PROJECT REPORT

A STUDY ON EXPORT PROCEDURE AT GAC (INDIA) SHIPPING PVT.LTD

DEPARTMENT OF MASTER OF BUSINESS

ADMINISTRATION
SANKARA COLLEGE OF SCIENCE AND COMMERCE
SARAVANAMPATTI, COIMBATORE-641035

UNDER THE SUPERVISION OF SUBMITTED BY

Dr SATHEESH KUMAR FAHAD T.P
FACULTY AT SIMS REG NO: 1635F0050
COIMBATORE
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 DECLARATION

I hereby declare that this project report titled “A STUDY ON EXPORT

PROCEDURE AT GAC SHIPPING (INDIAN) PVT.LTD” is
submitted to the department of Sankara Institute of management and
science (Bharathiyar University).This is a record of original work done
by FAHAD T.P under the guidance of DR Satheeshkumar, Sankara
Institute Of Management And Science Coimbatore.

The Information and data given in this report is authentic to the best of
my knowledge.

FAHADT.P

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 ACKNOWLEDGEMENT

I have immense pleasure in successful completion of my work titled

“A STUDY ON EXPORT PROCEDURES AT GAC SHIPPING
PVT.LTD”. The special environment at GAC Shipping (India)
PVT.LTD wellington island that always support educational activities,
facilitated my work on the project .
I greatly appreciate the motivation and understanding extends for the
project work by Shri. John Gorge Asst manager, GAC SHIPPING
(INDIA) PVT.LTD who responded promptly enthusiastically to my
request for frank comments, despite their congested schedule. I also
wish to who rendered their help during the period of my project work.
Am indebted all of them, who did their best to bring improvement
through their suggestion.
I acknowledge the support and the encouragement extents for this study
by ref DR Roy Mathews, DR Satheeshkumar, faculty of SIMS
Coimbatore with their help and support I have been able to complete this
work comfortable.

SATHEESH KUMAR FAHAD TP

FACULTY AT SIMS REG NO:1635F0050
COIMBATORE

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 TABLE OF CONTENTS

SL NO TITLE PAGE NO
1 ABSTRACT 5
INTRODUCTION 7
2.1 Objectives 9
2.2 Scope and limitation 9
2
2.3 Industry profile 10
2.4 Company profile 18

31
3 RESEARCH METHODOLOGY

32
4 REVIEW OF LITERATURE

68
5 FINDINGS & SUGGESTIONS

CONCLUSION 69
6

70
7 REFERENCES

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 ABSTRACT

In accordance with international practice, all cargo goods imported into

the country or Exported out of the country by sea, air, land or rail routes
are governed by the provision of the custom Act, 1962 and other laws of
the country related to entry/ exit from the country. Customs ensure that
the import and export of goods are in compliance with the custom Act
and other laws in force. Accordingly, customs procedures are intended
to provide definite, Predictable methods by which the goods can enter
the country and get cleared on payment of applicable import duties,
fulfilling the requirements of the law.
CFS is a place where containers are stuffed, de-stuffed and aggregation/
segregation of export/ import cargo take place. With the growing volume
of international trade, the need for expeditious clearance of goods at the
port within the minimum possible time has been gaining importance.
This is more so when the ports are facing congestion at their premises.
Further, for optimal utilization of existing Infrastructure, space,
equipment, goods that are landed at ports need to be evacuated straight
away without any loss of time. Accordingly the concept of Container
Freight Stations (CFS) has grown in importance along with the
development and growth of ports.
To regulate and to exercise effective control over import and export
activities, goods are allowed for import/ export at notified places under
section 7 of the Customs Act, 1962. Custodians are appointed under
section 45 of the Customs Act, 1962 for safe storage of goods till they
are cleared for home consumption or warehoused. Clearance of goods
involves classification, assessment, examination and payment of
Customs duty on imported cargo on the basis of Bill of Entry presented

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by the importer or his authorized agent. The Central Board of Excise and
Customs (CBEC) have prescribed the procedures through notifications,
rules, regulations and circulars which are implemented by field
formations. These are updated and modified according to the need,
demands of trade and to improve the efficiency of the system.

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 INTRODUCTION

The council of logistic management defines logistics as “that part of

supply chain process that plans, implements, and controls the efficient,
effective, forward and reverse flow and storage of goods, services, and
related information between the point of origin and the point of
consumption in order to meet customer requirement”. In ordinary
language the same can be defined as right product, at the right place, in
right time, and in right condition. However supply chain

k.consists of all stages that are required to satisfy the customer request.
It starts from supplier passes through manufacturer, distribution, retailer
and finally reaches the customer.

The supply chain management is the oversight of materials, information

and finances as they move in the process from supplier to manufacturer
to wholesaler to retailer to customer. The emerging new technologies are
creating strategic opportunities for the organizations to build competitive
advantages in various functional areas of management including
logistics and supply chain management. However the degree of success
depends on the selection of the right technology for the application,

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availability of proper organizational infrastructure, culture and
management policies.

In logistics, information, communication and automation technologies

has substantially increased speed of identification, data gathering,
processing, analysis and transmission, with high level of accuracy and
reliability. Technology is a means to enhance business competitiveness
and performance. It plays a major role in success of supply chain by
enhancing the overall effectiveness and efficiency of the logistics
system. In logistics many new technologies are used in developed
country while in India adoption process is very slow.

However due to liberalization of the Indian economy the competitive

pressure is building up and the only option to face the competition in to
go in for technology enabled operations.

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Objective of Study

 To understand the export and import procedure being followed in

falcon Container Freight station.
 To understand the need and importance of documentation in
Export and Import
 To study the different documents used in Export, Import
transactions

Scope and Limitations of the Study

 How to improve documentation process.

 Better use of new technology in documentation process
 Lack of primary data
 In-Experienced research staff

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INDUSTRY PROFILE

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SHIPPING INDUSTRY
Shipping industry is the industry devoted to moving goods or passengers
by water. It is the most environmentally friendly form of transport.
Passenger operations have been a major component of shipping, but air
travel has seriously limited this aspect of the industry. The enormous
increase, however, in certain kinds of cargo, for example, petroleum, has
more than made up for the loss of passenger traffic. Although raw
materials such as minerals such as mineral ores, coal, lumber and other
food stuffs supply a vast and still growing volume of cargo, the
transportation of manufactured goods has increased rapidly since world
war II.
NATURE OF SHIPPING INDUSTRY
Shipping is a private, highly competitive service industry. The shipping
industry is divided into several categories liner service, tramp shipping,
industrial service, and tanker operations all of which operate on well
established routes.
LINER SERVICE
Liner service consists of regularly scheduled shipping operations and
fixed routes. Cargos are accepted under a bill of lading contract issued
by the ship operator to the shipper.
Competition in liner service is regulated generally by agreements,
known as conferences, among the ship-owners. These conferences
stabilize conditions of competition and set passenger fares of freight
rates for all members of the conferences. In the U.S, steam ship
conferences are supervised by the Federal Maritime Commission in
accordance with the shipping Act 1916. Rate changes, modifications of
agreements, and other joint activities must be approved by the

