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SESSION 2015-16

It is the matter of great pleasure and privilege to be able to present this
project report on export procedure and documentation. The compilation of
the project is a milestone in the life of the management student and its
execution is inevitable with the co-operation of the project guide. I wish to
record a deep sense of respect and gratitude to my project guide, prof. Mona

for her encouragement to course of my work. It is due to the enduring effort

and guidance of my guide that ultimately made it success.
I also take this opportunity to express my deep regards and gratitude to the
principle Mr. Rajendra Rana and would like to thank the head of BBA
department. who gave us guidance to take up and pursue the project I cannot
just condone the valuable opportunity give to me by the university of for
compiling and submitting the project, which i feel is an opportunity to
express my views about export procedure and documentation.
I acknowledge my in deftness to various authors for making use of valuable
information liberally.
It is my proud privilege to express my deep sense of appreciation and
gratitude to my parents and friends for their support and co-operation in the
course of the project either directly or indirectly involved in time with their
valuable contribution.



I hereby declare that this training report on Import Procedure of Alex

Edutech Exporter submitted by me is of my own and not submitted to any
other institution or published any where else.


It is true that Experience is best teacher, in todays globalize world, where
cut throat competition is prevailing in the market, theoretical knowledge is
not sufficient. Beside this one need to have a practical knowledge, which
would help an individual in his/her career activities. In every professional
course, training is an important factor. Professor gives us theoretical
knowledge of various subjects in the college but we are practically exposed
of such subjects when we get the training in the organization. It is only the
training through which I come to know that what an industry is and how it
works. I can learn various marketing activities being performed in the
industry which would in return help me in the future when I will enter in the
practical field.

Generally, an import means bringing goods into one country from another
country in a legitimate manner, typically for use in trade. Import of goods
and services are provided to domestic consumers by foreign producers.
Import of commercial quantities of goods normally requires involvement of
the Customs authorities in both the country of import and the country of
As per the Customs Act, 1962, import means bringing goods into India from
a place outside India. The Foreign Trade Policy regulates import of goods.
For the purpose of import, goods have been divided into following

F r
eC e a
Gn a l
oi s e
dG s o

I m
p o
r t
R e s
ot r o i c
dt es d
o d s

P r o
h i b i
t e d
o d s

1. Prohibited Goods are not permitted to be imported at all.

2. Restricted Goods can be imported against a licence or subject to certain
3. Canalised Goods are permitted to be imported only through State
Trading Enterprises (STEs).
4. Free Goods are goods which can be imported without any licence or
An importer has to obtain an Importer-Exporter Code (IEC) Number from
the office of Director General of Foreign Trade (DGFT). The IEC number is
not necessary for import from Nepal or Bhutan. The importer can either
handle the clearance formalities himself or he can appoint an authorised
Customs House Agent, who is licensed by Customs for such work. For the
clearance of imported goods, importers are required to file a document
known as Bill of Entry under Section 46 of the Customs Act. The Bill of
Entry (B/E) can be filed manually, where EDI/Computer system is not in
operation. In most of the Customs Houses, it is filed, assessed and generated
through computers.
The documents generally required to be submitted for clearance of import
goods are Signed invoice, Packing list, Bill of Lading/Airway Bill,

Certificate of Origin, duly filled in GATT declaration form, Licence,





necessary, etc.
Some major/reputed importers or Government Undertakings have been
given the Green Channel facility, under which the goods are cleared without
routine examination of the goods.


Classes of officers of customs: There shall be the following classes of

officers of customs, namely: Chief Commissioner of Customs
Commissioner of Customs
Commissioner of Customs (Appeals)
Joint Commissioner of Customs
Deputy Commissioners of Customs
Assistant Commissioners of Customs
Such other class of officers of customs as may be appointed for the
purposes of this act.

IMPORT PRICING AND INCOTERMS :While finalizing the terms of import contract, the importer should be fully
conversant with the mode of pricing and the manner of payment for the
As regards mode of pricing, the overseas supplier should quote the terms
prevailing in international trade. The importer for his benefit should also
know the meaning of these terms to avoid ambiguity in interpretation of the
International Chamber of Commerce, Paris, has given detailed definition of
few standard terms popularly known as INCOTERMS and these terms
have universal acceptance.
Ex- Works (EXW): Ex-Works means that the sellers responsibility is to make the goods
available to the buyer at works or factory. The full cost and risk
involved in bringing the goods from this place to the desired
destination will be born by the buyer. This term thus represents the
minimum obligation for the seller. It is mostly used for sale of
plantation commodities such as tea, coffee and cocoa.
Free Carrier (FCA):-

