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Summer Internship Project Report

on
CUSTOM CLEARANCE PROCEDURE IN LOGISTICS
By
Mohit Chauhan

B.COM(HONS)of 2013
Under the Supervision of
Dr. C. P. Singh
Assistant Professor
Department of Marketing
In Partial Fulfilment of the Requirements for the Degree of
Master of Business Administration Marketing & Sales
At

AMITY COLLEGE OF COMMERCE AND FINANCE


AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2013

DECLARATION

Title of Project Report

I declare
(a)That the work presented for assessment in this Summer Internship Report is my own, that it
has not previously been presented for another assessment and that my debts (for words, data,
arguments and ideas) have been appropriately acknowledged
(b)That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.

Date : Pradeep Kumar A0101907142 MBA M&S Class of 2013

CERTIFICATE

I Dr. C. P. Singh hereby certify that Rohit Razdan student of Bachelor of Commerce (H) at
Amity College of Commerce & Finance, Amity University Uttar Pradesh has completed the
Project Report on The Dimensions of Reverse Logistics: A Study of the Indian Organized
Retail Environment, under my guidance.
Dr. C. P. Singh
Assistant Professor
Department of Marketing

ACKNOWLEDGEMENT

We are very thankful to Tolani Institute of Management Studies who give us such
opportunity to work out for project on foreign trade. We also express our gratitude to Mr.
Apurva Maheta for his precious help during the entire course.
We are very thankful to all employees of Shakti Forwarders Pvt. Ltd., Gandhidham for
supporting and providing us the necessary knowledge that would help in our future
quests. During our training period, we have not only learnt the standard Custom Clearance
procedure but also learned about other aspects of for running the shipping departments
smoothly.
The various department of the organization work in close co-ordination with each other
in order to achieve a common end.
We would also like to thanks Mr. Suresh Maheta, Mr. Rajesh Naiyer, Mr. Paresh
chaturvedi, Mr.Dharmesh, Mr. Manoj for their guidance which help us to complete our
project. Once again we heartly thankful to Shakti Forwarders Pvt. Ltd who help us in
making a project of procedure of custom clearance for import and export and gives us an
opportunity to learn under kind guidance and learning environment.

TABLE OF CONTENTS

INTRODUCTION ................................................................................................... 1
CHAPTER ............................................................................................................... 3
ANOTHER CHAPTER ........................................................................................... 5
A section of the second chapter ..................................................................... 6
Another section ............................................................................................. 8
Subsection of the section.................................................................... 10
Another subsection ............................................................................ 10
Subdivision of the third level................................................... 11
Further subdivision.................................................................. 12
ANOTHER CHAPTER.......................................................................................... 15
SUMMARY AND CONCLUSION............................................................... 18
APPENDIX A. TITLE OF THE FIRST APPENDIX ............................... 20
APPENDIX B. ANOTHER APPENDIX............................................................... 21
REFERENCES....................................................................................................... 23

INTRODUCTION

In view of the rapidly and constantly changing business environment globally and fast
evolving trade and commerce scenario in India vis--vis global market, there is
increasing requirement of reliable and dependable integrated logistics solutions
providers who can provide comprehensive, professional and dependable logistics
support to the industry, keeping the same in mind and with the vision to provide
quality and professional comprehensive logistics solutions to the international &
domestic trade.
In the development of any countrys economy, exports play a crucial role. Export is the
most important aspect of earning foreign exchange. A country should have to be
equipped with natural

resources, so that it can sell these resources into the

international market.
With the opening up of the Indian economy, the international trade has been increased
significantly as there are less restriction on exports and imports.
More and more multinationals are registering their entry into the Indian market. The
imported products are now in well reach of Indian customers. The living standard has
been improved. This results in substantial amount of growth in both exports and
imports.
The procedure of both the exports and imports are time consuming and complicated. In
this regard there are several logistic companies and custom house agents providing their
services on the behalf of the exporters and importers to facilitate the trade between
them. These custom house agents and logistics companies take over the responsibility
of sending the goods from the exporters premises to the importer premises, which also
includes the most important aspect of custom clearance.

