Professional Documents
Culture Documents
Sagar Anand
PGDM –IB
Roll No-05
Dr. R. Chandran
EXPORT
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PROCESS AND
DOCUMENTATION
PROJECT REPORT
SAGAR ANAND
7/6/2009
COVER PAGE
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ACKNOWLEDGEMENT
Last but not least, also give my sincere thanks to all the
people to directly indirectly have help and encourage me in finding
the way to us collecting the requisite information and completing the
project effectively andtimely.
Sagar Anand
PGDM (IB)
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Roll no. - 05
GUIDE CERTIFICATE
Place:
INDEX
Page No.
Important Abbreviations 6
Introduction of study 9
Objective of study 12
Research Methodology 13
Research Design 14
Company Profile 17
Organization Chart 25
Theoretical background 27
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Findings 68
Bibliography 72
Glossary 73
Important Abbreviations
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INTRODUCTION OF STUDY
Exceeding target
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Forex Earnings
Performance hopes
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Sales turnover
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RESEARCH METHODOLOGY
• Telephone
• Invoice
• Packing List
• Invoice
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• Packaging list
• Shipping bill
• Internet
RESEARCH DESIGN
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➢ Not a panacea
➢ Limitation of time
➢ Erroneous findings
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COMPANY PROFILE
Overview
✔ Packaging
✔ Warehousing
✔ Freight forwarding
✔ Projects
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Mission Statement
Team
Services
Air Freight
Custom Clearance
Document Processing
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Multi Modal Facility
3 PL & Supply Chain Management
Packaging & Warehousing
Tracking & Tracing
» Origin Pickup/Trucking.
» Warehousing if required.
» Customs Clearance & Documentation at origin.
» Origin charges payable like THC, B/L Fee etc.
» Carriage by Sea or Air by payment of Freight.
» Inland Trucking if required.
» Customs Clearing of goods at destination and Warehousing if need be.
» Door Delivery of the cargo.
FOB: Free on Board Shipment. Only Port to port or Apt to Apt service
by Carrier.
Taken in charge means that the goods have been handed over to and
accepted for carriage by the MTO for delivery.
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Period of responsibility
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team, and remain with your team through the implementation and
start-up. We analyze existing processes, from initiation of an order
through fulfillment, and evaluate modal selection, carrier utilization,
and existing cost structures. We formulate a customized solution for
your unique needs.
Committed group is a hub-based third party fulfilment and logistics
company servicing both domestic and international needs.
➢ Kitting
➢ Product/Process QA Management
➢ Performance-driven Controls
➢ Inventory control
➢ Invoicing
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➢ A-frame and Real-Time RF-Controlled Inventory System
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and is accessed through a strict password system. The information
available from our track and trace facility is flexible and can be
tailored to your individual needs. Thus, a global network of contacts
and our combined wealth of experience ensure that your shipments
are transported effectively and efficiently. Committed Group Track
and Trace facility is available for obtaining your freight consignment
status with most major Airlines.
ORGANISATION CHART
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➢ Origin Pickup/Trucking.
➢ Warehousing if required.
THEORETICAL BACKGROUND
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LOGISTICS SYSTEM
➢ Nature of Product
➢ Dealer/Distributor Network
➢ Government Policy
MODE OF TRANSPORTATION
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➢ AIR TRANSPORT
➢ OCEAN TRANSPORT
➢ RAIL TRANSPORT
➢ ROAD TRANSPORT
OCEAN TRANSPORT
More than 95 per cent of international trade is conduced by sea
routes since ancient times, sea routes are being used for
transportation of cargo from one continent or country to Coastal
shipping is also used for transporting the cargo from one port
within the country to another.
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STANDARD CONTAINER
STANDARD CONTAINERS:
Fl at r ac k 20'
Fl at r ac k 40'
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REEFER COINTAINER
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PLATEFORM CONTAINER
PL ATFO RM 20'
PL ATFO RM 40'
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International Transaction
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iv. As soon as the goods are ready the exporters invites the
representative of Export inspections agency (EIA) for pre
shipment inspection and obtain the certificate of inspection.
✔ INVOICE
✔ PACKING LIST
✔ ARE1 FROM EXSICE DEPARTMENT
✔ MARINE INSURANCE POLICY
✔ COPYOF PURCHASE ORDER / L/C
vi. Above those documentation sends to CHA by exporter.
ix. The shipping line gives mate receipts to CHA agents after the
payment of ocean freights and port due obtains the bill of
lading (B/L) from shipping line .B/L is a proof of dispatch of
cargo and also a negotiable document.