Free Carrier means the sellers obligations are fulfilled when the
goods are delivered to the carrier named by the buyer at the named
place. The term may be used for all modes of transport including
multi- modal transport.
Free Alongside Ship (FAS): Once the goods have been placed alongside the ship, the sellers
obligations are fulfilled and the buyer notified. The buyer has to
contract with the sea carrier for the carriage of the goods to the
destination and ay the freight. The buyer has to bear all costs and risks
of loss or damage to the goods hereafter.
Free on Board (FOB): The sellers responsibility ends the moment the contracted goods pass
the ships rail at the port of shipment named in the sales contract. This
means that the buyer has to bear all costs and risk of loss of or damage
to the goods from that point. The seller is required to clear the goods
for export.

Cost and freight (CFR) : Cost and Freight means that the seller delivers, when the goods pass
the ships, rail in the port of shipment. The seller must on his own risk
contract for the carriage of the goods to the port of destination named
in the sale contract and pay the freight. This being a shipment
contract, the point of delivery is fixed to the ships rail and the risk of

loss or of damage to the goods is transferred from the seller to the

buyer at that very point. As will be seen though the seller bears the
cost of carriage to the named destination, the risk is already
transferred to the buyer at the port of shipment itself.
Cost Insurance Freight (CIF) : The term is basically the same as CFR, but with the addition that the
seller has to obtain insurance at his cost against the risks of loss or
damage to the goods during the carriage.
Carriage Paid to (CPT) : CPT means that the seller delivers the goods to the carrier
nominated by him but the seller must in addition pay the cost of
carriage necessary to bring the goods to the named destination. The
buyer bears all risks and any other costs after the point of delivery.
The seller is required to clear the goods for export.
Carriage and Insurance Paid to (CIP) : CIP is the same as CPT, with the addition that the seller is also
required to procure insurance against the buyers risk of loss of or
damage to the goods during the carriage.

Delivered at Frontier (DAF): The term is used when the goods are to be carried by rail or road. The
sellers obligations are fulfilled when the goods have arrived at the

frontier, but before the Custom Border of the country named in the
sales contract
Delivered Ex-Ship (DES):-.
This is an arrival contract and means that the seller makes the goods
available to the buyer in the ship at the name port of destination as per
sales contract. The seller has to bear the full cost and risk involved in
bringing the goods there. The sellers obligations fulfilled before the
Custom border of the foreign country and it is for the buyer to obtain
necessary import licence at his own risk and expense.
Delivered Ex-Quay (DEQ): Ex-Quay means that the seller makes the goods available to the buyer
at a named quay. As in the term Ex-Ship the points of division of
costs and risks coincide, but they have now been moved one step
further from the ship into the quay or wharf i.e. after crossing the
customs border at destination. Therefore, in addition to arranging for
carriage and paying freight and insurance the seller has to bear the
cost of discharging the goods on the quay. The buyer is required to
clear the goods for import and to pay for all formalities, duties, taxes
and other charges upon import.
Delivered Duty unpaid (DDU): DDU means that the seller delivers the goods to the buyers at the
port of destination. The seller has to bear the costs and risks involved

in bringing the goods thereto. The buyer has get the goods unloaded
and cleared for import, by paying the applicable duty.

Delivered Duty Paid (DDP): This term may be used irrespective of the type of transport involved
an denotes the sellers maximum obligations as opposed to ExWorks. The seller has not fulfilled his obligation till such time that
the goods are mad available at his risk and cost to the buyer at his
premises or any other named destination. In the latter case necessary
documents (e.g, transport documents or Warehouse Warrant )will have
to be made available to the buyer to enable to take delivery of the

BILL OF LADING AND TYPES:Bill of lading is a document issued by the shipping company for shipment of
goods. It is a contract between the shipper & shipping company for carriage
of goods in good condition from port of origin to port of destination.
It is a document required by consignee (Importer) to clear the goods at the
port of destination. Shipping company also issue non-negotiable i.e.(Unsign)
copies which are not document title to the goods but are normally use for
record purpose.

Legal Importance:It helps the shipping co to collect the freight from the shipper or the
importer. It acts as a safeguard in the interest of shipping co. against wrong
trends & disputes in court of law by the exporter / Importer.
If the goods have been damage prior to loading of goods on ship such things,
will be reflected in bill of lading.
Functions of Bill of Lading: It is the trial receipt for the goods received ( On the Board ) if ship. It
confirm that goods are transferred in the ship.
It is negotiable document to the bank. It is a document of exporter
title. It is an evidence of contract between shipping company and
exporter / Importer.