All-Ways Logistics India Pvt. Ltd. is a leading name for custom clearance. Over the
years they have operated smoothly with their wide spectrum of personalized services.

1.2 Industry:

Indian shipping scenario:


India has 12 major ports and 185 minor/intermediate ports. Over 90 percent by
volume and 70 percent by value of Indias overseas trade, aggregate of exports and
imports, is carried out through maritime transport along its 7617 km long coast line.
India has the largest merchant shipping fleet among the developing countries and its
merchant shipping fleet ranks 18th in the world, in terms of fleet size. Another silver
lining is the average age of the Indias merchant shipping fleet is only 12.7 years as
compared to the international average of 17 years .but, Indias share, sadly, constitutes only
1.45% of the worlds cargo carrying capacity.
As on April 1, 2005, India has a total of 686 ships comprising 8.01 Million Gross
Tonnage (GT) and 13.28 Million Dead Weight Tonnage (DWT). The shipping
corporation of India (SCI), the countrys largest carrier, owns and manages 82 ships with
2.54 million GT and accounts for 40 percent of national tonnage. India is also among
the few countries that offer fair and free competition to all shipping companies for
obtaining cargo. There is no cargo reservation policy in India.
Indian shipping has remained a deferred subject till independence. Only after
independence, the development of shipping has attracted the state policy. The subject of
shipping, in the beginning, has been dealt with by the ministry of commerce, till
1949 and subsequently, in 1951, it has been shifted to the ministry of transport and
shipping. In 1947, the government of India has announced the national policy on
shipping, aiming at the total development of the industry. In order to accelerate the
developmental efforts, the necessity for a centralized administrative organization has
been felt. Accordingly in September necessity for a

centralized administrative

organization has been felt. Accordingly in September 1949, the directorate general of
shipping with its headquarters at Bombay has been established with the objectives of
promotion and development of Indian shipping industry.

Shipping Company:
Shipping Company is companies which invest his capital in purchase of ships and
provide transport service through the sea to its customers is known as shipping
company.
Basically the shipping companies provide services in two ways
1.

TRAMP SHIPS

2.

LINER SHIPS

Tramp Ships:Tramp ship or general trader, does not operate on a fixed sailing schedule, but merely
trades in all parts of the world in search of cargo, primarily bulk shipments. It is a
chartered ship prepared to carry anything anywhere. Its cargoes include coal, grain,
timber, sugar, ores, fertilizers, etc like which are carried in complete shiploads.
Tramp tankers are specialized vessels. They may be under charter or be operated by an
industrial company, that is oil company, motor manufacturer, etc to suit their own
individual/market needs.

Liner Ships:Liner ship operates on a fixed route between two ports or two series of ports. They
operate on a regular scheduled service. They sail on scheduled dates/times whether they
are full or not. The cost of using the service (freight) can be quoted from a fixed tariff.
Container ships in deep sea trades and roe ship in the short sea trades feature
prominently in this field.

Different Types of Ships:1. Container ships


2. Roll-on/roll-off ships
3. Break-bulk ships
4. Crude carries
5. Dry-bulk carriers
6. Gas carriers
Container Ship:-

Container ship is also known as a BOX SHIP

Container ships cater to only containerized cargo and generally have cranes on
board. They can store up to 4 tiers of containers below the main deck and up
to 3 tiers above deck.

Roll on / Roll - off Ships:-

Roll-on/roll-of ships were created to accommodate cargo that was


self propelled, such as automobiles or trucks, or cargo that could be
wheeled into a ship, such as railroad cars. They are essentially floating
garages. It takes long time to load such vehicles over the rail it is preferable
to load them by rolling them onto the ship.

