This action might not be possible to undo. Are you sure you want to continue?
Ascot Centre, Mumbai
A Study of options available for the recovery of cost incurred in Special Clearance processes done by DHL
As a part of Summer Training Project for MBA Degree course
By Abhishek Pandey Avinash Singh Aditya Faculty of Management Studies Banaras Hindu University, Varanasi
TABLE OF CONTENTS
• • • • • •
ACKNOWLEDGEMENT PREFACE INTRODUCTION NEED FOR STUDY OBJECTIVE CLEARANCE PROCESS 08 04 05 07
• RESEARCH METHODOLOGY
• • • • • •
DATA COLLECTION DATA ANALYSIS
28 33 41
RECOMMENDATIONS AND SUGGESTIONS LIMITATIONS ANNEXURE BIBLIOGRAPHY 42 43 47
With deep satisfaction and immense pleasure we present. This report on “ To Look for an option of recovery of cost for special clearance done by DHL in the process of Import and do a market study of competitors providing such services”. This study of cost recovery could not have been successful without the support and motivation provided by the employees at Ascot Centre Office of DHL Express (I) Ltd, Mumbai. It is our proud privilege to have got an opportunity to work with an esteemed organization like DHL Express. The encouraging work environment and culture has enabled our learning. They were always ready to provide constant support and give their intellectual inputs to guide us through this enriching endeavor. We would like to thank them for the keen interest they have taken in clarifying all the concepts and the underlying fundamentals. At the onset we would like to express our deep heartfelt gratitude to Ms. Aditi Sinha, National Gateway Manager for giving us an opportunity to work on this project in DHL Express. We would like to thank Mr. Vasudevan Rajagopalan, BOM
Gateway Manager for granting us permission to work at his office at Ascot centre and provide us with suggestions and help when required.
We devote our special and sincere thanks to Mr. Ashutosh Bajpai – Director South Asia for providing us his guidance and valuable advice. We would like to thank our guide Mr. Nikhil Umarane, Manager NCG (BOM GTW) without whose constant support and feedback this project would have been a mere idea with out a form or content. We would like to express our heartfelt gratitude to the DHL staff at Ascot Centre who helped us to comprehend the various processes involved in Logistics and Express Industry. Our special thanks to Ms. Vaishali Kamble, Resourcing Manager HR for her care and providing us an opportunity to work with DHL. Finally, I would like to thank my Institute FMS BHU for making this experience of summer training in an esteemed organization like DHL Express (I) Ltd, Mumbai possible. The learning from this experience has been immense and would be cherished throughout life. Last but not least we would like to thank all those who were involved directly or indirectly in the completion of the project. Thank You. Abhishek Pandey Avinash Singh Aditya (Summer Trainees) Faculty of Management Studies Banaras Hindu University Varanasi (U.P.)
This report is written in an easy and comprehend-able language using systematic methodology. We have ensured our best to cover all the aspects related to this topic and make the report purposeful.PREFACE It gives us immense pleasure to present the report on our project entitled “To look for an option of recovery of cost for special clearance done by DHL in the process of Import and do a market study of competitors providing such services” for DHL Express (I) Ltd. This report is submitted as a part of course curriculum of MBA degree at Faculty of Management Studies. which we hope will prove to be useful in time to come. Abhishek Pandey Avinash Singh Aditya 5 . Banaras Hindu University. For the purpose we did a thorough study of the process and have provided suggestions. This report addresses the various issues and processes which are involved in the custom clearance of shipments imported and includes a market study of the Express Industry which includes the competitors who are providing such services.
time. etc more than what is involved in normal clearance process. This is why the company had a need to find out the cost incurred on these processes and the option of the recovery of the cost from the customers. papers. The cost incurred by the company till now is not being charged to the customer. The Indian Customs provide for some concession in duty to the goods which are imported for the use in production of goods which will be exported. The company might be loosing revenue by not charging the cost incurred to the customer and an opportunity to earn more profits. The company incurs extra cost in the special clearance process as the paper work required is more. The special clearance process involves use of processes and paper work separate than the normal clearance process in which the goods are cleared after paying the customs duty. which involves some additional processes. The SEZ companies also get some type of exemption on the goods imported by them and the goods also require a special type of clearance.INTRODUCTION The Special Clearance process is a part of Custom Clearance Process in Imports in which the shipment involves some special type of clearance. or the imported goods which will be used for educational process. The goods which need a NOC (No Objection Certificate) from the various departments concerned with the specific goods. The special clearance is done for the shipments which involves some kind of exemption from the customs duty. 6 . so the need of this study was felt by the company. In order to decide how much to charge from the customers we also need to study the market as how much is the other companies in the market are charging for the same kind of services the provide to the customers. The processes involved are more and the dedication of man power and time in the process is more than the normal clearance process.
