InterLoop's Rise as South Asia's Largest Sock Manufacturer

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INTERNSHIP REPORT
ON
INTERLOOP Pakistan
INTERLOOP LIMITED
THE LARGEST HOSIERY MANUFACTURER AND EXPORTER OF SOCKS IN
PAKISTAN
Umair Hameed
MBSE-12-10
MBA (Marketing) 6th Semester 2012-15
Department of Business Administration

Bahauddin Zakariya University
Sahiwal Campus
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PREFACE
The purpose of this report is to provide an assessment of the current condition of
InterLoop Limited Pakistan and other organizations working in the Hosiery.
This report is submitted in partial the requirements for a Master of Business

Administration, Bahauddin Zakariya University
Another objective of this report is to increase the participation of students and managers
at all levels in synthesizing all available information to provide the most robust, integrated
assessment possible. Data collection and integrated reporting of information are crucial to
management efforts that strive to protect and converse coral reefs, their associated habitats, and
the organisms that depend on them. It is hoped that, through this and future reporting efforts,
gaps in the current state of knowledge organization will be identified and filled, and that the
availability of up-to- date, accurate, comprehensive information will enable the students to
grasp future job opportunities.
I would like to express my sincere gratitude to my leading Sr. Manager Mr. Muhammad
Sajjad without his advice and unique support this report would never had become a reality.
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ACKNOWLEDGEMENTS
My all acknowledgments and regards to MERCIFUL ALLAH, Who blesses us with
courage and enhances our skills in formation of the report also in all works of life
I am grateful to Mr. Waheed Iqbal DGM (SCL) of InterLoop, who provided me

information in key aspects of this report and spared their precious time and knowledge for the
completion of the report.
In last but of course not the least I show homage and all gratitude to my honorable
teacher Mr. Muhammad Sajjad, who supported and shared his great professional experience
and knowledge with me.
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Table of Content
Executive Summary
Overview of the Organization
Vision
Mission Statement
Core Value
Company information
Board of Directors
BOD Profile
Factory Area
Mills
Organizational Structure
InterLoop Producing Worlds Most Prestigious Brands
Awards and Honors
Certifications
Code of Conduct approved
Bankers to Company
InterLoop Supply Chain
Consumer Purchase cycle
Manufacturing and Replenishment cycle
Procurement cycle
IL Supply Chain Structure
Types of Socks
Parts of Sock
Yarn and its types
Main Yarn
Cotton Yarn
Polyester Cotton
Spun Polyester
Cool Max
Acrylic
Melange Yarn
Marl Yarn
Yarn Characteristics Table
Socks Manufacturing Process
Machinery Capacity at InterLoop
InterLoop own Brands
Geographical distribution of exports
InterLoop Dairy Limited
Departments and Their Working in Interloop Limited
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Merchandising
PPC
Knitting
Toe Closing
Processing
Washing
Bleaching
Dyeing
Finishing/Packaging
Quality Assurance
Stores
Yarn Store
Local Sale of Socks
Parts, Dyes & Chemicals and General Store
Accessories Store
Process for imported accessories POs
Packaging supplied at buyers cost
Local PO (Concerned Merchandiser)
Packaging at our cost
Shipment terms agreed with Customer
Payment terms
Payment terms agreed with following suppliers
Amendment/revision in POs
Variations
Copies of packaging PO
Finished Goods Store
HR & Development
Administration
Finance
IMPORT
Importance of P.O and P.I
P.O
P.I
List of Inco terms (international commercial terms) used for I&E
Banking Activities
Bank involve in L/C Opening Procedure
Bank involves in Advance Payment process
Bank involves in after Shipment Payment process
L/C (letter of credit)
Advance Payment
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After Shipment Payment

What is 'Revocable Letter OF Credit' (L/C)?
What is 'Irrevocable Letter OF Credit (L/C)?
Back-To-Back Letters Of Credit
Advance Payment
Other Department Role in Payment in InterLoop Limited
Audit Department
Finance Department
Freight Forwarding
Currently Freight Forwarders of InterLoop is
IATA
FIATA
ACAAP
Freight Forwarder of InterLoop Limited for Air Line Shipment
Freight Forwarder of InterLoop Limited for Sea Line Shipment
Port Types and Operations
Air Port
Sea Port
Dry Port
Port operator
Self-Regulatory Organization SRO
Duty
Customs
Tariff
Customs Duty
Harmonized System Code
Custom Clearance Process
Customs Clearance
Arrival of the goods at Customs Ports
Filing / Examination of Bills of Entry
Assessment of duties / taxes
Release of Goods
Submission of Goods Declaration
Process of Declaration
Transportation Arrangement
EXPORT
Customer Order Fulfillment Procedure
Process of Export products/Goods Delivered to the Customer named Destination
GSP (Generalized system of Preference) / "A" Form / Certificate of origin
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Documents for fulfillment of customer order

Inco Terms important for Export
FOB
CIF
Comparison of FOB and CIF
Transshipment
Customers of InterLoop
Contract procedure with Customer or Buyer
Purchase order
Invoice
Packing list
Certificate of Inspection
FCR (forwarder cargo receipt)
Bill of lading
House Bill of Lading
Master Bill of Lading
Bills of Exchange
Commercial invoice
Notify Party
Container Release Order
Covering Letter
ISF or 10+2 (import security filing)
The following 10 data elements are required from the importer
Certificate of Compliance
Single Country Declaration (T.D)
Uster Report
DTRE (Duty and Tax Remission for Export)
Automated manifest system (AMS)
194 Payless Customer of U.S.A with the C.I.F shipment and DTS term
Dividing Documentation of 194 in Different Categories
Billing Procedure
Bill Receiving
Checking Bills
System Entry
Audit
Sent to A/C Department
Posting in System
Billing Process
Conclusions
Recommendation
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Executive Summary
This Internship was my first step in practical life, through which I learnt a lot and it has
aided me in being well equipped with valuable experience that would help me once I enter the
professional life almost after the completion of my studies. (In the last summer vocations).I
worked in InterLoop city office as an internee. My association with this company`s city office
was being a part of the Import & Export Department. It was a great experience for me and it
helped me in realizing where my potential lies. This internship has also prepared me for my
future career in multinational organization so this internship has helped me a great deal. The
experience has taught me responsibility, teamwork and how to handle people in tough social
situations. Even though the nature of work was quite basic as an internee but I learnt a lot for my
upcoming professional life and find the internship in the best benefit of myself.
The rise of this Company epitomizes a true success story. InterLoop started out in 1992
with just 10 knitting machines, now it has 2300 machines and a workforce of more than 8000,
and has transformed itself into SOUTH ASIA'S largest sock manufacturer and exporter, offering
the highest quality socks at a level of service unknown in our industry. It is located in Pakistan's
Industrial hub Faisalabad; also known as the "Manchester of Pakistan". InterLoop is an integral
part of this business community, continuously striving to revolutionize business practices in this
region.
Hard work and utmost commitment from its employees and management, strict quality
control measures, timely shipments and reliable service standards have been paramount towards
InterLoop phenomenal growth. It is one of the very few firms in Pakistan with an impressive
social responsibility portfolio, realizing that a commitment to sustainability in all areas of
commercial activity endorse the long term interests of a business.
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Overview of the Organization
The rise of this Company epitomizes a true success story. InterLoop started out in 1992 with just
10 knitting machines, now it has 2300 machines and a workforce of more than 8000, and has
transformed itself into SOUTH ASIA'S largest sock manufacturer and exporter, offering the
highest quality socks at a level of service unknown in our industry. It is located in Pakistan's
Industrial hub Faisalabad; also known as the "Manchester of Pakistan". InterLoop is an integral
part of this business community, continuously striving to revolutionize business practices in this
region.
InterLoop is a complete vertical unit offering a wide range of price points and needle counts and
is on the cutting edge in terms of the latest technology for each production process. We believe
our success is due to a highly focused concentration on quality and speedy turnaround; a
combination which increases our customers' edge in a highly competitive marketplace. In
pursuance of our goal to achieve and maintain good quality, InterLoop has now set up a hightech spinning unit that will ensure finest quality yarn made from the best available natural cotton.
This project will enhance the value of money for our customers by offering even more
competitive rate to our clients.
Hard work and utmost commitment from its employees and management, strict quality control
measures, timely shipments and reliable service standards have been paramount towards
InterLoops phenomenal growth. It is one of the very few firms in Pakistan with an impressive
social responsibility portfolio, realizing that a commitment to sustainability in all areas of
commercial activity endorse the long term interests of a business.
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Vision
We will strive to be one of the leading players in the global hosiery business by providing
best value to our stakeholders through improving our processes to match best international
practices
Mission Statement
I Care Our Core Values

I Integrity: Act with Integrity
C Care: Nurturing a Caring Culture
A Accountability: Accept Responsibility, Be Accountable
R Respect: Respect for Environment, Respect for the People
E Excellence: Achieving the Highest Standards
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Core values
Integrity
&
CSR
Our
Operation
Our
People
We are ethical in our functions & dealings

We are of benefit to community we operate in
We make efforts to preserve environment
We aggressively face competition

We encourage deployment of latest technology
We arrive at decisions through collective wisdom
We avoid undue financial risk
We meet or exceed customer expectations in quality of
product & services
We nurture a caring environment internally

We acquire, nurture and reward talent
We ensure self respect of the work force
We encourage teamwork
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COMPANY INFORMATION
Board of Directors
Musadaq Zulqarnain
CEO
Navid Fazil
COO
Shereen Aftab
Jahan Zeb Khan
Tariq Rashid Malik
Saeed Ahmed Jabal
company secretary
Muhammad Maqsood
BOD Profile
Musadaq Zulqarnain ( Chief Executive Officer/Director)
Mr. Zulqarnain is a qualified Engineer and Chief Executive Officer of Interloop
Limited. Before establishing Interloop, He has had 11 years of experience in
Engineering department of Sui Northern Gas company of Pakistan. He is CEO of Faisalabad
Industrial Estate Development and Management Company. He is also a Member of Board of
Directors of Punjab Industrial Estate Development & Management Company.
Navid Fazil ( Chief Operating Officer/Director)

Mr. Navid is a qualified Engineer and Chief Operating Officer of Interloop Limited.
He holds Masters degree in Management from The University of Oxford, UK.
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Jahan Zeb Khan Banth (Director)

Mr. Khan is a qualified Engineer and Director of Interloop Limited. Before
Joining Interloop he was working with Sui Northern Gas Company of
Pakistan.
Tariq Rashid Malik (Director)

Mr. Rashid holds Masters degree in Computer Sciences from UK.
Shereen Aftab (Director)

Mrs. Aftab holds a Doctorate degree in Immunology from The University of Manchester. She is
Director of Interloop Limited since 1999.
Muhammad Maqsood ( Director)

Mr. Maqsood is a qualified Chartered Accountant and director of the Interloop Limited
since 2008.He is director incharge of finance department. He has been serving the
company since 2002.
Saeed Ahmed Jabal ( Executive Director/ Company Secretary)

