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EXPORT OF FROZEN STRAWBERRI’ES
A DETAIL EXPORT DOCUMENT
Submitted to:Submitted by:Prof. Avinash Purandare Ajit Dhaygude (MBADepty. Director , SIIB AB) PRN08020242012
TABLE OF CONTENTS
TITLE INTRODUCTION WHY STRAWBERRY COMPANY PROFILE:- “ SHRI STRAWBERRY EXPORTS” AREAS OF RAW MATERIAL SUPPLY METHOD OF PROCESSING GRADING STANDARDS
➢ CODEX STANDARD FOR QUICK FROZEN STRAWBERRIES (CODEX STAN 52-1981) ➢ CODEX STANDARD FOR CANNED STRAWBERRIES (CODEX STAN 62-1981)
PAGE NO. 3 4 7 8 10 11
PACKAGING ACCORDING SPECIFICATIONS GETING THE GOVERNMENT SUBSIDIES FOR EXPORT REQUIREMENTS FOR EXPORT ➢ REGISTRATION OF EXPORTERS ➢ APPOINTING OF THE OVERSEAS AGENTS ➢ OBTAINING EXPORT LICENSE ➢ OBTAINING CREDIT INSURANCE ➢ ARRANGING FINANCE FOR EXPORTS ➢ UNDERSTANDING THE EXCAHNGE RATES ➢ PREPARING EXPORT DOCUMENTS ➢ SHIPPING AND CUSTOM CLEARENCE WHERE TO EXPORT AND WHY LOGISTICS MOVEMENT SWOT ANALYSIS COMPANIES INVOLVED IN THIS BUSINESS REFRENCES ANNEXURE AND ANNEXURE- B
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13 16 17 18 To 26
27 29 31 32 33 34 & 35
1) LIST OF TABLES:➢ World strawberries production 2005-2007 in metric tonnes ➢ Nutritional chart of strawberry. ➢ Country-wise export of fresh strawberries from India during 2001-02. ➢ World’s fozen fruit market
2) LIST OF GRAPHS:➢ Maharashtra graph with growing areas of strawberry
➢ Worlds strawberry production (in volumes)
3) RATE OF EXCHANGE:-
American dollar Exchange rate(27 Jan 2009)
Euro (for Belgium Markets)
4) GLOSSARY:➢ WTO: ➢ DC: ➢ GATT: ➢ EU: ➢ CAP: ➢ TIR:
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World Trade Organization Developing Countries General Agreement on Trade and Tariffs European Union Common Agricultural Policy Transport International Routier
➢ ➢ ➢ ➢
FOB: IQF: CAGR: USDA:
Free On Board Intensive quick frozen Compound Annual Growth Rate United states department of agriculture
INTRODUCTION:The frozen fruits and vegetables market in the world contributes a meager percentage to the total consumption of fruits and vegetables. In the developed markets like Europe and US, frozen vegetables are 10% to the total vegetable consumption. In the under developed and developing markets, its share is much lower. However in the recent years, this category has gained importance due to some basic advantages it offers in comparison to fresh fruits and vegetables. With a strong back up from the technological innovations, the advantages of frozen fruits and vegetables have made it much more reachable and affordable to the consumers around the globe. Garden strawberries are a common variety of strawberry cultivated worldwide. Like other species of Fragaria (strawberries), it belongs to the family Rosaceous. Technically it is not a fruit but a false fruit, meaning the fleshy part is derived not from the plant's ovaries (achenes) but from the peg at the bottom of the bowl-shaped hypanthia that holds the ovaries. The Garden Strawberry was first bred in Europe in the early 18th century. This represents the accidental cross of Fragaria virginiana from eastern North America, which was noted for its flavor, and Fragaria chiloensis from Chile, which was noted for its large size. Cultivars of Fragaria × ananassa have replaced in commercial production the Woodland Strawberry, which was the first strawberry species cultivated in the early 17th century. Strawberries are often grouped according to their flowering habit. Traditionally, this has consisted of a division between "June-bearing" strawberries, which bear their fruit in the early summer and "Ever-bearing" strawberries, which often bear several crops of fruit throughout the season. More recently, research has shown that strawberries actually occur in three basic flowering habits: short day, long day, and day neutral. These refer to the day length sensitivity of the plant and the type of photoperiod which induces flower formation.
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Day neutral cultivars produce flowers regardless of the photoperiod. Most commercial strawberries are either short day or day neutral. While rarely if ever done commercially, strawberries may also be propagated by seed, and a few seed propagated cultivars have been developed for home use. Seeds are acquired commercially or saved from fruit ripened early in the summer. They may at once be sown, either in a sheltered border outdoors or in pots, or better in March under glass, when they will produce fruits in June of the same year. The soil should be rich and light, and the seeds very slightly covered by sifting over them some leaf-mould or old decomposed cow dung. When the plants appear and have made five or six leaves, they are transplanted to where they are to remain for bearing. The seeds sown in pots may be helped on by gentle heat, and when the plants are large enough they are pricked out in fine rich soil, and in June transferred to the open ground for bearing. WHY STRAWBERRY:The ability to preserve the food has enabled the producer to make its product available to consumers sitting in the other corner of the world. Added to this is the advantage of convenience, which has become very relevant in today’s world as people are leading busier lives. With more and more women working, the amount of time spent in the kitchen is reducing. As a result, frozen food category is expanding. The advent of new technologies has resulted in the affordability of the frozen food, which means frozen food reaching even the middle class kitchens. The statistics shows a very healthy growth rate. The share of frozen fruits and vegetables category is expected to grow in the future at the expense of fresh fruits and vegetables. These market realities have made this category attractive enough to the marketers to be explored. Thus a lot of countries and companies are focusing their efforts on capturing some share in the world market for frozen fruits and vegetables.
