Abstract

Internship training report on Dachser India Pvt.Ltd is a leading freight forwarder. The purpose of Internship to study was to identify the functions of Company. To analyze the potential role of the company in Imports & Exports. Company mission to provide organizations and individuals the Best Value in Global Logistics. Companies adopt various services and has infrastructure. Various services provided in Air freight, Ocean freight, Customs clearance. The various functions include Import clearance, export clearance, documentation. To know the relation between the CHA and exporter as well as importer by clearing customs procedure this requires many procedures. Research Methodology is the methods involved in gathering meaningful data. Data collected through personal interview with the employee of the Dachser India Pvt Ltd.

Chapter 1
Introduction
Exports and Imports without these two words the concept of trade is irrelevant. When we say exports it means the outward flow of goods from one country to another. In imports there is an outward flows of goods from foreign nations. This facilitates the process of trade. But for the act of an export or import there has to be transportation. Without which nothing would be possible. It is here that everything starts. With the bloom of industrial revolution, trade between nations have just boomed leaps and bounds. Every nation developed or under-developed have understood the importance of trade for their economies to boom. In todays fast moving world it is very essential that the trade too gains momentum. Hence to facilitate this momentum the freight forwarding industry in todays world have picked up immense pace to facilitates the movement of goods between nations. Freight forwarding is done mainly through two modes: one via air and other via sea. Depending on the nature of goods, the transit time, the weight of the commodities and the size of the commodities, they are sent through via air or sea. Export and Import documentation is classified into four important divisions: AIR EXPORT AIR IMPORT OCEAN EXPORT OCEAN IMPORT CUSTOMS CLEARANCE

For every Import and Export the fifth point ie:- customs clearance plays a very important role to facilitate it.

Scope of Study:
As we were given a project which had to be done on export-Import documentation, it is necessary to carefully analyze the documents involved in each process. I was privileged to take up my internship at DACHSER INDIA PRIVATE LIMITED (Chennai) located at Egmore.

Objectives:
To understand the process of Import and Export procedures To understand the documentation concept. In both Import and Export

To understand the clearance procedures.

To understand difficulties in forwarding.

Purpose of the Study:

The Main Purpose of the study is to analyze Export and Import documentation. Its uses to the customer, Agent Shipper, Customs and as to what documents are filled for what purpose of exports or Imports and why are those documents so very essential for the shipper as well as the consignee. And how does the agent and Carrier profit out of a shipment, and what documents are maintained by them, and which of them (documents) are issued to the consignee and shipper.

LIMITATIONS OF TRAINING:
The training is the first step for perfection. Training improves knowledge, Attitude, and skill of trainee. Most of the training fulfills the knowledge where the persons lagging behind. The trainee must learn practical knowledge to solve the problems when they are working in the organization. The training gives the more ideas when they are more involving the work. The institution and organization have offered a wonderful opportunity to the student to learn during summer training. This training assists the student to get better knowledge, ability, attitude, values and individuality. It also helps to breed ideas for solving the problem in the organization.

CHAPTER - II
History of the Company:
Dachser India is one of India's Leading Global Freight Forwarder. Formed on February 1st, 2007, this is a 50:50 Joint Venture between AFL Cargo and DACHSER GmbH. AFL, founded in 1945, has pioneered the Cargo, Logistics and Courier industries in India. AFL Cargo (now Dachser India) has been the frontrunner in the Indian cargo industry for last six decades. It has been providing exemplary service in the domain of global logistics . DACHSER founded in 1930, is one of Europe's Leading Logistics companies. Dachser operates in the areas of Air & Sea Logistics, Food Logistics and also offers the infrastructure for Contract Logistics. In addition to this, transport, warehousing and value added services are also offered. With two industry leaders joining forces, the company has the Best of both Worlds. Through the fully integrated network of Dachser India, Indian customers now have greater access to global market while the foreign companies are assured of a reliable entry route into the Indian domain.

Dachser India Advantages:

Country specific know-how via Own establishments and strong local partners Extensive Local Network of 29 Owned offices, provides regional proximity to our customers Seamless integration with Dachser's Global Network of 260 offices provides Dachser India its strong footprint in almost all the continents. 'Uniform Standard of Service' throughout the network and across products. In-house Customs Clearance. Representation at all International Airports and Seaports through own personnel. Sophisticated IT infrastructure to support the robust network.

COMPANY PROFILE:
Dachser Private Limited is one of Indias leading integrated logistics companies with market leadership in the express industry and significant presence in cargo, logistics and corporate travel. Dachser pvt.Limited through it various divisions, serviced the needs of most of the top 100 companies in India, both MNCs and Indian owned companies. Dachser maxim of Masterminding the science of Movement, we have had and continue to have associations with world leaders in their respective business, such as Carison Wagonlit for Corporate Travel and Hospitality, western Union for person to person money transfer business. A bit about Dachser businesses: Dachser Pvt. Limited (Cargo Division): This division includes international freight forwarding by air/sea and customs related services through all the major gateways in the Country. Dachser has formed strategic alliances with foreign companies reputed in their respective countries which enable us to provide end-to-end logistics services in Import and Exports. Dachser Pvt. Limited (Logistics Division): This is the business, which is linked closely to Dachser vision to be the leading integrated Logistics Services Provider. To this end it created warehousing and distribution capabilities in all over India. The Dachser group of companies is committed to improving levels of services in the industry and has been a trendsetter in many ways. It has also invested Rs. 500 (US $ 12 million) on automation and technology besides substantial investments in an infrastructure of warehouses and hubs throughout India. New and existing customers of Dachser Pvt. Limited will benefit through increased supply chain integration, Enhanced information Technology capability and increased support for e-business. The company has been in the business of providing logistics related services for the past five decades. Besides the Guzder family, the major shareholders, Bankers Trust Corporation has taken a 10% equity position in the company. This is the only investment by Bankers Trust in the country and reflects their belief in logistics as the next business challenge in India and their confidence in Dachser as the leader in the field.

With more than 3900 employees in 200 locations in India, Dachser Private Limited is Indias only true Integrated Logistics Solutions Provider with a turnover of Rs.7650 million (US $ 170 million)

Vision & Mission:

As an acknowledged leader in the Indian cargo industry, Dachser India has constantly pursued a mission to innovate and bring world class services to its customers in India and abroad within the domain of global logistics.

Vision -:
"To be acknowledged as service provider of choice for world-class global logistics solutions."

Mission-:
To provide organizations and individuals the Best Value in Global Logistics through Global & Local Network Innovative Use of Technology Caring People

Quality Management:
Organizations depend on customers hence understand their current and future needs and strive to exceed customer expectations. Leaders establish unity of purpose and direction for organization, maintain environment for full involvement of people to achieve objectives. People involvement at all levels enables in achievement of goals. For desired result manage activities as a process. Identifying, understanding and managing interrelated processes as a system contributes to the organizations effectiveness and efficiency. Continual improvement of the organizations overall performance should be permanent objectives of the organization. Effective decisions are based on the analysis of data and information An organization and its suppliers are inter-dependent and a mutual beneficial relationship enhances the ability of both to create value.

