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Submitted by

PGDM ±GEN Roll No-56



Exportimport of shipm nt ACKNOWLEDGEMENT


Life of human beings is full of interactions. No one is self sufficient by himself whenever anyone is doing some serious and important work a lot of help from the peo ple concerned is needed &one less specially obliged towards them. I cannot forget acknowledging them in few words as without the guidance & co ordination of them in my project report would not have been possible.

A large number of individual contributed to this project. I am thankful to all of them for their help and encouragement. My writing in this project report has also been influenced by a number of website and standard textbooks. As far as possible, they have been fully acknowledged at the appropriate place .I express my gratitude to all of them. First of all I owe my heartfelt gratitude to my guide prof. prof.S.K SINGH forhis noble guidance throughout the completion of theProject.I would like to extend my heartfelt thanks for giving me an opportunity to work on this project.

I must also thank my parents for their blessings and moral support . Last but not least, also give my sincere thanks to all the people to directly indirectly have help and encourage me in finding the way to us collecting the requisite information and completing the project effectively and timely.

Varshasingh PGDM general Roll no. - 56


Exportimport of shipment



Thisis to certify that the project report titled





Offered by Committed cargo Pvt. Ltd.has been prepared by varshasingh,Roll No.- 56,a student of PGDM (Post Graduation Diploma in Management), session (2010-12). The study was conducted with special reference to committed cargo carePvt.Ltd. C.B.D. Belapur, Navi Mumbai. I recommend this project for evaluation.

Place: Date: PROF.R.K VERMA Director


Exportimport of shipment


age o.

Introduction of study Objective of study12 Research Methodology13 Research Design14 Scope of the Project15


Company Profile17 Organization Chart25 Benefits Given by company26

Theoretical background27 Data Analysis and Interpretations58 Findings68 Bibliography72


S. Chairman of Coir Board.Ltd.791 tonnes valued at Rs 634 crore. both in quantity and value. to make export .94. despite tremendous odds and conspicuous global impediments. could sustain in the competitive world by providing vast range of cargo handling through all instruments which flexible prompt and innovative in meeting the requirement of the customer.import invoice. This project puts more focus on to know custom clearness. apeejay . thanked exporters for their collective efforts in surpassing the export target last year. Vijayaraghavan. This project will also find out how Committed cargo Pvt.Exportimport of shipment 5 INTRODUCTION OF STUDY This project is all about to know about export import procedure of shipment.Ltd.566 tonnes valued at Rs 592 crore during the previous year. Exceeding target At a meeting of representatives of the coir exporters with the Board officials to discuss issues related to exports. Coir export was 1. The purpose of the study was to know about export ² import documentation of seaway in the committed cargo Pvt. exceeding the target set for the year. Mr V. to get shipping bill number from custom department etc. Forex Earnings Indian coir exports during 2008-09 had touched 1.87.

19 crore. accounting for 86. The meeting also considered suggestions to revamp these showrooms and sales depots through out the country in tune with the growing expectations of all sections.Exportimport of shipment 6 Sales turnover The 30-odd Coir Board showrooms spread over the country had achieved a sales turnover of Rs 11. Mr Vijayaraghavan was confident of achieving the revised sales target of Rs 15 crore set for the showrooms in the country for the current year. In this background. apeejay .10 per cent of the Rs 13-crore target fixed for the year 2008-09. especially the upper strata of society in order to remain competitive in the domestic market.

Exportimport of shipment 7 OBJECTIVE OF THE STUDY The main objectives of the research was :  To know about export import process.  To know different type of container used in shipment. apeejay .  To know what are the documents required before and after sailing the cargo.

Exportimport of shipment 8 RESEARCH METHODOLOGY Collect data/information about cargo through:  Primary data collection:y E-mail y Telephone y Invoice y Packing List  Secondary data collection :y Invoice y Packaging list y Shipping bill y Internet apeejay .

