SUMMER INTERNSHIP PROJECT REPORT 2012 Export Import & CFS Documentation and Customer Satisfaction Survey In

Submitted in partial fulfilment of the requirements for the degree of

Postgraduate Program in International Business/ (Marketing)

By Priyanka Jaiswal

At

GLOBSYN BUSINESS SCHOOL Salt Lake Sector V

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ACKNOWLEDGEMENT

The training that I undertook in Century Ply Ltd, Kolkata was a unique experience for me. The theoretical knowledge coupled with practical exposure gave me an excellent opportunity to understand the nuances of export, import, CFS, logistics management. It gives me immense pleasure to express my profound gratitude towards Century Ply     Mr. Ashutosh Jaiswal Mr. Vidyanand Singh Mr. Anant Rajwanshi Mr. Partha Bhadhuri

For mentoring and motivating me throughout the internship programme and guiding me in bringing out this project report on “Export, Import and Logistics Operations through Ships”. I would express sincere gratitude to Prof. Avik Mukherjee our faculty for his valuable guidance and encouragement extended during the entire course of the summer training. In the end, I would like to thank all those people who are left unmentioned here but have contributed in one form or the other for my successful training in the company.

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2012 Signature of Student (Priyanka Jaiswal) 4 .DECLARATION I Priyanka Jaiswal.PGPIB student of Globsyn Business School. Kolkata hereby declare that I have completed my Summer Internship Project titled as Operations of CFS in kolkta: With Reference to Procedure in Shipping on 28th June. The Information submitted is true & original to the best of my knowledge. 2010. Date: 28TH June.

5. 10.. Future Scope of CFS Business in Kolkata………………………………………………. Reference………………………………………………………………………………… 5 ... Recommendations………………………………………………………………………. 6. Purpose. 12. Benefits of using CFS………………………………………………. Limitations faced………………………………………………………………………… 13. Diversification &Description……………………………………………………………. 2. 4. 11. What is CFS (Container Freight Station)……………………………………………….. Types of container handling……………………………………………………………… 8.CONTENTS 1... Questionnaire……………………………………………………………………………. Facilities. CompanyOverview………………………………………………………………………. 7. Operations& Documentations of CFS…………………………………………………… 9. Import documentation……………………………………………………………………. 3. Export documentation…………………………………………………………………….

 It has the distinction of becoming the first ISO 9002 company in India. Sajjan Bhajanka and Mr. MISSION      T o provide utmost satisfaction to the consumer through best quality and customer care To continuously upgrade the product through innovations and convergence of new technology and to produce the best quality at the lowest cost To safeguard and enhance shareholder value To respect the dignity of all employees and together to become instrumental in the development of the country while protecting the environment To utilise the surpluses for the welfare of employees and the society at large VISION  Continue to remain the best Plywood-Panel Corporation in India with growth in allied areas.  The Centre for Monitoring Indian Economy (CMIE) has also given Century Ply the top position in its surveys.  Established in 1986 in Kolkata.  Century Ply brand is leading brand in the Indian organized plywood industry named as Century Ply Boards (I) Ltd.  It is the leading brand and largest seller of Plywood and Veneers in organized sector. Century Ply Boards (I) Ltd is FSC certified company in Plywood industry showing the effort to ecological interest. 6 . a joint effort of Mr.  Century Ply was adjudged the Fastest Growing Company with the Highest Turnover by the famous Journal Construction World. Sanjay Agarwal.CENTURY PLY BOARDS (I) LTD.  Most sought-after brand in wood industry in India.  Pan India presence with more than 30 offices across the country.

