DECLERATION

We U.NAVAS KHAN, S.HARIHARAN, G.RAVICHANDRAN, N.POONTHAMIZHAN,

D.SHATHISH, D.SUDHAGAR, V.LIJO PRAKASH, N.ARUNPRESATH hereby declare
that the relationship report on “VARIOUS SEGMENT OF THE GARMENT INDUSTRY’
submitted to the “BHARATHIYAR UNIVERSITY”, in partial fulfillment of the
requirement of the award of the degree of BACHELOR OF COMMERCE is a record
of original and independent work done by us during DECEMBER-2018 and it has
not formed on the award for any degree of similar title to any candidate in any
university.

NAME REGISTER.NO SIGNATURE OF

CANDIDATE

U.NAVAS KHAN 162AA3937 ----------------------------

S.HARIHARAN 162AA3029 ----------------------------

G,RAVICHANDRAN 162AA3039 ----------------------------

N.POONTHAMIZHAN 162AA3036 ----------------------------

S.SATHISH 162AA3037 ----------------------------

D.SUDHAGAR 162AA3040 ----------------------------

V.LIJO PRAKASH 162AA3027 ----------------------------

M.ARUN PRESATH 162AA3024 ---------------------------

STATION:

DATE :
ACKINOWLEDGEMENT
 ACKNOWLEDGEMENT
We wish to express our grateful thanks to our Principal
Dr.K.P.BALAKRISHNAN,M.Com.,MFC.,MBA.,M.Com(CA).,PGDMM.,M.Phil.,Ph.D.,
NIFT-TEA COLLEGE OF KNITWEAR FASHION, TIRUPUR-641606 for giving us an
opportunity and resources to carry out our work successfully.

We would like to express our deep sense of gratitude to out Vice-principal

Dr.A.DAYALARAJAN, MBA.,NET.,Ph.D., NIFT-TEA COLLEGE OF KNITWEAR
FASHION, TIRUPUR-641606 for giving us an opportunity and resources to carry
out our internship project work.

We wish our sincere gratitude to DR.S.KALAIYARASI, M.Com. ,M.Phil., MBA.,

NET., Ph.D Head of the department of commerce for giving us a successful
completion of this work.

We own our sincere thanks to our faculty guide Mrs.G.BHUVANESHWARI, M.Com

(IB)., MBA., M.Phil., Department of commerce for her contribution, which helped
us in completing our project work successfully.

We thank all other staff in NIFT-TEA COLLEGE OF KNITWEAR FASHION sincerely

for their guidance in completing our project work successfully.

We would like to express our profound thanks to my parents for their

benevolence and blessing all throughout the completion of this internship work.

U.NAVAS KHAN

D.SATHISH

G.RAVICHANDRAN

K.HARIHARAN

D.SUDHAGAR

N.POONTHAMIZHAN

N.ARUN PRASATH
INTRODUCTION
 CHAPTER-1
1.INTRODUCTION
Tirupur is administered by municipal corporation which was established in 2008 and
the total area of the corporation is 159.6 km2divided into 60 wards. The total population
of the city as per the 2011 census is 444,352. Tiruppur is a part of the Tiruppur
constituency that elects its member of parliament.
Tiruppur is a major textile and knit wear hub contributing to 90% of total cotton
knit wear exports from India.[7] The textile industry provides employment to over
six lakh people and contributed to exports worth ₹200 billion (US$2.8 billion) in 2014-
15.
Tiruppur is also known as the knitwear capital of India, accounting for 90% of
India's cotton knitwear export.] It has spurred up the textile industry in India for the past
three decades. It contributes to a huge amount of foreign exchange in India. In the Fiscal
year 2013, exports were ₹17,500. The city provides employment to around 400,000
workers, with the average salary per worker being around ₹ 9,000 per month.

Tiruppur formed a part of the Kongu nadu region ruled by

the Cheras during Sangam period The region was part of a prominent Roman trade
route that connected east and west coasts of India. The medieval Cholas conquered
the Kongu Nadu the 10th century CE and Chola stone carvings mention Noyyal River
and the fertile sand that it deposited on its banks.

‘
1.2HISTORY OF THE COMPANY
Prime tex was incorporated in the year as a Proprietary concern by Mr
Govindaraju in the year 1989 with 6 sewing machines in a rented building across
the road from his house in the city of Tirupur. As Aspirations of the entrepreneur
ran high, he had worked very hard to accomplish a business of very high ethics
and value towards relationship.
The customers were very happy with the service and quality offered and they
supported in our growth, our big break came when we had started working with
Mother care a UK brand, they helped us to focus on efficiency, quality and helped
us place systems that drive our business even today through their supplier
development programs. The stringent audits conducted by our buyers made our
factories better places to work in, this helped us bring in more employees and
higher output.
Through references from our major buyer we were able to attract new customers
who gave us business and enabled us to grow. The quality systems put in place is
similar and we have seen a win- win relationship where we have customers teach
and learn from us the best practices prevailing in the industry.
Our concentration was predominantly in the kids wear ready made garment, we
give special emphasis to the safety of the child by adopting all standards required
by the buyer and the standards of the importing country. Now we have ventured
into Men’s wear, Women’s wear too.
With growing demand for knitwear products from India we felt that having a
vertically integrated unit would enable us to cater to he markets in a quicker time,
as fashion has to reach the store very fast.

