INTRODUCTION

INTRODUCTION TO IMPORT Import is any good (e.g. a commodity) or service brought in from one country to another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale.
Currently India stands 15th in the list of countries by imports at a value of $ 287

billion and 2.21% of the total word import.

INTRODUCTION TO EXPORT The definition of Export" is when you trade something out of the country. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Currently India stands 23rd in the list of countries by exports at a value of $ 155 billion and 1.24% of the total word export.

GATEWAYS TO GLOBAL MARKETS Exports are key to the economic survival of a nation. Exports not only help a country earn foreign exchange, they help create jobs, peace, prosperity, and the power to influence. To be successful in exporting and importing, it helps to know why so many export and import businesses do not succeed. Success cannot be rushed by high hopes. Rather, it comes incrementally.

EXPORT IMPORT DOCUMENTATION AND PROCODURE

The success of an export business is often attributed to luck. Work harder and there will be more luck. The export success of Taiwan, China, Japan, South Korea, Germany and other countries (areas) is not a miracle, it is the result of hard work. The business miracle will not happen without working hard. However, success cannot be rushed by hard work. The events in a large number of export offices worldwide are comparable to the events in a football game. It is not unusual to see colleagues kicking responsibilities back and forth, just like football players do the ball. It is important that employees' responsibilities are clearly spelled out and that systems of operation are flexible in order to accommodate the rapidly changing needs of world markets.

Dangers of Imbalance in International Trade Trade surplus---favorable balance of trade---is an excess of exports over imports. Trade deficit---unfavorable balance of trade---is an excess of imports over exports. In layperson's parlance, the trade surplus means earn more and spend less, while the trade deficit means spend more and less. The trade surplus and deficit is analogous to one person's fortune is another person's misfortune. The danger is imminent in either situation. A country with a record trade surplus is often threatened with sanctions and trade barriers from a deficit-ridden importing country. A country with a record trade deficit is usually faced with the internal social upheaval. The imposition of trade barriers, such as import quotas and higher duties, is not a solution to meeting the international challenge. The trade barrier will be confronted with a trade retaliation. A trade retaliation will be faced with a counter-retaliation. The conflict will not end if an agreement is not reached. The remedy to beat the trade imbalance is to understand foreign cultures and business practices, and to provide competitive products and services.

EXPORT IMPORT DOCUMENTATION AND PROCODURE

It is a good practice to diversify export markets. Concentrating exports to only a few markets poses imminent danger to an exporting country. Too much export concentration in a market usually invites protectionist trade laws from the importing country. In case the importing country imposes sanctions, the effect to the economy of the exporting country and the livelihood of its people can be devastating. Changing Global Marketplace and Meeting Challenges The world markets have changed enormously in the past decade. New markets have been opened with the end of cold war. New economic blocks have been formed. New trading alliances are shaping. Inevitably, a new way of thinking and approach to doing business is necessary in order to survive in the fast changing economy. Exports are key to the economic survival of a nation. A nation that exports more will grow stronger. The stronger a nation is, the more recognition and respect it will earn. Increased Worldwide Competition There can be no growth without competition. As the world population grows, which is estimated at a rate of 1.7% annually, more products and services are needed. Business people worldwide are keenly competing to fill these needs. World trade grew in volume at an average of 5% annually over the past 25 years. With the end of cold war, more resources worldwide are geared towards exporting. The export business has become more competitive. Exporting becomes more challenging with continued population growth and the addition of new exporters.

Effects of Social Upheaval and Recession Any form of instability in a country can ruin its economy and may place its international trade in disarray. With the end of cold war, the earth has become a more peaceful place to live. However, an alarming occurrence is the growing

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number of permanent lower class in numerous countries, including in developed nations. The adverse effect of social upheaval is paramount. It can undermine the economic progress of a nation. There is an urgent need to stop the growing number of the lower class. The task requires a concerted effort from the government and people. The task is not easily done. The effect of recession is immense, businesses sink, dreams of a lifetime shatter, and the lower class increases. Vigorous export promotions, increase in exports, and diversification of export markets can help reduce the number of the lower class. Use of Terminology in Different Countries The use of terminology differs from country to country. The term salesperson is easy to decipher as the salesman or saleswoman, but it is a term that is unheard of in some countries. The account manager is the sales representative, the buyer is the purchaser, the accounting assistant is the bookkeeper, the human resources department is the personnel department, the flat is the apartment, the chop is the stamp, the motor carrier is the trucking company, and the letter carrier is the postman.