Exportimport of shipment 9 RESEARCH DESIGN Research design is the based framework. how and why aspects of the investigation further the researcher used the statistical method to serve he purpose of project. Most specifically it was a kind of ´Descriptive conclusive researchµ who takes care of who. It is a map or blue print according to which the research is to be conducts. where. when. CENTRE: RESEARCH: ALL OVER INDIA EXPLORATORY RESEARCH TECHNIQUE :QUALITATIVE & QUANNTATIVE TOOL USED: TELEPHONIC & E-MAIL DATA SOURCE : PRIMARY & SECONDARY apeejay . The research design specifies the methods for data collection & data analysis determine the source of data. it permitted the research to derive more accurate generalization whose reliability could be measured. which provides guidelines for the research process. what.

 Chances of improvement of current channels.  Types of consumers that compromise present and potential markets. apeejay . not only in India but also overseas.  The current and prospective competitive position.  Buying habits and pattern of consumption  Size and location of different markets.  The prospects for growth or construction for the current markets being served.  New mantras of emerging segments.Exportimport of shipment 10 SCOPE OF THE STUDY The scope of marketing research could cover the business problems relating to the followings.  Most suitable entry timing.  Marketing and manufacturing capabilities of competitors.

Committed Group has established its hub at Los Angeles. Committed Group management has the right mix of experience and commitment and is fast to adapt to new emerging technology. apeejay .Exportimport of shipment 11 COMPANY PROFILE INTRODUCTION OF THE ORGANIZATION Overview An ISO 9001:2000 Company Incorporated head quarter in the national capital Delhi. Ludhianaand a reliable network of associate offices in Indiaand world over an d is specialized in forwarding of cargos choosing the most convenient andcost effective transportation method by air. seaand truck any time & anywhere around the globe. courier. Toronto. Shanghai. Mumbai.  Projects Mission Statement ´To be focused as a pro -active cargo gateway by anticipating and reacting to each stage of a shipment's transit with commitment and to experience strategic growth of a highly respected and recognized cargo company in the Industryµ. Thus capable of handling ²  Packaging  Warehousing  Freight forwarding  Clearance of Export and Import Cargo  Commercial. Earning and maintaining a reputation for dependable and complete worldwide cargo movement solutions wi th the motto ´Customer Prideµ achieved this longevity in the volatile cargo industry. Indiaand specializes in handling Import & Export Cargo. Jaipur. Its well established network and tracking software enables to provide fastand reliable information to its client. Diplomatic and Non-Diplomatic Consignment.

logistics. These individuals form a strong foundation that provides vision and support to a growing team of talented. including transportation. Thus. Services  Air Freight  Custom Clearance  Document Processing  Multi Modal Facility  3 PL & Supply Chain Management  Packaging & Warehousing  Tracking & Tracing apeejay . This approach ensures the correct management of cargo in a cost-efficient andprofessional way at competitive price and feels Committed Group is the RIGHT PARTNER FOR YOU. professional services and customer service. dedicated professionals working to adopt and deliver professio nal freight forwarding solutions and custom clearance. The Operational team at Committed Group comprising of more than 50 in-house trained energetic and aggressive group of employees with several years of experience in the international freight forwardi ng plus an protracted experience in the reputable shipping lines and airlines. cargo management. with strong gamut of professional from cargo industry under one roof help Committed Group to adopt the "Total Freight Management" approach.Exportimport of shipment Team 12 The Committed Group management team brings together leaders with a wealth of expertise from various industries. a feature of which is the ha ndling of client cargo on a door-to-door basis.

providing a permutation-combination between air.ocean-surface modes to reduce the cost of transportation. B/L Fee etc. This includes Door pick to Door delivery and a complete logistics support constituting of: » » » » » » » » Origin Pickup/Trucking. Door Delivery of the cargo. Carriage by Sea or Air by payment of Freight. Customs Clearing of goods at destination and Warehousing if need be. Multimodal Transport (MT) Document Services along with logistic documentation evidencing a multimodal transport contract which can be replaced by electronic data interchange messages insofar as permitted by applicable law and be (a)Issued in a negotiable form or. Customs Clearance & Documentation at origin. Origin charges payable like THC.Exportimport of shipment Multi Modal Facility 13 At Committed Group it is a single window contract for the carriage of goods by at least two or more different modes of transport. Thus. Warehousing if required. The Cargo delivery is subject to various terms and conditions to be fulfilled by the consignee as listed below: apeejay . CI Shipments: Cargo picked up on costand insurances terms FOB: Free on Board Shipment. Committed Group operates as Multimodal Transport Operator (MTO) providing the end 2 end services like: DDP: Delivered Duty Paid Shipments. Delivery of the Cargo through Multimodal facility This is done after completion of various documentation and formalities after the arrival of the shipment at destination. DDU: Delivered Duty Unpaid Shipments. (b) Issued in a non-negotiable form indicating a named consignee. Only Port to port or Apt to Apt service by Carrier. Inland Trucking if required. Ex Works: Pick up if cargo from shipper·s warehouse/factory.