Established in 1980. We Alex Edutech Exporter and ISO 9001, 14001 and
18001 certified company. We Alex Edutech Exporter take pleasure to

introduce ourselves as one of the leading Manufacturer, Supplier and

Exporter of Educational Products, Medical Products, Healthcare Products,
Hospital, Agriculture, Food processing, Engineering & Electrical, Industrial
products and supplies, Construction materials and equipments , chemicals &
reagents for Laboratory , Industrial and research, Automobiles, Solar, I. C.
Engine test rig and Turbines, Engineering training and Microscope
equipments. The company specializes to customized products development.
Bulk quantity supply strictly as per schedule deadlines such as MOE, MOH,
IDA funded projects. In fact the company has many global projects and
tenders of World Bank ADB, UN, UNDB, UNICEF, UNESCO, WHO etc.,
to its credits, which were spread over different countries in the World.
We are supplying quality equipments like Petroleum testing equipments, Oil
Testing equipments and various scientific lab equipments.
We are completely dedicated towards the export, which is spread all over the
globe, with the major chunks of the export to USA, Middle East, Europe
(France, UK, Turkey Spain, Germany, Portugal etc. ), Africa ( Nigeria,
Ghana, Zambia, Kenya, etc, ), Asia ( Malaysia, Philippines, Vietnam, Etc. )
to name a few.
Alex Edutech Exporter - 95,000 varieties of latest testing Industrial,







Instruments. We have experience in these industries since 1972 managed for

3 generation. Alex Edutech Exporter is history of growth and development
with a number of notable milestones.
Alex Edutech Exporter is biggest manufacturer of Electronic Training Kits,
Higher Science Educational Instruments, Physics, Chemistry, Biology, Lab






Instruments, electrical Instruments, Mechanics Instruments, Vocational and

Training educational Instruments, Civil and Survey engineering Instruments,







Polytechnic and Educational instruments for School, Colleges and

Universities. Our prime targets our equipments for educational lab,
pharmaceuticals lab, medical lab, Universities lab.
We fellow a methodical approach for efficiently serving our clients with
flawless, durable and dimensionally accurate products. In addition, our
clients place their trust in our ability to customized and deliver bulk orders
within a committed time frame. Owing to our market credibility, financial
stability and material and human resources we have been successful in
grabbing some valuable international tender. In addition responsive
communication and easy banking facilities employed by us, have position
our organization futuristic establishment in India, USA, Mexico, Germany
Australia, New Zealand , Panama, France, Italy, Egypt, U. A. E. , Saudi
Arabia, Taiwan etc.
We are looking for global inquiry.


We specialize in manufacturing a wide assortment of lab apparatus, lab

glassware and scientific instruments. These products are precisely
engineered using modern production techniques and sophisticated
machinery. To make our laboratory equipment light in weight yet sturdy in

construction, we use borosilicate glass and laboratory plastic ware to

fabricate these products. The microscopes and lab instruments are
specifically manufactured as per international standards to produce precise
measurements. Our instruments and anatomical models find extensive usage
in chemistry lab, physics lab, biology labs, electronic labs and hospital/
medical labs. Among our range, we also offer accurately developed
laboratory physical balances and laboratory chemicals. Available in standard
specifications, these products can also be customized as per the requirements
of our clients.
With Regards

Our laboratory glassware and scientific instruments have been

acknowledged for the following features:

Light in weight

Heat resistant

Dimensionally accurate

Compact designs

Can withstand temperature and pressure fluctuations

Alex Edutech Exporter has successfully carved a niche in the global lab
instrumentation market since its establishment in the year 1980. Standing on
the edifice of quality and manufacturing expertise, we have become a

renowned name engaged in manufacturing and exporting quality tested and

reliable lab glassware, lab apparatus and scientific instruments. Our
assortment of lab apparatus includes Hospital Equipment, Laboratory
Balances, Laboratory Glassware, Physics Lab Apparatus, Laboratory
Chemicals, Physics Lab Equipment and Laboratory Research Equipment.
Further, we also supply Science Lab Apparatus, Biology Equipment,
Pharmacy Lab Equipment, Electronic Equipment, Laboratory Wares and
Microscopes to the global market. These precisely engineered products are
fabricated using resilient & light weight material and sophisticated
machinery as per international quality standards. Also, we have been
accredited with ISO 9001, 14001 and 18001 certification and are listed as an
international FDA (CDRH) site establishment.