The Role of Export-Traders and Buying Trend Export-traders play a crucial role in international trade. Prior to the 1970's when export product quality was a common problem in many less developed countries, foreign buyers relied on export-traders for product sourcing and pre-shipment inspections. The nature of the order then normally was fewer items and more volume, that is, the number of items was few and the quantity of each item was

EXPORT IMPORT DOCUMENTATION AND PROCODURE

large. At that time, many manufacturers did not know how to export, thus they relied upon export-traders for exporting, known as indirect exporting. There were far fewer exporters worldwide before the 1970's. The foreign buyers then did not have many export sources from which to compare an offer. The export business was lucrative due to much less competition. As time progressed, competition built. The manufacturers competed on providing better quality products and lowering prices. The price war made the traditional practice of single source of supply difficult for export-traders to maintain. The export-traders changing the source of supply of similar products from one manufacturer to the other became inevitable. The manufacturers needed to survive and direct exporting was the solution. Many manufacturers started exporting directly in the mid-1970's. Export product quality in general improved markedly in the late 1970's. However, the problem of quality remains a nightmare to some importers. During the oil crisis of the late 1970's, there was a significant increase in the number of manufacturers who export directly. Many foreign buyers deal directly with the manufacturers to save commission or fees and/or markups of export-traders. Tools of Export-Import Communication The telecommunication technology 'explosion' in the past decade has changed the way people interact around the world. With new technology on hand, some of our prime tools of export communication, for example telex (teletype exchange or teleprinter and exchange), have become obsolete. The telex, like a fax (facsimile) or an e-mail (electronic mail), uses a telephone line in transmitting the messages. Telex was the 'e-mail of yesteryear'. But instead of a computer screen, you have a roll of paper, which may come in duplicate, triplicate or quadruplicate, either carbonless or the much older type having a

EXPORT IMPORT DOCUMENTATION AND PROCODURE

carbon paper in between the sheets, where the outgoing and incoming messages appeared, that is, where the messages are typed. And instead of saving the typed message in a computer disk or hard drive, each alphanumeric character that was keyed (typed) in a telex, aside from appearing on the paper roll, is simultaneously translated and stored in a paper tape in coded form in a series of punched holes. Keying a wrong character may mean retyping the message from the beginning. The 'final' tape is rerun to send the message out or make additional copies of the message. The advantage of having a 'final' tape is to save the transmission time and cost. Or, you can send the message directly. Each character that was keyed (typed) will instantly appear at the receiver's end. Therefore, as long as the line is 'on', the sender and the receiver can 'talk' over the telex, that is, exchange messages over the telex while the line is 'on'.Although the e-mail is popular nowadays, the fax remains as an important tool of export communication in many countries

Types of Import/Export Businesses

The fact is, any business that is not only selling domestically is in the supply and demand chain of import export business. This also means, if you've ever sold any product on eBay, you may very well be in the import export business. Import export businesses can be simplified to the following processes. It starts from a manufacturer producing merchandise. Its exporter/export trading company will then promote the products internationally. An importer/import trading company buys the