1.3VISION
To be able to serve our customer with best product and at the right time
and to satisfy all stakeholders of the business.
1.4 MISSION
To put in place systems, techniques, qualities, values and culture of
performance so that each element acts a catalyst towards satisfaction of our
customers.

1.5 ABOUT SRG APPARELS PVT.LTD

Prime Tex group is a world renowned Manufacture and Export of Knitted
Hosiery Garments, located in Tirupur , the knitwear capital of India. We supply to
retail fashion outlets, boutiques and private label companies with affordable high
fashion apparel, manufactured to the demand of designers.
We have highly skilled staff and good a network of suppliers which has allowed us
t consistently deliver high quality garments since our inception in the year last.
This has enabled us to earn a reputable name in the market as well as, to retain
many long term clients throughout the world. It is in our interest to some our
clients to succeed by delivering good value and high quality products.

1.6 INFRASTRUCTURE
A well- equipped and robust in infrastructure enable them to crave a
special for ourselves in today’s competitive scenario. Body land garment private
limited has in-house facilities for all operations to ensure smooth and effient
production. They ensure strict compliance with local labour laws, social
environment, product safety, pollution control effluent water plant, fire
equipement and needles detector machine. They take special care of our laborers
health and also have in-house clinie for free checkup.

Their unit possesses separate facilities for:

• Knitting

• Cutting

• Sewing

• Ironing

• Packing

• Dispatch
/

HUMAN
RESOURCE
DEPARTMENT
 HUMAN RESOURCES DEPARTMENT
A human resources department is a critical component of employee well-being
in any business, no matter how small. HR responsibilities include payroll, benefits,
hiring, firing, and keeping up to date with state and federal tax laws.

Any mix-up concerning these issues can cause major legal problems for your
business, as well as major employee dissatisfaction. But small businesses often
don't have the staff or the budget to properly handle the nitty-gritty details of HR.
Because of this, more and more small businesses are beginning to outsource their
HR needs.

HR outsourcing services generally fall into four categories: PEOs, BPOs, ASPs or e-
services. The terms are used loosely, so a big tip is to know exactly what the
outsourcing firm you're investigating offers, especially when it comes to
employee liability.

A Professional Employer Organization (PEO) assumes full responsibility for your

company's HR administration. It becomes a co-employer of your company's
workers by taking full legal responsibility of your employees, including having the
final say in hiring, firing, and the amount of money employees make. The PEO and
business owner become partners, essentially, with the PEO handling all the HR
aspects and the business handling all other aspects of the company.

By proper definition, a service is only a PEO when it takes legal responsibility for
employees. But take note--some HR outsourcing services like to use the
recognized term "PEO" when they handle the primary aspects of HR like payroll
and benefits, yet don't take this legal partnership.

Business Process Outsourcing (BPO) is a broad term referring to outsourcing in all

fields, not just HR. A BPO differentiates itself by either putting in new technology
or applying existing technology in a new way to improve a process. Specifically in
HR, a BPO would make sure a company's HR system is supported by the latest
technologies, such as self-access and HR data warehousing.

Application service providers (ASPs) host software on the Web and rent it to
users--some ASPs host HR software. Some are well-known packaged applications
(People Soft) while others are customized HR software developed by the vendor.
These software programs can manage payroll, benefits and more.

E-services are those HR services that are web-based. Both BPOs and ASPs are
often referred to as e-services.

It's important that you understand these service terms, but don't get too
sidetracked by the names when interviewing potential outsourcing firms. The key
to hiring the right outsourcing firm is knowing what services your company needs
and then find an outsourcing firm that can provide them.

When you outsource HR functions, some services go with the "all-or-nothing"

approach, requiring that they handle all your HR functions or none at all. Others
offer their services "a la carte," meaning you can pick and choose from the
services they offer. Typical services include:

 Payroll administration, including produce checks, handling taxes, and

dealing with sick time and vacation time.
 Employee benefits, including health, medical and life insurance, 401(k)
plans and cafeteria plans.
 HR management, including recruiting, hiring and firing. This also includes
background interviews, exit interviews and wage reviews.
 Risk management, including workers' compensation, dispute resolution,
safety inspection, office policies and handbooks.
PRODUCTION
DEPARTMENT
 PRODUCTION DEPARMENT
MEANING :
A production department is a group of functions within a business that is responsible for
the manufacture of goods. This can include just a few specialized functions with all other work
outsourced, or a fully functioning department that converts raw materials, assembles components
into finished goods, and packages them.polk hr

The production department can be the largest organization within a business. It may employee
mechanics, machine setup specialists, maintenance personnel, and machine operators.

HOW TO DO QUALITY ASSURANCE: COMPLETE PROCESS

Quality assurance has a defined cycle called PDCA cycle or Deming cycle. The phases of this cycle are:

 Plan
  Do
 Check
 Act

These above steps are repeated to ensure that processes followed in the organization are evaluated and
improved on a periodic basis. Let's look into the above steps in detail -

 Plan - Organization should plan and establish the process related objectives and determine the
processes that are required to deliver a high-Quality end product.
 Do - Development and testing of Processes and also "do" changes in the processes
 Check - Monitoring of processes, modify the processes, and check whether it meets the
predetermined objectives
 Act - Implement actions that are necessary to achieve improvements in the processes

An organization must use Quality Assurance to ensure that the product is designed and implemented
with correct procedures. This helps reduce problems and errors, in the final product.