We follow a methodical approach for efficiently serving our clients with

flawless, durable and dimensionally accurate products. In addition, our
clients have placed their trust in our ability to customize and deliver bulk
orders within a committed time frame. Owing to our market credibility,
financial stability and material & human resources, we have been successful
in grabbing some valuable international tenders. In addition, responsive
communications and easy banking facilities employed by us, have position
our organization as a futuristic establishment in India, USA, Mexico,
Germany, Australia, New Zealand, Panama, France, Philippines, Egypt,
U.A.E., Saudi Arabia and Taiwan etc.

Our organization has positioned itself strategically and promises to grow

further under the able guidance of our mentor Mr. Chander Mohan Kapila
His knowledge and understanding of the market dynamics has helped the
organization gain its present stature in the global market and muster a loyal
We are looking for foreign buyers for all our products.
Please find the attached company profile.
With Regards
Chander Mohan Kapila

We are Manufacturer and exporter quality tested and reliable Laboratory

Equipments, scientific instruments, Medical and Hospital equipments
educational equipments for physics, chemistry and Biology chemicals for
Lab research and for educational purpose, engineering instruments etc.












With Regards
Alex Edutech Exporter
# 4, Defence Colony, Sector - B
Near Govt. High School, Ambala, Haryana
Pin Code - 133 001, India.
Mobile +91 89011 44444
Phone No. +91 171 2671100
Email Id:
Skype: punit.kapila
Google talk -


Alex Edutech exporter is one of the leading science instruments

manufacturers and exporters of science equipments, laboratory
equipments, scientific products, scientific lab instruments like
autoclave, incubators and ovens, laminar air flow, moisture meters,













laboratory shaking machine, microtome, microscope, measuring

instruments and laboratory instruments.
These Scientific and Laboratory Equipments can be used in
general laboratory, sterilizing / clean room,

microbiology /

biotechnology, pathology, entomology, pharmaceuticals, seed and

soil testing, water testing, meteorology food processing, customized

Laboratory Glassware like beakers, burettes, condensers, cylinders,

culture tube, flasks conical, flasks round bottom, flasks flat bottom,
flasks volumetric, funnels, petri dish, pipettes, measuring cylinder,
kipps apparatus, funnels, volumetric flask , spirit lamp, beaker,
burettes, pipettes, joints, test tube, crucible, power supply, battery
eliminator, water bath, soxhlet apparatus, ammeter, voltmeter,
incubator, oven, muffle furnace, magnets, burners, boss head, retort
stand, stop clock, prism, lens, mirrors, magnifiers, tripod stand,
spatula, water tap, gas tap, crucible tong, distillation apparatus,
separating funnel, desiccators, gas jar.

Physics Instruments like induction coils, microtome spencer type,

tangent galvanometer, conductivity apparatus, physical balance,
weight boxes and accessories, optical bench, optics, heat lab
equipment, sound laboratory equipment, mechanics laboratory
instruments, magnetism, electricity, electronics, electrostatics

Chemistry lab instruments like lab balance, chemistry lab bottles,

laboratory brushes, chemistry lab burner, laboratory bunsen and
corks, Hoffmans voltameter, pipette test tube, tripod stand,
laboratory pumps, flame test apparatus, bell jars, tubing, balances
& weights, laboratory brushes, laboratory burners, laboratory
spatula, electro chemistry instruments, laboratory tongs.




manufacturer like










microtomes, baths and staining, slide cabinets.

If required we can send you our company Printed materials (CATALOGUES
etc). Please provide us your Address and all contract numbers.
We are to request you to please compare our services by favoring us your
fresh list of requirements.
I can assure you of our best supplies with competitive prices


To know about Importt Processes

To understand the working of various departments of ALEX
EDUTECH contributing towards processing of an import order
To know what are that documents required before and after sailing the
To know different type of container used in shipment
To study the Import Documentation in ALEX EDUTECH

Pre Shipment procedure.

