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A Project on
Submitted by: (1) Bilal Waghmare (237) (2) Bob D’Penha (208) (3) Subramaniam Dasari (206) (4) Prabhakar Vishwakarma (235) (5) Amitkumar Khule (214) Project Guide: Prof .Zeenal Thakkar
Ramanand Arya Dayanand Anglo Vedic College Datar Colony, Bhandup (E) Mumbai- 400 052
Export of Silk (India)
DECLARATION We ‘HIGH FLIGHERS’ of Ramanand Arya D.A.V College of S.Y.B.M.S (4TH SEMESTER) hereby declare that we have completed the project on “EXPORT OF SILK (INDIA)”. The information submitted is true and original to the best of our knowledge.
Export of Silk (India)
ACKNOWLEDGEMENT In modern complex trade, it demands many professionals to develop International trade, which needs more information than ever before. Their emphasis is on need to study such subject like Import & Export Policy. We hope this project work will be of considerable value to determine our knowledge in the field of export. This is the best part of our project where we are given an opportunity to thank all the people who helped us directly or indirectly to complete our project. Our special gratitude also goes to dearest our Professor Zeenal Thakkar who has given guidance, motivation, inspiration and support by encouraging us. Lastly we would like to thank to all those who are directly or indirectly involved and helped us to complete our project.
Export of Silk (India)
CONTENTS SR. NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 TOPIC COVERED EXECUTIVE SUMMARY OBJECTIVE & METHODOLOGY HISTORY GLOBAL MARKET SHARE ABOUT SILKWORM SILK WHY? WHERE? SILK TYPES FAMOUS SILK CENTRE IN INDIA CENTRAL SILK BOARD DEMAND AND SUPPLY OF SILK RESULT ITEM-WISE ANALYSIS COUNTRY WISE EXPORTS THE CHALLENGES OF INDIA & PROSPECTS OF INDIA INDIA CAN BEAT CHINA EXPORT PROCEDURE AND DOCUMENTATION EXPORT INCENTIVE/ASSISTANCE DESCRIPTIONS OF GOODS FINDINGS CONCLUSION VARIOUS BILLS FOR TRADING PAGE NO 1 2 3 4 5-6 7 8 9-10 11 12 13-14 15 16-17 18 19 20-24 25-26 27-28 29 30 31-35
This project gives a brief idea about the export of silk: History of silk. given in various topics to the best of my knowledge and belief. Keeping the above in view. The developed markets going more towards ecofriendly textiles. India is the 2nd largest producer and exporter of silk in the world after China. This project is a study of “Indian Silk” which is a sensitive item.Export of Silk (India) The export marketing is getting more and more competitive day by day. different competitors of Indian silk in the world market and how India is safe in the 21st century. We also have very big domestic silk sarees market. this project work covers the valuable information on Export of silk. In order to make use of these situations. Let see the project in detail and understand the Indian silk market in the world context. OBJECTIVE 5 . natural fibre like silk can look-up with confidence in the years to come. India silk industry has to gear up itself to meet the future challenges ahead. which consumes 90% of the silk produced in India. export earnings through silk. different incentives/assistance given to the Indian silk exporter. The export policies have a direct bearing on the domestic silk industry at large. how the silk get processed.
Refer some of the book. Surf the net and site to get the valuable information. HISTORY 6 . To know that Is India safe when the world textile trade have been integrated into WTO rules and regulations since 2005 at the international level. To know what are the procedure for exporting the product “Silk”. To know what type of assistance/incentives get to the Indian exporters. The following are the objectives for making this project: To study the India’s contribution in the field of export. METHODOLOGY Following procedure have been adopted for making this project more effective after visiting the council and going through the topic about silk. A conclusion has been derived from the project.Export of Silk (India) The main objective of choosing this subject is to know the contribution of India in the field of “SILK”. As gone through some of the magazine like “SILKNET”. To know exactly what is the position of Indian silk in the world market.
With the spread of Islam. 7 . silk was used as long ago as the 27th century BC. the silkworm came to Sicily and Spain.S. king of Persia. known only to the Chinese. he was clothed in such silken splendor that Alexander was completely overshadowed and demanded as spoils the equivalent of $7 million in silk. surrendered to Alexander the Great. Silk became a valuable commodity in both Greece and Rome. and with the help of the high tariffs introduced during the American Civil War against imported woven goods. The silkworm moth was originally a native of China. About that time. the Roman emperor Justinian I sent two Nestorian monks to China. With the advent of the power loom. Thus. but by the 17th century France was challenging Italy’s leadership. at the risk of their lives. where. The silkworm. and brought them to Byzantium. The first silk mill in the U. penetrated the secrecy. however. The ancient Persian courts used Chinese silks. however.Export of Silk (India) Silk is one of the oldest known textile fibers. According to Chinese tradition. they stole mulberry seeds and silkworm eggs. unraveled and rewoven into Persian designs.S. nor has it ever flourished in the U. and later India. when Japan. The silk looms established in the Lyons area at that time are still famous today for the unique beauty of their weaving. was erected in 1810. When Darius III. secreted them in their walking staffs. the American silk-weaving industry entered a period of growth. the Chinese and Persian silk monopolies ended. China successfully guarded the secret until AD 300. until AD 550 all silk woven in Europe was derived from Asiatic sources. By the 12th and 13th centuries Italy had become the silk center of the West. did not flourish in the English climate. and for about 30 centuries the gathering and weaving of silk was a secret process.