OUR QUALITY POLICY

Our DEFINITION of quality is CONFORMATION TO REQUIREMENTS, having specified very
carefully the requirement of our customers, our supplies and our processors.

Our SYSTEM of quality Management concentrates on PREVENTION. LOOKING at our processes,

identification the opportunities for error and taking action to eliminate them.

PRODUCTS
o Newborn
o Baby Boys & Girls
o Toddlers Boys & Girls
o Accessories
o Gift box
BUYERS :
They have own buyers. Which mean they have showroom on “ America “ they manufacture the
products for the American showroom.

 We can own software for receiving orders.

FLOW PROCESS OF PRODUCTION :

Stepwise garments manufacturing sequence on industrial basis is given below:

Design / Sketch

↓
Pattern Design
↓
Sample Making
↓
Production Pattern
↓
Grading
↓
Marker Making
↓
Spreading
↓
Cutting
↓
Sorting/Bundling
↓
Sewing/Assembling
↓
Inspection
↓
Pressing/ Finishing
↓
Packing
Despatch
SAMPLING

THE DETAILS ATTACHED TO THE GARMENT SAMPLE

After the confirmation of order, each sample sent to the buyer has the following details attached to it,
with the help of a tag. It contains the details pertaining to both, what the buyer has demanded and what
supplement fabric/trim etc they have used (if applicable).

 Reference number
 Color
 Fabric
 Composition
 Description
 Quantity
 Style n0/ Size
 Store

TYPES OF SAMPLES

1. DESIGN DEVELOPMENT:
 This is the first sample which is made for any style by most of the buyer.
 Design development is either done by buyer or factory

2. PROTO SAMPLE:
 Proto sample is developed at very initial stage and normally order is confirmed to the factory
based on proto sample only.
 Normally, buyer send proto sample request to 2-3 factories.
 The factory which submits the good quality and optimum price will get confirmation from buyer.

3. FIT SAMPLE
Fit sample is made and send to conform the fit of the garment on live models or on dummy and
for approval of construction details.
At this stage of sampling, buyer makes sure that factory understands thoroughly the construction and
quality details and standards. The sample sent mostly in medium and large sizes mentioned by the
buyer.

4. SIZE SET SAMPLE:

  The main purpose of size set sample is to check the factory’s capability to make the sample in all
sizes.
 The size set sample should be made in the actual fabric and trims.

5. PRE- PRODUCTION SAMPLE: (PP SAMPLE)

 PP sample is considered to be a contract between the buyer and the factory.
 It has to be made in original fabric and trims
 Washing, embroidery and printing should match to actuals.

6. TOP SAMPLE (TOP OF PRODUCTION):

 The top of production is sent to the buyer as soon initial pieces are come out of sewing line with
suggestion of QA department.
 In TOP sample Buyer tries to evaluate the actual manufacturing of the style.
 Buyer check whether bulk production is as per submitted sample or not.

7. SHIPMENT SAMPLE:
 Few buyers may ask for the shipment samples which factory needs to pull form the actual
shipment and sent to buyer.
 The main purpose of this sample is to assure buyer about the actual shipment dispatch

INSPECTION :
Inspection can be defined, in the apparel industry, as the visual examination or review of raw
materials (such as fabric, Buttons, Zippers, Sewing threads, Trims, etc), partially finished components of
the garments and completely finished garments in relation to some standards, specifications or
requirements, as well as measuring the garments if they meet the required measurements.

For inspection, to be effective, the entire inspection loop must be completed.

 Garments inspect flow chart

INSPECTION MACHINE :
Any garment or piece of clothing is valued or purchased by measuring the quality of the fabric.
Whether it is the buyer, customer, or wholesaler of garments today all look for quality and standard
fabrics. Damage in fabrics can bring the cost down by 45 to 65 percent. Hence fabric inspection plays a
significant role in the process of making garments. The inspection is usually carried out before the
production of garments begins and checks the quality of the fabric, sewing thread, and the trims and
accessories.
SPREADING MACHINES USED IN GARMENT INDUSTRY:
DIfferent types of machines and equipments used in fabric spreading process. Basically they can
be classified in three categories. They are:
1. Manual spreading machines
2. Semi-automatic spreading machines
3. Fully automatic spreading machines
Either those types of garment spreading machine, various types of spreading machines and equipments
also used in apparel industry. They are described below.

GARMENT PATTERN:
Pattern is a hard paper which is made by following each individual component for a style of
garment or apparel. Actually pattern is a template from which the parts of a garment are traced onto
fabric before being cut out and assembled. It is one of the most important parts of garment
manufacturing industry. Pattern making is a highly skilled technique which calls for technical ability,
sensitivity for design interpretation and a practical understanding of garment construction. Pattern
making is a bridge function between design and production.
 Figure-1: Pattern making (Image courtesy: http://quickneed.com)

A basic or foundation pattern can be created by any of the two methods, namely, by drafting
or by draping fabric on a model. Pattern drafting is defined as a technique or method of drawing
patterns on brown paper with accuracy and precision, based on the body measurements or standard
measurement chart. This is an efficient and economical method and can be manipulated to create the
pattern for different styles by a technique known as flat pattern designing.