• Decision to be taken on in which way and how much charge is to be levied on the customers. • Look for the methods in which the costs can be charged from the customers.The study was mainly conducted in the following steps: • Map the process involved in all the type of special clearance done by the company. • Collect the data regarding the prices or the charges of the competitors or others companies providing same kind of services. • Find out the time involved in the process and the person responsible for each process. 7 . • Determine the cost incurred for the process above the normal clearance process. • Arrange the data systematically in excel sheet for facilitating analysis. • Analyze the collected and arranged data with the help of graphs and charts to find out variations and the differences.
The company might be loosing its customers to the competitors who are providing these services at different prices. Competitors are providing these clearances at different prices. The company is loosing out the revenue which it could have earned and in turn is loosing out on the profit which it could have earned. • 8 .NEED FOR STUDY The problem arises when: • • • The cost incurred by the company for special clearance process is not charged to the customers.
SCOPE In Scope: • • • • • EOU ADC/ NOC SEEPZ Advance License Schemes (DEPB. PERIPHERAL OBJECTIVES • • • The cost incurred by the company for special clearance process is not charged to the customers. NFEI) Out of Scope: 9 .OBJECTIVE Look for an option of recovery of cost for special clearance done by DHL in the process of Import and do market study of competitors providing such services. Look for options from where these costs can be recovered. Competitors are providing these clearances at different prices. • Determine the ways and the charges which are to be levied on the customer. EPGC. Drawback.
• • • Form IV Form V Formal Clearance 10 .
5. The customs duty which is to be levied on the shipment is calculated. 4. 2. BoE of Cargo is made on the computer using software called Visual Impex and filing of BoE is done online.CLEARANCE PROCESS IMPORTS DHL Express does the following Custom Clearance under the Import process. 3. 7. This system is known as EDI (Electronic Data Interchange). (B) COURIER TYPES • • FORM IV FORM V FORMAL 11 • . This process is to be completed four hours before the flight timings. The BoE along with other documents is sent on ICEGATE (Indian Customs EDI Gateway). 5. 3. The filing of documents done. Documents received by the SKYLINE Team from CSA. (A) CARGO OR FREIGHT COURIER CARGO DOCUMENTS REQUIRED FOR CARGO CLEARANCE 1. A. B. 6. IGM (Import General Manifest) MWAB (Master Airway Bill ) HAWB (by DHL) Delivery Order Invoice and Packing list Other Documents Related with the shipment. 4. The documents are thoroughly checked whether all the required documents are available or not. 6. 2. PROCESS FOR CARGO CLEARANCE 1.
5. Send the document for deciding the custom duty applicable on the shipment. is filled. 7. 2. The documents are received by the SKYLINE Team from CSA. Document sent to customs for further processing.for AO (Appraisal Officer) customs. a.for PO (Preventive Officer) customs. 2. • Duplicate copy of BoE. GATT and Importer’s declaration and upload the data into Visual Impex. d. Attach all the documents to BoE.1. AWB Invoice Copy and Packing list Detention Memo IEC Codec (Import Export Certificate). Importers copy and DDR is sent to Billing Department which does the billing and send the documents to the consignee 11. PROCESS OF FORMAL CLEARANCE OF COURIER 1. Rests of the documents are sent to Operations Department for clearance of the shipment. DOCUMENTS REQUIRED FOR FORM IV AND FORM V COURIER CLEARANCE AWB Invoice Copy and Packing list DOCUMENTS REQUIRED FOR COURIER WHICH REQUIRE FORMAL CLEARANCE b. • 5th copy for custodian. Authority signatory checks all the documents and signs. c. 10. • 6th copy for DHL records. Documents are stamped and DDR no. Documents are received after process of customs. whether all the documents required is present. Documents are checked by the Supervisor. • 3rd and 4th copy of BoE for importer. Send the document with the decided duty to print the BoE. 4. 12 . Manual BoE is made and 6 copies of BoE are printed. 3. 8. • Original copy of BoE. 6. 9.
Appraisal officer checks the paper and signs the documents. IEC Codec. 5. SPECIAL CLEARANCE UNDER COURIER (FORMAL) 1. 6. EOU (Export Oriented Units) UNDER EOU 1. IIT. Green Card copy. 3.PROCESS AT CUSTOMS 1. 6. 2. Defence.e. clerk signs on all the copies of BoE and serial number is obtained. Examiner will examine the package physically and sign the documents. DEC is generally for Govt. 4. Examination of paper work is done and signed by the custom officer. IIM etc or the shipments which material is used for producing goods for defence or educational purpose. *If Customs Exemption. Procurement Certificate by Central Excise of EOU division. File number of the importer registered in Central Excise. then DEC (Duty Exemption Certificate) is also required. AWB Copy. 8. 2. 13 . 7. 5. Auditor checks the documents and signs it. Notification of the documents is done in the register of customs. Form 17-B bond. 3. or related to Educational Institutes i. Detention Memo. 3. Deputy Commissioner signs the documents at last and the documents are finally ready to be sent to SKYLINE Team. 4. 2. Invoice copy and Packing list. Railways etc. shipments i. STPI (Software Technical Park) EHTP (Electronic Hardware Technical Park) BTP (Bio-Technical Part) DOCUMENTS REQUIRED FOR EOU CLEARANCE 1.e.