the 7 year powder-proof guaranteed PF plywood. Indonesia and other south east countries.Over the years Century Ply has introduced boiling water resistant decorative veneers. Century Ply's laminate plant started operations. „Star Cement‟  Ferrous Alloy: Leading manufacturer in North East India. etc. . All the activities 7 .Owns the top-selling cement brand in the North East.  Power Plant. The unit was mainly set up to capture the growing demand of Ferro silicon. Shyam Century Ferrous Ltd came in to existence in the year 2001 in Meghalaya. Indonesia.  Export/ Import: . an integral constituent used in the production of steel.Century Ply is also in power generation with a captive power plant in North-East. Canada. UK. In 2004. The imports are of wooden logs. Europe. the revolutionary non-leachable Fire safe plywood. veneer. They are exporter of High Pressure laminates to USA.A CFS is an extended arm of Port/ ICD/Air cargo Complex.  Cements:. Malaysia. Australia. Malaysia.  CFS: . where import/ export goods are kept till completion of their examination and clearance. Jeddah.DIVERSIFICATION Plywood/ Laminates Import/ Export Cements Century Ply CFS(Contai ner Freight Station)/ Logistics Power Plant Ferrous Alloy  Plywood: . Singapore.Century Ply imports in huge quantity from Europe. and paper based product and chemical for indigenous use.

Manindra Nath Banerjee. re-export. Mangi Lal Jain.Director Global Presence 8 . Sanjay Agarwal. Hari Prasad Agarwal.Jt. B Ganguly – Chairman Mr. warehousing. Management The company is managed under the overall guidance of Board of Directors comprising of experienced and distinguished professionals. temporary storage for onward transit and outright export and transshipments take place from such stations. Plistina Dkhar. Managing Director Shri Prem Kumar Bhajanka.Executive Director Ms. Managing Director Sri.Director Shri.related to clearance of goods for home consumption. Managing Director Shri Vishnu Khemani.Vice Chairman Mr.Managing Director Shri Brij Bhushan Agarwal. temporary admissions. Sajjan Bhajanka. Sajan kumar Bansal.Jt.Jt.director Mr. Ajay Baldawa.Director Sri.             Mr.Managing Director Shri S.

NATURE AND SCOPE OF THE PROJECT The scope of work includes:  Understanding the Domestic and International Logistic Industry.  Detailed survey with existing clients (CHA) 9 . A thorough research on a Logistic company(Century Ply Board (I) Ltd. advantages and its prospects in business development.) and earning knowledge about its   Functionality Operating Procedure  Partial study on “LOGISTIC MANAGEMENT “and understand its functions.

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It is presented in the place of a commercial invoice when there is no sale between the sender and the importer.A pro forma invoice is used in international trade represents the details of an international sale to customs authorities. It contains a detail about the cargo and its amount. It does not mention the Load Port and Destination Port name. or if the terms of the sale between the seller and the buyer are such that a commercial invoice is not yet available at the time of the international shipment. 12 .Proforma Invoice.

quantities.Purchase Order/Sales Contract-A purchase order (PO) is a commercial document issued by a buyer to a seller. Acceptance of a purchase order by a seller usually forms a oneoff contract between the buyer and seller. so no contract exists until the purchase order is accepted 13 . indicating types. and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services.

14 . It is prepared on a special form being presented by the Customs authorities of the importing country.insurance. etc. weight and/or volume of the goods for the purpose of determining customs import value at the port of destination. freight. It facilitates entry of goods in the importing country at preferential tariff rate. Canada. packing costs. terms of delivery andpayment.Custom Invoice -Extended form of commercial invoice required by customs(often in a specified format) in which the exporter states the description. Mainly needed for the countries like USA. quantity and selling price.

15 . price. It contains the details about the good. importers name and exporters name with load port and destination port with a Custom stamp on it.This is issued by the Custom after appraisement of the cargo.Custom Packing List. It is done in the Port or in CFS before shipment is done.

Central Excise Invoice- Forms ARE-1. For each one represents a kind of certificate document. 16 . A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties. It is directed transferred to port for shipment.It is the main document required by the Customs Authority for allowing shipment. seller. Shipping Bill/ Bill of Export. buyer and some other parties.Through this application appraisement of cargo in CFS or port is not required. As the stuffing. included ship's owner.Application for removal of excisable goods for export by air/sea/port Form ARE-4. checking and sealing is done in warehouse in presence of Custom officer.

