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SUBMITTED TO UNIVERSITY OF PUNE BY Ku. Kirti Tiwari PGDFT(2010-2011)
Sinhgad Technical Education society‟s Sinhgad Institute of Management S.No. 44/1,off sinhgad Road, Vadgaon (BK), Pune-411 041 Ph: 020-2435 8380/2435 8355 Fax: 020-2435 4835 Mob: 9881742711 Email: email@example.com
This is to certify that Miss. Kirti Tiwari of Sinhgad Institute of Management has successfully completed the project work titled as “Export Procedure And Documentation” at “SARDA ENERGY & MAINERALS LTD.” in partial fulfilment of requirement for the award of the Post Graduate Diploma in Foreign Trade to University of Pune ,prescribed by the Sinhgad Institute of management. This project is the record of authentic work carried out during the academic year 2010-2011.
She has worked under our guidance and direction. Her work is found to be satisfactory and complete in all respect.
Dr. Daniel Penkar (DIRECTOR)
Prof. Mangalgouri Deshmukh (PROJECT GUIDE)
It gives me immense pleasure in presenting this project. It is my pleasant privileges to thank all those who helped me in moulding and shaping my project. Without their guidance, cooperation and best wishes it would not have been possible for me to complete my training and report satisfactorily. I feel indebted to my project coordinator Mr.Manish Mishra (DGM Marketing) and express my sincere thanks to: Mr. Sujit Ojha, HOD (HR) Mr.Deena Nath Verma,Sr Officer(Sales &Marketing) Mr.Yogesh Sharma Officer (Sales and Marketing) Mr.Kunal Parmar,Officer(Sales &Marketing) whose selected views, morale support and proper guidance has been possible for bringing out this project report in a scheduled time and with a nice get up and for all the valuable support throughout the training period and successful completion of this report. Lastly, a big thanks to all those who helped me sparing time even through their busy schedule and for being kind enough to help me whenever needed them.
Since the last few years the environment of the business has completely changed. The modern business placed on a very complex and intricate environment, the constraints and opportunities provided by the nature of the economy and the economic system, political and legal framework, social system, geographical and demographic factors etc. have profound impact on the business. Many developments have taken place during the last one and half decade, with the opening of Indian economy through globalization and rapid industrialization. Developments have taken place in almost all the sector, via: the Technology sector, Finance sector, Communication sector, Health sector, Engineering sector, etc.
Keeping all the drastic changes in mind, our recognized institute SINHGAD INSTITUTE OF MANAGEMENT, PUNE, has outlined a winter internship program to gather various information from different industries. It facilitates the students to understand and grasp quickly. It increases the skills, knowledge, team spirit and above all the potentiality of the students to keep pace with the rapid growth of industrialization.
The purview of our training is to learn much knowledge from practical studies and not merely from theoretical studies.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. INTRODUCTION COMPANY PROFILE EXPORT OF FERRO ALLOY EXPORT DOCUMENTS RESEARCH METHODOLOGY FINDINGS LEARNINGS SUGGESTIONS CONCLUSION APPENDIX ANNEXURE
6 11 20 41 48 50 51 52 53 54 55
Though India‟s export compared to other countries is very small. Export occupies a very prominent place in the list of priorities of the economic set up developing countries because they contribute largely to foreign exchange pool. Exports lead to national self reliance and reduces dependence on external assistance which howsoever liberal. In order to maintain healthy balance of trade and foreign exchange reserves. International market being a very wide market. Exports play a crucial role in the economy of the country. Export refers to outflow of goods and services and inflow of foreign exchange. may not be available without strings. Exports are a vehicle of growth and development They help not only in procuring the latest machineries. which are not available indigenously. equipment and technology but also the goods and services. It is necessary to have a sustained and high rate of growth of exports. 6 . huge quantity of goods can be sold in a form of exports.Introduction Export in simple word means selling goods abroad. but one of the most important aspects of our export is the strong linkages it is forging with the world economy which is a great boon for a development nation like India.
To acquire on the hand experience in the procedural aspects of export documentation. 7 . Export operation and custom clearance procedure involved in it along with documentation procedure. To understand the procedure of the export documentation that prevails in the organisation.Statement of problem To study the export procedure of Ferro alloys in SEML and to know the documents used in export of Ferro alloys. Objectives of study To learn the practical aspects of the international trade in order to get clarity over the theoretical concept.