Export of Silk (India) Global Market Share YEAR: .1994 ABOUT SILKWORM 8 .
which are used in the production of cocoons. of the family Bombycidae. domesticated silkworm moth. The silkworm pupates for about two weeks.Export of Silk (India) SILKWORM. The length of the individual fiber composing the cocoon varies from 300 to 900 m (1000 to 3000 ft). Silkworm caterpillars that are fed mulberry leaves produce the finest quality silk. Mature larvae are about 7. if allowed to complete its pupation period. Therefore. it emerges as an adult moth. The silk glands secrete a clear. called spinnerets.6 cm (about 0. the fluid hardens as it comes into contact with air.25 in) long. viscous fluid that is forced through openings. This moth has been cultivated for many centuries and is no longer known in the wild state. About six weeks after hatching.5 cm (about 3 in) long and yellowish gray or dark gray in color. The diameter of the spinneret determines the thickness of the silk thread produced. the common silkworm stops eating and spins its cocoon. The best-known silkworm is the larvae of the common. which hatch in about ten days. The larvae feed on leaves of white mulberry. on the mouthparts of the larva. the eggs are fastened to a flat surface by a gummy substance secreted by the female. common name for the silkproducing larvae of any of several species of moths. in the commercial production 9 . or sericteries. Tearing during emergence damages the silken cocoon beyond commercial use. Bombyx mori. are about 0. The larvae. Silkworms possess a pair of specially modified salivary glands called silk glands. Osage orange. or lettuce. The female deposits 300 to 400 bluish eggs at a time.
WHY? 10 . only enough adult moths are allowed to emerge to ensure continuation of the species.Export of Silk (India) of silk. Other moths known as silkworm moths include the giant silkworm moths of the family Saturniidae. World Raw Silk Production: SILK. The rest are killed by heat. particularly of the genus Antheraea.
Orissa and northeastern states.2 % of world’s total textile production. Though there are over 40 countries on the world map of silk. bulk of it is produced in China and India. especially in rural sector and also as a means to earn the foreign exchange. Asia is the main producer of silk in the world and produces over 90 % of the total global output. Out of Which the Mulberry raw silk product is 78080 MT. The developing countries rely on it for employment generation. mulberry silk is produced mainly in the states of Karnataka. SILK. Andhra Pradesh. Jammu & Kashmir and West Bengal.WHERE? Geographically. while the nonmulberry silks are produced in Jharkhand. Chattisgarh. Brazil and Korea. In India. India is the second largest producer of silk and also the largest consumer of silk in the world. China is the leading supplier of silk to the world with an annual production of 81880 MT (2000). It has a strong tradition and culture bound domestic market of silk. followed by Japan. Tamil Nadu.TYPES 11 . SILK.Export of Silk (India) Silk is a high value but low volume product accounting for only 0. Silk production is regarded as an important tool for economic development of a country as it is a labour intensive and high income generating industry that churns out value added products of economic importance.
TASAR: . These silkworms are completely domesticated and reared indoors. besides Maharashtra. 12 . In India. Bombyx mori L that solely feeds on the leaves of mulberry plant. Tasar culture is the main stay for many a tribal community in India.The bulk of the commercial silk produced in the world comes from this variety and often silk generally refers to mulberry silk. obtained from different species of silkworms which in turn feed on a number of food plants. tasar silk is mainly produced in the states of Jharkhand. It is less lustrous than mulberry silk. other varieties of silks are generally termed as non-mulberry silks. In India. MULBERRY: . These are: MULBERY TASAR MUGA ERI Except mulberry. West Bengal and Andhra Pradesh. India has the unique distinction of producing all these commercial varieties of silk. Tamil Nadu and Jammu & Kashmir which together accounts for 92 % of country’s total mulberry raw silk production.Export of Silk (India) There are four major types of silk of commercial importance. but has its own feel and appeal.Tasar (Tussah) is copperish colour. Andhra Pradesh. the major mulberry silk producing states are Karnataka. coarse silk mainly used for furnishings and interiors. West Bengal. Chattisgarh and Orissa. Mulberry silk comes from the silkworm.
