SuMML8 18AlnlnC 8LÞC81 Su8Ml11Lu 1CWA8uS 1PL ÞA81lAL

luLllLLMLn1 Cl ÞCS1 C8AuuA1L uLC8LL ln MAnACLMLn1

LkÞCk1 MANAGLMLN1 5¥51LM
WlLh speclal reference Lo

(MuL1l ML1ALS L1uŦkC1A)

Su8Ml11Lu 8?ť
nameŴ 8l1LSP MLLnA
MŦ8ŦAŦŴ(2009Ŵ11)
LnrollmenL noŴA30101909110

lnuuS18? CuluL lACuL1? CuluL
CPAnk? 1AnL!A AÞA8A!l1A uASCuÞ1A
SALLS ClllCL8 AMlS1
LxporL Ǝ lmporL
AMI1¥ UNIVLk5I1¥ŴU11Ak ÞkADL5n

ACkNCWLLDGLMLN1

1he pro[ecL LlLle ºLxporL ManaaemenL SvsLem" has been conducLed aL MulLl MeLals LLdŦ l have
compleLed Lhls pro[ecLţ based on Lhe prlmarv researchţ under Lhe auldance of MrŦChankv
1ane[a (lndusLrv Culde)Ŧ
l owe enormous lnLellecLual depLh Lowards mv auldes Ma'am Apara[lLa uasaupLa AmlsL laculLv
CuldeŤ AŦCŦ8ŦSŦ nolda has auamenLed mv knowledae ln Lhe fleld of ºLxporL ManaaemenL
SvsLem"Ŧ 1hev have helped me learn abouL Lhe process and aave me valuable lnslahL lnLo Lhe
sub[ecL maLLerŦ
l am obllaed Lo MrŦ Chankv 1ane[a (Cfflcer Sales LxporL Ǝ lmporLţ MulLl MeLals LLdŦ) for
corporaLlon durlna Lhe pro[ecLŦ Mv lncreased specLrum of knowledae ln Lhls fleld ls Lhe resulL of
hls consLanL supervlslon and dlrecLlon LhaL has helped me Lo absorb relevanL and hlah quallLv
lnformaLlonŦ
l would llke Lo Lhank all Lhe respondenLs wlLhouL whose cooperaLlon mv sLudv/pro[ecL would
noL have been compleLedŦ
LasL buL noL leasL l feel lndebLed Lo all Lhose persons and oraanlzaLlons whose/whlch have
provlded help dlrecLlv or lndlrecLlv ln successful compleLlon of Lhls sLudvŦ

uaLeť
8l1LSP MLLnA
M8A (3
8u
SLM)
LnrollmenL noŴ A30101909110



1A8LL Cl CCn1Ln1S

CnAÞ1Lk NCŦ 5U8ILC1
1Ŧ0 LxecuLlve Summarv

2Ŧ0 lnLroducLlons


3Ŧ0 lndusLrv Þroflle

4Ŧ0 Companv Þroflle


3Ŧ0 8esearch MeLhodoloav

6Ŧ0 8ecommendaLlons

7Ŧ0 8lblloaraphv

8Ŧ0 Annexures

9Ŧ0 Svnopsls of Lhe pro[ecL



LkLCU1IVL 5UMMAk¥
1hls pro[ecL ls a semlnal work Lo sLudv Lhe LxporL ManaaemenL SvsLem ln a ManufacLurlna
secLorŦ MulLl MeLals SLarLed lLs operaLlon ln 1962 and slnce lL ls marchlna Lowards alorv and has
manv laurels Lo lLs nameŦ Mv Lralnlna perlod ln Lhls companv has alven me a loL of confldence
and exposures Lo whaL corporaLe world lsŦ 1he pro[ecL alven Lo me ls ºLxporL ManaaemenL
SvsLem"
1he alm of Lhe pro[ecL ls Lo deLermlne Lhe effecLlveness of LxporL ManaaemenL Þollcv ln uCM
Shrlram lerLlllzers Ǝ Chemlcals LLd ln comparaLlve wlLh oLher companles (8SnLţ CŦnŦCŦCŦţ
WlÞ8Cţ MaruLl udhvoaţ and 1CS)
We sLarLed Lhe research bv clrculaLlna quesLlonnalresţ flxlna appolnLmenLs and collecLlna
secondarv daLa Lhrouah varlous sources llke lnLerneL (companv's webslLe)ţ books eLcŦ lllled
quesLlonnalres whlch we recelved from Lhe oraanlzaLlons whlch aave a LransparenL vlew of how
companles perform and do LxporL manaaemenLţ whaL are Lhe crlLerla for LxporL ManaaemenL
and whaL emplovees feel abouL Lhe LxporL ManaaemenL svsLem prevalenL ln Lhe companvŦ We
Look varlous sLeps Lo collecL Lhe feedback from emplovees and Lhe manaaemenLţ llke
lnLervlews and quesLlonnalresŦ We Lalk abouL Lhe LxporL ManaaemenL svsLem and how lL ls
lmplemenLedŦ











SCCÞL Cl 1PL S1uu?ŤŴ
1he alm of Lhls pro[ecL reporL ls Lo unfold sLepwlse all complexlLles lnvolved ln Lhe exporL
buslness rlahL from recelvlna an exporL order Lo flnal reallzaLlon of exporL proceedsŦ lL alves a
deLall ldea of how dlfferenL deparLmenLs ln an Apparel exporL house work ln svnchronlzaLlon so
LhaL an exporL order ls processedŦ 1hls pro[ecL would be helpful Lo fulflll manv loopholes of
manufacLurlnaţ processlna and analvzlna Lhe exporL order as well as documenLaLlonŦ


















ln18CuuC1lCn
An LxporL ManaaemenL SvsLem ls a proaram deslaned Lo monlLor and manaae Lhe handllna of
exporL conLrol lssues wlLhln an lnsLlLuLlonŦ lL should reflecL Lhe exlsLlna procedures followed bv
an lnsLlLuLlon ln lLs handllna of conLrolled equlpmenL and Lechnoloavţ and bulld on Lhose
procedures Lo creaLe a dvnamlc approach Lo Lhls manaaemenLŦ Cne lmporLanL purpose of Lhls
manaaemenL svsLem ls Lo ensure LhaL Lhe lnsLlLuLlon wlll be accounLable for exporL conLrol
maLLers ln Lhe evenL of an audlL bv one of Lhe federal aaencles LhaL lmplemenL Lhe federal
sLaLues and reaulaLlonsŦ

Pow Lo sLarL exporL ls a falr quesLlon LhaL everv flrsL Llme exporLer wanLs Lo askŦ LxporL ln lLself
ls a verv wlde concepL and loL of preparaLlons ls requlred bv an exporLer before sLarLlna an
exporL buslnessŦ
A kev success facLor ln sLarLlna anv exporL companv clear undersLands and deLall knowledae of
producLs Lo be exporLedŦ ln order Lo be successful ln exporLlna one mosL fullv research lLs
forelan markeL raLher Lhan Lrv Lo Lackle everv markeL aL onceŦ 1he exporLer should approach a
markeL ln a prlorlLv baslsŦ Cverseas deslans and producL musL be sLudles properlv and
consldered carefullvŦ 8ecause Lhere are speclflc laws deallnas wlLh lnLernaLlonal Lrade and
forelan buslnessţ lL ls lmperaLlve LhaL vou famlllarlze vourself wlLh sLaLeţ federalţ and
lnLernaLlonal laws before sLarLlna vour exporL buslnessŦ
Þrlce ls also an lmporLanL facLorŦ Soţ before sLarLlna an exporL buslness an exporLer musL
consldered Lhe prlce offered Lo Lhe buversŦ As Lhe selllna prlce depends on sourclna prlceţ Lrv
Lo avold unnecessarv mlddlemen who onlv add cosL buL no valueŦ lL helps a loL on cuLLlna Lhe
LransacLlon cosL and lmprovlna Lhe quallLv of Lhe flnal producLsŦ
Poweverţ before we ao deep lnLo ƍPow Lo exporL?" leL us dlscuss whaL an exporL ls and how
Lhe CovernmenL of lndlan has deflned lLŦ ln verv slmple Lermsţ exporL mav be deflned as Lhe
selllna of aoods Lo a forelan counLrvŦ Poweverţ As per SecLlon 2 (e) of Lhe lndla lorelan 1rade
AcL (1992)ţ Lhe Lerm exporL mav be deflned as ƌan acL of Laklna ouL of lndla anv aoods bv landţ
sea or alr and wlLh proper LransacLlon of monevŦ
LxporLlna a producL ls a proflLable meLhod LhaL helps Lo expand Lhe buslness and reduces Lhe
dependence ln Lhe local markeLŦ lL also provldes new ldeasţ manaaemenL pracLlcesţ
markeLlna Lechnlquesţ and wavs of compeLlnaţ whlch ls noL posslble ln Lhe domesLlc markeLţ an
lndlvldual buslnessman should Lhlnk abouL exporLlnaŦ 8esearch shows LhaL on averaaeţ
exporLlna companles are more proflLable Lhan Lhelr non exporLlna counLerparLsŦ

Why Need to Export
1here are manv aood reasons for exporLlnať
1he flrsL and Lhe prlmarv reason for exporL are Lo earn forelan exchanaeŦ 1he forelan
exchanae noL onlv brlnas proflL for Lhe exporLer buL also lmproves Lhe economlc
condlLlon of Lhe counLrvŦ
Secondlvţ companles LhaL exporL Lhelr aoods are belleved Lo be more rellable Lhan Lhelr
counLerparL domesLlc companles assumlna LhaL exporLlna companv has survlve Lhe LesL
ln meeLlna lnLernaLlonal sLandardsŦ
1hlrdlvţ free exchanae of ldeas and culLural knowledae opens up lmmense buslness and
Lrade opporLunlLles for a companvŦ
lourLhlvţ as one sLarLs vlslLlna cusLomers Lo sell one's aoodsţ he has an opporLunlLv Lo
sLarL explorlna for newer cusLomersţ sLaLeŴofŴLheŴarL machlnes and vendors ln forelan
landsŦ
llfLhlvţ bv exporLlna aoodsţ an exporLer also becomes safe from offseL lack demand for
seasonal producLsŦ
LasLlvţ lnLernaLlonal Lrade keeps an exporLer more compeLlLlve and less vulnerable Lo
Lhe markeL as Lhe exporLer mav have a buslness boom ln one secLor whlle
slmulLaneouslv wlLnesslna a busL ln a dlfferenL secLorŦ
no doubL LhaL ln Lhe aae of aloballzaLlon and llberallzaLlonsţ LxporL has became of Lhe mosL
lucraLlve buslness ln lndlaŦ CovernmenL of lndla ls also supporLlna exporLers Lhrouah varlous
lncenLlves and schemes Lo promoLe lndlan exporL for meeLlna Lhe much needed requlremenLs
for lmporLlna modern Lechnoloav and adopLlna new Lechnoloav from MnCs Lhrouah !olnL
venLures and collaboraLlonŦ