The current and prospective competitive position. Marketing and manufacturing capabilities of competitors. 8 .SCOPE OF THE STUDY The scope of marketing research could cover the business problems relating to the followings. Buying habits and pattern of consumption Size and location of different markets. not only in India but also overseas. Chances of improvement of current channels. Most suitable entry timing. The prospects for growth or construction for the current markets being served. New mantras of emerging segments. Types of consumers that compromise present and potential markets.
LIMITATIONS OF THE STUDY Not a panacea Not an exact science Limitation of time Erroneous findings Not exact tool for forecasting In experience research staff Narrow conception of marketing research 9 .
attempt is proved to be failure most of the times. its functioning. The Winter Internship Program which commenced on 15th Dec 2010 and concluded on 15th Jan 2011 came along with a lot of learning. which are followed. developing skills needed as a future manager. SEML has created a niche for it in the Indian and the INTERNATIONAL Market with the help of focus on quality. the work culture. services to customers and best business policies. Even though the scale of the crisis seen in 2010 was beyond anybody‟s imagination. The year 2010 saw unprecedented volatility and turmoil in the global markets. I am pleased that the team at SEML posted its fifth consecutive year of record sales. The business market place environment has become very dynamic and changing very fast. The knowledge & skills gained here gave me a deep insight of the corporate world. functioning of organizations. As a brush up with the corporate world. the difficulties faced by them apart from the learning about the project. and effect of external world on the industry. 10 . I got to analyze the mindset of people in these recessionary times. Although today‟s business practices have evolved out of the past but there are complex practices.Executive summary To reach the zenith alone.
COMPANY PROFILE 11 .
billets. SEML has become the supplier of choice for many domestic and international customers across more than 60 countries. The company firmly believes in benchmark product quality. It foresaw the importance and emergence of energy and minerals as two critical ingredients for developing economies and particularly for India. the company merged with Chhattisgarh Electricity Company Limited (CECL) in 2007 with a vision to becoming a leading energy and minerals company. SEML differentiates itself from its peers by not being just another steel company. people focus. ethical business practices and good corporate citizenship. Kamal Sarda Headquartered in Raipur. coal and manganese mines in India and is aggressively looking for mineral resources across the globe. SEML was started by Mr. ingots. Over the last three decades the company has continuously diversified its product portfolio to include many customized value added products. TMT bars) and one of the largest manufacturers and exporters of Ferro Alloys in India. Today. Synergy in Energy became the basis of all its future endeavours.SARDA ENERGY & MINERALS LTD. 12 . Chhattisgarh. Building on these values. SEML is one of the very few companies to become completely self-sufficient in terms of its energy requirements and is well on its way to achieve self sufficiency in other mineral resources. The company has acquired iron ore. (SEML) IntroductionSarda Energy & Minerals Limited (SEML) is one of the lowest cost producers of steel (sponge iron. customer centric approach. SEML is listed on the Bombay Stock exchange and is traded as SARDEAN.
Customer focus-We believe in high customer satisfaction and becoming a part of our customer's success story. Integrity And Ethics-We believe in our commitments and strive to achieve high ethical standards. People -We believe in our people and constant upgradation of their skills and leadership capabilities. 13 .VisionTo be a globally respected energy and minerals company creating superior value for our stakeholders on a sustainable ValuesOur values are reflected in: Quality-We believe in setting benchmarks through the quality of our products and services. Corporate Social Responsibility.We believe in caring for our environment and our communities.
All the plants are equipped with a digital control system. Strict metallurgical control is maintained at every stage of production. The Company has a dedicated Quality Assurance Department with a well equipped laboratory and trained technicians to monitor the process and materials at different points. Ensure Zero defect in each and every area of operation. Achieve customer delight by offering value for money. This goal shall be sustained. through committed teamwork and continual improvements in the. Quality Objectives Continual improvements in productivity and process capabilities. 14 . Power & Ferro Alloys manufacturing facilities of the company are ISO 9001:2008 certified. Quality products & services to its external and internal customers and try to exceed their expectations. from receipt of raw materials to dispatch of finished products. Achieve status of preferred Business Associate. SEML takes pride in its product quality and the timeliness of its delivery schedules. Continual enhancement in quality of all resources. The Sponge Iron & Steel manufacturing facilities.Quality statement SEML at all levels shall continually strive to provide consistent and reliable. ensuring a high quality of output. The advanced microprocessor based control allows for a complete automated functioning.