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commission before they are effective. Measures designed to eliminate or
prevent competition are prohibited by law.
TRAMP SHIPPING
Tramps, known also as general-service ships, maintain neither regular
routes nor regular service. Usually tramps carry shipload lots of the
same commodity for a single shipper. Such cargoes generally consists
of bulk raw or low- value materials, such as grain, ore or coal, for which
inexpensive transportation is required. About 30% of U.S. foreign
commerce is carried in tramps. The carrying capacity of a typical,
modern, well – designed tramps. The carrying capacity of a typical
modern, well designed tramps ship is about 12000 dwt and its speed is
about 15 knots. The recent trend is toward tramps of 30000 dwt, without
much increase in speed.
INDUSTRIAL CAREERS
Industrial careers are vessels operated by large corporations to provide
transportation essential to the processes of manufacture and distribution.
These vessels are run to ports and on schedules determined by the
specific needs of the owners. The ships may belong to the corporations
or may be chartered. For example the Bethlehem steel Corp. maintains a
fleet of Great Lakes ore carriers, a number of specialized ships that
transports steel products from Baltimore to the Pacific coast. Many oil
companies maintain large fleets of deep-sea tankers, towboats, and river
barges to carry petroleum to and from refineries.
TANKER OPERATION
All tankers are private or contract carriers. In the 1970s some 34% of the
world tanker fleet, which aggregates about 200 million dwt, was owned
by oil companies the remaining tonnage belonged to independent ship-

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owned who chartered their vessels to the oil companies. So-called
supertankers, which exceed 100,000 dwt, are employed to transport
crude petroleum from the oil field to refineries. The refined products,
such as gasoline, kerosene, and lubricating oil, are distributed by smaller
tankers, generally less than 30,000 dwt, and by barges.
THE INTERNATIONAL SHIPPING INDUSTRY
Shipping is a truly global community. It is intrinsically international;
indeed it was the first global industry. This industry is transporting 90%
of the world’s trade. Most ship move from country t country as part of
their normal trading pattern and its prospects are closely tied to the level
of economic activity in the world. A higher level of economic growth
would generally lead to higher demand for industrial raw material,
which in turn will boost imports and export. The shipping market is
cyclical in nature and freight rates generally tend to be volatile. Being a
global industry, it is affected by a whole gamut of factors which range
from world economic condition, political events, natural disasters to age
of existing vessels, new vessels, new vessel delivery schedules,
availability of ship building slots with ship yards, government
regulations etc. besides being characterized by choppy revenue stream,
the shipping industry is also highly capital intensive. A single ship can
cost anything between US $20 Mn to US $300 Mn. Commoditized
product coupled with the fact that globally there are a large number of
players in this segment; no single company has significant pricing
power.
Classification by size and segment
The global shipping industry can be broadly classified into wet bulk
(like crude and petroleum product), dry bulk (lie iron ore and coal) and
liners. Under liners it has containers, MPP and Ro-Ros types of vessels.

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There are various benchmarks that determine freight rates for these
segments. The prominent amongst them are Baltic freight index, Baltic
Handymax Index (for dry bulk segments) and world scale ( for tankers).
The total world shipping tonnage consist of 642.67 Mn GT,[Dry bulk
(27.75%), wet bulk (27.25%), containership (14.98%),
LNG/LPG(4.19%),OTHERS (25.94%)]. The average age of the world
fleet is around 18 years. The Greeks are the world’s largest ship owners,
owning 16% of the global fleet. Japan and south Korea are the leading
ship builders, with 40% and 29% respectively of the total completed
gross tonnage.
The internationally accepted size classification of ships, along with the
cargo capacity, is given below in terms of the dead weight tonnage (dwt-
a unit of carrying capacity including cargo, fuel oil, stores, crew and
passengers, usually measured in long tones of 2,240 pounds or metrics
tones of 2,204.6 pounds (1,000 kilograms ).
Tankers;

Aframax 80,000 to 110,000 dwt

Suezmax 130,000 to 160,000 dwt

VLCC(very large crude carriers) 250,000 to 300,000 dwt

ULCC(ultra large crude Over 300,000 dwt

carriers)

Dry bulk carrier ;

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These ships carry ores, coal, grain, fertilizers, etc. they include

Handysize 20,000 to 30,000 dwt

Handymax 35,000 to 45,000 dwt

Panamax 60,000 to 70,000 dwt

Capesize Over 90,000 dwt

In the general cargo categories, container vessels dominate the trade,

with more than 65% of the cargo being containerized. Combination
carriers carry steel product, cement, non-ferrous metals, sugar, salt, etc.
International Players
DP World
Maersk
PSA
THE INDIAN SHIPPING INDUSTRY

Indian shipping industry is governed by the ministry of shipping. The

industry consist of about 616 ships, with a total capacity of 8.57 million
tones gross registered tonnage (GRT) [Dry bulk(30.60%), wet
bulk(55.70%),LPG carriers (3.30%),
containerships(1.10%),others(9.30%)]. Of these, about 258 ships are
engaged in overseas trade and the rest ply inland routed. The average
age of the Indian shipping fleet is around 18.9 years. After a period of
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decline, both tonnage and fleet size have grown recently, with the
addition of ships tugs, survey vessels, towing vessels as well as pilot
vessels- belonging to ports and maritime boards.
India has 55 shipping companies, of which 19 deal exclusively in coastal
trade, and 29 are engaged in overseas trade, while the remaining are in
both. A few major players dominate the Indian shipping sector.
MAJOR PLAYERS

 Shipping corporation of India

 Great Eastern Shipping Company Ltd
 Essar Shipping Ltd
 Varunshippinf Ltd
While state – owned Shipping Corporation of India (SCI) and the private
sector Great Eastern Shipping have mixed fleets. Essar Shipping focuses
on the energy trade and mainly operates tankers. Chowgule Steamship
Ltd. And varun Shipping are two other large companies in the sector.
Varun Shipping operates mainly in wet, dry, gas and chemical transport
sectors and Chowgule moves bulk cargoes like iron ore, grain, coal,
fertilizers etc.

Particulars No. of vessels Tonnage capacity

(mn tones)

Shipping corporation of 117 5

India

Great Eastern Shipping 64 1.59

company Ltd

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Essar Shipping Ltd 39 1.5

Varun shipping Ltd 13 0.28

Shipping companies have a high dependence on international trade ,

with close to 95% of overseas trade by volume and 77% by value
moving by sea ,crude oil and oil products, iron ore ,coal grain and steel
being some of the major products transported.