Mr. Jabal is a qualified Chartered Accountant. He is the Company Secretary of Interloop
Limited since 2008 and serves as the Executive Director of Import & Export Department.
He has been with Interloop Limited since 2007 and has an overall experience of more
than 30 years.
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Factory Area
Total Area of Factory
3,230,680 SQ FT
300,141 SQ MTR
Total Covered Area
444,000 SQ FT
41,248 SQ MTR
522,543 SQ FT
48,563 SQ MTR
325,000 SQ FT
30,200 SQ MTR
Division 1
Total Covered Area

Division II
Total Covered Area

Spinning Division
Mills
1-km Jaranwala
Road, Khurianwala, Faisalabad, Pakista
n
(Hosiery)
7-km Jaranwala
Road, Khurianwala,Faisalabad, Pakistan
(Hosiery 2, Spinning and Energy)
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Organizational Structure
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InterLoop Producing Worlds Most Prestigious Brands

InterLoop has been exporting 100% of its goods to all parts of the world for last 16 years,
enjoying highest appreciation from its clients over the product and service, it has been offering
for the last many years. Client satisfaction is one of the pivotal elements of our continuous
success. InterLoop aims and its team is determined to provide even better consistent quality
service to the best of its abilities.
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Awards and Honors

InterLoop Limited has received the Best Exporter Trophy for the Year award consecutively
every year since 2002. This is awarded by the Government of Pakistan based on a companys
quantum of exports
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Best Exporter Trophy for the year
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Certifications
WRAP
ISO 9001 REV 2008
CTPAT
OKEOTEX 100
SA-8000
ISO-14000
Fair Trade
AVE
OHSAS 18001
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Code of Conduct approved

Nike
Levis
GAP
HFM
Converse
WAL-Mart
Target
Reebok
JC Penney
Columbia
Puma
FILA
Tesco stores UK
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Bankers to Company
Alfalah Bank Limited
Meezan Bank Limited
MCB Bank Limited
National bank of Pakistan
Silk Bank Limited
Standard Chartered Bank Limited
United Bank Limited
Habib Bank Limited
Faysal Bank Limited
Barclays Bank PLC
Arif Habib Limited
Atlas Bank Limited
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InterLoop Supply Chain

IL Supply chain starting from Cotton vendors to the final socks consumers can be divided
into three cycles consumer purchase cycle, manufacturing and replenishment cycle, and
procurement cycle. IL supply chain strategy is to maximize the total supply chain profitability by
planning its resources to achieve strategic fit with all agents of supply chain.
"IL supply chain strategy slides to-and-fro on responsive spectrum to make a strategic fit with
various customer strategies"
Consumer Purchase cycle
This cycle starts with customer arrival at retail store and purchase socks, to satisfy
customers retailers have to ensure availability. This is Push Process of supply chain because
retailers can't calculate the actual demand so, they forecast on the bases of past sales or market
trends and maintain inventories. Actual demand may be less or more than the estimated demand,
to avoid stock outs retailers have to maintain large inventories (Buffer inventory) to absorb
fluxes in demand which ultimately increase cost. An accurate forecasting leads to minimize
inventory costs. To minimize inventory levels retailers are moving toward VMI, where inventory
is monitored, planned and managed by the vendor on behalf of the consuming organization based
on the expected demand and on previously agreed minimum and maximum inventory levels.
Manufacturing and Replenishment cycle
This cycle starts when retailer/importer places order to the merchandiser and after
manufacturing the socks delivered to the desired destination. This is a Pull Process initiated by
customer by providing specific information in purchase order. On the basis of that information
production could be planned.
Procurement cycle
This process occurs when IL sourcing department forecast the expected need of all the
raw material which could be used in upcoming orders as lead time for some raw materials is
more than the IL lead time for its customers. PPC segregates raw materials on the basis of their
usage (regular or not) and their lead times to maintain inventory levels accordingly. This is also a
Push Process based on forecasting, a small variation in sales at retailer end cause larger
fluctuations in orders to the suppliers. Because to make a single pair of socks multiple suppliers
contribute by supplying different raw materials this effect is called Bull-Whip effect.
Most Important driver of supply chain Information, right information on right time effects the
planning of production, Inventories, and transportation.
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P a g e | 24
Types of Socks
Crew
Socks
Quarter
Socks
Ankle
Socks
Low-Cut
Socks
No Show
Socks
Tube
Socks
Reverse
Terry
Socks
Arch
Support
Socks
These are the socks which contains loops (terry) at the

outer side of socks, just like towel.
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Crew
Quarter
Ankle
No Show
Reverse
Low Cut
Tube
Terry
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Parts of Sock
Part
Tie Down
Description
The very first part of sock that is knitted in machine. It is a very small portion between welt
and rib to tie these two parts together.
Welt
Top part of the sock, which is normally folded. Elastic is used in welt for grip purpose
Ankle
It is the part of sock that comes on the ankle when we wear socks. It is knitted after rib.
Rib
Heel
Foot
Toe
Motif
Window
Rib comes after welt. Its function is also to grip leg. Welt is attached to rib with tie- down
stitches.
The part of a sock that covers the rounded

posterior portion of the foot under and behind
the ankle. 4 types of Heel:
Real heel
Y heel
Extended Y heel
Pouch heel
The whole part of the sock that covers the foot. This part of sock is between toe and heel.
That portion of the sock which covers the toe of the foot. It is the closing part of the sock. Toe
is of two types
Real
Pouch
It may be a monogram, a pattern, a design or anything alike as per the requirement of design
or style. Normally formed on the rib
Part of rib on which motif is formatted
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Yarn and its types

A continuous strand of twisted threads of natural or synthetic material is called yarn.
Yarn is the basic raw material used in socks manufacturing. Yarns used for socks knitting are
classified into following three categories:
Main
Yarn
Plating
Yarn
Pattern
Yarn
Socks
Main Yarn: Yarn used in formatting the main body of socks is called main yarn. It is used in
length wise direction. The types of main yarn are:
Cotton Yarn: is the natural fiber which is comprised of 100% cotton fibers.
Polyester Cotton: comprises of blend of cotton and polyester fibers.
Spun Polyester: is spun in the same way as cotton is spun but it consists of 100% filaments.
Cool Max: is the registered trademark of the manufacturer INVISTA.
Acrylic: is a synthetic/man-made fiber which is manufactured with acid and is a replacement of
wool
Mlange Yarn: is mixture of two colored staples forming single yarn string.
Marl Yarn: yarn of different colors is twisted together having 100% cotton or blend of cotton
/polyester.
P a g e | 28
The table shows some of the characteristics of the Yarn types
Polyester
Clock wise twist

Polyester has high strength (although somewhat lower than nylon)
Excellent resilience and high abrasion resistance.
Low absorbency which allows the fiber to dry quickly.

It is measured by Denier
Polypropylene
It has comparatively more flexibility and elongation
Measured by Denier
Nylon
It has anti clock wise twists.

High strength ,stability, and elasticity
Easy washing and quick drying
It is measured by Denier
Lycra (types)
Polyester covered Lycra

Nylon covered Lycra
Elasctic (types)
Polyester covered Lycra

Nylon covered Lycra
P a g e | 29
Socks Manufacturing Process

The diagram below shows the steps involved in the socks manufacturing process at
InterLoop Limited.
Knitting
Boarding
Reversing
ToeClosing
Trimming
Processing
Finishe
d goods
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Machinery Capacity at InterLoop
LIST OF KNITTING MACHINES

BRAND NAME
ANGE
CONTI
L372
LONATI
MATEC GE
SANGIACOMO
SANTONI (SAMPLING)
SANTONI/STAR
SILVER
TORNADO/Santoni
Grand Total
NEEDLES
84
88
108
72
84
108
120
132
144
144
144
156
168
108/132
72/84
84/108/120
96
108
120
168
132
132
84
168
168
84
CYLDR
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Single
Double
Double
Double
Single
DIA (Inches)
5
4
4
3.5
4
4
4
3.5
3.5
3.75
4
4
3.75
4
3.5
4
3.25
4
3.25
3.75
4
4
4.5
3.75
4
4
Qty
50
10
89
8
1
33
766
70
51
49
62
253
52
361
6
63
3
33
5
40
5
10
1
12
71
10
78
24
2,216
P a g e | 31
InterLoop own Brands

InterLoop Limited has no brand for Export of Socks while for Local Sales company has
following brands:
Me
Royal Club
MAXIM
GEOGRAPHICAL DISTRIBUTION OF EXPORTS

Currently InterLoop Limited is exporting to North America and Europe. In calendar year
2008, out of our total export of USD 95.00 Million, share of North America was USD 57.000
Million (60%) and remaining USD 38.000 Million (40%) was generated from sales to Europe.
Export Sales of InterLoop Limited In calendar year 2009 were USD 95.5 Million, share of North
America was USD 52.5 Million and share of Europe was USD 43 Million .
Geographical Distribution for Year 2009
35%
North America
Europe
65%
P a g e | 32
InterLoop Dairies Limited

Pakistan with the current estimates is the 4th largest milk producing country in the world
with 33 million letters of milk produced annually. The potential is huge but the sector operates
mostly in the informal economy and needs a consistent effort to formalize and be able to
contribute better to the national economy. Out of the total milk produced, 97 % is the informal
sector (i.e. loose milk consumed in the villages and/or sold in the cities through Gawallas in
unhygienic conditions and without any quality standards.
The board of directors of InterLoop Limited is fully apprised of the importance and benefits of
both product and industry wise diversification. To reap the same, it has decided to exploit the
immense potential of diary sector. The board has formally approved the feasibility of dairy
project. Total investment of the project is going to be PKR 690.00 million. Initial investment
requirement is PKR 398.00 million out of which PKR 200.00 million will be financed as long
term loans. This project will not only reduce of InterLoop Limited on Textile sector but will also
ensure smoothness and enhancement of profitability in offing.
Departments and Their Working in Interloop Limited:

Merchandising
The person who follows up the consignment from confirmation to shipment is known as a
merchandiser. No business in the world would run and makes progress unless it has a good
marketing strategy towards its product, and has a talent to promote the sales. Marketing is
supposed to be the most critical and imperative part of any business. That is why; CEO of the
INTERLOOP (PVT) LIMITED is determined to play this role followed by talented & wellaligned merchandisers.
In the INTERLOOP (PVT) LIMITED, merchandising department is divided in two sections.
1) Europe Section
2) USA Section
P a g e | 33
The procedure that is followed by this department is as under;
The departmental head (CEO) visit the different countries and also attend the exhibitions.
Marketing is also done through company website and Internet search.
Upon the receipt of any response as the result of marketing, CEO refers the inquiries/
responses to subordinate merchandisers.
Merchandisers communicate further with buyers/customers to get the exact requirement.
Price is settled for the specific product in the view of some specifications i.e. definition of
the product, quantity, quality, destination, mode of payment etc.
Communicate further with buyers to arrange sampling (for new product definition).
Sample is prepared by PPC and upon the receipt & checking, it is forwarded to customer
for approval.
After approval, customer finalizes the quantity, date of shipment and generates PO
containing the specifications all about the required product.
If any discrepancy is found related to the required information, it is negotiated with
customer and solved.
When an order is confirmed and verified by merchandiser, it is forwarded to PPC
allocating a unique internal order number.
Arrange of accessories is the responsibility of a merchandiser.
In case of any amendment received from customer, it is informed properly to the
concerned department and PPC.
Make a follow up of the production at every stage till its shipment.
Also make it possible to ship the goods according to the scheduled delivery.
In case of any delay, inform the customer accordingly.
Confirm the shipment and inform the regarding details to customer.
At the receiving of any complaint, contact the concerned department and reply the
customer.
PPC
PPC depends upon three M i.e. man, material and machine and stands for production
planning and control. It means to plan the production, (keeping in mind the capacity/availability
of machines, labors and materials) and also to make it sure that all the planning is under control
at every stage of production till shipment.
In the INTERLOOP (PVT) LIMITED, (being a developing organization) PPC is mainly focusing
on samples and playing a role of co-coordinator between the merchandising department and
production department at about every stage.
P a g e | 34
PPC receives a sampling request with complete specifications/details from

Merchandising.
Raw material is arranged with the coordination of stores.
Arrange knitting of socks and for this purpose, knitting information for sample is
prepared containing the requirements of sample.
After the completion of knitting, it is handed over to processing.
On receiving of processed sample, it is checked and handed over to merchandiser for the
approval of customer.
Behavior of product in different processes is also noted for future reference.
Upon the receipt of order sheet of buyer/customer for a particular order from
merchandising department, PPC check with sample and carried out the sample reference
number.
Calculated the consumption of raw materials and given to sourcing department.
Raise a work order to production and other concerned departments.
The order file is prepared containing customer order sheet, order summary,
knitting/processing/packaging information, cartons detail and accessories requirement
table.
Distributed the order file to relevant production section with diskettes (if necessary).
Update the loading schedules having deliveries and loading dates.
Provide the trim cards and prototypes to production and other information regarding the
specific order on demand to the concerned department.
Inform the delay to merchandiser about production, packaging, and others.
Knitting
INTERLOOP (PVT) LIMITED has always especially focused its knitting section
equipped with world's latest & modern computerized machines. That is why, today it is the
biggest one manufacturer and exporter of Pakistan/Asia.
The machines used in knitting department are mostly CONTI & LONATE based on 88, 108,
120, 132, 144 and 168 needles.
In socks making, knitting means to make a product based on loops and stitches using needles &
sinkers in different formations supported with jacks.
For the socks knitting, two main tools functions as the key tools;
1) Needle
2) Sinker
P a g e | 35
The procedure that is followed by this department is as under
Knitting department is divided in to three units and further divided in sub units/sections.
Prepare samples according to the instructions of PPC department & modifying the
designs of samples when required.
Orders detail (work order) receives from PPC department.
Yarn is issued by knitting department according to the plan.
Yarn issuance is according to the day capacity/requirement.
Plan the production according to the priorities.
Plan the orders on receiving, not on weekly/monthly basis.
Revise the plan according the solution i.e. increasing the number of machines, working
hours etc.
Generate size book containing general information about the product.
Order plan is delivered along with trim card and knitting starts according to plan.
Production of machines is matched with knitting plan/size book.
Production of machines is checked side-by-side (with trim card) and fresh socks are tied
in dozen to placed in proper place.
Scraped or faulty socks (B grade) are placed in waste bags.
Update the daily production status of machines.
Update the order status on daily basis.
Toe Closing
When a product is knitted it is needed to stitch for a specific shape. Regarding the
stitching of socks, it is needed in toe closing. When the socks are knitted, it has both ends open.
To make a shape of socks, it is stitched form toe side and the process is called toe closing.
Arrange collection of production bags and wastage bags of socks from knitting
department.
Update the records of incoming socks.
Sorting the production batch wise and then start linking (stitching).
Batch making focuses on the required process & capacity of the processing machine.
Normally for wash batch, maximum quantity required is 120 Kg and for bleach batch 120
Kg and for dyed batch 150 Kg.
Then socks are delivered for toe closing.
Three types of linking is performed in toe closing department;
1) Over Lock Linking
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2) Rosso Linking
3) Hand linking
Over lock linking is normally used in toe closing, Rosso Linking is costly & better than
over lock and Hand Linking is considered as superior linking in toe closing.
Over lock linking is repairable while Rosso linking is non-repairable.
After the completion of linking, it prepares the material transfer advice (MTA) and
transferred the bags of sock to Batch store.
Before transferring the batch store, product is checked and only passed/OK product is
delivered.
Daily production report is updated to maintain a record.
Order completion report OCR is also generated which indicates the number of batches (date etc),
specifications and quantity.
Processing
INTERLOOP LIMITED, has its own processing unit fully managed & equipped with
manual, semi computerized and computerized machines. Three types of process are performed
here, used in socks processing;
Washing
This process is performed with water & softener providing a specific temperature.
Antibacterial or any other chemical may also use as per requirement.
Bleaching
After a simple wash, half bleaching process is performed with the help of chlorine and
soda ash. Then specified chemicals are used with temperature and again wash. Using acetic acid
with water for removal of chemicals (neutral), it is again washed and then softener is used. Any
additional requirement/chemical (antibacterial etc) may also use with softening chemicals.
Dyeing
Two types of dyeing are performed i.e. single portion (only main yarn is dyed) and
double portion (main and platting, both yarns are dyed).
After a simple wash, half bleaching/scouring, washing and neutral process, (pH is set and then
platting yarn is dyed for double portion) then again it is washed. Dyeing the main yarn, washing,
neutral, and again washing (for dark shade, hard wash is also required). At the end softening the
goods with additional required chemicals.
P a g e | 37

A sample is received from PPC for shade matching & main process.
On the completion of process and successful color matching, a record is maintained with
a reference number.
When Batches & MTA are received from stores for processing, referenced recipe is
arranged according to the record maintained at the sampling time.
Dyes and chemicals are arranged from dyes & chemicals store for processing.
After receipt of batches, the process of first batch is throughout checked and monitored
because there may be a slight difference in the recipe of sample and bulk.
Then it is finalized and a new record of recipe is maintained for the bulk and all other
batches or next coming assignments will follow this final recipe record.
One batch is processed in one machine.
There are three types of machines in processing.
1) Dyed Machines
2) Hydro Machines
3) Dryer Machines
Dyeing machines are using to dye/bleach/wash the socks as required.
Hydro Machines are used to soak water from processed socks
Dryers are used to dry these socks.
After processing, MTA's are sent to QA dept where quality of processing is checked.
If the quality is rejected, lot is re-processed and re-offered for quality approval.
Once lot is approved, MTA with its batch is submitted to batch store.
Internal record of all the processing is maintained.
Daily production report is also prepared which is used to analysis the monthly production
of washing, bleaching and dyeing.
Finishing/Packaging
Presentation of everything attracts and reflects the taste of representative. It is with the
packaging that is also used for the protection of the goods (socks).
Receipt of pressing/ packing/loading plan from PPC

MTA and batches are received after the completion of processing and accessories are
arranged accordingly.
Batches are noted order wise and it is verified with OCR.
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First of all hanging threads are removed (if required) and this function is called
TRIMING.
Then function of REVERSING is done manually on rulers and then it is transferred to
press section.
Socks are pressed on pressing plants (1 plant can press 4-6 socks at a time).
For special orders, steam press is also used where all the processes are automatic and
socks are available to collect after being nicely steamed, pressed, dried, pulled and
delivered to table for folding and packing.
First of all PROTOTYPE is made for the approval of packing and after its approval from
merchandising section, packing is started.
Socks are folded manually and tied as per requirement i.e. in labels, cascades, band rolls
etc.
Then it is packed in poly bags and cartons as per order's requirement.
Since the packing section is end user, so everything regarding the product i.e. knitting,
stitching, processing, accessories, cartons etc are keenly checked or inspected and verify
with the customers requirements.
Arrange delivery to finished goods store after quality standard approval.
If shade variation is found, batch is transferred to press to inform the processing
accordingly for shade wise sorting.
About SF packing section informs the concerned and up to 2% by knitting manager, 4%
by PPC manager and more than 4% is allowed by the Director of Production.
In finished goods store, (before dispatch) final inspection is made and after clearance they
are ready for dispatch.
Quality Assurance
In every high standard organization, quality assurance plays a main role to meet the
customers requirements, improving the sources and product standards. Sole purpose of this
department is to maintain the standard of quality, offering to its customers.
INTERLOOP has established, documented, implemented and maintained a quality management
system for this purpose. Each and every item whether coming in factory for production uses and
going out as sales is comprehensively checked and approved by this department.
All kinds of yarns whether procured for sourcing/sampling or for production are
thoroughly checked for their colors, fastness, count, knitting behavior and etc.
All kinds of dyes & chemicals whether procured for sourcing/ sampling or for production
are thoroughly checked for their purity, physical and chemical properties.
P a g e | 39
All kinds of accessories for production are thoroughly checked for the standards as
requested or required in orders.
QA is completely equipped to carry any special test requested by the buyer for any
specific order/ product.
To have a firm grip on the standard required by customer, QA is completely & physically
involved in every stage of production and have its own staff in each department where
quality of different processes is checked and reported.
In each Knitting section, quality inspectors supervised by an Officer are performing
quality control meticulously for the socks immediately as they produced for the standards
i.e. yarn count, colors, leg size, foot size, rib size, welt size, shape/design etc.
Knitting faults are also checked by QA department e.g. extra pattern yarn, pattern yarn
shade variation, wrong yarn, flying yarn, yarn floats, yarn short/tight, main yarn on
pattern yarn, platting yarn problems, Oil stains/line, double loops, hole, elastic problem,
uneven knitting etc.
In Toe closing sections, quality inspectors also ensure the quality standard keeping in
mind the knitting faults and stitching faults especially i.e. linking operation (over lock
linking or Rosso linking or hand linking), linking yarn etc.
Processing section is also observed for quality control meticulously for socks over the
standards i.e. Shade, Dyeing evenness, softness, washing, rubbing, PH, pilling etc
Pressing & packing section, being the end user, is keenly observed for quality
standards/control as required in orders i.e. knitting faults, linking faults, processing faults
(shade variation), accessories faults, packaging faults etc.
From the above QA inspection, it comes possible to maintain the quality standards.
However, if any faulty product is ignored by QA inspection, the final inspection is
performed in finished goods store and makes it possible at its level best to provide the
customer a quality standard product.
Stores
Inventory is the backbone of any manufacturing organization. If it is well managed
keeping in focus the inventory level and concentrating the financial control, there is likelihood
that organization increases its efficiency and makes progress.
INTERLOOP has also established a well organized & properly managed inventory system based
on sectional requirements i.e. yarn store, waste store (local sale of socks is the sub section of this
store), parts, dyes & chemicals and general stores, accessories store and finished goods store.
Yarn Store
This section is responsible to maintain stock of parts, dyes & chemicals and general items.
P a g e | 40
This section is responsible to maintain and sale the stock of wastage. Wastage is sold to
contractors (selected through annual quotation and finalization by Director Sourcing).
The store receive waste form all sections and then contact the contractor on a specific
time.
Weighs the wastage and prepares GST with gate pass.
Forwards the GST with contractor to accounts department.
Contractor makes payment of wastage to accounts department, which stamps the GST for
cash received.
After the verification of GST, gate pass is issued by SO.
Then it is arranged to pick up of sold wastage by contractors.
Local Sale of Socks
This section is responsible to maintain stock & sale of socks produced for local sales (Bgrade or left over).
Socks are sold to local parties through local sale dept.
The store receives the socks form production sections and arranges their delivery to local
parties on discretion of LSO following the same procedure as for waste sales i.e.
preparation of GST, gate passes and arrange delivery to customers.
Parts, Dyes & Chemicals and General Store
This section is responsible to maintain stock of parts, dyes & chemicals and general
items.
A request is raised for any specific item, which is implemented through sourcing
department.
To receipt the deliveries of parts/dyes & chemicals/general items, count them, placed
them and maintain the record.
Inform and send the samples to QA section for properly inspection of the items.
If the quality is according to the standard then placed it in proper place and record is
maintained.
If the quality is rejected, then supply is returned to the supplier.
Prepare the SRS (Store Receipt Statement) and forward it with expense receipts to
accounts.
Upon the request of concerned department, required quantity is issued and updated the
record.
Accessories Store
This section is responsible to maintain stock accessories i.e. cartons, stickers, poly bags,
labels etc.
A request is raised for any specific item.
P a g e | 41
To receipt the deliveries of accessories, count them, placed them and maintain the record.
Inform and send the samples to QA section for properly inspection of the items.
If the quality is according to the standard then placed it in proper place and record is
maintained.
If the quality is rejected, then supply is returned to the supplier.
Prepare the SRS (Store Receipt Statement) and forward it with expense receipts to
accounts.
Upon the request of concerned department, required quantity is issued and updated the
record.
Process for imported accessories POs