Providing practical exposure to students from engineering colleges. Ministry of Commerce Best exporter award CONCOR excellence award for best performance in exports. Planting of over 1 Mn trees to create green belts. of India. Running Ambulance (Mobile dispensary) for staff and remote villagers.Corporate Social Responsibility Utilization of solid waste and fly ash to manufacture bricks. Providing infrastructure facility to govt. schools. USA CERTIFICATE of recognition from (USP)VIZAG Star export house from Govt. 15 . SEML has adopted 270 schools for tribal children in naxal affected area of Rajnandgaon district. Awards ISO 9001:2008 Certificate from ABS quality evaluation.
SEMHL was incorporated as a wholly owned subsidiary of SEML in Hong Kong during 2007-08. Parvatiya Power Private Limited -Parvatiya Power was incorporated for implementation of hydro power plants. It is a run-of-the-river scheme for power generation by exploiting potential of Sarju River. 16 . China being a major manufacturing hub and an important destination of international trade. The Project is located near village Munar of Bageshwar district in the state of Uttaranchal. a representative office has also been set up in Beijing.Upcoming Projects The company is planning to open an Ferro Alloys plant in Vishakapatnam. The company will actively seek mineral resources acquisitions internationally. Sarda Global Venture Pvt. Group Companies Sarda Energy & Minerals Hong Kong Limited (SEMHL). Presently. A hydro power plant at Sikkim is also in pipeline. The primary focus of the company would be to establish a strong international trading arm. 4. Limited -Another wholly owned subsidiary of SEML was established in Singapore during 2007-08 for business related acquisitions.8 MW Loharkhet Hydro Power Project has been installed and commissioned in February 2008. a tributary of Kali Ganga River.
Our stake in the company is 33 percent. The company is in the final stages of receiving of various clearances and permissions to commence its operations. Madhya Bharat Power Corporation Limited. Chhattisgarh Hydro Power Private Limited. Chhattisgarh Investments Ltd. from Raipur. The work of land acquisition and all project clearances are in full swing.The JV Company has been allotted a coal block in the Madanpur area of Chhattisgarh in consortium.. Sobabul. Bamboo etc have been planted.91 percent share in the joint venture. About one million trees of various species such as Teak. 17 . The Company is currently in the process of identifying contractors for civil and hydro mechanical work of the project. SEML has 24. Madanpur South Coal Company Ltd.The company was established in the year 2005 for setting up a 24 MW Gullu Hydro Power Plant in the state of Chhattisgarh. about 40 Kms. The Company is currently involved in land acquisition.. was incorporated two decades ago as a closely held public limited company..The JV Company was incorporated for operating a private railway siding for unloading the raw materials being transported through the railways. with over 800 acres agricultural estate at Kharora. Raipur Infrastructure Company Ltd. obtaining statutory clearances and identifying contractors for civil and hydro mechanical works.Chhattisgarh Investments Ltd. The project envisages utilizing the flow of the Rongni Chu. Hybrid Eucalyptus. It has also identified other potential sites in the state and is planning to develop the same.The Company was incorporated for implementation of 96 MW Rongni Chu hydro power project in Sikkim. a tributary to the Teesta River for the generation of power in the run of the river scheme. Khamar. socio-forestry and horticulture. The Company has interests in investments.
It sells high quality TMT bars under the brand name HYTECH TMT produced from one rolling mill in Nagpur. Products Or Manufacturing Units Ferro Alloys Steel Sponge iron Mining Eco bricks TMT Bars a. 18 .IT also posses continuous casting billets manufacturing facility. of India. The company is yet to commence business activity. b. one rolling mill in Raipur is in pipeline. our major products include high carbon Ferro manganese and Silico manganese. Ferro Alloys-SEML has emerged as most preferred Ferro Alloys supplier in the Indian and international market. The company is one of the largest exporter of manganese based Ferro Alloys products in India and has been conferred as star exporter house status by govt. Chhattisgarh Bricks Private Ltd. Steel-SEML has induction furnace of 2*6 MT AND 4 *15 MT..The company has been formed to manufacture flyash bricks utilizing fly-ash generated from the company's captive power plant.