and masking tap e. 5. depending upon the requirement. 4. We specialize in handling fragile / heavy / oversized cargo. In case of shipments under L/C. Warehousing at Committed Group Committed Group offer warehousing facilities to support export import activities. corrugated rolls & boxes.When no document has been issued.Exportimport of shipment 14 1. air bubble pack rolls. we use material like craft paper / soft papers. apeejay . Period of responsibility The responsibility of Committed Cargo CarePvt. etc. The multimodal transport operator shall be responsible for the acts and omissions of its employee or agents. The warehousing facilities are very helpful to accelerate the transportation of goods. to a person as instructed by the consignor or by a person who has acquired the consignor's or the consignee's rights under the multimodal transport contract to give such instructions. the designated Bank need to endorse the Bill of Lading or issue A Bank Release Order in favour of the carrier.Ltd. 3. or of any other person of whose services he makes use for the performance of the contract. Packaging & Warehousing Packaging at Committed Group Committed Group employs professional packers and experienced supervisors who are trained packing and packaging. For Air shipments. as if such acts and omissions were his own. polythene & polypropylene. For packaging. We use authorised warehouses located worldwide. especially for cargos with LCL Status. Original DIC. On presentation of Duly Endorsed Original Bill of Lading (for Sea / Ocean Shipments). when any such employee or agent is acting within the scope of his employment. 2. an Authority Letter is required. Payment of all applicable charges to the delivery agent of the carrier. 6. as a Multimodal Transport Operator (MTO) for the goods under these Rules covers the period from the time the MTO has taken the goods in his charge to the time of their delivery.

 A-frame andReal-Time RF-Controlled Inventory System apeejay . The warehouses are equipped with dedicated loading and unloading bays. and advanced in -house Systems Support.  Accounts Management. industrial and high-end sophisticated products on transit.Exportimport of shipment 15 Further to our covered warehousing facilities are provided for storing of FMCG. Services include: Complete Supply Chain Operations: End-toEnd  Full Case Pick Modules Pick Modules  Split Case  Tilt  Sliding  CAPSLine  Pick-to-Light  Kitting Tray Sorter Shoe Sorter  Product/Process QA Management  Performance-driven Controls  Standard and Customized Reporting  Inventory control  Private and Public Delivery Network  Invoicing  Call Centre Support  Diverse Product Categories Returns processing  Assembly and inbound / outbound freight management.

 Door Delivery of the cargo. Through this site you now have the ability to monitor your consignments online or web access at any time. B/L Fee etc. Our system offers access on a 24/7 b asis for all consignments shipped by road. seaandair. BENEFITS GIVEN BY COMPANY  Origin Pickup/Trucking. day or night.  Warehousing if required.  Inland Trucking if required.  Customs Clearance & Documentation at origin. orders and events  Intelligent order sourcing across multiple stocking locations  10-15% cost improvement for fleets Tracking & Tracing Committed Group big advantages offer to our customers is the one stop online track and trace facility. apeejay .  Carriage by Sea or Air by payment of Freight.Exportimport of shipment 16  10-15% reduction in transportation costs  Real-time monitoring of inventory. without the need to constantly refer back to your forwarder.  Origin charges payable like THC.