MANUAL MARKER PLANNING:

It is the conventional marker planning method and is still used by the garment industries where
they make single garment markers. The marker planner works easily by moving around the full-size
patterns until an acceptable marker plan is obtained. Multiple copies of the marker are usually required,
which can be done by reproducing the master marker with a range of duplicating methods.
CUTTING DEPARTMENT:
Cutting department is one of the most essential sections for garments manufacturing in the
apparel industry. The fabric cutting is started after completing the fabric spreading. In cutting section,
fabrics are cut according to the pattern. Perfect fabric cutting depends on the method of cutting
and marker planning. For making quality garments they have to follow a working procedure of cutting
department to continue their work. Here cutting is done in 2 ways.

 Manual cutting
 Machine cutting & automation cutting

MANUALCUTTING
We can understand scissor as a manual cutting machine. Scissor only used when cutting only single
or double plies. Almost every type of cloth is cut by scissor. But it takes huge time for fabric cutting. So it
is not used in bulk production.
MACHINE CUTTING:
 Here, knife is driven by using electric power.
 Straight edge is mostly used in straight knife.
 Here, blade stroke varies from 2.5 to 4.5 cm.
 During cutting, grinding wheel helps to sharp the cutting knife.
 Blade edge: straight edge, wave edge, saw edge, serrated edge
 This type of knife can cut heavy fabric i.e. canvas and denim fabric.

BATCH PRODUCTION
Batch production is where the manufacturing process is split into a number of different
operations; each of which is carried out on the whole batch before it is moved on and another batch
received. The batch is moved on from one stage of production to the next until all the manufacturing
processes are completed. Batch production involves the manufacture of a group of identical items and is
normally used when the demand for the product is relatively constant.
DEPARTMENT OF MACHINARY

MACHINES USED FOR GARMENT MANUFACTURING :

Garment manufacturing usually involves the use of purchased fabrics, although you could
produce your own fabrics as well as garments made from them. You could specialize in a certain apparel
manufacture, such as men’s wear, women's clothing or children’s wear. To start an apparel manufacture
enterprise, you must purchase various machines to produce quality garments.

PRESSING MACHINES
Pressing machines are used in the final stages of the apparel manufacturing process before
your products hit the market. There are different kinds of pressing machines with specific pressing
requirements due to the existence of numerous garment types. For example, a form finishing machine
helps you finish jackets, skirts and blouses. Small cabinet press machines are used to press shirts before
buttoning to avoid button marks on the final apparel. A tunnel finisher is needed when manufacturing
knitwear because it helps in gentle seaming and instant drying of the garment.

SEWING MACHINES
Garment manufacturing requires you to invest in sewing machines, which help to join various parts
of a garment. There are different kinds of sewing machines, depending on their specific applications. For
example, the pocket sewer machine is used for stitching pockets of blazers, while chain stitch is applied
in sewing woven and knit fabric. Making button holes in a garment requires a button hole sewing
machine, and a lock stitch machine would suffice for all kinds of apparel. A two-needle lock stitch
machine is efficient at making decorations on garments.

KNITTING EQUIPMENT
Knitting machines are used to manufacture knitted apparel. They include single jersey machine, flat
bed and double jersey knitting machine. Single jersey machines have a cylinder measuring 30 inches that
contains needles for producing plain fabrics. A double jersey machine contains extra needles that help in
producing items that are doubly thicker than single jersey garments. Flat bed knitting equipment is
versatile and helps you add parts, such as collars, v-necks and pockets to a garment. When selecting a
knitting machine, consider its brand reputation, model number, diameter, number of needles and
gauge.

GARMENT CHECKING :
Before packaging of garments must be check out. It is so much important before buying
whatever the garments is made by exporter or other foreign countries.

GARMENT PRESSING:
Pressing is an important finishing process done by subjecting a cloth to heat and pressure with
or without steam to remove unintended creases and to impart a flat appearance to the cloth or
garments. Also, apparel pressing is done to introduce creases in the garments. In apparel industries,
pressing is also called ironing. It is done by the pressing iron into the fabric, then lifting it back up to
move across the fabric, then pressing it down again.
GARMENT PACKAGING:
Garment packaging is the process of wrapping, compressing, filling or creating of goods
for the purpose of protection and their appropriate handling. This is the final process in the production
of garments, which prepares the finished merchandise for delivery to the customer. It is an important
part of the garment manufacturing process. Garment packaging is also use to get lot of attention from
the customer. These operations come under the materials handling methods and are no less important
than other systems used in the factory. After completing the entire manufacturing task, apparel is
required to be packed. After packing, it is placed in cartons as per instructions and then it is stored in a
store section before it is delivered to the respective buyer.

INSPECTION
Inspection can be defined, in the apparel industry, as the visual examination or review of raw
materials (such as fabric, Buttons, Zippers, Sewing threads, Trims, etc), partially finished components of
the garments and completely finished garments in relation to some standards, specifications or
requirements, as well as measuring the garments if they meet the required measurements.

For inspection, to be effective, the entire inspection loop must be completed.