-0.9;0
1he maln ob[ecLlve of a Lvplcal exporL plan ls Loť
- ldenLlfles whaL vou wanL Lo achleve from exporLlnaŦ
- LlsLs whaL acLlvlLles vou need Lo underLake Lo achleve Lhose ob[ecLlvesŦ
- lncludes mechanlsms for revlewlna and measurlna proaressŦ
- Pelps vou remaln focused on vour aoalsŦ

a ppe exp p|ann|ng f|||ng ques|ns need anse
1Ŧ Whlch producLs are selecLed for exporL developmenL?
2Ŧ WhaL modlflcaLlonsţ lf anvţ musL be made Lo adapL Lhem for overseas
MarkeLs?
3Ŧ Whlch counLrles are LaraeLed for sales developmenL?
4Ŧ ln each counLrvţ whaL ls Lhe baslc cusLomer proflle?
3Ŧ WhaL markeLlna and dlsLrlbuLlon channels should be used Lo reach
CusLomers?
6Ŧ WhaL speclal challenaes perLaln Lo each markeL (compeLlLlonţ culLural
dlfferencesţ lmporL conLrolsţ eLcŦ)ţ and whaL sLraLeav wlll be used Lo
address Lhem?
7Ŧ Pow wlll Lhe producLƌs exporL sale prlce be deLermlned?
8Ŧ WhaL speclflc operaLlonal sLeps musL be Laken and when?
9Ŧ WhaL wlll be Lhe Llme frame for lmplemenLlna each elemenL of Lhe
plan?
10Ŧ WhaL personnel and companv resources wlll be dedlcaLed Lo exporLlna?
11Ŧ WhaL wlll be Lhe cosL ln Llme and monev for each elemenL?
12Ŧ Pow wlll resulLs be evaluaLed and used Lo modlfv Lhe plan?
lrom Lhe sLarLţ Lhe plan should be vlewed and wrlLLen as a manaaemenL Loolţ noL as a
sLaLlc documenLŦ Cb[ecLlves ln Lhe plan should be compared wlLh acLual resulLs Lo
measure Lhe success of dlfferenL sLraLealesŦ 1he companv should noL heslLaLe Lo
modlfv Lhe plan and make lL more speclflc as new lnformaLlon and experlence are
aalnedŦ

lNuu51kY PkOllL£
ManufacLurlna secLor ls Lhe backbone of anv economvŦ lL fuels arowLhţ producLlvlLvţ
emplovmenLţ and sLrenaLhens aarlculLure and servlce secLorsŦ AsLronomlcal arowLh ln
worldwlde dlsLrlbuLlon svsLems and l1ţ coupled wlLh openlna of Lrade barrlersţ has led Lo
sLupendous arowLh of alobal manufacLurlna neLworksţ deslaned Lo Lake advanLaae of lowŴ
waaed veL efflclenL work force of lndlaŦ ƌ lndlan ManufacLurlna ƌ secLor ls broadlv dlvlded lnLo Ŵ
CaplLal Coods Ǝ Lnalneerlnaţ Chemlcalsţ ÞeLroleumţ Chemlcals Ǝ lerLlllzersţ Þackaalnaţ
Consumer nonŴuurablesţ LlecLronlcsţ l1 Pardware Ǝ perlpheralsţ Cems Ǝ !ewelrvţ LeaLher Ǝ
LeaLher ÞroducLsţ Mlnlnaţ SLeel Ǝ nonŴlerrous MeLalsţ 1exLlles Ǝ Apparels and WaLer
LqulpmenLŦ 1he overall manufacLurlna arowLh raLe ls pro[ecLed Lo rlse Lo 9Ŧ3Ʒ ln 2008Ŵ09ţ afLer
decllnlna Lo 8Ŧ8Ʒ ln Lhe 2007Ŵ08 from a hlah of 12Ŧ3Ʒ aLLalned ln Lhe prevlous vear (2006Ŵ07)Ŧ
Cver Lhe pasL vear or Lwo Lhere has been mounLlna confldence abouL Lhe new found sLrenaLh
of lndlaƌs manufacLurlna secLor and lLs lonaŴLerm poLenLlalŦ 1he recenLlv approved 11Lh llve
?ear Þlan expecLs manufacLurlna Lo arow aL 10Ŵ11 per cenL a vear durlna Lhe perlod 2007Ŵ12ŦCf
Lhe 100 secLors survevedţ as manv as 67 secLors are polsed Lo achleve 'excellenL' Lo 'hlah'
arowLh raLes ranalna 10 Lo 20 per cenL or moreŦ Whlle 12 secLors pro[ecL excellenL arowLh of
more Lhen 20 per cenL or moreţ 33 secLors foresee hlah arowLh of 10 Lo 20 per cenLţ 32 secLors
expecL moderaLe arowLh of up Lo 10 per cenL and 1 secLor has pro[ecLed a neaaLlve arowLh
durlna 2008Ŵ09Ŧ









cOMP4NY PkOllL£






MulLlmeLals llmlLed founded ln 1962 as a [olnL venLure wlLh 8evere Copper and 8rass lncţ uSA
aLLalned Lhe poslLlon of a premler manufacLurer of seamless exLruded drawn copper and
copper allov producLs lncludlna 93/03ţ 90/10ţ Ǝ 70/30 Copper nlckelţ Cunlferţ Alumlnlum 8rassţ
AdmlraLelv 8rassţ 70/30 8rassţ 63/37 8rassţ naval 8rass conflrmlna Lo varlous lnLernaLlonal
sLandardsţ caLerlna Lo numerous lndusLrles lŦeŦ AlrŴcondlLlonlnaţ 8efrlaeraLlonţ PeaL exchanaersţ
nuclear and Lhermal power planLsţ Shlp bulldlna and repalrsţ ÞeLroleum 8eflnerlesţ Suaar
planLsţ uefense esLabllshmenLsŴnaval Warshlps eLcŦ
MulLlmeLals has a Lechnlcal collaboraLlon wlLh M/s PlLachl Cable LLdŦ!apanţ one of Lhe world
leaders ln AlrŴcondlLlonlna and 8efrlaeraLlon Copper Lube LechnoloavŦ MulLlmeLals have won 13
LxporL Lxcellence awards slnce 1993Ŵ94ţ ln a shorL span of 16 vears wlLhln shlpmenL Lo all
conLlnenLsŦ
We also manufacLure copper nlckel Lubes ln LWC form and ÞvC coaLed copper 1ubesŦ We have
ln house faclllLv of maklna u bend Lubesţ low flnned Lubes and surface enhanced flnned LubesŦ
AparL from Lhe sLandard producLsţ MulLlmeLals has also been manufacLurlna oLher copper
based Allov semls as per cusLomer's speclflc requlremenLs of chemlcalţ mechanlcalţ
meLalluralcal and Þhvslcal ÞroperLlesŦ 1he allovs lnclude Alumlnlum bronzeţ Manaanese 8ronzeţ
naval 8rassţ 90/10 Copper nlckelţ 70/30 Copper nlckelţ and foralna 8rassţ 1ellurlum Copperţ
nlckel Sllver ln Lhe form of hollowsţ secLlonsţ profllesţ and rodsŦ 1hese allovs provlde a unlque
comblnaLlon of sLrenaLhţ anLlŴcorroslon properLles and oxldaLlon reslsLanceŦ
We also offer hlah performance copper allov wlres used ln Lhe elecLrlcal and elecLronlcs
connecLors and lnLerŴconnecLlon svsLemsţ weldlna appllcaLlonsţ heaL Lransfers and marlne
lndusLrvŦ
lorLlfled bv our dedlcaLlon for excellenceţ commlLmenL Lo quallLv and arowLhţ MulLlmeLals has
everv reason Lo be opLlmlsLlc abouL lL's fuLure ln Lhe nonŴferrous buslness ln Lhe lndla and
abroadŦ



Il5lON

PonesLvţ lnLearlLv and LLhlcs have been Lhe plllars on whlch Lhe companv has been bullL uponŦ
keeplna Lhls ln mlndţ we aL mulLlmeLalsţ follow servlce orlenLed eLhlcs Lo achleve Lechnlcallv
envlronmenLallv responslble and lnnovaLlve soluLlons ln copper and copper allovsŦ WlLh Lhe
help our Leam of dedlcaLed and experlenced personnel and sLaLeŴofŴLheŴarL manufacLurlna
faclllLvţ we are commlLLed Lo belna a dvnamlc and dlverslfled alobal companvŦ We also envlslon
ln maklna our producLs sulLable for varlous end appllcaLlonsţ world overŦ We hold repuLe for
dellverlna cosLŴ efflclenL and ploneerlna producLs and we alm Lo malnLaln such a repuLaLlonŦ
We as a parLner are devoLed Lo our cusLomers and deem compleLe cusLomer saLlsfacLlon as our
ulLlmaLe aoalŦ

£\lOk1 lkOc£uuk£ Ol Mul1lM£1Al5 l1uŦ
1o undersLand Lhe LxporL Þrocedure ln MulLlmeLals LLdŦ
lL ls essenLlal LhaL a person enaaaed ln lnLernaLlonal Lrade be aware of Lhe varlous
procedures lnvolvedŦ 1he buslness of exporLs ls heavllv documenLŴorlenLed Ǝ one
musL aeL acqualnLed wlLh Lhe enLlre procedureŦ lallure Lo complv wlLh documenLarv
requlremenL mav lead Lo flnanclal lossŦ
lteŴ5blpmeot ltoceJote
Cn recelvlna Lhe requlslLlon Ǝ purchase order from merchanLţ documenLaLlon
deparLmenL lssues an lnvolceŦ 1wo lnvolces are prepared lŦeŦ commerclal lnvolceƎ
cusLom lnvolceŦ Commerclal lnvolce ls prepared for Lhe buver Ǝ CusLom lnvolce ls
prepared for Lhe CusLom auLhorlLles of boLh Lhe counLrlesŦ
Þacklna llsL ls prepared whlch deLalls Lhe aoods belna shlppedŦ
CSÞ cerLlflcaLe ls prepared lf Lhe conslanmenL ls exporLed Lo Lu or counLrles
menLloned ln Lhe CSÞ llsLŦ
8uvlna house lnspecLs Lhe aoods Ǝ lssues an lnspecLlon cerLlflcaLeŦ
CerLlflcaLe of orlaln ls also lssued and aLLachedţ lf requlredŦ
lollowlna documenLs are alven Lo CusLoms for Lhelr referenceť
O CusLom lnvolce
O Þacklna llsL
O lLC cerLlflcaLe
O Þurchase Crder or L/Cţ lf requlredŦ
O CusLom annexure
O Cn recelpL of above documenLsţ cusLoms wlll lssue clearance cerLlflcaLeŦ
O AfLer cusLom clearance a seL of documenLs wlLh cusLom clearance recelpL are senL
O Alona wlLh Lhe conslanmenL Lo Lhe forwarderŦ lorwarder books Lhe shlpmenL Ǝ as
per Lhe slze of Lhe carLons calculaLes C8M Ǝ decldes whlch conLalner Lo be usedŦ

O lollowlna documenLs are senL Lo buvlna house for Lhelr referenceţ as per buver's
requlremenLť
O lnvolce
O Þacklna LlsL
O CSÞ (lf exporLs Lo Lurope)
O CerLlflcaLe of Crlaln (lf requlred)
O Wearlna Apparel sheeL
O A copv of lC8/ Alrwav 8lll/ 8lll of Ladlna
O 8uvlna house Lhen lnLlmaLes Lhe buver abouL Lhe shlpmenL Ǝ alves Lhe deLalls
reaardlna lLŦ 8uvlna house wlll send a seL of Lhese documenLs Lo Lhe buverŦ
O 8uver collecLs Lhe conslanmenL from Lhe desLlnaLlon porL bv showlna Lhe followlna
O documenLsť
O lnvolce
O Þacklna LlsL
O 8lll of ladlna/ lC8/ Alrwav 8lll
O Cn shlpmenL of aoodsţ exporLer wlll send Lhe documenLs Lo Lhe lmporLer's bankŦ

ÞosLŴShlpmenL Þrocedure
O A forelan buver wlll make Lhe pavmenL ln Lwo wavsť
11 ( Lelearaphlc Lransfer) lŦeŦ Wlre 1ransfer Ŷ (Advance pavmenLţ as per
Lhe clause Ŷ 30Ʒ advance Ǝ remalnlna 30Ʒ on shlpmenL)
Lee f Ced|
lf Lhe pavmenL Lerms are a conflrmed L/C Lhen Lhe pavmenL wlll be made bv Lhe
forelan bank on recelvlna Lhe followlna documenLsť
O lnvolce
O Þacklna llsL
O 8/L