The muga silk. The silk is used indigenously for preparation of chaddars (wraps) for own use by these tribals. It is obtained from semi-domesticated multivoltine silkworm. 13 . this culture is practiced mainly in the northeastern states and Assam. and high value product is used in products like sarees. and chaddars. It is also found in Bihar. a delicacy for the tribal. Ericulture is a household activity practiced mainly for protein rich pupae.Eri silk is the product of the domesticated silkworm. Resultantly. In India. mekhalas.Export of Silk (India) ERI: .This golden yellow colour silk is prerogative of India and the pride of Assam state. Muga culture is specific to the state of Assam and an integral part of the tradition and culture of that state. the eri cocoons are openmouthed and are spun. West Bengal and Orissa MUGA: . Philosamia ricini that feeds mainly on castor leaves. These silkworms feed on the aromatic leaves of Som and Soalu plants and are reared on trees similar to that of tasar. etc.
Tanjavur Varanasi Bishnupur. Birbhum 14 . Chanderi. Bangalore. Ilkal. Kollegal Champa. Kumbhakonam.Export of Silk (India) FAMOUS SILK CENTRE IN INDIA SILK Andhra Pradesh Assam Bihar Gujarat Jammu Kashmir Karnataka Chattisgarh Maharashtra Tamil Nadu Uttar Pradesh West Bengal SILK CENTRE Dharmavaram. Melkote. Salem. Pochampalli. Cambay & Srinagar Venkatagiri. Rigger Paithan Kancheepuram. Molakalmuru. Anekal. Arni. Murshidabad. Narainpet Sualkuchi Bhagalpur Surat.
Devise means to improve cultivation of mulberry plantations Produce and distribute healthy silkworm seed. MANDATE CSB is statutorily committed to: Promote the development of the silk industry by all appropriate measures. Improve the quality and production of raw silk and the marketing of silk Advice and report to Govt. and for this purpose. including the import and export of raw silk. Headquarters – Bangalore. technological and economic research in the silk sector. assist and encourage scientific. 15 . of India on all matters relating to the development of the raw silk industry. of India.Export of Silk (India) CENTRAL SILK BOARD Established in 1949 as a Commodity Board by Govt. in particular. is a premier organization for overall development of sericulture and silk industry. VISION See India emerge as the leader in the world market for silk. Undertake.
To create greater opportunities for gainful employment and improved levels of income in sericulture through spread of scientific sericulture practices. Incentives offered by the Govt. Imparting technical knowledge on silk manufacturing. To improve productivity in all stages of silk production Strengthen levels of efficiency through a commitment to quality SERVICES RENDERED BY CSB EXPORT PROMOTION: Disseminate information on exports of Natural Silk Goods and Import of Raw Silk. Export and Import Policy relating to silk. 16 . Guidance to New Entrepreneur Exporters on procedures and formalities. of India against exports of silk goods.Export of Silk (India) MISSION Make continuous efforts in Research and Development and Technology Transfer.
Silk has a sacred place in the cultural heritage of Indian. It is a tradition that in India no religious rituals will be complete without the use of silk. elegance and sophistication. with all its natural qualities. Natural fibres. Thousands of weavers. Mubarakpur. The demand for raw silk by the saree industry is quite large. According to a rough estimate. Therefore there is an increased preference for textiles made out of natural fibres like silk in the developed markets. From the royal wear to the present status of common man’s wear. the transition of silk took over a period of two millennium. It is also a religious tradition for the bride to wear silk saree in the soledom occasion of their marriage irrespective of their economic condition. silk always remained in demand. which are eco-friendly. Silk industry in India therefore caters to the vast saree market round the year.000 metric tons leaving a gap of around 9000 metric tons. Natural fibres therefore would sustain demand as ideal clothing materials even in the day to come. the demand for silk in India by both domestic and export sector is around 24.000 metric tons of raw silk. Kanjeepuram. 17 . Salem. India has an ancient silk culture right from the prevedics times. India now produces around 15. they need raw silk to run their loom round the year. Dharmavarm etc.Export of Silk (India) DEMAND AND SUPPLY OF SILK Silk from time to time is immemorial is considered to be a symbol of luxury. with their tiny weaving establishments are located at the major weavings centres like Banaras. Being a natural fibre. This trend is being noticed even in the developing markets too. skill still has a special place in the Textile-kingdom as silk. have an increased preference over synthetics the world over especially in the developed market. Nevertheless.