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COMPANY PROFILE

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ABOUT GAC
Bank by nearly 50 year of experience, the GAC group has grown from
regional players to become a truly global shipping, logistics and marine
service provider with 200 offices worldwide. Established in 1956,
GAC’s core business cover these key areas shipping , single experienced
source for all shipping and transport requirement from traditional
shipping agency services to supply chain management to offshore
support. GAC employs more than 5000 people worldwide. The GAC’s
group head offices are located in Houston, Cairo, Dubai and Singapore.
The GAC brand reflects value for money, quality, continuity, innovation
and global reach.
The GAC Group is committed to ensuring customer’s need for quality
shipping, logistics and marine services are understood and met. And
with over 9000 professionals working around the clock at more than 100
languages, at more than 200 offices in over 40 countries, GAC deliver
on that promise.
Since the first GAC operation was set up in Kuwait by Swedish
entrepreneur BengtLindwall in 1956, the GAC’s global provider of
integrated shipping, logistics, marine and related services we are today.
GAC’s globalization strategy is to use steady and consistent
geographical expansion, achieved through organic/opportunistic growth,
joint ventures, partnerships and acquisitions. GAC is local in action and
global in attitude.
The value of human dignity is one of the corner stones of GAC’s
operating philosophy. They value long-term relationships with business
partners, customers, suppliers and their own staff, GAC works
exclusively with like-minded moving companies around the world that
are firmly established and committed to providing quality moving

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services. Their global network comprises over 300 carefully selected
partner agents in most major cities.
All their agents’ performances are measured on an ongoing basis to
ensure that everything goes smoothly and that your belongings are
handled professionally from start to finish.
Shipping was GAC’s first business unit, dating back to when the office
opened in Kuwait, to provide lightering and ship agency services in
1956. Today, GAC shipping is one of the world’s biggest providers of
services to ship owners and operators. GAC’s logistics operations from
their forwarding, warehousing and distribution operations in Dubai.
Today, GAC logistics has grown in to global network providing a rich
array of general and specialist logistics services.
GAC marine operation center’s around our modern and expanding fleet
of supply craft and barges that provide vital support for offshore
exploration, construction and production, heavy lift cargo towage, etc.
GAC marine operates in key locations in the Middle East Gulf, West
Africa and Caspian Sea.
GAC take full advantages of the diversity of their portfolio of services,
their worldwide infrastructure, resource and expertise to deliver
integrated solutions that result in time and cost efficiency. Sectors such
as oil and gas industry, in particular, benefits from GAC’s unique ability
to offer a tailor-made services include cruise, dry bulk, automotive,
FMCG, retail, technology, healthcare, sports, entertainment/event,
projects, offshore, etc.

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GAC Corporate Ethics
1. The GAC Group respects and abides by the laws of the countries in
which it operates and all relevant supranational laws and
regulations, further, GAC peopleconduct their business in full
understanding of, and in compliance with, GAC Group policies
including those covering corruption, bribery, money laundering,
whistle blowing and trade sanctions.
2. The GAC Group respects the rights and cultural practices of people
in the countries in which it operates. The GAC group values highly
the cultural diversity of all who undertake work for GAC and
nurtures their willingness and capacity to work together to achieve
common goals.
3. GAC employees ensure that workplace health and safety standards
and practices are given priority and extend to all who undertake
work for GAC.
4. GAC managers support the honest efforts of all staff to improve
themselves and make provision for training and professional
development to ensure staffs are appropriately equipped for the job
they are required to do on behalf of customers.
5. GAC mangers recognize that all who undertake work for GAC are
connected to families and that the well-being of the family has an
impact on their ability to work effectively.

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The GAC spirit’s Main Elements Are:
1. Two-way loyalty of staff to management and management to staff.
2. Commitment to quality service and a willingness to go the extra
mile.
3. Valuing of people: demonstrating, care for the interests of
customers and all who do work for GAC.
4. Building enduring relationship with customers and suppliers
through long-term commitments and face-to-face contacts.
5. Honesty in communication with customers and all who do work
for GAC.
6. Compliance with all relevant laws, regulation and internal GAC
group policies.
GAC Quality objectives
All GAC companies will establish quality objective and monitor,
measure and analyses their effectiveness. They are now activity working
towards full implementation of ISO 9002:2000 standards. It also
involves continuous improvement and development of their services.
Through the GAC Quality management System, they control their
performance to ensure continuous improvement in their service quality
level. The quality objectives should reflect the company in general as
well as the respective departments, and should as a minimum reflect the
below:

 Establish a process to ensure that business is conducted according

to local laws and regulations.
 Establish a process where the customer requirements and needs
are clearly defined to ensure that desired customers are not lost.

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  Have quality standards regarding service levels and lead-times
that are measure and followed up regularly for continual
improvement.
 Establish a process to identify and increases employee job
satisfaction and competence.

GAC’S VISION AND MISSION

VISION
To provide leadership and innovation in global business and community
life by delivering a flexible portfolio of services built on quality, safety,
honesty, vigor and a commitment to long term business relationship.
MISSION
GAC is a worldwide service provider dedicated to building long-term
relationships with customers, staff and suppliers. We are committed to
delivering integrated services to the shipping, logistics, marine and
related markets at the highest levels of quality and safety.
GAC SHIPPING
GAC shipping leading provider of global and hub agency services. In
addition to ship agency, GAC shipping offer an extensive range of
specialized services such as ship supplier, Global Hub Agency and canal
Transit. GAC Shipping also acts as correspondents for most
international groups. GAC shipping today represent the internet of more
than 3500 principles worldwide and attends to over 26000 vessels
annually, of which one-third are regular line and dry cargo vessels, while
two-third are tankers.

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GAC LOGISTICS
The more global the company, the more critical and complex the
logistical challenge. GAC stands out from the field of purely the
logistical players, with its complete range of logistics capabilities,
combined with expertise in shipping agency and offshore marine
services. GAC logistics core services include air and sea freight,
warehousing and distribution, door- to- door transportation, project
logistics, international moving, ship spares logistics and courier services.
International manufacturer’s distributors and retails of everything from
automotive to health care, fashion and consumer goods regularly turn to
GAC to meet their diverse yet unique logistics requirement. An
intergraded worldwide network of offices and partners offer customer
the efficiency and convenience of a non-stop shop GAC logistics strong
relationship with major carrier, supplier and custom authorities help
expedite freight shipment at competitive rates. Strict compliance with
highest security standards ensure a secure and reliable supply chain
giving customers the extra peace of mind.
GAC LOGISTICS SERVICES
Freight Services
Sea freight
GAC has contracts in place with many of the world’s major ocean
carriers in the key trades to/from Asia, USA, Middle East, Europe and
Africa. GAC meet all international security standards and is a registered
member of governing commission in all end user markets. LCL sea
freight consolidations are also available.

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Air Freight
GAC global air freight capability delivers cargo to all cities, countries
and continents. Global partnerships with major air carriers give
customers priority access to competitive rate and space allocations.
Collection at origin, customs clearance and delivery to consignee are
monitored via our global tracking system, GAC freight, giving complete
visibility throughout the movement.