Post Shipment procedure

Inquiry (By Importer)

Information as per Inquiry / Quotation (By Exporter)

Conformation / Purchase Order ( By Importer)

Exporter prepares documents and send Bill of Lading Through bank to the

Importer makes payment to the Exporter through Bank

Delivery Order & Documents is obtained by the Bank Or the agent of the

Importer handover the documents to CHA

On the basis of documents CHA files the, same for obtaining the Bill of

Meanwhile goods reach to the port of destination

Bill of Entry No. is received from the Custom House

Documents is forwarded to the appraising unit

Documents are forwarded to auditing department By the auditor

Documents is forwarded to Deputy Commissioner for final Assessment

TR6 Challan has to be collected

Goods to be produced for the Examination along with the Duty paid Challan

Out of charges has to be taken from the docks

N-Form is obtained if goods are to be take out without paying octroi

If not, then octroi is to be paid And paid CFS Charges / Warehouse charges

Relevant documents shown to preventive officer & The Cargo is taken out


As soon s the importers receive the advice of arrival of the vessel, he is
required to present a document known as Bill of Entry in terms of section 46
of the Customs Act, either for Home Consumption or for warehousing the
The Bill of Entry is noted in Import Department. The date of noting is
indicated on the Bill of Entry under corresponding endorsement made
against the consignment entry in the IGM. The date of noting is an important
date, for the reason that the rate for duty applicable to the goods imported
would be that which is in force on the date of noting. In case of warehoused
goods, the rate of Custom duty applicable would be that in force on the date
of payment of Custom duty.
Under the Second Check Clearance procedure,, The bill of Entry will be
presented in the Appraising Department at Custom House, with the relevant
documents like Invoice, Bill of Landing, Import licence, catalogue /
Literature & other relevant documents. Where the documents produced are
adequate for determining the classification, value & rate of Custom Duty, the
Bill of Entry is then Passed by the concerned Appraiser and the Assistant
Commissioner countersigns the same.

The passed Bill of Entry is then forwarded to the license Department for
licensing debit and audit and then returned back to the importers for
payments of duty in the Accounts / Cash department. After recovery of duty
the original Bill of Entry is retained in the Accounts Department and the
duplicate and other copies returned to the importers for getting the goods
examined in the docks.
In the docks, Shed Appraiser / Examiner the goods and if is in order then
will give the out of charge for taking delivery form the custodian of the
goods viz. Port Trust, after payment of the Port Trust charges. This
procedure under which 80 to 90% of the consignments are being cleared is
known as the Second Check Procedure.
Under the First Check Clearance Procedure, the concerned Custom
Appraiser at Custom Hose prior to passing of the Bill of Entry gives the
order to the port Supervisor to examine the imported goods. The goods are
then remarks on examination of goods to the Appraiser for passing &
charging the appropriate custom duty on the goods imported. In this case the
customs gives out of Charge only after payment of Custom duty by the
No person shall, except with the permission of the proper officer of Custom,
is allowed to open any package of goods imported into India and lying in a
Custom Area. The Examination of cargo for assessment purposes is chiefly
the function of the Appraising Department or their representative posted at
the docks / Air cargo shed.
The importer pays charges to freight forwarder for this work of
documentation, destuffing, and freight charges and stamp duty to shipping
line and collect the final delivery order.

Bill of Entry:- Section 46 of the Custom Act 1962:The bill of entry is the document on the strength of which clearance of
imported goods can be done. The form of the bill of entry has been
standardized by the Central Board of Excise and Custom. As soon s the
importer receives the advice of arrival of the vessel the importer are required
to present a document known as Bill of Entry, either for Home Consumption
or for warehousing the goods. The Bill of Entry is noted in the Import
The Bill of Entry should be type written.
Types of Bill of Entry: Goods Entered for Home Consumption are cleared on White Bill of
Entry (Form No.22)
Goods entered for warehousing are removed into bond on Yellow
colour In-Bond Bill of Entry. (Firm No.23)
Goods cleared Ex-Bond for Home Consumption on payment of duty
on Green Colour Ex-Bond Bill of Entry. (FormNo.24)
For preparing the Bill of Entry the documents that are required are as
follows: Bill of Entry for Home Consumption in the prescribed firm duly
Packing list
Bill of Lading / Airway Bill

Freight Bill (In Case Invoice shows F.O.B value)

Do (Delivery order)
Purchase order
Certificate of origin
License copy, Bond certificate (If Required)
IEC Copy
Declaration in the prescribed format signed by the importer regarding
the correctness of the contents and the value of the goods in
connection with the relevant documents. The Appraiser of Customs
may call for any other information / documents if found necessary, to
determine the exact value and exact rate of duty(Section 46 Custom
Act, 1962
CHA Declaration.
GOODS:Procedure to clear imported goods for home Consumption:A Bill of Entry for home consumption in quadruplicate duly filled and
signed by the importer / CHA and the same to be filed in the import
department of customs. The noting clerk in the import department assigns a
serial number and affixes the date stamp and initials on the bill of entry after
verifying the details with reference to the import general manifest. Than the
Bill of Entry is forwarded to the Appraiser/ Superintendent for Assessment.
After verifying the documents and bill of entry the appraiser may assess the
Bill of Entry under any one of the two different systems called as
First Appraisement