Anv oLher requlred bv Lhe buver or Lhe counLrv of lmporLŦ
1he pavmenL Lerms can beť
AL SlahL
O WlLhln 13 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
O WlLhln 30 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
O WlLhln 60 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
O WlLhln 90 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
O AfLer shlpmenLţ exporLer sends Lhe documenLs Lo Lhe buver's bank for pavmenLŦ As
Lhe buver's bank recelve Lhe documenLs lL wlll conflrm wlLh Lhe buver for release
of pavmenLŦ Cn conflrmaLlonţ lL wlll make Lhe pavmenL ln Lhe forelan currencvŦ
1he LransacLlon wlll be 8ank Lo 8ankŦ
ÞsŴ5h|pmen Þnedue
A forelan buver wlll make Lhe pavmenL ln Lwo wavsť
11 ( Lelearaphlc Lransfer) lŦeŦ Wlre 1ransfer Ŷ (Advance pavmenLţ as per
Lhe clause Ŷ 30Ʒ advance Ǝ remalnlna 30Ʒ on shlpmenL)
LeLLer of CredlL
lf Lhe pavmenL Lerms are a conflrmed L/C Lhen Lhe pavmenL wlll be made bv Lhe
forelan bank on recelvlna Lhe followlna documenLsť
lnvolce
Þacklna llsL
8/L
Anv oLher requlred bv Lhe buver or Lhe counLrv of lmporLŦ
1he pavmenL Lerms can beť
AL SlahL
WlLhln 13 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
WlLhln 30 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
WlLhln 60 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ
WlLhln 90 davs from 8lll of Ladlna or Alrwav 8lll daLeŦ

AfLer shlpmenLţ exporLer sends Lhe documenLs Lo Lhe buver's bank for pavmenLŦ As
Lhe buver's bank recelve Lhe documenLs lL wlll conflrm wlLh Lhe buver for release
of pavmenLŦ Cn conflrmaLlonţ lL wlll make Lhe pavmenL ln Lhe forelan currencvŦ
1he ansan|n ||| be 8ank 8ankŦ
1he domesLlc branch wlll credlL Lhe exporLer's accounLţ as aaalnsL Lhe respecLlve
purchase order or lnvolceţ ln lndlan rupees bv converLlna Lhe forelan currencv as
per Lhe currenL bank raLeŦ
lf Lhe pavmenL ls Lhrouah wlre Lransferţ Lhe pavmenL wlll be made as per Lhe Lerms
aareed bv Lhe exporLer (Advance pavmenLţ as per Lhe clause Ŷ 30Ʒ advance Ǝ
remalnlna 30Ʒ on shlpmenL)Ŧ
Lxp Dnumensť
An exporL Lrade LransacLlon dlsLlnaulshes lLself from a domesLlc Lrade LransacLlon ln more Lhan
one wavŦ Cne of Lhe mosL slanlflcanL varlaLlons beLween Lhe Lwo arlses on accounL of Lhe much
more lnLenslve documenLaLlon workŦ 1he documenLs menLloned ln Lhe pre Ǝ posL shlpmenL
procedure are dlscussed belowť
1. Invoice:
lL ls prepared bv an exporLer Ǝ senL Lo Lhe lmporLer for necessarv accepLanceŦ When Lhe
buver ls readv Lo purchase Lhe aoodsţ he wlll requesL for an lnvolceŦ lnvolce ls of 3 Lvpesť
aŦ Commerclal lnvolceť lL ls a documenL lssued bv Lhe seller of aoods Lo Lhe buver ralslna hls
clalm for Lhe value of aoods descrlbed Lherelnţ lL lndlcaLes descrlpLlon of aoodsţ quanLlLvţ value
aareed per unlL Ǝ LoLal value Lo be paldŦ normallvţ Lhe lnvolce ls prepared flrsLţ Ǝ several oLher
documenLs are Lhen prepared bv derlvlna lnformaLlon from Lhe lnvolceŦ
bŦ Consular lnvolceť lL ls cerLlflcaLlon bv a consul or CovernmenL offlclal coverlna an
lnLernaLlonal shlpmenL of aoodsŦ lL ensures LhaL exporLer's Lrade papers are ln order Ǝ Lhe
aoods belna shlpped do noL vlolaLe anv law or Lrade resLrlcLlonsŦ
cŦ CusLoms lnvolceť lL ls an lnvolce made on speclfled formaL for Lhe CusLom offlclals Lo
deLermlne Lhe value eLcŦ as prescrlbed bv Lhe auLhorlLles of Lhe lmporLlna counLrvŦ

. Packing Iist:
lL shows Lhe deLalls of aoods conLalned ln each parcel / shlpmenLŦ Conslderablv more deLalled
and lnformaLlve Lhan a sLandard domesLlc packlna llsLţ lL lLemlzes Lhe maLerlal ln each lndlvldual
packaae and lndlcaLes Lhe Lvpe of packaaeţ such as a boxţ craLeţ drum or carLonŦ 8oLh
commerclal sLaLloners and frelahL forwarders carrv packlna llsL formsŦ
3. Certificate of Inspection: -
lL ls a Lvpe of documenL descrlblna Lhe condlLlon of aoods and conflrmlna LhaL Lhev
have been lnspecLedŦ lL ls requlred bv some purchasers and counLrles ln order Lo aLLesL
Lo Lhe speclflcaLlons of Lhe aoods shlppedŦ 1hls ls usuallv performed bv a Lhlrd parLv and
ofLen obLalned from lndependenL LesLlna oraanlzaLlonsŦ
4. Certificate of Origin;
lmporLers ln several counLrles requlre a cerLlflcaLe of orlaln wlLhouL whlch clearance Lo
lmporL ls refusedŦ 1he cerLlflcaLe of orlaln sLaLes LhaL Lhe aoods exporLed are orlalnallv
manufacLured ln Lhe counLrv whose name ls menLloned ln Lhe cerLlflcaLeŦ CerLlflcaLe of
orlaln ls requlred whenŦ
1he aoods produced ln a parLlcular counLrv are sub[ecL Lo' preferenLlal Larlff raLes ln
Lhe forelan markeL aL Lhe Llme lmporLaLlonŦ
1he aoods produced ln a parLlcular counLrv are banned for lmporL ln Lhe forelan markeLŦ
. GSP:
lL ls Cenerallzed SvsLem of ÞreferenceŦ lL cerLlfles LhaL Lhe aoods belna exporLed have
orlalnaLed/ been manufacLured ln a parLlcular counLrvŦ lL ls malnlv useful for Laklna advanLaae
of preferenLlal duLv concesslonţ lf avallableŦ lL ls appllcable ln counLrles formlna Luropean
unlonŦ
6. IEC Certificate:
lL ls an lmporLŴLxporL Code CerLlflcaLe lssued bv uCl1ţ MlnlsLrv of Commerceţ and CovernmenL
of lndlaŦ lL ls a 10 dlalL code numberŦ no exporLs or lmporLs wlll be affecLed wlLhouL Lhe lLC
codeŦ lL ls mandaLorv for everv exporLerŦ
7. BiII of Lading:
1he blll of ladlna ls a documenL lssued bv Lhe shlpplna companv or lLs aaenL acknowledalna Lhe
recelpL of aoods on board Lhe vesselţ and underLaklna Lo dellver Lhe aoods ln Lhe llke order and
condlLlon as recelvedţ Lo Lhe conslanee or hls orderţ provlded Lhe frelahL and oLher charaes as
speclfled ln Lhe blll have been dulv paldŦ lL ls also a documenL of LlLle Lo Lhe aoods and as suchţ
ls freelv Lransferable bv endorsemenL and dellvervŦ
. Airway BiII:
An alrwav blllţ also called an alr conslanmenL noLeţ ls a recelpL lssued bv an alrllne for Lhe
carrlaae of aoodsŦ As each shlpplna companv has lLs own blll of ladlnaţ so each alrllne has lLs
own alrwav blllŦ Alrwav 8lll or Alr ConslanmenL ŦnoLe ls noL LreaLed as a documenL of LlLle and ls
noL lssued ln neaoLlable formŦ
9Ŧ Mate's Receiptť
MaLeƌs recelpL ls a recelpL lssued bv Lhe Commandlna Cfflcer of Lhe shlp when Lhe carao ls
loaded on Lhe shlpŦ 1he maLeƌs recelpL ls a prlma facle evldence LhaL aoods are loaded ln Lhe
vesselŦ 1he maLeƌs recelpL ls flrsL handed over Lo Lhe ÞorL 1rusL AuLhorlLlesŦ AfLer maklna
pavmenL of all porL duesţ Lhe exporLer or hls aaenL collecLs Lhe maLeƌs recelpL from Lhe ÞorL
1rusL AuLhorlLlesŦ 1he maLeƌs recelpL ls freelv LransferableŦ lL musL be handed over Lo Lhe
shlpplna companv ln order Lo aeL Lhe blll of ladlnaŦ 8lll of ladlna ls prepared on Lhe basls of Lhe
maLeƌs recelpLŦ
10. Shipping BiII:
Shlpplna blll ls Lhe maln cusLoms documenLţ requlred bv Lhe cusLoms auLhorlLles for aranLlna
permlsslon for Lhe shlpmenL of aoodsŦ 1he carao ls moved lnslde Lhe dock area onlv afLer Lhe
shlpplna blll ls dulv sLampedţ lŦeŦ cerLlfled bv Lhe cusLomsŦ Shlpplna blll ls normallv prepared ln
flve coplesť
CusLoms copvŦ
urawback copvŦ
LxporL promoLlon copvŦ
ÞorL LrusL copvŦ
LxporLerƌs copvŦ
12Ŧ LeLLer of CredlLť
1hls meLhod of pavmenL has become Lhe mosL popular form ln recenL LlmesŤ lL ls more
secured as companv Lo oLher meLhods of pavmenL (oLher Lhan advance pavmenL)Ŧ
A leLLer of credlL can be deflned as ºan underLaklna bv lmporLer's bank sLaLlna LhaL pavmenL
wlll be made Lo Lhe exporLer lf Lhe requlred documenLs are presenLed Lo Lhe bank wlLhln Lhe
varleLv of Lhe L/C"Ŧ

ConLenLs of a LeLLer Cf CredlL
A leLLer of credlL ls an lmporLanL lnsLrumenL ln reallzlna Lhe pavmenL aaalnsL exporLsŦ Soţ
needless Lo menLlon LhaL Lhe leLLer of credlL when esLabllshed bv Lhe lmporLer musL conLaln all
necessarv deLalls whlch should Lake care of Lhe lnLeresL of lmporLer as well as LxporLerŦ LeL us
see shaL a leLLer of credlL should conLaln ln Lhe lnLeresL of Lhe exporLerŦ
1hls ls onlv an lllusLraLlve llsLŦ
name and address of Lhe bank esLabllshlna Lhe leLLer of credlL
leLLer of credlL number and daLe
1he leLLer of credlL ls lrrevocable
uaLe of explrv and place of explrv
value of Lhe credlL
ÞroducL deLalls Lo be shlpped
ÞorL of loadlna and dlscharae
Mode of LransporL
llnal daLe of shlpmenL
ueLalls of aoods Lo be exporLed llke descrlpLlon of Lhe producLţ quanLlLvţ unlL raLeţ
Lerms of shlpmenL llke Cllţ lC8 eLcŦ
1vpe of packlna
uocumenLs Lo be submlLLed Lo Lhe bank upon shlpmenL
1olerance level for boLh quanLlLv and value
lf L/C ls resLrlcLed for neaoLlaLlon
8elmbursemenL clause

