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ACKNOWLEDGEMENT
We would like to thank Shailashree mam
for giving us an opportunity which gave us more knowledge about the lengthy and the complicated procedures of import and export. With the help of this project we could understand the role of clearing and forwarding agents in export and import procedures.

TABLE OF CONTENTS
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Sr.n o

Title

1) INTRODUCTION. (i) DEFINITION. 2) RESPONSIBILITIES OF CLEARING AND FORWARDING AGENTS. (i) THREE FACETS OF CLEARING AND FORWARDING AGENTS. 3) ESSENTIAL SERVICES PROVIDED BY C&F AGENTS. (i) OPTIONAL SERVICES PROVIDED BY C&F AGENTS. 4) ROLE OF C&F IN EXPORT & IMPORT PROCEDURE. (i) EXPORT PROCEDURE. (ii) IMPORT PROCEDURE. 5) MODE OF PAYMENT. 6) DOCUMENTATION. (i) PERFORMA INVOICE. (ii) PACKING LIST. (iii) BILL OF LADING. (iv) CERTIFICATE OF ORIGIN. (v) SHIPPING BILL.
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INTRODUCTION
Before the clearing and forwarding agents came into the picture the export-import rules and procedures were very complex, timeconsuming in short difficult to understand so as to make it easy the commission rate of
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customs have issued clearing and forwarding license to the people who have proved themselves convergent with customs rules and regulations. The clearing and forwarding agents are also known by different names such as custom house agent or freight forwarders or shipping agents. The clearing & forwarding agents are the Companies, which have been authorised and issued License by Customs and Airport authority of India to get the goods inspected at the customs warehouse. Where entry of common man or even the exporter is prohibited (exporter can always go to get his goods inspected, but cannot communicate inspector) These shipping and clearing agents only prepare the export documents for the clients shipments. As this area is highly sensitive in nature,
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directly

with

custom

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due to all the stuff meant for export is stocked here and because of risk of goods being stolen, only authorised people like employees of these licensed agencies are allowed to interact with custom officials to get the goods inspected, after which they handover the goods to air/shipping lines for them to airlift the cargo and send it to its destination.

(i) DEFINITION
Clearing and forwarding agents are authorised by the Government of India to not only help the importers and the exporters but also to bring it to the notice of the custom officials any irregularities in the customs
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rules

and

regulations

optated

by

the

customs, importer and exporter. The clearing agent should be converse with customs act rules and regulations.

RESPONSIBILITIES OF CLEARING AND FORWARDING AGENTS

(i)

Furnish, whenever required by the Licensing Authority, an authorization from each of the firms or persons by whom he is employed to act as their Customs Agent; Not represent a client before an Officer of Customs in any matter which the licensee dealt as an officer
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or employee of the Department or of the facts of which in he gained knowledge service; while Government

(iii)

Not appear, plead or act in any proceedings under Sections 179, 193, 194 or 196 of the Customs Act1969, for and on behalf of any person other than the person for whom he acted as licensee in relation to matters out of which the proceedings have arisen;

(iv)

Where he knows that a client has not complied with the law or has made any error in or omission from any documents which the law requires such client to execute, advise his

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client promptly of the fact of such non-compliance, error or omission and immediately bring the matter to the notice of the appropriate officer of Customs in writing.

(v)

exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any Customs business; Not withhold information relating to any Customs business from a client who is entitled to such information;

(vi)

(vii)

promptly pay over to Government when due, all sums received for payment of any duty, tax or other debt or obligation owing to the Government and promptly account to his clients any money received for them from Government, or received from them
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in

excess

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Governmental, or the other charges properly payable in respect of the clients Customs business; (viii) not attempt to influence the conduct of any officer of Customs in any matter pending before the Custom House, Station, Port or Airport by the use of threat, false accusation, duress or the offer of any special inducement or promise of advantage, or of any gift or favor or other thing of value; (ix) not procure or attempt to procure, directly from which (x) or indirectly, records is not information or other by Customs access

Government sources of any kind to granted proper authority; not employ in any capacity, with power of attorney, by delegation of otherwise, for the promotion of or in

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connection with the work relating the license :i. any person whose application for license or Customs permit has been refused; or ii. any person has whose been as license revoked a officer or or or permit whose

conduct

partner,

manager,

director,

servant has been the cause of the revocation of the license or permit;

(xi)

not lend money to any officer or employee in the service of the Custom House or Customs-station or become surety for the repayment of money borrowed by any such officer or employee ; and

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(xii)

Intimate to the Licensing Authority any change of address immediately after such change is effected.