EXPORT IMPORT DOCUMENTATION AND PROCODURE

products for a particular buyer, and the buyer will then sell to a retailer or directly to the customer. Thanks to technology and also to the English language, the import export business has become everybody's business. There are several types of work that can be done by individuals/small companies. The following are several types of import export business that you can do. Manufacturer's representative: If you are specialized in a certain industry, you can very well go to an oversea manufacturer and ask to represent them in the countries of your choice. A representative has the edge because you are the expert in the industry or a certain market. For example, if you are an expert in the wooden furniture business and you have been selling in the western US region, you have the great opportunity of going to a Chinese furniture maker and asking to be a representative of their western US region. Most of the manufacturers love people like you because you are their free labor (no base, only commission) to help them get into the market. It's a win-win situation for both you and the manufacturer. 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 labeling and packaging; arranging shipping; and sometimes getting financing. In some cases, the EMC even takes title to the goods, in essence becoming its own distributor. EMC's 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
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hunts down domestic sources 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). Import/export Agent: The true broker definition, this business never or at the very most, rarely Distributor or wholesale distributor: a company that buys the product you has imported and sells it to a retailer or other agent for eventual distribution to the end user. Representative: a savvy salesperson who pitches your product to wholesale or retail buyers, then passes the sale on to you; differs from a manufacturer's representative in that he doesn't necessarily specialize in a particular product or group of products. On the other hand, he/she has a very good relationship with one or many wholesaler/retailers. Retailer: the tail end of the trade channel where the merchandise smacks into the consumer; as yet another variation on a theme, if the end user is not Joan Q. Public but an original equipment manufacturer (OEM), then you don't need to worry about the retailer because the OEM becomes your end of the line (think Compaq purchasing a software program to pass along to its personal computer buyer as part of the goodie package).

EXPORT IMPORT DOCUMENTATION AND PROCODURE

REVIEW OF LITERATURE
Review of literature shows the previous studies carried out by the researcher in this field in order to gain insight into extent of research. The research problem can be more understood and made specific referring to theories, reports, records and other information made in similar studies. This will provide the researcher with the knowledge on what lines the study should proceed and serves to narrow the problem.

EXPORT IMPORT DOCUMENTATION AND PROCODURE

Thomas A. Cook (1994) says, One of the major pitfalls in an international sale is the quality of the documentation supporting the transaction. A mistake in spelling, execution, language or number of copies will cause substantial delays in obtaining clearance and require additional expenditures to complete the process. Many potential exporters shy away from exporting due to the fear of the potential headaches caused by export documentation. In reality, while the process is complicated and has a steep learning curve, with the right approach and support from several resources the process can be simplified and the inherent obstacles lifted. Most of the necessary documents required for an export transaction are the invoice, packing list, export declaration and the bill of lading. Other documents that may be required include: payment instruments (letters of credit, sight drafts), health/sanitary certificates, certificates of origin, export/import licenses, SGS inspection certificates, carnets (customs passes), certificates of insurance and required import documents. In addition to knowing the specific documents, the exporter will need to know language, the number of copies, required signatories, format, notarization, consularization, and the shipping instructions.

Laurel Delaney (2006), describes AES Direct, a free online process for filing Shipper's Export Declarations. AES stands for Automated Export System. Here are some highlights: 1. Ensures export compliance - It returns a confirmation number to verify that you

successfully filed your export documentation. 2. Corrects errors - Get immediate feedback when data is omitted or incorrect and

correct errors at any time. 3. Eliminates paper review - Eliminates time delays of handling paper.

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4.

Stays up-to-date with trade agreements - AES conforms to NAFTA and GATT,

making it easier to do business in multiple countries. 5. Evaluates and measures potential markets - Provides accurate and timely export

statistics.

KOCH AND JOHN (2007) say the subsequent need is to reduce the risk of loss to the small business exporter if and when their foreign customer does not pay the exporter's sales invoice. Again, there are solutions to mitigate these risks of loss, which result from two sets of risk of loss event perils: 1. Foreign "Commercial" Risk of Loss Events This event occurs in the foreign client's inability or failure to pay invoices due to Bankruptcy/Insolvency, Slow-Pay Behavior (Protracted Default) , Devaluation of Foreign Currency 2. Foreign 'Political' Risk of Loss Events This event occurs when a foreign country's regulations and statutes allow Confiscation of Goods, Suspension of Import Licenses, War, Civil Strife, Rebellion, and Currency Inconvertibility Sales made under irrevocable letters of credit (LCs) are a traditional tool used to mitigate risk of loss. An LC places the U.S. exporter's bank and their foreign customer's bank inside the trade transaction, reducing the risk of loss to both parties for failure of either one to live up to the export sales/purchase contract. The exporter's commercial bank will assist with the LCs if the bank provides international banking services, or if the bank uses another correspondent bank that maintains an international banking department. There are some drawbacks to LCs. Not all foreign buyers can pay under an LC because of the high fees, often 2-3% of shipment value. An LC requires a credit relationship between the foreign importer and its bank, which might divert precious working capital from the foreign buyer's other local credit needs.