Mining.G). coal and manganese ore. Thus it has taken steps to either own or strengthen the supply chain of critical inputs such as ron ore.c. 19 . Sponge iron-SEML has 2*100 TMD and 2*500 TPD rotary kilns with state of the art digital control system and consistence adherence to strict quality control parameters. It has Iron ore minesSEML is mining iron ore from their own mines(20 TMT) in Rajnanadgaon (C.G) COAL Mines-it has acquired and started exploration of 67 MMT coal mines at Raigarh (C. d.for SEML to become the lowest cost producer uninterrupted supply of Raw Material is of the most imp.
Export of ferro Alloy 20 .
“good customer care and prompt service” To study how Export of Ferro Alloys is done we have divided Ferro Alloys like Introduction Role of Ferro Alloys Demand driver for Ferro Alloys Types of Ferro Alloys Ferro Alloys produced at SEML Ferro Manganese (FeMn) Silicon Manganese(SiMn) FeMn & SiMn(definition) Chemical composition Uses Sales Production 21 .Ferro Alloys In SEML Ferro Alloys div.The marketing dept at SEML has a quality objective .i.e. is very important as it contributes 60% of the total profit(approx).
Pricing Business process Major competitors Target market Major consumer and producer. Problems Solution USP of SEML 22 .
Ferro – Chrome and Charge –Chrome called BULK FERROALLOYS. Depending upon the process of steelmaking and the type of steel being made. The total installed capacity of Ferro products Alloys in India in 2007-08 was 3.over Rs. 4380 crore in 2007-08.64 MT for bulk and noble Ferro Alloys together as per Indian Ferro Alloys Producers Association (IFAPA). Ferro – Silicon. Silico –Manganese. Ferro Alloys are used as additives in steelmaking as de-oxidants and as alloying agents.000 crore and it exported Ferro Alloys worth Rs.Ferro Alloys SEML is one of the largest manufacturer and exporter of Premium Grade Ferro Alloys from India. has pushed the demand of Ferro Alloys globally. 23 . The industry entails a capital investment of intermediaries to the steel industry. The product – mix of the Ferro Alloy industry consists of Ferro Manganese. These are added in steel production process no only for de-oxidation but also for grain size control as well as for improvement in the mechanical properties of steel. the requirement of Ferro Alloys varies widely. where Ferro Alloys are used as additives. 5. Role of Ferro Alloys Ferro Alloys are used in steelmaking and consists of less than one percent of the total raw materials required for steel production. The growth in steel industry.
As soon as the production of steel increases the consumption of Ferro Alloys also increases.Demand drivers The demand driver of Ferro Alloys is the production of steel. Types of Ferro Alloys Ferro manganese Silico manganese Ferro silicon Ferro chrome SEML produces- 24 .
Based on the potential performance it has got STAR EXPORT HOUSE status from Govt . 25 .of India.ferro alloys ferro manganese (FeMn) silico manganese (SiMn) NOTE AS a result of quality and reliability we have become a major player in the Ferro Alloys industry within a short period.
usually as coal and coke.5%(min) 6-8%(max) 0.5%(min) 6-8%(max) 0.05%(max) Domestic quality 70%(min) 1. producing the Ferromanganese.2 MW 300 KG 200-250 kg 2700 kg 950-1000 kg 380 kg 3. Ferromanganese. in either a or an electric arc furnace-type system.05%(max) Mn ore Mn(input) C Power Dolomite Quartz 2700 kg 1050-1100 kg 390 kg 3. a Ferroalloy with high content of manganese. with carbon. called a submerged arc furnace. Chemical composition-for producing 1 tn FeMn the specifications areFerro manganese Content Manganese(Mn) Silicon (Si) Carbon(c) Phosphorous(P) Sulphur(S) Export quality 75% (min) 1. The oxides undergo carbon thermal reduction in the furnaces. Ferromanganese is used as a deoxidizer for steel.Ferro manganese Ferro Manganese is a Ferro alloy product widely used in steel manufacturing units to provide strength to steel.0 MW 300 kg 200-250 kg 26 . is made by heating a mixture of the oxides MnO2 and Fe2O3.4%(max) 0.3%(max) 0.