Roll-on/Roll-of ships therefore have a portion of their hull that opens up


and acts as a ramp on which the vehicles are driven before being parked on
the many decks of the ship and secured with chains. The hull opening is
either on the side of the ship or on its stern (rear).This ship have an
advantage in that specialized lifting equipment is not required, even for the
heaviest of loads, since the cargo rolls under its own power or pulled by a
tractor.

Break-Bulk Ships:

Break-bulk cargo ships are multipurpose ships that can transport shipments
of unusual sizes, unitized on pallets, in bags, or in crates.

Due to increasing role of RORO (Roll-on/Roll-off) ships, container ships,


break-bulk ships share of international trade is decreasing.

The advantage of break-bulk ships is that they can call at just about any port
to pick up different kinds of cargo loads, giving them a flexibility that
container ships do not yet have.

The main problem with a break-bulk ship stems from its laborintensive loading and unloading because each unit of cargo handles separately.

Crude Carriers:-

Crude carriers are the bulk ships dedicated to the transport of petroleum products,
whether unrefined or refined, such as gasoline or diesel fuel.

The crude carriers are also known as VLCC (Very Large Crude Carriers) and

ULCC (Ultra Large Crude Carriers).

VLCCs and ULCCs are such large ships that they can call on only a few ports in
the world; since their draft, when loaded, can reach 35 meters(115 feet) they need
very deep ports for berthing.

Dry-Bulk Carriers:

Dry-bulk carriers operate on the same basis as oil tankers in that they are
chartered for a whole voyage.

Dry-bulk ships have several holds in their hull, in which non-unitized


cargo is placed.

Dry bulk ships carry agricultural products, such as cereals, as well as


coal, ores, scrap iron, dry chemicals, and other bulk commodities.

Dry-bulk ships are generally small enough to fit through the PANAMA CANAL.

Gas Carriers:

Another important bulk trade is the transportation of Liquefied Natural Gas


(LNG) and of Liquefied Petroleum Gas (LPG). These types of carriers have a very
distinctive shape. These ships hold several spheres of compressed gasses, only
part of which are visible above their main deck.

The LNG and LPG trades tend to be slightly different than the average bulk
transport, as they are used in a particular trade for long periods of time, on longterm contracts-called time charter parties and therefore nearly have a sailing
schedule, not unlike liner ships.

Containerization:
Containerization, the term very familiar to present day shipping industry is a
completely unknown concept, a few decades back. Malcolm McLean, owner of a huge
trucking company in USA, who has first conceived the idea of containerization by
transporting containers though ideal-x in 1956 and initiated a revolution in the history
of shipping industry.
Before containerization, cargo has to be loaded first into the truck and later truck is to
driven to the port, unload the goods at the port and them into the ship at the port. This has
been a cumbersome

process and, in consequence, consumed a lot of time. For

completing the exercise, ships are detained in the port for about ten days for the entire
process of unloading and loading. With the arrival of containerization, shippers have
started stuffing into containers, at their own place, and containers are brought to the
container yard (inland container depot) for shipment. This process has greatly
facilitated in two, after unloading the containers and loading them again into the ship. The
process of containerization has decongested the ports that are heavily crowded.
Shipping is truly the lynchpin of global economy and international trade. More than
90% of world merchandise trade is carried by sea and over 50% of that volume is
containerized. In todays era of globalization, international trade has evolved to the level
where almost no nation can be self-sufficient and global trade has fostered an
interdependency and inter-connectivity between

countries. Shipping has always

provided the most cost-effective means of transportation over long distances and
containerization has played a crucial role in world maritime transport.

What is meant by containerization?