In addition to being consumed fresh, strawberries can be frozen, made into preserves as well as dried and used in such things as cereal bars.
➢ Strawberries are a popular addition to dairy products, as in strawberry flavored ice cream, milkshakes, smoothies and yoghurts. Strawberry pie is also popular.
Cosmetically, they are supposedly used for whitening teeth. They can be crushed and made into an exfoliant for skin.
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Strawberry pigment extract can be used as a natural acid/base indicator due to the different color of the conjugate acid and conjugate base of the pigment. Madam Tallien, a great figure of the French Revolution, who was nicknamed Our Lady of Thermidor, used to take baths full of strawberries to keep the full radiance of her skin. Fontenelle, centenarian writer and gourmet of the 18th century, believed his longevity was due to eating strawberries.
WHY FROZEN STRAWBERRY- WHY NOT THE FRESH FRUITS:➢ Frozen Fruits vis-à-vis Fresh Fruits The rising popularity of frozen fruit products is propelled by the fast paced modern lifestyle that has led consumers to look for easy and hygienic fruit products that eliminate the conventional hassles of cleaning and chopping fresh fruits thereby by evading the all important time-constraints of traditional cooking. The leading category in the frozen fruits market is “sliced strawberries in sugar” which has displayed excellent perseverance in terms of sales. ➢ Sunny Skies Ahead for Frozen Fruits and Vegetables The WORLD market is no different from other western hemisphere market, where the category of frozen fruits and vegetables present an interesting opportunity. With the demand soaring, the market for frozen vegetables and fruits continues to gain momentum with leading manufacturers commercializing the benefits of vegetables and fruits as an indispensable part of a healthy diet. With their fast paced lifestyle, the consumers are more than willing to get rid of the fresh vegetable concept. As a result of which, processors are innovating hard to make life easy for the consumers. NUTRITION:One cup (144 g) of strawberries constitutes approximately 45 calories (188 kJ) and is an excellent source of vitamin C and flavonoids.
1 cup, whole Nutrie U nt nits 144 g
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Energy Protein Total lipid (fat) Carbohydrate, by difference
kj Gm Gm Gm
181 0.88 0.53 10.1
WORLD WIDE DISTRIBUTION:World strawberries production 2005-2007 in metric tonnes (only countries with production of more than 50000 tonnes in 2007 are mentioned).
Country USA Russia Spain Turkey Korea, South Japan Poland Mexico Germany Egypt Morocco United Kingdom Ukraine Italy France Total world
2005 1,053,242 221,000 320,853 200,000 201,995 196,200 184,627 162,627 146,500 100,000 118,600 68,600 46,200 146,769 57,637 3,789,701
2006 1,090,436 235,500 333,500 211,127 205,307 190,600 193,666 154,893 173,230 105,000 112,000 65,900 47,800 131,305 57,221 3,908,978
2007 1,115,000 324,000 263,900 239,076 200,000 193,000 168,200 160,000 153,000 104,000 100,000 66,000 63,000 57,670 57,500 3,822,989
“SHRI STRAWBERRY EXPORTS”
EXPORT AUTHORITY: AJIT DHAYGUDE 158/A, Kakinada Hills, Jogeshwari Road, Mahabaleshwar, Satara. 412802
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Country Brand INDIA STRAWBERRY
Product details:We are a manufacturer from INDIA which specializes in production and supply of quality frozen fruits, such as IQF strawberry.
Our factory is certified by ISO9001, KOSHER, HACCP, and FDA registration.
The strawberry season will come in April. The strawberry varieties include American no.6, American no.13, all star, senga-sengana, and honey. The strawberries are processed into individual quick frozen (IQF), get frozen in plastic pails or drums with sugar, becoming a series of frozen diced and frozen dehydrated products. Our plant is large and equipped with advanced facilities, which ensures both high product quality and sufficient capacity for production and supply.