AQL CHART FOR APPAREL INDUSTRY:
Almost every factory recommends Suppliers use a tighter AQL in executing their internal audit.
Please see the AQL chart below-
DESPATCHING :
Once the goods are ready for dispatch, they can be planned for shipment/air as per the
delivery schedule.

It will be handled by the clearing and forwarding agent, also have the document required to
meet the custom requirement.

The shipment will be planned on volume basis and the air shipment will be planned due to
unexpected situation.

The shipment must be done within the date given by the buyer. If there is any delay there is any delay
the buyer has to informed prior and amendments have to be approved by Him.

DOCUMENTATION FOR SHIPPING

1. Commercial invoice (After shipment).

2. Packing list (Size ratio in pack assortment).

3. GSM test report.

4. Booking list approval.

5. Bill of lading.

6. Cargo receive certificate.

7. Booking request approval copy.

8. Certificate of no child labor.

9. Certificate of AZO dye free.

10. Origin certificate.

ACCESSORIES
 ACCESSORIES

ACCESSORIES – MEANING :

Accessories department supplies required for the garments. It is also an important

department in the production unit. The main duty of this department is placing of order for accessories.

TYPES OF ACCESSORIES :
HANGERS :
 Top hanger
 Loop hanger
 Bottom hanger

LABLES
Size label

Brand label

BUTTONS
ZIPPERS
CARTON
PLAY BAG
HAND TAG
PRICE TAG
HOOK etc .
DOCUMENTATION
 DOCUMENTATION

DOCUMENTATION – MEANING
Documentation is a set of documents provided on paper, or online, or on digital or analog
media, such as audio tape or CDs. Examples are user guides, white papers, on-line help, quick-reference
guides. It is becoming less common to see paper (hard-copy) documentation. Documentation is
distributed via websites, software products, and other on-line applications.
Professionals educated in this field are termed document lists. This field changed its name
to information science in 1968, but some uses of the term documentation still exists and there have
been efforts to reintroduce the term documentation as a field of study.

INVOICE
An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale
transaction and indicating the products, quantities, and agreed prices for products or services the seller
had provided the buyer.
Payment terms are usually stated on the invoice. These may specify that the buyer has a
maximum number of days in which to pay and is sometimes offered a discount if paid before the due
date. The buyer could have already paid for the products or services listed on the invoice.
In the rental industry, an invoice must include a specific reference to the duration of the time
being billed So in addition to quantity, price, and discount, the invoice amount is also based on duration.
Generally, each line of a rental invoice will refer to the actual hours, days, weeks, months, etc., being
billed.

CONTENT OF A PACKING NOTE

Unlike invoice packing notes have few binding rules. However, you should still include some
basic information to help each party understand the contents of the package and to ensure clear
communication. A packing note should include

 The date of the order.

 An items list of the contents of the packages.
 A description of the contents including quantity, and sometimes weight, of each item.

You may also want to include a return address or codes for each item. Packing notes do not need to
include the price of the order
CERTIFICATE OF ORIGIN
A certificate of origin (often abbreviated to C/O or CoO) is a document used in international
trade. In a printed form or as an electronic document, it is completed by the exporter and certified by a
recognized issuing body, attesting that the goods in a particular export shipment have been produced,
manufactured or processed in a particular country. A "Certificate of Origin" is also called a "Form A"

DECUMENTS RELATED TO SHIPMENT :

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. It is a prima facie evidence that goods are loaded in the vessel. 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. Mate's receipt is freely transferable. It

must be handed over to the shipping company in order to get the bill of lading. Bill of lading is prepared

on the basis of the mate's receipt.

SHIPPING BILL
An exporter, while sending goods from one country to another has to go through various
formalities including submitting various applications, acquiring licenses, paying duties and so on. To
acquire a clearance for export, from the Customs, an exporter will have to submit an application called
the ‘shipping bill’. One cannot load the goods unless the exporter files the shipping bill. The export may
be by air, vehicle, or vessel.

CART TICKET :
A cart ticket is also known as cart chit. This is prepared by the exporter, which contains the details
of the vehicle number. Description of goods, quantity. Name of the shipper. Shipping bib number and
port of destination. The driver of the vehicle carries the cart ticket. At the time of entry into Port_ the
cart ticket is 'verified by the Port Authorities to satisfy that the vehicle is aiming only those goods which
are mentioned in the cart ticket. After being satisfied the gatekeeper/warden/inspector is-sues the gate
pass t the driver and of vehicle into the premises of the port.
CERTIFICATE OF MEASUREMENT
Freight is charged either on the basis of weight or measurement. When weight is the ba,;iq of

measurement, the shipping, company for the purpose of calculation of freight may accept the weight

declared by the exporter. However, when measurement is the basis for calculation of freight, the

shipping company may insist on a certificate issued by Chamber of Commerce or other approved

organization in respect of goods. The certificate of measurement contains the details in respect of

description of goods, quantity, length, breadth and depth of the packages, name of the vessel and port

of destination of the cargo etc.,

BILL OF LADING'

Bill of lading (BOL) is one of the most important documents in the shipping process. To ship any

goods, a bill of lading is required and acts as a receipt and a contract. A completed BOL legally shows

that the carrier has received the freight as described and is obligated to deliver that freight in good

condition to the consignee.