Second appraisement depending upon the circumstances. The

Assistant Commissioner of Customs countersigns on the Bill of Entry.
After examination of the goods and on payment of duty the goods are
cleared out of Customs charge for home Consumption.
Procedure followed under first appraisement / Original open order:The Bill of entry is forwarded to the appraiser / Superintendent after
noting is done by the import department if the appraiser for assessment feels
that the goods should be subjected for examination in the first stage itself to
decide the weight measurement / country of origin / correctness of value /
marks and numbers / classification of the goods under the Customs and
Central Excise Tariffs, he passes an examination order on the reverse of
original copy of the bill of entry. This is called original open order / first
appraisement subsequently the bill of entry with the original open order is
presented to the A.C.(Dock) for examination of the goods Examination is
carried out and a report is written by the proper officer as per the direction
specified in the original open order.
Then the bill of entry is forwarded to the assessing officer who
verifies the examination report with reference to he relevant documents and
bill of entry. After verifying the correctness of value and classification of
goods the assessing officer writes the rate of basic custom duty. Additional
duty etc, to be leviable by customs and signs the bill of entry. Than the
Assistant Commissioner places his counter signature on the bill of entry. The
value / quantity or both of the bill of entry is debited in the import license /
customs clearance permit wherever required. The comptist / computer
operator pinpoints the amount of duty on the bill of entry. The internal audit
department pre-audits the bill of entry.

The amount of duty shall be paid by the importer / CHA in the

customs treasury / authorize bank. The original copy of the bill of entry is
detached in the custom treasury. Clearance of goods for home consumption
are permitted by the proper officer of customs with his signature and stamp
on the revere of the duplicate copy of the bill of entry. This order is called as
passed out of custom charge The importer / CHA presents the duplicate
bill of entry to the custodian (Port / Airport / ICD ) who releases the goods
after collection necessary dues.
Procedure followed under second appraisement / Duplicate open order:The bill of entry is forwarded to the appraiser / superintendent after
noting is done by the import department. If the appraiser for assessment
feels that all the documents / information are available to determine the
correctness of value and classification under the Tariff, the assessing officer
makes assessment in the first stage itself and passes an examination order on
the reverse of the duplicate copy of the bill of entry. This may be called as
second appraisement duplicate open order. Than the Assistant Commissioner
place his counter signature on the bill of entry. The value quantity or both of
the bill of entry is debited in the import license / customs clearance permit
wherever required. The comptist / computer operator pinpoints the amount
of duty on the bill on entry. The internal audit department pre-audits the bill
of entry. The amount of duty shall be paid by the importer / CHA in the
custom treasury / authorized bank.

The original copy of bill of entry is detached in the customs treasury,

and the remaining copies are returned to the importer / CHA. Subsequently
the bill of entry with the duplicate open order and other documents are
presented to the proper officer for examination. Examination is carried out
and a report is written by the proper officer as per the directions specified in
the duplicate open order. If the examination officer satisfies that the goods so
imported are in par with the declaration in the documents, he gives and order
permitting clearance of goods for home consumption on the reverse of the
duplicate copy of the bill of entry. This order is called as passed out of
customs charges.

Procedure followed Examination of import cargo at Dock: Once Bill of Entry final assessment paid duty custom appointed
Authorized bank.
Made shipping line payment and collect final Do, without Bill of entry
and TR6 challan Shipping line unable to issue the Delivery order.
Paid stamp duty
Get cargo / container receiving from CFS on bill of entry back side.
Check container no and seal number as per shipping documents
Do the Bill of Entry registration from custom officer in custom
system(Before Bill of Entry registration Custom officer check all
document like B/L, Invoice, packing list, TR6 challan, certificate of
origin, Importer declaration along with Signature, CHA declaration.
Than after get seal cutting form CFS authority.

