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Export procedure and Documentation



Submitted by

Malaviya National Institute of Technology JAIPUR

Export procedure and Documentation

Submitted by




Under the guidance of


Export procedure and Documentation


I hereby declare that Summer Internship Report is a record of independent work carried out by me during Third Semester, June 2011 to July 2010 for the purpose of Partial fulfillment of degree of Masters in Business Administration for MNIT. This report has not been previously submitted for the award of any university or institution.

Place: JAIPUR Date:


Export procedure and Documentation


This study will be incomplete without acknowledging a sincere gratitude to all those who contributed in some way or other in complete this study.

I wish to extend my sincere gratitude to our HOD Prof APS Rathore for providing me this extremely valuable opportunity to conduct the summer internship study as a part of the course.

I would like to thank Mr. Shailesh Shukla for his valuable guidance and precious time spent and help rendered during my study.

I am also thankful to Ahuja Sir and Rajinder Sir for enlightening me I am highly obliged and thankful to Ms. Anushree Gupta (HR) with the sense of gratitude. 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

Export procedure and Documentation


Important Abbreviations
Introduction of study Objective of study Scope of the Project Limitations of the study

Company Profile

Theoretical background Findings Bibliography/References

Export procedure and Documentation


Export procedure and Documentation

Export procedure and Documentation

This project is all about to know about export import procedure/ documentation of shipment. This project puts more focus on to know custom clearness, to make export - import invoice, to get shipping bill number from custom department etc. This project will also find out how UFLEX Ltd. 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. The purpose of the study was to know about export import documentation of seaway in the uflex ltd.

Export procedure and Documentation


The main objectives of the research were:

To know about export import process.

To know what are the documents required before and after sailing the cargo.

Export procedure and Documentation


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

Export procedure and Documentation


Not a panacea Not an exact science Limitation of time Erroneous findings Not exact tool for forecasting In experience research staff Narrow conception of marketing research

Export procedure and Documentation

After Pioneering the growth of the flexible packaging industry in India, Uflex has gained an unchallenged identity. Since its inception in the year 1983 it has turned into a multi billion company that values quality and customer satisfaction amongst other priorities. With consumers spread across the world, Uflex enjoys a global reach. Headquartered in Noida (National Capital Region, New Delhi) it has state of the art manufacturing facilities in India & Dubai. It has also established offices in UAE, Europe, North America and enjoys a formidable market presence in more than 85 countries. Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA approvals for their products. It is also a part of the D&B Global Database and winner of various prestigious national and international awards like the top exporter of BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL and the DUPONT Awards in 2004-2005 are the latest in this series. Being a multi faceted organization it has integrated its operations from manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metalized form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines, offering total flexible packaging solution. Uflex has always been committed to the industry by providing technical know-how and being the trend-setter in the flexible packaging industry . Being on the edge of innovation, Uflex endeavors to be the first to come up with advanced products that cater to the changing demands of the packaging industry. As part of the Uflex Group, it has over twenty years of experience in polymer technology. Setting milestones of success and innovation, Uflex is widely known for manufacturing and supplying products, delivering apt services around the world.

Export procedure and Documentation

Welcome to UFLEX - a world of complete flexible packaging solutions created with you at the centre. With you at the centre we conceptualized an enterprise that has taken us to strategic locations across the globe so that you find us closer in terms of ideas, markets, challenges, solutions and services. Today, we are available for you just around the corner, around the world. Putting you at the centre has also helped us evolve a corporate culture, flexible enough to respond to your demands and accommodate your needs. It has helped us to adapt our global industry insights to create solutions that keep your goals in focus. So across the world, you will find dealing with us as comfortable as with your local partner, yet backed with the formidable technological know-how of global players. Thinking of you has made us invest in the best inputs on the entire range of the flexible packaging spectrum. It also helps us offer the right mix of competencies from the entire range of possibilities on the flexible packaging spectrum, so that you get precisely what you need, whenever you need it. All this has added up to an edge that gives you access to not only the perfect product but also the complete process consultancy. This helps you derive the maximum mileage out of the products that we engineer for you. It's a distinction that can be brought to you only by the people who know every link of the flexible packaging chain inside out. So bring us a flexible packaging challenge and take back a relationship a relationship with an unparalleled competitive and innovative edge.