Packaging supplied at buyers cost
Entries in inventory system PO form to be made as follows
Supplier Name
Delivery Terms
Payment Terms
Delivery Date
Others
Rate
Buyer Packaging
Delivery at Factory
Cash (Adjusting Entries)
As Appropriate
Socks Buyers Name A/C
Estimated Price in Rs.
Packaging at our cost
Internal Purchase Order Concerned Merchandiser

Import PO
Concerned Manager
Supplier A/C No
Account Number Of Packaging Supplier
Job Account Number
No Issued By GM (Finance)
Currency
As Agreed
Pi Number
If Available
Shipment Terms
Use one of the Following As Appropriate
Ex-works
FOB
CFR
Shipment terms agreed with Customer
Our cost air shipment

Our cost sea shipment
Renfros cost air shipment
CFR / DDP (In Export) / Ex-Works (In Imports)

CFR (In Export) / Ex-Works or FOB (In Imports)
CFR Lahore
P a g e | 42
Payment terms
Use one of the following as appropriate
TT Company Account
100% payment through companys Private FC account.
Registered contract
100 % payment to supplier through bank and custom invoice is
equal to 100% value
LC & TT partial payment through LC and balance payment through company private FC
A/C. custom invoice is equal to LC amount
Bank draft
Bank Draft
Cash
Cash
LC
100% payment through LC. Custom invoice for 100%
value
Payment terms agreed with following suppliers

Renfro
Power Faith
Perfect China
Others
Registered Contract
TT Company A/C
TT Company A/C
as appropriate
60 Days from Invoice Date

after Receipt of Goods
Advance Payment
Amendment/revision in POs
Amending the P.O before R.S. can accommodate changes in price & quantity
After R.S. the change in price can only be done by IT department with special permission by
the concerned director.
Quantity in PO can be changed. However, after entry of (R.S.), the quantity of PO cannot be
reduce to a level less than total quantity of R.S. of the particular item
After amendment the signing authority will only sign after ensuring that copies of original
PO with and master file have been stamped as canceled as revised.
The amended PO must be stamped as revised
Variations
If the quantity received is more than actual PO and supplier also claims for the payment of
excess quantity, store will need to amend the original PO before R.S. In case R.S. has been
entered then the original PO may be amended and new R.S. for balance quantity will be
issued
If the quantity received is more than the actual PO but supplier does not claim for excess
quantity, Store will raise a local PO of excess quantity in Pak rupees and will book buyers
packaging. Separate R.S. will be entered against local PO for excess quantity.
P a g e | 43
If quantity received is less than actual PO and supplier agrees with our R.S. and the balance
quantity is not expected ever, Store will need to amend the PO according to R.S. so that there
is no balance quantity available in PO
If quantity received is less than actual PO and supplier does not agree with our R.S. and
claims that the quantity is more than our R.S. or per our actual PO. In said case we will need
to amend the PO according to our R.S. but at the same we will need to have an approval from
CEO to give credit of the disputed amount to our supplier in good faith if so required.
Copies of packaging PO
Copies of POs and amendments will have to sent to the following department
Import and export
Accounts
Store
Merchandising
PPC (production file)
Master file
Finished Goods Store
This section is responsible to maintain the stock of finished goods and to deliver for
export shipment or local dispatch.
The loading schedule is received.
Finished goods are received from packing.
Counting and quality is check through QA.
Arrange the stripping of cartons (if required).
Cartons are weight and allot order-wise number.
Application of carton sticker is made perfect on requirement.
A request is raised to export department for container arrangement.
Loading on containers according the loading schedule.
At the completion of loading, it is informed to export department.
Dispatch advice is prepared and record of the stock is maintained.
HR & Development
In the structure of any organization, HR & Development is placed as the backbone and it
plays a major role to build up a reputation as well.
Considering the importance and to improve the pace of progress, INTERLOOP has also
established a department of HR & Development.
P a g e | 44
Main responsibilities of this department are as under;

To advertise in media related to the company benefits (including Job vacancies).
Collect the applications for new employees and send to the concerned department for
selection/proper action.
Concerned department sort out the application as per their requirement and inform HR
department to call the candidates for interviews.
HR issues a call letter to applied candidates for interviews and tests.
Issuance of the appointment letters to successful candidates & to maintain/update their
record is also the responsibilities of HR department.
HR department issues charge sheets, warning letters, termination letters, increments
letters etc too.
Make the clearance sheet of account for terminated/resigned employees.
Internal departmental transfer is made possible through HR department.
The main object of this department is the continuous reviewing of the interests of
employees for their betterment.
Any kind of welfare operation/function is made possible through this department.
In spite of the above, protocol conveyance and accommodation is also arranged by HR
department.
Administration
Administration department is like the dress of any organization that arranges the manners
of working environment and makes it suitable for employees. It leads to work in a sequence form
with right time, right place & right way.
In the INTERLOOP, administration department looks after the;
General Administration
Security
Estates
Transportation
Mosque Affairs
Mess/Canteen Dealing
Janitorial Services
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Finance
All kinds of financial transactions are performed through finance department. In the setup of
INTERLOOP LIMITED, finance department is divided into three main sections.
i) Finance/ Account
ii) Inventory
iii) Audit & Taxation
Finance/Account section deals with all financial transactions i.e. bank dealings, payments
including EOBI & social security returns etc.
Vouchers are prepared for each accounting transaction, compiled with required receipt
and presented to GM for signing (salary transfer is also included in this vouching).
Accounts statement, balance sheet, profit & lose and stocks reconciliation is also the
responsibility of this section.
Inventory payable is prepared for purchase orders through inventory section.
In auditing, all transactions are dually checked by audit staff.
Sales tax returns, income tax exemption (company returns) and etc are performed through
taxation section.
All related data is operated by a database and reports are generated through the system.
P a g e | 46
IMPORT
14-07-2014
Importance of P.O and P.I

P.O
A buyer generated documents authorizes a purchase transaction. When accepted
by the seller it becomes a contract binding on both parties. A purchase order sets forth the
description, quantities, prices, discounts, payment terms, date of performance or shipment other
associated terms and conditions and identifies a specific seller.
P.I
A commercial document or bill presented to a buyer by a seller or service
provider for payment within a stated time frame that indicates what has been purchased, in what
amount and for what price. A purchase invoice can be used to prove that something was bought
and how much paid for it.
List of Inco terms (international commercial terms) used for I&E

CFR (Cost and Freight)
The exporter must deliver the goods at the port of destination selected by the importer.
Transport expenses are thus the responsibility of the exporter. The importer bears the expenses of
insurance and unloading of the goods. Utilization of this term obliges the exporter to offload the
goods for export, and to use only sea and inland waterway transportation.
CIF (Cost, Insurance and Freight)

Modality equivalent to CFR, except that the insurance costs are born by the exporter.
The exporter must deliver the goods aboard ship, at the port of embarkation, with freight and
insurance paid. The responsibility of the exporter ceases when the product is offloaded from the
ship at the port of destination. This modality may only be used for sea and inland waterway
transportation.
CIP (Carriage and Insurance Paid to...)

Adopts a principle similar to CPT. The exporter, aside from bearing expenses for
shipment of the goods and freight to the destination, must also bear expenses of insurance for
transport of the goods to the destination indicated. CIP may be used for any mode of
transportation, including Multi modal.
P a g e | 47
CPT (Carriage Paid to...)