(1). I. Q. F. American no.6 • • • • •
Size:15/25mm,25/35mm,35/40mm,40mm up Color: Red color outside and pink inside Packing:10kgx1,2kgx6,1kgx5,1kgx10,30lbsx1 Load:25mt/40' fcl,19mt/40' FCL(America) Processing: May~June Delivery: in the month of july
Q. F. American no.13 Size:15/25mm,25/35mm,35/40mm,40mm up Color: Dark red outside and pink inside Packing:10kgx1,2kgx6,1kgx5,1kgx10,30lbsx1 Load:25mt/40' fcl,19mt/40' FCL(America)
• • • •
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Processing: May~June Delivery: End of july month of current year
(3)Frozen whole strawberries with sugar • •
Size:15/25mm,25/35mm with sugar 4+1,9+1,16+2 Color: Red outside and pink inside Packing:30lbs(plastic pail),400lbs(drum) Load:25mt/40' fcl,19mt/40' FCL(America) Processing: May~june Delivery: End of july with current year
AREAS OF RAW MATERIAL SUPPLY:As India is diversified country with different geographical locations. Each area has its own identity. Out of 100% strawberry cultivation, alone Mahabaleshwar (M.S.) constitutes around 85% and other parts which include Himachal Pradesh, Banglore, some parts of south east states. Organic farming is yet another area where Mahabaleshwar farmers are taking a lead. Farmers adhere to the Euro Gap Certification where pesticides are sprayed the least. Today, with the region offering the perfect weather conditions for growing strawberries, there are some 1,350 strawberry farmers in Mahabaleshwar producing 87 percent of the Indian fruit crop. But the increased supply of the fruit in the market has depressed prices. And this is a cause for concern for the farmers.
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INDIA’S 85% STRAWBERRY PRODUCTION DONE HERE… ….
Fig:- Areas of strawberry collection for the export purpose.
EXPORTS OF FRESH STRAWBERRIES FROM INDIA:Table-1 : Country-wise export of fresh strawberries from India during 2001-02. Country Quantity (Tonnes) Austria Bangladesh Germany Jordan U.S.A. Total
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Value (Rs. in lakhs) 6.65 4.88 0.005 0.39 0.81 12.74
4.82 110.50 0.01 0.25 1.96 117.55
Source : APEDA, New Delhi
PROCESSING METHODS:1) PROCESS AND METHOD OF FREEZING:-Most acceptable method to store and
preserve vegetables and fruits at home is freezing. Freezing retains the nutritional value. In order to maintain the quality in foods, they must be stored at 0° F, blanched properly and must be used within the storage time. Immediately after harvesting vegetables, they must be frozen to prevent chemical reactions that can spoil the produce. Fruits are treated with pure form of ascorbic acid or soaked in vinegar solution (also, coated with sugar and lemon juice) to deactivate the enzymes and prevent formation brown tinges and vitamin C loss.
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Frozen products when exposed to air develop bad smell or taste. In order to prevent against such chemical reactions, the product is covered with an airtight wrapping material. 2) TYPE OF FREEZING CONTAINERS ➢ Plastic film bags are also employed as effective containers for storing fruits and vegetables during freezing. These containers are usually covered with a layer of disposable cardboard freezer boxes to prevent damage. ➢ Plastic-coated freezer containers or high quality and thick aluminum foils are used to restrict entry of vapor and air and at the same time retain moisture in the product. These containers are flexible and strong and fastened with seal specially intended for freeze packaging. ➢ Freeze and cook bags are the most preferred freeze containers due to their ability to tolerate temperatures below 0° F as well as boiling point temperatures. These containers are available in various sizes and in large rolls. The containers are heat fastened to prevent exposure to moisture.
CODEX STANDARD FOR QUICK FROZEN STRAWBERRIES
(CODEX STAN 52-1981) This standard shall apply to quick frozen strawberries (excluding quick frozen strawberry puree) of the species Fragaria grandiflora L. and Fragaria vesca L. as defined below and offered for direct consumption without further processing, except for size grading or repacking if required. It does not apply to the product when indicated as intended for further processing or for other industrial purposes.
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Quick frozen strawberries are the product prepared from fresh, clean, sound, ripe and stemmed strawberries of firm texture conforming to the characteristics of Fragaria grandiflora L. or Fragaria vesca L. Definition of Defects • • • • • Partially uncoloured - 25%-75% of the outer surface area without the colour characteristic of the variety. Completely uncoloured - 75% or more of the other surface area without the colour characteristic of the variety. Disintegrated - broken, crushed or smashed Stalks or parts of stalks - if each greater than 3 mm in one dimension. Blemished - showing visible signs of pest attack or pathological or physical injury. Misshapen - not normally developed and more in particular containing hard parts in the fruit flesh. Tolerances for Defects Based on a sample unit of 500 g the drained fruit ingredient of the product as defined in paragraph shall have not more than the following: (a) Stalks or parts of stalks each greater than 3 mm in one dimension 3 by number. (b) Calyces 3 cm² (c) Other extraneous vegetable material 3 cm² (d) Completely uncoloured whole berries 1 by number (e) Partially uncoloured whole berries 5% m/m (f) Disintegrated whole berries 5% m/m (g) Blemished 5% m/m (h) Misshapen whole berries 2% m/m Tolerances for Sizes of Whole Strawberries When presented as sized, a tolerance of 10% by number is allowed for fruit that fail to meet the requirements of paragraph. In the case of Fragaria grandiflora L. whether sized or unsized, the amount of fruit having a
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maximum diameter of less than 15 mm shall not exceed 5% by number. Classification of "Defectives" Any sample unit from a sample taken in accordance with the FAO/WHO Codex Alimentarius Sampling Plans for Prepackaged Foods (AQL-6.5) (Ref. No. CAC/RM 42-1969), shall be regarded as "defective" when: (a) The total soluble solids of the sample unit is outside the range specified in 3.2.1 or 3.2.2 as appropriate; or (b) Any one of the organoleptic and other characteristics under 3.3.1 are not complied with; or (c) (i)Any one of the defects listed under 3.5 is present in more than twice the amount of the specified tolerance for the individual defect; or (ii)The total of defects in (e) to (i) exceeds 15% for whole strawberries; or (iii)The total of defects in (g) and (i) exceeds 12% for halved, sliced or cut strawberries; or (d) The tolerance for sizes of whole strawberries as listed in 3.6 is exceeded. HYGIENE 5.1 It is recommended that the product covered by the provisions of this standard be prepared and handled in accordance with the appropriate sections of the Recommended International Code of Practice - General Principles of Food Hygiene (CAC/RCP 1-1969, Rev. 2 (1985) Codex Alimentarius Volume a) and other Codes of Practice recommended by the Codex Alimentarius Commission which are relevant to this product. b) To the extent possible in Good Manufacturing Practice, the product shall be free from objectionable matter. c) When tested by appropriate methods of sampling and examination, the product: - shall be free from microorganisms in amounts which may represent a hazard to health; - shall be free from parasites which may represent a hazard to health; and - shall not contain any substance originating from microorganisms in amounts which may represent a hazard to health.