Export procedure and Documentation

The founder Chairman and Managing Director of The UFlex Group, Mr. Ashok Chaturvedi, pioneered the growth of Flexible Packing industry in India. He is hailed as the leader of this fast growing segment of packaging business in India. Mr. Chaturvedi's progressive thinking made him conscious of the need to offer solutions for Flexible Packaging and this led to the inception of a company for manufacturing packaging materials. Exhibiting inspiring innovativeness and entrepreneurial skills, Mr. Chaturvedi applied the latest international technologies for tailoring and designing packing material which adapted to the needs of the customers, winning markets globally.Appreciating the customer's needs for quality, prompt delivery and service, he decided to integrate backwards in the manufacture of Polyester Film, BOPP and Co-extruded Films, Gravure Printing Cylinders, Inks, Adhesives, Pet Chips, etc. This ensured the excellent quality of raw materials and timely delivery to the customer. Mr. Ashok Chaturvedi is one of a distinguished creed of first generation entrepreneurs, who has, through vision and dedication carved a niche for himself in the domestic industrial environment and also sculpted a global reputation for himself and The UFLEX Group.This far-sightedness has placed Flex as a major company in the global markets. Its export destinations have expanded to more than 101 countries establishing a reputation synonymous with reliability and excellent quality.Mr. Chaturvedi's achievements are by no means restricted to the industrial arena. The Flex Medical Centre, stands testimony to his concern for society. His commitment to enhancing the quality of facilities in the country is seen in the promotion of an advanced Modern Cricket Club, and the contributions towards the growth of institutions for management studies. It is Mr. Chaturvedi's dream and ambition to make The UFLEx Group a truly professional multinational corporation

Export procedure and Documentation


P.O BOX 17930, Jebel Ali Free Zone, Dubai, United Arab Emirates

Flex Americas S.A. de C.V., Mexico

Boulevard de los Rios 5680, Zona Puerto Industrial Altamira, Tamaulipas Mexico C.P. 89603

Flex P. Films (Egypt) S.A.E., Egypt

Plot No. R2 in Engineering Square (e2), Plot No. 3 in North Extension of Industrial Zones, 6 October City Arab Republic of Egypt

Flex Films Europa Sp. z o.o., Poland

PO. Box 62 300 Wrzesnia ul, Kaliska 30 Poland

Flex Films (USA) INC, USA

Elizabethtown, 1221 North Black Branch Road Elizabethtown, KY 42701

Flex America Inc., USA

14300 Cornerstone Village Dr Suite # 121, Houston, TX 77014

Uflex Packaging Inc., USA

Registered Office: 315, Lowell Avenue, Hamilton, NJ 08619 (USA) Marketing Office: 2460 Lemoine Avenue Suite #103 Fort Lee, NJ 07024

Uflex Europe Limited, U.K.

29 MARYLEBONE ROAD, London, London, London, NW1 5JX (UK)

UPET Holdings Ltd., Mauritius

Les Cascades, Edith Cavell Street, Port-Louis, Mauritius

UPET (Singapore) Pte. Ltd., Singapore

Registered Office: 10, Jalan Besar, #0-12 Sim Limi Tower, Singapore

Export procedure and Documentation

208787 Principal Place of Business: No 27, Rufflex, #5-02A Clifford Centre, Singapore 048621

UTech Developers Limited

Registered Office: 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash-I, New Delhi- 110 048 Corporate Office: A-107-108, Sector-4, Noida, U.P.

AKC Developers Ltd.

Registered Office: 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash-I, New Delhi- 110 048 JOINT VENTURES QCELL Limited Kairaba Avenue, P.O.Box 3469, Serrekunda, The Gambia, West Africa SD Buildwell Private Limited Registered Office: 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash-I, New Delhi- 110 048 Corporate Office: A-107-108, Sector-4, Noida, U.P. ASSOCIATES Flex Foods Limited Lal Tappar Industrial Area P.O. resham Majri, Haridwar Road, Dehradun - 248140 Uttarakhand (INDIA) BUISNESS DIVISION 1) 2) 3) 4) 5) 6) FILM DIVISION ENGINEERING DIVISION HOLOGRAPHY DIVISION CONVERTING DIVISION CYLINDER DIVISION CHEMICAL DIVISION

Export procedure and Documentation

A SHIPPING BILL FOR EXPORTS. A shipping bill, usually called Bill of Lading (B/L) is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document. For the ship's owner and his/her representant (the responsability of take the goods from one For the seller the documentary prove that the merchandise vessel, in certain conditions and consignee to certain merchandise conditions, characteristics and quantity. master's vessel) the place to another. was shipped in certain buyer. Including the

For the buyer, the neccessary document for claim the merchandise. For the Shipping Agency at the port of arrival represents the only and unique document for continue the process of commerce, without the B/L, or with one missfilled the merchandise could be in risk of be "holded". There are more than one way when this can happen, also more than one way for solve that problem. As you can see more than one party is involved in the preparation of the B/L, especially in the correct info filling, but the only one who can issue a B/L is the Shipping Ag. Other parties envolved may be, custom authorities, custom brokers and companies that handle the merchandise. This shipping bill is the same for exports or imports, just have to include the correct information and participants data.