Containerization is the practice of carrying goods in containers of uniform shape and size
for shipping. Almost anything can be stored in a container, but they are
particularly useful for the transport of manufactured goods. It is a method of
distribution of goods using containers. The use of containers has, indeed, facilitated
carriage of goods using containers. The use of containers has, indeed, facilitated
carriage of goods. Exporters need to go to the seaport for export of goods. Instead the
goods sent to inland container depot/ container freight station for sending to the
destination.
Since 1950s, containers have revolutionized sea-borne trade, and now carry around
90% of all manufactured goods by sea. The transporters in developed countries have
started making use of containerization, early now; developing countries have started
making use of containerization, early. Now, developing countries too are taking a
greater advantage in using containers for transportation of goods. Different countries are
giving logistic support, giving the necessary boost to improve the required
infrastructure to containerization, for encouraging export industry.
Containerization is to contribute about 22.66% to total cargo by 2010-11.
The robust growth of Indias manufacturing industry has pushed up Indias
containerization. Indias containerization has over 70% of total exported cargo, and
around 40% imported cargo. The Government of India has pursued a policy of
developing a number of Inland Container Depots and Container Freight Stations to
facilitate modal interchange and distribution of cargo and most importantly to avoid
awkward customs procedures from the waterfront. Containerization at major ports of
India contributed about 11% of total cargo handled at those ports in 2000-01; it
increased to 16% in 2005-06 and is estimated to further increase to 22.7% by 201011.

Challenges Container port demand and capacity imbalance:


In view of the buoyant global merchandise trade scenario, container port demand has
been growing rapidly. Globalization has spurted merchandise trade, which is ready for big
stride. During the last four years, world container traffic has been growing at over
9.2% per annum, while container port capacity is growing at an average 4.5% per
annum. There will be requirement for additional port capacity to be built if the current
trend and port utilization level is maintained by 2010. The projected global container
demand and container port capacity illustrates that there will be a huge difference
between container port demand and capacity in the next four to five years. This is one of
the major challenges for global container trade. Extra capacity should be built to meet
the growing demand.

Types of containers-:
There are different types of containers. The popular types are:
1. General purpose containers-:

There are the most common type of containers and are the ones with which most
people are familiar. Each general-purpose container is fully closed and has width
doors at one end for access. Both liquid and solid substances can be loaded in these
containers. Based on length of the container, the container is generally known as a 20 ft
container or 40 ft container, in practice. Hazardous or dangerous cargo can not be loaded
into general-purpose containers.

2. Reefer containers (refrigerated) -:


These play an important role in South - Africas exports of perishable products, and are
designed to carry cargoes at temperatures reading down to deep frozen. For
refrigeration, they are fitted with electrical equipment for supply of necessary
electricity.
3. Dry bulk containers-:
These are built especially for the carriage of dry powders and granular substances in
bulk.
4. Open top/open sided containers-:
These are built for heavy and awkward pieces of cargo. These containers are ideal
where height of the cargo is in excess of height of the standard general purpose
containers.
5. Liquid cargo containers-:
These are ideal for bulk liquids, such as wine, fruit concentrates, vegetable oils,
detergents and various other non-hazardous chemicals. Bulk liquid bags, designed to
carry specific commodities, can fit into these containers.
6. Hanger containers-:
They are used for the shipment of garments on hangers.

Custom House Agent:


Custom House Agent means a person licensed, temporarily or otherwise, under the
regulations made under sub-section (2) of section 146 of the Customs Act, 1962.
A person is permitted to operate as a customs house agent, temporarily under
regulation 8(1) and permanently under regulation 10, of the Customs House Agents
Licensing Regulations, 1984.
The services rendered by the custom house agent are not merely limited to the
clearing of the import and export consignment. The CHA also renders the service of
loading/unloading

of

import

or

export

goods

from/at

the

premises

of

the

exporter/importer, the packing, weighment, measurement of the export goods, the


transportation of the export goods to the customs station or the import goods from the
custom station to the importers premises, carrying out of various statutory and other
formalities such as payment of expenses on account of de-stuffing/ pelletisation
terminal handling, fumigation, drawback/ DEEC processing, survey /amendment fees,
dock fees, repairing and examination charges, landing and container charges, statutory
labour etc this expenses paid on behalf of importer and exporter. The CHA is
ordinarily reimbursed by the importer/ exporter for whom the above services are
rendered.