Similarly to CFR, this condition stipulates that the exporter must pay expenses relating to
the shipment of the goods and international freight to the designated destination. Thus, the risk of
loss or damage to the goods, and any increase in costs, are transferred to the exporter by the
importer, when the goods are delivered into custody of the transporter. This Inco term may be
used for any mode of transportation.
DAF (Delivered At Frontier)

The exporter must deliver the goods at the designated place and location on the frontier,
prior to crossing over to the country of destination. This term is used principally in the case of
highway or railroad transportation.
DDP (Delivered Duty Paid)

The exporter assumes a commitment to deliver the goods, cleared for importation, at the
destination point designated by the importer, and to pay all expenses, including taxes and import
charges. The exporter is not, however, responsible for unloading the goods. The exporter is also
responsible for domestic freight to the destination designated by the importer. This term may be
used for any mode of transportation. This is the Inco term that places the largest degree of
responsibility upon the exporter.
DDU (Delivered Duty Unpaid)

The exporter must place the goods at the disposal of the importer at the designated place and
location abroad. The exporter assumes all expenses and risks for placement of the goods at the named
destination, except expenses relating to customs duties, taxes, and other import charges. This term may
be used for any mode of transportation.
EXW (Ex Works)

The goods and invoice are at the importers disposal, at the exporters premises. All
expenses and any losses or damages after delivery of the goods, including shipping of the goods
overseas, are the responsibility of the importer. When requested, exporter must provide
assistance to the importer in obtaining documents necessary for shipping the goods. This
modality may be used for any mode of transportation.
FCA (Free Carrier)

The exporter delivers the goods, cleared for export, into custody of the transporter, at a
location indicated by the importer, whereupon all responsibilities of the exporter cease. This may
apply to any type of transportation, including multimodal.
FOB (Free on Board)

The exporter must deliver the goods, cleared for export, on board the ship indicated by
the importer, at the port of embarkation. This modality is used for sea and inland waterway
transportation. All expenses, up until the loading of the goods on the transport vehicle, are born
by of the exporter. The importer is responsible for expenses and risks of loss or damage to the
goods, once delivered on board the ship.
P a g e | 48
Banking Activities
Banks played important role in import department. Banks deal with InterLoop on the base
of three types of payments. One and major payment mod is L/C (letter of credit), second one is
Advance payment, and the last one is after shipment payment.
Bank involve in L/C Opening Procedure
Bank required these documents for L/C opening.

Request letter for opening L/C on the letter head paid of the company
Attached Sheet
Performa Invoice
L/C opening form of bank
When L/C documents clear and sent them to the bank then bank check these documents
and resent to the company for verifying these documents. Then company again check L/C
documents and finalizing then again sent them to the bank. And after this process bank start own
working on L/C transaction.
Bank involves in Advance Payment process

Bank also plays an important role in Advance Payment. Advance payment only
proceed when amount exceed $10,000. Bank allows 120 days to the company for completing
shipment order to received shipment. Company bound fulfill or follow requirements of the bank.
If company not fulfill or meet this requirements then bank have a right for impose penalty.
Another side bank always tolerate excess amount of shipment but not tolerate less amount of
shipment thats wrote in documents. Bank requires these documents for Advance Payment.
Request letter to the bank
Undertaking letter to state bank
Performa Invoice
Import Form
Bank involves in After Shipment Payment process

Bank play role in after shipment payment as per L/C and advance payment. Bank
requires no more terms and conditions just require the simple documentation for this transaction.
Bank requires these documents for after shipment payment.
Commercial Invoice
Airway Bill
Custom Clearance Evidence
Good Declaration
Request Letter
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Advance Payment
A letter from a bank guaranteed that a buyer's payment to a seller will be received on
time and for the correct amount. In the event that the buyer is unable to make payment on the
purchase, the bank will be required to cover the full or remaining amount of the purchase.
Letters of credit are often used in international transactions to ensure that payment will be
received. Due to the nature of international dealings including factors such as distance, differing
laws in each country and difficulty in knowing each party personally, the use of letters of credit
has become a very important aspect of international trade. The bank also acts on behalf of the
buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank
receives a confirmation that the goods have been shipped.(L/C open when amount exceed
$10,000 of any products or goods).
Two types of L/C
i.
Revocable L/C
ii. Irrevocable L/C
What is 'Revocable Letter OF Credit' (L/C)?

This may be cancelled or amended by the buyer at any time without the sellers approval.
Rarely used as there is no protection for the seller.
What is 'Irrevocable Letter OF Credit (L/C)?

Correspondence issued by a bank guaranteeing payment for goods and services
purchased by the one requesting the letter. An irrevocable letter of credit, or ILOC, cannot be
canceled or modified in any way without explicit consent by the affected parties involved. For
example, the issuing bank has no power to change the terms of an ILOC simply because the
letter requester is having second thoughts. It should be noted, however, that ILOCs are in effect
only for a specified time period and do, in fact, expire at a pre-determined point.
Back-To-Back Letters Of Credit

Two letters of credit (LCs) used together to help a seller finance the purchase of
equipment or services from a subcontractor. With the original LC from the buyer's bank in place,
the seller goes to his own bank and has a second LC issued, with the subcontractor as
beneficiary. The subcontractor is thus ensured of payment upon fulfilling the terms of the
contract.
P a g e | 50
Example:
Like most LCs, back-to-back LCs is used primarily in international transactions, with the
first LC serving as collateral for the second.
Documents require for opening L/C:
Request letter for opening L/C on the letter head paid of the company
Attached Sheet
Performa Invoice
L/C opening form of bank
Purchase Order
Undertaking form of referred bank (in case of Beneficiary required bank)
Advance Payment
Only proceeds when amount exceed $10,000/-.
Any type of payment that is made of its normal schedule, such as paying for a good or
services before you actually received the goods or services. Advance payments are sometimes
required by sellers as protection against non-payment.
Some everyday examples of advance payments are prepaid cell phones, or simply
prepaying your rent or utilities as many people do now. In the corporate world, companies often
have to make advance payments to suppliers when their orders are large. Suppliers may not have
enough capital to buy the materials needed to produce a large order, so they use part of the
advance payment to pay for the product they will be creating. If a corporation is required to make
an advance payment, it is recorded as a prepaid expense on the balance sheet under the accrual
accounting method.
Bank also plays an important role in Advance Payment. Bank allows 120 days to the
company for completing shipment order to received shipment. Company bound fulfill or follow
requirements of the bank. If company not fulfill or meet this requirements then bank have a right
for impose penalty. Another side bank always tolerate excess amount of shipment but not
tolerate less amount of shipment thats wrote in documents.
Request letter to the bank
Undertaking letter to state bank
Performa Invoice
Import Form

A type of transaction which payments were made at the time of delivery. If the purchaser
does not make payment when the good is delivered, then the good will returned to the seller.
Payment can be made by cash, certified check or money order, depending on what is stipulated
in the shipping contract.
This type of transaction is usually done through a shipping company and allows both the
seller and the buyer of the product to minimize the risk of fraud or default. COD allows the
P a g e | 51
purchaser to pay at the time of delivery instead of having to pay upfront. Payment is made to the
shipping company, and the shipping company then relays the payment back to the seller.
Request Letter
Commercial Invoice
Airway Bill
Custom Clearance Evidence
Good Declaration
Other Department Role in Payment in InterLoop Limited

Other department of the company involves in payment modes. Mainly Audit and Finance
department play an important role in payments. No payments were made without any concern of
these departments.
Audit Department
When payments were made then start the making documentation for this payment. When
documents are ready then sent to the audit department. Auditor checks and conform this invoice
and record in system and sent invoice to the pre-audit factory. Pre-Audit department record
invoice in the system and sent to the finance department.
Finance Department
Accounts/Finance department arrange balance for these payments. Balance are shows for
these payments then make a voucher/cheque for these payments.
Freight Forwarding
Firm specializing in arranging storage and shipping of merchandise on behalf of its
shippers. It usually provides a full range of services including: tracking inland transportation,
preparation of shipping and export documents, warehousing, booking cargo space, negotiating
freight charges, freight consolidation, cargo insurance, and filing of insurance claims. Freight
forwarders usually ship under their own bills of lading or air waybills (called house bill of lading
or house air waybill) and their agents or associates at the destination (overseas freight
forwarders) provide document delivery, deconsolidation, and freight collection services also
called forwarder.
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Currently Freight Forwarders of InterLoop is:

(Agility, CEI, Combined, USP, Demco, Dynamic, CP world, Facility, UCL, Vision
Cargo, Pakistan Cargo, TML, Expeditors, C-Gold, CIM, and DHL).
Pakistan Cargo Service (PVT) and International Freight Forwarding Registered by
(internationally) IATA, FIATA, and (nationally/Pakistan) ACAAP.
IATA
Is a trade association representing a small proportion of the worlds airlines? These 240
airlines, primarily major carriers, equate to approximately 84% of total Available Seat
Kilometers air traffic. IATA supports airline activity and helps formulate industry policy and
standards. It is headquartered in Montreal, Canada with Executive Offices in Geneva,
Switzerland.
FIATA
The International Federation of Freight Forwarders Associations (FIATA) is a nongovernmental organization representing 40,000 forwarding and logistics companies, employing 8
to 10 million people in 150 countries.
ACAAP
Air Cargo Agent Association of Pakistan.
Freight Forwarder of InterLoop Limited for Air Line Shipment:
Agility, Demco, DHL, ICA and other nominated forwarders on the customer
requirement.
Freight Forwarder of InterLoop Limited for Sea Line Shipment:
For sea shipment mostly used Shipping Lines. Just like APL (American president Line)
APL is the most favrot or mostly used shipping line for InterLoop Limited. APL one of them
whos provide 21 free days to the InterLoop for return container.
Other forwarders provide 14 free days for returning containers to the line.
InterLoop Limited forwarders choosing criteria on the basiss of (Cost, Service, Flight, after
shipment billing procedures) and then negotiation in rates.
Port Types and Operations

Three types of Ports
Air Port
Sea Port
Dry Port
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Air Port
In addition to people, airports move cargo around the clock. Cargo airlines often have
their own on-site and adjacent infrastructure to transfer parcels between ground and air. Cargo
Terminal Facilities are areas where international airports export cargo has to be stored after
customs clearance and prior to loading on the aircraft. Similarly import cargo that is offloaded
needs to be in bond before the consignee decides to take delivery. Areas have to be kept aside for
examination of export and import cargo by the airport authorities. Designated areas or sheds may
be given to airlines or freight forward ring agencies.
Every cargo terminal has a landside and an airside. The landside is where the exporters and
importers through either their agents or by themselves deliver or collect shipments while the
airside is where loads are moved to or from the aircraft. In addition cargo terminals are divided
into distinct areas export, import and interline or transshipment.
Sea Port
A port is a location on a coast or shore containing one or more harbors where ships can
dock and transfer people or cargo to or from land. Port locations are selected to optimize access
to land and navigable water, for commercial demand, and for shelter from wind and waves. Ports
with deeper water are rarer, but can handle larger, more economical ships. Since ports
throughout history handled every kind of traffic, support and storage facilities vary widely, may
extend for miles, and dominate the local economy. Some ports have an important military role.
Dry Port
A dry port (sometimes inland port) is an inland intermodal terminal directly connected
by road or rail to a seaport and operating as a centre for the transshipment of sea cargo to inland
destinations.
In addition to their role in cargo transshipment, dry ports may also include facilities for storage
and consolidation of goods, maintenance for road or rail cargo carriers and customs clearance
services. The location of these facilities at a dry port relieves competition for storage and
customs space at the seaport itself.
Port operator
A port operator is port authority or company that contracts with the port authority to
move cargo through a port at a contracted minimum level of productivity. They may be stateowned (particularly for port authorities) or privately run.
The work involves managing the movement of cargo containers between cargo ships, trucks and
freight trains and optimizing the flow of goods through customs to minimize the amount of time
a ship spends in port. Maintaining efficiency involves managing and upgrading gantry cranes,
berths, waterways, roads, storage facilities, communication equipment, computer systems and
dockworkers' union contracts. The port operator also manages paperwork, leases, safety and port
security
P a g e | 54
Self-Regulatory Organization SRO