sea routes are being used for transportation of cargo from onecontinent or country to Coastal shipping is also used for transporting th e cargo from oneport within the country to another. co effective flow andstorage flowand storage of raw materials. OhioUSA as the Process of planning. For example in India the cargo can apeejay .Exportimport of shipment 17 THEORETICAL BACKGROUND LOGISTICS SYSTEM Logistics is defined by the council of Logistics. implementing and controlling the efficient. the objective of Logistics System is that the right products reach the right place in the right quantity at the right time to satisfy customer demand. in process inventory finished goods and related information from point of origin to point consumption. ELEMENTS OF LOGISTICS SYSTEM       Nature of Product Location of Manufacturing Plant Availability of infrastructure such as Road Availability of different modes of transportation Dealer/Distributor Network Government Policy MODE OF TRANSPORTATION  AIR TRANSPORT  OCEAN TRANSPORT  RAIL TRANSPORT  ROAD TRANSPORT OCEAN TRANSPORT More than 95percent of international trade is conduced by sea routessince ancient times. More simply.

 Their voyage routes and schedules are flexible.  Uniform rates for all shippers.  Tramp ships:.  They arrive or depart without a fixed route or schedule.  They fix their voyages according to availability of cargo and as per the requirement of the shippers of these cargoes. and liquid go like crude oilammonium acids etc Ideally the goods with high volume andkiwvakyeare suited die ocean transport in the era of containerisation even the high value cargo can be safely enabled the cargo carrying capacities of the ship t o increase many fold.Tramp ships on the other hand have the following characteristics ²  They are free to move any where on the high seas at their will. Cargo ship categorised into followings:-  Liners ships : Liners ship represent the organized sector of the shipping industries due to their fixed schedules of arrival and departure. Sea routes are used for carrying bulj commodities like such as coalingand thermal coal mires.  Coverage of wide range of ports. fertilizers rock phosphate etc.Exportimport of shipment 18 be transported from Chennai port to Visakhapatnam port using the costal shipping route.  Rebates of freight rates based on loyalty agreements. Liner shipping is governed by shipping co nference and offers the following advantage to shippers: -  Regular sailings to scheduled ports of call. Pre-determined voyages and trade routes and published ocean freight rates. apeejay .

Exportimport of shipment 19  The cargo space on the tramps is booked by the brokers located in major port cities like New York. STANDARD CONTAINERS apeejay . Rotterdam Hamburg.Kong etc. and Hong. London.

E ortimport o shipment : Int rnational apeejay £ ¡ ¢ 20 ransaction .

The exporter manufactures the goods specification given in purchase order. ix. ii.Exportimport of shipment EXPORT PROCEDURE AND DOCUMENTATION 21 In India. ships transport more than 90 per cent of the cargo. Bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc. Processing of an export order ----i. vii. Custom department check the export cargo on the basis of information provided on the shipping bill. The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtains the bill of apeejay . obtain port permit and prepare shipping bill which is a customs documents. iii. Above those documentation sends to CHA by exporter. As soon as the goods are ready the exporters invites the representative of Export inspections agency (EIA) for p re shipment inspection and obtain the certificate of inspection. After the process negotiations importer sends a pu rchase order follow by letter of credit (if applicable). viii. v. After that. If satisfy then cargo allow to loaded on the board of ship. It therefore interesting to study the export processed by ship documentation related to it. the exporter prepared following documents: ----  INVOICE  PACKING LIST  ARE1 FROM EXSICE DEPARTMENT  MARINE INSURANCE POLICY  COPY OF PURCHASE ORDER / L/C vi. according to the iv. Based on these documents CHA agent completes the octroi formalities. Exporter operation starts with the receipt of enquiry by the exporter from importer.

x. bank scrutinizes these documents and if found correct make payment to exporter against documentations. After that the exporter submitted above these documents for negotiation to the bank which include : --- Commercial invoice  Packing list  SDF form  Original copy of purchases order  Certificate of origin  Bill of exchange  Shipment advice After that.  Copy of purchase order or L/C  Copies of ARE1 Form  SDF form xi. After that. CHA agent send various documents back to exporter which is³  Customs attested invoice  Copy of shipping bill  Full set of non board bill of lading.B/Lis a proof of dispatch of cargo and also a negotiable document. apeejay .Exportimport of shipment 22 lading(B/L) from shipping line .