Export procedure and Documentation


The INCOTERMS (International Commercial Terms) is a universally recognized set of definition of international trade terms, such as FOB, CFR & CIF, developed by the International Chamber of Commerce(ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial terms like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance and other costs and risks. The INCOTERMS was first published in 1936 --- INCOTERMS 1936 --- and it is revised periodically to keep with changes in the international trade needs. The complete definition of each term is available from the current publication --INCOTERMS 2000. Under INCOTERMS 2000, the international commercial terms are grouped into E, F, C and D, designated by the first letter of the term, relating to the final letter of the term. E.g. EXWexworks comes under grouped E. The purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods. Incoterms deal with the number of identified obligations imposed on the parties and the distribution of risk between the parties.

Export procedure and Documentation

In international trade, it would be best for exporters to refrain, wherever possible, from dealing in trade terms that would hold the seller responsible for the import customs clearance and/or payment of import customs duties and taxes and/or other costs and risks at the buyers end, for example the trade terms DEO (Delivery Ex Quay) and DDP (Delivered Duty Paid) Quite often, the charges and expenses at the buyers end may cost more to the seller than anticipated. To overcome losses, hire a reliable customs broker or freight forwarder in the importing country to handle the import routines. Similarly, it would be best for importers not to deal in EXW (Ex Works) which would hold the buyer responsible for the export customs clearance, payment of export customs charges and taxes, and other costs and risks at the sellers end TYPES OF SHIPPING BILL Based on the incentives offered by the government, customs authorities have introduced three types of shipping bills: DRAWBACK SHIPPING BILL: - Drawback shipping bill is useful for claiming the customs drawback against goods exported. DUTIABLE SHIPPING BILL: - Dutiable shipping bill is required for goods which are subject to export duty. DUTY-FREE SHIPPING BILL: - Duty-free shipping bill is useful for exporting goods on which there is no export duty. In order to facilitate easy recognition and quick processing, following colours have been provided to different kinds of shipping bills :

Export procedure and Documentation

Types of goods Drawback shipping bill Dutiable shipping bill Duty-Free shipping bill

By Sea Green Yellow White

By Air Green Pink Pink

CONTENTS OF SHIPPING BILL Name and address of the exporter. Name and address of the importer. Name of the vessel, master or agents and flag. Name of the port at which goods are to be discharged. Country of final destination. Details about packages, description of goods, marks and numbers, quantity and details of each case. FOB price and real value of goods as defined in the Sea Customs Act. Whether Indian or foreign merchandise to be re-exported Total number of packages with total weight and value. SIGNIFICANCE OF SHIPPING BILL a) Shipping bill is the main customs document, required by the customs authorities for granting permission for the shipment of goods. b) The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e. certified by the customs. c) Duly endorsed shipping bill is also necessary for the collection of export incentives offered by the government. d) It is useful to the Customs Appraiser while determining the actual value of goods exported.

Export procedure and Documentation

to the buyer, the shipping company may issue a separate certificate for payment of the freight charges instead of declaring on the main transport documents. This document showing the freight payment is called the freight certificate. Insurance Premium Certificate: this is the certificate issued by the Insurance Company as acknowledgement of the amount of premium paid for the insurance cover. This certificate is required by the bank for arriving at the fob value of the goods to be declared in the bank certificate of realisation. Combined Certificate of Origin and Value: this certificate is required by the Commonwealth Countries. This certificate is printed in a special way by the Commonwealth Countries. This certificate should contain special details as to the origin and value of goods, which are useful for determining import duty. All other details are generally the same as that of Commercial Invoice, such as name of the exporter and the importer, quality and quantity of the goods etc. Customs Invoice: this is required by the countries like Canada, USA for imposing preferential tariff rates. Legalized Invoice: this is required by the certain Latin American Countries like Mexico. It is just like consular invoice, which requires certification from Consulate or authorised mission, stationed in the exporters country.

Export procedure and Documentation


The common procedure of excise clearance under bond and under rebate is discussed as follows: Preparing of Invoice: The export goods have to be cleared from the factory under invoice. The invoice contains details like name of the exporter, value of goods, excise duty chargeable, etc. The invoice is to be prepared in triplicate. In case of export under Bond, the invoice should be marked as For Export without payment of duty. In addition to the invoice, a prescribed for ARE 1 has to be filed in by exporter. Filling up of ARE-1 form (Annexure-20): The ARE-1 form needs to be filled in four copies. A fifth (Optional) may be filled in by the exporter, which can be used at the time of claiming other export incentives. The ARE1 copies have distinct color for the purpose of verification and processing. Application to Assistant Commissioner of Central Excise (ACCE): The exporter has to make an application to ACCE regarding the removal of goods from the factory/warehouse for export purpose. Information to Range Superintendent of Central Excise (RSCE): The ACCE will inform the RSCE under whose jurisdiction intended to be cleared for export Deputation of Inspector: The RSCE will then depute an inspector to clear the goods, either at the factory or warehouse, and in certain cases at the port. Processing of ARE-1 Form: The Excise Officer/Inspector will make endorsement on all copies of ARE-1. The handling of ARE-1 Form is done as follows: the goods are

