OCM IMPORTS EXPORTS

Summer Internship Project Report

IMPORT AND EXPORT PROCEDURE

AND DOCUMENTATION AT

A report submitted to
Guru Nanak Dev University, Amritsar,
as a partial fulfillment of Full time
Post Graduation in M.COM at GURU NANAK DEV UNIVERSITY.

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OCM IMPORTS EXPORTS

Submitted by:
Amandeep
Class: M.COM(sem 3rd)
Roll no. 2018MCB1065

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DECLARATION
I, Amandeep , Student of M.COM studying at Guru Nanak Dev
University, Amritsar declare that the project work entitled “Import and
Export Procedures and Documentation of OCM India Limited, Amritsar”
was carried by me in the partial fulfillment of M.COM program..
This project was undertaken as a part of academic curriculum
according to the university rules and norms and it has not commercial
interest and motive. It is my original work. It is not submitted to any other
organization for any other purpose.

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ACKNOWLEDGEMENT
It gives me immense pleasure to present this project report on Import and
Export Procedure and Documentation carried out at OCM India ltd ,
Amritsar .In partial fulfillment of my course M.COM.

Perseverance, inspiration and motivation have always played key role in the
success of any venture. No work can be carried out without the help and
guidance of various persons. I am happy to take this opportunity to express
my gratitude to those who have been helpful to me in completing this project
report. So hereby, it’s my pleasure to record thanks and gratitude to the person
involved.

I thanks Import and Export department of OCM India ltd.

Amritsar, for having granted me permission to undertake summer training.
Last but not least I would like to thank all the employees of OCM India ltd
Amritsar who have directly or indirectly helped me with their moral support
for completing my project.
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AMANDEEP

INDEX

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Sr. No. Particular Page No.

Declaration

Acknowledgment

Introduction

Research Methodology

Data Analysis & Interpretation

Observation & Recommendation

Conclusion

Annexure

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INTRODUCTION
began its journey in 1924, and in 1972 forayed into
manufacturing of worsted fabrics for the India market and many
overseas markets.

The Company's ownership lies with the promoters of the

Donear Group. OCM has its Corporate Office in District Centre, Jasola, Delhi, India.
With an extensive wool based product range, it is the second largest manufacturer of
worsted fabrics in the country.

The in-house Quality Assurance Laboratory has successfully obtained accreditation from
NABL - National Accreditation Body for Testing and Calibration Laboratories for fabric
tests in accordance with international standard ISO/IEC 17025 : 2005 since 2015. It is
indeed a matter of pride to be the first worsted suiting manufacturer in the country to
have received the NABL accreditation.

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OCM has moved onto a new charter of transformations across manufacturing, product
development and in revitalising the well reputed OCM brand, in the Indian market to
strengthen its business in India, and the overseas markets. 
The product design function is at the forefront of global styling with design offices in
Torino, Italy and one in the plant complex. 
Today, the Company has an extensive product range of high quality all-wool and wool
blended worsted fabrics to ready-to-wear garments.

HISTORY

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1908 OCM begins its journey in Smyra , Turkey( now known as

Izmir), with its headquarters in London.

1914 OCM was the largest employer in the Ottoman Empire ( after
the railways) controlling 90% of Turkey’s carpet exports and
one third of Persia’s output.

1922 Turkey’s Turbulence caused by economic nationalism forced

OCM to search for new carpet production centres.

1924 Oriental carpet manufactures set up by the British in Amritsar,

the wool center of India.

1970 OCM taken over by the S.K. Birla’s and they started woollen
suitings.

1972- The unit expanded and modernized in a phrased

1973 manner .Modern stubble less looms installed and handmade
carpets discontinued. It established itself as one of the leading
brands of in dia.

1982- This company was merged with Shree Digvijay Woollen Mills
1983 headed by S.K. Birla and name was changed by Birla VXL ltd.

Up to The company had made a strong international presence and

2006 also they had been certified under ISO.