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5 cubic feet 0.091 ubic Meters  28 8 LARGE BOXES 18x18x24 inches 4.125 ubic Meters .5 Cubic Feet 0.1 Cubic Feet 0.E portimport o shipment  DATA ANALYSIS How Big is a Cubic Meter? Calculation: Length x Width x Height divided by 1728 = cubic feet divided by 35 = cubic meters.043 ubic Meters  18x18x17 inches 3. 23 BOOK BOXES 11 MEDIUM BOXES = one cubic meter (appr x) (appr x) (appr x) r mix and match: = one cubic meter = one cubic meter = one cubic meter apeejay   13x13x17 inches 1.

because the volume or weight that can be loaded into an aircraft is limited. assume it weighs 150kg. Next. However since 11th September 2002. In order to establish if the cargo will be a weight or volumetric based shipment. These rates do not include the following: y y y y y y Collection of air cargo from the consignor's/exporters premises Delivery of cargo from the airport of destination to the consignee's premises Storage of cargo before or after loading Customs clearance in the country of destination Any duties and taxes that may have to be paid Insurance Chargeable/volumetric weight Airline freight rates are based on a "chargeable weight". width and height of that parcel. whichever is the highest. For example. weigh the parcel. Airfreight rates cover transportation from the airport of loading to the airport of discharge. Step 1 Measure the parcel/cargo along the greatest length. apeejay . 100 cm (L) X 100 cm (W) X 100 cm (H) = 1 000 000 cm3. The chargeable weight of a shipment will be either the "actual gross mass" or the "volumetric weight".Exportimport of shipment 29 Air freight calculation Introduction Airlines that are members of the International Air Transport Association (IATA) are bound by their membership to comply with tariffs issued by IATA. The chargeable weight is calculated as follows: 1 metric ton = 6 cubic metres. airfreight rates are now extremely negotiable.

Exportimport of shipment 30 Step 2 Now divide the 1 000 000 cm3 by 6 000 = 166. The air waybill The air waybill. If the weight is 150 kg then the airline would base the freight on the higher amount being: 166. The airline would issue an air waybill to the consolidator when accepting the Unit Load Device and in turn the consolidator would issue the supplier/shipper with a house air waybill. at the airport of discharge for clearing purposes .66 kg Consolidation Consolidation is an economical method of moving cargo by employing a consolidator. The supplier/shipper would have a contract of carriage with the consolidator of the cargo and in turn the airline would have a contract of carriage with the consolidator. unlike the ocean bill of lading is not a document of title to the goods described therein. the consignee/receiver and the consignment/goods It is an invoice showing the full freight amount It must be produced. The consolidator then books the Unit Load Device with an airline. The consolidator receives cargo from a number of suppliers/shippers and then combines these cargoes into one consignment by packing the goods into a Unit Load Device. however it does perform several similar functions these are: y y y y y It is a receipt for the goods It is evidence of the contract of carriage between the exporter and the carrier It incorporates full details of the consignor/shipper. You have now converted the centimeters (cm) into kilograms (kg) Step 3 Now compare the weight to the volume.66 kg. be it in an electronic format.Sea freightcalculations apeejay .

The cost of bunker oil fluctuates continually and with comparatively little warning. This cargo is measured along the greatest length. The cargo is also weighed. width and height of the entire shipment. Step 2 Calculate the freight with the greater amount either the mass or the dimension. breakbulk and containerised. Step 1 Multiply the metres 2. one cubic metre or one metric ton.2% US Dollar 1 250. which ever yields the greatest revenue. which is either 1 metric ton or 1 cubic metre. All shipping lines carrying cargo in a break-bulk form insist on payment based on a minimum freight charge which is equivalent to one freight ton.00 per 6-M container + BAF 5. Bunker Adjustment Factor (BAF) "Bunkers" is the generic name given to fuels and lubricants that provide energy to power ships. palletised or strapped.00 Freight would be paid on the measurement and not the weight. Shipping lines quote break bulk cargo per "freight ton".2% = US Dollar 65.5 X 1 X 2 = 5 metres Compare to the mass = 2 Mt. In this section we deal with how you should calculate the freight costs of both of these two types of seafreight.Exportimport of shipment 31 Introduction Seafreight calculations can broadly be divided into two main components.00 X 5.00 = USD 550. Break bulk cargo calculations Break bulk cargo.00 apeejay . Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250. 5 X USD 110. is cargo that is unitised.