Cost of producing FeMn is less than cost of producing SiMn because of less consumption in FeMn SEML is exempted from sales tax till 2012. 1 ton stainless steel contains 13 kg FeMn and 1 ton mild steel contains 13 kg SiMn. SEML produces high carbon FeMn power Uses FeMn is used in making stainless steel like utensils etc.e manganese ore) is imported from South Africa and Australia.Note Raw material(i. 27 . SEML is one of the largest importer of Mn ore in India. It is used in making automobile parts It is used in making railway tracks.
3MW 300 KG 200-250 kg 2700 kg 840-850 kg 360-370 kg 4. Chemical composition. They undergo a thermal decomposition reaction.05 to 0. silicon dioxide (SiO2).05%(max) Mn ore Mn(input) C Power Dolomite Quartz 2700 kg 850-900 kg 380-390 kg 4. 65 to 68% of manganese and 2% of carbon.5%(max) 0. with carbon in a furnace.3%(max) 0.10%. It is used as a deoxidizer and an alloying element in steel. The standard grade silicon manganese contains 14 to 16% of silicon. is made by heating a mixture of the oxides manganese oxide (MnO2). a Ferroalloy with high contents of manganese and silicon. and iron oxide (Fe2O3).for producing 1 tn SiMn the specifications are silico manganese Content Manganese(Mn) Silicon (Si) Carbon(c) Phosphorous(P) Sulphur(S) Export quality 65%(min) 16%(min) 2%(max) 0.0 MW 300 kg 200-250 kg 28 .35%(max) 0. The low carbon grade SiMn has carbon levels from 0.03%(max) Domestic quality 60%(min) 15%(min) 2.Silicon manganeseSilicon manganese (SiMn).
SALES-SEML sells FeMn and SiMn at domestically and internationally. domestic ferro alloys sales exports direct indirect 29 . Uses SiMn is used in mildsteel. so every steel company produces both of them. SiMn is used in making TMT. Cost of producing Ferro manganese is less than silico manganese. SEML produces low carbon SiMn.billets.Note The slag of Ferro manganese is used in making silico manganese.WRM Basically SiMn is used in making structures as it is very hard.
5E+09 1E+09 500000000 0 FY 08-09 FY 09-10 SALES OF FERRO ALLOYS Fig. PRODUCTIION OF FERRO ALLOYS 46000 44000 42000 40000 38000 36000 34000 FY08-09 FY09-10 PRODUCTIION OF FERRO ALLOYS 30 .5E+09 3E+09 2.5E+09 4E+09 3.the plant has 5 furnances with the capacity of 9 MVA each is capable of producing 66000 TPA.Ferro Alloys Sales Production.5E+09 2E+09 1.SALES OF FERRO ALLOYS 4.
PricingPricing of Ferro Alloys is of 2 types Export pricing Domestic pricing 1.A-Factory based pricing-This type of pricing is done when the buyer will bring his own containers into the factory and take the stock or material . importers and exporters – or buyers and sellers – must have a common understanding of the terms and conditions under which they trade.CIF stands for cost/insurance /freight here the seller or exporter price will include the cost of product.Note The production in 09-10 is very low because 09-10 is still running.FOB is an inco term. Note1. 1 . insurance of goods & freight cost.Inco termsTo avoid conflicts and difficulties. Inco term are international commercial terms given by in International Chamber of Commerce (ICC). 1 .B. “Incoterms 31 .FOB based pricing-FOB stands for free on board.FOB stands for free on board that means the exporter will include the cost of delivering the goods to the ship in the price.CIF based pricing.Export Pricing-price of Ferro Alloys for exports is of 3 types Factory based pricing FOB based pricing CIF based pricing 1 .C.so we will only charge him the price of the material.