Check import cargo as per the invoice and packing list and tally with
Bill of entry before present to custom officer.
Custom officer do the examination as per declared in Bill of Entry
Custom officer fill the examination report in custom system and than
after issue out of charge.
After out of charge made the CFS payment, and get allow for empty
vehicles for container / cargo loading purpose.
Submit the Original Delivery order, CFS payment duplicate copy, Bill
of entry Xerox copy, Original Custodian out of charge copy to CFS
and get Gate Pass from CFS.
Done the Container / Cargo survey from surveyor, which is appointed
by shipping line.
Present the Gate pass and Original Gate Copy of out of charge to
Custom Preventive officer. Original Gate copy of out of charge
surrender to custom Preventive officer and get allow to move the
container / Cargo from CFS.
After out of charge getting below bill of entry copies: Original Duplicate Bill of Entry :- Consignee purpose
Original Triplicate Bill of Entry

:- Consignee purpose

Custom Copy

:- Handover original copy

along with

import documents to

custom at Dock.
Custodian copy

:- Handover original copy along with

Do, CFS Charges copy, Bill

of Entry, B/L.

Gate Copy

:- Handover original Gate copy

to Custom Preventive officer

at CFS Gate.

IMPORT DUTIES:The following are the Import duties, which are presently levied on
import goods.
1. Basic Import Duty:- Which is specified against each Heading or Subheading in the first Schedule to the CTA. This is popularly called
Basic Customs Duty. There are different rates of duty for different
commodities. There are also different rates of duty for goods imported
from certain countries in terms of bilateral or other agreements with
such countries, which are called preferential rates of duties. The duty
may be a percentage f the value of the goods (when it is called ad
valoerm duty) or at a specific rate
2. Additional duty:- This duty is collected by customs on the landed cost
(Value + Custom duty) of the imported goods at the rate equal to
ventral excise duty in order to protect / safe guard the indigenous /
local industries. The authority for collection of this duty is section 3 of
customs Tariff Act 1975. This duty is also called C.V.Duty
(Counterveling duty).
3. Special Additional Duty:- 4%

4. Anti Dumping duty:- On specified goods imported from specified

countries to protect indigenous industry from injury resulting from
dumping of goods.

DUTY STRUCTURE: Full duty Structure :Cumalative Total Duty Amount Calculations
On the Basis -Basic Customs Duty 10% with Revised
CVD 8% wef 24.02.09




Customs Assessable Value (CIF +Landing Charges)1



BCD -Basic Custom Duty




Education Cess duty on CVD -2%


Secondary & Hr Edu Cess 1% (Excise)


Education Cess 2% on B+C+D+E


Secondary & Hr Edu Cess 1% (Customs)

As per Customs Notification 19/2006,


Addl Duty 4% on A+B+C+D+E+F+G




HOW TO CALCULATE IMPORT DUTY:For Example: Invoice CIF Value :493.50 Euro
1% Landing Charges on CIF
1% SVB Loading On CIF
Unit price = 14.10
Duty Rate = 10%, 8%, 2%, 1%, 2%, 1%, 4%,
Calculation of duty :Assessable value=Unit 37 kgs x 14.10 unit price x 1% (Landing charges) x
1% (SVB Loading if applicable) x 71.80 (Exchange Rate). = 36141.966
A. Basic Duty 10% AV


3614.19 INR
B. CVD 8% on (AV + Basic Duty)
C. Education Cess 2% on CVD



D. Secondary Customs Education Cess on1% on CVD


31.80 INR
E. Custom Education Cess 2% on (A+B+C+D)


137.80 INR
F. Secondary Customs Education Cess 1% on(A+B+C+D) :-


G. Additional Duty (Import) 4% on (AV + A+B+C+D+F)


1729.55 INR
Total Duty :8826.34 INR
Short cut to duty calculation: Duty = Assessable value x 1% landing charges x 1 % SVB loading x
Exchange Rate x duty rate
Duty =493.50Euro x1% x 1% x 71.80 x 24.421%
Duty = 503.37 x 71.80 x 24.421%
Duty = 8826.34 INR

BILL OF ENTRY FOR BOND / WAREHOUSING:Import goods may be stored in a warehouse under section 49 or goods may
be Bonded in a warehouse under section 59 of the Custom Act, 1962.
Warehoused means a public warehouse appointed under section 57 or
Private warehouse licenced under section 58 of the Custom Act, 1962.

Warehouse goods means goods deposited in a warehouse. Warehousing

station mention a place declared as a warehousing station under section 9.
The goods may remain in the warehouse for a period of one year from the
date of passing order by the proper officer of customs. The period of one
year may however, be reduced by the Commissioner of Custom if the goods
likely to deteriorate. The period of one year may be extended by the
Commissioner of Custom / Chief Commissioner / the Central Board of
Excise and Custom if the goods are not likely to deteriorate and on sufficient
cause being shown for such extension. The importer, however has to pay
interest on the amount of appropriate duty payable at the time of clearance of
the goods for home consumption from the warehouse for the extended
period, i.e. from the date of expiry of the initial period till the date of actual
removal of the goods from the warehouse.
There are two type of warehouse.
Public Warehouse
Privet Warehouse
Public Warehouse: - Under section 57
At any warehousing station the Assistant Commissioner of Customs
may appoint public warehouses. Where in dutiable goods may be deposited
without payment of duty. Any imported dutiable goods may be deposited in
a Public Warehouse. For this purpose the importer has to execute a double
duty bond which means twice the amount of duty payable on such goods
deposited in the warehouse.
For warehousing the goods there is a Into-Bond Bill of Bill of yellow
colour to be filed long with a double duty bond as stated above together
with documents such as invoice, bill of lading / Air way bill, freight and