Steps in an Import Transaction with Letter of Credit
1he lmporLer lncludes a purchase conLracL for Lhe buvlna of cerLaln aoodsŦ
Nj
1he lmporLer requesLs Lhls bank Lo open a LC ln favor of hls suppllerŦ
Nj
1he lmporLer's bank opens Lhe LC as per Lhe appllcaLlonŦ
Nj
1he openlna bank wlll forward Lhe orlalnal LC Lo Lhe advlslna bankŦ
Nj
1he advlslna bankţ afLer saLlsfvlna lLself abouL Lhe auLhenLlclLv of Lhe credlLţ forwards Lhe same
Lo Lhe exporLerŦ
Nj
1he exporLer scruLlnlzes Lhe LC Lo ensure LhaL lL conflrms Lo Lhe Lerms of conLracLŦ
Nj
ln case anv Lerms are noL as aareedţ Lhe lmporLer wlll be asked Lo make Lhe requlred
amendmenLs Lo Lhe LCŦ
Nj
ln case Lhe LC ls as requlredţ Lhe exporLer proceeds Lo make arranaemenLs for Lhe aoodsŦ
Nj
1he exporLer wlll effecL Lhe shlpmenL of aoodsŦ
Nj
AfLer Lhe shlpmenL ls effecLedţ Lhe exporLer wlll prepare exporL documenLsţ lncludlna 8llls of
LxchanaeŦ
Nj
1he exporLer's bank (neaoLlaLlon bank) verlfles all Lhe documenLs wlLh Lhe LCŦ
Nj
lf Lhe documenLs are ln Lhe conformlLv wlLh Lhe Lerms of LC and all oLher condlLlons are
saLlsfledţ Lhe bank wlll neaoLlaLes Lhe blllŦ
Nj
1he exporLer recelves Lhe pavmenL ln hls bank accounLŦ
Nj
1he exporLer recelves Lhe pavmenL ln hls bank accounLŦ
Nj
1he LC Cpenlna bank (lmporLer's 8ank) recelves Lhe blll and documenLs from Lhe exporLer's
bankŦ
Nj
1he lmporLer's bank checks Lhe documenLs and lnforms Lhe lmporLerŦ 1he lmporLer Lhen
accepLs/pavs Lhe blll (1hls would depend on Lhe Lermsţ uellverv aaalnsL AccepLance or uellverv
aaalnsL ÞavmenL)Ŧ Cn accepLance/ pavmenLţ Lhe lmporLer aeLs Lhe shlpplna documenLs
coverlna Lhe aoods purchased bv hlmŦ
Nj
1he LC lssulna bank relmburses Lhe neaoLlaLlna bankţ Lhe amounLţ lf Lhe documenLs are found
ln orderŦ

TERMS OF SHIPMENTS - INCOTERMS
1he lnCC1L8MS (lnLernaLlonal Commerclal 1erms) ls a unlversallv recoanlzed seL of deflnlLlon
of lnLernaLlonal Lrade Lermsţ such as lC8ţ Cl8 Ǝ Cllţ developed bv Lhe lnLernaLlonal Chamber
of Commerce (lCC) ln Þarlsţ lranceŦ lL deflnes Lhe Lrade conLracL responslblllLles and llablllLles
beLween buver and sellerŦ lL ls lnvaluable and a cosLŴsavlna LoolŦ 1he exporLer and Lhe lmporLer
need noL underao a lenaLhv neaoLlaLlon abouL Lhe condlLlons of each LransacLlonŦ Cnce Lhev
have aareed on a commerclal Lerms llke lC8ţ Lhev can sell and buv aL lC8 wlLhouL dlscusslna
who wlll be responslble for Lhe frelahLţ carao lnsurance and oLher cosLs and rlsksŦ 1he purpose
of lncoLerms ls Lo provlde a seL of lnLernaLlonal rules for Lhe lnLerpreLaLlon of Lhe mosL
commonlv used Lrade Lerms ln forelan LradeŦ 1husţ Lhe uncerLalnLles of dlfferenL lnLerpreLaLlons
of such Lerms ln dlfferenL counLrles can be avolded or aL leasL reduced Lo a conslderable
deareeŦ 1he scope of lncoLerms ls llmlLed Lo maLLers relaLlna Lo Lhe rlahLs and obllaaLlons of Lhe
parLles Lo Lhe conLracL of sale wlLh respecL Lo Lhe dellverv of aoodsŦ lncoLerms deal wlLh Lhe
number of ldenLlfled obllaaLlons lmposed on Lhe parLles and Lhe dlsLrlbuLlon of rlsk beLween
Lhe parLlesŦ
More CIarification on Incoterms
LxW (AL Lhe named place)
Lx Worksť Lx means fromŦ Works means facLorvţ mlll or warehouseţ whlch are Lhe seller's
premlsesŦ LxW applles Lo aoods avallable onlv aL Lhe seller's premlsesŦ 8uver ls responslble for
loadlna Lhe aoods on Lruck or conLalner aL Lhe seller's premlses and for Lhe subsequenL cosLs
and rlsksŦ ln pracLlceţ lL ls noL uncommon LhaL Lhe seller loads Lhe aoods on Lruck or conLalner
aL Lhe seller's premlses wlLhouL charalna loadlna feeŦ 1he Lerm LxW ls commonlv used
beLween Lhe manufacLurer (seller) and exporLŴLrader (buver)ţ and Lhe exporLŴLrader resells on
oLher Lrade Lerms Lo Lhe forelan buversŦ Some manufacLurers mav use Lhe Lerm Lx lacLorvţ
whlch means Lhe same as Lx WorksŦ
FCA (At the named point of departure)
lree Carrlerť
1he dellverv of aoods on Lruckţ rall car or conLalner aL Lhe speclfled polnL of deparLureţ
whlch ls usuallv Lhe sellers premlsesţ or a named rallroad sLaLlon or a named carao
Lermlnal or lnLo Lhe cusLodv of Lhe carrlerţ aL seller's expenseŦ 1he polnL (depoL) aL
orlaln mav or mav noL be a cusLoms clearance cenLreŦ 8uver ls responslble for Lhe maln
carrlaae/frelahLţ carao lnsurance and oLher cosLs and rlsksŦ
ln Lhe alr shlpmenLţ Lechnlcallv speaklnaţ aoods placed ln Lhe cusLodv of an alr carrler are
consldered as dellverv on board Lhe planeŦ ln pracLlceţ manv lmporLers and exporLers sLlll use
Lhe Lerm lC8 ln Lhe alr shlpmenLŦ
FAS (At the named port of origin)
lree Alonaslde Shlpť
Coods are placed ln Lhe dock shed or aL Lhe slde of Lhe shlpţ on Lhe dock or llahLerţ wlLhln reach
of lLs loadlna equlpmenL so LhaL Lhev can be loaded aboard Lhe shlpţ aL seller's expenseŦ
8uver ls responslble for Lhe loadlna feeţ maln carrlaae/frelahLţ carao lnsuranceţ and
oLher cosLs and rlsks ln Lhe exporL quoLaLlonţ lndlcaLe Lhe porL of orlaln(loadlna)afLer
Lhe acronvm lASţ for example lAS new ?orkand lAS 8remenŦ 1he lAS Lerm ls popular ln
Lhe breakŴbulk shlpmenLs and wlLh Lhe lmporLlna counLrles uslna Lhelr own vesselsŦ
FOB (At the named port of origin)
lree on 8oardť 1he dellverv of aoods on Lhe board Lhe vessel aL Lhe named porL of orlaln
(Loadlna) aL seller's expenseŦ 8uver ls responslble for Lhe maln carrlaae/frelahLţ carao
lnsurance and oLher cosLs and rlsksŦ ln Lhe exporL quoLaLlonţ lndlcaLe Lhe porL of orlaln
(loadlna) afLer Lhe acronvm lC8ţ for example lC8 vancouver and lC8 ShanahalŦ under
Lhe rules of Lhe lnCC1L8MS 1990ţ Lhe Lerm lC8 ls used for ocean frelahL onlvŦ Poweverţ
ln pracLlceţ manv lmporLers and exporLers sLlll use Lhe Lerm lC8 ln Lhe alr frelahLŦ ln
norLh Amerlcaţ Lhe Lerm lC8 has oLher appllcaLlonsŦ Manv buvers and sellers ln Canada
and Lhe uSA deallna on Lhe open accounL and conslanmenL basls are accusLomed Lo
uslna Lhe shlpplna Lerms lC8 Crlaln and lC8 desLlnaLlonŦ lC8 Crlaln means Lhe buver ls
responslble for Lhe frelahL and oLher cosLs and rlsksŦ lC8 uesLlnaLlon means Lhe seller ls
responslble for Lhe frelahL and oLher cosLs and rlsks unLll Lhe aoods are dellvered Lo Lhe
buver's premlses whlch mav lnclude Lhe lmporL cusLom clearance and pavmenL of
lmporL cusLoms duLles and Laxes aL Lhe buver's counLrvţ dependlna on Lhe aareemenL
beLween Lhe buver and sellerŦ

INCC1LkM5 (Inena|na| Cmmen|a| 1ems)Ŧ
Cl8 (AL Lhe named porL of desLlnaLlon)
CosL and lrelahLť
1he dellverv of aoods Lo Lhe named porL of desLlnaLlon (dlscharae) aL Lhe seller's
expensesŦ 8uver ls responslble for Lhe carao lnsurance and oLher cosLs and rlsksŦ 1he
Lerm Cl8 was formerlv wrlLLen as CƎlŦ Manv lmporLers and exporLers worldwlde sLlll
use Lhe Lerm CƎlŦ
Cll (AL named porL of desLlnaLlon)
CosLţ lnsurance and lrelahLť 1he carao lnsurance and dellverv of aoods Lo Lhe named
porL of desLlnaLlon (dlscharae) aL Lhe seller's expenseŦ 8uver ls responslble for Lhe
lmporL cusLoms clearance and oLher cosLs and rlsksŦ ln Lhe exporL quoLaLlonţ lndlcaLe
Lhe porL of desLlnaLlon (dlscharae) afLer Lhe acronvm Cllţ for example Cll Þusan and Cll
SlnaaporeŦ under Lhe rules of Lhe lnCC1L8MS 1990ţ Lhe Lerm Clll ls used for ocean
frelahL onlvŦ Poweverţ ln pracLlceţ manv lmporLers and exporLers sLlll use Lhe Lerm Cll ln
Lhe alr frelahLŦ
CÞ1 (AL Lhe named place of desLlnaLlon)
Carrlaae pald 1oť
1he dellverv of aoods Lo Lhe named porL of desLlnaLlon (dlscharae) aL Lhe seller's
expensesŦ 8uver assumes Lhe carao lnsuranceţ lmporL cusLom clearanceţ pavmenL of
cusLom duLles and Laxesţ and oLher cosLs and rlsksŦ ln Lhe exporL quoLaLlonţ lndlcaLe Lhe
porL of desLlnaLlon (dlscharae) afLer Lhe acronvm CÞ1ţ for example CÞ1 Los Anaeles and
CÞ1 CsakaŦ