CLIENTS:
Automotive Force Motors (MAN) Alfa Laval Honda Siel Cars India AT&S India Pvt.Ltd JRK auto Mahindra & Mahindra L&T Tata Yazaki

Engineering

Kirloskar oil Engines J L Morrison

Tube Investments of India Whirlpool

Consumer Goods Info. Tech.

Hindustan IFB Unilever Industries Ltd Cognizant Converges Tech.

Toshiba

GENPACT

NIIT

Mahindra Satyam Computers

Petrochemicals Bharat Hindustan Indian Reliance SPIC Petroleum Petroleum Petrochemical Petrochemicals Petrochemicals Power Pharma/ Chemicals Telecom Alstom Ltd Biocon India Ltd Finolex cables Textiles Electronics Projects Arvind Mills Ltd Tata sky TV ABB Ltd S. Kumars Toshiba Kirloskar oil Engines Areva Ranbaxy Radius power India Henkel teroson Reliance Telecom White house Bharat Electronics NTPC Alstom Power Tata power Cadila Suzlon energy Witmans Industries Sterlite Optical Fibers Howrah Mills Ltd Siemens SE Forge Ltd. Tata Telecom

Vodafone

Gokaldas Exports Nippon Denso

Freight Forwarding:
A freight forwarder, forwarder, or forwarding agent, is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.[1] Forwarders contract with a carrier to move the goods. A forwarder does not move the goods but acts as an expert in supply chain management. A forwarder contracts with carriers to move cargo ranging from raw agricultural products to manufactured goods. Freight can be booked on a variety of shipping providers, including ships, airplanes, trucks, and railroads. It is not unusual for a single shipment to move on multiple carrier types. 'International freight forwarders" typically handle international shipments. International freight forwarders have additional expertise in preparing and processing customs and other documentation and performing activities pertaining to international shipments. Information typically reviewed by a freight forwarder includes the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, and/or transshipment. Much of this information is now processed in a paperless environment. The FIATA shorthand description of the freight forwarder as the 'Architect of Transport' illustrates the commercial position of the forwarder relative to his client. In Europe, some forwarders specialize in 'niche' areas such as rail-freight, and collection and deliveries around a large port

CHAPTER - III
OBSERVATIONS FUNCTIONS OF VARIOUS DEPARTMENTS IN DACHSER INDIA PVT. LTD:
The departments that operate in the company are as follows: Documentation Department Legal Affairs Department Survey Department Finance department Marketing and Sales Department Human Resource Department The various functions performed by each department are drafted below

DOCUMENTATION DEPARTMENT:
The documentation department ensures the safety of records and other related documents. At the documentation centre, each importer/exporter has a separate earmarked box to keep the shipping bills and the other related shipping documents. The documentation staff collects the shipping bills and other related documents from the importer/exporter and files the same. After checking all the documents, the documents are segregated according to the CHA vise and entered in the computer system as per the standard format and the same is entered in the register for record purpose. The company does the documentation services at a free of cost in order to encourage the shippers of various import/export cargoes. The documentation charge will not be included in the total service charge.

RECEIPT OF BILLS

VERIFICATION OF DOCUMENTS

CONSOLIDATION OF DOCUMENTS

PROCEED

LEGAL AFFAIRS DEPARTMENT:

The legal affairs department provides legal advice to the company in different legal matters. The legal department plays the key role in customer service and the legal department also provides legal advice to the importers/exporters. The legal department provides all type of legal advice to the company as well as the customers in terms of clearance issues. Various other issues relating to the business is also resolved with the help of the legal affairs department.

LEGAL AFFAIRS DEPARTMENT

LEGAL ADVISE GUIDANCE

KEY ROLES AND FUNCTIONS OF LEGAL DEPARTMENT:

The legal department also plays a key role in the documentation department. The verification of the documents is done by the legal department. The legal department checks and verifies whether all the documents and proofs are complied with the law and fulfils all the provisions relating to customs clearance. Further the legal department also plays a vital role in the survey and examination of import/export consignments. The department plays an important role in the clearance of cargo. The legal department has a team of surveyors whose main job is to go to the CFS or ICD and examine the cargoes on arrival of the containers. The surveyor takes samples of all the consignment and examines the cargoes which are stuffed in the containers.

It is the duty of the legal department to check whether all the consignments fulfill all the required provisions of the customs regulation. The survey team classifies the goods into different categories and examines the same based on their category. The examination technique differs from each type of cargoes. Once the examination of cargoes is complete and if the cargoes pass the examination process, the clearance certificate will be issued by the legal affairs department which will be signed by the legal department head and it will be passed to the officer of customs. The clearance certificate is a proof that the cargoes have passed the clearance process and has fulfilled all the requirements prescribed by the customs regulation.

LEGAL AFFAIRS DEPARTMENT

VERIFICATION OF DOCUMENTS SURVEY EXAMINATION OF CARGOES

FINANCE DEPARTMENT: In Dachser India Pvt. Ltd. the finance is maintained in a systematic and organized manner. The department mainly deals with the finance coming from the sales and the general administrative expenses related to the business and the selling expenses. All monetary transaction of the company are handled and brought it into account by the finance department. Under the finance manger there are senior accountant, accountant and accountant executives. All payments such as payment of wages and salary, promotional expenses etc and all receipts such as sales receipts, deposit received etc. are handled by the finance department. The accounting activities are fully computerized and each transaction can be easily accessed by all the top managerial staff.

All the financial aspects in regard to the day to day expenses and all other administrative expenses are managed by the finance officer. Its his duty to estimate the total requirements and get the funds sanctioned. He is the one who sanctions funds for the sales promotions and other marketing activities which are carried out in the organization. He keeps the books of accounts and maintains a clear record of every transaction happening in the organization. All the transactions are recorded in the finance department using Tally 9.0, which is one of thelatest accounting software versions. So we can say that the entire finance department is computerized and everything is recorded and processed with the help of the software. In the finance department all the records are cleared every month and the proceeding will be forwarded to the head of the department and to the top level authority for further processing.

FINANCIAL TURNOVER OF THE COMPANY

FINANCIAL TURNOVER OF DACHSER INDIA PVT. LTD.
30 25 20 15 10 5 0 2008 2009 2010 2011 2012 EXPORT (Rs In Lakhs) IMPORT (Rs In Lakhs)

FUNCTIONS OF FINANCE DEPARTMENT:

To estimate the working capital requirements. To meet the fund requirements. To collect cash from the sales and service proceedings. To maintain records of all transactions happening in the organization. To meet the companys Tax obligation and other Govt. imposed obligations

To pay off the daily expenses. To sanction funds for marketing activities. To sanction funds for the sales promotion activities. To link with all the departments and ensure financial safety. To maintain the flow of cash To take care of the purchase bills. To pay the bills on behalf of the company. To ensure the availability of funds. To prepare the financial statements for each year.

HUMAN RESOURCE DEPARTMENT:

In DACHSER INDIA PVT. LIMITED, HR department consists of the following functions. Recruitment Training and Development Performance Appraisal RECRUITMENT: The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quality through forecasting and planning. In this company the employee will be selected according to qualification. Based on qualification HR department analyze the jobs in respective departments. After analyzing, HR department conducts the interview. Based on the performance, the candidate will be selected. The company did not follow any of the selection procedure.