A non-governmental organization that has the power to create and enforce industry
regulations and standards. The priority is to protect investors through the establishment of rules
that promote ethics and equality.
Some examples of SROs include stock exchanges, the Investment Dealers Association of
Canada, and the National Association of Securities Dealers in the United States.
A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory
authority over an industry or profession. The regulatory authority could be applied in addition to
some form of government regulation, or it could fill the vacuum of an absence of government
oversight and regulation. The ability of an SRO to exercise regulatory authority does not
necessarily derive from a grant of authority from the government.
In United States securities law, a self-regulatory organization is a defined term. The principal
federal regulatory authoritythe Securities and Exchange Commission (SEC)was established
by the Federal Securities Exchange Act of 1934. The SEC originally delegated authority to the
National Association of Securities Dealers (NASD) and to the national stock exchanges (e.g., the
NYSE) to enforce certain industry standards and requirements related to securities trading and
brokerage. On July 26, 2007 the SEC approved a merger of the enforcement arms of the NYSE
and the NASD, to form a new SRO, the Financial Industry Regulatory Authority (FINRA). In
addition, Congress created the Municipal Securities Rulemaking Board (MSRB) as an SRO
charged with adopting investor protection rules governing broker-dealers and banks that
underwrite trade and sell tax-exempt bonds, 529 college savings plans and other types of
municipal securities.
The American Arbitration Association is also an SRO with official, statutory status. Because of
the prominence of the SROs in the securities industry, the term SRO is often used too narrowly
to describe an organization authorized by statute or government agency to exercise control over a
certain aspect of the industry.
The National Association of Realtors (NAR) is an example of an SRO that fills the vacuum left
by the absence of government oversight or regulation. The NAR sets the rules for Multiple
Listing Services and how brokers use them. Another example is the American Medical
Association which sets rules for ethics, conflicts, disciplinary action, and accreditation in
medicine.
Duty
In economics, a duty is a kind of tax levied by a state. It is often associated with customs,
in which context they are also known as tariffs or dues. The term is often used to describe a tax
on certain items purchased abroad. Properly, a duty differs from a tax in being levied on specific
commodities, financial transactions, estates, etc. rather than on individuals. Duties may be import
duties, excise duties, stamp duties, death or succession duties, etc.; but not such direct
impositions as personal income taxes.
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Customs
Customs is an authority or agency in a country responsible for collecting customs duties
and for controlling the flow of goods, including animals, transports, personal effects, and
hazardous items, into and out of a country. The movement of people into and out of a country is
normally monitored by immigration authorities, under a variety of names and arrangements. The
immigration authorities normally check for appropriate documentation, verify that a person is
entitled to enter the country, apprehend people wanted by domestic or international arrest
warrants, and impede the entry of people deemed dangerous to the country.
Each country has its own laws and regulations for the import and export of goods into and out of
a country, which its customs authority enforces. The import or export of some goods may be
restricted or forbidden.
In most countries, customs are attained through government agreements and international laws.
A customs duty is a tariff or tax on the importation (usually) or exportation (unusually) of goods.
Commercial goods not yet cleared through customs are held in a customs area, often called a
bonded store, until processed. All authorized ports are recognized customs areas.
Tariff
A tariff is a tax on imports or exports (an international trade tariff). The meaning in list of
tax rates for different import goods.
Customs Duty
A customs duty or due is the indirect tax levied on the import or export of goods in
international trade. In economic sense, a duty is also a kind of consumption tax. A duty levied on
goods being imported is referred to as an import duty. Similarly, a duty levied on exports is
called an export duty. A tariff, which is actually a list of commodities along with the livable rate
(amount) of customs duty, is popularly referred to as a customs duty.
Harmonized System Code

For the purpose of assessment of customs duty, products are given an identification code
that has come to be known as the Harmonized System code. This code was developed by the
World Customs Organization based in Brussels. A Harmonized System code may be from four
to ten digits. For example 17.03 is the HS code for molasses from the extraction or refining of
sugar. However, within 17.03, the number 17.03.90 stands for "Molasses (Excluding Cane
Molasses)".
Introduction of Harmonized System code in 1990s has largely replaced the Standard
International Trade Classification (SITC), though SITC remains in use for statistical purposes. In
drawing up the national tariff, the revenue departments often specifies the rate of customs duty
with reference to the HS code of the product. In some countries and customs unions, 6-digit HS
codes are locally extended to 8 digits or 10 digits for further tariff discrimination: for example
the European Union uses its 8-digit CN (Combined Nomenclature) and 10-digit TARIC codes.
P a g e | 56
Custom Clearance Process
The procedure for imports comprises of following three processes:

Arrival of Goods at Customs Port
Filing and Examination of Bills of Entry; and
Assessment of customs duty
Customs Clearance:
It is a common belief by the importers in Pakistan that custom clearance is very difficult,
time consuming and cumbersome procedure. As a result it has become a common practice to
engage a clearing agency in fulfilling the requirements and procedures of the customs
departments, as well as clearance of consignments. However a part of the negative perception
relates to the low awareness level about the compliance requirements for import procedure. It
can be divided into two major segments. First appraisal, where the goods are physically verified
and customs duty is assessed and second appraisal where the actual or final duty is calculated
and levied upon the importer. This document covers all the necessary aspects, which are the
fundamental part in clearance of goods/shipment and the process of assessment of customs duty
and taxes. Shipments may be received at either the Sea, Air port or Dry port declared by the
customs authorities as customs ports, customs air port and land customs station; the procedure
for clearance is same for every customs station.
i-
Arrival of the goods at Customs Ports

The Central Board of Revenue of and on declares the customs ports comprising of sea,
land and air ports for the purposes of clearance of goods. The customs clearance process starts
with the arrival of cargo ship, plane or other carrier of goods in the country on the designated
sea, land and air ports. Upon arrival of the goods at the customs port, the port authorities issue
the Import General Manifest (IGM) to each shipment. It is a number indicating the serial of the
shipment arrived during the year. Upon receipt of the IGM the consignment is further indexed to
allow for a systematic reference of all goods received. After issuing this number, the shipment is
off loaded and sent back to port warehouse. In the case of land customs station i.e. dry port etc.
the IGM is issued not at the time the goods reach the land customs station but at the time the
goods are off loaded at the sea or air port. Upon arrival of the off loaded goods, the clearance
process starts. Normally at this point clearing agency is engaged by the importer to facilitate the
process of customs clearance and to reduce interface with the customs officials. Following
documents are required and provided to the clearing agent for processing.
a) Invoice of shipment
b) Packing list
c) Bill of lading
d) Copy of the Letter of Credit or Contract
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If the importer is importing for the first time, following additional documents are to be
submitted.
a) Copy of the Sales Tax Registration Certificate as an importer
b) Copy of Registration Certificate issued by the Export Promotion Bureau in case of
import of Gems and Jewelry
c) Copy of the National Tax Number
d) Copy of the most recent sales tax return
It may be noted that now there is no need to obtain import and export license from the Export
Promotion Bureau.
ii-
Filing / Examination of Bills of Entry:

Provided all the above mentioned documents are complete, the clearing agency prepares
the Bill of Entry. It may be noted that at present the bills of entry are being filed electronically
with the customs department. For such purposes the customs official have issued Pin Code to
every clearing agent along with a CD which contains the standard formats of bills of entry in
blank form. The clearing agent after giving all the particulars in the bills of entry hand over the
CD along with all the requisite documents to the customs officials for their review and clearance
of goods.
iii-
Assessment of duties / taxes

On delivery of the bill of entry, the goods or any part thereof is examined without delay
for the purposes of assessment of customs duty and other taxes thereon. This examinations made
in the following manner:
First appraisal of the consignment:
During first appraisal the case is forwarded to the appraisement hall where the specific
percentage of goods imported is determined for examination. The principal appraiser marks the
case to the Inspector and Deputy Superintendent for examination. The inspector after examining
the goods marks the case to the Deputy Superintendent for further approval. Provided the case is
approved by both of them, the case is referred to the Principal Appraiser for assessment of
customs duty and other taxes thereon.
The second appraisement of the shipment:
Is carried out by the customs department in reference to the report forwarded by the principle
appraiser along with documents submitted by the clearing agent for determination of customs
duty.
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Release of Goods
After assessment of valuation the case is then forwarded to the Inspector - Out of
Charge for final release and issuance of a gate pass. Following documents are submitted to the
Inspector for Processing:
A) Copy of Invoice
B) Copy of Packing List
c) Bill of Entry (Original Copy, Quadruplicate Copy and Statistical Copy)
With the issuance of gate pass, the importer is directed to deposit the amount of duty assessed,
warehouse charges, fines and penalties, if any, and placed by the port authorities. Once the
payment is made, the shipment is released and can be loaded and transported to its destination.
Submission of Goods Declaration

The Goods Declaration i.e. on line filing of bills of entry etc. may be filed on line at
least24 hours before the arrival of the vessel. The duties and taxes are computed and discharged
(at any nearest online bank branch) by the importer before submission of the declaration to the
Customs. On submission of the document the importer is granted an online receipt in the shape
of Customs Reference Number (CRN) also known as Machine Number.
Process of Declaration
The moment a CRN is allotted, the Risk Management System of PACCS commences the
processing of the declaration. In case the customs are satisfied that the particulars contained in
the declaration do not pose a threat to the country of the exchequer, the cargo is cleared in
seconds and the importer is intimated online. However, in case a threat is detected, detailed
scrutiny including examination of the cargo is undertaken.
Transportation Arrangement
Arrangement of Transportation is a main working for any import and export. In
import department transportation arrangement process as follows:
Firstly, receive loading plan for cargo. Second, allocate weight KGs to per ton according
to container size. Third, contact with PPC (production planning and controlling) department for
cargo loading or unloading places and also placement of empty container. Fourth, forward cargo
loading detail/quotations to the transporter and negotiation for rates and compare rates to the
different transporters. Fifth, give cargo order to the select one transporter. Finally, load cargo
from the port of loading and company in touch with transporter till unloading of the cargo in the
final destination.
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EXPORT
05/08/2014
EXPORT
In International Trade, "exports" refers to selling goods and services produced in the
home country to other markets. Ship the goods and services out of the port of a country.
Customer Order Fulfillment Procedure:

Firstly generate P.O (purchase order) by the merchandising department
Export department received P.O from merchandising department
Then Export department sent P.O to the nominated forwarder of the customer
(Cargo ready to loading please provide conformation order/shipment for moving)
Forwarder contact with the customer and approval for shipment or vessel
Forwarder sent us customer approval message for shipment
After conforming the order then we arrange transportation and sent them cargo to the port for
custom clearance
After clearing the custom formalities then we move cargo for vessel and received B/L (bill of
leading) on Karachi port
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Process of Export products/Goods Delivered to the Customer named

Destination:
Generate P.O (purchase order) by the merchandising department.