The number in the set will be indicated on each bill of lading and all must be accounted for. a bank which finances a trade transaction will need to control the complete set.Bill of lading. and must show how many signed originals were issued. three or more.Bill of Lading is a document given by the shipping agency for the goods shipped for transportation form one destination to another and is signed by the representatives of the carrying vessel. "FreightPrepaid”: Paidby "Freight collect”: To be paid by the buyer at the port of discharge shipper 17 . The bill of lading must be signed by the shipping company or its agent. Only one original is sufficient to take possession of goods at port of discharge so. It is issued in the set of two. This is done due to the safety reasons which ensure that the document never comes into the hands of an unauthorised person.

Package numbers.The Certificate of Origin is required by the custom authority of the importing country for the purpose of imposing import duty. it would normally include:      The name of the company and address as exporter. It is usually issued by the Chamber of Commerce and contains information like seal of the chamber. The certificate must provide that the information required by the credit and be consistent with all other document. 18 . Any weight or measurements must agree with those shown on other documents. It should be signed and stamped by the Chamber of Commerce. The name of the importer.Certificate of Origin . details of the good to be transported. shipping marks and description of goods to agree with that on other documents.

The invoice must:         Be issued by the beneficiary named in the credit (the seller). commercial invoice is finally used by the custom authorities of the importer's country to evaluate the good for the purpose of taxation. Be address to the applicant of the credit (the buyer). Include the description of the goods exactly as detailed in the credit. Be issued in the stated number of originals (which must be marked "Original) and copies. Also known as export invoice or import invoice. 19 . Be signed by the beneficiary (if required).Commercial Invoice document is provided by the seller to the buyer. State the price amount payable which must not exceed that stated in the credit Include the shipping terms.Commercial Invoice. Include the price and unit prices if appropriate.

This document has special importance in wholesale trade where large amount of money involved.A Bill of Exchange is a special type of written document under which an exporter ask importer a certain amount of money in future and the importer also agrees to pay the importer that amount of money on or before the future date. Holder of the Bill: The person who is in possession of the bill. Payee: The person to whom the payment is to be made. 20 . Following persons are involved in a bill of exchange: Drawer: The person who writes or prepares the bill.Bill of Exchange. Drawee: The person who pays the bill.

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A key principle underlying letter of credit (L/C) is that banks deal only in documents and not in goods. precise quantity and value of goods that have landed or are being shipped out. The buyer has a maximum amount of days to pay these goods and are sometimes offered a discount if paid before. whereby bank (the Issuing bank) acting at the request and on the instructions of a customer (the Applicant). to another port where permanent repairs are then carried out. In this system Importer receives all the original documents only after making the payment. Prepared by a qualified customs clerk or broker.The beneficiary certificate is provided in response to details required and requested by the buyer/importer. after temporary repairs have been affected.A certificate issued by a classification society surveyor to allow a vessel to proceed after she has met with a mishap that may have affected its seaworthiness. and agreed prices for products or services the seller has provided the buyer. normally the exporter. Buyer also provides the necessary instructions in preparing the document. It is frequently issued to enable a vessel to proceed. The document is issued by a financial organization at the buyer request. will provide the beneficiary certificate evidencing a certification that certain actions have been complied with or documents supplied. The International Chamber of Commerce (ICC) in the Uniform Custom and Practice for Documentary Credit (UCPDC) defines L/C:"An arrangement. 22 .An invoice or bill is a commercial document issued by a seller to the buyer.  Bill of Entry -A declaration by an importer or exporter of the exact nature.IMPORT DOCUMENTS  Packing List  Invoice. An invoice indicates the buyer must pay the seller. according to the payment terms. however named or described.  Certificate of Origin  Bill Of Lading  Sea Worthy Certificate. it is examined by customs authorities for its accuracy and conformity with the tariff and regulations. indicating the products. quantities.  Beneficiary Certificate .L/C also known as Documentary Credit is a widely used term to make payment secure in domestic and international trade. often in conjunction with a documentary collection or documentary credit/ letter of credit (L/C). The beneficiary.  Sales Contract  Letter of Credit. The beneficiary's certificate is a document issued by the beneficiary of the international trade transaction.