Authority signatory checks all the documents and signs. Printing of BoE which is yellow in colour. is accompanied by Customs Officer and handed over to Central Excise. is given to DHL with the intimation letter.PROCESS FOR EOU CLEARANCE 1. known as Yellow BoE. of importer registered in Central Excise of EOU division. Green Card no. 16. 2. 12. 13. When the shipment arrives. All the documents with PC are received by the SKYLINE Team. is to be mentioned on the BoE. Appraisal officer checks the paper and signs the documents. • Package if to be delivered in Bombay. • Shipment given to DHL on the guarantee that if it is stolen or lost. Document sent to customs for further processing. Examiner will examine the package physically and sign the documents. 4. the duty is paid. Appraisal officer gives the Note sheet to DC. 11. PC (Procurement Certificate) is issued by Central Excise in the name of DC. It is provided to DHL by the customer. File no. Documents are checked by the Supervisor. 14 . whether all the documents required is present. 9. Notification of the documents is done in the register of customs. 8. 3. • Package if to be delivered outside Bombay. clerk signs on all the copies of BoE and serial number is obtained. 5. 14. Intimation letter issued by Customs to Central Excise of EOU division. customs. 10. Examination of paper work is done and signed by the custom officer. 7. Send the document for deciding the custom duty applicable on the shipment. Customs. Attach all the documents to BoE. • Duplicate BoE is signed by AO and DHL staff stating that shipment is given to DHL and shipment is received by DHL respectively. 3. and Form 17-B Bond no. 6. Shipment is delivered to consignee after taking it from CE of EOU division.
get them noted in register of customs clerk . If the contents are correct Get all the documents corrected and demand required documents from customer No Print six copies of BoE and attach all Documents to BoE Yes Examiner signs the documents and send the to auditor for signature Supervisor checks if all the documents required are present No Auditor signs the documents and send them for signature of DC Yes Supervisor signs on document and send it to customs for further processing Documents required 1) B-17 Bond 2) Detention Memo 3) AWB Copy 4) Green Card 5) IEC code 6) Invoice copy and packing list 7) Procurement certificate by Central Excise 8) File no of the file in which importer is registered in Central Excise. signs and gives registration no. are documents correct No Are the required documents present and correct No Send documents back to customer and ask for fully completed documents Yes Decide the customs duty applicable on the shipment Customs officer signs the documents and send them to examiner Detain the package for later clearance Print BoE. GATT and upload the data into Visual Impex Examiner physically examines the package. DC signs the documents and documents are send back to Ascot center 15 . Send documents back to ascot centre for correction Customs examine documents.CLEARANCE PROCESS FOR EOU IMPORTS PROCESS AT ASCOT CENTRE PROCESS AT CUSTOMS Get the documents from CSA Receive the documents from ascot centre .
Appraisal Officer gives note sheet to DC DC signs the note sheet Intimation letter issued by Custom to Central Excise of EOU division Is EOU in same city Yes No Package given to DHL for taking it to EOU with the intimation letter to Central Excise of EOU division Package is accompanied by Custom Officer till EOU Package is delivered to consignee by DHL 16 .OTHER PROCESS RELATED TO EOU CLEARANCE These processes are done after other processes at Ascot centre and Customs are done.
AWB Invoice and Packing list. 6. 10. BoE is sent to SEEPZ at MIDC. 2. Usually shipment is accompanied by Escorting PO till the SEEPZ. Four copies of BoE made and duty calculated on the shipment is mentioned. 11. PROCESS FOR SEEPZ CLEARANCE 1. 17 .2. SEEPZ SEZ (Santa Cruz Electronics Export Processing Zone) (Special Economic Zone) DOCUMENTS REQUIRED FOR SEEPZ CLEARANCE 1. 3. 15. is put on BoE by the SEEPZ Customs. IDF (Import Duty Free) no. Documents are then sent to Airport for further processing. Shipment is Passed-In by SEEPZ PO. Shipment is delivered to consignee and sign taken on Dform for DHL records. 13. 16. 14. • Original and Duplicate copy for SEEPZ Customs (delivered within 15 days with a list of Thoka no. 9. 2. Gate pass is received at Airport by Escorting PO. PO gives permission for escorting the shipment to SEEPZ. 5. Filing of R-form is done. Documents are checked by the supervisor whether all the required documents are present. Documents are received from CSA. 7. 4. 3. Manual BoE made on the same day when shipment arrives. 8. Thoka no. is put on BoE. Any other documents related to shipment. • Triplicate and Quadruplicate for consignee (delivered after billing department does billing and attaches bill to it). Examination of shipment is done. AO passes BoE and DC Customs SEEPZ signs on it. Noting of BoE is done by Customs and no is put on BoE. 12. and consignee name.