the sales conditions. mentionedin the offer.The seller delivers the goods to a carrier or place appointed by the buyer. Group Description E -The seller only makes the goods available to the buyer at the seller‟s premises. C -The seller has to contract at his costs for carriage (and insurance for CIF and CIP).2000” in a contract determines the obligations of the buyer and the seller and greatly contributes towards eliminating causes of disagreement. the confirmation of an order or if they are stipulated by the parties in separate agreement. the purchase order. F. for example.FreightDefinition: The price paid a common carrier for the carriage of goods. obligations and risks needed to bring the goods to the place of destination (except import customs clearance and un-loading at the final destination). Table-The structure of Incoterms 2000 2. D. Incoterms apply only if incorporated in the contract of sale or if they are. 32 .Ocean freights are the price paid for carrying goods from one place to another.The seller must assume most costs.
Domestic Business Process ENQUIRY OFFER NEGOTIATION CONTRACT PURCHASE ORDER ORDER CONFORMATION SALE ORDER PAYMENT RECEIVED TRANSPORTATION' INVOICE IS FORMED 33 .Business Process1.
Export Business Process- enquiry offer draft contract draft L/C scruntiny of l/c final contract and l/c supply schedule shipping line concor nag/raipur dispatch from plant Custom clearance draft final l/c documents payment monitoring bill processing EP copy releaing & BRC proof of export documents DEFB/TRA/VERIFICATION customer database enquiry updation 34 .
In case of exports 5 things are very imp.G Corporate ISPAT Pvt .P Methan Alloys Ltd. Custom dept-custom dept takes care of our goods.Polacha.West Bengal For Export Level Tata Iron And Steel Joda Orissa Navbharat Ferro Alloys Ltd .A.A.West Bengal Shri Girija Smelters Pvt.they are DGFT-it gives us the permission to do exports Excise dept-while doing exports we have to submit all the documents to the excise dept. .Ltd.P Methan Alloys Ltd.C.Burdaman .G Cosmic FerroAlloys Durgapur.C. .Durgapur.Champa.they are Stock Shipment date Price Payment terms Incoterms There are 3 governing bodies which plays a major role in exports.West Bengal 35 .Durgapur.Raipur.West Bengal Cosmic Ferro Alloys Durgapur.West Bengal Impex Ferro Tech Ltd.West Bengal Prakash Industries Ltd.Polacha.G Hira Group. Ltd Raipur C. Major CompetitorsFor domestic level Tata Iron And Steel Joda Orissa Navbharat Ferro Alloys Ltd . Durgapur.
Target MarketTARGET MARKET DOMESTIC EXPORTS FERRO ALLOYS Stainless steel producers It depends on demand USP of SEML Good quality-SEML is known for their quality. Problems faced Availability of labor Train connectivity Container problem 36 . there is a “quality policy” of SEML which is placed every where in SEML to always remember that always deliver best quality to customers. the customers have a lot of trust in SEML bec they know that SEML will give them the best quality. Prompt service-the second imp factor which differentiates SEML From Its Competitors is prompt service.in case of Ferro Alloys domestic SEML price is taken as a base price in the market.Note At international level Ukraine is the major competitor for India.they never compromise on their quality.bec of the quality the prices of SEML is little high then its competitors but then also their sales are not affected. Goodwill-for a organization to be successful trust of the customers s very imp. SEML has created a goodwill in the market.
Solutions To solve the labor problem SEML is planning to bring automatic machines. Major consumer and producerFerro alloy Largest producer Largest consumer Domestic West Bengal Western region Export Ukraine EU 37 .
EXPORT PROCEDURE AND DOCUMENTATION 38 .
DOCUMENTS USED IN EXPORT 41 .
MISCELLANEOUS DOCUMENT 42 . PAYMENT DOCUMENT.INVOICE CERTIFICATE CUSTOMS DOCUMENT EXPORT DOCUMENTATION TRANSPORT DOCUMENT EXCHANGE CONTROL DOCUMENT.
e the selller b) consignee. 44 . Documentation may also refer to tools aiming at identifying documents or to the field of study devoted to the study of documents and bibliographies. in exports bill of lading is the most important document .custom clearance .it is prepared by the seller and issued to the buyer. It is the guaranty of payment.i.In case of exports documentation plays a very imp role because they are the only proof their.e the bank c) notify party.DOCUMENTS OF EXPORT Documentation refers to the process of providing evidence (“to document something”) or to the communicable material used to provide such documentation (i.on the basis of b/l L/C is formed. Packing list-it contains all the information present in commercial invoice except the price.all the transactions like delivery of goods.e the buyer d) quantity & price of the stock. a document).i. Commercial Invoice-is a document which contains all the information likea) name & address of the exporter i.L/C stands for letter of credibility. Documents in export process.e. The documents required in export process are Draft-It is prepared by the seller it contains all the basic information it is prepared for the seller in the initial stage.payment are done based on documents.