2007 10 Company sold to American MNC i.e. W.L. ROSS-International

textile group and again name was change to OCM India Ltd.
OCM IMPORTS EXPORTS

BRAND ROASTER

THE PLANT

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Company has a sprawling 37 acre ‘new generation’ complex with latest imported
machines and contemporary processes. In fact OCM has distinct advantage of
possessing an in-house single roof facility for every process – right from fibre to
fabric.The making of fabric of substance from delicate fibres is as precise as any
scientific process. Watching the raw material through various stages of recombing,
spinning, weaving, dyeing and finishing makes an unforgettable experience.
THE PRODUCTION PROCESS FLOW CHART
WOOL

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OCM IMPORTS EXPORTS

DYE HOUSE
NEW SPINNING
NEW SPINNING
(SINGLE YARN) WHITE YARN
POST SPINNING
(DOUBLE YARN) POST SPINNING

WEAVING
FINISHING
INSPECTION DYE HOUSE
WAREHOUSE WEAVING
DISPATCH
FABRIC DYE

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Import and export:

International trade is one of the hot industries of the new
millennium. But it's not new. Think Marco Polo. Think the
great caravans of the biblical age with their cargoes of silks and
spices. Think even further back to prehistoric man trading
shells and salt with distant tribes. Trade exists because one
group or country has a supply of some commodity or
merchandise that is in demand by another. And as the world
becomes more and more technologically advanced, as we shift
in subtle and not so subtle ways toward one-world modes of

thought, international trade becomes more and more

rewarding, both in terms of profit and personal satisfaction.

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Types of Import/Export Business:

Export management company (EMC):
An EMC handles export operations for a domestic company
that wants to sell its product overseas but doesn't know how
(and perhaps doesn't want to know how). The EMC does it
all--hiring dealers, distributors and representatives; handling
advertising, marketing and promotions; overseeing marking
and packaging; arranging shipping; and sometimes arranging
financing. In some cases, the EMC even takes title to the
goods, in essence becoming its own distributor. EMCs
usually specialize by product, foreign market or both, and--
unless they've taken title--are paid by commission, salary or
retainer plus commission.

Export trading company (ETC):

While an EMC has merchandise to sell and is using its
energies to seek out buyers, an ETC attacks the other side of
the trading coin. It identifies what foreign buyers want to
spend their money on and then hunts down domestic sources

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willing to export. An ETC sometimes takes title to the goods

and sometimes works on a commission basis.
Import/export merchant:
This international entrepreneur is a sort of free agent. He has
no specific client base, and he doesn't specialize in any one
industry or line of products. Instead, he purchases goods
directly from a domestic or foreign manufacturer and then
packs, ships and resells the goods on his own. This means, of
course, that unlike the EMC, he assumes all the risks (as
well as all the profits).

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IMPORTS OF OCM INDIA LTD

Import Procedure :
Import trade refers to the purchase of goods from a foreign country. The
procedure for import trade differs from country to country depending upon
the import policy, statutory requirements and customs policies of different
countries. In almost all countries of the world import trade is controlled by
the government. The objectives of these controls are proper use of foreign
exchange restrictions, protection of indigenous industries etc. The imports of
goods have to follow a procedure. This procedure involves a number of steps.
The steps taken in import procedure are discussed as follows:
(i) Trade Enquiry:

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The first stage in an import transaction, like any other transaction of purchase
and sale relates to making trade enquiries. An enquiry is a written request
from the intending buyer or his agent for information regarding the price and
the terms on which the exporter will be able to supply goods. The importer
should mention in the enquiry all the details such as the goods required, their
description, catalogue number or grade, size, weight and the quantity
required. Similarly, the time and method of delivery, method of packing,
terms and conditions in regard to payment should also be indicated.
In reply to this enquiry, the importer will receive a quotation from the
exporter. The quotation contains the details as to the goods available, their
quality etc., the price at which the goods will be supplied and the terms and
conditions of the sale.