(i) Three facets of customs clearance

A customs house agent clears and forwards the goods arrived at the following places:1.

Goods which come by a foreign post. Goods which come through Sea-ports.
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3.

Goods which come through Airports

ESSENTIAL SERVICES PROVIDED BY C&F AGENTS

The following are some of the services provided by all kinds of C&F agents: Providing warehousing facility to the exporters for warehousing the goods before their transportation to the docks/port.

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Transportation of goods to the docks and arrangements of warehousing at the port. Arrangement of containers required for shipment of the goods. Booking of shipping space or air freighting. Advising the exporter as regards the relative cost of sending the goods by different airlines/shipping lines as well as selection of the route of the flight/ sea route. Making arrangements for shipment of goods to be on board the ship/plane.

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Arranging for marine/cargo insurance of the shipment. Preparation shipping and processing required of for

documents

custom clearance. Arranging for of various certificates

endorsements/issue

from various agencies. Providing assistance in the packing of the shipment. Making arrangements of goods for to local the

transportation port/docks.

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Forwarding the documents to the exporter for their negotiation with the bank.

(i) OPTIONAL SERVICES PROVIDED BY THE C&F AGENTS:The following services are provided by the leading c&f agents at the specific request of the exporter: 1. Providing warehousing facilities abroad at least in some of the major
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international

markets

in

case

the

importer refuses to take the delivery of the goods for any reason. 2. Providing assistance to bring the goods back to India if the situation so demands. 3. Providing assistance to locate the goods in case of shipment is misplaced or the cargo is stranded at some port. 4. Making arrangements for assessment of damage to the goods to title claim with the insurance company.

Role of C&F in Import & Export procedure

For smooth and timely shipment of cargo, the exporter should appoint Forwarding as there are a suitable Agent. many Clearing documents and himself

Nevertheless, he should prepare the shipping intricacies and technicalities which he alone
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would know properly. He should not depend too much on the Clearing and Forwarding Agent, who should be entrusted with getting the documents processed and shipment only. The different stages involved in the shipment of goods are as follows: Customs verification of Shipping Bills. Carting and Receipt of Cargo of/in transit Sheds. Cargo examination at Docks. Loading of Cargo. Issue of Mate Receipt. The procedure adopted at different ports relating to different stages is different. Since all these formalities are, by and large, to be completed by the Clearing and Forwarding Agents.

(i) Export procedure:Documents required: Detail description of goods to be exported.

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Destination address with contact details. Invoices that would be raised on

consignee.

The goods that are to be exported would be factory stuffed or stuffed at the port of loading. In case the goods are factory stuffed the exporter needs to make sure that the container is stuffed in the presence of the regional customs/excise officials and the same is sealed by the concerned officer and the same should be certified by him. The customs house agent needs to keep the shipping bill ready with all the particulars viz. Exporter name and address with contact details (consigner), destination name and address with contact details (consignee), number of packages, its weight, details like
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freight paid mentioned in it, the name of the vessel/flight The goods are taken in the port area for either stuffing it into the container or directly to the vessel/flight. This procedure is known as carting of cargo.

The customs officials will examine the goods that have to be stuffed in the container at the port. In case of factory stuffed containers the custom official will only verify marks and number of the containers the custom official will only verify marks and the number of the container and seal number as shown by the customs/excise officials remarked at the factory stuffing. The goods will be loaded into the designated vessel and
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only

then

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shipping company will issue bill of lading showing the container is laden on board. The bill of lading will have columns showing the exporters name and address, name and address of the person to whom the container is consigned to, exporting carriers name, post of loading will also the number of packages, weight and volume of the consignment.