Letter of credit (L/C). whereby a bank (the Issuing bank) acting at the request and on the instructions of a customer (the Applicant) or on its own behalf : 1. however named or described. On the basis of (B/L) (L/C) is made. (B/L) is issued by the shipment line at the time of export. The International Chamber of Commerce (ICC) in the Uniform Custom and Practice for Documentary Credit (UCPDC) defines L/C as: "An arrangement. The document is issued by a financial organization at the buyer request. 2. Authorised another bank to negotiate against stipulated documents provided that the terms are complied with. 45 . It is the most imp document in the export process. Bill of lading (B/L)-It Is Also Called Non-Negotiable Sea Way Bill. 3. Authorised another bank to effect such payments or to accept and pay such bills of exchange (draft). Is to make a payment to or to the order third party ( the beneficiary ) or is to accept bills of exchange (drafts) drawn by the beneficiary.Letter of Credit (L/C)also known as Documentary Credit is a widely used term to make payment secure in domestic and international trade.
then he is referred to as the first or original beneficiary. A credit is issued in his favour to enable him or his agent to obtain payment on surrender of stipulated document and comply with the term and conditions of the L/c. It is issued by the exporter (seller) that we have sent x amt of goods acc to your specification.2 copies is sent to the custom dept and 3 copies is sent to the excise dept. who has to receive payment from the applicant. provided the documents are in accordance with the terms and conditions of the letter of credit.5 copies of ARE is made. ARE-ARE stands for Application for Removal of Excisable Goods. 46 . who has to make payment to beneficiary Issuing Bank (Opening Bank) : The issuing bank is the one which create a letter of credit and takes the responsibility to make the payments on receipt of the documents from the beneficiary or through their banker. If L/c is a transferable one and he transfers the credit to another party.Parties to Letters of Credit Applicant (Opener): Applicant which is also referred to as account party is normally a buyer or customer of the goods. In case of regular customers if they didn‟t appoint the inspection agency. Advising Bank : An Advising Bank provides advice to the beneficiary and takes the responsibility for sending the documents to the issuing bank and is normally located in the country of the beneficiary. Beneficiary : Beneficiary is normally stands for a seller of the goods. Inspection certificate or Certificate of quality-in case of dealing with the new parties when the buyer wants to verify that the quality is acc to their requirement. And the inspection agency will issue the inspection certificate. so the buyer will appoint the inspection agency. The payments has to be made to the beneficiary within seven working days from the date of receipt of documents at their end. The seller will give them the quality certificate.
we get this document after we file the shipment bill Annexure-it is issued and signed by the customs and contains the info likea) Name of the company i.e the buyer b) Invoice no c) Destination d) Description of goods e) No. GSP-GSP stands for Generalized System Of Preferences. GR Form-it acts like a proof of that the exporting goods are fine. It is like a quality certificate. 47 . of containers Shipment Advice-it is issued by the seller to the buyer. it is issued by the Govt Of India to the exporter.
Without being clear about what we are going to research it is difficult to plan how to research? Therefore formulating and clarifying the research topic is the starting point of any research project. the research topic is formulated as such. it is necessary to have at least some idea of what to do? This is probably the most difficult and yet the most important component of the research project. A research objective requires rigorous thinking which derives from the use of more formal language. consideration of time and cost are important issues that need to be kept in mind. 48 . Therefore the broad objective of the study is: To analyse the dispatch of Ferro Alloys. SAMPLING Generally when filled studies are undertaken in practical life. out of those millions. This results in researchers selecting only a few items as sample.Research Methodology Before we start our research. “Export procedure and documentation” Research Objectives The research may begin with a general focus as a base from which to right a set of research objective. Taking into account the above matter. Objectives is more generally acceptable as evidence of the researchers clear sense of purpose and direction.