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LABELLING In addition to the requirements of the Codex General Standard for the Labelling of Prepackaged Foods (Ref. No. CODEX STAN 1-1985), (Rev. 1-1991) Codex Alimentarius Volume 1), the following specific provisions apply: The Name of the Food The name of the food as declared on the label shall include "strawberries" or in the case of Fragaria vesca L., "wild strawberries" or "alpine strawberries". The words "quick frozen" shall also appear on the label, except that the term "frozen"2 may be applied in countries where this term is customarily used for describing the product processed in accordance with sub-section 2.2 of the standard. In addition, there shall appear on the label in conjunction with, or in close proximity to, the word "strawberries": (a) The style, as appropriate: "halves", "slices" or "cut". (b) The packing medium: "with (name of the sweetener and whether as such or as the syrup)". If the product is presented in accordance with sub-section 2.4.1(c) the label shall contain in close proximity to the word "strawberry" such additional words or phrases that will avoid misleading or confusing "frozen": This term is used as an alternative to "quick frozen" in some English speaking countries. Size Designation If a term designating the size of the strawberries is used; (a) It shall be supported by a correct graphic representation on the label of the size range to which the strawberries predominantly conform; and/or
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(b) By a statement of the predominant range of the maximum diameter of the strawberries in millimeters, or fractions of an inch in those countries where the English system is in general use: and/or (c) It shall conform to the customary method of declaring size in the country in which the product is sold. Additional Requirements Information for keeping and thawing of the product shall be given on retail packs. Bulk Packs In the case of quick frozen strawberries in bulk the information required above must either be placed on the container or be given in accompanying documents, except that the name of the food accompanied by the words "quick frozen" (the term "frozen" may be used in accordance with sub-section 6.1.1 of this standard) and the name and address of the manufacturer or packer must appear on the container. GRADING STANDARDS:Grading depends upon flavor, odor, size, color, character and texture, and absence of defects. It comes in the following grades: US Grade A, US Grade B, US Grade C and US Grade D. This frozen fruit comes in the following varieties: • Whole; whole sized form in IQF style. • Whole form in block style. • Sliced in IQF style. • Sliced in block style. • Sliced in 4+1 sugar and 4+1 sugar with stabilizer styles. • Whole; whole in syrup styles. • Whole with sugar. USDA: QUALITY GRADES FOR FROZEN VEGETABLES US Department of Agriculture (USDA) grades the canned and frozen vegetables based on their quality. USDA also provides an inspection program to certify the quality of frozen
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vegetables. Highly qualified scientists are employed to examine the quality of the processed vegetables against the established US grade standards. The grades assigned to the products acts as a guide to the consumers during purchasing of canned and frozen vegetables. 1. US Grade A: Grade A vegetables are known for their softness, color, and texture. These vegetables are most juicy and highly flavored. The other name for Grade A products is “fancy” which is mentioned on the label. 2. US Grade B: Grade B vegetables possess superior quality but are not on par with Grade A vegetables, in terms of color and texture. These vegetables are fully-grown when compared with Grade A vegetables. Therefore they taste slightly different from Grade A type. Other name for Grade B product is “Extra Standard”. 3. US Grade C: Grade C vegetables are mainly used as constituents in preparing casserole or stew, and soup, as they are fully-grown. These vegetables are less flavored. Grade C products are also known as “Standard”.
PACKAGING Packaging used for quick frozen strawberries must: a) Protect the organoleptic and quality characteristics of the product; b) Protect the product from bacteriological and other contamination (including contamination from the packaging material itself); c) Protect the product from moisture loss, dehydration and, where appropriate, leakage as far as technologically practicable; and d) not pass on to the product any odour, taste, colour or other foreign characteristic PACKAGING SPECIFICATIONS:-
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Photo 2: Tunnel arrangement showing cooling coil, packed Strawberries ready for precooling and
Fruits and Vegetables Quantity Inland Haulage Sea freight
500 MTs 25% (Subject to maximum of Rs. 1/- per
Photo 3: After precooling Strawberries are stored in a cold storage maintained at 0°C & 90% RH ready for loading in refrigerated container for the journey by road
Kg.) 25% (Subject to maximum of Rs 5/- per kg.)