TRAINING AND DEVELOPMENT: The company conducts regular training programs to the staffs. These training programs are conducted to enhance and improve the quality of performance of the staffs/members of the company and also to improve the efficiency of the members in performance of various tasks. PERFORMANCE APPRAISAL: Performance Appraisal is an objective assessment of an individuals performance against welldefined benchmarks. Performance Appraisal of workers is done differently in this company. They follow a self appraisal method. Forms to be filled are provided to the employee and once they are filled it is been evaluated by top management.

MARKETING DEPARTMENT:
Marketing is perhaps the most important activity in a business because it has a direct effect on profitability and sales. In Dachser India Pvt. Ltd., marketing department plays a vital role. The major function of the marketing department is to find the opportunity for new business and to convince the customers to use the services of the company. The marketing executives fixes the appointment with the companies and directly meets the customers at their place of business and try to fix the contract with the companies in rendering the service of customs clearance. This is technically named as Sales Calls. The marketing executives try their level best to meet the targets given by the company every month.

FUNCTIONS OF THE MARKETING DEPARTMENT:

Focus on the customer Monitor the competition Create new ideas Communicate internally Manage the given budget Set the strategy, plan the attack, and execute.

S.W.O.T Analysis -:
STRENGTHS: More than 50 years of experience in air and sea product The company has dominant presence in every market segment viz. Project cargo, container line, consol cargo, etc DACHSER has own CHA for clearing cargo Well developed marketing network for its container operation. World class service provider with lower cost Dominate in automotive sectors Very strong in Europe country

WEAKNESSES: Non assert based company in India Promote the brand name Lack advertisement. systems approach Outdated OPPORTUNITIES: With the ongoing economic liberalization, Indian trade is increasing at rapid pace. The company having a dominant presence in all market segments is in a favorable position to profit. while major opportunity and anticipation on DACHSER will place the no one market leader on sea and air product because it is 15thplace in India and all over the world 10th place

THREATS: Increasing domestic street level marketing competitors Entry of foreign private players with sound technical and systematized knowledge.

MC KINSEY 7S MODEL
The 7-s model of MC Kinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates

The first three elements strategy, structure and systems are considered as hardware of success, the next four elements are style, staff, skill and shared values are the software of any company.

According to 7s model: 1. STRATEGY:

The way in which a business aims to improve its position in relation to its competition is embodied in its strategy or the way of doing something in an organization. In Dachser India Pvt. Ltd. they follow a new strategy to implement their business plans and to attract many customers. 2. SYSTEM System refers to how the production system, distribution, information system and security system is maintained in its company.

(i)DISTRIBUTION SYSTEM: The distribution of services is made in the following ways: Direct sales are made within the state and outside the state. Indirect sales are made outside the country

(ii)INFORMATION SYSTEM:

FLOW OF INFORMATION IN ENSEN SHIPPING CHAIRMAN

MANAGER

HEAD OF THE DEPARTMENTS

SECTIONS

(iii) SECURITY SYSTEM: Dachser India Pvt. Ltd. has a strict security system. In the maintenance of records, after the records have been closed, the records are kept in the room and closed and the room is opened only after the permission is given by higher authority. If the visitors want to inter they have to take prior permission with the authority and after entering they are not supposed to go to any other departments other than the departments from where they have got permission. 3. STRUCTURE The general admission of the company is carried out by the following departments and these are downward communication in the company. The information flows from the top level of management to the lower levels.

4. STYLE The style which is portrayed to outside world is derived from the style and behaviors exhibits inside the organization. In Dachser India Pvt. Ltd., the internal style of the organization will be reflected in the performance of the staffs. Therefore an organizations style is the reflection of its structure. 5. SHARED VALUE Shared value refers to policies of the company. Dachser India Pvt. Ltd., follows the Quality policy. Quality leading to customer satisfaction shall be the top priority, this shall be achieved by complying with the requirements of the quality management system and continuously improve its effectiveness. 6. STAFF The employees are responsible for the success or failure of the company. The company has total 50 employees They are divided as follows: No. Of workers : 50 Permanent worker : 30 Seasonal worker : 10 Daily wage workers : 10

Company is paying salary of Rs.6, 00,000 per month to its workers.

7. SKILL Skills here refer to how the training will be given to the employees and employers. In Dachser India Pvt. Ltd., the training will be given for 3 months they are: ON THE JOB: This is one of the oldest methods, under this method; the individual place is in regular job and is taught the skill necessary to perform that job on the job training has the advantage of giving firsthand knowledge and experience under the actual working conditions. This training is given to employees. OFF THE JOB: In this method trainee is separated from the job situations and his attention is focused upon learning the material related to his future job performance. There is a job opportunity for freedom of expression for the trainees.

Air Imports process:

Majority of the imports & Exports are done through Sea only because it is the cheapest way of transportation and coming to Air its very costly compared to Sea. Firstly the goods are consolidated because there are many customers of same origin or many goods are to be sent to the same origin by different suppliers.

Air Imports are done when there is a customer who wants the product urgent or it is perishable in nature. Our company is one of the Indias leading Freight forwarding company and having branches all over the world.

For the Air Import our agent should be there in abroad also to continue our forwarding. Firstly the MAWB (Master Airway Bill) is to be prepared it will be between the Agent abroad, agent in destination and airlines people.

Based on the HAWBs the MAWB is prepared and the No. of goods are entered in the MAWB also.

After this a pre-alert will be sent by our agent that xxxx shipment of order number RES///YYY///1234 is sent to the airlines and the MAWB, HAWB & Flight no. will be sent by him via mail. We have forward the same mail to the consignee also according the given consignee details.

We have to check with the customs authority be using ICEGATE which is a base to go to the customs online the while entering all the details like MAWB No., port of origin, port of destination, total packages, gross weight, shipment type, & item description. Then by considering all these items the customs will generate a code that is known as IGM No.

After this we have to prepare a CAN (Cargo Arrival Notice) which plays a major role it consists of Freight costs, FSC, Security charges etc. Before the flight lands we have to check in the online about the flight landing details. After the flight lands in the port the airlines authority will hand over the goods to the customs authorities along with the Doc. Then they will issue an Master D.O based on the MAWB from there they will hand over the goods to airport authorities there the airport authorities will segregate according to the MAWB already sent by our agent and the will be keeping in warehouse according to the nature of goods the continues number is given for the goods.

Then the consignee CHA will come to us to take the D.O generated by us. By taking both D.Os, MAWB, HAWB, Invoice, Packing list then the goods should be examined under the supervision of customs authority, then the goods will be finally handover to the customer.

PROCEDURE TO APPLY IN ICE GATE:

First we have to track the shipments and then we have to open the software to file the shipment in customs site that is ICE GATE. o We have to note the job number. o Then we have to enter the MAWB number, date, destination, No. of packages, qty. o Then in the same way we have enter the details of consol HAWB. o Then we have to open the check list in that type the job No. and check the shipment. o Then it will give a message that your shipment is submitted. o Then we have to select job & create the file of 1.5v o Now we have to open the customs ICE GATE site (www.icegate.gov.in)

o We have to login and upload the file that you have saved previously and submit. o Before the flight lands the airlines will issue the IGM number which is very important to know about our shipments.