6 % Increase / Decrease US$ 19. US$ Natural Silk Yarn.21 1.2 31.63 6. Made-up Readymade Garments 37. US$ Rs.42 1.75 1.72 -78.77 38.58120.3 2.6 27.1 34. 671.Export of Silk (India) RESULT “SILK EXPORTS .0 -10.7921.95 -18.13 264.32 TOTAL 199.05 -20.52 0.97 Silk Carpet 5.40 8.0 -49.00 0.1 210.0454.82 7. / Million US $) August Item wise exports 2004 2005 Rs.86184.2 -0.83 0.00 1.49 156.01 8.8 18 .99 34.25 6.0 -9. Made-up Readymade Garments Silk Carpet Silk waste TOTAL 2003-05 2002-04 % Increase / Decrease Rs.25 Silk waste 0.09 1.06 43.9 -60.31 April to August Item wise exports Natural Silk Fabrics.68 143.82 45.49 14. 156.10899.96 196.AUGUST 2006” TABLE-1: TOTAL EXPORT EARNINGS OF SILK ITEM (Value: Crore Rs.5 1.77 Fabrics. US$ Rs.8 Rs.4 -15. Yarn.18 105. US$ 48.3 915.1 -5.75 43.2 57. US$ Rs.9832.58 8.80588.
US$ (Rs. Ready-made Garments recorded an export earnings of 45.5% in dollar terms (20.68 crore) showing an increase of 19.3% in dollar terms (14.82 crore) during the period.S. exports of these items touched 143. The major importing countries were U.E.20% in rupee terms). Saudi Africa. 671.A. Hong Kong.Export of Silk (India) “ITEMWISE ANALYSIS” Natural Silk Yarn. U.3% approximately to the total silk goods exports. They are also high value-added items.. Made-ups: Natural Silk Yarn.. France..58 crore)..A. when compared to the same period of the year 2002-03 which was 54. U. Saudi Arabia.0% approximately to the total silk goods exports. 264. account for 73. and U.04 crore). Spain.A. Ready-made Garments: Ready-made Garments account for 23. US$ (Rs.E. 19 . Indonesia. Fabrics. German P Rep.K.S. France and Singapore.49 Mn. During the period April to March of the year 2003-04. U. Hong Kong. The major importing countries were U.. US$ (Rs. April to August for the year 2003-04 indicating a increase of 16.1% in rupees terms) as compared to corresponding period of the year 2002-03 i.e. German.S. Italy.. Made-ups etc.. 588. Fabrics. U.05 Mn.A.13 Mn. Italy.S.80 Mn. US $ (Rs. 120.R. 210.K.
31.72 Mn. Italy. This segment recorded export earnings of 6. U..40 2003-04 481.63 crore) during the period April to August of the year 2004-05 indicating a decrease of 14.40 Mn.3% in rupee terms). 38.The major importing countries are Thailand.K.A.5% approximately to the total silk goods exports. Export of silk waste and its by-products during April to August period of the year 2003-04 compared to the corresponding period of the year 2002-03 are shown in Table – 2 TABLE -2: EXPORT OF SILKWASTE Period Quantity Value (April to August) (MT) (Crore Rs.E. Silk Waste: Silk waste.698 1.US$ (Rs.E. US$ (Rs. US $) 2004-05 94. US$ (Rs.Export of Silk (India) Silk Carpets: Silk Carpet account for3. China Rep.82 crore). However.42 1.. 1.A. German P Rep. Oman. this year. US$ (Rs.83 0.83 crore) during the period of April to August of the year 2003-04 compared to 1.77 Mn.72 “COUNTRY WISE EXPORTS” 20 . Silkwaste export was very high in the last few years. France. when compared to the same period of the year 2003-04 which was 7. amounting to 0. The decline of silk waste export was 77.5% in rupee terms). The Major importing countries are U. there is a significant decline. Saudi Arabia. U..818 8. 8.8% in dollar terms (18. Canada and Singapore.42 crore) for the same period in the year 2002-03. Australia.3% in dollar terms (78.95 Mn. Spain and U. which is the raw material for the spun silk is also exported in large quantities.S.A.) (Mn.