(ii) Procurement of Import Licence-

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The import trade in India is controlled under the Imports and Exports
(Control) Act, 1947. A person or a firm cannot import goods into India
without a valid import licence. An import licence may be either general
licence or specific licence. Under a general licence goods can be imported
from any country, whereas a specific or individual licence authorises to
import only from specific countries.
For the purpose of issuing licence, the importers are divided into three
categories:
(a) Established importer,
(b) Actual users, and
(c) Registered exporters, i.e., those import under any of the export
promotion schemes.
In order to obtain an import licence, the intending importer has to make an
application in the prescribed form to the licensing authority.
(iii) Obtaining Foreign Exchange:
After obtaining the licence (or quota, in case of an established importer), the
importer has to make arrangement for obtaining necessary foreign exchange
since the importer has to make payment for the imports in the currency of the
exporting country.
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The foreign exchange reserves in many countries are controlled by the

Government and are released through its central bank. In India, the Exchange
Control Department of the Reserve Bank of India deals with the foreign
exchange. For this the importer has to submit an application in the prescribed
form along-with the import licence to any exchange bank as per the
provisions of Exchange Control Act.
The exchange bank endorses and forwards the applications to the Exchange
Control Department of the Reserve Bank of India. The Reserve Bank of India
sanctions the release of foreign exchange after scrutinizing the application on
the basis of exchange policy of the Government of India in force at the time
of application.
The importer gets the necessary foreign exchange from the exchange bank
concerned. It is to be noted that whereas import licence is issued for a
particular period, exchange is released only for a specific transaction. With
liberalisation of economy, most of the restrictions have been removed as
rupee has become convertible on current account.
(iv) Placing the Indent or Order:

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After the initial formalities are over and the importer has obtained the licence
quota and the necessary amount of foreign exchange, the next step in the
import of goods is that of placing the order. This order is known as Indent.
An indent is an order placed by an importer with an exporter for the supply of
certain goods.
It contains the instructions from the importer as to the quantity and quality of
goods required, method of forwarding them, nature of packing, mode of
settling payment and the price etc. An indent is usually prepared in duplicate
or triplicate. The indent may be of several types like open indent, closed
indent and Confirmatory indent.
In open indent, all the necessary particulars of goods, price, etc. are not
mentioned in the indent, the exporter has the discretion to complete the
formalities, at his own end. On the other hand, if full particulars of goods, the
price, the brand, packing, shipping, insurance etc. are mentioned clearly, it is
called a closed indent. A confirmatory indent is one where an order is placed
subject to the confirmation by the importer’s agent.
(v) Despatching a Letter of Credit:

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Generally, foreign traders are not acquainted to each other and so the exporter
before shipping the goods wants to be sure about the creditworthiness of the
importer. The exporter wants to be sure that there is no risk of non-payment.
Usually, for this purpose he asks the importers to send a letter of credit to
him. A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by
its issuer (usually importer’s bank) that the bills of exchange drawn by the
foreign dealer, on the importer will be honoured on presentation upto a
specified amount.
(vi) Obtaining Necessary Documents:
After despatching a letter of credit, the importer has not to do much. On
receipt of the letter of credit, the exporter arranges for the shipment of goods
and sends Advice Note to the importer immediately after the shipment of
goods. An Advice Note is a document sent to a purchaser of goods to inform
him that goods have been despatched. It may also indicate the probable date
on which the ship is expected to reach the port of destination.

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The exporter then draws a bill of exchange on the importer for the invoice
value of goods. The shipping documents such as the bill of lading, invoice,
insurance policy, certificate of origin, consumer invoice etc., are also
attached to the bill of exchange. Such bill of exchange with all these attached
documents is called Documentary Bill. Documentary bill of exchange is
forwarded to the importer through a foreign exchange bank which has a
branch or an agent in the importer’s country for collecting the payment of the
bill.
There are two types of documentary bills:
(a) D/P, D.P. (or Documents against payment) bills.
(b) D/A, D.A. (or Document against acceptance) bills.
If the bill of exchange is a D/P bill, then the documents of title of goods are
delivered to the drawee (i.e., importer) only on the payment of the bill in full.
D/P bill may be sight bill or usance bill. In case of sight bill, the payment has
to be made immediately on the presentation of the bill. But usually a grace
period of 24 hours is granted.
(vii) Customs Formalities and Clearing of Goods:

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After receiving the documents of title of the goods, the importer’s only
concern is to take delivery of the goods, when the ship arrives at the port and
to bring them to his own place of business. The importer has to comply with
many formalities for taking delivery of goods. Unless the following
mentioned formalities are complied with, the goods lie in the custody of the
Custom House.
(a) To obtain endorsement for delivery or delivery order:
When the ship carrying the goods arrives at the port, the importer, first of all,
has to obtain the endorsement on the back of the bill of lading by the shipping
company. Sometimes the shipping company, instead of endorsing the bill in
his favour, issues a delivery order to him. This endorsement of delivery order
will entitle the importer to take the delivery of the goods.
The shipping company makes this endorsement or issues the delivery order
only after the payment of freight. If the exporter has not paid the freight, i.e.,
when the bill, of lading is marked freight forward, the importer has to pay the
freight in order to get green signal for the delivery of goods.