Performance rating of last quarter of 2010. representatives. The optimum sample is one which fulfills the requirement of efficiency. In this research. Before starting. Single truck/ Container each day for 5 days. The samples which are selected for the information collection are: Monthly dispatch figure of last three years. reliability and flexibility. SAMPLE SIZE This refers to the number of items to be selected. but should be optimum. Time taken by each truck for loading. It should be neither excessively large nor too small. technique which is used for the collection of data is judgmental sampling. Rational judgment is taken such that sample selected is the representative of the entire transportation under logistics.SAMPLE TECHNIQUE The items which are selected is called sample and the process which involves in selecting the sample is called Sample Technique. Destination wise rates of transport for last one year. 49 .
before leaving the factory. The trucks generally wait in queues because the trucks which have arrived earlier are there for loading the material / goods at loading point. The way which involves the loading cycle is so complicated that even if the transporter wants to arrive quickly. This variation ranges from 5 hrs to 22 hrs. As per late preparation of „certificate of test‟ by quality assurance department.FINDINGS From the entire study on total loading cycle time. The normal time taken is more than 5 to 6 hrs. the entire documentation process moves slow and make delay. The dispatch documents generally release after 4‟o clock in the second half of the day and therefore even the trucks are fully loaded it waits for the documents to get . it is observed that the total time taken by the trailer (including the empty container) and truck exceed the normal time frame. 50 . There are more areas that have taken in to consideration which create delay in delivery. On few occasion printing and painting of reels is done after placement of lorry. Delay in arrival or in time placement of trucks and trailers. it takes enough time. These are as follows:- Late preparation of documents leads to late delivery of loaded trucks. The loading cycle time in the whole process is greater and it is a lengthy procedure this time needs to be reduced.
Good communicatons skills is must in today‟s scenario A mentor is needed. etiquettes & punctuality Be ready with plan but be prepared to face unknown Knowing your employer & employees Taking opinions from them is very important Interaction with the executives and employees in any organization is very important Enjoy your work Be optimistic Be as simple and alert as possible Never compromise on quality Goodwill is very important for a successfulful business. Maintain discipline. In business. Good working environment and supportive colleagues are very important for good work. practical knowledge is also very imp.Learning Only theoretical knowledge is of no importance. To succeed Be patience Small things are also very imp. 51 .
billing. delivery and payment. Increase the manpower in the department. inventories label and customer data are closely linked with channel performance. The company should manage effective logistics information management because it helps to link channel partners and share information to make better logistic decision.e. The company should shorten the order-to-payment i. A visit to the plant should be arranged for every intern or trainee Ms office should be provided in the systems International news should be provided to the staff A monthly review should be done with all the clients and staff to figure out the problematic areas so that we can find out the solutions which helps s to improve. Information flow such as customer‟s orders. It reduces warehousing and inventory duplication cost. lapse time between order‟s receipt. 52 .Recommendations/Suggestion The company should centralise inventory in one place and use fast transportation to fulfil orders.
Transparency in work. To understand the total process and document one should need basic knowledge of the subjects like EXIM policy. Client always insist on keeping them informed about the status of the consignment. A standard format of these document is always preferred as it help CHA to understand the information in a correct and broader manner. this is quite obvious because he also need to inform his customer about the shipment status. 53 . which ultimately saves time in the process. insurance etc. systematic recording of documents are some of the required and necessary qualities for any of the CHA. so better service is the priority of any Exporter. Exporters are required to give a copy of invoice and packing list. Good made with client always helps in strong relations. A small mistake by agent may loose client business.CONCLUSION After understanding the ground realities of foreign/ international trade it is crystal clear that the service is a major factor and should be kept in mind at any moment of time. If someone has proper knowledge of these areas then it will be easy for him/her to work in the field. shipping. Accuracy in document is very important. punctuality. Many of the exporters don‟t even mind to pay a little extra for better services. proper communication.
in www.co.co.in www.com Documents from the organization 54 .co.SEML.AppendixInternet sources www.wikipedia.org www.com www.undp.google.org www.steelorbis.com www.Ferro-Alloys.steelonthenet.in www.ifapaIndia.
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