3: COUNTRYWISE SILK EXPORT EARNINGS (Value: Crore Rs.2 22. U.00 + Refers to top 10 importing countries.21100.1441.78 6.3 2.42 12.K 69.2%. 6.5 4.18 9.9 REP U.10899.4069.10 Mn.0 6.96196.30 6.7 SAUDI ARABIA23. US$ (Rs.5 3.6 SPAIN 30.81 62.30 33.69 4.6 FRANCE 24.12 11.2 34.70 7. / Million US $) COUNTRY APRIL TO AUGUST SHARE COUNTRY 2004-05 2003-04 2003-04 2002-03 Rs.1% of total export earnings of 196.49 23.2% respectively of total export earnings.8564.7 1..A. 915.88 2. 7.Export of Silk (India) USA.99 14.21 14.86184.60 2.1 HONG KONG 47.4 ITALY 40.30 7. They altogether accounted for 117.7 3.22 11.65 10.S.98 74. 550.80 55.9 U. 55.6 8.33 6.92 8. The country wise silk export earnings during April to August period of the year 2003-04 along with the data of corresponding period of the year 2003-04 are shown in Table-3 TABLE .14 4.20 48.95 30.96 crore) during the period. U.00 100.A 322.3 GERMAN P 55.56 202.15 11.72 15.85 3.6%.A. German P Rep.E.62 6.5 TOTAL 915. THE CHALLENGES AND PROSPECTS OF INDIAN SILK INDUSTRY 21 .51 8.76 40.91 6.33 2.0% and 5.25 35.0 6.02 313. US$ Rs.31 crore) which was 60. US$ % % U.81 mn.77 5.K.86 5.4 OTHERS 212.2 5. US$ (Rs.8045.29 4.38 23.5 SINGAPORE 33.99 3.E and Hong Kong are the top five countries importing Indian silk goods in value terms during April to August period of the year 2004-05 and accounted for 35.
4 percent share in total textile exports in 2000-01. is much lower than the 75 percent share of China. Silk exports. India’s share of 19 percent of global production. while silk garments account for 22 . Member Secretary and CEO. The Study highlights the prospects for the Indian silk industry. India is the world’s second largest producer of raw silk after China. On the demand side. the Study delineates. account for 1. Silk exports reached a record level of US $ 530 million in the year 2000-01.Export of Silk (India) ‘Indian Silk Industry: A Sector Study’ was done by the Exim bank and released at the hands of Mr. On the supply side. Central Silk Board.2 percent share in total Indian exports and 4. there is a large import demand for raw silk in India for manufacturing value added silk products catering to export demand. developing countries of Asia are also showing an increasing interest in silk products. The Study is part of endeavor to enhance the competitiveness of Indian exporters. both from supply and demand sides. rapid industrialization in China and Republic of Korea would open more export opportunities for India. Besides. At the same time. Joy Oommen. apart from expected growth in developed countries. The efforts taken by Central Silk Board on improving the productivity and quality of Indian silk in order to compete in the international markets. Over 50 percent of silk exports are in the form of fabrics including dress materials. as these countries are likely to reduce land allocation for sericulture practice. the Study identifies that. reduction in the present high import tariff level for silk in developed country markets would provide export opportunities for Indian silk exporters. however. in the WTO arena.
Export of Silk (India) 24 percent and silk made-ups account for 13 percent. Eco-friendly packaging is another aspect that has to be addressed while exporting to the sensitive markets. and image building of silk as comfort clothing are other elements of the export strategy. International campaign for promotion of silk products. followed by the European Union and Japan. exclusive brand promotion. product diversification. INDIA CAN BEAT CHINA IN SILK PRODUCTION 23 . USA is the major importer of silk.
development and promotion agencies. traders and exporters. In India the silk products are being produced which is affordable even to the poor and the lower middles class people. A situation is developing in China where silk production is coming down on account of diversification to other crops while domestic consumption is increasing. Karnataka is catering to the 60 per cent of the national demand and all round efforts are being made reach to higher reach. EXPORT PROCEDURE AND DOCUMENTATION 24 . “The Center is eager in this regard and the amendment will be done in the next session of the legislature.Export of Silk (India) Chinese silk is heavy is useful only for pillow covers and bed spreads and not for attires where as Indian silk which is soft and light is for dress materials. The exhibition which is the first of its kind in India has brought together researchers. central and state organizations. self-help groups. silk handloom cooperatives. Karnataka government has agreed to amend the Sericulture Marketing Act to remove control on sale of cocoon and yarn. “India would like to exploit this situation by going in for massive production of the quality silk.
This is another formality. Registrated with the Shop and Establishment Act: The exporter has to registrated under this act and gets the registrated “License Number”. His choice will be one of the following: • Sole proprietor business. REGISTRATION STAGE: Deciding the nature of the business: ./PAN No: . Obtaining code number from DGFT: .Export of Silk (India) 1. Opening of bank account: . • Partnership firm. This code no. which undertakes to fulfill all banking formalities connected with negotiation of documents and realization of export proceeds. Registration with the Silk Export Promotion Council: . The code number is known as “Importer-Exporter Code (IEC) Number”.An exporter has to select a bank.The exporter must have to decide the nature of the business. • Joint stock company. is granted by “DGFT (Director General of Foreign Trade)”. The bank must be authorized to deal with “Foreign Exchange”.Income from export is exempted from income tax for which he is required to 25 . which every exporter has to complete without which he cannot export any commodity.The exporter is required to register his firm with the “Indian Silk Export Promotion Council” for securing various benefits under the Import Export Policy. Obtaining GIR No.