ClÞ (AL Lhe named place of desLlnaLlon)
Carrlaae and lnsurance Þald 1oť 1he dellverv of aoods and Lhe carao lnsurance Lo Lhe
named place of desLlnaLlon (dlscharae) aL seller's expenseŦ 8uver assumes Lhe lmporLer
cusLoms clearanceţ pavmenL of cusLoms duLles and Laxesţ and oLher cosLs and rlsksŦ
uAl (AL Lhe names polnL aL fronLler)
uellvered aL lronLlerť 1he dellverv of aoods aL Lhe speclfled polnL aL Lhe fronLler on
seller's expenseŦ 8uver ls responslble for Lhe lmporL cusLom clearanceţ pavmenL of
cusLom duLles and Laxesţ and oLher cosLs and rlsksŦ
uLS (AL named porL of desLlnaLlon)
uellvered Lx Shlpť
1he dellverv of aoods on board Lhe vessel aL Lhe named porL of desLlnaLlon (dlscharae) aL
sellers expenseŦ 8uver assumes Lhe unloadlna freeţ lmporL cusLoms clearanceţ pavmenL
of cusLoms duLles and Laxesţ carao lnsuranceţ and oLher cosLs and rlsksŦ
uLC (AL Lhe named porL of desLlnaLlon)
uellvered Lx Cuavť
1he dellverv of aoods Lo Lhe Cuav (Lhe porL) aL Lhe desLlnaLlon on Lhe buvers expenseŦ
Seller ls responslble for Lhe lmporLer cusLoms clearanceţ pavmenL of cusLoms duLles and
Laxesţ aL Lhe buvers endŦ 8uver assumes Lhe carao lnsurance and oLher cosLs and rlsksŦ
uuu (AL Lhe named polnL of desLlnaLlon)
uellvered uuLv unpaldť
1he dellverv of aoods and Lhe carao lnsurance Lo Lhe flnal polnL of desLlnaLlonţ whlch are ofLen
Lhe pro[ecL slLe or buvers premlses aL sellers expenseŦ 8uver assumes Lhe lmporL
cusLoms clearanceţ pavmenL of cusLoms duLles and LaxesŦ 1he seller mav opL noL Lo
lnsure Lhe aoods aL hls/her own rlsksŦ
uuÞ (AL Lhe named polnL of desLlnaLlon)
uellvered uuLv Þaldť
1he seller ls responslble for mosL of Lhe expenses whlch lnclude Lhe carao lnsuranceţ
lmporL cusLom clearanceţ and pavmenL of cusLom duLlesţ and Laxes aL Lhe buvers endţ
and Lhe dellverv of aoods Lo Lhe flnal polnL of desLlnaLlonţ whlch ls ofLen Lhe pro[ecL slLe
or buvers premlseŦ 1he seller mav opL noL Lo lnsure Lhe aoods aL hls/her own rlskŦ ºL"Ŵ
Lermţ ºl"ŴLermţ ºC"ŴLerm Ǝ ºu"ŴLermť lncoLerms 2000ţ llke lLs lmmedlaLe predecessorţ
aroups Lhe Lerm ln four caLeaorles denoLed bv Lhe flrsL leLLer ln Lhe LhreeŴleLLer
abbrevlaLlonŦ under Lhe ºL"Ŵ1L8M (LxW)ţ Lhe seller onlv makes Lhe aoods avallable Lo
Lhe buver aL Lhe seller's own premlsesŦ lL ls Lhe onlv one of LhaL caLeaorvŦ
under Lhe ºl"Ŵ1L8M (lCAţ lASţ ƎlC8)ţ Lhe seller ls called upon Lo dellver Lhe aoods Lo
a carrler appolnLed bv Lhe buverŦ
under Lhe ºC"Ŵ1L8M (Cl8ţ Cllţ CÞ1ţ Ǝ ClÞ)ţ Lhe seller has Lo conLracL for carrlaaeţ buL
wlLhouL assumlna Lhe rlsk of loss or damaae Lo Lhe aoods or addlLlonal cosL due Lo
evenLs occurrlna afLer shlpmenL or dlscharaeŦ

under Lhe ºu"Ŵ1L8M (uAlţ uLCţ uLSţ uuu Ǝ uuÞ)ţ Lhe seller has Lo bear all cosLs and
rlsks needed Lo brlna Lhe aoods Lo Lhe place of desLlnaLlonŦ All Lerms llsL Lhe seller's and
buver's obllaaLlonsŦ 1he respecLlve obllaaLlons of boLh parLles have been arouped under
up Lo 10 headlnas where each headlna on Lhe seller's slde ºmlrrors" Lhe equlvalenL
poslLlon of Lhe buverŦ Lxamples are uellvervţ 1ransfer of rlsksţ and ulvlslon of cosLsŦ
1hls lavouL helps Lhe user Lo compare Lhe parLv's respecLlve obllaaLlons under each
lncoLermsŦ



uCCuMLn1S 8LLA1Lu 1C SPlÞMLn1
(l) SHlPPlt6 ßlll
1he shlpplna blll ls Lhe maln documenL on Lhe basls of whlch Lhe cusLoms permlsslon ls
alvenŦ under manual processlna of exporL documenLsţ Lhe exporLer ls requlred Lo flle
Lhe approprlaLe Lvpe of shlpplna blll Lo seek Lhe order for cusLoms clearance of Lhe
exporL shlpmenLŦ under compuLerlzed processlnaţ Lhe exporLer does noL prepare Lhe
shlpplna blllŤ lnsLead lL ls compuLer aeneraLedŦ 1he cusLoms order ls called ºLL1 LxÞC81
Crder"Ŧ AfLer Lhe shlpplna blll ls sLamped bv Lhe cusLomsţ Lhen onlv Lhe aoods are
allowed Lo be carLed Lo Lhe docksŦ
1he shlpplna blll conLalns Lhe followlna parLlcularsť
(A) naLure of aoods exporLedţ
(8) name of vesselţ masLer or aaenLsţ
(C) llaaţ
(u) CounLrv of desLlnaLlonţ Lhe porL aL whlch Lhe aoods are Lo be dlscharaedţ
(L) LxporLer's addressţ
(l) lmporLer's addressţ
(C) ueLalls of Lhe packaaesţ such as numbers and marksţ
(P) CuanLlLv deLalls of each caseţ LoLal number of cases and aaareaaLe welahLţ
(l) lŦCŦ8Ŧ prlces and real value as deflned ln Lhe Sea CusLoms AcL and
(!) WheLher Lhe merchandlse ls lndlan or forelan orlaln whlch ls reŴexporLedŦ

1he shlpplna blll ls prepared ln flve coplesť
1Ŧ CusLoms copv
2Ŧ urawback copv
3Ŧ LxporL ÞromoLlon copv
4Ŧ ÞorL 1rusL copv and
3Ŧ LxporLers copv
lmporLance of Shlpplna 8lll
(A)lL ls an lmporLanL documenL requlred bv Lhe cusLoms auLhorlLles for clearance of aoodsŦ
1he cusLoms auLhorlLles endorse Lhe dupllcaLe copv of Lhe shlpplna blll wlLh" LeL LxporL
Crder" and ºLeL Shlp Crder"Ŧ
(8) AfLer Lhe clearance of cusLomsţ exporLer can load Lhe aoods on shlpŦ
(C)Shlpplna blll endorsed bv Lhe cusLoms auLhorlLles faclllLaLes Lhe exporLer Lo clalm lncenLlves
such as exclse duLv refund and duLv drawbackŦ


1vpes of Shlpplna 8llls
(1)lree Shlpplna 8lllť
lL ls used ln case of aoods whlch nelLher aLLracL anv exporL duLv nor enLlLled for duLv drawbackŦ
lL ls prlnLed on slmple whlLe paperŦ
(2)uuLlable Shlpplna 8lllť
lL ls used ln case of aoodsţ whlch aLLracL exporL duLvŦ lL mav or mav noL be enLlLled Lo
duLv drawbackŦ lL ls prlnLed on vellow paperŦ
(3)urawback Shlpplna 8lllť
lL ls used ln case when refund of duLles ls allowed on Lhe aoods exporLedŦ Cenerallvţ lL ls
prlnLed on areen paperţ buL when Lhe drawback clalm ls pald Lo a bankţ Lhen lL ls
prlnLed on vellow paperŦ
(4)Shlpplna blll for ShlpmenL LxŴ8ondť
lL ls used ln case of lmporLed aoods for reŴexporL and whlch are kepL ln bondŦ lL ls
prlnLed on vellow paperŦ
(3)CoasLal Shlpplna 8lllť
lL ls used ln case of shlpmenL LhaL ls moved from one porL Lo anoLher porLţ bv seaţ wlLhln
lndlaŦ lL ls noL an exporL documenLŦ When aoods are senL bv seaţ lL ls called Shlpplna 8lll
and lL ls Alrwav blll when aoods are senL bv AlrŦ
(ll) HATF'S RFCFlPT
A maLe's recelpL ls lssued bv Lhe maLe (asslsLanL Lo Lhe capLaln of Lhe shlp) afLer Lhe
carao ls loaded lnLo Lhe shlpŦ lL ls an acknowledamenL LhaL Lhe aoods have been
recelved on board Lhe shlpŦ
ConLenLs of MaLe's 8ecelpL
MaLe' recelpL conLalns Lhe deLalls abouL
1Ŧ name of Lhe vesselţ
2Ŧ uaLe of shlpmenLţ
3Ŧ 8erLhţ
4Ŧ Marksţ
3Ŧ numbersţ
6Ŧ uescrlpLlon and condlLlon of aoods aL Lhe Llme Lhev are shlppedţ porL of loadlnaţ
7Ŧ name and address of Lhe shlpperţ
8Ŧ name and address of Lhe lmporLer(conslanee) and
9Ŧ CLher requlred deLallsŦ
Types of Mate's Receipts
MaLe's recelpL can be clean or quallfledŦ
(A)Clean MaLe's 8ecelpLť
MaLe of Lhe shlp lssues a clean maLe's recelpL lf Lhe condlLlonţ quallLv of Lhe aoods and
Lhelr packlna are proper and free from defecLsŦ
(8)Cuallfled MaLe's 8ecelpLť
lf Lhe maLe's recelpL conLalns anv adverse remarks as Lo Lhe quallLv or condlLlon of Lhe
aoods/packlnaţ lL ls known as 'Cuallfled MaLe's 8ecelpL'Ŧ lf Lhe aoods are noL packed
properlv and Lhe maLe's recelpL conLalns anv adverse remarks abouL Lhe packlna such as
ºÞoor Þacklna'ţ Lhe shlpplna companv does noL assume anv responslblllLv ln respecL of
Lhe aoods durlna LranslLŦ lL ls necessarv for Lhe exporLer Lo secure Lhe maLe's recelpL
wlLhouL anv adverse remarksŦ Cn Lhe basls of Lhe maLe's recelpLţ Lhe 8lll of Ladlna ls
prepared bv Lhe shlpplna aaenLŦ lf Lhere are adverse remarks ln Lhe maLe's recelpLţ Lhe
same wlll be lncorporaLed ln Lhe 8lll of Ladlnaţ whlch mav Lurn Lo become a claused 8lll
of Ladlnaţ and Lhls mav noL be accepLable for neaoLlaLlonŦ MaLe's recelpL ls flrsL handed
Lo Lhe ÞorL 1rusL AuLhorlLles who hands over Lo Lhe exporLer soon afLer he clears Lhelr
duesŦ 1hls procedure ls adopLed Lo faclllLaLe for collecLlon of porL dues from Lhe
exporLerŦ
Slanlflcance of MaLe's 8ecelpL
(1)MaLe's recelpL ls an acknowledamenL of aoodsŦ lL ls noL a documenL of LlLleŦ
(2)lL ls lssued Lo enable Lhe exporLer or hls aaenL Lo secure blll of ladlna from Lhe shlpplna
companvŦ
(3)8lll of Ladlnaţ whlch ls Lhe LlLle Lo Lhe aoodsţ ls prepared on Lhe basls of MaLe's recelpL so lL
should be obLalned wlLhouL anv adverse remarksŦ
(4)ÞorL 1rusL AuLhorlLles are enabled Lo collecL Lhelr dues as lL ls rouLed Lhrouah LhemŦ
(lll) CarL 1lckeL
A carL LlckeL ls also known as carL chlLŦ 1hls ls prepared bv Lhe exporLerţ whlch conLalns
Lhe deLalls of Lhe vehlcle numberţ descrlpLlon of aoodsţ quanLlLvţ name of Lhe shlpperţ
shlpplna blll number and porL of desLlnaLlonŦ 1he drlver of Lhe vehlcle carrles Lhe carL
LlckeLŦ AL Lhe Llme of enLrv lnLo ÞorLţ Lhe carL LlckeL ls verlfled bv Lhe ÞorL AuLhorlLles Lo
saLlsfv LhaL Lhe vehlcle ls carrvlna onlv Lhose aoodsţ whlch are menLloned ln Lhe carL
LlckeLŦ AfLer belna saLlsfledţ Lhe aaLekeeper/warden/lnspecLor lssues Lhe aaLe pass Lo
Lhe drlver and allows enLrv of Lhe vehlcle lnLo Lhe premlses of Lhe porLŦ
(lv) CerLlflcaLe of MeasuremenL
lrelahL ls charaed elLher on Lhe basls of welahL or measuremenLŦ When welahL ls Lhe
basls of measuremenLţ Lhe shlpplna companv for Lhe purpose of calculaLlon of frelahL
mav accepL Lhe welahL declared bv Lhe exporLerŦ Poweverţ when measuremenL ls Lhe
basls for calculaLlon of frelahLţ Lhe shlpplna companv mav lnslsL on a cerLlflcaLe lssued
bv Chamber of Commerce or oLher approved oraanlzaLlon ln respecL of aoodsŦ 1he
cerLlflcaLe of measuremenL conLalns Lhe deLalls ln respecL of descrlpLlon of aoodsţ
quanLlLvţ lenaLhţ breadLh and depLh of Lhe packaaesţ name of Lhe vessel and porL of
desLlnaLlon of Lhe carao eLcŦţ
(v) 8lll of Ladlna
8lll of Ladlna ls a documenL lssued bv Lhe shlpplna companv or hls aaenL acknowledalna
Lhe recelpL of carao on boardŦ 1hls ls an underLaklna Lo dellver Lhe aoods ln Lhe same
order and condlLlon as recelved Lo Lhe conslanee or hls aaenL on recelpL of frelahLţ Lhe
shlpplna companv ls enLlLled LoŦ lL ls a verv lmporLanL documenL Lo Lhe exporLer as lL
consLlLuLes documenL of LlLle Lo Lhe aoodsŦ Lach shlpplna companv has lLs own blll of
ladlnaŦ 1he exporLer prepares Lhe blll of ladlna ln Lhe form obLalned from Lhe shlpplna
companv or aaenLs of shlpplna companvŦ 1he aoods can be conslaned Lo order of Lhe
exporLerţ whlch means Lhe exporLer can auLhorlze someone else Lo recelve Lhe aoods
on hls behalfŦ ln such a caseţ Lhe exporLer would dlscharae Lhe blll of ladlna on lLs
reverseŦ When Lhe blll of ladlna ls neaoLlaLed Lhrouah Lhe bankţ lL would be endorsed ln
favour of Lhe bank LhaL would endorse furLher Lo Lhe lmporLerţ on recelpL of pavmenLŦ
8lll of Ladlna ls made ln slaned seL of 2 orlalnalsţ anv one of whlch can alve LlLle Lo Lhe
aoodsŦ 1he shlpplna companv also lssues nonŴneaoLlable coples (unslaned) whlch are
noL documenLs of LlLle Lo aoods buL serves Lhe purpose of record onlvŦ 1he reverse slde
of 8lll of Ladlna conLalns Lhe Lerms and condlLlons of Lhe conLracL of carrlaaeŦ 1he
clauses on mosL of Lhe bllls of ladlna are commonŦ A 8lll of ladlna should be clean Lo
faclllLaLe Lhe exporLer Lo obLaln Lhe proceeds of exporL wlLhouL dlfflculLvŦ