SEA/AIR FREIGHT
A pioneer or the Sea-Air Freight concept, GAC delivers a significant
cost advantage to customers, particularly those operating with low
inventories in fast moving industries such as electronics, fashion and
footwear.
Our Sea-Air trade lane link Asia, Europe and the United States with our
specialized Sea/Air service. Our leading processes and procedures
ensure we expedite transfer through GAC’s airport hubs in Dubai and
Singapore, delivering shippers significant savings of up to one third on
“all air” cost and 40% on “all sea” transits times.
Land transportation
GAC offers a diverse range of transportation services from project cargo
to international transportation and domestic retail distribution and
delivery. Our vehicles are operating in over 50 countries world wide
under our own banner or our clients livery.
Clearing and forwarding
C&F is concerned with the inspection of the cargo like packing, stuffing
to ensure that the goods are according to the requirement of order with
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the documents prepared and assist in the clearance of the goods after
customs formalities and forward it according to the requirements. They
have regular contact with the companies and agents thus they have an
important role in space booking in the required vessel.
Freight Forwarding
Freight forwarding deals with the movement of good down the dock
and to the dock. It ensure safe loading, arranging customs clearance and
providing documentations to and from the sea carrier. The shipping
company usually pays the freight forwarders commission.
Full container load shipments
After export packing has been completed, your shipment will be loaded
into a steel shipping container which will carry only your goods. Where
access allows, it will be loaded and closed at your residence before being
return to the port of exit for loading on the next available vessel to your
country.
Less than container load shipments
This method is used for sea freight shipment where a full container
would not be cost effective. Your good will be loaded into a proper good
wooden shipping case at our warehouse. This will then be loaded inside
a steel shipping container and sent to your final destination.
Groupage shipment
Several shipments to a common destination or consolidated at our
warehouse on Dubai prior to being loaded into a shipping container. If
you have moving and delivery dates are flexible and you have a fairly
small shipment, then the service will be more cost effective compare the
normal way of selling household goods.

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Door to Door Insurance
GAC offers comprehensive insurance for your move. Insuring your
shipments is highly recommended as your good may transported through
different climates across the world.
Secure Shortage
Choosing the best location for storage of your household good is so
important. You can rest assured with GAC, as our all our warehousing
facility meet the highest security and infrastructure standards and are
manned by trained personnel.
Contract Logistics
GAC offer customized service packages with end-to-end services for all
clients. Through providing shared resources and centralized
warehousing, they enable to reduce our capital investment, allowing
flexible responses to market demand.in most market, GAC’s
specialization in multi user operations, has resulted in economies of
scale. This has enabled as to offer high quality infrastructure and service
at competitive rates. saving can also be made by co-coordinating
production runs with no under or over-stocking of inventory
The system is scalable and can be used from a small warehouse to large
retail customer with ease. The in-house knowledge base makes
understanding customer requirements and interfacing easy.
Project logistics
GAC supports major project undertakings by combining your shipping,
logistics and marine divisions, providing services that include:

27
  Site survey/feasibility studies(routes, weather, political climate)
 Full/part charter practice(air charters, time/voyage charters)
 Multi-model transport(rail, tug & barge, heavy lift)
 Special equipment transport(flat racks, open tops, platform, tween
deck solutions)
 Fright negotiation(COA negotiation, long term rate validities)
 Administrative support(customs clearance, trade documentation)
 In house flexible IT solutions and tracking and tracing
Ship spare logistics
When a breakdown means a vessel needs a spare part in a hurry, it
makes a difference to deal with an organization with expertise in both
shipping and logistics. Equally, having an efficient supply chain for
routine maintenance spares and equipment is essential. GAC Marine
Logistics(GML) offers ship owners and management companies a global
“door-to-deck” delivery services for ship spares and marine parts. This
specialized supply chain management services integrates the group’s
global infrastructure and expertise in freight forwarding, warehousing,
supply chain management, ship agency, ship supply and marine and
offshore supports. GML chooses transport modes to match customer’s
timing and cost concerns and takes responsibility for the entire supply
chain.
Their offices in Dubai, Singapore, Rotterdam, Hamburg, Piraeus,
London, Istanbul, Houston and Sao Paulo coordinate operations to more
than 1000 locations worldwide. Customers can monitor the progress of
their orders via our web tracking system

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International moving
For more than 30 years, GAC has been moving household goods and
offices in and out of the Middle East, and we have since extended the
specialized service to the Indian Subcontinent.
We provide comprehensive door-to-door services for any relocation
need. Moves are professionally planned, starting with a free initial
survey and recommendations on the most efficient shipment mode and
insurance option to all necessary services including exports packing,
forwarding and secure storage.
Supply chain management
Global supply chain management is a critical success factor for
manufactures and retailer in many industries. You can take advantage of
the integrated suite of services offered by GAC to manage your supply
chain. From raw materials to retail distribution, our analysts and
operations personals work closely with customer to manage the entire
supply chain, providing tailored services and meeting agreed
performance benchmark.
Warehousing & distribution
GAC offers warehousing and distribution services in the Americas,
Europe, Africa, the middle East, India subcontinent and Asia serving
diverse sector, we operate a varied range of facilities in different
locations depending on the market Requirements. this include setting up
high quality infrastructure in many developing markets where there is a
shortage of good quality facilities. many developing markets where there
is a shortage of good quality facilities. Their aim is to create a platform
for customers to have clean, safe and secured warehousing environment

29
with specific focus on hygiene and health, safety, security and the
environment (HSSE).
Their facilities amount to more than 250000 square meters of premium
multi-temperature storage with web-enabled inventory tracking and
storage for standard pallet, shelved, hanging garment and bulk
commodities .GAC also provide all necessary value added services to
customers from under the same roof such as sticking, co-packing,
warranty card insertions, quality control, batching and sequencing, to
name a few.
GAC’s extensive experience range over many products and industries,
including:

 Apparel
 FMCG(fast moving consumer goods)
 Pharmaceutical
 Electronic
 Retails
 Spare parts
 Oil & gas
Their warehousing infrastructures are backed by fully fledged logistics
and distribution capabilities to facilitate local, regional or international
distribution. Across our integrated global network, our local stations are
vital freight requirements with container freight stations (CFSs) at key
locations facilitating movement of containerized cargo.

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 RESEARCH METHODOLOGY

In this study Descriptive Research is used. The major purpose of

descriptive research is description of the state of affairs it exists at
present. There are three ways a researcher can go about doing a
descriptive research project, and they are:

Observational, defined as a method of viewing and recording the

participants
Survey, defined as a brief interview or discussion with an individual
about specific topic
Limitations
1. No previous experience to handle similar projects
2. Limited no of options available

Qualitative Analysis
Case study: In-depth study of a problem
1. Primary data : Data are collected through face to face interactions
with the employees ofFreight link international indiapvt ltd
2. Secondary data : Datas were collected with the help of journals and
internet

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 REVIEW OF LITERATURE

EXIM procedure implies the steps involved in exporting goods out

of the country or getting in the goods within national borders.
There is a well defined procedural and documentation process for
completing these steps. Timely changes are introduced in these
procedures to make them faster and more user-friendly. Out of the
documents used in the international trade process, some are
commercial (required for general trade purpose) and some are
regulatory (mandatorily required by certain authorities). Some
documents are made by the exporter himself and some are issued
by various organizations involved during the trade

32
EXPORT PROCEDURE & DOCUMENTATION

33
 HOW ONE BEGINS TO DO EXPORT

Before entering into the venture of exports, one must look for the
product to be exported and the market where he intends to export.

In case of a manufacturer, obviously he would like to export the product

he manufactures as is or with possible modification as may be required
by the market. However, in case of a merchant exporter or a trader, one
has to identity the product to export. If the exporter is already in the
trade in the domestic market and is familiar with the product it would be
an advantage to export the said product of which he has reasonable
knowledge.