ASIDE- AN INTRODUCTION ASIDE stands for Assistance to States for Development of Export Infrastructure and other Activities. The responsibility for promotion of exports and creating the necessary infrastructure has largely been undertaken by the Central Government so far, it is increasingly felt that the states have to play an equally important role in this endeavor. The role of the State Governments is critical from the point of view of boosting production of exportable surplus, providing the infrastructural facilities such as land, power, water, roads, connectivity, pollution control measures and a conducive environment for production. It is felt that coordinated efforts by Central Government in cooperation with the State Governments are necessary for development of infrastructure for exports promotion.
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EXPORT PROCEDURE:Registration of exporters: Registration with regional authorities of Director General of Foreign Trade (obtaining Importer- Exporter code number). An application for grant of IEC number shall be made by the registered head office at Mumbai office. The process of online application at the DGFT web site http://dgft.gov.in Procedure for physical application: The duly signed application form should be supported by the following documentsa. Bank receipt (in duplicate)/Demand draft /EFT details evidencing payment of application fee of Rs. 1000 (Rs. 500 for electronically filled application). b. Certificate from the banker of the applicant firm in part B of the form. c. Self certified copy of PAN issued by income tax department. d. Two copies of passport size photographs. e. Photograph on the banker’s certificate should be attested by the banker of the applicant. f. Self addressed envelope and stamp of Rs. 30. g. These documents may be kept in file cover.
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Registration with export promotion councils/ commodity board/ Authorities. Registration with value added tax authorities. Registration with central excise authorities
Procedure for appointing overseas agents While appointing any overseas agents following precautions are taken1. Size of agents company. 2. Date of foundation of the agents company. 3. Company’s ownership and control. 4. Company’s capital, funds available and liabilities. 5. Name, age and experience of the company’s senior executives. 6. Number, age and experience of the company’s salesman. 7. Other agencies that company holds, including those of competing products and turnover of each. 8. Status about company’s association with other principals. 9. New agencies that the company obtained or lost during the past year. 10. Company’s total annual sales and trends in its sales in recent years. 11. Company’s sales coverage, overall and by area. 12. Number of sales calls per month and per salesman by the company staff. 13. Any major obstacles expected in the company’s sales growth. 14. Agents capability to provide sales promotion and advertising services. 15. Agents transportation facilities and warehousing capacity. 16. Agent’s rate of commission, payment terms required. 17. References on the agents from banks, trade associations and major buyers. 7.6 Document required The following are the documents required for the processing of the Shipping Bill:
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• • • • • • • • • •
GR forms (in duplicate) for shipment to all the countries. 4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package. 4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc. Contract, L/C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate. White Shipping Bill in triplicate for export of duty free of goods. Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback. Yellow Shipping Bill in triplicate for the export of dutiable goods. Blue Shipping Bill in 7 copies for exports under the DEPB scheme.
The formats presented for the Shipping Bill are as given below:
Note :- For the goods which are cleared by Land Customs, Bill of Export (also of 4 types white, green, yellow & pink) is required instead of Shipping Bill. Documents Required for Post Parcel Customs Clearance In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:
Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. It is known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender.
Despatch Note, also known as CP2. It is filled by the sender to specify the action to be taken by the postal department at the destination in case the address is nontraceable or the parcel is refused to be accepted.
Prescriptions regarding the minimum and maximum sizes of the parcel with its
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maximum weight : Minimum size: Total surface area not less than 140 mm X 90 mm. Maximum size: Lengthwise not over 1.05 m. Measurement of any other side of circumference 0.9 m./ 2.00 m. Maximum weight: 10 kg usually, 20 kg for some destinations.
Commercial invoice - Issued by the seller for the full realisable amount of goods as per trade term. Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export.
Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being presented by the Customs authorities of the importing country. It facilitates entry of goods in the importing country at preferential tariff rate.
Legalised/ Visaed Invoice - This shows the seller's genuineness before the appropriate consulate/ chamber of commerce/ embassy. It do not have any prescribed form.
Certified Invoice - It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Sight Draft and Usance Draft are available for this. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery.
• • •
Packing List - It shows the details of goods contained in each parcel/ shipment. Certificate of Inspection - It shows that goods have been inspected before shipment. Black List Certificate - It is required for countries which have strained political relation. It certifies that the ship or the aircraft carrying the goods has not touched those country(s).
Weight Note - Required to confirm the packets or bales or other form are of a stipulated weight.
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Manufacturer's/ Supplier's Quality/ Inspection Certificate. Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and are available.
• • • • • • •
Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain items such as metallic ores, pigments, etc. Certificate of Shipment - It signifies that a certain lot of goods have been shipped. Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine products, hides, livestock etc. Certificate of Conditioning - It is issued by the competent office to certify compliance of humidity factor, dry weight, etc. Antiquity Measurement - Issued by Archaeological Survey of India in case of antiques. Transhipment Bill - It is used for goods imported into a customs port/ airport intended for transhipment. Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date.