Preparation of CAN:
CAN means Cargo Arrival Notice one of the most important doc. Prepared by the freight forwarders the following are the contents in the CAN: Shipper Consignee Origin port Destination port MAWB No. HWAB No. IGM No/ Date Flight No/ Date Description of goods Weight No. of Pieces Freight charges (FSC+ SSC+ EXW+ Storage+ Screening) Destination charges D.O Fees Break Bulk Charges CC Fee The CC Fee is collected only on the resolution passed by the IATA(International Air Transport Authority) that the Charges Collect Fee should be min of 10 USD or 5% on the freight levied from the consignee.

IMPORT CONSOLE:
Import console means the process done between the origin airport to destination airport or from the shippers godown to airport. A person is appointed to look after all the things that should be taken care before the flight lands in the destination.

IMPORT CHA:

CHA means The Custom House Agent he clears the cargo from the customs on
behalf of the consignee. He will file the bill of entry in ICE GATE after the flight lands only the authorized person can do this thing.

We have to approach the AAI for location cum Forwarding slip. Then the goods are moved from location to Examination area. Then we have to approach the Apprising Officer along with the Docs. With the Bill of Entry then he will check the goods and send them to the Examination Officer. Then the E.O will again check the goods physically and get confirmed whether the goods are according to the HAWB or not. After getting it confirmed we have to pay the customs duty. Then they will issue the customs out charge order. Then we have to pay the AAI charges in the bank counter. After that they will issue the gate pass after handling the goods.

AIR EXPORT PROCESS:

Getting required documents from shipper

E.O (verify) Value assessed by A.O

Filing S.B through online

Cargo to complex for phy.examination

Report approved by A.O for let export order

Obtain S.B No

Terminal receipts

Allowed for shipment approved by Export Freight Officer before handover goods to carrier

Assessment by A.O

Execution of AW Bill

Consignment handover to carrier along with AW Bill

A sales person of freight forwarding company approaches a person who is interested in export of his goods, or else the client may directly approaches the freight forwarding company.

If the customer approves and gives business the companys sales person has to reproduce the details to his organization regarding the goods, export date, destination etc. After this, the freight forwarder will start negotiating with liner for the carriage of goods. Then the carrier will offer the rates for the freight forwarder, basing on his feasibility he will shift to another liner. If the customer is interested and is willing to go with the rate offered to him them he will forward his goods to freight forwarding agent. He will collect the goods from shippers warehouse to the consignees warehouse basing on the Terms Of Trade.

The clear description should be given by the shipper then only freight forwarder will accept for export. To export any product from one country to another country there are certain rules that to export the goods they are: The exporter should have the PAN otherwise he have to get it from INCOME TAX office.

After acquiring PAN number we have to get the IEC code (Import Export code) from DGFT. Before acquiring the IEC code he can search for consignees and can get the purchase order number. Based on the purchase order the shipper will raise the invoice with the contents like Purchase order number Invoice numb & date Shipper name & address Consignee name & address Description of goods No. of packages Gross weight Net weight Price per unit

Shipper will hand over the invoice & packing list to the CHA. CHA file the invoice in customs ICE GATE by filing we will be getting the shipping bill number. Then after getting applied in ICE GATE the invoice & packing list along with the shipping bill number will be sent to the Freight Forwarders. First we have to do the air booking in which we will enter the no. of packages, weight, that are mentioned in the Invoice & Packing list. After getting the shipping bill number we have to prepare the HAWB and basing on HAWB we have to make a consolidated MAWB after this a consolidation manifest should be done.

Simultaneously the space is also booked in the airlines through online or manually because only few carriers like EK, LH, CATHAY has the chance to book the space in online for rest of all the carriers booking should be done manually and the payment is done via cash.

Then the THC/ TC (Terminal handling charges) has to be raised in order to enter the goods inside the airport. The CHA will have to fill the annexure C because it is ment for the registration of

cargo into customs. Annexure C consists of the following: Airway bill details. No. of Packages Destination Details Invoice, Packing list & Shipping bill Checklist.

After that the goods should be moved from shippers godown to cargo airport. Along with the docs. Like (Invoice, packing list & SDF for free shipment and invoice, packing list, order confirmation, annexure 3&4, & drawback Declaration) Then the goods are weighed and if only the goods weight & the weight mentioned in the AWB is tallied then we can close the MAWB. Then the goods are taken to Examination officer (E.O) he will examine the goods according to the given docs. Then he will check manually by selecting the packages randomly. After checking a report will be sent online to the Apprising officer.

Then based on the report given by the E.O, A.O will examine again and Apprising officer will be issuing the LEO (Let Export Order). After this the goods are taken to the customs bonded area and from there the goods are handed over to airlines authority along with necessary docs. From there the airlines will be taken goods & palletize them according to the destination places. The airway bill docs. has to be transferred to the respected carries. After handling the goods to the airlines then we will raise the CCL to the shipper. We have to follow the goods up to they have received by the agent in the overseas

Preparation of Debit/Credit Note:

Shipper Consignee Origin port Destination port MAWB No.

 HWAB No. Shipping bill Number No. of Packages Description Airway bill charges AAI charges Documentation charges Transportation charges Handling charges Agency charges EDI charges Loading & Unloading charges Clearing charges Processing charges Miscellaneous charges Service Tax CHA services EDU CESS on CHA services High EDU CESS on CHA services

Practical Observations:
According to the terms & conditions if the MAWB is prepaid and the HAWB is collect then we have to collect charges (airlines charges, freight charges etc) from our overseas agent. If both are prepaid then we have to collect charges from the shipper/ consignor/ exporter. If both are collect we have to collect the charges from our overseas agent. If it is direct shipment without the involvement of agent we have to collect all the charges from our overseas agent.

PROCEDURE OF TRANS- SHIPMENT:

The flight lands in the destination airport then the airlines people will hand over the goods to the airport authority and they will segregate according to the given docs. Then the CHA will apply Bill of Entry then they will approach the customs people with necessary docs. Then the Apprising officer will check the HAWB numb. And No. of packages like that and he will check the goods and send the goods to the Examination Officer (E.O). Then the E.O will check the goods physically according to the given docs. Then if the packages doesnt match with the given docs. Then they wont accept to clear the shipment. Then we should send a letter to our agent, consignor and consignee that the goods are wrongly sent, then they will send a confirmation letter. We have to approach the banker for guarantee the shipment (it may be the consignee or consignor banker based on the mistake done). We have to file the ITSA/ ETSA (Import / Export Trans shipment Application). With the confirmation send by them and we have to add our confirmation, ITSA/ ETSA and banks guarantee letter, we have to approach the customs for getting permission to transship the cargo to the preferred destination. After getting customs approval we can move the cargo to the preferred destination. The process will be same as export like the preparation of Airway bill, and other charges should paid as same as normal export. After the shipment lands then the customs over there will issue a Landing remark certificate (it describes that the goods are landed safely without any damage). Then we have to approach the customs with that certificate for the cancelation of the bond, if not the bond will be running and we have to pay the interest to the bank.