COMPANY PROFILE:-

All-Ways Logistics India Pvt. Ltd. an ISO 9001:2008 company was


established in January, 2008 by the group of logistics professionals who
has experience of more than 20 years.
All-Ways Logistics is also a member of World Cargo Alliance family
(IGLN) and their reach is global at all air ports / sea ports in the World
with their worldwide network of Agents / partners / Associates' offices.
Mr Deepak Gupta , CEO of All-Ways Logistics, is a fellow member of
the Institute of chartered accountant of India and worked at senior
management positions in various companies.
At present approx. 50 team members are working with All-Ways
Logistics who are also eager to provide the best services to their
customers for their all freight and logistics needs. The head office is in
New Delhi and Branch/associate offices are at Mumbai, Chennai,
Kolkata, Mundra, Kandla, Vizag, Haldia, Cochin, Bangalore, Hyderabad,
Agra, Jaipur, Ludhiana, Chandigarh, Dehradun, Kanpur, Ahmadabad,
Pune.

THE VISION:

To be a new logistics leader meeting the challenges of global trade.


To be a leading logistics global company offering one stop solutions of all logistics needs
at anywhere in the world.
Lead from front through high standard of quality services to all the customers and
associates worldwide.

THE MISSION:

To enhance the competitive edge by offering unique value added quality services with the
best practices of the industry.
To be innovative and continuously updating technological advances to ensure on real
time services to the customers and continuously strives for excellence.
To provide tailor made solutions to the customers according to their logistics
requirements time to time.

Major items handled by Shakti Forwarders are as follows:


Exports: sanitary ware, stainless steel utensils, readymade garments, soya, engineering goods,
sesame seeds, groundnuts, rice, textiles etc.
Imports: non ferrous and ferrous metal scrap, consumer goods, soap raw material, chemicals,
fabrics, capital goods, rubber products, dates, dry fruits, auto parts, furniture items etc.

Management Team:
Sr. No.
1
2
3
4

Director's Name
MR. DEEPAK KUMAR GUPTA
MR. MANURAJ GUPTA
MR. BALBIR SINGH RAWAT
MR. ASHISH CHAWLA

Head office of All-ways Logistics Pvt. Ltd.:KH-810, Mahipalpur,


Vasant Kunj Road,
Behind Apra Maruti Suzuki Show Room,
New Delhi-110037 (INDIA).

Registered office of All-ways Logistics Pvt. Ltd.:60, Savarkar Apartment


Plot No. 39, I.P. Extension
Patparganj, New Delhi-110092.

Designation
DIRECTOR
DIRECTOR
G.M.
G.M.(SALES)

Branch offices of All-ways Logistics Pvt. Ltd.:MUMBAI OPERATION OFFICE


707, Prabhat Centre Annexe
Plot no. 7, Sector 1A, CBD Belapur
Navi Mumbai-400614 (India)
Mumbai-400072

CHENNAI OFFICE
All-Ways Logistics India Pvt. Ltd.
No: 69, 5th floor, Leelavathi Building
Armenian St, Chennai - 600001(India)
BANGALORE OFFICE
All-Ways Logistics India Pvt. Ltd.
1112/584 A, MES Colony
Konena Aghara, HAL Post
Airport Exit Road
Bangalore 560017 (Karnataka)
HYDERABAD OFFICE
All-Ways Logistics India Pvt. Ltd.
2ND Floor, 128/2 RT
Water Tank Lane
Prakash Nagar , Begum Pet
Hyderabad 500016 (Andhra Pradesh)
COCHIN OFFICE
All-Ways Logistics India Pvt. Ltd.
37/201 4C , Plot No.47 , Jawahar Nagar
Kodvanthara , Kochi-682020 (Kerala)
GUJARAT (GANDHIDHAM) OFFICE
All-Ways Logistics India Pvt. Ltd.
Office No. 105, Plot No. 84, Mani Comlex

First Floor, Behind Madhuban Cinema Hall


Gandhidham, Kutch,Gujarat-370201