(b) To pay Dock dues and obtain Port Trust Dues Receipts:

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The importer has to submit two copies of a form known as ‘Application to

import’ duly filled in to the ‘Lading and Shipping Dues Office’. This office
levies a charge on all imported goods for services rendered by the dock
authorities in connection with lading of goods. After paying the necessary
charges, the importer receive back one copy of the application to import as a
receipt ‘Port Trust Dues Receipt’.
(c) Bill of Entry:
The importer will then fill in form called Bill of Entry. This is a form
supplied by the custom office and is to be filled in triplicate. The bill of entry
contains the particulars regarding the name and address of the importer, the
name of the ship, packages number, marks, quantity, value, description of
goods, the name of the country wherefrom goods have been imported and
custom duty payable.
The bill of entry forms are of three types and are printed in three colours-
Black, Blue and Violet. A black form is used for non-dutiable or free goods,
the blue form is used for goods to be sold within the country and the violet
form is used for re-exportable goods, i.e., goods meant for re-export. The
importer has to submit three forms of bill of entry along-with Port Trust Dues
Receipt to the customs office.

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(d) Bill of Sight:

If the importer is not is a position to supply the detailed particulars of goods
because of insufficiency of information supplied to him by the exporter, he
has to prepare a statement called a bill of sight. The bill of sight contains only
the information possessed by the importer along-with a remark that he is not
in a position to give complete information about the goods. The bill of sight
enables him to open the package and examine the goods in the presence of
custom officer so as to complete the bill of entry.
(e) To pay Customs or Import Duty:
There are three types of imported goods:
(i) Non dutiable or free goods,
(ii) Goods which are to be sold within the country or which are for home
consumption, and
(iii) Re-exportable goods i.e. goods meant for re-export. If the goods are
duty free, no import duty is to be paid at the custom office.

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Custom authorities will permit the delivery of such goods after usual
examination of the goods. But if the goods are liable for duty, the importer
has to pay custom or import duty which may be based on weight or
measurement of goods, called Specific Duty or on the value of imported
goods Ad-valorem Ditty.
There are three types of import duties. On some goods quite low duties are
levied and they are called revenue duties. On some others, quite high duties
are charged to give protection to home industries against foreign competition.
While goods imported from certain nations are given preferential treatment
for the levy of import duties and in their case full protective duties are not
charged.
(f) Bonded and Duty paid Warehouses:
The port trust and custom authorities maintain two types of warehouses-
Bonded and Duty paid. These warehouses are situated near the dock and are
very useful to importers who do not have godown of their own to store the
imported goods or who, for business reasons, do not wish to carry them to
their own godowns.

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The goods on which the duty has already been paid by the importer can be
kept in the duty paid warehouses for which a receipt called ‘warehouse
receipt’ is issued to him. This receipt is a document of title and is
transferable. The bonded warehouses are meant for goods on which duty has
been paid by the importer. If the importer cannot pay the duty, he may keep
the goods in Bonded warehouses for which he is issued a receipt, called
‘Dock Warrant’. Dock Warrant, also like warehouses receipt, is a document
of title and is transferable.
The bonded warehouses are used by the importer when:
(i) He has no godown of his own.
(ii) He cannot pay the duty immediately.
(iii) He wants to re-export the goods and thereby does not want to pay the
duty.
(iv) He wants to pay the duty in installments.
A nominal rent is charged for the use of these warehouses. One special
advantage of these warehouses is that the importer can sell the goods and
transfer the title of goods merely by endorsing warehouse receipt or dock-
warrant. This will save the importer from the trouble and expenses of
carrying the goods from the warehouses to his godown.