DOCUMENTS RELATED TO PAYMENT under INTERNATIONAL
TRADE
(1) Letter of Credit.

A letter of credit is a document-containing guarantee of a bank to make payment to the

exporter, under certain conditions and up to a certain amount, provided the conditions contained in the

letter of credit are complied with. For a detailed' presentation, reader may refer to the chapter on

Export Financing.

(2) Bill of Exchange

The Negotiable Instruments Act, 1881 defines a Bill of Exchange as " an instrument in writing

containing an unconditional undertaking, signed by the maker, directing a certain person to pay a

certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument".
 MAIN TYPES OF LC
 Irrevocable LC. This LC cannot be cancelled or modified without consent of the beneficiary (Seller). ...
 Revocable LC. ...
 Stand-by LC. ...
 Confirmed LC. ...
 Unconfirmed LC. ...
 Transferable LC. ...
 Back-to-Back LC. ...
 Payment at Sight LC.

PARTIES TO BILLS OF EXCHANGE

 THE DRAWER
 THE DRAWEE
 THE PAYEE
 THE ENDORSER
 THE ENDORSEE

TRUST RECEIPT :
A trust receipt is a notice of the release of merchandise to a buyer from a bank, with the bank
retaining the ownership title of the released assets. In an arrangement involving a trust receipt, the bank
remains the owner of the merchandise, but the buyer is allowed to hold the merchandise in trust for the
bank, for manufacturing or sales purposes.

BANK CERTIFICATE OF PAYMENT

It is a certificate issued by the negotiating bank to the exporter that the bill covering the shipment has

been negotiated through it and export proceeds have been received from the importer. The certificate

indicates the details of the merchandise exported. Exporter submits this certificate of payment for

establishing that the export transaction has been completed totally by him. This certificate is required to

comply with the requirements for the discharge of export obligation.

 CERTIFICATE OF INSPECTION
A document certifying that merchandise (such as perishable goods) was in good condition at
the time of inspection, usually immediately prior to shipment. Pre-shipment inspection is requirement
for importation of goods into many developing countries. When used as a required document under
letter of credit terms, the details and identity of the party providing the inspection should be
mentioned. If this not done, banks will accept any document appearing on its face to be an inspection
certificate issued by any party other than the beneficiary.

DOCUMENTS REQUIRED FOR IMPORT CUSTOMS CLEARANCE IN

INDIA
 Bill of Entry:
 Commercial Invoice.
 Bill of Lading / Airway bill :
 Import License.
 Insurance certificate.
 Purchase order/Letter of Credit.
 Technical write up, literature etc. for specific goods if any.
 Industrial License if any.

POST SHIPMENT CREDIT TO EXPORTERS

In this article, the details about post shipment finance credit to exporters is explained. This post

also describes about various types of post shipment finance provided by bank with the guidelines of

reserve bank. cost shipment credit is extended to exporters by bank with low interest rate till realization

of their export proceeds. Post shipment loan helps exporters to get finance without waiting amount of

sales from their overseas buyers.

TERMS OFPAYMENTININTERNATIONALTRADE.
If we do not go in detail about definition and deep parameters, I will call this slogan – ‘ Business is

money’. Although business man enjoy his day to day life in trade, if a loss occurs in business, everything

collapse. So payment of any sales proceeds plays a very important role than any other roles in business.
Most of the beginners of exports may worry about the terms of payment. Because, unlike other

domestic business, you are dealing with a buyer who situates thousands of miles away from your place

crossing borders of your country. You may or may not know the financial condition or credit worthiness

of your buyer. You may not be meeting the buyer personally at initial stage, may not be aware of the

specific policy of trade of buyer’s country, no idea about political status or natural calamity chances of

the region etc.etc.

ADVANCE PAYMENT :
An advance payment, or simply an advance, is the part of a contractually due sum that is paid or
received in advance for goods or services, while the balance included in the invoice will only follow the
delivery. Advance payments are recorded as a prepaid expenses in accrual accounting for the entity
issuing the advance. Advanced payments are recorded as assets on the balance sheet. As these assets
are used they are expended and recorded on the income statement for the period in which they are
incurred. Insurance is a common prepaid asset, which will only be a prepaid asset because it is a
proactive measure to protect business from unforeseen events.

DIFFERENT FINANCIAL INSTRUMENT USED IN SETTLEMENT :

TELEGRAPHIC TRANSFER :
Telegraphic transfers are usually fairly expensive due to the fast nature of the transaction.
Generally, the telegraphic transfer is complete within two to four business days depending on the origin
and destination of the transfer, as well as any currency exchange requirements. The cost associated with
a telegraphic transfer can also be affected by these variables. Additional factors affecting the cost can
include, but are not limited to, the amount being transferred and the institution chosen to complete the
transaction. Associated fees to complete the transfer are not standardized across all institutions and
therefore can vary dramatically from one institution to the next.

FOREIGN DRAFT
A foreign draft is an alternative to foreign currency. A foreign draft is a bank draft which is drawn
on a financial institution in the country of currency. They can be purchased at commercial banks and
usually have a fee depending on the institution and the type of account you hold.