Merchandising sends P.O to the export department.
Export department send P.O to the nominated forwarder of the customer that cargo is
ready please provide vessel or shipping line detail.
Forwarder contact with customer and get approval for shipment.
Forwarder send approval message of the customer to the export department.
Then export department arrange transport and sent cargo to the port for custom clearance.
After clearing custom formalities forwarder sent Bill of Leading to the export department
for moving cargo to the vessel.
After receiving B/L export department sent B/L to the customer.
GSP (Generalized system of Preference) / "A" Form / Certificate of

origin
The Generalized System of Preferences, or GSP, is a preferential tariff system which
provides for a formal system of exemption from the more general rules of the World Trade
Organization (WTO), (formerly, the General Agreement on Tariffs and Trade or GATT).
Specifically, it's a system of exemption from the most favored nation principle (MFN) that
obliges WTO member countries to treat the imports of all other WTO member countries no
worse than they treat the imports of their "most favored" trading partner. In essence, MFN
requires WTO member countries to treat imports coming from all other WTO member countries
equally, that is, by imposing equal tariffs on them, etc.
GSP exempts WTO member countries from MFN for the purpose of lowering tariffs for the least
developed countries, without also lowering tariffs for rich countries. The idea of tariff
preferences for developing countries was the subject of considerable discussion within the
United Nations Conference on Trade and Development (UNCTAD) in the 1960s. Among other
concerns, developing countries claimed that MFN was creating a disincentive for richer countries
to reduce and eliminate tariffs and other trade restrictions with enough speed to benefit
developing countries.
In 1971, the GATT followed the lead of UNCTAD and enacted two waivers to the MFN that
permitted tariff preferences to be granted to developing country goods. Both these waivers were
limited in time to ten years. In 1979, the GATT established a permanent exemption to the MFN
obligation by way of the enabling clause. This exemption allowed contracting parties to the
GATT (the equivalent of today's WTO members) to establish systems of trade preferences for
P a g e | 61
other countries, with the caveat that these systems had to be "generalized, non-discriminatory
and non-reciprocal' with respect to the countries they benefited (so-called "beneficiary"
countries). Countries were not supposed to set up GSP programs that benefited just a few of their
"friends.'
GSP basically is a free trade certificate for under develop countries issued by the European
Union for duty free trade.
GSP (previous 13.5% to 9.5%)
GSP plus (current 13% to 0%)
Documents for fulfillment of customer order

a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
Commercial Invoice
Packing List
GSP specimen
CDA ( carton dispatch Advice )
International Supplier Booking
Shipper: InterLoop Limited
Packing List custom
Prime Sheet
Commercial Invoice for custom Bill of Leading
Cargo detail form
Original B/L of cargo service
a. copy // // // //
l) Original E-Form of Bank
a. copy // // // //
Inco Terms important for Export

Inco terms use for trade shipment. Inco terms has many kinds but in InterLoop Export
department mostly used two terms FOB, CIF but rarely use DTS for special customer.
FOB (Free On Board)

A trade term requiring the seller to deliver goods on board a vessel designated by
the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's
rail. When used in trade terms, the word "free" means the seller has an obligation to deliver
goods to a named place for transfer to a carrier.
In FOB term company delivered goods/cargo on the origin port after clearing the custom duties
and received B/L and cargo ready for vessel.
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CIF (carriage insurance freight)

A trade term required the seller to arrange carriage of the goods by sea to a port of destination,
and provide the buyer with the documents necessary to obtain the goods from the carrier.
In CIF term company delivered goods/cargo on the named port of the buyer country before
custom clearance.
FOB
Faisalabad
(Arrange transport)
CIF
Faisalabad (arrange transport)
Factory (loading)
Factory
(Loading)
Karachi port
Karachi port
Custom Clearance
Custom Clearance
Bill of Leading
Bill of Leading
(Karachi)
Shipping Line/ Vessel
Buyer named Port
Custom Clearance
Buyer
(Where house)
Trucking
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Transshipment
Transshipment is the shipment of goods or containers to an intermediate destination, then
to yet another destination. Another reason is to combine small shipments into a large shipment
(consolidation), dividing the large shipment at the other end (deconsolidation).
Karachi Port
Singapore / Dubai
Low deep sea port
Unload Shipment
Deep sea port (mother shipment)
Final Destination Port
P a g e | 64
Customers of InterLoop
Customer #
200
081
094
124
138
165
186
195
198
173
183
177
194
185
131
184
179
142
105
Customer Name
Nike (ILNA-DTS) all over the world
Dobotex International
Friends Textile (Estonia)
Hope Hosiery (U.S.A)
JC Penny DTs (U.S.A)
Euro sox Plus (Netherland)
Primark Stores LTD (U.K)
Richelieu Hosiery (U.S.A)
Family Dollar Service (U.S.A)
Delta Textile (U.K, Rotterdam)
Penneys Ireland (Spain, Dublin)
Camano Germany (Herzberg)
Payless DTs (U.S.A chasten)
Sport Master (Russia)
Tesco {group customer (U.K)}
Dunnes Stores (Ireland)
Royce (U.S.A, Loss angelus)
Brands and Fashion (group)
McGregor Industries
Nike
Nike is the no. 1st and largest customer of the InterLoop.
Dobotex International
Dobotex International is the 2nd largest customer of the InterLoop and also gives a big
deal and profit to InterLoop.
Contract procedure with Customer or Buyer

o A buyer generated documents that authorized a purchase transaction.
o When accepted by the seller it becomes a contract binding on both parties.
o A purchase order sets forth the description, quantities, prices, discounts,
payment terms, date of performance or shipment, other associated terms and other
conditions and identification a specific seller.
P a g e | 65
Purchase order
A purchase order (PO) is a commercial document and first official offer issued by a buyer
to a seller, indicating types, quantities, and agreed prices for products or services. Acceptance of
a purchase order by a seller forms a contract between the buyer and seller, so no contract exists
until the purchase order is accepted. It is used to control the purchasing of products and services
from external suppliers.
Creating a purchase order is typically the first step of the purchase to pay process in an ERP
system.
Invoice
An invoice is a commercial document issued by a seller to a buyer, relating to a sale
transaction and indicating the products, quantities, and agreed prices for products or services the
seller has provided the buyer.
Payment terms are usually stated on the invoice. These may specify that the buyer has a
maximum number of days in which to pay, and is sometimes offered a discount if paid before the
due date. The buyer could have already paid for the products or services listed on the invoice.
In the rental industry, an invoice must include a specific reference to the duration of the time
being billed, so in addition to quantity, price and discount the invoicing amount is also based on
duration. Generally each line of a rental invoice will refer to the actual hours, days, weeks,
months, etc., being billed.
From the point of view of a seller, an invoice is a sales invoice. From the point of view of a
buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the
term invoice indicates money is owed or owing.
Packing list
A shipping list, packing list, waybill, packing slip (also known as a bill of parcel,
unpacking note, packaging slip, (delivery) docket, delivery list, manifest or customer receipt), is
a shipping document that accompanies delivery packages, usually inside an attached shipping
pouch or inside the package itself. It commonly includes an itemized detail of the package
contents and does not include customer pricing. It serves to inform all parties, including transport
agencies, government authorities, and customers, about the contents of the package. It helps
them deal with the package accordingly.
Certificate of Inspection
Pre-shipment inspection, also called reshipment inspection or PSI, is a part of supply
chain management and an important and reliable quality method for checking goods' quality
while clients buy from the suppliers. It ensures that the production complies with your
specifications and/or the terms of your purchase order or letter of credit. The Final Random
Inspection (FRI), or Pre Shipment Inspection (PSI), checks finished products when at least 80%
P a g e | 66
of your order has been produced and export-packed. Samples are selected at random, according
to standards and procedures. PSI This way the buyer makes sure; he gets the goods he paid for.
Although increasing numbers of clients would like to collect suppliers' information from
the Internet, this contains high risks because it is not a face-to-face transaction, and
Internet phishing and fraud can corrupt it. Pre-shipment inspection can greatly avoid this risk and
ensure clients get quality products from suppliers.
FCR (forwarder cargo receipt)

The Forwarder's Cargo Receipt provides validation that a vendor has delivered the
specified cargo and all related documents to the Customer.
Bill of lading
A bill of lading (sometimes abbreviated as B/L or BOL) is a document issued by a carrier
which details a shipment of merchandise and gives title of that shipment to a specified party.
Bills of lading are one of three important documents used in international trade to help guarantee
that exporters receive payment and importers receive merchandise. A straight bill of lading is
used when payment has been made in advance of shipment and requires a carrier to deliver the
merchandise to the appropriate party. An order bill of lading is used when shipping merchandise
prior to payment, requiring a carrier to deliver the merchandise to the importer, and at the
endorsement of the exporter the carrier may transfer title to the importer. Endorsed order bills of
lading can be traded as a security or serve as collateral against debt obligations.
Bills of lading have a number of additional attributes, such as on-board, received-for-shipment,
clean, and foul. An on-board bill of lading denotes that merchandise has been physically loaded
onto a shipping vessel, such as a freighter or cargo plane. A received-for-shipment bill of lading
denotes that merchandise has been received, but is not guaranteed to have already been loaded
onto a shipping vessel. Such bills can be converted upon being loaded. A clean bill of lading
denotes that merchandise is in good condition upon being received by the shipping carrier, while
a foul bill of lading denotes that merchandise has incurred damage prior to being received by the
shipping carrier. Letters of credit usually will not allow for foul bills of lading.
Two Types of Lading:
o House Bill of Lading
o Master Bill of Lading
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House Bill of Lading:

House Bill of Lading makes when shipment through forwarders or indirectly. House Bill
of Lading use for only internally purpose not dispatch to the customer or buyer.
Master Bill of Lading:
Master Bill of Lading makes when shipment directly through the shipping line not to the
forwarder. Master Bill of Lading used for dispatch purpose to the customer or buyer.
Bills of Exchange
A bill of exchange or "draft" is a written order by the drawer to the drawee to pay money
to the payee. A common type of bill of exchange is the cheque (check in American English),
defined as a bill of exchange drawn on a banker and payable on demand. Bills of exchange are
used primarily in international trade, and are written orders by one person to his bank to pay the
bearer a specific sum on a specific date. Prior to the advent of paper currency, bills of exchange
were a common means of exchange.
Commercial invoice
A commercial invoice is a document used in foreign trade. It is used as
a customs declaration provided by the person or corporation that is exporting an item across
international borders. Although there is no standard format, the document must include a few
specific pieces of information such as the parties involved in the shipping transaction, the goods
being transported, the country of manufacture, and the Harmonized codes for those goods. A
commercial invoice must also include a statement certifying that the invoice is true, and a
signature. A commercial invoice is used to calculate tariffs, international commercial terms (like
the Cost in a CIF) and is commonly used for customs purposes. A Certificate of Origin (often
abbreviated to C/O or COO) is a document used in international trade. It is a printed form,
completed by the exporter or its agent and certified by an issuing body, attesting that the goods in
a particular export shipment have been wholly produced, manufactured or processed in a
particular country.
Or in Short A Certificate of Origin (CO) is a document which is used for certification that the
products exported are wholly obtained, produced or manufactured in a particular Country. It is
generally an integral part of export documents.
Certificate of Origin: This coal was recovered from the wreck of R.M.S. Titanic during the 1994
Titanic Research and Recovery Expedition
P a g e | 68
The origin does not refer to the country where the goods were shipped from but to the country
where they were made. In the event the products were manufactured in two or more countries,
origin is obtained in the country where the last substantial economically justified working or
processing is carried out. An often used practice is that if more than 50% of the cost of producing
the goods originates from one country, the "national content" is more than 50%, then, that
country is acceptable as the country of origin.
When countries unite in trading agreements, they may allow Certificate of Origin to state the
trading bloc, for example, the European Union (EU) as origin, rather than the specific country.
Determining the origin of a product is important because it is a key basis for applying tariff and
other important criteria. However, not all exporters need a certificate of origin, this will depend
on the destination of the goods, their nature, and it can also depend on the financial institution
involved in the export operation.
Notify Party
In a contract of carriage, the notification of a shipments arrival is usually sent to this
party whose address appears on the shipping document. This party is usually either the buyer or
the importer.
Container Release Order

CRO is a certificate or issuance letter by the shipping line to the company or transporter
that container released or pick up from the line or terminal. Basically CRO is a booking
confirmation certificate of container.
Covering Letter
Show the authenticity of documents submission in the bank according to the bank or
buyer requirement.
ISF or 10+2 (import security filing)

United States Customs and Border Protection (CBP) has announced a new rule, known as
the Importer Security Filing (ISF) or more commonly called 10+2; which requires containerized
cargo information, for security purposes, to be transmitted to the agency at least 24 hours (19
CFR section 149.2(b)[citation needed] before goods are loaded onto an ocean vessel headed to
the U.S. (i.e. mother vessel, not feeder vessel) for shipment into the U.S. 10+2 is pursuant to
section 203 of the SAFE Port Act, and requires importers to provide 10 data elements to CBP, as
well as 2 more data documents (Container Status Messages and the vessel's Stow Plan)from the
P a g e | 69
carrier. The new rule, published on November 26, 2008, went into effect on January 26, 2009.
CBP is taking a phased-in approach in terms of implementation and enforcement. During the
first 12 months, importers will be warned of infractions instead of being fined, with the hope that
the importers will establish a filing system. All ISF filings are required to be submitted
electronically via the Automated Broker Interface (ABI) or the Automated Manifest System
(AMS). After the phase-in period, on January 26, 2010, 10+2 will officially be effective and
importers will be required to comply. If compliance is not met, they can face fines up to $5,000
for each violation.
The following 10 data elements are required from the importer:
1. Manufacturer (or supplier) name and address
2. Seller (or owner) name and address
3. Buyer (or owner) name and address
4. Ship-to name and address
5. Container stuffing location
6. Consolidator (stuffer) name and address
7. Importer of record number/foreign trade zone applicant identification number
8. Consignee number(s)
9. Country of origin
10. Commodity Harmonized Tariff Schedule number to six (6) digits
From the carrier, 2 data elements are required:
11. Vessel stow plan
12. Container status messages
The above information is required for the Department of Homeland Security to "push out" U.S.
borders.
Certificate of Compliance
The basic definition of a Certificate of Conformance, Certificate of Compliance, or
Certificate of Conformity is straightforward, at least in American commerce: it is a document
certified by a competent authority committing, or promising, that the supplied good or service it
covers meets the agreed-upon or required specifications.
In reality, there is even more at stake. The purpose of Certificates of Conformance (or
Compliance) is to attach the promises a business makes about what it is delivering to specific
points in the production process, as the goods and services move through the phases that bring
them to the end-user.
P a g e | 70
Compliance to type-approval requirements can be denoted by a third-party marking on

the back of the product (e.g. UL, TUV, CSA), or by a Type-Approval certificate obtained by a
manufacturer and kept on file. The CE mark found on the back of many electronic devices does
not mean that the product has obtained Type Approval in the European Union. The CE mark is
the manufacturer's declaration that the system/assembly meets the MINIMUM safety
requirements of all the Directives (laws) applicable to it, and of itself, does not signify any Third
Party involvement in the design or testing of a system/assembly.
Single Country Declaration (T.D)

T.D is certificate of locally produced goods.
Uster Report
Uster Technologies, in its industry often called Uster, is a Swiss manufacturer of
analytical instruments and on-line monitoring systems for the textile industry, based in Uster,
Switzerland. Uster Report represent the product detaile.
DTRE (Duty and Tax Remission for Export)

DTRE invoice is basically made for custom and sales tax. In which DTRE we clearly
mentioned that every imported products or goods we use for the purpose of export with adding
value not for sale locally and clear that total quantity of import products or goods and used
quantity and also explain remaining balance of import goods.
Automated manifest system (AMS)

A computer system the Customs agency use to check invoices on imports. The carriers,
port, freight stations, and service personnel can use this.
194 Payless Customer of U.S.A with the C.I.F shipment and DTS term
Dispatch Advice
E-Form (E-Form no. add in black book)
Prime Sheet
Packing List
Composition Detail
Specimen Bill of Lading
BL instruction submitted to line shipment (APL)
Final Prime Sheet (include FOB amount values)
Commercial invoice for Custom
P a g e | 71
Dividing Documentation of 194 in Different Categories:

194 Common Documents
o Commercial Invoice
o BL
2
o E-Form
2
o Goods Declaration
194 Custom Docs
o C.I for Custom
o Prime Sheet
o Dispatch Advice
o CRO
194 Bank Docs
o Insurance (CIF)
o E-Form
o G.D
o BL
o Covering Latter
2
o Invoice for Bank
2
194 Auditor Docs
o Custom Invoice
o Prime Sheet
o Packing List
194 Final Docs
o Covering Latter
o Commercial Invoice
o Packing List
o Original BL
o N.N BL
o Textile Declaration
o Compliance Certificate
o Insurance
o E-Form Original
o Duplicate E-Form
2
o G.D
P a g e | 72
Billing Procedure
Bill Receiving
Checking Bills
System Entry
Audit
Posting in System
Bill Receiving
Forwarder Bill received by the concerned person but transporter bill directly received.
Checking Bills
In checking bills checks billing rates according to current or agreed rates with forwarders
or transporters.
System Entry
All bills enter in ERP system of the company.
Audit
After checking and enter in system then send bills to auditor for import & export
department. Auditor checks the agreed rats of the bills and sent them to the billing person.
After auditing the bills then I&E department send bills to the A/C or finance department.
Posting in System
After sending bills to the A/C department then post in the system.
Billing Process
F/D make cheque
Bill Receive
System automatically generate balance
Check Rates
F/Auditor final checked and
post them in ERP
Bills Enter in ERP
Sent to the Auditor I&E

F/D attached posting slip
with bills and sent to F/Audit
After checking auditor send to us
Sent to A/C, Finance Department
Post in ERP System
P a g e | 73
Conclusions:
This is my first practical experience in an organization so during this time period I learned lot of
this related to practical job and this internship period help me to apply my educational learning in this
organization. When I thought that InterLoop is the Pakistan largest Hosiery textile industries chain this
thing is very encouraging me.
The working environment of InterLoop city office is like a technical institute, so that its a
wonderful opportunity for me to increase and learned my practical exposures.
InterLoop also promotes its brand and Dairies by their attractive and modern techniques.
The product quality is higher than other local industries. So in Pakistan InterLoop should increase the
growth rates for effective competition.
P a g e | 74
Recommendations
Following are our recommendations
They should advertise their product through local media and advertise their products by TV
ads.
Proper parking place should develop with office.
They should try to promote the own brand with the same quality & quantity.
InterLoop should built the web page in Pakistan
InterLoop should Increase the advertisement programs in electronic or local media.
Increase the number of employees in city office in Pakistan for more effective or efficient
work.
Reduce paper wastage in city office.
P a g e | 75
References:
Waheed Iqbal (DGM of SCL department)

Contact No. 0301-8661252 Email: wiqbal@interloop.com.pk
Muhammad Sajjad (Sr. Manager Import & Export)

Contact No.03018661273 Email: msajjad@interloop.com.pk
Kashif Zaman (DM Import & Export)

Contact No.0301-8661322 Email: kzaman@interloop.com.pk

InterLoop's Rise as South Asia's Largest Sock Manufacturer

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Page |1

Department of Business Administration

This report is submitted in partial the requirements for a Master of Business

I am grateful to Mr. Waheed Iqbal DGM (SCL) of InterLoop, who provided me

After Shipment Payment

Documents for fulfillment of customer order

Overview of the Organization

I Care Our Core Values

We are ethical in our functions & dealings

We aggressively face competition

We nurture a caring environment internally

Navid Fazil ( Chief Operating Officer/Director)

Jahan Zeb Khan Banth (Director)

Tariq Rashid Malik (Director)

Shereen Aftab (Director)

Muhammad Maqsood ( Director)

Saeed Ahmed Jabal ( Executive Director/ Company Secretary)

Total Covered Area

Total Covered Area

Total Covered Area

InterLoop Producing Worlds Most Prestigious Brands

Awards and Honors

Best Exporter Trophy for the year

Best Exporter Trophy for the year

Best Exporter Trophy for the year

Best Exporter Trophy for the year

Best Exporter Trophy for the year

Best Exporter Trophy for the year

Best Exporter Trophy for the year

ISO 9001 REV 2008

Code of Conduct approved

InterLoop Supply Chain

These are the socks which contains loops (terry) at the

The part of a sock that covers the rounded

Yarn and its types

The table shows some of the characteristics of the Yarn types

Clock wise twist

Low absorbency which allows the fiber to dry quickly.

It has anti clock wise twists.

Polyester covered Lycra

Polyester covered Lycra

Socks Manufacturing Process

Machinery Capacity at InterLoop

LIST OF KNITTING MACHINES

InterLoop own Brands

GEOGRAPHICAL DISTRIBUTION OF EXPORTS

InterLoop Dairies Limited

Departments and Their Working in Interloop Limited:

The procedure that is followed by this department is as under;

The procedure that is followed by this department is as under;

PPC receives a sampling request with complete specifications/details from

The procedure that is followed by this department is as under

The procedure that is followed by this department is as under;

Receipt of pressing/ packing/loading plan from PPC

Local Sale of Socks

Parts, Dyes & Chemicals and General Store

Process for imported accessories POs

Packaging at our cost

Internal Purchase Order Concerned Merchandiser

Shipment terms agreed with Customer

Our cost air shipment

CFR / DDP (In Export) / Ex-Works (In Imports)