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(g) Appointment of clearing Agents:

By now we understand that the importer has to fulfill many legal formalities
before he can take delivery of goods. The importer may take the delivery of
the goods himself at the port. But it involves much of time, expenses and
difficulty. Thus, to save himself from the botheration of complying with all
the complicated formalities, the importer may appoint clearing agents for
taking the delivery of the goods for him. Clearing agents are the specialised
persons engaged in the work of performing various formalities required for
taking the delivery of goods on behalf of others. They charge some
remuneration on performing these valuable services.

(viii) Making the Payment:

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The mode and time of making payment is determined according to the

terms and conditions as agreed to earlier between the importer and the
exporter. In case of a D/P bill the documents of title are released to the
importer only on the payment of the bill in full. If the bill is a D/A bill,
the documents of title of the goods are released to the importer on his
acceptance of the bill. The bill is retained by the banker till the date of
maturity. Usually, 30 to 90 days are allowed to the importer for making
the payment of such bills.

(ix) Closing the Transactions:

The last step in the import trade procedure is closing the transaction. If the
goods are to the satisfaction of the importer, the transaction is closed. But if
he is not satisfied with the quality of goods or if there is any shortage, he will
write to the exporter and settle the matter.

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Export of OCM PVT.LTD.

EXPORT PROCEDURE
STEP1: Enquiry :

 The starting point for any Export Transaction is an enquiry.

 An enquiry for product should, inter alia, specify the following details or
provide the following data
 Size details - Std. or oversize or undersize
 Drawing, if available
 Sample, if possible
 Quantity required
 Delivery schedule
 Is the price required on FOB or C& F or CIF basis
 Mode of Dispatch - Sea, air or Sea/air
 Mode of Packing
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 Terms of Payment that would be acceptable to the Buyer - If the buyer

proposes to open any Letter of Credit, any specific requirement to be complied
with by the Exporter
 Is there any requirement of Pre-shipment inspection and if so, by which
agency

 Any Certificate of Origin required - If so, from what agency.

STEP 2: - Proforma generation :

After studying the enquiry in detail, the exporter - be it Manufacturer Exporter

or Merchant Exporter - will provide a Proforma Invoice to the Buyer.

STEP 3: Order placement :

 If the offer is acceptable to the Buyer in terms of price, delivery and

payment terms, the Buyer will then place an order on the Exporter, giving as
much data as possible in terms of specifications, Part No. Quantity etc. (No
standard format is required for such a purchase order)
STEP 4: Order acceptance :

 It is advisable that the Exporter immediately acknowledges receipt of the

order, giving a schedule for the delivery committed.
STEP 5: Goods readiness & documentation :

 Once the goods are ready duly packed in Export worthy cases/cartons

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(depending upon the mode of despatch), the Invoice is prepared by the Exporter.
 If the number of packages is more than one, a packing list is a must.
 Even If the goods to be exported are excisable, no excise duty need be
charged at the time of Export, as export goods are exempt from Central Excise,
but the AR4 procedure is to be followed for claiming such an exemption.

 Similarly, no Sales Tax also is payable for export of goods.

STEP 6: Goods removal from works :

 There are different procedures for removing Export consignments to the

Port, following the AR4 procedure, but it would be advisable to get the
consignment sealed by the Central Excise authorities at the factory premises
itself, so that open inspection by Customs authorities at the Port can be avoided.

 If export consignments are removed from the factory of manufacture,

following the AR4 procedure, claiming exemption of excise duty, there is an
obligation cast on the exporter to provide proof of export to the Central Excise
authorities
STEP 7: Documents for C & F agent :

 The Exporter is expected to provide the following documents to the

Clearing & Forwarding Agents, who are entrusted with the task of shipping the
consignments, either by air or by sea.
 Invoice
 Packing List

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 Declaration in Form SDF (to meet the requirements as per FERA) in

duplicate.
 AR4 - first and the second copy
 Any other declarations, as required by Customs
 On account of the introduction of Electronic Data Interchange (EDI)
system for processing shipping bills electronically at most of the locations - both
for air or sea consignments - the C&F Agents are required to file with Customs
the shipping documents, through a particular format, which will vary depending
on the nature of the shipment. Broad categories of export shipments are:
 Under claim of Drawback of duty
 Without claim of Drawback
 Export by a 100% EOU

 Under DEPB Scheme

STEP 8: Customs Clearance :