Before selecting a product, one must simultaneously made a study and

find out the prospective market. For finding out the market for the
selected product, the following methods will help.

 Get statistical information as to imports of the product by

various countries and their growth prospects in the respective
countries
 Approach the chamber of commerce for their guidance to find
out the market.
 Approach the Export Promotion Council dealing in the product
of selection to get more information.

34
The Preliminary

Once you are ready with the product you wish to export and have found
the market for the same, you are ready to proceed further. Following
sequences can be followed:

 Any one, who wishes to export, must first of all get an

Importer Exporter Code Number (IE Code).This can be
obtained by making a formal application to the office of the
Regional Directorate General of Foreign Trade (DGFT).
 Get yourself registered with the related Export Promotion
Council andbecome a member. Also arrange to obtain
Registration-Cum-Membership Certificate (RCMC) from
the council. This has twin objectives:
o Under the Foreign Trade Policy, it is mandatory that an
exporter gets him registered with the Export Promotion
Council to avail of various export facilities.
o Being a member, you will have access to all the information
relating to the product that could be made available by the
council
o Many foreign buyers send their enquiries for the imports to
the Export Promotion Council. Hence you will have few
customers interested in your product.

35
 If you are a manufacturer, find out the provisions under the EXIM
Policy of getting the raw materials duty free.
 Get familiar with the excise formalities as goods meant for export
can be cleared without payment of C. Excise duty on the finished
product subject to compliance of certain formalities.
 Understand the local government regulations in relations to the
export of the product.
 Get information of the government’s regulations of the importing
country as to restrictions on the quantity, product specification,
packing regulations, customs regulations, requirement of specific
documents/information etc.
 Availability of Vessels/Airlines, the transport charges, frequency
of operation etc.,
 To look for a Custom House Agent (CHA) (also know as freight
forwarders or clearing agents) for handling the documents/cargo in
the customs.
 If the product is covered under any quota regulation, find out the
agency/council who are handling the quota distribution for the
product and the availability of quota for exports.

36
FINDING A CUSTOMS

Once you have selected the market, the next step is to find a
prospective customer. This you can get

 From the directory of importers of the country

 By writing to the Embassy of India in that country for assistance
 By writing to the chamber of commerce of that country
 By means of participation in a Fair/Exhibition abroad either
directly or through the Export Promotion Council
 By participating in international fair if organized locally
 Through the personal contacts in that country. By these processes
one can only have the list of customers. One has to dialogue or
correspond with these customers by sending samples, getting
feedback from the customers etc. to ultimately select the customer
with whom to deal with. It is necessary to know the financial
standing of the company which can be obtained through the bank
channel or through the office of ECGC.

NEGOTIATING CONTRACT

Once the prospective customer is found, the business deal has to be

concluded. The following aspects may be considered before entering
into a final contract with the buyer.

37
  Credit Worthiness of the Customer.
 Availability of the Steamer/Airlines and the frequency
 The freight charges
 The full product specification
 Terms of Payment
 Type of packing and markings on the packages
 Mode of shipment & Shipment schedule
 Documentation requirement for the customer
Before entering into contract one should take note of the above factors.
While these are indicative, the requirements will vary from country to
country, product to product and buyer to buyer.

TERMS OF SHIPMENTS – INCOTERMS

The INCOTERMS (International Commercial Terms) is a

universally recognized set of definition of international trade terms, such
as FOB, CFR & CIF, developed by the International Chamber of
Commerce(ICC) in Paris, France. It defines the trade contract
responsibilities and liabilities between buyer and seller. It is invaluable
and a cost-saving tool. The exporter and the importer need not undergo a
lengthy negotiation about the conditions of each transaction. Once they
have agreed on a commercial terms like FOB, they can sell and buy at

38
FOB without discussing who will be responsible for the freight, cargo
insurance and other costs and risks.

The purpose of Incoterms is to provide a set of international rules

for the interpretation of the most commonly used trade terms in foreign
trade. Thus, the uncertainties of different interpretations of such terms in
different countries can be avoided or at least reduced to a considerable
degree. The scope of Incoterms is limited to matters relating to the rights
and obligations of the parties to the contract of sale with respect to the
delivery of goods. Incoterms deal with the number of identified
obligations imposed on the parties and the distribution of risk between
the parties.

MORE CLARIFICATION ON INCOTERMS

1. EXW {+the named place}

Ex Works: Ex means from. Works means factory, mill or warehouse,

which are the seller’s premises. EXW applies to goods available only at
the seller’s premises. Buyer is responsible for loading the goods on truck
or container at the seller’s premises and for the subsequent costs and
risks. In practice, it is not uncommon that the seller loads the goods on
truck or container at the sellers premises without charging loading
fee.The term EXW is commonly used between the manufacturer (seller)
and export-trader(buyer), and the export-trader resells on other trade

39
terms to the foreign buyers. Some manufacturers may use the term Ex
Factory, which means the same as Ex Works.

2. FCA {+the named point of departure}

Free Carrier: The delivery of goods on truck, rail car or container at

the specified point(depot) of departure, which is usually the sellers
premises, or a named railroad station or a named cargo terminal or into
the custody of the carrier, at sellers expense. The point(depot) at origin
may or may not be a customs clearance centre. Buyer is responsible for
the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of

an air carrier are considered as delivery on board the plane. In practice,
many importers and exporters still use the term FOB in the air shipment.
The term FCA is also used in the RO/RO (roll on/roll off) services

3. FAS {+the named port of origin}

Free Alongside Ship: Goods are placed in the dock shed or at the
side of the ship, on the dock or lighter, within reach of its loading
equipment so that they can be loaded aboard the ship, at seller’s
expense. Buyer is responsible for the loading fee, main carriage/freight,
cargo insurance, and other costs and risks In the export quotation,
indicate the port of origin(loading)after the acronym FAS, for example

40
FAS New York and FAS Bremen. The FAS term is popular in the break-
bulk shipments and with the importing countries using their own vessels.

4. FOB {+the named port of origin)

Free on Board: The delivery of goods on the board the vessel at the
named port of origin (Loading) at seller’s expense. Buyer is responsible
for the main carriage/freight, cargo insurance and other costs and risks.
In the export quotation, indicate the port of origin (loading) after the
acronym FOB.

5. CFR {+the named port of destination}

Cost and Freight: The delivery of goods to the named port of

destination (discharge) at the seller’s expenses. Buyer is responsible for
the cargo insurance and other costs and risks. The term CFR was
formerly written as C&F. Many importers and exporters worldwide still
use the term C&F.

6. CIF {+named port of destination}

Cost, Insurance and Freight: The cargo insurance and delivery of

goods to the named port of destination (discharge) at the seller’s
expense. Buyer is responsible for the import customs clearance and other
costs and risks

.
41
 7. CPT {+the named place of destination}

Carriage Paid To: The delivery of goods to the named port of

destination (discharge) at the sellers expenses. Buyer assumes the cargo
insurance, import custom clearance, payment of custom duties and taxes,
and other costs and risks.