put on the documents and they are sent to Airport Filing of R-Form is done for exemption of OCTROI duty Documents received along with the shipment. is put on documents Yes Decide the customs duty applicable on the shipment Documents are passed by AO and DC Customs at SEEPZ signs the documents Print four copies of BoE IDF no. is put on the documents Are the required documents present and correct No Noting done by customs at SEEPZ and no. from Airport Gate pass issued by PO to DHL and permission given on BoE to escort the shipment till SEEPZ . Shipment usually escorted by PO till SEEPZ BoE sent to MIDC at SEEPZ Shipment passed in by the SEEPZ PO and examined by Examination Officer Documents required 1) AWB Copy 2) Invoice copy and packing list 3) Any other documents related with the shipment 4) BOE Given to DHL for delivery to the consignee 18 . Thoka No.PROCESS FOR CLEARANCE OF SEEPZ IMPORTS PROCESS AT ASCOT CENTER PROCESS AT SEEPZ Get the documents from CSA Send documents back to customer and ask for fully completed documents Receive the documents from Ascot Centre.
In Part I will be recorded all the imports allowed to be made and the actual imports made (CIF Value).3. Advance License carries with it the concepts of export obligation and value addition. • Intermediate suppliers to a manufacturer for the import of inputs required in the manufacture of goods. their quantities and value required to be exported (FOB values). Two copies of Advance license are issued. and in Part II the products.to a manufacturer exporter or to a merchant exporter or to a supporting manufacturer. Advanced License is submitted in customs with bond B-17 and Bank Guarantee (BG) or bond with License Undertaking (LUT) for registration.Basic Points Advance License is issued in two parts . Also. Advance License . Advance License is issued for • Physical exports . Advance License An Advance License is issued to allow duty free imports which are physically incorporated in the export product (making normal allowance for wastage). catalysts etc. energy. At the time of making BoE for imported goods. Customs copy goes to customs signed and verified. oil. license number is indicated on it. to be supplied to the ultimate exporter. mandatory spares (up to 10% of CIF value of the license which are to be supplied with the resultant product) are also allowed under the Scheme. which are consumed in the course of their use to produce the export product. Export obligation indicates the FOB value of exports that have to be made by the holder of the Advance License in lieu of the of the duty-free import facility he gets. This process is called bulleting. customs copy and excise copy. Other products like fuel. 19 . constituting the export obligation and the actual exports made (as seen in the shipping bills). may also be allowed under this scheme.
2. 20 . 10. Register Bond & BG at ACC and obtain relevant file number from BBG Cell. 7. 9. BoE is debited by DC against the Bond no. 4. Hard copy of License & BoE is debited by AO. PROCESS FOR ADVANCE LICENCE CLEARANCE 1. 3. Bond & BG is accepted by the AO & DC. Bond & Bank Guarantee (BG) is provided by the importer as per the schemes. Bond & BG is debited in the system by AO & DC during Assessment of goods. Delivery of the shipment to customer after the landing of shipment. Check whether the License is complete in all respects. 8. Preparing & filing of BoE according to the scheme to be claimed. License is available. 11.Duty levied on the imported goods is debited from the bond filled by the importer. 5. 6. in the system. Clear the consignment by paying the duty as applicable. Compare the eligibility of goods imported with respect to License available.
the system Hard copy of License & BoE is debited by AO Follow the Importers for completion of Export obligation & documentation required for cancellation of Bond/ BG Clearance Agent Clear the consignm ent by paying the duty as applicable 21 .Licenses DHL Facility License is available . Check whether the License is com plete in all respects Air Cargo Complex Com pare the eligibility of goods im ported wrt License available Bond& Bank Guarantee (BG) is provided by the im porter as per the schem es Bond & BG is accepted by the AO & DC Proceed for preparing& filing of BoEaccording to the scheme to be claimed. Bond should be notorised and signed by 2 witnesses along with their Name & Address BBG Cell: Bond Bank Guarantee Cell BoE is debited by DC against the Bond no in . Register Bond & BG at ACC and obtain relevant file number from BBG Cell Bond & BG is debited in the system by AO & DC during Assessment of goods Note: Bond: Declaration given byimporter on Rs.200 Stamp paper binding himself to comply with all the conditions of notification claimed .
PHO (Public Health Organization NOC) Eating products. Form 10 is for storing imported drugs. sharp objects like knives etc. status of vaccination etc. The items related to plants like seeds. snacks etc. o Checks medicine details i.e. Drug Controller) o Checks done for drugs. It includes certificate from country of origin. disease it is used to cure. However if the textile imported is for making dresses which are fully for export. they are not returned to origin but destroyed. NOC from Archaeological Survey of India This NOC is required for antique pieces. quantity. NOC for Machine parts This NOC is required for machine parts ensuring quality and safety. These items should be accompanied by Certificate of origin. scientific name etc. drinks. weapons. leaves and other herbs are checked and if found free from risk of disease or infection. require a NOC issued by the Police. Different types of NOC (No Objection Certificate) • WLRO (Wild Life NOC). NOC is issued else the items are quarantined. PNQ (Plant Quarantine NOC) Phyto-sanitary form is required along with certificate of origin. AQ (Animal Quarantine NOC) This NOC is issued after checking the health of the animal being imported. Police NOC Some items like dead bodies. leather etc. no NOC is required. ivory. cosmetics o Checks for these items restricted in India o Personal Import of medicine can be done on Form-12B issued in Mumbai. • • • • • • • 22 . This NOC is issued for animal goods like skins. Air worthiness certificate is also required. statues etc. For Aircraft parts. flowers. If any discrepancy is found with these goods. require PHO certificate. TC (Textile Committee Certificate) This certificate is issued after ensuring that the textile being imported is free from restricted chemicals. medicines. It requires certificates of place of origin.ADC (Asst. type.