insurance certificate, contract, L/C, import licence etc. and importers

declaration related to correctness of value and contents in the consignment
and other documents if any to be filed in Custom house. The same procedure
to be followed as in the case of Bill of Entry for home consumption. After
assessment is done, the proper officer examines the goods and issues an
order permitting to deposit the goods in the warehouse without payment of

INLAND CONTAINER DEPOT:Inland container depot have been set up in many major cities where there is
no sea port facility. The objective of I.C.Ds is to cater the needs of
surrounding importers and exporters of the respective city. The I.C.Ds
possess ware housing facility to station various types of containers for
stuffing of export cargo and de-stuffing of import cargo in the presence of
custom officials for examination, assessment, clearance etc. Most of the
I.C.Ds are located near the railway stations for rapid movement connecting
to adjacent port. Due to global liberalization, containerization of cargo has
become a must to achieve the full benefits. Hence the container should

move from the exporters factory premises to the importers factory premises
or vice versa or in close proximity to import industrial stations, so that the
importer / exporter can save time and expenditure and also ensure safety of
the goods. To begin with the Government of India appointed suitable
industrial stations as Inland Container Depots for unloading of imported
goods and loading of export goods by issuing notification under section 7AA
of the Custom Act 1962. Correspondingly, the Commissioner of Customs
having jurisdiction over the place approves places in the I.C.D for loading
and unloading of goods and the limits of customs area where the custom
officers and staff shall function by issuing a notification under section 8 of
custom act 1962.
Transhipment of containerized cargo from the ports to destination to
I.C.D is done by the steamer agents after customs permission. No extra duty
is charged on the freight from harbour to I.C.D. Steamer agents are liable to
pay fine equal to duty on short landing / Pilferage/ Damage under section
116 of Custom Act 1962 to ensure safety avoid demurrage and to relieve
The Container Corporation of India generally arrange container
movements either by rail or road. If the importer intends to import the goods
at a particular ICD he should inform well in advance to his foreign supplier
so that the containers are manifested to the particular ICD . When such
containers are landed in a sea port the steamer agent arranges through
Container Corporation of India or any other authorized agency to transport
to that particular ICD. The ICD receives the containers and shifts to CFS to
enable the importer to file the bill of entry and other documents as they do in
the case of clearance through Sea ports or Airport .

Chapter 5
This study found a higher number of documents involved in the
This study also found the costs to be marginally lower than those
long term relationships with the buyers/sellers, which results in time
and cost savings.
Furthermore, the use of freight forwarders and customs brokers, who
are very familiar with the various processes and customs officials,
reduces the time required to complete the import and export

Chapter 6

Not exact tool for forecasting

Erroneous findingsLimitation of time
Narrow conception of marketing research
In experience research staff
Not an exact science

Chapter 7
The objective of the current study was to examine, in detail, the processes
involved in the import of goods. By employing the Business Process
Analysis (BPA) methodology, this study was able to trace all the steps and
procedures involved in the import processes and consider the time and cost
involved in each step.
A BPA is carried out using a case study approach, which allows for an indepth analysis of the process and challenges faced by firms behind the
border. In this way, the researcher is able to follow goods and documents
from one stakeholder to another, i.e. from the warehouse of the exporter to
the warehouse of the exporter. On completion of he mapping of the trade
process, one is then able to identify areas where bottlenecks and duplication
occur and propose possible solutions

Chapter 8
1. Balagopal T.A.S, Export Management, Himalaya Publishing House,
nineteenth edition 2010
2. Jeevanandam.C., Foreign Exchange- practice, concepts and control,
Sultan Chand and Sons, tenth edition 2007
4. Mahajan M.I., A guide on export policy, procedure and documentation,
Tata McGraw hill publishing company ltd, Third Edition 2005
5. Dr.Varma.M.M. & Aggarwal R.K, Foreign Trade Management, King
Book, second edition