of India. 25 kms from Kolkata in association with Ministry of Commerce – Govt.5 – 2 lakh tons of cargo every year. warehousing. Time.     Decongestion of main sea port Dwell time reduction Overall Efficiency: Cost. All the activities related to clearance of goods for home consumption. where import/ export goods are kept till completion of their customs examination and custom clearance. warehousing. temporary admissions. The Jetty is equipped to handle 1.It also helps in operating jetty at Falta.CONTAINER FREIGHT STATION (CFS) A CFS is an extended arm of Port/ ICD or temporary storage yard for import & export containerized cargo. re-export. approx. The imported goods can be immediately shifted from the port to CFS which also helps in the reduction of port congestion. The owner and operator of vessels are under the subsidiary of Century Star Shipping Ltd. temporary storage for onward transit and outright export. Volume & Service CFS & ICDs 23 . PURPOSE OF CFS A common user facility with public authority status equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers carried under customs control and with Customs and other agencies competent to clear goods for home use. temporary storage for onward transit and outright export and transshipments take place from such stations. temporary admissions. Shipping & Jetty:. re-export.

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Out bound transport & Delivery  Export Cargo : ◦ Inbound Container or Cargo at CFS ◦ Container stuffing. if required ◦ Customs Inspection & Seal ◦ Payment of CFS dues ◦ Movement from CFS to CY 25 . ◦ Payment of CFS dues ◦ Lift off.ACTIVITY FLOW AT CFS  Import Cargo : ◦ Container Movement from CY(Container Yard) to CFS(Container Freight Station) ◦ Lift on / lift off to the right location in the Stack Yard ◦ Customs Inspection & Clearance ◦ De-Stuffing. if required.

Medicines.  Open-top containers-are used to keep different of machines or other materials and then it is tied up with ropes. Chemicals.used to carry chemicals.  Tank containers. It is used to carry dangerous goods and needs special place to keep. oil etc. Meat etc.CONTAINER HANDLING  Refrigerated containers – It is used to bring non durable goods.  General Purpose Containers-for all types of goods. Its rental charges are high . - 26 .

tall. which have a maximum height of 2591 mm (8'6").  Flat Rack containers. but taller. high-cube containers are 2896 mm. High-cube containers are for the most part 40' long. High-Cube containers. It is used to keep machines. 27 .Containers used to hold hot or cold products to ensure that they will be in good condition when they get to the customer's home. or 9'6".High-cube containers are similar in structure to standard containers.  Platform & insulated containers. In contrast to standard containers.A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top. but are sometimes made as 45' containers.

Fire fighting equipments. Handling capacity of Century CFS in terms in TEUS Century CFS @ Sonai: 3000-3500/Month Century CFS @ JJP: 9000-11000/Month 28 .2 KMS) Nearest Sea-port – Kolkata Docs System (Approx. of 40 Mts capacities. Fork lift – 6 Nos Kalmar Reach Stacker – 5 Nos. 3 KMS) Nearest ICD/CFS – Central Warehousing Corporation CFS(Approx. Canteen facility & CC TV surveillance. Mechanical Crane – 35 tons capacity. Kona Expressway Junction (Approx. 14 KMS) Nearest Railhead – Brace Bridge Railway Station (Approx.5KMS) INFRASTRUCTURE OF CENTURY CFS         Trailers – 50 Nos. 1. Flood lights/ High mast towers for round the clock operations.LOCATION OF CENTURY CFS Nearest Highway – NH 6. Hard stand field with Paver Blocked for uninterrupted operations even during heavy monsoons.