India Export Performance:

Year Value 2003 2004 13854 2004 2005 18314 32% 2005 2006 22840 25% 2006 2007 34615 52% 2007 2008 66638 93% 2008 2009 99689 50% 2009 2010 220711.39 121.40%

Growth 39% rate

2009 - 2010 2008 - 2009 2007 - 2008 2006 - 2007 2005 - 2006 2004 - 2005 2003 - 2004
0 50000 100000 150000 200000 250000 Growth rate value

Export:
A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. Exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer and occur on a large scale between nations that have fewer restrictions on trade.

Exports goods helps an economy to grow by selling more overall goods and services.

STEPS INVOLVED IN EXPORT PROCESS:

Step 1: In the case of first time exporters importers, they need to apply to the Director General of Foreign Trade (DGFT) regional office for getting Importer-Exporter Code (IEC) Number. Step 2 : The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government. ,they need to get registered with sales tax office, and even Export Credit Guarantee Corporation. Step 3: The exporter can now go in for procuring orders, by first sending a sample, if required. The importer sends a purchase order once both exporter and importer have agreed upon the terms and conditions of the contract like pricing, documents, freight charges, currency etc. Step 4: With export order in hand, the exporter starts manufacturing goods or buying them from other manufacturers. Step 5: The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the goods from inspector of quality control. Step 6: Exportables are then dispatched to ports/airports for transit. Step 7: The export firm has to apply to an insurance company for marine/air insurance cover.(The exporter asks the importer to take marine/ air insurance under cost and freight , free on board etc., terms of contract.) Step 8: The exporter contacts the clearing and forwarding agent (C & F) for storing the goods in warehouses. A document called Shipping Bill, required for allowing shipment Authority is presented by the forwarding agent. Step 9: Once the goods are loaded into the ship ,a receipt called Mates Receipt is issued by the captain to the ship superintendent of the port. Step 10: The superintendent calculates port charges and handover to the exporter /C&F agent. by Customs

Step 11: After making the port payments , the C&F agent or exporter gets the Bills of Lading or Airway Bill from the official agent of the shipping company or the airline Step 12 : The exporter applies to the relevant Chamber of Commerce for obtaining Certificate of Origin, stating that the goods originated from India. Step 13: The exporter sends a set of documents to the importers, stating the date of shipment, name of vessel ,etc. Step 14: Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes these documents against the original letter of credit /purchase order. Step 15: The exporters bank sends these documents to the importers bank which should make the payment on of before the due date.

Requirements of Form 13:

o Covering letter. o Liner booking sheet. o Checklist copy. o Then he will take the same empty container to the shipper for the stuffing of goods into the container. o Then he will take the cargo to the CFS for clearance. o The following are the docs. That are to be submitted for the examination of cargo if the stuffing is done in the warehouse & Factory Stuffing. o Invoice. o Packing list. o Shipping bill checklist.

Types of Shipments:
The following are the types of shipments. FCL. LCL. Break Bulk. Etc..

FCL Full Container Load:

A Full Container Load is a standard (20 or 40 ft length) depending on location of origin country, but sometimes it is standard container that is stuffed (loaded) and un-stuffed (discharged) under the risk and account of one shipper and only one consignee. It means whole container is intended for one consignee. FCL container shipment attracts lowe freight rates than an equivalent weight of Cargo in Bulk. The loading reaches its allowable maximum weight or full measurement.

LCL Less than Container load:

LCL means there are more company goods than one company say for ex: in FCL shipment only one companys goods will be transported in the total container. This LCL concept is introduced because to earn more profits and the shippers those who have lesser quantity to export they can use this LCL type of export. The liner will wait until they have got the enough of orders to fill a 20 foot container. The companies will have a chain link to collect the cargo and make it as a consolidated container.

Break Bulk:
When your cargo doesnt fit into the regular container then we have to sent the cargo in a break bulk container which is having a larger dimension. This container having more weight capacity. The items having irregular shape we can use this break bulk container. For this type of containers, the equipments for loading or unloading comprises only basic equipments such as overhead cranes, ship side cranes & fork lifts.

Flow Chart for Sea Export Operations

Getting required documents from shipper Physical verification by E.O

Goods Registration

Form 13 from liner

Port gate in

CHA files Shipping Bill through online

Drop cargo in CFS

Report given by E.O

P.O

Loaded in vessel

Check list generated

C.F.S

After verification A.O releases let export order

Survey & Loading

After vessel sailed b/l raised

Submission allotment of S.B No

A.C

Print

Move empty container to CFS

Scheme Bills

A.O

Hand over docs to forwarders

Liner booking confirmation

Sea Exports operations:

The sea exports operations has certain functional and operational procedures, filing of documents and getting the forwarding and clearance for the cargo. where Initially the shipper sends the scanned copy of invoice and packing list through mail. And self declaration form and order copy is attached to the file if sent. When the booking is done the empty plot is allotted where the container will be placed (loading point). The software used in DACHSER INDIA PVT. LTD. Is E-Customs which is commercially called in the market as 4s, in this the details like job no. shipping bill no. and all other informations that is mention in the invoice and the packing list of the shipment and it is saved. New page is opened from the options in the main page informations like shipper name, address and consignee details. Cargo lists description, number of packages, and value of the cargo. And save the above details. Then the second step is to get in to the general info page, where informations about the destination port, place of delivery, Date and time of the cargo reaching the port of destination. In the invoice menu, invoice no. Invoice value, currency involved, exchange rate, terms of invoice, unit value.

Product details, HS code (Harmonized System Code) RITC & ITCHS code to know the tariffs from the book that has the classifications of Export and Imports items with customs Act 1964. After filing this all the details and datas will be saved and this will be stored in the data base for later review purpose. The Government of India is maintaining the webpage named ICE GATE where we can check the status of the shipment. After the functional procedures and

formalities of the customs, shipping bill can be retrieved, and also the shipping bill can be tracked when it is under the customs house. Whether Appraising Officer, Deputy Commissioner assessed the cargo. At the same time the clearance will be made ready to clear the cargo. The export cargoes will come from factory where in case of FCL (Full Container Load) the cargo will be loaded in the factory as such. LCL (Less Container Load) will be brought to the CFS / Ware house and then stuffed. The assessment is done checking and verifying the documents for the values, pricing. After which the Examination Officer (EO), Appraisal Officer (AO), Preventive Officer (PO) have their role in the warehouse/ container freight station and port, PO will be in gate to check the cargo and in the cargo inside the premises. Then AO will verify the documents and give the examination order, the cargo is been examined by the examination officer then it is registered in the system and the report is made ready. Examination will be done physically for marks, cargo numbers, etc Appraising Officer will issue the Let Export Officer (LEO) and all the signatures and attestations is made, CFS formalities and payments are done finally the forwarder will stuff the cargo in the container. And the Liner and Customs will seal the container and it will be out to the port. The Liner will issue the form: 13 (port permission). The port permission will be given to the liner by CCT (Chennai Container Terminal)/ CCTPL (Chennai Container Terminal Private Limited) which is undertaken by DP world pvt.ltd./ port of Singapore authority and then it will be given to the forwarder the copy will given to transport person to make sure that the cargo container getting in the port premises. After which the cargo will be loaded and placed onboard the vessel.