Export procedure and Documentation

o The inspector returns the original and duplicate copies to the exporter o The triplicate copy is sent to officer (ACCE or Maritime Commissioner (MCCE) to whom bond was executed or letter of undertaking (LUT) was given. This copy can also be handed over to the exporter in a tamper proof sealed cover to be submitted to ACCE/MCCE. o The 4th copy will be retained by the excise inspector. o The 5th copy is also handed over to the exporter. o At the time of export, original, duplicate and the 5 th copy (optional) will be submitted to customs officer. The customs officer will examine these copies and then export will be allowed. o The customs officer will then make endorsement of export on all copies of ARE-1. He will cite shipping bill number and date and other particulars of export on ARE-1. o The original copy and quintuplicate (optional) will be returned to the exporter. The duplicate copy will be sent directly to the ACCE\MCCE i.e. excise officer with whom bond was executed will get 2 copies, one from RSCE (or excise inspector) when goods are cleared from factory and other Custom Officer after export. This will enable him to keep track to ensure that all goods cleared from factory or warehouse without payment of duty are actually exported. In case of export after payment of duty, under claim of rebate, the basic procedure is same as above, except that the triplicate copy (by excise inspector) and duplicate copy(by customs officer)will be sent to the officer to

Export procedure and Documentation

whom rebate claim is filed. If claim of rebate is by electronic submission, these copies well be sent to excise rebate audit section at the place of export. Refund or Release of Bond: The exporter should make an application to the excise officer for refund or release of bond. The application must be supported by original copy of ARE-1 form. The excise officer crosschecks the original copy of ARE-1 form and the duplicate and triplicate copies of ARE-1 form, which he had received earlier. If the copies match, then refund is given or the bond is released

Export procedure and Documentation







Export procedure and Documentation


Export procedure and Documentation

Export procedure and Documentation


Export procedure and Documentation

In India, ships transport more than 90 per cent of the cargo. It therefore interesting to study the export processed by ship documentation related to it. Processing of an export order-----

i. Exporter operation starts with the receipt of enquiry by the exporter from importer. Bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc.

ii. After the process negotiations importer sends a purchase order follow by letter of credit (if applicable).

iii. The exporter manufactures the goods according to the specification given in purchase order.

iv. As soon as the goods are ready the exporters invites the representative of Export inspections agency (EIA) for pre shipment inspection and obtain the certificate of inspection.

v. After that, the exporter prepared following documents:--- INVOICE PACKING LIST ARE1 FROM EXSICE DEPARTMENT MARINE INSURANCE POLICY COPY OF PURCHASE ORDER / L/C vi. Above those documentation sends to CHA by exporter.

Export procedure and Documentation

vii. Based on these documents CHA agent completes the octroi formalities, obtain port permit and prepare shipping bill which is a customs documents.

viii. Custom department check the export cargo on the basis of information provided on the shipping bill. If satisfy then cargo allow to loaded on the board of ship.

ix. The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtains the bill of lading (B/L) from shipping line .B/L is a proof of dispatch of cargo and also a negotiable document.

x. After that, CHA agent send various documents back to exporter which is Customs attested invoice Copy of shipping bill Full set of non board bill of lading. Copy of purchase order or L/C Copies of ARE1 Form SDF form

xi. After that the exporter submitted above these documents for negotiation to the bank which include :--- Commercial invoice

Export procedure and Documentation

Packing list SDF form Original copy of purchases order Certificate of origin Bill of exchange Shipment advice

After that, bank scrutinizes these documents and if found correct make payment to exporter against documentations.

Export procedure and Documentation





Export procedure and Documentation

EXPORT INVOICE ELEMENT OF EXPORT INVOICE: Exporter Consignee Invoice No. and Date Exporter Ref. Buyer order no and date Other reference Buyer (other than consignee) Country of origin of goods Country of final destination Terms of delivery and Payment Pre-carriage by Place of receipt by pre-carrier Vessel/ Flight no.

Export procedure and Documentation

Port of loading Port of discharge Final Destination Marks and Nos. / No & Kind of pkgs. Item code Description of goods Net weight Gross weight Quantity Rate CIF EURO Amount CIF EURO Amount in words Declaration: Authorised signature

Export procedure and Documentation

Export procedure and Documentation

Export procedure and Documentation Step 12

Export procedure and Documentation

Export procedure and Documentation

Export procedure and Documentation

Bill of Lading

Export procedure and Documentation


Export procedure and Documentation