MOL.  Reefer container plugs points.  Ample parking space. NLS Agency etc. Seahorse.  Weighment facility. Parikh Marine. Transworld Group. ULA.FACILITIES IN CENTURY CFS  EDI Connectivity with fully computerized operations on software developed by CMC.  Customs office. APL.  Shipping agents house for extension counter.  Accommodation for banking facility. PIL. Evergreen. CSAV. NYK. Star Shipping. 29 . CMA-CGM. Seabridge Maritime. Heppag Lloyd. YML & MCS.  Cargo consolidation PRIME CUSTOMERS Maersk & Safmarine. HANJIN.  Strong Room for valuable cargo.

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which shipping line pays on behalf of the importer or importer directly pays to the Port. It becomes easy for both custom and the importer about the goods. Hence for all this work Port charges a certain amount.  Form 1 / Form 2 : For removal of Import Containers  Port Payments : Since the container are kept in the port till the removal of it to CFS or impoter also lift on and lift off facility is provided .it is made by the shipper on reaching the consignment to destination port.  Job entry  Bill of Entry  Jetty Challan  Delivery Order  Duty Payment  Customs Challan  Appraisement  Seal cutting permission  Gate Pass 33 . This contains the details of good in each container given as line number.DOCUMENTATION  IGM (Import General Manifest) .

refer and TANK containers? A) CENTURY B) CWC C) BALMER LAWRIE 5) According to you which CFS has the best warehousing facility in Kolkata? A) CENTURY B) CWC C) BALMER LAWRIE 6) Which CFS is operationally smooth in working? A) CENTURY B) CWC C) BALMER LAWRIE 7) Which CFS is the most economical to work with? A) CENTURY B) CWC C) BALMER LAWRIE 8) Which CFS takes the least time in billing procedure? A) CENTURY B) CWC C) BALMER LAWRIE 9) Can you suggest which of the following needs the most improvement in CFS? 34 .QUESTIONNAIRE 1) Which CFS‟s takes the least time in documentation & container removal from port? A) CENTURY B) CWC C) BALMER LAWRIE 2) Which CFS employees have the best attitude towards their customers? A) CENTURY B) CWC C) BALMER LAWRIE 3) Which CFS has the best process & facility for custom & internal CFS documentation? A) CENTURY B) CWC C) BALMER LAWRIE 4) Which CFS has the best arrangement for handling hazardous.

 Transport facility can be provided from FCI to gate also.           Points highlighted by the CHA are:Transportation facilities from FCI to Operation department. 35 . Hygiene Food and sitting arrangements.A) B) C) D) E) Transportation from Port to CFS ( ) Customer Relationship ( ) Space ( ) Security Measure ( ) Warehousing Facility ( ) 10) Do you think railway connectivity inside the CFS will help in smooth operation or will give additional support? A) CENTURY B) CWC C) BALMER LAWRIE 11) What do you suggest CFS‟s of Kolkata for further improvement in operation.  The custom should go for appraisement and checking at least thrice a day. Improvement in top down facilities Requirement of risk stackers Payment through cheque and other ways instead of cash Problem with custom staffs. PROBLEMS HIGHLIGHTED  As we know that CFS is a service industry it is important that customer should be well satisfied and the service should be customer oriented rather business oriented. RECOMMENDATIONS  The person/ manager of CFS should be on round to see the work operations frequently. Charges to be lowered as compared to other CFS Improvement in top down facilities. Proper washroom facilities.  Person working in operations department should be humble and kind to serve the people.  After the survey we found that minor issues may leads to major problem which leads to loss in Business.

centurycfs. Limitation while do the project  Due to limited time period we could cover a smaller part of this field.shipping-worldwide.com/summary/expproc.aspx http://www.html 36 .cbec.com/exim/guides/export-finance/ch_3_letter_of_credit_lc.com/exim/guides/export-finance/ch_4_trade_documents.htm http://www.com http://www. Proper sitting arrangements can help the CHA to work comfortably  Warehousing facilities are required.import-export-made-easy.eximguru.eximbankindia.centuryply.eximguru.pdf http://www.com www.in/excise/formidx.com http://www.eximguru.com www.com/Beneficiarys-Certificate.gov.aspx http://www. REFRENCES Magazines:  Gateway  Shipping Times Web sites:          www.

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