8. CIP {+ the named place of destination)

Carriage and Insurance Paid To: The delivery of goods and the
cargo insurance to the named place of destination (discharge) at seller’s
expense. Buyer assumes the importer customs clearance, payment of
customs duties and taxes, and other costs and risks.

9. DAF {+ the names point at frontier}

Delivered At Frontier: The delivery of goods to the specified point

at the frontier at sellers expense. Buyer is responsible for the import
custom clearance, payment of custom duties and taxes, and other costs
and risks.

10. DES {+named port of destination}

Delivered Ex Ship: The delivery of goods on board the vessel at the

named port of destination (discharge) at sellersexpense. Buyer assumes
the unloading free, import customs clearance, payment of customs duties
and taxes, cargo insurance, and other costs and risks.
42
 11. DDU {+ the named point of destination}

Delivered Duty Unpaid: The delivery of goods and the cargo

insurance to the final point at destination, which is often the project site
or buyers premises at sellers expense. Buyer assumes the import customs
clearance, payment of customs duties and taxes. The seller may opt not
to insure the goods at his/her own risks.

12. DDP {+ the named point of destination)

Delivered Duty Paid:The seller is responsible for most of the

expenses which include the cargo insurance, import custom clearance,
and payment of custom duties, and taxes at the buyers end, and the
delivery of goods to the final point of destination, which is often the
project site or buyers premise. The seller may opt not to insure the
goods at his/her own risk.

PROCESSING AN EXPORT ORDER

You should not be happy merely on receiving an export order. You

should first acknowledge the export order, and then proceed to examine
carefully in respect of

 Items
 Specification
 Pre-shipment inspection

43
  Payment conditions
 Special packaging
 Labeling and marketing requirements
 Shipment and delivery date
 Marine insurance
 Documentation requirement etc.

If you are satisfied on these aspects, a formal confirmation should be

sent to the buyer, otherwise clarification should be sought from the
buyer before confirming the order. After confirmation of the export
order immediate steps should be taken for procurement/manufacture of
the export goods. In the meanwhile, you should proceed to enter into a
formal export contract with the overseas buyer.

Before accepting any order necessary homework should have been

done as to availability of the production capacity, raw material e.t.c. It
would be in the interest of the exporter to look into entering into forward
contract to safeguard against exchange rate fluctuations. Ensure that the
mode of payment is also agreed upon. In case of shipment against letter
of credit, the buyer should be advised to open the credit well in advance
before effecting the shipment.

44
 EXPORT PROCEDURE
Export procedure consists of several commercial and regulatory
formalities, which an exporter is required to complete during the course
of export trade transportation. These formalities are very complex and
time – consuming and invoice considerable documentation. Hence, the
exporter must possess adequate knowledge of such formalities. At the
same time, it should be ensure that the rules and regulations of not only
exporting but also of importing country are duly complied with. Last but
not the least, it should be ensured that all the required documents,
whether commercial or regulatory, are prepared and filed with the
appropriate authorities.

EXIM procedure involves 3 parties (3 Cs)

1. Customs- Customs and Central Excise Department

2. Carrier - Transport Company

3. Custodian- In charge of the goods (consignor or his agent)

Various documents are used during different stages of the export

procedure. The export procedures, agencies and documents involved at
each stage are brought out as follows :

l.Shipper (Exporter) manufactures the goods as per the sales contract.

45
2.Exporter arranges for shipping space and insurance- this function is
conditional and based on the terms of contract i.e. INCOTERMS.
Shipping space can also be booked by the importer; in such a case
exporter has the responsibility of making the goods available at the
selected mode.

3. Exporter prepares various documents required for export process.

These include : (a) Four copies of Commercial Invoice(b) Four copies
of Packing List(c)Certificate of Origin or pre-shipment inspection,
where required (d)Insurance policy(e)Letter of Credit copy (f)

Declaration of Value(g) Excise ARE-1/ARE-2 form as applicable

(h)GR / SDF formprescribed by RBI in duplicate (i) Letter showing
BIN Number

4.Exporter calls for Central Excise Clearance of the goods. ARE-1

form is filled by exporter forthis purpose.

5.Inland transportation of the goods to the port of loading

6.Exporter or his agent (C&F agent) files Shipping Bill (along with
other set of documents) withthe customs authority of the port. [In case of
road mode of transportation Bill of Export is filedwith the customs
department]. Serial number or thoka number is generated on the
shipping bill.Documents are checked by the customs authority regarding

46
  Value and classification of goods under drawback schedule in case
of drawback shippingbills
 Export duty/ cess if applicable
 Advance License shipping bills are checked to ensure that
description in invoice and final product specified in Advance
License matches. If necessary, samples may be drawn
andassessment may be done after visual inspection or testing.
 Exportability of goods under EXIM policy and other laws - Some
exports are totally prohibited under various Acts e.g. items
restricted or prohibited under Foreign Trade (Regulation) Act;
antiques; art treasures; Arms; narcotics etc. Some items like tea,
coffeeand coir products can be exported only against
authorization/license under respective Acts.

7.After checking if Shipping Bill and other documents, goods are sent to
the shed appraiser (docks)for physical examination of goods. Goods are
checked physically to

a. Ensure that prohibited goods are not exported.

b. Goods tally with the description given in the documents and

shipping bill.

c. Duty drawback is correctly claimed.

47
8.After the examination of goods Let Export Order is given as
clearance to the shipper. Alongwith this order GR-Form, ARE-l,
Exporter’s copy of Shipping Bill and Octroi papers are alsosigned and
given to the exporter or his agent.

9.Vessel/ Carrier is granted Entry Outward. Vessel can start loading

goods only after gettingentry outward from the customs department.
Steamer Agents can file ‘application for entryoutwards’ 14 days in
advance so that intending exporters can start submitting ‘Shipping
Bills’.This ensures that formalities are completed as quickly as possible
and loading on the ship startsquickly.

10. Shipper’s goods are loaded on the ship by the vessel in charge only
after he gets the signedshipping bill or bill of export from the exporter.
Mate Receipt is issued by the ship’s chief officeracknowledging the
receipt and condition of the goods while loading. On the basis of
theinformation 'given in Mate Receipt, Bill of Lading is issued by the
shipping company to theshipper. .

11. Before departure from the port, Export General Manifest is

submitted by the vessel incharge to the port authorities. It is also called
as export manifest or export report.

Exporter negotiates stamped Bill of lading along with other set of

documents with exporter’s bank.Exporter presents the full set of
documents to the Importer’s bank,Importer’s bank gives thedocuments

48
to the importer against payment or acceptance, as may be the case in
contract. Importer uses the Bill of Landing for taking delivery from the
vessel at the port of unloading.