1vpes of 8lll of Ladlna
(1) 8ecelved for ShlpmenL 8/Lť A shlpplna companv lssues lL when aoods have been alven Lo Lhe
cusLodv of Lhe shlpplna companvţ buL Lhev have noL been placed on boardŦ
(2)Cn 8oard Shlpped 8/Lť 1he shlpplna companv cerLlfles LhaL Lhe carao has been recelved on
board Lhe shlpŦ
(3)Clean 8/Lť lL lndlcaLes a clean recelpLŦ ln oLher wordsţ lL lmplles LhaL Lhere has been no
defecL ln Lhe apparenL order or condlLlon of aoods aL Lhe Llme of recelpL or shlpmenL of aoods
bv Lhe shlpplna companvŦ
(4)Claused or ulrLv 8/Lť lL shows LhaL Lhe 8/L ls quallfled whlch expresslv declares a defecLlve
condlLlon of aoodsŦ 1he clause mav sLaLe ºbale number 3 hookŴdamaaed" or ºpackaae number
10 broken"Ŧ 8v superlmposlna Lhls Lvpe of clauseţ Lhe shlpplna companv ls llmlLlna lLs
responslblllLv aL Lhe Llme of dellverv of aoodsţ aL Lhe desLlnaLlonŦ lL ls verv lmporLanL Lo noLe
LhaL bank accepLs onlv a clean 8/L aL Lhe Llme of neaoLlaLlonŦ
(3))1ransshlpmenL or 1hrouah 8/Lť When Lhe [ournev covers several modes of LransporL from
Lhe place of sLarLlna Lo Lhe place of desLlnaLlonţ Lhls Lvpe of 8/L ls LakenŦ lL lndlcaLes LhaL
LransshlpmenL would be en rouLeŦ lor exampleţ parL of Lhe [ournev ls bv shlp and Lhe resL of
[ournev mav be bv roadţ rall and alrŦ
(6)SLale 8/Lť Accordlna Lo lnLernaLlonal commerclal pracLlceţ 8/L alona wlLh oLher documenLs
musL be presenLed Lo Lhe bank noL laLer Lhan LwenLv one davs of Lhe daLe of shlpmenL as alven
ln Lhe 8/LŦ ln some casesţ Lhe lmporLer mav lndlcaLe Lhe number of davs wlLhln whlch Lhe
documenLs are Lo be presenLed from Lhe daLe of shlpmenLŦ LxporLer has Lo complv wlLh Lhe
sLlpulaLlon lndlcaLedŦ CLherwlseţ Lhe 8/L becomes sLale and ls noL accepLed bv Lhe bank for
pavmenLŦ A sLale blll ls one whlch ls Lendered Lo Lhe presenLlna bank so laLe a daLe LhaL lL ls
lmposslble for Lhe bank Lo dlspaLch Lo Lhe conslanee's placeţ ln Llmeţ before Lhe aoods arrlve aL
Lhe desLlnaLlon porLŦ ln oLher wordsţ bank flnds lL lmposslble Lo see Lhe documenLs reach
before Lhe shlp reaches Lhe desLlnaLlonŦ
(7)1o Crder 8/Lť ln Lhls caseţ Lhe 8/L ls lssued Lo Lhe order of a speclfled personŦ
(8)CharLer ÞarLv 8/Lť lL covers shlpmenL on a charLered shlpŦ
(9)lrelahL pald 8/Lť When Lhe shlpper pavs Lhe frelahLţ Lhen Lhls Lvpe of 8/L ls lssued wlLh Lhe
words ºlrelahL pald"Ŧ
(10)lrelahL CollecL 8/Lť When Lhe frelahL on Lhe 8/L ls noL pald and Lo be collecLed aL Lhe polnL
of desLlnaLlonţ lL ls marked ºlrelahL CollecL" and Lhls 8/L ls known as ºlrelahL CollecL 8/L"Ŧ Who
can lodae clalmť 8/L ls Lhe onlv evldence Lo flle clalm aaalnsL Lhe shlpplna companv ln Lhe evenL
of nonŴdellvervţ defecLlve dellverv or shorL dellvervŦ lf Lhe lmporLer makes pavmenLţ he can
lodae Lhe clalmţ as he wlll be ln possesslon of neaoLlable copv of 8/LŦ CLherwlseţ exporLer can
lodae Lhe clalm and recelve Lhe value of aoodsŦ
ConLenLs of 8/L
1Ŧ name and address of Lhe shlpperŦ
2Ŧ name and address of Lhe vesselŦ
3Ŧ name of porL of loadlnaŦ
4Ŧ uaLe of loadlna of aoodsŦ
3Ŧ name of porL of dlscharae and place of dellvervŦ
6Ŧ CuanLlLvţ quallLvţ marks and oLher descrlpLlonŦ
7Ŧ number of packaaesŦ
8Ŧ lrelahL pald or pavableŦ
9Ŧ number of orlalnals lssuedŦ
10Ŧ name of Lhe shlpplna companvŦ
11Ŧvovaae number and daLeŦ
12ŦSlanaLure of Lhe lssulna auLhorlLvŦ


