner/Deputy Commissioner of Customs(Exports) and instruct the exporter or his agent to meet the AssistantCommissioner/Deputy Commissioner of Customs (Exports) for settlement ofdispute. In case the exporter agrees with the views of the Department, theShipping Bill needs to be processed accordingly.

(k) Stuffing / Loading of Goods in Containers

The exporter or his agent should hand over the exporter copy of the shipping billduly signed by the Appraiser permitting "Let Export" to the steamer agent whomay then approach the proper officer (Preventive Officer) for allowing the

shipment. In case of container cargo the stuffing of container at Dock is domeunder Preventive Supervision. Loading of both containerized and bulk cargo isdone under Preventive Supervision. The Customs Preventive Superintendent(Docks) may enter the particulars of packages actually stuffed in to the container;the bottle seal number particulars of loading of cargo container on board into thesystem and endorse these details on the exporter copy of the shipping billpresented to him by the steamer agent. If there is a difference in thequantity/number of packages stuffed in the containers/goods loaded on vessel the


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Superintendent (Docks) may put a remark on the shipping bill in the system andthat shipping bill requires amendment or changed quantity. Such shipping bill alsomay not be taken up for the purpose of sanction of Drawback/DEEC logging, tillthe shipping bill is suitably amended for the changed quantity. The CustomsPreventive Officer supervising the loading of container and general cargo in to the

vessel may give "Shipped on Board" endorsement on the exporterscopy of theshipping bill.

(l) Drawal of Samples:

Where the Appraiser Dock (export) orders for samples to be drawn and tested, theCustoms Officer may proceed to draw two samples from the consignment andenter the particulars thereof along with details of the testing agency in the ICES/Esystem. There is no separate register for recording dates of samples drawn. Threecopies of the test memo are prepared by the Customs Officer and are signed by

the Customs Officer and Appraising Officer on behalf of Customs and theexporter or his agent. The disposals of the three copies of the test memo are asfollows: - Originalto be sent along with the sample to the test agency. DuplicateCustoms copy to be retained with the 2nd sample. TriplicateExporters copy.

The Assistant Commissioner/Deputy Commissioner if he considers necessary,may also order for sample to be drawn for purpose other than testing such asvisual inspection and verification of description, market value inquiry, etc.

(m) Amendments:

Any correction/amendments in the checklist generated after filing of declarationcan be made at the service center, provided, the documents have not yet beensubmitted in the system and the shipping bill number has not been generated.

Where corrections are required to be made after the generations of the shippingbill No. or after the goods have been brought into the Export Dock, amendmentsis carried out in the following manners.

If the goods have not yet been allowed "let export" amendments may be permittedby the Assistant Commissioner (Exports).

Where the "Let Export" order has already been given, amendments may bepermitted only by the Additional/Joint Commissioner, Custom House, in chargeof export section.


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In both the cases, after the permission for amendments has been granted, theAssistant Commissioner/Deputy Commissioner (Export) may approve theamendments on the system on behalf of the Additional /Joint Commissioner.

Where the print out of the Shipping Bill has already been generated, the exportermay first surrender all copies of the shipping bill to the Dock Appraiser forcancellation before amendment is approved on the system.

(n) Export of Goods under Claim for Drawback:

After actual export of the goods, the Drawback claim is processed through EDIsystem by the officers of Drawback Branch on first come first served basis. Thereis no need for filing separate drawback claims. The status of the shipping bills andsanction of DBK claim can be ascertained from the query counter set up at the

service center. If any query has been raised or deficiency noticed, the same isshown on the terminal. A print out of the query/deficiency may be obtained by theauthorized person of the exporter from the service center. The exporters arerequired to reply to such queries through the service center. The claim will comein queue of the EDI systems only after reply to queries/deficiencies are entered bythe Service Center.