• • • •
Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc. Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter. Short Shipment Form - It is an application to the customs authorities at port which advises short shipment of goods and required for claiming the return. Shipping Advice - It is prepared in aligned document to be used to inform the overseas customer about the shipment of goods
Export pricing and costing Export pricing is the most important tool for promoting sales and facing international competition. The price has to be realistically worked out taking into consideration all export benefits and expenses. However there is no fixed formula for pricing strategies it will differ
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from exporter to exporter. We should also assess the strength of our competitors and anticipate the move of the competitors in the market. Pricing strategies will depend on various circumstantial situations. We can still be competitive with higher prices but with better delivery package or other advantages. The current wholesale market price of STRAWBERRY in India is ranging from Rs 240 to 300 per kg depends on the grades. Based on the last weeks market price we have to set the current prices of cashew kernel. The detailed of the weekly price of edible nuts in London market are enclosed . EXPORT STANDARDS:EU MARKET STANDARDS:The marketing standards for quality and labeling of fruit and vegetables are laid down in basic regulation EC 2200/96 (of 28 October 1996), in the framework of the Common Agricultural Policy (CAP). Products which do not comply with these standards are barred from the market. Besides EU legislation, importers of frozen fruit and vegetables have their own quality standards. The EU requirements must therefore be seen as indicative for the quality that is demanded by the European importers. The care and handling between harvest and delivery to the country of import is often one of the weakest points in the relationship between producer and importer. The UN standards apply in the case of a product, which is not covered by the EU quality standards. The Standards organizations are able to inform the quality standards that apply to the various products.
A code for fruit and vegetables which is gaining ground in Europe is EurepGap. The EuroRetailer Produce Working Group (EUREP) has developed the Good Agricultural Practice standards. The Working Group has responded to increasing consumer interest in food safety and environmental issues. The framework of EurepGap requires companies to have a good management system in place to deal with quality, hygiene and environmental matters. Although EurepGap standards are yet not common practice in all the EU member states, it is expected that they will be increasingly accepted and applied in the future, particularly by the large supermarket chains. Management Systems
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The need for good quality management takes on increasing importance. Two systems to demonstrate reliability of quality control system are: • HACCP • ISO 9000. Although not directly an obligatory standard for producers of fresh fruit and vegetables yet, exporters must be aware of the fact that in the field of processed fruit and vegetables, HACCP and ISO 9000 are strongly increasing in importance in Europe. TARIFFS AND QUOTAS Access for fruit and vegetables to the European market is regulated through the EU basic regulation EC 2200/96, this regulation covers amongst other things: • A list of products to which quality standards apply; • The entry-price system; • Duties Custom Duties In general, all goods, including frozen fruit and vegetables, entering the EU are subject to import duties. External trade conditions in the European Union are mostly determined by EU regulations. The level of the tariffs depends on: • The country of origin • The product In order to support exports from developing countries, the EU operates the Generalized System of Preferences (GSP). Under the GSP scheme of the EU, imports from a number of developing countries are admitted at a reduced tariff and imports from a group of least developed countries at a zero tariff.
MAJORE MARKETS IN THE WORLD FOR FROZEN STRAWBERRY:A) THE UNITED STATES The United States can be termed as the single largest market for frozen fruits and vegetables in the world. The US market consumed an approximate of 4.5 million tones of frozen fruits and vegetables in 2005. With an annual growth rate of around 3%, it is expected to reach the 6 million tonnes level by 2010. Frozen vegetables
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totally dominate the frozen fruits and vegetables category in US with a share of 93% in 2005. With future even better for frozen vegetables, the share is expected to increase to 94% by 2010, meaning 5.6 million tonnes. Frozen fruitscategory’s share is projected to plunge to 5.9% by 2010.
B) THE UNITED KINGDOM Consumers becoming health conscious United Kingdom is the largest European market for frozen fruits and vegetables with a total volume of around 1 million tonnes in 2005. The market has been clocking a growth rate of around 2.5% for this decade and is expected to contribute over 26% to the total frozen fruits and vegetables market in Europe at the end of this decade. Similar to the US market, frozen vegetables contribute 99% to the category. The frozen fruits market in UK is expected to grow at a CAGR of 2.15%. Consumers in United Kingdom are getting more and more inclined towards healthy food as a part of a lifestyle change. C) FRANCE France represents one of the largest market in the European Frozen fruits and vegetables market. French frozen fruit and vegetable market is estimated to total 962 thousand tons in 2005. The market for these products is projected to grow at a compounded annual rate of 2.56% to reach 1,088 thousand tons by 2010. Frozen vegetables segment is estimated to hold a lion’s share in the total French Frozen fruits and vegetables market in 2005. The market is projected to reach 1,077 thousand tons by 2010. Frozen fruit market is estimated to total 9 thousand tons in 2005. The segment is projected to grow at a CAGR of 4.17% to during the ten-year analysis period. D) GERMANY
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German market for frozen fruits and vegetables was estimated to total 886 thousand tons in 2005, and is 906 thousand tons in 2006. The market is projected to grow at a moderate rate of 2.49% over the analysis period 2001-2010 to reach 999 thousand tons by 2010. Frozen vegetables segment is projected to account for a share of 90.43% of the German frozen fruits and vegetables market in 2005. The market for frozen fruits is projected to grow at a compounded annual rate of about 2.64% to reach 97 thousand tons by 2010. This segment is projected to experience a market share gain over the 20012010 periods, to represent 9.67% of the total market by 2010.