5IGNIICANCL C 8ILL C LADING
|ncc|tcnce tc tne Fxcc|te|
1ŦlL ls an acknowledamenL from Lhe shlpplna companv LhaL Lhe aoods have been recelved for
Lhe purpose of shlpmenLŦ
2ŦAfLer recelpL of 8/Lţ lL helps hlm Lo send Lhe shlpplna advlce Lo Lhe lmporLerŦ
3Ŧlf anv damaae occurs Lo Lhe carao durlna LranslLţ he can hold Lhe shlpplna companv
responslbleţ lf he has recelved clean blll of ladlnaŦ
4ŦA copv of blll of ladlna ls requlred Lo be aLLached Lo Lhe appllcaLlon form Lo clalm Lhe
lncenLlves
3ŦlL ls a conLracL of carrlaae beLween Lhe exporLer (shlpper) and Lhe shlpplna companvŦ
|ncc|tcnce tc tne |ncc|te|
1Ŧ lL ls a documenL of LlLle Lo Lhe aoodsţ whlch enables hlm Lo Lransfer Lhe LlLLle bv
endorsemenL and dellvervŦ
2Ŧ 1he exporLer can send a nonŴneaoLlable copv of 8/L as advance lnLlmaLlon of shlpmenL Lo Lhe
lmporLerŦ
3Ŧ lL enables hlm Lo pav Lhe frelahL amounL as Lhe 8/L conLalns frelahL deLallsŦ
lmporLance Lo Lhe Shlpplna Companv
1Ŧ lL helps Lhe shlpplna companv Lo collecL Lhe frelahL amounL from Lhe exporLer (Cll
conLracL) or lmporLer (lC8 conLracL)Ŧ
2Ŧ Shlpplna companv can proLecL lLself from Lhe wronaful clalms of exporLer/lmporLer bv
lncorporaLlna condlLlon of aoods/packaalnaţ aL Lhe Llme of recelpLŦ ln case Lheshlpplna
companvţ lnadverLanLlvţ omlLs Lo menLlon Lhe advesrse condlLonţ aL LheLlme of recelpLţ
advanLaae can be clalmed bv exporLer/lmporLerţ bv submlLLlna wronaful clalmŦ
(vl) Alrwav 8lll
Alrwav 8lll ls also called Alr conslanmenL noLeŦ lL ls a recelpL lssued bv an alrllne for Lhe carrlaae
of aoodsŦ As each shlpplna companv has lLs own 8lll of Ladlnaţ so each alrllne has lLs own alrwav
blllŦ Alrwav 8lll or Alr conslanmenL noLe ls noL LreaLed as a documenL of LlLle Lo aoods and ls noL
lssued ln neaoLlable formŦ uellverv of Lhe aoods ls made Lo Lhe conslanee wlLhouL Lhe
producLlon of alrwav blllŦ
lmporLance of Alrwav 8lll
1ŦlL ls a conLracL of carrlaae of aoods beLween Lhe conslanor and alrllnes or hls aaenLŦ
2ŦlL acLs as a cusLoms declaraLlon formŦ
3ŦlL conLalns deLalls of frelahL and so works as a frelahL blllŦ
(vll) 8lll of LnLrv
8lll of LnLrv ls a declaraLlon form made bv Lhe lmporLer or hls clearlna aaenL ln Lhe prescrlbed
form under 8lll of LnLrv 8eaulaLlonsţ 1971 on Lhe sLrenaLh of whlch clearance of lmporLed
aoods can be madeŦ When aoods are lmporLed lnLo a counLrvţ cusLoms duLv has Lo be pald bv
Lhe lmporLerŦ lor Lhls purposeţ lmporLer prepares Lhe 8lll of LnLrv declarlna Lhe value of aoodsţ
quanLlLv and descrlpLlonŦ 1hls ls prepared ln LrlpllcaLeŦ CusLoms auLhorlLles mav ask Lhe
lmporLer Lo produce Lhe lnvolce of Lhe exporLerţ broker's noLe and lnsurance pollcv Lo saLlsfv
abouL Lhe correcLness of value of aoods declaredŦ
lor Lhe purpose of alvlna lnformaLlonţ aoods are classlfled lnLo Lhree caLeaorlesŦ
(1) lree Coodsť 1hese aoods are noL sub[ecLed Lo anv cusLoms duLvŦ
(2) Coods for Pome ConsumpLlonť 1hese aoods are lmporLed for selfŴconsumpLlonŦ
(3) 8onded Coodsť Where aoods are sub[ecL Lo cusLoms duLvţ Llll duLv ls paldţ aoods are kepL ln
8ondŦ
ConLenLs of 8lll of LnLrv
1Ŧname and address of lmporLerŦ
2Ŧname and address of exporLerŦ
3ŦlmporL llcence numberŦ
4Ŧname of porL where aoods are Lo be clearedŦ
3ŦuesrlpLlon of aoodsŦ
6Ŧvalue of aoodsŦ
7Ŧ8aLe and value of lmporL duLv pavableŦ
8Ŧ8aLe and value of lmporL duLv pavableŦ
uCCuMLn1S 8LLA1Lu 1C ÞA?MLn1
(l ) LeLLer of CredlL
A leLLer of credlL ls a documenLŴconLalnlna auaranLee of a bank Lo make pavmenL Lo Lhe
exporLerţ under cerLaln condlLlons and up Lo a cerLaln amounLţ provlded Lhe condlLlons
conLalned ln Lhe leLLer of credlL are complled wlLhŦ lor a deLalled presenLaLlonţ reader mav
refer Lo Lhe chapLer on LxporL llnanclnaŦ
(ll ) 8lll of Lxchanae
1he neaoLlable lnsLrumenLs AcLţ 1881 deflnes a 8lll of Lxchanae as º an lnsLrumenL ln wrlLlna
conLalnlna an uncondlLlonal underLaklnaţ slaned bv Lhe makerţ dlrecLlna a cerLaln person Lo pav
a cerLaln sum of monev onlv Loţ or Lo Lhe order ofţ a cerLaln person or Lo Lhe bearer of Lhe
lnsLrumenL"Ŧ
1here are flve lmporLanL parLles Lo a 8lll of Lxchanaeť
1he urawerť 1he drawer ls Lhe person who has lssued Lhe blllŦ ln an exporL LransacLlonţ exporLer
draws Lhe blll as monev ls owed Lo hlmŦ 1he uraweeť 1he drawee ls Lhe person on whom Lhe
blll ls drawnŦ LxporLer draws Lhe blll on Lhe lmporLer who ls Lhe draweeŦ urawee ls Lhe debLor
who owes monev Lo Lhe exporLer (credlLor)Ŧ
1he Þaveeť 1he pavee ls Lhe person Lo whom Lhe monev ls pavableŦ 1he blll can be drawn bv
Lhe exporLer pavable Lo Lhe drawer (hlmself) or hls bankerŦ 1he Lndorserť 1he endorser ls Lhe
person who has placed hls slanaLure on Lhe back of Lhe blll slanlfvlna LhaL he has obLalned Lhe
LlLle for Lhe blll on hls own accounL or on accounL of Lhe orlalnal paveeŦ
1he Lndorseeť 1he endorsee ls Lhe person Lo whom Lhe blll ls endorsedŦ 1he endorsee can
obLaln Lhe pavmenL from Lhe drawerŦ
1vpes of 8llls of Lxchanae
(a)SlahL 8lll of Lxchanaeť ln Lhls 8lll of Lxchanaeţ also known as demand 8lll of Lxchanaeţ Lhe
drawee has Lo make Lhe pavmenLţ on presenLaLlonŦ
(b)usance 8lll of Lxchanaeť ln case of usance or 1lme 8lll of Lxchanaeţ pavmenL ls Lo be made
on Lhe maLurlLv daLeţ afLer a cerLaln perlodţ known as LenorŦ When Lhe calculaLlon of perlod ls
made wlLh reference Lo Lhe slahL of blllţ Lhe blll ls known as 'afLer slahL usance blll'Ŧ SomeLlmesţ
Lhe maLurlLv daLe ls calculaLed wlLh reference Lo Lhe daLe of blll of exchanaeţ lL ls known as
'afLer daLe usance blll'Ŧ
(c)Clean 8lll of Lxchanaeť A clean 8lll of Lxchanae ls one when Lhe relaLlve shlpplna documenLs
do noL accompanv wlLh lLŦ ln Lhls caseţ Lhe relaLlve shlpplna documenLs lŦeŦ 8lll of Ladlna ls senL
dlrecLlv Lo Lhe lmporLer Lo enable hlm Lo Lake dellverv of Lhe caraoŦ
(d)uocumenLarv 8lll of Lxchanaeť A documenLarv 8lll of Lxchanae ls one where Lhe relaLlve
shlpplna documenLs such as 8lll of Ladlnaţ marlne lnsurance pollcvţ lnvolce and oLher
documenLs are senL alona wlLh Lhe 8lll of LxchanaeŦ 1hls ls Lhe common form ln exporL LradeŦ
1he documenLs are alven Lo Lhe bank elLher for collecLlon or neaoLlaLlonŦ ln case Lhe lmporLer
aeLs Lhe documenLs on accepLanceţ lL ls called uocumenLs aaalnsL AccepLanceŦ lf Lhe lmporLer
aeLs Lhe documenLs onlv on pavmenLţ lL ls called uocumenLs aaalnsL ÞavmenLŦ AfLer shlpmenL
of aoodsţ Lhe exporLer draws Lhe blll on Lhe lmporLer orţ more frequenLlvţ on bank acLlna for
Lhe lmporLerţ as aareed beLween Lhe exporLer and lmporLerŦ 1he exporLer usuallv draws Lhe blll
Lo hls own order or LhaL of hls bankŦ LaLerţ he endorses Lhe blll ln favour of hls bankŦ LxporLer
mav requesL hls bank Lo collecL or purchase Lhe blllŦ ln case of purchase of blllţ exporLer
recelves Lhe exporL proceeds lmmedlaLelvŦ ln anv caseţ Lhe exporLer's bank sends Lhe
documenLs Lo lLs branch or correspondenL's bank ln lmporLer's placeŦ 1he bank aL LhaL end
sends Lhe lnLlmaLlon of recelpL of documenLs Lo Lhe lmporLer elLher for accepLance or pavmenLţ
dependanL on Lhe naLure of blll drawnŦ ln case of uocumenLs aaalnsL accepLanceţ lmporLer
accepLs Lhe blll and Lhen onlv aeLs LlLle Lo aoodsŦ ln case of uocumenLs aaalnsL pavmenLţ
lmporLer has Lo make Lhe pavmenL for securlna dellverv of documenLsŦ
1rusL 8ecelpLť
ln case of u/Þ blllţ Lhe lmporLer has Lo make Lhe pavmenL Lo Lake dellverv of aoodsŦ lf Lhe
lmporLer ls unable Lo make Lhe pavmenLţ on arrlval of Lhe shlpmenLţ and Lake possesslon of
aoodsţ he execuLes a 1rusL 8ecelpL Lo Lake dellverv of aoodsŦ lmporLer wlll have Lhe rlahL Lo sell
Lhe aoods and would be acLlna as aaenL of Lhe bankŦ lmporLer wlll be deposlLlna Lhe sale
proceeds wlLh Lhe bankţ as and when sales are madeŦ 1lll Lhe lmporLer makes Lhe flnal
seLLlemenLţ bank reLalns ownershlp for Lhe merchandlse and Lhe role of Lhe lmporLer ls noL LhaL
of owner buL LhaL of aaenL Lo Lhe bankŦ 1hls arranaemenL faclllLaLes Lhe lmporLer Lo Lake
dellverv of aoods when sufflclenL funds are noL avallable wlLh hlmŦ 1hls faclllLv provldes Lhe
flexlblllLv Lo Lhe lmporLer whlle Lhe lnLeresLs of bank are proLecLedţ aL all LlmesŦ
8ank CerLlflcaLe of ÞavmenLť
lL ls a cerLlflcaLe lssued bv Lhe neaoLlaLlna bank Lo Lhe exporLer LhaL Lhe blll coverlna Lhe
shlpmenL has been neaoLlaLed Lhrouah lL and exporL proceeds have been recelved from Lhe
lmporLerŦ 1he cerLlflcaLe lndlcaLes Lhe deLalls of Lhe merchandlse exporLedŦ LxporLer submlLs
Lhls cerLlflcaLe of pavmenL for esLabllshlna LhaL Lhe exporL LransacLlon has been compleLed
LoLallv bv hlmŦ 1hls cerLlflcaLe ls requlred Lo complv wlLh Lhe requlremenLs for Lhe dlscharae of
exporL obllaaLlonŦ
DCCUMENIS FEL/IlNG IC lNSFECIlCN
CerLlflcaLe of lnspecLlon
lL ls a cerLlflcaLe lssued bv Lhe LxporL lnspecLlon Aaencv cerLlfvlna LhaL Lhe conslanmenL has
been lnspecLed under Lhe LxporL (CuallLv ConLrol and lnspecLlon) AcLţ 1963 and found LhaL Lhe
requlremenLs relaLlna Lo quallLv conLrol and lnspecLlon have been complled wlLhţ as appllcableţ
and Lhe aoods are exporL worLhvŦ
uCCuMLn1S 8LLA1Lu 1C LxClSA8LL CCCuS
(1) CÞ lorms
CÞ sLands for CaLe ÞassŦ A CÞ formţ aaLe passţ ls lssued for Lhe removal of exclsable aoods from
Lhe facLorv or warehouseŦ lorm CÞ1 ls lssued for Lhe removal of exclsable aoods on pavmenL of
duLvŦ CÞ2 ls lssued for Lhe removal of exclsable aoods wlLhouL pavmenL of duLvŦ
(2) lorm C
lL ls noL Lo be confused wlLh C formŦ lorm C ls used for applvlna for rebaLe of duLv on exclsable
aoods (oLher Lhan veaeLableţ nonŴessenLlal olls and Lea) exporLed bv seaŦ lL ls Lo be submlLLedţ
ln LrlpllcaLeţ Lo Lhe CollecLor of CenLral LxclseŦ
(3) lorms A84/A84A
1hese forms are meanL for removal of exclsable aoods for exporL bv sea/posLŦ nowţ ln Lhelr
placeţ A8LŴ1 form ls usedŦ
uCCuMLn1S 8LLA1Lu 1C lC8LlCn LxCPAnCL 8LCuLA1lCnSŴLLCAL
8LCuLA1Lu uCCuMLn1S
lorelan Lxchanae 8eaulaLlons requlre LhaL all exporLs oLher Lhan exporLs Lo nepal and 8huLan
shall be declared on Lhe followlna formsť
1Ŧ C8 lorm
C8 ls an exchanae conLrol documenL requlred bv 8eserve 8ank of lndlaŦ lL ls requlred Lo be
fllledţ ln dupllcaLeţ for all exporLs ln phvslcal form oLher Lhan bv posLŦ An exporLer has Lo reallze
Lhe exporL proceeds wlLhln a perlod of 180 davs from Lhe daLe of shlpmenLţ ln lndlaŦ 1o ensure
conLrol on reallzaLlonţ 88l has lnLroduced Lhls procedureŦ
C8 formţ ln dupllcaLeţ ls Lo be submlLLed bv Lhe exporLer Lo Lhe cusLoms alona wlLh Lhe
Shlpplna 8lllŦ CusLoms wlll alve Lhelr runnlna serlal number on boLh Lhe coplesŦ AfLer admlLLlna
Lhe cusLoms shlpplna blllţ cusLoms wlll cerLlfv Lhe value of aoods declared bv Lhe exporLer ln Lhe
space earmarked and also record Lhelr assessmenL of valueŦ CusLoms reLalns Lhe orlalnal copv
and reLurn Lhe dupllcaLe Lo Lhe exporLerŦ CusLoms sends Lhe orlalnal C8 form Lo 88lţ whlch wlll
be an lndlcaLlon of Lhe aoodsţ whlch are Lo be exporLedŦ LxporLer has Lo submlL Lhe dupllcaLe of
C8 form Lo Lhe auLhorlzed dealerţ named ln C8 formţ alona wlLh oLher shlpplna documenLs
wlLhln a perlod of 21 davs of shlpmenL for Lhe purpose of neaoLlaLlonŦ AfLer Lhe neaoLlaLlon of
blllţ Lhe auLhorlzed dealer wlll reporL Lhe LransacLlon of neaoLlaLlon Lo 88lŦ Cn recelpL of Lhe
orlalnalţ 88l ls apprlsed of Lhe developmenLs ln respecL of Lhe exporL LransacLlonŦ Cnce Lhe
exporL proceeds are recelved from Lhe lmporLerţ Lhe auLhorlzed dealer has Lo forward Lhe
dupllcaLe copv of C8 form LoaeLher wlLh Lhe copv of lnvolce Lo 88lŦ 88l recoanlzes LhaL Lhe
exporL LransacLlon has been concluded and exporL proceeds have been fullv reallzedŦ AL cerLaln
cusLoms offlcesţ shlpplna bllls are processed elecLronlcallvŦ Soţ aL Lhose offlcesţ C8 form has
been replaced bv Sul (SLaLuLorv ueclaraLlon lorm)Ŧ
2Ŧ ÞÞ lorm
lL ls requlred Lo be fllled ln for all exporL LransacLlonsţ ln dupllcaLeţ for all counLrles Lo be made
bv posL parcelţ excepL when made on ºvalue pavable" or ºcash on dellverv basls"Ŧ
3Ŧ vÞ/CCu lorm
lL ls requlred Lo be fllled for all exporL LransacLlons Lo all counLrles bv posL where Lhe exporL
proceeds are reallzed on ºvalue pavable" or ºcash on dellverv basls"Ŧ
3Ŧ SCl1Lx lorm
lL ls requlred Lo be preparedţ ln LrlpllcaLeţ for exporL of compuLer sofLware ln nonŴ phvslcal
formŦ All Lhe above documenLs serve Lhe purpose of monlLorlna Lhe reallzaLlon of exporL
proceeds ln Lhe sLlpulaLed mannerŦ