2. Receive documents from CSA. Importer gives a test bond (Letter of Guarantee) and clears the shipments. On receipt of the test report ADC will give the NOC & cancel the test bond. and sample to be tested. Put up the BoE along with the Invoice to ADC. 7. Deliver the shipment to customer.PROCESS FOR ADC/NOC CLEARANCE 1. 4. On receipt of ADC NOC pay the required duty and clear the shipment. 10. Is the ADC satisfied with the above documents & sample? 8. Is the ADC satisfied with the details of the product? 5. 6. ADC asks for literature. 11. 9. chemical contents. 23 . Get the full markings present on the product. Prepare BoE and report at Customs with the Filed BoE 3.
re t n e ro u su a ch s 1 C e i ca n m ) hm l a e 2 Cn n ) o te ts 3 B tch/S ri a n ) a e l o 4 Mn factu r’ s n m ) au re ae 5 M & E d te ) fg xp a s Yes Is the ADC satisfied with the markings on the product? No ADC asks for 1) Literature 2) Chemical contents 3) Sample to be tested Is the ADC satisfied with the above documents & sample? Yes Yes No Im porter gi ves a test bond (Letter of Guarantee) and cl ear the shi pm ents Note: Importer cannot use the goods unless ADC NOC is obtained ADC endorses its NOC & clears the shipment On receipt of the test report ADC will give the NOC & cancel the test bond Cl earance A gent CSA 24 .Drugs & Pharmaceuticals Air Cargo Complex R p rt a C sto s eo t u m wth th F l e B E i e i d o Put up the BoE along with the Invoice to ADC Is the ADC satisfied with the details of the product? No G t th fu l mrki n s e e l a g p sen o th p d ct .
which are physically incorporated in the export product (after making normal allowance for wastage). oil. Intermediate supplies and Deemed exports.. however. Advance Licences are issued under Duty Exemption Scheme to allow import of inputs. etc. which is consumed in the course of their use to obtain the export product.4. Since Advance Licence Scheme involves technicalities. its operation has been restricted to limited ports. (Reference: Customs notification No. airports.4. ICDs. fuel. Value and quantity of each item permitted duty free import are specified in the Advance Licence Advance Licences are issued for Physical exports. All Advance Licences and/or materials. In order to ensure proper monitoring and utilisation of inputs imported against Advance Licences (except Advance Licence for deemed exports). etc. imported there under are not transferable even after completion of export obligation. In addition. and 51/2000-Customs. energy catalysts. which are notified for the purpose. Commissioners of Customs have.20) 25 . dated 29.48/99-Customs. been empowered to permit export/import under the Scheme from any other place which has not been notified.SCHEMES: DEEC (Duty Exemption Entitlement Certificate) Scheme: Duty Exemption Scheme is an export promotion scheme and it enables import of inputs required for export production free of Customs duty. both dated 27. a Duty Entitlement Exemption Certificate (DEEC) Book is issued along with the Advance Licence by DGFT authorities.. can also be allowed under the scheme. on case to case basis by making suitable arrangements at such other places. Advance Licences are also issued on the basis of annual requirement for exports/supplies.99 and 50/2000-Cus.
97) 26 . (Reference: Customs notification No. however.4. etc.34/97-cus. without the necessity of any co-relation between the export product and the import goods. Since DEPB Scheme also involves technicalities. Import against DEPB scrips is allowed at the port specified in the DEPB which is the port from where exports have been made. on case to case basis.. It is an export promotion scheme and grants DEPB Credit Entitlement to an exporter at the time of export at a fixed rate notified by DGFT. in such cases brand rate of duty drawback is admissible . The DGFT have so far notified DEPB rates for nearly 2000 export products.1997 under EXIM Policy 1997-2002. its operation has also been restricted to limited ports.e. been empowered to permit import/export under the scheme from any other place which has not been notified. ICDs.DEPB (Duty Entitlement Pass Book) Scheme: DEPB Scheme was first announced on 1. The normal validity period of a DEPB Scrip is 12 months and DGFT authority (who issues the scrip) is empowered to grant revalidation. The DEPB and/or the items imported against it are freely transferable. or where indigenous duty paid inputs are used in the manufacture of export product. dated 7. Commissioners of Customs have. in cases where CVD is paid in cash on imported inputs. it is not necessary to import only the relevant inputs corresponding to the export product. However. airports.4. These scrips are for a certain amount of DEPB credit and can be utilised for adjusting Customs Duties (Basic or CVD) against import of any products into India. No duty drawback is allowed on exports made under DEPB Scheme. which are notified for the purpose. i.