E) BELGIUM The Belgian frozen food market grew by 5.2% in 2003 to reach a value of $785 million. In 2008, the market is forecast to have a value of $979 million, an increase of 24.7% since 2003. Frozen meat, fish and seafood remained the leading segment in the market. In 2003, frozen meat, fish and seafood generated 44.9% of the frozen food sales. In 2003, the Belgian market generated 1.8% of the European frozen food sales. During the next five years, the market is expected to experience strong but gradually decelerating growth rates. By 2008, the market is forecast to reach a value of $979 million, which equates to a CAGR of 4.5% in the period of 2003 – 2008, higher than the European market. Indeed, it is expected that the Belgian market will be the strongest performing frozen food market in Western Europe in the next five years, heavily outpacing the larger markets of France, Germany and the UK.
F) JAPAN The Japanese market for frozen fruits and vegetables was estimated at 1,153 thousand tons in 2005, and is 1,189 thousand tons in 2006. The market is projected to grow at a compounded annual rate of about 3.44%, to reach 1,324 thousand tons by 2010. The Japanese frozen fruits market was estimated to be 247 thousand tons in 2005, and is
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projected to grow at a CAGR of 2.31% to reach 268 thousand tons by 2010. The frozen fruit segment is projected to experience a decline in market share through the ten-year period and account for 20.23% of the total market by 2010.
EXPORT TRENDS OF FROZEN STRAWBERRIES:-
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WHERE TO EXPORT:-
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NAME OF THE IMPORT COUNTRY:- “BELGIUM” NAME OF THE IMORTER:- UNIFROST (BELGIUM) Unifrost (Belgium) Unifrost, incorporated in 1974, is a leading European food company, engaged in production and sales of frozen food products. Unilever is the holding company of Unifrost. Eskimo-Iglo GmbH. Is a principal subsidiary of Unifrost and functions as the marketing arm for the company’s products. The main products of the company include: frozen foods; frozen bakery products; frozen fish and shell fish; frozen pizzas; frozen ready meals; frozen vegetables such
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as beans, carrots, spinach, sprouts, cauliflowers, peas; ice creams, and other frozen foods. Unifrost also produces Sauces, pickles and dressings, and pasta sauces. Icefresh markets Unifrost’s products in the United Kingdom. Unifrost attributes its continued corporate \ success to emphasis on flexibility and innovation in providing a wide range of vegetables tailored to customers’ unique cuisine specifications and taste. Unifrost ranks as a pioneering company of its kind with production processes, facilities, and recipes to meet the localized tastes habits of specific clusters of consumers.
WHY BELGIUM ???? The market for frozen fruits and vegetables in Belgium was close to 1,092 thousand tons in 2005, and is projected to be 1,128 thousand tons by the end of current fiscal year 2006. The market is projected to grow at a compounded annual rate of 3.21% to reach 1,313 thousands tons by 2010. Frozen vegetables, the largest market segment, is projected to wax at a rate of 3.2% over the years 2001-2010 to reach the 1,248 thousand tons by 2010 as against a 1,039 thousand tons in 2005. The market share for the frozen vegetables is projected to reach 95.08% by 2010. Frozen product segment is projected to grow at a CAGR of about 3.52% during 2001- 2010. The market for frozen fruits is projected to reach 65 thousand tons by 2010.
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1. Climatic conditions congenial for 1. Higher cost of finances, packing STRAWBERRY production. material, energy and transportation. 2. Abundant raw material, technical pace, cheap manpower, enormous domestic market coupled with government support. 3. Strategic location 2. Poor quality of raw materials, high value of plant and machinery and heavy duties. 3. Operational restrictions of 100% EOU.
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Decline in production of 1. Fierce competition from China. STRAWBERRY in other countries, 2. Demand shift towards fresh breaking down of international trade STRAWBERRY rather than frozen barriers. strawberry . 2. Well adapted modern 3. GATT/URAA technologies for production and post harvest management. 3. Increasing awareness and liking for STRAWBERRY in domestic market (27,865 tonnes consumption in 1996-97).
Key Importers in Belgium • Unifrost • McCain • Findus
Key Logistics Providers in Belgium • Soonius transport B.V. • Seabrex/Ebrex • Maersk
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BY SEA WAY
SRI STRAWBERRY EXPORTS, MAHABALESHWAR SATARA, M.S. , INDIA
INTERWORLD SHIPPING INDIA LIMITED, MUMBAI.(400075)
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Shipping Specifications The overall dimensions of a carton are about: Length Breadth Height Overall volume 49Omm 24Omm 35Omm 0. 041 Cu. M/Carton.
Strawberry shipments from India are mainly in 2Oft. containers which carry about 650-700 cartons. Requests for less than a container load are also accepted by exporters in India. Freight is charged per Cubic Metre on volume basis. Freight for full container load is fixed and the same is cheaper than the freight for part container load (LCL). Contract terms for export of STRAWBERRY 1 . Contracts are normally made on FOB or C&F basis.