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x. After that, CHA agent send various documents back to exporter
which is—
✔ Customs attested invoice
✔ SDF form
xi. After that the exporter submitted above these documents for
negotiation to the bank which include :----
✔ Commercial invoice
✔ Packing list
✔ SDF form
✔ Certificate of origin
✔ Bill of exchange
✔ Shipment advice
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INVOICE
CERTIFICATE
CUSTOMS DOCUMENT
EXPORT
TRANSPORT DOCUMENT
DOCUMENTATION
EXCHANGE CONTROL
DOCUMENT.
PAYMENT
DOCUMENT.
MISCELLANEOUS DOCUMENT
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EXPORT INVOICE
➢ Exporter
➢ Consignee
➢ Exporter Ref.
➢ Other reference
➢ Pre-carriage by
➢ Port of loading
➢ Port of discharge
➢ Final Destination
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➢ Item code
➢ Description of goods
➢ Net weight
➢ Gross weight
➢ Quantity
➢ Amount in words
➢ Declaration:
➢ Authorised signature
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DATA ANALYSIS
13x13x17 inches
18x18x17 inches 18x18x24 inches
1.5 cubic feet
3.1 Cubic Feet 4.5 Cubic Feet
0.043 Cubic
0.091 Cubic Meters 0.125 Cubic Meters
Meters (approx) (approx)
(approx)
Or mix and match:
= one cubic
meter
= one cubic
meter
= one cubic
meter
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Introduction
Airlines that are members of the International Air Transport
Association (IATA) are bound by their membership to
comply with tariffs issued by IATA. However since 11th
September 2002, airfreight rates are now extremely
negotiable. Airfreight rates cover transportation from the
airport of loading to the airport of discharge.
These rates do not include the following:
• Collection of air cargo from the consignor's/exporters
premises
• Delivery of cargo from the airport of destination to the
consignee's premises
• Storage of cargo before or after loading
• Customs clearance in the country of destination
• Any duties and taxes that may have to be paid
• Insurance
Chargeable/volumetric weight
Airline freight rates are based on a "chargeable weight",
because the volume or weight that can be loaded into an
aircraft is limited. The chargeable weight of a shipment will
be either the "actual gross mass" or the "volumetric weight",
whichever is the highest. The chargeable weight is
calculated as follows: 1 metric ton = 6 cubic metres. In
order to establish if the cargo will be a weight or volumetric
based shipment.
Step 1
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Step 2
Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You
have now converted the centimeters (cm) into kilograms (kg)
Step 3
Now compare the weight to the volume. If the weight is 150
kg then the airline would base the freight on the higher
amount being: 166,66 kg
Air freight calculations
The airline calculates freight based on weight or volume,
which ever yields the greatest amount. Airlines quote freight
rates based on the following rate structures:
• A basic minimum charge per shipment.
• General cargo rates quoted for per kilogram. This rate
applies without reference to the nature or description
of the parcel, which is to be freighted.
• Specific commodity rates apply to certain goods of
specific descriptions, such as fresh produce. These
rates are lower than the general cargo rate, and they
provide breakpoints at which the level of the rate
reduces further.
Example:
0 - 50 Kg @ R22.00/per kg
50 - 100 Kg @ R19.00 per kg
100 - 150 Kg @ R17.00 per kg
Unit Load Device charges
These rates are charged per container/ULD without
reference to the commodity loaded therein. Calculation of
freight rates:
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Step 2
Calculate the freight with the greater amount either the
mass or the dimension. 5 X USD 110.00 = USD 550.00
Freight would be paid on the measurement and not the
weight. All shipping lines carrying cargo in a break-bulk
form insist on payment based on a minimum freight charge
which is equivalent to one freight ton, one cubic metre or
one metric ton.
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Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
US Dollar 1 250.00 X 5.2% = US Dollar 65.00
Add the two amounts together
Freight rate: U S Dollar 1 315.00
Currency Adjustment Factor (CAF)
The currency adjustment factor is a mechanism for taking
into account fluctuations in exchange rates, these
fluctuations occur when expenses are paid in one currency
and monies earned in another by a shipping company. The
currency adjustment factor is a mechanism for taking into
account these exchange rate fluctuations. It is always
expressed as a percentage of the basic freight and is subject
to regular review.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ CAF 6.3%
US Dollar 1 250.00 X 6.3% = US Dollar 78.75
Add the two amounts together
Freight rate: U S Dollar 1 328.75
War Surcharge
The outbreak of hostilities between nations can have a
serious effect upon carriers servicing international trade
even though they may sail under a neutral flag. Carriers
sailing within the vicinity of a war zone may impose a war
surcharge on freight to compensate for the higher risks
involved and the higher levels of insurance premium, which
they may be obliged to pay.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ WAR 5%
US Dollar 1 250.00 X 5% = US Dollar 62.50
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FINDINGS
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IMPORTER
EXPORTER
CERTIFICATE INVOICE PACKING GR ARE1 MARINE
OF LIST FORM FORM INSURANCE
INSPECTION POLICY
EXPORTER
COMMERCI PACKIN DUPLICA NEGOTIAB ORIGI CERTIFICATE BILL OF
AL INVOICE G LIST TE COPY LE COPIES NAL OF ORIGIN EXCHANG
GR FORM OF B/L L/C E
NEGOTIATING BANK
EXPORTER IMPORTER
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BIBLIOGRAPHY
REFERENCES – INTERNET
www.committedgroup.com
www.google.co.in
www.ask.com
www.exit.net
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Waybill.