Parties involved in export transaction:

l. Exporter
2. Shipping company
3. Container operator
4. C&F agent
5. Customs and Central Excise Department
6. Port Authorities

49
EXPORT PROCEDURE FLOW CHART

RECEIVE ENQUIRY

FROM SHIPPER

UPDATE
QUOTATION

CUSTOMS CUSTOMS PROCEDURES

REQUIRED

ENTER DATA IN

SYSTEM

BOOK CARGO

ARRANGE
TRANSPORTATION

RECEIVE CARGO
50
STUFF CARGO

RECIVE B/L DETAILS

TO THE LINE

GIVE B/L DETAILS TO

THE LINE

RECEIVE B/L DRAFT

FROM SHIPPING

SENT DRAFT B/L TO

SHIPPER/FORWARDE
R

SHIPPER/FORWARDE
R CONFIRMS B/L

CONFIRMS B/L TO
THE LINE

VESSEL ARRIVAL
CONFIRMATION
51
CUSTOMS PROCEDURE IN EXPORT

Close job (by accounts) close job (by logistics) update documents in the
system receive authorization from consignee receive documents

 INVOICE
 PACKING LIST
 CERTIFICATE OF ORIGIN CUSTOMS
 ENDORSE ORIGINAL B/L VESSEL ARRIVAL
NOTIFICATION CLEARENCE PROCEDURE

File documents with customs receive open order receive delivery order
customs examination receive duty amount pay receive duty amount
arrange transportation deliver cargo sign delivery receipt.

52
CUSTOMS PROCEDURES

RECEIVE
AUTHORIZATION
FROM SHIPPER

ENTER DATA INTO

SYSTEM

RECEIVE DOCUMENTS

 INVOICE
 PACKING LIST

DOCUMENTS REQUIRED BY
SHIPPER

 CERTIFICATION OF ORIGIN
 PQ CERTIFICATE

FILE DOCUMENTS WITH

CUSTOMS

BOOK CARGO

DELIVERY ORDER

53
 ARRANGE

RECEIVE CARGO

STUFF CARGO

54
Documents involved in Export Transaction:

Any export shipment involved various documents required by

various authorities such as customs, excise, RBI, Inspection and
according depending upon the requirements, there are categorized into 2
categories, namely commercial documents and regulatory documents.

l. Invoice: An invoice is a commercial document issued by a seller to a

buyer,indicating the products, quantities and agreed prices for products
or services with which the seller has already provided the Buyer. An
invoice indicates that, unless paid in advance, payment is due by
thebuyer to the seller, according to the agreed terms. Invoices are often
called Bills.

a) Proforma Invoice: It is the proforma of the terms of a contract of

sale wherein the gives the quotation to the potential buyer. If the
buyer approves its terms, he send a definite order for supply. Such
an invoice is marked with the Word “Proforma Invoice”.
b) Commercial Invoice: A commercial invoice is a bill for the goods
from the seller to the buyer. It is utilized by customs officials to
determine the value of the goods in order to assess customs duties
and taxes. Normally an export invoice would include:

- Se1ler’s name and address

- Buyer’s name and address

55
 - Issue Date

-Invoice Number

- Shipping marks and numbers

- Term of Sale: e.g. FOB, etc.

- Shipping information

- Info required by L/C

- Country of Origin

- L/C number

- Merchandise description, P.O. number, unit price, and total price

a) Consular Invoice- Consular invoice is the invoice stamped by the

consulate of importer’s country in country of origin of the
exporter.

2. Certificate of country of origin:The importers in several countries

require a certificate of origin without which clearance to import is
refused. The certificate of origin states that the goods exported are
originally manufactured in the country whose name is mentioned in
the certificate. Document is issued by local Chamber of
Commerce,Trade Association or any other authorized body. It
certifies the country of origin of themerchandise required by certain

56
 foreign countries for tariff purposes. It helps during the importcustom
clearance procedure.Certificate of origin is required when:-

 The goods produced in a particular country are subject to’

preferential tariff rates in the foreign market at the time importation.
 The goods produced in a particular country are banned for import in
the foreign market.

Significance of the Certificate of Origin

 Certificate of origin is required for availing of concessions under

Generalised System of Preferences (GSP) as well as under
Commonwealth Preferences (CWP).
 It is to be submitted to the customs for the assessment of duty
clearance of goods with concessional duty.
 It is required when the goods produced in a particular country are
banned for import in the foreign market.
 It helps the buyer in adhering to the import regulations of the
country.
 Sometimes, in order to ensures that goods bought from some other
country have not been reshipped by a seller, a certificate of origin
IS required.

57
7. 3. Packing List::The exporter prepares the packing list to facilitate
the buyer to check the shipment. It contains the detailed description
of the goods packed in each case, their gross and net weight, etc.
The difference between a packing note and a packing list is that the
packing note contains the particulars of the contents of an individual
pack, while the packing list is a consolidated statement of the
contents of a number of cases or packs. It gives the packing details
of goods in a prescribed format. It contains description of items,
number of containers/boxes with specification of net weight & gross
Weight etc. to enable the importer of the goods to check the
shipment. It is a very useful document for customs at the time of
examination and for Warehouse keeper of the buyer to maintain a
record of inventory and to effect delivery.

4. Quality or Inspection certificate: This document states that the

goods have been examinedand found to be in accordance with the
contract of sale. It is signed by the manufacturer or supplieror any
recognized independent inspection body as required by the importer.

5. Marine Cargo Insurance::Goods in transit are subject to risk of loss

of goods arising due to fire on ship, perils of sea, theft etc. marine
insurance protects losses incidental to voyages and in land
transportation.Marine insurance policy is one of the most important
document used as collateral security because it protects the interest of all

58
those who have insurable interest at the time of loss. The exporter is
bound to insure the goods in case of CIF quotation, but he can also
insure the goods in case of FOB contract, at the request of the importer,
but the premium payment will be made by the exporter. This document
is obtained from the insurance agency like GIC(General Insurance
Corporation).

6. Exchange Declaration Form (GR/SDF Form): RBI has prescribed

has prescribed a GRform (SDF), a PP form, and SOFTEX forms to
declare the export transactions. The GR formcontains :

a) Name and address of the exporter and description of goods.

b) Name and address of the authorized dealer through whom proceeds
of the exports have been or will be realized.
c) Details of commission and discount due to foreignagent or buyer.
d) The full export value, giving break up of FOB, Freight, Insurance,
Discount , andCommission ,etc.

Transport documents:

7. Airway Bill/Air consignment Note: It is issued by airlinecompany as

a confirming document for receipt of the goods on board for
transportation to the named consignee according to the agreed terms. An
airway bill, also called an air consignment note, is a receipt issued by an
airline for the carriage of goods. As each shipping company has its own
bill of lading, so each airline has its own airway bill.Airway Bill or Air
59
Consignment Note is not treated as a document of title and is not issued
in negotiable form.

Contents of Airway Bill

 Name of the airport of departure and destination.

 The names and addresses of the consignor, consignee and the first
carrier.
 Marks and container number.
 Packing and container description.
 Total number of containers and packages.
 Description of goods in terms of quantity.
 Container status and seal number.
 Amount of freight paid or payable.
 Signature and initials of the issuing carrier or his agent.

8. Mate’s Receipt::Mate's receipt is a receipt issued by the

Commanding Officer of the ship when the cargo is loaded on the ship.
The mate's receipt is a prima facie evidence that goods are loaded in the
vessel. The mate's receipt is first handed over to the Port Trust
Authorities. After making payment of all port dues, the exporter or his
agent collects the mate's receipt from the Port Trust Authorities. The
mate's receipt is freely transferable. It must be handed over to the

60
shipping company in order to get the bill of lading. Bill of lading is
prepared on the basis of the mate's receipt.