1ranslL 1lme
lor LuropeŴ
20Ŵ30 davs
lor Culf
3Ŵ10 davs
lor uŦSŦ
30Ŵ40 davs

8v AlrllnesŴ
LufLausa (Lurope)
Alr lndla
8rlLlsh Alrwavs
LmlraLes
kLM
uuLch
CaLar

Pambura Sud
Maersk
Pappv Llovd
CMA CCM

ConsolldaLlons Ŷ
WSA
All Carao
lLSA
1rans Ŷalobal

ÞorL Ŷ Shlpplna uocumenLs
8lll of Ladlna
Shlpplna 8lll
Þacklna
M1C
lumlaaLlon CerLlflcaLe
Cur prlmarv ob[ecLlve of dolna Lhls pro[ecL ls Lo aeL Lhe flrsL hand knowledae of funcLlonlna of
an exporL houseŦ Slnce we are noL comparlna Lwo dlfferenL enLlLles on Lhe basls of Lhelr
flnanclal resulLsţ raLher we are learnlna Lhe exporL procedureŦ Pence exploraLorv research
deslan ls Lhe need of Lhe hourŦ





Cua|| Ǝ 1es|ng an||||es
We adhere Lo sLrlcL CuallLv ConLrol MeasuresŦ vlaorous LesLs are conducLed on all lncomlna raw
maLerlalţ lnLermedlaLe and flnlshed producLs Lo ensure besL quallLv producLs as per quallLv Assurance
ÞlanŦ A Leam of Lralned supervlsors and quallLv conLroled lnspecLors ensure LhaL Lhe quallLv ls
malnLalned aL all Lhe sLaaes of producLlonŦ
We alm Lo dellver hlah quallLv producLs LhaL conforms Lo dlfferenL lnLernaLlonal sLandards and cusLomer
speclflcaLlonŦ 1he process ls carefullv documenLed Lo ascerLaln conslsLenL and hlah quallLv baLches of
each producL loLŦ
AL MulLlmeLalsţ we use Lhe besL avallable LesLlna faclllLles for conducLlna Þhvslcalţ LlecLrlcalţ Mechanlcal
and oLher klnds of LesLs LhaL are requlred for assurlna superlor quallLv producLsŦ





Þ8CuuC1SŤŴ
CCÞÞLk 1U8L5
Þ8CuuC1 AÞÞLlCA1lCn A8LASŤŴ
uefenseţ 8efrlaeraLlonţ AlrŴCondlLlonlnaţ Þlumblnaţ Lnalneerlna AppllcaLlonţ LlecLrlcal
conducLors and 8us 8ars



CuNi, 00 CuNi and Cunifer Tubes

ÞroducL AppllcaLlon AreasŴ
Chlllersţ PeaL Lxchanaers Ǝ condensersţ Þower planLsţ 8eflnerlesţ uesallnaLlon ÞlanLsţ Shlp
8ulldlnas and Shlp 8epalrsţ 8epalrs



$ CuN| 1ubes
ÞroducL AppllcaLlon AreasŴ
Chlllersţ PeaL Lxchanaers Ǝ Condensersţ Þower ÞlanLs Ǝ 8eflnerlesţ uesallnaLlon ÞlanLsţ Shlp
8ulldlnas and Shlp 8epalrsţ uefense



70/30 Cunl 1ubes
ÞroducLs AppllcaLlon AreasŴ
Plah CapaclLv power planLsţ Shlp 8ulldlnas Ǝ Shlp 8epalrsţ PeaL Lxchanaers Ǝ Condensersţ
ulsLlller 1ubesţ LvaporaLorsţ lerrulesŦ


Adm|a| 8ass 1ubes
ÞroducL AppllcaLlon Ŷ
Plah CapaclLv power planLsţ Shlp 8ulldlnas Ǝ Shlp 8epalrsţ PeaL Lxchanaers Ǝ Condensersţ
ulsLlller 1ubesţ LvaporaLorsţ lerrulesŦ



AIuminium Brass Tubes-
ÞroducLs AppllcaLlon AreasŴ
Plah CapaclLv power planLsţ Shlp 8ulldlnas Ǝ Shlp 8epalrsţ PeaL Lxchanaers Ǝ Condensersţ
ulsLlller 1ubesţ LvaporaLorsţ lerrulesŦ


A|um|n|um 8nze 1ubesŴ
ÞroducL AppllcaLlon AreasŴ
Plah CapaclLv power planLsţ Shlp 8ulldlnas Ǝ Shlp 8epalrsţ PeaL Lxchanaers Ǝ Condensersţ
ulsLlller 1ubesţ LvaporaLorsţ lerrulesŦ







PL4N1 Ǝ M4cnlN£kY















ML1nCDCLCG¥


Cur prlmarv ob[ecLlve of dolna Lhls pro[ecL ls Lo aeL Lhe flrsL hand knowledae of funcLlonlna of
an exporL houseŦ Slnce we are noL comparlna Lwo dlfferenL enLlLles on Lhe basls of Lhelr
flnanclal resulLsţ raLher we are learnlna Lhe exporL procedureŦ Pence
LxploraLorv research deslan ls Lhe need of Lhe hourŦ
lurLher Lhere are few reasons whlch made me Lo use LxploraLorv CuallLaLlve researchť
lL ls noL alwavs deslrable or posslble Lo use fullv sLrucLured or formal meLhods Lo
obLaln lnformaLlon from respondenLsŦ
Þeople mav be unable Ǝ unwllllna Lo answer cerLaln quesLlons or unable Lo alve
LruLhful answersŦ
Þeople mav be unable Lo provlde accuraLe answer Lo quesLlon LhaL Lap Lhelr sub
consclousnessŦ



























C8LuLn1lALS/ AWA8uS

















RECOMMENDATIONS


lncrease uuLv drawback raLesŦ
MoraLorlum on 1erm Loans
lnLeresL SubvenLlon
CusLom and Lxclse uuLv on SvnLheLlcs
1echnoloav up aradaLlon and lund Scheme
LxempLlon from Servlce 1ax
8educLlon on cusLom duLv on manufacLurlna machlnerv
8efund of sLaLes Laxes Ǝ uuLles Lo LxporLers






























SUGGESTIONS



As MulLlmeLals ls a publlc secLor underLaklna Lhe exporL procedures and documenLaLlon
are alreadv preŴdeflned and preŴdeLermlned as per Lhe auldellnes of MulLlmeLals and lL
cannoL devlaLe from LhaLŦ

CurrenLlv MulLlmeLals cusLomer base ls concenLraLed onlv ln Lhe Luropean markeLŤ lL
can expand lLs cusLomer base furLher ouLslde Asla Lo make lLs alobal presence more
sLrona llke lLs compeLlLorsŦ


As far as Lhe documenLaLlon parL ls conslderedţ some documenLaLlon parL consumes
more Llme llke Lhe LŦCŤ also Lhere are manv lenaLhv proceduresŦ MulLlmeLals should opL
for a more smooLh procedure whlch consumes less LlmeŦ


CuallLv speclflcaLlons should be malnLalned so as lL conforms Lo Lhe sLandards
demanded bv Lhe buver so as Lo aeL mlnlmal number of cusLomer complalnLsŦ

MulLlmeLals has currenLlv lmplemenLed eŴexporL svsLem whlch some cusLomers are noL
verv convenlenL wlLh so MulLlmeLals should swlLch Lo a more userŴfrlendlv eŴsvsLem


MulLlmeLals should address Lhe cusLomer complalnLs more efflclenLlvŦ


















ANNEXURES

CL81lllCA1lCnS

lSC 9001Ť2008 CL81lllLu Ln1L8Þ8lSL
SelfŴCerLlflcaLlon Au 2000 MerkblaLL W6/2 lrom1uv nC8uţ Cermanv
Llvod's Work Approval for Marlne 1ubes and Þlpes
ÞLu CerLlflcaLlon for Þressure vessels ulrecLlve from 1uv nC8uţ Cermanv



MA!C8 vLnuC8 AÞÞ8CvALS

knÞC
1Ak8LL8
CLA
CA1A8 ÞL18CLLuM
AuMA CÞCC
u8?uCCkS WC8Lu
AunCC
LnClnLL8S lnulA LlMl1Lu
1P?SSLnk8uÞÞ








lotetvlew Ooestloos


MrŦ Chankv 1ane[a
Sales Cfflcerţ
LxporL Ǝ lmporL
MuL1lML1ALS L1uŦ


Pow an exporL order ls processed?

WhaL role Lhe dlfferenL deparLmenLs plav for Lhe compleLlon of Lhe exporL order?

WhaL role does merchandlslna deparLmenL plav ln an meLalllc producL exporL house?

WhaL are Lhe dlfferenL documenLs prepared Ǝ used for Lhe exporL?

Pow lmporLanL are Lhese documenLs?

WhaL are Lhe lncoLerms? Pow are Lhev lmporLanL?

WhaL ls a LeLLer of credlL? WhaL ls lLs slanlflcance?




BIBLIOGRAPHY
wwwŦmulLlmeLalsŦln
wwwŦwlklpedlaŦcom
wwwŦscrlbd/exporLŦdocŦ
wwwŦaooalebooksŦcom
wwwŦmlnlsLrvofcommerceŦcom
wwwŦbuslnessworldlndlaŦcom



kefeenne bk
Þurlţ vŦ kŦţ LxporLers' Culdellnesţ A 8aslc 8ook on Pow Lo LxporL as per CovLŦ
Þollcv Ǝ Þroceduresţ 2nd LdlLlonţ !8A Þubllshersţ 2008Ŵ09Ŧ
Þaulţ !usLln Ǝ Aserkarţ 8a[lvţ LxporL lmporL ManaaemenLţ 2nd LdlLlonţ Cxford
unlverslLv Þressţ 2009ţ ChapLer Ŷ 2ţ ppŦ 17Ŵ29Ŧ
MalhoLraţ naresh kŦţ MarkeLlna 8esearchţ An Applled CrlenLaLlonţ lourLh
LdlLlonţ Þearson ÞrenLlce Pallţ 2003ţ ÞarL llţ ppŦ 71Ŵ340Ŧ










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