Hub: A central location to which traffic from many cities is
directed and from which traffic is fed to other areas.
Hundredweight (cwt.): A short ton hundredweight =
100 pounds. Long ton
hundredweight = 112 pounds.
Husbanding: Term used by steamship lines, agents, or
port captains who are appointed to handle all matters in
assisting the master of the vessel while in port to obtain
bunkering, fresh water, food and supplies, payroll for the
crew, doctors appointments, ship repair, etc.
IATA: International Air Transport Association.
ICAO: International Civil Aviation Organization. A
specialized agency of the United Nations, with
headquarters in Montreal. Its task is to promote general
development of civil aviation (e.g. aircraft design and
operation, safety procedures, contractual agreements).
ICC: International Chamber of Commerce
I.C.T.F.: Intermodal Container Transfer Facility, an on-dock
facility for moving containers from ship to rail or truck.
IFF: Institute of Freight Forwarders.
Igloo: Container designed to occupy full main deck width
of carrying aircraft.
Import License: A certificate, issued by countries
exercising import controls, that permits importation of the
articles stated in the license. The issuance of such a
permit frequently is connected with the release of foreign
exchange needed to pay for the shipment for which the
import license has been requested.
In-Bond: A customs program for inland ports that provide
for cargo arriving at a
seaport to be shipped under a Customs bond to a more
conveniently located inland port where the entry
documents have been filed. Customs clears the shipment
there, and the cargo is trucked to its destination, which
normally is close to the inland port.
Independent Action: A move by whereby a member of a
shipping conference elect to depart from the specific
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has sailed and the cargo has been entered in the ship's
manifest.
O.D.: Outside diameter
ODS: An acronym commonly used for the term "operating
differential subsidy," which is a payment to an American-
flag carrier by the federal government to offset the
difference in operating costs between US and foreign
vessels.
Off-Line: Describes an airline that sells in a market to
which it does not operate. An Off-Line carrier will use
another operator to link with its network.
O/N: Order notify; own name
O/o: Order of
Open Account: A high-risk trade arrangement in which
goods are shipped to a foreign buyer without guarantee of
payment.
Open Policy: A cargo insurance policy that is an open
contract; i.e., it provides protection for all an exporter's
shipments afloat or in transit within a specified
geographical trade area for an unlimited period of time,
until the policy is cancelled by the insured or by the
insurance company. It is "open" because the goods that
are shipped are also detailed at that time. This usually is
shown in a document called a marine insurance
certificate.
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utmost safety and efficiency for the ship and the goods it
carries.
Strikes, Riots, and Civil Commotions: An insurance
clause referring to loss or damage directly caused by
strikers, locked-out workmen, persons participation in
labor disturbances, and riots of various kinds. The
ordinary marine insurance policy does not cover this risk;
coverage against it can be added only by endorsement.
Subsidy: An economic benefit granted by a government
to producers of goods or services, often to strengthen
their competitive position.
Sue & Labor Clause: A provision in marine insurance
obligating the assured to do things necessary after a loss
to prevent further loss and to act in the best interests of
the insurer.
Surety Bond: A bond insuring against loss or damage or
for the completion of obligations.
Surety Company: An insurance company
S.W.: Shipper's weights
Tally Sheet: List of cargo, incoming and outgoing,
checked by Tally clerk on dock.
Tare Weight: The weight of the container and/or packing
materials only -
excluding the weight of the goods inside the container.
Tariff: A general term for any listing of rates, charges,
etc. the tariffs most
frequently encountered in foreign trade are: tariffs of the
international
transportation companies operating on sea, on land, and
in the air; tariffs of the international cable, radio, and
telephone companies; and the customs tariffs of the
various countries, which list goods that are duty free and
those subject to import duty, giving the rate of duty in
each case. There are various classes of customs duties.
T.B.L.: Through bill of lading
Temperature Controlled Cargo: Any cargo requiring
carriage under controlled temperature.
TEU: Twenty foot equivalent.
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