TRAVELER'S CHECK
A traveler's check is a medium of exchange utilized as an alternative to hard currency. The
product typically is used by people on vacation in foreign countries. They offer a safe way to travel
overseas without cash. The issuing party, usually a bank, provides security against lost or stolen checks.
SWIFT :
Society for Worldwide Interbank Financial Telecommunications. Global communication network
that facilitates 24-hour secure international exchange of payment instructions between banks, central
banks, multinational corporations, and major securities firms. A member owned cooperative organized
in 1977 under Belgium law, it now includes over 6,500 participating members from more than 180
countries which together process in excess of a billion messages every year.

International Commercial Terms

Are three-letter trade terms developed by International Chamber of Commerce and widely
used in international and domestic contracts for the sale of goods. They're accepted by
governments and shippers worldwide, and are used to prevent uncertainty or
misunderstandings.

INCOTERMS® specify the rights and obligations of each of the parties that enter into a contract
for the delivery of goods sold. These eleven terms specify how transaction costs and
responsibilities are divided between buyer and seller.

Revised INCOTERMS® took effect on January 1, 2011. The number of terms has been reduced
from thirteen to eleven:

 Several terms have been eliminated

 Delivered at Place (DAP), Delivered at Terminal (DAT), and Delivered Duty Paid (DDP) have
been added.

EX – WORKERS :
EX _ WORKERS means that seller’s responsibility to make availability to the buyer at works or
factory. Full cost and risk involved in bringing the gods, from place to the desire destination will
be borne by the buyer.

FREE ALONGSIDE SHIP ( FAS ) :

‘Free alongside ship’ means that the seller delivers when the goods are placed alongside the
vessel at the named port of shipment. This means that the buyer has to bear all cost and risk of
loss or damage to the goods from that moment.
Free On Board – FOB :
Free on board is a trade term that indicates whether the seller or the buyer is liable for goods
that are damaged or destroyed during shipping. "FOB shipping point" or "FOB origin" means the buyer is
at risk once the seller ships the goods. "FOB destination" means the seller retains the risk of loss until
the goods reach the buyer.

Cost and Freight - CFR

Cost and freight is a legal term in international trade. In a contract specifying that a sale is made
CFR, the seller is required to arrange for the carriage of goods by sea to a port of destination and
provide the buyer with the documents necessary to obtain the goods from the carrier. Under CFR, the
seller does not have to procure marine insurance against the risk of loss or damage to the goods during
transit.

Cost, Insurance and Freight - CIF Explained

Cost, Insurance and Freight (CIF) is one of 13 international commerce terms known as Incoterms
- commonly known trade terms developed by the International Chamber of Commerce (ICC)in 1936 to
govern the shipping policies and responsibilities of buyers and sellers, who engage in international
trade. Incoterms are often identical to domestic terms (such as the U.S. Uniform Commercial Code) but
have different meanings. As such, parties to a contract must state the governing law of their terms.

Delivered At Frontier - DAF

Delivered at Frontier is a term used in international shipping contracts, when a seller is required
to deliver a particular good at a border location. When a contract specifies goods to be delivered at
frontier, the seller of the good is typically responsible for all risks and expenses associated with the
delivery.

Free Carrier - FCA

Free carrier is a trade term where the seller is responsible for the delivery of goods to a specific
destination. Typically, the destination is a named airport, terminal or other place where the carrier
operates. The seller includes transportation costs in its price, and the seller assumes the risk of loss until
the carrier receives the goods. At this point, the buyer assumes all responsibility.

Carriage And Insurance Paid To (CIP) :

Carriage and Insurance Paid To (CIP) is when a seller pays freight and insurance to deliver goods
to a seller-appointed party at an agreed-upon location. The risk of damage or loss to the goods being
transported transfers from the seller to the buyer as soon as the goods have been delivered to the
carrier or appointed person. Under CIP, the seller is obligated to insure goods in transit for 110 percent
of the contract value. If the buyer desires additional insurance, such extra coverage must be arranged by
the buyer.
 Shipments into a Load :
Shipments can be batched together in a single load that is transported by the carrier. When
consolidating shipments into a load, many factors should be considered:
 possible routes
 available carriers
 freight capacity of the carriers
 special requirements of either intermediate nodes or the customer
For example, there could be a low cost bulk carrier available, but the containers that are used by that
carrier are too large for the receiving dock of the customer.

SHIPMENT weight determines the costs :

For each shipment the volume-weight is calculated and compared with the actual weight in kilos. This

calculation is done according an approved formula. In air freight 1 cbm (cubic meter) equals 167 kilo. In

ocean freight (LCL) 1 cbm is calculated as a maximum of 1000 kilo, while in road transport 1 cbm

matches 333 kilo. The highest weight (volume or actual) will be charged.

In ocean freight you can choose for a full container, but also for a so called LCL shipment. Then, more

shipments of several owners are loaded into 1 container. In that case you will pay for the space used in

the container. Here we calculate with the Size/Weight (M/W) method: per cubic meter (‘size’) or per ton

N
(‘weight’). Actually this is the same as the chargeable weight, but with a different designation.