The exporter should check foreign exchange regulations of the importer countries. It is compulsory to get the benefit of sales tax exemption. 26 . PRE-SHIPMENT STAGE: Sampling and Correspondence: .The exporter has to apply to the sales tax authority for getting “Sales Tax Registration” number.When the overseas buyer accepts the exporter offer or the invoice. Obtaining a confirmed Letter of Credit: . 2. For this purposes he has to first get the GIR No. Preshipment finance: .Together with the confirmed letter order the exporter may send a formal letter to the buyer or importer to open a “Letter of Credit” in his name.Before confirming the order the seller send the sample of the silk material and correspondence with the prospective buyer on the “terms and conditions” of the order.Export of Silk (India) register his firm with “Income Tax Authority”. he should approach his bank for securing “Preshipment finance”. Obtaining Sales Tax Number: .The exporter has to arrange for production of goods as soon as he gets the “Preshipment finance” from the banks. he sends a confirmed order called “Indent” to the exporter.As soon as the exporter gets the letter of credit./PAN No. Production/Procurement of Goods: . Obtaining the confirmed order: .
3. an application for pre-shipment inspection in prescribed forms of “Central Silk Board (CSB)” will be made accompanied by two copies of export invoices. SHIPMENT STAGE: Arrangements of Internal transport from factory warehouse to the port of shipment: . two packing lists and a sample swatch of 6" square dimension.The exporter has to arrange for proper packing and marking of the goods. Export of Silk (India) 27 . the exporter has to arrange for preparation of a complete set of documents.when the goods reach the port of shipment.The exporter has to make necessary arrangements for “transporting of goods” by rail or roads way from his place to the port of shipment. It must ensure proper protection of the goods and quality of the packing material. the exporter can take the assistance from the “Indian Institute of Packing (IIP)”.Export of Silk (India) Packing and Marking: . If necessary.Dispatch of goods from India to foreign countries is a technical job which the exporter require the service of “C&F” agents.Exporters will bring the consignments of silk to the customs point. Appointment of C&F agents: . The following documents must be submitted to the “Custom Appraiser at the Custom House”. C&F agent ensures smooth clearance of goods from the customs and collection of negotiable documents. Silk-pre-shipment inspection: . For each consignment. Preparation and Processing of Shipping Documents: .
Proforma Invoice Central Excise Custom Procedure take Place – During First CSB Inspection 4. name of the vessel.A complete set of documents is submitted by the exporter to his bank for the purpose of negotiating the same and obtaining export proceeds for the same. The following documents are to be submitted and they are: - Bill of Exchange (ANNEXURE -3) Commercial Invoice Bill of Lading (ANNEXURE -6) Marine Insurance Policy Certificate of Origin and Consular Invoice 28 . date on which goods will reach the destination etc. Presentation of Documents to the Bank for negotiation: . the exporter has to send suitable intimation to the importer for his information it include detail like date of shipment. POST-SHIPMENT STAGE: Submission of Documents by the Agents to the Exporter: The C&F agents submit the necessary documents to the exporter to enable him to present the same to his bank for the purpose of negotiation. Shipment Advice to Importer: .Export of Silk (India) Commercial Invoice (ANNEXURE -1) Packing List or Packing Note (ANNEXURE -2) Warehouse Receipt (ANNEXURE -4) Mate’s Receipt (ANNEXURE -5) Letter of Credit Shipping Bill (ANNEXURE –7) Marine Insurance Policy.After the shipment of goods.
When they are found to be alright the transactions is treated closed because the required foreign exchange payment has already been received.Export of Silk (India) Processing of GR Form: . 29 . it will record on the duplicate copy of the GR Formand forward it to the RBI.When the negotiating bank has received payments.
ECGC etc.All silk exporters can avail of the benefits under this scheme for the grant of Replenishment license for import of raw silk free for custom duty on post export basis. Other Assistance: . 30 . Rail/ Ocean/ Air Freight concession.T. Export earnings were not subjected to income tax under section 80-HHC.Exporters who are not availing benefits under DEEC or DEPB scheme can claim Duty Drawback “NEW DRAWBACK RATES FOR SILK ITEMS”. Pre-shipment and post-shipment finance from banks at low interest. The Government has notified the new Duty Drawback Rates vide Notification No.Exporters are also made available other assistance and facilities to encourage exports such as excise duty rebate. But from the year 2000-01. 12/2004 Customs (N. The Drawback Notification comes into effect from 9th February 2004. Exporters are provided with various export incentives/assistance under different Export Promotion Schemes. as the foreign exchange earned through exports is vital to the country at a time of its adverse balance of payment position. Duty Free REP:(DFRC): . There are monetary as well as non-monetary incentives. The following of them are listed: Exemption from Income Tax: -The single biggest incentive that an exporter now enjoys is the exemption from income tax.) Dated 29th January 2004. exemption from sales tax. MDA. this benefit is being phased out in 5 years time.Export of Silk (India) EXPORT INCENTIVES/ASSISTANCE: Government of India offers various incentives and facilities to Indian exporters in order to encourage and support the export efforts. Duty Drawback: .