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2. Pricing in international trade in cashew is in US Dollars per lb. Current and forward price quotations in US $ and other currencies are available on request directly from member exporters of the Council. 3. Business in cashew is done on an offer and acceptance basis between buyers and sellers by telephone, telex or cable, since the prices are subject to frequent fluctuations. 4. The cost of insurance is borne by the buyer. 5. At the time of contract, the month of shipment, grade, price etc., are to be clearly indicated. Sometimes, exporters offer commodity for shipments upto six months in advance. 6. Export dealings are usually finalised on the basis of the opening of 100% irrevocable Letter of Credit by the buyer in favour of the shipper. The LC is opened immediately on execution of contract or one month prior to shipment
http://www.wikipedia.com http://www.faostat.org http://www.cbi.nl
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http://www.accessguide.com http://www.datamonitor.com http://exporthelp.europa.eu http://stats.ciaa.be/pages/homepage.asp http://useu.usmission.gov/agri/usda.html http://europa.eu/index.htm http://useu.usmission.gov/agri/fairs.html http://www.mintel.com http://www.ifoam.org http://www.intracen.org http://www.ific.org http://ec.europa.eu/taxation_customs/taxation/vat/consumers/vat_rates/index_.h t http://www.fas.usda.gov/scriptsw/attacherep/default.asp http://www.marketresearch.com http://www.euromonitor.com http://unstats.un.org/unsd/comtrade http://www.igd.com
Journals 1. 2. 3. 4. Times journal of Agriculture Agriculture and Industry Survey Agriculture Today Foreign Trade Review
ANNEXURES List of ANNEXURES: 1. Export of FROZEN STRAWBERRY from India.
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2. Weekly prices of edible BERRIES in London Market. 3. Brief contract form of sales purchase transactions. 4. Format of Bill of exchange. 5. Format of Bill of Lading. 6. Format of GR form. 7. Format of Invoice. 8. Format of certificate of origin. 9. Format of Proforma of Invoice. 10. Format of packing list.
ANNEXURE - IV
BRIEF CONTRACT FORM FOR SALE PURCHASE TRANSACTIONS EXPORTS AND IMPORTS I Name and address of the parties.......(state correct appellation and complete address of the parties) II We, the above named parties have entered into this contract for the sale/purchase, etc. ....... (state briefly the purpose of the contract) on this ........(date) at ........(place)..... subject to the following terms and conditions: a. b. Goods ................ Quantity ...............Quality................. (Describe the quantity, quality and the other specifications of the goods precisely as per the agreement. An agency for inspection/certification of quality and/or quantity may also be stipulated).
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Price................ Mode of payment ...................(Quote the price, terms, i.e. ex-works/FOB(free on board) CIF(Cost, Insurance & Freight) etc. in the currency agreed upon and describe the mode of payment i.e. payment against L/C(letter of credit)/DA (document against acceptance) /D/P(document against payment)etc. It is also desirable to mention the exchange rate.) Shipment...............(Specify date of delivery and the maximum period upto which delivery could be delayed and for which reasons, port of shipment and delivery should be mentioned). Packing and marking...............(Requirements to be specified precisely) Insurance .................(State the type of insurance cover required, i.e. FPA(free from particular average)/WA (with average)/ All Risks, etc. State also the party responsible for insurance) Brokerage/Commission ........(if any payable may be mentioned) Passing of the property and of risk. The property or ownership of the goods and the risk shall finally pass to the buyer at such stage as the parties may agree, i.e. when the goods are delivered at the seller's place of work/pass the ship's rails/are covered by insurance etc. as per agreed terms).
d. e. f. g. h.
Arbitration Arbitration clause recommended by the Indian Council of Arbitration: "All disputes or differences whatsoever arising between the parties out of relating to the construction, meaning and operation or effect of this contract or the breach thereof shall be settled by arbitration in accordance with the rules of the arbitration of the Indian Council of Arbitration and the award made in pursuance thereof shall be binding on the parties."(or any other arbitration clause that may be agreed upon between the parties). 3.Any other special condition, prevalent in or relevant to the particular line of trade or transaction, may also be specified. Sd/-Seller Sd/-Buyer Notes: The above specimen contract form, drawn up in brief essentials, is meant for simple small scale transactions and is intended to draw the attention of the parties to important aspects of the trade deal in drafting the contract. The parties are free to add to or modify the terms as per the peculiar nature of their trade transaction. They may also consult with advantage, experienced commercial or arbitration bodies for the purpose or study published literature on the subject. The use of the arbitration clauses in commercial contracts is becoming increasingly commom, particularly in export-import transactions, with a view to promoting smooth and swift flow of business. The Indian Council of Arbitration (ICA) which is partly founded by the Government of India, provides comprehensive institutional arbitration service to all government departments and public undertakings as well as private traders, exporters and importers in India for amicable and quick settlement of all types of commercial disputes. It has been suggested by the Ministry of Commerce that all commercial organisations should make use of the arbitration clause of the Council in their commercial contracts with Indian and foreign parties.
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