House Bill of Lading:

Original Exchange control copy (shipping bill). House Bill of Lading is one which is given by liner (container incharge) regarding shipment inside the container. HBL should be created by ourselves in our software and we release the HBL. According to their terms & conditions (Shipper & Consignee) they will be telling us whether to release the cargo or only after surrendering the originals to the freight forwarders, we will send the message to our overseas agent to release the cargo at the destination.

Master Bill of Lading:

MBL is one which is given by the vessel owner (ship incharge) regarding container inside the vessel (container list) After completion of HBL, We have to send the details to the Liner then basing on the details send by us they will be sending us a MBL draft and we have to cross check the details which they have send us. If the draft is ok then we can request for B/L. MBL instruction should be given by us to the LINER, then he will be issuing the MBL draft. We have to go through it for corrections. If all the things are ok then ask them for MBL. We have to pay the freight to the liner we have to send the payment details and ask for the SEAWAY bill.

Surrender B/L:
Surrender B/L is a bill issued by the carrier after surrendering the OBL. Then the carrier will send a message to his overseas agent that to release the cargo without demanding for OBL.

Sea way Bill:

This is a bill given inspite of OBL based on this document the consignee can clear the shipment without the OBL. Sea Way bill is a receipt given by the liner itself. If the SeaWay bill is there is no need of having a original BL for releasing the cargo.

Switch B/L:
Switch Bill of Lading are a second set of bill of lading issued by the carrier in substitution for the set issued at the time of shipment. The agent who is asked to produce the second set is often not at the load port. The holder of the bills may decide, for one reason or another, that the first set of bills is unsuitable, and the carrier is put under commercial pressure to issue switch bills to satisfy his new requirements.

SEA IMPORT:
Imports are an inflow of goods from foreign nations into a particular nation. This process is very essential for the economic growth and development of a country, as foreign investments and currency come into a nation. Sea imports have minimum documentations and operations are not that tedious. In Sea Imports the process of exports will be carried out by persons(agents) in the other nation when the goods get on board of the sealiner, the process of imports begin. Historical data for India Imports:

IMPORT PROCEDURES
Once we receive all mandatory documents from importer we could start the job First task is to obtain Vessel details from steamer agents on receipt of the same check list is prepared threw DACHSER E-CUSTOMS software Once the check list is prepared the same is send to IMPORTER for verification and after prior approval is received we could FILE B/E.

On the Filing of B/E an number gets generated .if the importer is an ACP CLIENT (ACCREDITED CLIENT PROGRAMME) then we could expect the bill to assesses under RMS (RISK MANAGEMENT SYSTEM)

If the same assessed under OPEN then that particular shipment bill has to pass on to customs assessment here customs officials would verify the value & item description &Write up and all mandatory documents once the same is checked then he would release the bill.

We could take print out of the bill and duty could be paid

If the bill is under RMS then the procedure would be as:

Obtain endorsement from CFS Obtain A/O (APPRAISING OFFICER) signature (EXAMINATION OFFICER) Finally we could obtain PRINT from A/O Then do billing in CFS and match the tally sheet in cfs last stage cargo could be loaded in to truck and dispatched to customers premises register the bill with E/O

If the bill is under OPEN then below is the Procedure:

Obtain the signature from A/O in B/E and register the bill with E/O Obtain open chit to open the container and to do physical examination of the cargo Next the bill is taken to E/O to obtain report this would be forwarded to A/O Finally A/O would give print out for the consignment Then do billing in CFS and match the tally sheet in cfs last stage cargo could be loaded in to truck and dispatched to customers premises.

SEA IMPORTS FORWARDING:

Receive the documents from Overseas Agents / Branch Offices Checking the documents for correctness, in case of discrepancies, message needs to be sent to Overseas Office for correct set of document Once, the correct set of documents received, the same will be forwarded to carrier / Coloader to file the manifest on actual consignee name. Received the pre-alert documents will be punched in shatranj Regular follow ups with carrier /co-loader for vessels arrival details

 Once, vessel connection secured, information will be punched in shatranj package with information of feeder vessel Invoice will be raised to customers as per information received from our CS and our origin routed shipments, sales invoice will be raised as per our agreed tariff and same will be dispatched to customers through courier In case of consol container, we need to obtain main line number from carrier and based on it we have to file the sub line numbers with customs as per customs prescribed format. In case of shipment have been co loaded through other consolidator, we need to check with them for details of IGM number, Line number, CFS movement and De-stuffing date of the container. With regard to our consol container, once the sub line number has been filled, we need to arrange the mail line delivery order from the carrier for De-stuffing of the container. We need to monitor /push CFS to move the container to CFS on priority basis Once the container moved to CFS, De-stuffing will be taken place in the presence of our representative and our nominated surveyor After the completion of De-stuffing, our surveyor will provide us the details of the cargo which is loaded according to the details of the cargo condition. In case of any damage, short landing, excess landing, we need to keep informing our customer service, concerned sales person, customer and overseas agent immediately In case of short landing shipment, we need to check with our overseas agent as to know the missing cargo status to keep inform our customer In case of excess landed cargo, we need to Re-export the cargo to same origin/ to different port as per the direction received from our overseas agent In case of damage, customer will claim the damage cargo loss either through insurance company or from the service provided by means of filing the claim notice After the completion of de-stuffing, consignee or consignees nominated Customs broker will approach our office for taking the delivery order Our d/o counter will issue the delivery order upon the collection of payment along with correct set of documents Once the delivery order has been issued, remittance documents will be sent to CCO office within next 7 working days from date of d/o issued

 In Case any shipment which is un cleared for more than 15 days, We need to send our first reminder notice to customer .Second reminder notice will follow after 30 days

and final reminder notice will be sent to customer after 60 days of period Uncleared shipments status needs to be informed to our overseas agents also to seek the assistance of shippers to push consignee to clear the shipment as early as possible And in the event of consignee is not clearing the shipment within the stipulated period ,we can debit the cost involved to our overseas agent as per our agreement

Documents required for import clearance:

Bill of Lading This document gives us the nature of shipment Invoice-This document gives us the value of the shipment Packing list- This document gives us package details of the cargo Certificate of origin: This document gives us the origin of cargo Write up: This document gives us the detailed product of description Catalogue: T his document gives us the photographic explanation of the cargo IEC: Import Export Code

DUTY PAYMENT
Once we receive print of the bill customs duty is to be paid .We have attached separate sheet for a clear explanation. There are around 17 banks nominated by government of India through which duty could be paid online

CFS EXAMINATION
Once duty is paid bill has to be taken to CFS for physical examination of the cargo there are around 28 CFS in and around Chennai Customs officials would verify and do physical examination of the cargo.

BILLING PART
Once the cargo is dispatched billing part is the next process on collection of all documents like CFS RECEIPT & D/O RECEIPT & TRANSPORT DOCUMENT billing job starts .generally lead time taken for billing is around 02 days on receipt of all documents

ICEGATE:
The declarations (Bill of Entry, Shipping Bills and Consol, IGM, EGM) can be filed remotely using EDI technology through the Indian Customs & Excise Gateway (ICEGATE). The users can prepare the declarations from their in-house application as per the format specified by customs and upload through ICEGATE.