Bill of lading is very important document for consigned partly as he will be able to clear these goods only on surrender of Bill of Lading issued by the port of loading.

Documents enclosed Copy of shipping bill. Copy of bill of lading.

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(ii) Import Procedure:The custom clearing and forwarding agents once appointed by the consignee need to have the following documents: Bill of Lading. Invoices. Packaging list. Certificate of Origin. Quarantine Certificate.
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Letter of authority from the Importer. Importers IC code no. certificate. On receipt of the above said documents the custom house agent need to submit duly filled Bill of Entry to the customs. The Bill of Entry will be in quadruplicate original copy for the customs, duplicate being the importers copy, triplicate being the exchange control and the fourth copy to the port Authority. The cargo would be either first check or second check. In first check, the cargo is first checked by customs officials and duty. In second check, the duty is first paid on the strength of consigners declaration and customs official would examine the cargo after the duty is paid.
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The custom house agent should make sure that all sums received for payment of any duty, taxes or other obligation owing to the government is promptly paid on receipt of the same from the client.

Documents enclosed: Copy of Bill of Lading.

Packing List. Invoices. Certificate of Origin.

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MODE OF PAYMENT:The c&f agent offers various services to its clients. While planning for distribution logistics, the exporter should in the first instance, appoint C&F agents to provide him the required services. There are no standardized rates of charges taken by these agents. The exporter should negotiate with these agents the amount of fees payable to them in relation to the desired services or even could pay him on commission basis.

DOCUMENTATION

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Documents

are

classified

as

commercial

documents and regulatory documents: (a) Commercial Documents: Commercial documents are required for effecting physical transfer of goods and their title from the exporter to the importer and the realization of export sale proceeds. Out of the sixteen commercial documents frame in the as export as documentation work many

fourteen have been standardized and aligned to one another. These are Performa Invoice, Commercial Invoice, Packing List, Shipping instructions, insurance intimation declaration, for inspection, of certificate of inspection of quality control, certificate insurance, Mates Receipt, and Bill of Lading or combined transport document, application for certificate origin, certificate of origin, shipment advice and letter to the bank for collection or negotiation of documents.

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(b)

Regulatory by

Documents: Regulatory documents are different government

pre-shipment prescribed

export the

departments and bodies in order to comply with various rules and regulations under the relevant laws governing export trade such as export inspection, foreign exchange regulation, export trade control, customs etc. Out of nine regulatory documents four have been standardized and aligned. These are shipping bill or bill of export, exchange control declaration, export application dock challans or port trust copy of shipping bill and receipt for payment of port charges.

FOLLOWING ARE THE DOCUMENTS ATTACHED WITH THEIR EXPLANATIONS. (i)Proforma Invoice
The starting point of the export contract is in the form of offer made by the exporter to the foreign customer. The offer made by the
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exporter is in the form of Proforma invoice. It is a quotation given as a reply to an enquiry. It normally forms the basis of all trade transactions.

Contents of Proforma invoice

exporter. importer.

Name and address of the Name and address of the Mode of transportation, such as sea or air or multimodal transport. Name of the port of loading. Name of the port of discharge and final destination. Provisional invoice number and date. Exporters reference number. Buyers reference number and date.

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destination. number. description.

Name of the country of origin of goods. Name of the country of final Marks and container Number and packing Description of goods giving details of quantity, rate and total amount in terms of internationally accepted price quotation.

with date.

Signature of the exporter

(ii)

PACKING LIST
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The exporter prepares the packing list to facilitate the buyer to check the shipment. It contains the detailed description of the goods packed in each case, their gross and net weight, etc. The difference between a packing note and a packing list is that the packing note contains the particulars of the contents of an individual pack, while the packing list is a consolidated statement of the contents of a number of cases or packs.