Types of Mate's Receipts

Clean Mate's Receipt: - The Commanding Officer of the ship issues a

clean mate's receipt, if he is satisfied that the goods are packed properly
and there is no defect in the packing of the cargo or package.

Qualified Mate's Receipt: - The Commanding Officer of the ship

issues qualified mate's receipt, when the goods are not packed properly
and the shipping company does not take any responsibility of damage. to
the goods during transit.

Significance of Mate's Receipt

 It is an acknowledgement of goods received for export on board

the ship.
 It is a transferable document. It must be handed over to the
shipping company in order to get the bill of lading.
 Bill of lading, which is the title of goods, is prepared on the
basis of the mate's receipt.
 It enables the exporter to clear port trust dues to the Port Trust
Authorities.

61
Obtaining Mate's Receipt

The goods are then loaded on board the ship for which the Mate
or the Captain of the ship issues Mate's Receipt to the Port
Superintendent.

9. Bill of Lading::The bill of lading is a document issued by the

shipping company or its agent acknowledging the receipt of goods
on board the vessel, and undertaking to deliver the goods in the like
order and condition as received, to the consignee or his order,
provided the freight and other charges as specified in the bill have
been duly paid. It is also a document of title to the goods and as
such, is freely transferable by endorsement and delivery.

Bill of Lading serves three main purposes:

 As a document of title to the goods;

 As a receipt from the shipping company; and
 As a contract for the transportation of goods.

Contents of Bill of Lading

 Name and logo of the shipping line.

 Name and address of the shipper.
 Name and the number of vessel.
 Name of the port of loading.

62
  Name of the port of discharge and place of delivery.
 Marks and container number.
 Packing and container description.
 Total number of containers and packages,
 Description of goods in terms of quantity.
 Container status and seal number.
 Gross weight in kg. and volume in terms of cubic meters.
 Amount of freight paid or payable.
 Shipping bill number and date.
 Signature and initials of the Chief Officer

10. Railway Consignment Receipt: When the exporter or his agent

delivers a consignment to the railway authorities for its onward carriage
to a named destination, they issued a receipt, indicating the details of the
consignment and destination to which they would carry it. This
document is called the Rail Consignment Note or Railway Receipt.

11. Roadway Bill: It is an internationally approved document of

transaction when goods are being sent by road through the countries.
12. Post Parcel Documents: It is a receipt issued by Post Office for the
parcel. The post office has received for direct delivery to the addressee.
lt is not a document of title of goods and generally contains the post
office stamp.

63
Custom Clearance Document

13. Shipping Bill:Shipping bill is the main customs document,

required by the customs authorities for granting permission for the
shipment of goods. The cargo is moved inside the dock area only
after the shipping bill is duly stamped, i.e. certified by the
customs. Shipping bill is normally prepared in five copies :-

 Customs copy.
 Drawback copy.
 Export promotion copy.
 Port trust copy.
 Exporter's copy.

Types of Shipping Bill

Based on the incentives offered by the government, customs authorities

have introduced three types of shipping bills:-

 Drawback Shipping Bill: - Drawback shipping bill is useful for

claiming the customs drawback against goods exported.
 Dutiable Shipping Bill: - Dutiable shipping bill is required for
goods which are subject to export duty.
 Duty-free Shipping Bill: - Duty-free shipping bill is useful for
exporting goods on which there is no export duty.

64
In order to facilitate easy recognition and quick processing, following
colours have been provided to different kinds of shipping bills :

Types of goods By Sea By Air

Drawback Green Green
shipping bill
Dutiable shipping Yellow Pink
bill
Duty-Free White Pink
shipping bill

Contents of Shipping Bill

 Name and address of the exporter.

 Name and address of the importer.
 Name of the vessel, master or agents and flag.
 Name of the port at which goods are to be discharged.
 Country of final destination.
 Details about packages, description of goods, marks and numbers,
quantity and details of each case.
 FOB price and real value of goods as defined in the Sea Customs
Act.
 Whether Indian or foreign merchandise to be re-exported
 Total number of packages with total weight and value.

65
Significance of Shipping Bill

a) Shipping bill is the main customs document, required by the

customs authorities for granting permission for the shipment
of goods.
b) The cargo is moved inside the dock area only after the
shipping bill is duly stamped, i.e. certified by the customs.
c) Duly endorsed shipping bill is also necessary for the
collection of export incentives offered by the government.
d) It is useful to the Customs Appraiser while determining the
actual value of goods exported.

Appropriate form of shipping bill should be used. Relevant

documents i.e. copies of packing list, invoices, export
contract, letter of credit etc. are also to be submitted. In case
of excisable goods, form ARE-l prepared at the time of
clearance from factory should also be submitted. Shipping
bill is filed in case of air and sea mode. In case of land mode,
‘Bill of Export’ is filed.

Document to be submitted by the Vessel In charge

14. Export General Manifest: It is. filed by the person in charge of the
vessel before thedeparture of the vessel or craft. This is known as Export
Report in case of export by land, and Export General Manifest in case of

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export by sea .This declaration is a statutory declaration andevery ship,
which leaves Indian, waters with the intention of carrying cargo is bound
to deliver thisdocument. The purpose of filing EGM is:
i. To ensure that all the goods which leaves territorial waters of India
has been dulyaccounted for
ii. To ensure that all the obligations imposed on the master/steamer
agents of thevessel have been duly fulfilled.

Invoice, packing list, insurance document, inspection certificate and all

other documents alongwith transport document, like bill of lading is sent
to the importer for heading on with the import clearance process.

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 FINDINGS AND ANALYSIS

 The documentation department is having trained personnel.

 Documentation is carried out in a systematic manner.
 Most of the customers are satisfied with the documentation process
of the company which facilitates exports in a speedy manner.

SUGGETION
 Company may try to make use of latest software for speedy
disposal.
 Periodical training facilities should be arranged to keep the
personnel handling documents up to date.
 High standards of service level on the part of the exporter can
ensured through the constant interaction with buyer / importer and
ability to respond their requirements.
 If delay in transaction is reduced, its shows a credit worthless of
the exporters.
 The company needs to concentrate on up grading the transportation
facilities.
 Customers are very much concern about timely services that
should be improved.
 Time delay in manual clearance of export and import cargo can be
avoided by effective implementing of EDI system.

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 CONCLUSION

GAC PVT.LTD SHIPPING (INDIA) is a wide variety of exporters

and importers do their business through the company mainly due to
the quality and speed in the clearing and forwarding service. The
documentation for import and export is the most complex part. It is
time consuming and requires expertise and precision.
This study was very useful to get an awareness regarding the
practical implication of the theoretical aspects. To conclude, the
project work has been an experience and exposure to the real field
and actual working of an organization and documentation
procedures.

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 REFERENCES

 Export import procedures

 Shipping documentation study material by guiders academy
 Logistic management by Satish C Aliawad
 International logistics by CII institute of logistics
 http://www.international trade.org/gms
 http://wwwexportimport.com
 http://wwwwikipedia.org
 http://www.export.gov

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