High fashioned Rs.50 (Rs. Rs. 24. 86.00 (Rs. 24.No Sub Description of goods Sr. Fabrics made of Noil Silk Yarn 3. eighty made wholly or mainly six only) per kg of silk of natural silk other than content. eighty Readymade Garments six only) per kg of silk made wholly or mainly content. Twenty made wholly or mainly four and fifty paise of Noil Silk Yarn.00 (Rs. 86. 6.50 (Rs. of natural silk other than made of Noil Silk Yarn High fashioned Rs. 86. 7. eighty six only) per kg of silk content Rs. Handloom / Power Rs. 5.Export of Silk (India) Sr. 2. Twenty Readymade Garments four and fifty paise made wholly or mainly only) per kg of silk of Noil Silk Yarn content. eighty loom Lungies six only) per kg of silk (including Lungies content.50 (Rs. Twenty four and fifty paise only) per kg of silk content. 24. made of Noil Silk Yarn Readymade Garments Rs. commonly known as Sungits) made of natural silk other than made of Noil Silk Yarn All Custom All Custom 31 . Fabrics made out of natural silk other than made of Noil Silk Yarn.00 (Rs. 1. Readymade Garments Rs. Rates of drawbacks Allocation All Custom All Custom All Custom All Custom All Custom 4. only) per kg of silk content.No. 86.00 (Rs.
50 (Rs. Rs. 86.Export of Silk (India) 8. Twenty All four and fifty paise Custom only) per kg of silk content. Duty Entitlement Pass Book (DEPB): . Duty credit is calculated taking into account the deemed import content of the export product as per the Standard Input Output Norms and determine the basic custom duty payable on the import content.50 (Rs. Handloom / Power loom Lungies (including Lungies commonly known as Sungits) made of Noil Silk Yarn Made-up articles made out of fabrics made wholly or mainly of natural silk other than made of Noil Silk Yarn. Made-up articles made out of fabrics made wholly or mainly of Noil Silk Yarn Rs. 10. Export credit is fixed as a % of FOB value for exports which are as follow: ITEM SILK FABRICS SILK MADEUPS SILK GARMENTS % 6 7 8 32 . eighty All six only) per kg of silk Custom content. 24. Twenty All four and fifty paise Custom only) per kg of silk content. 24.00 (Rs. Rs.The objective of the DEPB scheme is to neutralize the basic custom duty on the import content of the export product by granting duty credit against export. 9.
At a time when Japan the giant silk producers of yesteryears. Indian silk export awaits a bright future in the day to come. Despite the feel good factor in India shinning campaigns are impressive. The following are the findings: Increasing silk productivity and adhering to international quality are two important requirements for penetrating into developed country markets. Tricks and Traps in ecommerce’ (free weekly journal). All these hurdles are expected to clear off when the world textile trade will be integrated into “WTO” rules and regulation disciplined by January 2005. the reduction in Duty Drawback and DEPB has come as a blow. heavily downsizing its production due to migration of sericulture labour to more greener pastures like the electronic industry. In the recent part. 33 . for exporters who are already suffering because of dollar depressions as high as 10% from the last year levels. The Silk promotion circulates different type of magazine in the markets to know the market condition and the market price and some of the magazines are: “FAIDA” contains a column on ‘Tips. There are various kinds of tariff and non-tariff barriers coming in the way of Indian textiles exports today. although not totally unexpected. And how India is facing the challenges of foreign markets. a bit more liberal approach has been adopted in the silk import policy by accounting raw silk import under Duty Free Replenishment Schemes.Export of Silk (India) FINDINGS???? After doing this project we came to know that what is the demand and supply of the silk products in the world markets and what the response of the marketers.