NIC provides software for preparation of Bill of Entry, Shipping Bill and Consol Manifest documents which can be freely downloaded from htpp://ices.nic.in/ by the trading partners after registration. The CHA/Importers/Exporters requires registration with ICEGATE

(http://icegate.gov.in) before submitting the declarations in EDI format. The ICEGATE ID provided by ICEGATE is used to login to the ICEGATE portal for submission of messages. The acknowledgement to the declarations are also forwarded to the registered e-mail of the user.

ICES:
The declarations submitted through Service Centre or ICEGATE are moved to ICES for validation and further processing. If no error is found, Bill of entry number/shipping bill number is assigned and information is forwarded to ICEGATE. If errors are found during validation, errors are intimated. The SB/BE No. or Error reports are integrated with the portal for view by the user after login and forwarded as an e-mail attachment.

DOCUMENTS DISPATCH
Once the billing part is completed our last procedure is dispatch .our dispatch department verifies all documents given below are the documents to be dispatched to our customers CFS RECEIPT DELIVERY ORDER TRANSPORT BILL B/E & TR6 CHALAN (ORIGINAL) INVOICE & B/L COPY

IMPORT UNDER LOWER RATE OF DUTY:

There are two types of Imports under the lower rate of duty. They are: Project Imports ATA Carnet

PROJECT IMPORTS:
This type of Imports is normally allowed on Payment of Lower Import duties for those who would like to setup/ expand the manufacturing activity. Unlike EPCG, project. Imports dont need commitment of export volumes

ATA CARNET:
This type of benefits is allowed for temporary imports against carnet issued by the origin country. Imports are allowed normally to those who participate in exhibition/ sales promotion. The Importer needs to give an undertaking. These are allowed for Import without payment of import duty with a condition that it should be exported with in specified time frame.

DOCUMENT REQUIRED FOR ATA CARNET CLEARANCE

ATA CARNET CERTIFICATE. WAYBILL .( MAWB/HAWB/BL) IMPORT INVOICE & PACKING LIST. CARGO ARRIVAL NOTICE. AUTHORITY LETTER TO CHA ADDRESSED TO CUSTOMS.

REGULAR IMPORTS:
Related Party Imports. (SVB Cell Home Consumption 3 rd Party Imports. Into-Bond & Ex- Bond.

High Sea Sale

Regular Import

Duty Entitlement Pass Book

Re-Import

HOME CONSUMPTION
Most usual way of Imports where-in the Importer presents documents to the customs, pays duty. As per prescribed tariff and clear the goods, either for captive consumption or for trading purposes.

BOND & EX-BOND

This is a type of Import where normally Importer undertakes to Import in Bulk where he gets qty discounts & Ex-Bonds (Take goods out of Bonded Warehouse) Partial Quantities as and when required after payment of customs Import duties. This allows Importer to streamline Hiscash flow. As duties are paid only for quantities Ex-Bonded. This process also helps the Importer /Trader the much needed JIT supply.

SVB IMPORTS:
Whenever there are Imports into India where both Exporter & Importer being related special valuation branch (SVB) would monitor transactions. The SVB cell looks into transfer pricing policy. Registration with customs are mandatory. Documents assessed under this registration normally are assessed provisionally with an extra 1% deposit which are refundable on finalization of the screening of rates etc.

HIGH SEA SALE:

This is a process where Importer Imports the goods in Bulk & Sells it to other parties on high seas i.e. before the ships arrives into the destination port, the ultimate buyer complets all customs formalities and clears the shipment. Goods can be sold on high seas partly to one or many parties under split bill of lading.

THIRD PARTY IMPORT:

This is a type of import where the original importer imports the goods and sells it to ultimate buyer at the destination before clearance but after arrival of the shipment (After endorsement) The ultimate buyer completes all customs formalities by himself. All Import benefits are availed by the ultimate buyer.

RE-IMPORT:
These type of imports are allowed for exporting the defective and re-import the same (return after repair) without payment of duty. Re-import of goods under nil duty can be availed if defective goods are exported within 6 months from the date of imports and the goods identified are same as the ones exported.

EXPORT IMPORT DOCUMENTATION Proforma Invoice:

Proforma Invoice, as the name suggests ,is a proforma of the invoice. It is prepared by an exporter and sent to the importer for necessary acceptance. It suggests to a buyer what the actual invoice would look like and is sent to him when he is ready to purchase the goods.

Packing List:
This statement gives the packing details of goods in a prescribed format. It is a very useful document for customs at the time of examination and for warehouse keeper of the buyer to maintain a record of inventory and to effect delivery.

Commercial Invoice :
An invoice is very important as it contains the names of the exporter, importer, and the consignee, and the description of goods. It has to be signed by the exporter. Other documents are prepared by deriving information from the invoice. It is required to be presented before different authorities for different purposes.

Certificate of Origin :
This certificate issued by the local Chamber of Commerce indicates that the goods, which are being exported, are actually manufactured in a specific country mentioned therein. It is sent by the exporter to the importer and is useful for the clearance of the goods from the customs authority of the importing country.

Generalized System of Preference Certificate of Origin :

It indicates that the goods being exported have originated/ manufactured in a particular country . country and is mainly useful for taking advantage of a preferential duty concession ,if available. It is issued by government-authorized agencies like The Directorate General of Foreign Trade and its regional offices, Development Commissioners, Export Promotion Councils etc.

Shipping Bill/Bill of Entry :

It is a requisite for seeking the permission of customs to export goods .It contains a description of export goods by sea/air. It contains a description of export goods, number and kind of packages, shipping marks, and number numbers, value of goods, the name of the vessel, the country of destination ,etc. On the other hand, importers have to submit copies of document called Bill of Entry for customs clearance.Later, a copy has to be given to the bank for verification.

ARE-1 Form :
This form is an application for the removal of excisable goods from the factory premises for export purposes. The ARE-1 form has multiple copies which are distributed to different authorities, including Customs, Range office of Excise, Refund office of Excise , etc.

Exchange Declaration Form (GR/SDF Form):

The RBI has prescribed has prescribed a GR form (SDF) , a PP form, and SOFTEX forms to declare the export transactions. The GR form contains : a) Name and address of the exporter and description of goods. b) Name and address of the authorized dealer through whom proceeds of the exports have been or will be realized. c) Details of commission and discount due to foreign agent or buyer. d) The full export value, giving break up of FOB, Freight, Insurance, Discount , and Commission ,etc.

Bills of Exchange:
It is an instrument in writing, containing an order ,signed by the maker , directing a certain person to pay a certain sum of money only to the order of a person to the bearer of the instrument. It is commonly known as a draft.

Inspection Certificate:
It is required by some importers and countries in order to get the specifications of the goods shipped attested. The attestation is usually performed by a government agency or by independent testing organizations.

Bill of Lading:
This document is issued by the shipping company acknowledging the receipt of the goods mentioned in the bill, for shipment on board of the vessel. The B/L is the legal document to be referred in case of any dispute over the shipment. It contains : The shipping companys name and address The consignees name and address The port of loading and port of discharge Shipping marks and particulars Number of packages and the goods Gross weight and net weight Freight details and name of the vessel Signature of the shipping companys agent Airway Bill This receipt issued by an airlines company or its agent for carriage of goods is a contract between the owner of the goods and the carrier. It should indicate freight pre-paid or freight to collect. The first three digits of the Airway Bill Number represents the code, which identifies the carrier.