00 X 16.25 (add to freight rate) US Dollar 1 456.00 Currency Adjustment Factor (CAF) The currency adjustment factor is a mechanism for taking into account fluctuations in exchange rates.25 Port Congestion Surcharge Congestion in a port for a period of time can involve considerable idle time for vessels serving that port. Carriers sailing within the vicinity of a war zone may impose a war surcharge on freight to compensate for the higher risks involved and the higher levels of insurance premium.5% US Dollar 1 250. Another factor which influences port congestion surcharge would be labour disputes. this creates a huge amount of loss for the ship's owner. these fluctuations occur when expenses are paid in one currency and monies earned in another by a shipping company. Total amount of surcharge 16. Consolidation services apeejay . Port congestion surcharges are calculated as a percentage of the freight rate as expressed in the previous examples. It is always expressed as a percentage of the basic freight and is subject to regular review. War Surcharge The outbreak of hostilities between nations can have a serious effect upon carriers servicing international trade even though they may sail under a neutral flag. The currency adjustment factor is a mechanism for taking into account these exchange rate fluctuations.Exportimport of shipment 32 Add the two amounts together Freight rate: U S Dollar 1 315.5% = US Dollar 206. Shipping lines therefore have the right to impose a surcharge on the freight to recover revenue lost. When a ship lies idle. which they may be obliged to pay.

The bill of lading is a freight invoice and indicates if the freight costs have been prepaid by the exporter or will be paid by the importer. The name of the shipper and the receiver of the goods the consignee. Every original bill of lading signed by or on behalf of the shipping company is a document of title to the underlying goods. The bill of lading states the number of packages. The benefit for the exporter is that small quantities which. Example: US Dollar 89. The consolidator would charge per metric ton or cubic metre. can be shipped by sea freight in a shipping container as an alternative to air freighting the goods. It is a document of title to the goods stated thereon. one of which being accomplished the others to stand void". The consolidator would be issued with an combined through bill of lading from the shipping line and then present the exporter with a house bill of lading (See bill of lading below) The bill of lading The bill of lading performs the following functions: y y y y y y y A contract of carriage between the shipper of the cargo and the carrying shipping company. The shipping line would have a contract of carriage with the consolidator and in turn the consolidator would have a contract of carriage with the exporter. This special function of a bill of lading is achieved by a form of words which state: "In witness whereof the undersigned on behalf of the shipping company has signed three bills of lading all of this tenor and date. would not fill a full container load. apeejay .00 Weight or Measure. which ever yields the greatest. "freight collect".Exportimport of shipment 33 The consolidator or groupage operator hires a container from a shipping line and then sells that space to his clients/exporters. Shipping details such as: port of loading and the port of discharge. The contents of the packages as declared by the shipper. weight and dimension of the shipment.

Banks responsible for the payment of funds in payment for goods under letters of credit will not release the funds if the bill of lading has been endorsed "received for shipment".Exportimport of shipment 34 ENDORSED BILL OF LADING Bills of lading can only be issued with the words "shipped on board". Thus. By insisting that the exporter supplies the importer with a "shipped on board" bill of lading. "Received for shipment". the importer obtains conclusive evidence that the goods have been loaded on board the intended vessel. for many reasons delayed or the cargo may not be loaded at all. The risk remains that the loading may. apeejay . bill of lading will only indicate the ship in which the cargo is intended to be loaded on. bills of lading can be issued as soon as the goods have been delivered into the custody of the carrying shipping company or its agent either at the point of receipt or at the port of loading. if the cargo has actually been loaded onto the named vessel at the port of loading. a 'received for shipment". Some importers insist that the exporter presents "shipped on board" bills as a condition for payment.

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ai Logi ti in International B iness .Prof. om www.P of.exit. ommittedgro www. Rajeev Aserkar REFERENCES ² INTERNET www. om apeejay . of shipment 39 BIBLIOGRAPHY Ex o t Im o t Do mentation . www.

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