DFRC.28/97-cus. Advance Licence. Exporter of goods manufactured with the help of Capital Goods imported under the EPCG Scheme is entitled to input duty incidence neutralisation benefits like Drawback. Capital goods imported under EPCG Scheme are subject to actual user condition and the same cannot be transferred / sold till the fulfillment of export obligation specified in the licence. 27 .2000 (5% duty)) NFEI (No Foreign Exchange Involved) This advance licence is taken by the companies who have their branches in the foreign countries. The company is importing from its own branch and does not have to make any payments. In order to ensure proper accountable of fulfillment of export obligation.EPCG (Export Promotion Capital Goods) Scheme: Under EPCG Scheme import of capital goods which are required for the manufacture of resultant export product specified in the EPCG Licence is permitted at concessional rate of Customs duty.4. etc. In theses cases the company obtain a licence from Commissioner of Customs for exemption of duty.4. The normal validity period of EPCG licence is 24 months and DGFT authority (who issues the licence) is empowered to grant further revalidation. (Reference: Customs notification Nos. This Scheme also enables upgradation of technology of the indigenous industry. in accordance with the terms of the individual scheme(s).dated 1.. when they import goods from their branch outside India there is no foreign exchange involved in the process. the EPCG licence holder is required to indicate the EPCG licence No/date on the body of the Shipping Bill.97 (10% duty) and 49/2000-cus. dated 27.
4. 8. 10. Clear the consignment by paying the duty as applicable. 7. Compare the eligibility of goods imported with respect to License available. Check whether the License is complete in all respects. Bond & BG is accepted by the AO & DC. 1. in the system. Bond & Bank Guarantee (BG) is provided by the importer as per the schemes. License is available for the clearance under the required scheme. Hard copy of License & BoE is debited by AO. 3. 6. BoE is debited by DC against the Bond no. 2. Preparing & filing of BoE according to the scheme to be claimed. 11.Process followed for Schemes Clearance. Register Bond & BG at ACC and obtain relevant file number from BBG Cell. 9. 28 . Bond & BG is debited in the system by AO & DC during Assessment of goods. Delivery of the shipment to customer after the landing of shipment. 5.
the system Hard copy of License & BoE is debited by AO Follow the Importers for completion of Export obligation & documentation required for cancellation of Bond/ BG Clearance Agent Clear the consignm ent by paying the duty as applicable 29 .SCHEMES CLEARANCE PROCESS DHL Facility License is available . Bond should be notorised and signed by 2 witnesses along with their Name & Address BBG Cell: Bond Bank Guarantee Cell BoE is debited by DC against the Bond no in . Register Bond & BG at ACC and obtain relevant file number from BBG Cell Bond & BG is debited in the system by AO & DC during Assessment of goods Note: Bond: Declaration given byimporter on Rs. Check whether the License is com plete in all respects Air Cargo Complex Com pare the eligibility of goods im ported wrt License available Bond& Bank Guarantee (BG) is provided by the im porter as per the schem es Bond & BG is accepted by the AO & DC Proceed for preparing& filing of BoEaccording to the scheme to be claimed.200 Stamp paper binding himself to comply with all the conditions of notification claimed .
This additional cost is needed to be charged from the customer in the terms of brokerage charge. etc. o The cost incurred is the additional brokerage charge incurred during the special clearance process. the other custom charges. Textile Committee. This additional cost for different types of special clearance and the prices charged by DHL Express are as following: • • • Comparison between Cost Incurred and Price charged to customer EOU SEEPZ ADC / NOC Advance License Schemes Charged Nil Nil 1000 Nil Nil Cost Incurred 410 410 410 / 700 410 410 o The charges mentioned above are in rupees. the customs duty. o The two costs mentioned in case of ADC/NOC are the cost incurred in case of ADC and NOC for Plant Quarantine. etc respectively. COST DETERMINATION • The cost incurred by the company in the Special Clearance process which is to be taken in to account is the additional cost above the cost incurred in the normal clearance process. The cost incurred in the normal clearance process is accounted for and is charged to the customer. o The price charged in case of ADC/NOC is only in the case of WMX shipments. 30 . o The Price Charged from customer does not include the freight charges.DATA COLLECTION 1.
April 2008 Cost Incurred (In Rs.) 410 410 No of shipments Cleared 149 200 Total Cost (In Rs.) 72570 84870 157440 • Total cost incurred by company on EOU and SEEPZ clearance in two months was Rs. 300530. 31 .) 61090 82000 143090 EOU SEEPZ TOTAL May 2008 EOU SEEPZ TOTAL Cost Incurred (In Rs.) 410 410 No of shipments Cleared 177 207 Total Cost (In Rs.