 After assessment of the shipping bill and examination of the cargo by

Customs (where required), the export consignments are permitted by Customs
for ultimate Export. This is what the concerned Customs officials call the ‘LET
EXPORT’ endorsement on the shipping bill.
STEP 9: Document Forwarding :

 After completing the shipment formalities, the C & F Agents are expected
to forward to the Exporter the following documents:

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 Customs signed Export Invoice & Packing List

 Duplicate of Form SDF
 Exchange control copy of the Shipping Bill, processed electronically
 AR4 (original duplicate) duly endorsed by Customs for having effected
the Export

 Bill of Lading or Airway bill, as the case may be.

STEP 10: Bills negotiation :

 With these authenticated shipping documents, the Exporter will have to

negotiate the relevant export bill through authorized dealers of Reserve Bank,
viz., Banks.
 Under the Generalized System of Preference, imports from developing
countries enjoy certain duty concessions, for which the exporters in the
developing countries are expected to furnish the GSP Certificate of Origin to the
Bankers, along with other shipping documents.
 Broadly, payment terms can be:
 DP Terms
 DA Terms

 Letter of Credit, payable at sight or payable at... days.

Step11: Bank to bank documents forwarding

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 The negotiating Bank will scrutinize the shipping documents and forward
them to the Banker of the importer, to enable him clear the consignment.

It is expected of such authorized dealers of Reserve Bank to ensure receipt

of export proceeds, which factor has to be intimated to the Reserve Bank by
means of periodical Returns.
STEP 12: Customs obligation discharge :

 As indicated above, Exporters are also expected to provide proof of

export to the Central Excise authorities, on the basis of the Customs
endorsements made on the reverse of AR4s and get their obligation, on this
score, discharged.
STEP 13: Receipt of Bank certificate :

 Authorized dealers will issue Bank Certificates to the exporter, once the
payment is received and only with the issuance of the Bank Certificate, the
export transaction becomes complete.

 It is mandatory on the part of the Exporters to negotiate the shipping

documents only through authorized dealers of Reserve Bank, as only through
such a system Reserve Bank can ensure receipt of export proceeds for goods
shipped out of this country.

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Documentation of Exports:
Commercial Invoice
Commercial invoice is issued by the seller to the buyer containing the
terms of the transaction like date of transaction, seller details, buyer
details, value, shipping terms and more. Customs duty is levied on the
shipment usually based on the commercial invoice raised by the seller.
Air Waybills
An airway bill is a proof of shipment of goods by air. Air waybills serve as
a proof of receipt of goods for shipment by the air cargo agent, an invoice
for the air shipment, a certificate of insurance and a guide to the air cargo
agent for handling, dispatch and delivery of the consignment. A typical
airway bill contains details about the shipper and the consignee, the
departure airport and destination airport, description of the goods, sign and
seal of the carrier.
Importance of Airway Bill
1. It is a contract of carriage of goods between the consignor and airlines
or his agent.
2. It acts as a customs declaration form.

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3. It contains details of freight and so works as a freight bill

Packing List
There is a difference between packing note and packing list. Packing note
refers to the particulars of contents of an individual pack while packing list
is a consolidated statement of the contents of the total number of cases or
packs.
A packing note contains the following details:
(a) Date of packing,
b) Number of packing note,
(c) Number of case to which it relates to,
(d) Contents of case in terms of quantity and weight,
(e) Marking numbers,
(f) Name of exporter,
(g) Name of importer,
(h) Importer’s order number,
(i) Number and date of bill of lading and

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(j) Name of vessel/flight. Packing note is kept in each concerned

case/pack. Packing note and packing list are sent to the importer along
with other documents. If any case contains any shortfall, importer can
communicate to the exporter in which case there is shortage of goods for
making good. No particular form has been prescribed for both packing
note/list. Normally, ten copies are prepared. Two copies are sent, in
advance, to the buyer, one copy along with the documents, one to the
shipping agent and the remaining are retained by the exporter.
Bill of Lading