N
Air freight: 1 cbm = 167 kilo (volume ratio is 1:6)

N
Road transport: 1 cbm = 333 kilo (volume ratio is 1:3)

Ocean freight : 1 cbm = 1.000 kilo (volume ratio is 1:1)

The final shipping costs are calculated based on the highest of the two ‘weights’: this is the chargeable

weight. When goods take op to much space (in case of large, high volume products), in most cases the

volume-weight is charged.
How to calculate the volume-weight?
To calculate the volume-weight, first the volume should be determined: length x width x height (in

N
centimeters). Then this number should be divided by following factors:

N
Air freight: 6.000

N transport: 3.000
Road

Ocean freight: 1.000

The actual factor can vary per carrier. You can always contact us for an actual specification of the

volume-weight of your shipment.

How to Calculate Chargeable Weight for Air Freight Shipments

The Chargeable Weight of Air Freight shipments are calculated as the Actual Weight (Gross
Weight) or the Volumetric (also called Volume or Dimensional) Weight of the shipment, whichever is the
greater. This uses an estimated weight that is calculated based on the dimensions (length, width and
height) of a package (shipments are always shown in the order of L x W x H). Typically, large items with a
light overall weight take up more space on an aircraft than a small, heavy item. That’s why the Airlines
charge according to Chargeable Weight.

Chargeable weight is commonly used by air freight forwarders, domestic motor carriers and brokers to
calculate their air freight and/or domestic trucking charges. They use a dimensional factor to determine
the “volume” or “volumetric” or “dimensional” weight of the cargo. The domestic air cartage motor
carriers in the USA use a different dimensional factor than airlines which is listed below as well.

For those of you who simply want the formulas without a detailed explanation, here you go:
The formula for calculating the volume/dimensional weight for all commodities is 366 cubic inches per
kilogram, 166 cubic inches per pound or 6000 cubic centimeters per kilogram.

For Airlines, multiply the length by the width by the height (L x W x H) in inches to obtain the cubic
inches, then:

 To obtain the dimensional weight in pounds using inches, divide the cubic inch result by 166
 To obtain the dimensional weight in kilograms using inches, divide the cubic inch result by 366
  Using Dimensions in Centimeters: To obtain the dimensional weight in kilograms using
centimeters, multiply the length by the width by the height (L x W x H) in centimeters and divide
the result by 6000

For Air Cartage Motor Carriers in the USA, multiply the length by the width by the height (L x W x H) in
inches to obtain the cubic inches, then:

 To obtain the dimensional weight in pounds using inches, divide the cubic inch result by 194 to
200 (depending on the motor carrier)
 To obtain the dimensional weight in kilograms using inches, divide the cubic inch result by
427.69 to 440.92 (depending on the motor carrier)
 Using Dimensions in Centimeters: To obtain the dimensional weight in kilograms using
centimeters, multiply the length by the width by the height (L x W x H) in centimeters and divide
the result by 6000

Some definitions and formulas to start:

Chargeable Weight: the greater of actual weight vs. volume weight of a shipment. Chargeable weight is
an equilibrium point where the actual weight and volume weight of cargo balance out for the airline,
BUT, keep in mind that if the actual weight of the cargo is higher than the “equilibrium point”, the air
freight charges are billed on that actual weight.

Volume/Volumetric/Dimensional Weight: Cargo weight based on dimensions of the cargo

Actual Weight: Actual weight of the cargo weighed on a scale
Lb or lbs: pounds
Kg or kgs: kilograms
Cft or ft3: cubic feet
Cbm or m3: cubic meters
Tonne or mt: metric ton 1,000 kgs / 2,204.6 lbs

Basic Conversions:
1 inch = 2.54 centimeters (cms) / 1 cms = 0.393701
1 lbs = 0.453592 kgs / 1 kgs = 2.20462 lbs

Imperial shipping factor examples:

167 in3/lb = 10.4 lb/ft3

Metric shipping factor examples:

5000 cm3/kg = 200 kg/m3
6000 cm3/kg = 166.667 kg/m3
7000 cm3/kg = 142.857 kg/m3
CONCLUSION
 CONCLUSION

I can honestly say that my time spent interning with SRG Pvt. Ltd .and Company resulted in one
of the best summers of my life. Not only did I gain practical skills but I also had the opportunity to meet
many fantastic people. The atmosphere at the Pittsburgh office was always welcoming which made me
feel right at home. Additionally, I felt like I was able to contribute to the company by assisting and
working on projects throughout the summer. For example, I assisted one of the partners with several
PowerPoint presentations for clients of the company. Also, I helped to organize all of the firms
marketing contacts by utilizing Google Documents. In addition to these projects, I also helped many of
the CPAs with document organization, trial balance reviews, and many other day-to-day needs.

While I was able to learn a lot from normal office life, my two most memorable days were
events in which SRG Pvt. Ltd organized outside of work. The firm set up a networking event for me in
which I was able to go to dinner and a Pirate game with two interns from a local law firm. It was such a
good night! The won the game and we was able to interact and make connections with some other
interns in the city. Also, on one of my last days with the company for the summer, SRG Pvt. Ltd
organized a firm event involving everyone from the Pittsburgh and Greensburg offices. This event
consisted of a Ducky Tour around the city of Pittsburgh and dinner at the Hard Rock Café afterwards.
This was a great experience to interact with everyone in an informal setting outside of work.

Overall, my internship at SRG Pvt. Ltd has been a success. I was able to gain practical skills, work
in a fantastic environment, and make connections that will last a lifetime. I could not be more thankful.