The time taken by each company and price charged by them for different types of Special Clearance processes are shown in the table. 32 .Market Study The Competitors are providing different types of Special Clearance at different prices. The data was collected with the help of an open ended and multiple choice type questionnaires. They are also taking different amount of time for same type of clearance. In order to find out the prices prevailing in the market data from different companies was collected with help of survey.
and is in No. Ltd. DHL Express 1 2 2 1 1 1 1 SEEPZ NA 1 2 2 2 2 1 ADC NOC 1 1 1 1 1 1 1 Advance License 2 1 2 3 2 3 2 Schemes 2 1 2 3 2 3 2 • Time mentioned is approximate.Time taken by DHL and other companies for the various clearance processes: EOU TNT UPS AFL Cargo Partner Schenker India Pvt. of days for each kind of clearance. Ltd. 33 . Welgrow India Pvt.
Ltd. DHL charge of Rs. 34 . Ltd. 1000 for ADC /NOC in only in case of WMX shipment.Charges of DHL and other companies for various Special Clearance process EOU TNT UPS AFL Cargo Partner Schenker India Pvt. Welgrow India Pvt. DHL Express 3000 1600 2500 2000 1800 2000 Nil SEEPZ NA 1600 2500 2000 1800 2000 Nil ADC NOC 3000 1600 2500 2000 1800 2000 1000 Advance License 3000 2000 2500 2000 1800 2000 Nil Schemes 3000 2000 2500 2000 1800 2000 Nil • • Charges mentioned are approximate and are in INR.
of Days. 35 .DATA ANALYSIS 1. GRAPH OF TIME TAKEN BY VARIOUS COMPANIES • Time taken is in No.
36 . 1. EOU • The charges mentioned are in INR.• Comparison of charges by different companies for various special clearance processes.
SEEPZ SEE PZ 2500 2000 1500 1000 500 0 TNT A FL Sc henker DHL India Pvt.2. Ex press Ltd. SEEPZ • The charges mentioned are in INR. 37 .
38 . ADC / NOC ADC NOC 3000 2500 2000 1500 1000 500 0 TNT AFL Schenker DHL India Pvt. Express Ltd. ADC NOC • • The charges mentioned are in INR. The charge by DHL is only in the case of WMX shipment otherwise it is not charging anything.3.
Advance License • The charges mentioned are in INR.4. 39 .
Schemes • The charges mentioned are in INR. 40 .5.
The cost incurred by DHL in EOU clearance is not charged to the customer. 2. 3000 but DHL is not charging anything. 8. which was not charged to the customer. 41 . 4. In case of ADC/NOC company charges Rs. except AFL and UPS who take a day extra than others. The time taken by various companies for all the Special clearances varies from one day to three days. The total cost incurred by company in two months of April and May in EOU and SEEPZ clearance was around Rs 300530. 7. 9.Findings Cost incurred 1. In the case of EOU shipment all the companies are charging price from the customer in the range of Rs. The company is also not charging the customer for Advance License and Schemes Clearance under Cargo. 12. In the case of SEEPZ all the other companies are charging price from Rs 1500 to Rs 2500 but here also DHL is not charging from the customer. In SEEPZ Clearance Company is not charging any thing from the customers. 10. Time Involved 6. Prices charged 11. 5. For EOU all the companies do in almost same number of days. 1500 to Rs. SEEPZ clearance is done fastest by DHL and UPS while others take an extra day and TNT does not do SEEPZ clearance. DHL and all the other companies take two days to do the Advance License and Schemes clearance except Cargo Partner and Welgrow India who take three days. 1000 only in the case of Cargo WMX shipments other shipments are not charged. 3. ADC / NOC clearance is done by all the companies in same time.
16.13. The prices charged by all the company are different and there is no fixed charge in the market. 15. 42 . In the terms of ADC DHL charges only in the case if the shipment is WMX else no charges are levied all the other companies are charging in the above mentioned range. The charges depend mostly on market forces. 14. In the case of Advance License and Schemes Clearance all the other companies are charging price from the customer except DHL.
2. 6. 8. to other companies or in same time as others. 3. The company may be losing upon revenues and profits by Company should charge a price which includes a cost plus DHL is providing all the clearance in lesser time compared not charging to customers. 43 . sufficient margin for its services. So DHL should also charge for the same. 5. the billing software so as just after indicating the type of shipment the price is automatically added in the bill. so it should charge for faster services. so it should be charged to customer.SUGGESTIONS AND RECOMMENDATIONS 1. should be less than that if other companies for the same process. the prices will remain the lowest in the market. The company will not lose business as even after charging The prices to be charged must be uploaded in the ACA and customers. 7. 4. All the competitors or companies are charging price to The price should include cost and sufficient margin but The price can be charged under brokerage charges. the cost.