(iii) BILL OF LADING

Bill of lading is a document issued by the shipping company or its agent acknowledging
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the receipt of goods on board the vessel, and undertaking to deliver the goods in the like order and condition as received, to the consignee or his order, provided the freight and other charges as specified in the bill have been duly paid. It is also the document of title to the goods and as such, is freely transferable by endorsement and delivery. A bill of lading serves three main purposes:(a) As a document of title to the goods; (b) As a receipt from the shipping company; (c) As a contract for the transportation of goods.

CONTENTS OF BILL OF LADING Name and logo of the shipping line. Name and address of the shipper.

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Name and the number of the vessel. Name of the port of loading.

Name of the port of discharge and place of delivery.

Marks and container number. Packing and container description. Total number of containers and packages. Description of goods in terms of quantity. Container status and seal number. Gross weight in kilogram and volume in terms of cubic meters. Amount of freight paid or payable. Shipping bill number and date. Signature and initials of the Chief Officer.

(iv) CERTIFICATE OF ORIGIN

The importers in several countries require a certificate of origin without which clearance to import is refused. The certificate of origin states that the goods exported are originally
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manufactured in the country whose name is mentioned in the certificate. Certificate of origin is required when:(1) The goods produced in a particular country are subject to preferential tariff rates in the foreign market at the time of importation. (2) The goods produced in a particular country are banned for import in the foreign market.

CONTENTS OF CERTIFICATE OF ORIGIN Name and logo of chamber of commerce. Name and address of the exporter. Name and address of the consignee. Name and number of the Vessel of Flight. Name of the port of loading.

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Name of the port of discharge and place of delivery. Marks and container number. Packing and container description. Total number of containers and packages. Description of goods in terms of quantity. Signature and initials of the concerned officer of the issuing authority. Seal of the issuing authority.

(v) SHIPPING BILL

Shipping bill is the main customs document, required by the customs authorities for granting permission for the shipment of goods. The cargo is moved inside the dock area only after the shipping bill is duly stamped, that is certified by the

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customs. Shipping bill is normally prepared in five copies:

(a)

Customs copy.

(b) Drawback copy. (c) Export promotion copy. (d) Port trust copy.
(e)

Exporters copy.

CONTENTS OF SHIPPING BILL Name and address of the exporter.

Name and address of the importer. Name of the vessel, master of agents and flag. Name of the port at which goods are to be discharged. Country of final destination.
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Details about packages, description of goods, marks and numbers, quantity and details of each case. F O B price and real value of goods as define in the Sea Customs Act. Whether Indian or Foreign Merchandise to be re-exported. Total number of packages with total weight and value.

(vi) BILL OF ENTRY

Bill of entry is a document, prepared by the importer or his clearing agent in prescribed form under bill of entry regulations, 1971, on the strength of which clearance of imported goods can be made. Bill of entry is a document, which states that the goods of the stated values and description in the specified quantity have entered into the country from abroad. The
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bill of entry is drawn triplicate. The customs authorities may ask the importer to supply other documents like invoice, brokers notes and insurance policy, etc in order to verify the correctness of the information supplied in the bill of entry form.

The bill of entry goods are classified into three categories: 1)Free Goods. 2)Goods for Home Consumption. 3)Bonded Goods. The importer has to fill up a separate bill of entry form for different classes of goods. In India, separate forms are not used but all entries are made in one form

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CONTENTS OF BILL OF ENTRY Name and address of the Importer. Name and address of the Exporter. Import license number of the importer. Name of the port/dock where goods are to be cleared. Description of goods. Value of goods. Rate and amount of import duty payable. Other relevant documents.

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BIBLIOGRAPHY
Primary Data:
(1)

Mr.Gajendra Shetty. - Clearing and Forwarding Agent. - Owner of Akanksha Shipping.

Secondary Data: www.google.com (2) Export Management

(1)

- D C Kapoor (3) Export Management - Khurana (4) Export Import Procedures and Documentation - Jain Acharya
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