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Bill of Lading is a document issued by the shipping company or his agent

acknowledging the receipt of cargo on board. This is an undertaking to
deliver the goods in the same order and condition as received to the
consignee or his agent on receipt of freight, the shipping company is
entitled to. It is a very important document to the exporter as it constitutes
document of title to the goods. Each shipping company has its own bill of
lading. The exporter prepares the bill of lading in the form obtained from
the shipping company or agents of shipping company. The goods can be
consigned to order of the exporter, which means the exporter can authorize
someone else to receive the goods on his behalf. In such a case, the
exporter would discharge the bill of lading on its reverse. When the bill of
lading is negotiated through the bank, it would be endorsed in favour of the
bank that would endorse further to the importer, on receipt of payment.
Bill of Lading is made in signed set of 2 originals, any one of which can
give title to the goods. The shipping company also issues non-negotiable
copies (unsigned) which are not documents of title to goods but serves the
purpose of record only. The reverse side of Bill of Lading contains the
terms and conditions of the contract of carriage. The clauses on most of the

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bills of lading are common. Bill of lading should be clean to facilitate the
exporter to obtain the proceeds of export without difficulty.
Main Purposes It serves three main purposes.
(A) As a document of title to the goods
(B) As a receipt from the shipping company
Bill of Exchange
Bill of exchange is used when an importer agrees to pay the exporter in
future on a date on or before that is mutually agreed upon. Bill of exchange
is an important written document in wholesale trade wherein large amounts
of money is involved. Bill of exchange can be classified as bill of
exchange after date and bill of exchange after sight. Bill of exchange after
date is when the due date for payment is counted from the date of drawing.
Bill of exchange after sight is when the due date for payment is
counted from the date of acceptance of the bill

Letter of Credit

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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
Certificate of Origin
Certificate of origin is usually requested by the Customs Authority while
clearing Customs. Certificate of Origin is used to establish the origin of the
product and is issued by the Chamber of Commerce of the Exporter’s
country. Certificate of origin usually contains the name and address of the
exporter, details of the goods, package number or shipping marks and
quantity, as applicable.
Importance to the Importer
1. In the importer’s country, the customs do not normally open the
packages. It helps the importer to get speedy delivery of goods
2. Lot of unnecessary hardship which importer faces once the packages are
opened is avoide

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RESEARCH METHODOLOGY
Objectives of the Study

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 To know about import and export system.

 Collection of data from import export procedure and documentation.

 To gain knowledge of import- export management.

 To study of import export documentation in OCM Pvt.Ltd.

 To understand the working of various department of OCM Pvt. Ltd.

Contributing toward processing of an import export procedure.

Need For the Study

The study is conducted to know how to generate the overseas business because
fastener industry is growing at very fast pace, as the demand for fasteners is
increasing day by day.
Also it become essential to study since presence of may players in the market
have caused a lot of compition.
Research Methodology
Research is an art of scientific investigation. In other word research is a
scientific and systematic search for pertinent information on a specific topic.
The logic behind taking research methodology into consideration is that one can
have knowledge about the method and procedure adopted for achievement of

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objectives of the project. With the adoption of this others can evaluate the
results also. Its main aim is to keep the researchers on the right track.
Data Collection
Data was collected by using main two methods i.e. Primary data and Secondary
data.

Primary Data
Primary data is the data which is used or collected for first time and it is not
used by anyone in the past. There are number of sources of primary data from
which the information can be collected. I choose the following resources for my
research.

 E – mails
 Telephones
 Invoice
 Packing List

Secondary Data
Secondary data is the data which is available in readymade form and which is
already used by people for some purposes. There may be various sources of
secondary data such as-newspapers, magazines, journals, books, reports,
documents and other published information.

 Annual report of OCM

 Shipping bill
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 Internet
 Invoice
 Packing List
 Journals and Publications of OCM
 Manuals and Broachers of OCM

Limitations of the Study

 The study is Conducted only on Company’s office.
 Many of the Documents are very Confidential so I cannot present those
documents here.
 Limitation of time
 Not exact tool for forecasting.

1. What is the total export of OCM Ltd. in the previous year and in the current
year?

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2. What is the status of imports of OCM Ltd. in the previos year and in the
current year?

3. What products are imported by OCM Pvt.Ltd.?

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INTERPRETATION: It shows different types of products that are imported by

OCM Pvt. Ltd.

2. What products are exported by OCM?

INTERPRETATION : It shows the the products exported by OCM Ltd.

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