India is going to have a bright future in the year to come.5 million people in the rural and semi-urban areas. This project comments that India is the 2nd largest producer of silk in the world after China. 34 . extension and seed support to the sector also certifies the quality of silk goods export. & OTHER ASSISTANCE”. They also provide various type of training. The export of silk material is good as compared to other country. After doing this project I come to know how Indian silk play a crucial role in strengthing the Indian economy. “With time and patience. the mulberry leaf turns into stain”. It is said that “SILK IS ALWAYS IRONED ON THE REVERSE SIDE WHEN STILL DAMP”. Nature is enhanced by the delightful imperfections in silk. The National Silkworm Seed Project (NSSP) has been entrusted by the CSB with the responsibility of production of quality silkworm seed. DERC. The exporter gets various type of incentive like “DEPB. DUTY DRAWBACK SCHEME. We have various type of authority like CSB. Silk Export Promotion Council they are contributing a lot to the export of silk. As this project deal with the Export of Silk (India). This is one of the motivating factors given to the exporter to get more foreign exchange. There are various kinds of tariff and non-tariff barriers coming in the way of Indian textiles exports and all these hurdles are cleared off as the world textile trade had been integrated into “WTO” rules and regulation disciplined since January 2005 Sericulture provides labour intensive and agro-based cottage industries providing gainful employment to about 6. Silk is hallmarked by its natural imperfections.Export of Silk (India) CONCLUSION It was pleasant experience while doing this project. My main objective of doing this project was to know the condition of Indian silk exporter in the world market and where the India stands in it.
Port of Discharge Marks & Nos.Export of Silk (India) INVOICE Exporter Invoice No. Signature & Date For Authorized Signatory Amount Chargeable (In words) Total DECLARATION: We declare that this invoice shows the actual price of the goods described and that all particulars are true and correct./ Container No. Country of Final Destination Rate Amount Terms of Delivery and Payment Pre. & Kind of pkgs Description of Goods Quantity Total Rate Amount We declare that this invoice shows the actual price of the goods described and that all particulars are true and correct. & Date Country of Origin of Goods Buyer’s Order No. Amount Chargeable Port of Discharge (In words) Marks & Nos. Consignee Buyer (if other than consignee) Exporter Invoice INVOICE No. 35 Signature & Date For Authorized Signatory . DECLARATION: Place of Receipt by Pre-carrier Port of Loading Place of Delivery No. & Date Other INDIAReference(s) Terms (if Delivery and Payment Buyer of other than consignee) Place of Receipt by Pre-carrier Port of Loading Place of Delivery No. & Date Other Reference(s) Exporter’s Ref. & Kind of pkgs Description of Goods Country of Origin of Goods INDIA Quantity Exporter’s Ref./ Container No. & Date Buyer’s Order No. Country Destination of Final Consignee Pre.Carriage by: Vessel/Flight No.Carriage by: Vessel/Flight No.
& Kind of pkgs Description of Goods Quantity Remarks Signature & Date For Authorized Signatory 36 . & Date Buyer’s Order No. & Date Other Reference(s) Consignee Buyer (if other than consignee) Country of Origin of Goods INDIA Country of Final Destination Pre. Port of Discharge Marks & Nos.Carriage by: Vessel/Flight No.Export of Silk (India) PACKING LIST Exporter Invoice No. Place of Receipt by Pre-carrier Port of Loading Place of Delivery No./ Container No.
Export of Silk (India) BILL OF EXCHANGE VALUE DATE PAY THIS FIRST (SECOND UNPAID) BILL OF EXCHANGE TO THE ORDERS OF THE SUM OF AGAINST INVOICE NO DATED DRAWN ON FOR AUTHORISED SIGNATORY 37 .
Freight payable at No. REF. NO. of original B/L Place and date of Issue Signature 38 . Shipper Consignee Notify Address Pre carriage by Vessel Port of Discharge Item Description Weight Measurement Place receipt Port of loading Particulars given by the exporter Freight details Charges etc.Export of Silk (India) BILL OF LADING BL NO.
Marks for This receipt is to be exchanged for company’s Bill of Lading.Export of Silk (India) MATE’S RECEIPT SHIPPING COMPANY DATE Received in good order and condition on board the . Signature (Mates) 39 . The under mentioned goods from Item Description Weight Length .
2) We are not responsible for any shortage and damaged of the material. Sr. M/S. Godown in charge/ M.No.B. Remarks DATE: N. Particulars Nos. Weight Lorry No. FOR 1) Weight and Quantity not checked by us. 40 .Export of Silk (India) WAREHOUSE RECEIPT WARHOUSE COMPANY STORAGE INTIMATION NO.
Rotation No Let Export under Preventive Supervision I/We hereby declare that the particulars given above to be true.Export of Silk (India) SHIPPING BILL SHIPPING BILL FOR GOODS UNDER CLAIM FOR DRAWBACK Port Bombay Name of Vessel Master of Agents Exporter’s Name Colour Address Port at which goods to be dispatched Signature Packages Number & Description s in words and figures Marks & Number Unit Details of goods to be given separately for each class or Description Quantity Amt Descriptions of Goods Rate Amt Value No. Assistant Collector of Customs Signature of the exporter or his Authorized Agents 41 . and date of duty bill Amt of Drawba ck Country of final Destinations Remarks Entered No. I/We claim the usual drawback on the abovementioned goods.
Export of Silk (India) 42 .