Some companies either refused to reply while others provided information which was not very reliable.LIMITATIONS 1. The authenticity of data provided by the companies cannot be verified. 4. Usually the companies contacted were not comfortable in disclosing the data without knowing the exact motive. The time and charges mentioned for the clearance process are approximate. 5. The study is based on the data collected with the help of questionnaire and the response of companies. 3. 44 . 2.
DEPB. NFEI) DEEC: Duty Exemption Entitlement Certificate DEPB: Duty Exemption Passbook EPGC: Export Promotion Goods Certificate NFEI: No foreign Exchange Involved (f) Any other (Please mention) ____________________________________________________________________ _ 45 .ANNEXURE Questionnaire The objective of this questionnaire is to study and analyze the Special Clearance process of major Express / Cargo companies. What are the types of special clearance done by your organization under imports? (Tick which ever applicable) (a) EOU (Export Oriented Unit) (b) SEEPZ (Santacruz Electronics Export Processing Zone) (c) ADC NOC (No objection Certificate) (d) Advance licence (e) Schemes (DEEC. Any information provided here in will be used purely for academic / research purpose and will be kept confidential. Que1. EPGC. What are the services provided to customers by your organization? (a) Courier (b) Cargo (c) Post (d) Others Que2.
(g) Green Card copy. (f) Form 17-B bond. (i) Any other (Please mention) __________________________________________________________________ ___ Que4. (b) AWB (Airway bill) Copy. How much do you charge (in INR) for EOU clearance other than freight. (e) Procurement Certificate by Central Excise of EOU division. (c) Invoice copy and Packing list. (c) Any other (Please mention) __________________________________________________________________ ___ 46 . (h) File number of the importer registered in Central Excise. What documents are required for EOU clearance? (Tick which ever applicable) (a) Detention Memo.EOU Clearance Que3. How much is the time taken for shipment to get cleared under EOU clearance? (a) Less than 1 day (b) 1 day (c) 2 days (d) More than 2 days Que5. duty and customs charges? ________________________________________________________________________ SEEPZ Que6. What documents are required for SEEPZ clearance? (Tick which ever applicable) (a) AWB (b) Invoice and Packing list. (d) IEC (Indian Exporters Certificate) Code.
duty and customs charges? ________________________________________________________________________ Advance Licence Que9. How much is the time taken for shipment to get cleared under SEEPZ clearance? (a) Less than 1 (b) 1 day (c) 2 days (d) More than 2 day days Que8. What documents are required for ADC NOC clearance? (Tick which ever applicable) (a) AWB (Airway Bill) (b) Invoice and Packing list (c) ADC / NOC Copy (d) Any other (Please mention) ____________________________________________________________________ _ Que13. What documents are required for Advance Licence clearance? (Tick which ever applicable) (a) AWB (Airway Bill) (b) Invoice and Packing list (c) Advance Licence Copy (d) Any other (Please mention) ____________________________________________________________________ __ Que10. How much do you charge (in INR) for SEEPZ clearance other than freight. How much is the time taken for shipment to get cleared under Advance licence clearance? (a) Less than 1 day (b) 1 day (c) 2 days (d) More than 2 days Que11. How much do you charge (in INR) for Advance licence clearance other than freight. How much is the time taken for shipment to get cleared under ADC NOC clearance? 47 .Que7. duty and customs charges? ________________________________________________________________________ ADC / NOC (Assistant Drug Controller / No objection certificate) Que12.
NFEI) Que15. How much do you charge (in INR) for Schemes clearance other than freight. DEPB. EPGC. and NFEI licences (d) Any other (Please mention) ____________________________________________________________________ _ Que16. EPGC. duty and customs charges? ________________________________________________________________________ Schemes (DEEC.What documents are required for Schemes clearance? (Tick which ever applicable) (a) AWB (Airway Bill) (b) Invoice and Packing list (c) Advance licence copy of DEEC.(a) Less than 1 day (b) 1 day (c) 2 days (d) More than 2 days Que14. How much do you charge (in INR) for ADC / NOC clearance other than freight. duty and customs charges? (Please mention against required) (a) DEEC (Duty Exemption Entitlement Certificate): (b) DEPB (Duty Exemption Passbook): (c) EPGC (Export Promotion Goods Certificate): (d) NFEI (No foreign Exchange Involved): Please fill in your details below: Name_________________________________________________ Designation__________________________________________ Organization_________________________________________ Phone________________________________________________ Email________________________________________________ Website______________________________________________ 48 . DEPB. How much is the time taken for shipment to get cleared under Schemes clearance? (a) Less than 1 day (b) 1 day (c) 2 days (d) More than 2 days Que17.
www.html 2. www.com 11.in 4. www.in 7.in 12. www.dhl-discoverlogistics.nic.gov. www.Thank You BIBLIOGRAPHY 1.gov.com 8.gjepc.com 9. www.ias.in 49 .in 6. www. www. www.cbec.nic. www.org 3.com/regulatory.accmumbai.icegate.ieport.com 10. http://dateyvs. www.dpwn.ices.bluedart.gov.mcgm.in 5.gov.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.