Insurance Certificate:
This document ,obtained from the freight forwarder , is used to assure the consignee that insurance will cover the loss or damage to the cargo during transit (marine/air insurance).

Consular Invoice:
This invoice is needed to be submitted for certification to the embassy of the country concerned .Its main purpose is to enable the importers country to collect accurate and authenticated information about the value, volume, quantity, source etc. of the import for assessing import duties and for statistical purposes. It helps the importer to get goods cleared through customs without any undue delay.

Customs Examination of Export Cargo:

Customs officer may verify the quantity of goods actually received and enter into the system and thereafter mark the Electronic shipping bill and also handover all the original documents to the dock appraiser of the dock who may assign customs officer for examination and intimate officers name and packages to be examined.

The Customs officer may inspect/examine the shipment along with Dock Appraiser. The customs officer enters the examination report in the system. Then marks the Electronic shipping Bill along with all original documents and check list to Dock Appraiser. If the dock appraiser is satisfied with documents, examination and system details, he may proceed to allow let export for the shipment. Shipping Bill generated by the system three copies, one as customs copy, one as exporter copy and exchange control copy, all the copies are signed by the Custom Officer and the Custom House Agent.

HS code:
This is a code derived from the customs tariff book depending on the description of goods mentioned in invoice. HS code stands for Harmonized Commodity Description and Coding System . The HS code is used by Customs agencies world wide to assess duties, collect trade statistics and generally to control imports and exports.

GR form:
This is a certificate which acts as a guarantee to the exporter for getting his money from the importer. This certificate is issued by the bank GR form (Guaranteed Remittance Inward form). If we have uploaded in ICEGATE then the customs will give a exchange control copy on behalf of GR form. If the shipping Bill is done manually via SEZ online the GR form is generated. We will get the GR form from the RBI site.

Practical observations in CFS: Exports.

Step 1: On receipt of cargo in Lorries after confirmation of S/B copy receipt the in pass will prepare by security staff and the vehicle will send to respective godown. Step 2: The go-down in-charge arranges to unload and makes entries in his register. After unloading the cargo he gives for the vehicle to go out, and he prepares carting order in the system and files the same in the godown file. Step 3: CHAs will come for inspection of cargo, matches the carting order with the S/B and takes the cargo admission from CFSs admission officer. After that the P.O will verify the marks & nos of the cargo before registration. Step 4: Customs E.O will register the S/B in the system and go to respective go downs for inspection of cargo. Step 5: After due inspection and let export will be given by both A.O and E.O the CHA takes permission from P.O for stuffing the container. Then the cargo is duly stuffed in the container in the presence of the surveyor and sealed by customs P.O. Step 6: The surveyor gives his tally sheet for stuffing of the container. With the help of tally sheet the gate pass is prepared in CFS office. After payment of CFS charges the gate pass is give to CHAs rep for getting P.Os sign. Step 7: After getting P.Os signature the vehicle is checked by security and allowed to move to port. The duty in charge in CFS office enters the container stuffing details in the register. Step 8: Weekly statement will be forwarded to D.C (docks) through P.O.

STUFFING:
There are two type of Stuffing the Cargo in Container: Ware House Stuffing Factory Stuffing

Ware House Stuffing:

We have to pick up the cargo separately and the container is bought to CFS separately. The physical examination is done before the stuffing of cargo. On the presence of the customs officials we can stuff the cargo into the container. Then the A.O will give the L.E.O & Shipping bill is also to be get printed. The same things should be submitted to the P.O for the stuffing of cargo, and the customs seal will be kept beside the shippers seal. Then he will give a container out permission along with date & time in gate pass. Then by taking these docs. The transporter will go to port & hand over the container. Then the port authority will stamp on the EIR (form 13) with the received seal. The transporter will submit the doc. To us. Original Exchange Control Copy will be with us and should submit to the shipper. The Exporter Copy is given to the liner after having a copy for our reference.

Factory Stuffing:
If the stuffing is done at factory, it will undertaken by preview of central excise officers One seal will be of liners seal and another will be of shippers seal. We have to forward the endorsement to CFS to get the shipping bill. Then we have to approach preventive officer for getting the container out permission he will be issuing the gate Pass along with the date & time. By this we can take the container to port. But here if there is any problem with the packages they will taken out for examination and the shippers seal will be broken for the examination.

Then after the cargo got cleared from the customs our person will take printout of shipping bill copies like EXPORTER COPY, EXCHANGE CONTROL COPY, and also form 13 and hand over it to the transporter.

Customs Clearance for Import:

Step 1 Step 2 Step 3 Step 4 Step 5 Transport to Consignees Door Payment of Customs Duty Release order Terminal handling & Gate Pass Assessment and Assessment Approval Assessment Approval Pre Audit (Concurrent Audit) Inspection (Technical Write Up) Documentation Filing Bill of Entry Tracking & Placing of Container

Practical observations in CFS: Imports

Step 1: Trailers will come from the port on PNR movement are entered in register at the security gate. P.O will verify the time taken and seals of the container. After obtaining permission from the P.O gate pass will be prepared by security and import containers are offloaded in import yard. Step 2: After the container is offloaded in the yard import department enters the details in the register and issue gate out pass to the trailer.

Step 3: CHA will come with B/E for inspection import dept. prepares the open order sheet and CHA will get approval from A.O and P.O. Step 4: Container seal is verified & cut in the presence of P.O and CHAs representative. After the inspection done by A.O/E.O the containers are sealed. After completing all customs formalities and payment is done to CFS the gate pass will be issued to CHAs rep. for getting sign from P.O. Step 5: After P.O signed on the gate pass the import dept. allows the container to leave the CFS premises. Import dept. collects the D.O, copies of B/E, out of charge from A.O and file the bills for their records. Step 6: Daily and weekly reports on container arrivals and balance containers are being forwarded to DC (Docks).

Import Cargo Process in CFS: Bonding:

Receipt to all documents. Confirm vessel details from liner and forward checklist to customs for approval. Once approval receive file warehouse B/E Once B/E number allotted Bill under customs assessment. Once customs formalities completed we have to process double duty bond in customs. Once double duty completed bill is moved to cfs examination. Once CFS examination process is completed obtain escort in customs. And container could be picked up only on the next day and bonded in concerned CFS.

Ex-Bond Formalities:
Prior intimation to be given by customer wheather cargo to be taken in duty or scheme bills. On confirmation received firm customer with check list file BOE. Next assessment formalities to be completed in customs. Customer to pay duty and take delivery of the cargo.

SUGGESTIONS
The customs clearance of import and export is such a long procedure so it takes time to clear, so the employee must be try to make their work on time and quick. The support of the employees in complicated procedure in customs clearance will be helpful. If customs clearance done through online then it must be more easy. It could be better if the CFS buy scanner machines.

Conclusions

SKILLS AND QUALITIES ACQUIRED BY ME IN THE ORGANIZATION:

Inter personnel Skills Positive Attitude Behavior in the work place Punctuality Team Spirit Hard ships of work How to maintain a good relationship with superiors Understanding of a work atmosphere Honesty The Price of Personality The value of status Humility