All the claims sanctioned on a particular day are enumerated in a scroll andtransferred to the Bank through the system. The bank credits the drawbackamount in the respective accounts of the exporters. Bank may send a fortnightly

statement to the exporters of such credits made in their accounts.

The Steamer Agent/Shipping Line may transfer electronically the EGM to theCustoms EDI system so that the physical export of the goods is confirmed, toenable the Customs to sanction the drawback claims.

(o) Generation of Shipping Bills:

After the "let export" order is given on the system by the Appraiser, the Shipping

Bill is generated by the system in two copies i.e., one Customs copy, oneexporters copy (E.P. copy is generated after submission of EGM). Afterobtaining the print out the appraiser obtains the signatures of the Customs Officeron the examination report and the representative of the CHA on both copies of theshipping bill and examination report. The Appraiser thereafter signs & stampsboth the copies of the shipping bill at the specified place.


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The Appraiser also signs and stamps the original & duplicate copy of SDF.Customs copy of shipping bill and original copy of the SDF is retained along withthe original declarations by the Appraiser and forwarded to Export Department ofthe Custom House. He may return the exporter copy and the second copy of theSDF to the exporter or his agent.

As regards the AEPC quota and other certifications, these are retained along withthe shipping bill in the dock after the shipping bill is generated by the system. Atthe time of examination, apart from checking that the goods are covered by thequota certifications, the details of the quota entered into the system needs to bechecked.

(p) Export General Manifest:

All the shipping lines/agents need to furnish the Export General Manifests,Shipping Bill wise, to the Customs electronically within 7 days from the date ofsailing of the vessel.

Apart from lodging the EGM electronically the shipping lines need tocontinue to file manual EGMs along with the exporter copy of the shippingbills as per the present practice in the export department. The manual EGMsneed to be entered in the register at the Export Department and the Shippinglines may obtain acknowledgements indicating the date and time at which theEGMs were received by the Export Department.


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FINDINGS

In process of making a quality project report on Role of port operation

department, it was found by an observation that Practical situation is different thantheatrical situation. So for making this projects a quality one and practically applicablefollowing findings can help both the party the transporter and the industry people. It willalso be helpful for students and other interested people to understand the practicalproblem.

Following are the findings

1) Department of purchase/marketing without analysis, very much inadvance gives an urgent notice to port operation executive to doarrangements for sending oil or goods to the destination, due to this many

times vehicle has to wait for 10-12 days at place of destination thereforerelation with transporter and goodwill of Louis Dreyfus in market goesdown and they have to pay expenses for waiting for 10-12 days.

2) Quality checking department is very strict about quality therefore everytime before filling oil in tanker they sent tanker for servicing. Eachservicing costs around 700-800 Rs. And it consumes more time.

3) Also quality checking procedure is very lengthy therefore transporter hasto wait more due to this they denied to give their tankers to LDCI forspecific destinations.


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Bibliography

Book

Sople V., LOGISTICS MANAGEMENT: The Supply Chain imperative, (Delhi: PearsonEducation, 2004)

Internet

http://www.ldcommodities.com/-Overview,18-.html, Profile of company, 25-06-2011

http://www.ldcommodities.com/-Our-Strengths,21-.html,LDCs key success factors, 25-06-2011

http://www.ldcommodities.com/-Core-Values,78-.html,Core values, 25-06-2011
http://www.ldcommodities.com/-Overview,18-.htmlhttp://www.ldcommodities.com/-Overview,18-.htmlhttp://www.ldcommodities.com/-Our-Strengths,21-.htmlhttp://www.ldcommodities.com/-Our-Strengths,21-.htmlhttp://www.ldcommodities.com/-Core-Values,78-.htmlhttp://www.ldcommodities.com/-Core-Values,78-.htmlhttp://www.ldcommodities.com/-Core-Values,78-.htmlhttp://www.ldcommodities.com/-Our-Strengths,21-.htmlhttp://www.ldcommodities.com/-Overview,18-.html

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