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CORINNE CAMPBEEL

(2009): says, The True Cost of Exporting is the cost of

export documentation, a necessary expense that can be eased by knowing whats required. Here are some ways to tighten up on export documentation.

Organizing the right documentation and paperwork makes the export process simpler, smoother and cheaper. When it comes to a paper trail in export, it doesnt matter if you are shipping large volumes or just sending a few samples: the goods have to get there and the exporter has to get paid. Not having the right paperwork can result in an importer not being able to accept the goods and the exporter not being paid, which is costly in terms of time and money. Export documentation covers the spectrum of: shipping documents, commercial documents, inspections, permits and consular stamps. Each requires preparation time, courier costs and fees with its associated risks of mistakes adding to delays and considerable costs. Documentation must be precise because slight discrepancies or omissions may prevent merchandise from being exported, result in non-payment, or even result in the seizure of the exporters goods by customs. Most documentation is routine for freight forwarders and customs brokers, but the exporter is ultimately responsible for the accuracy of its documents. The number and kind of documents the exporter must deal with varies depending on the destination of the shipment. Because each country has different import regulations, the exporter must be careful to provide all proper documentation. It is important to do your research with customs, your industry association, government departments, freight forwarders and the overseas buyer to be fully aware of the procedures per product and per country of export. It would be a waste of time and money to go through researching the specific needs of your export and not having the internal knowledge to implement a process. Training yourself and your staff in the intricacies of export including documentation,

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logistics, finance as well as cultural issues can make the difference between being successful for years to come or failing after the first shipment. International trade carries high levels of risk. Knowing how to avoid the pitfalls is the key to success. POSNEN AND MATIN (2000) in his study found that it is surprising that many traders do not use Inco terms to help them draft their export documentation. The International Chamber of Commerce's (which has an international membership from over 130 countries) Guide to Inco terms 2000 is a superb helpline to the companion Inco terms 2000, which came into force on 1 January 2000. A definition of EXW EX Works says there is not only a color chart showing the seller's primary duty but it also describes the documents required, the optional documents that may be required and the buyer's primary duty.

Foreign Trade Policy 2009-2014 Special Focus Initiatives: Government of India shall make concerted efforts to promote exports in all sectors by specific sectoral strategies that shall be notified from time to time Rs. 325 crores would be provided under promotional schemes for textile for exports made with effect from 1st April 2009. EPCG Scheme at zero duty has been introduced for certain engineering products, electronic products, basic chemicals and pharmaceuticals, apparel and textiles, plastics, handicrafts, chemicals and allied products and leather and leather products. . Under DEPB Scheme,

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a. Duty credit scrip under Chapter 3 i.e. Promotional measures and under DEPB scheme will now is issued without waiting for realization of export proceeds. The exporters will be required to submit proof of export proceeds realization with the time limits prescribed by RBI. This provision is now applicable. b. DEPB scripts were earlier used for payment of duty only on imported items that were under free category but now this utilization is now extended for payment of duty for import of restricted items as well. Under EPCG Scheme, a. In case of decline in exports of a product(s) by more than 5%, the export obligation for all exporters of that product(s) is to be reduced proportionately and this provision is extended for the next year. b. Reduction in customs duty under EPCG scheme from 5% to 3%. Additional funds of Rs. 1200 crores have been allotted for CST/TED/Drawback refunds. Allowing payment of interest on delayed payments of Terminal excise duty and central sales tax. An additional fund of Rs. 1400 crores is provided to clear the backlog claims of TUF. Government of India, Rates of Duty Drawback, 2010-2011. 1. The drawback rates have been determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, standard input/output norms (SION), share of imports in the total consumption of inputs and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculation. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods has also been factored. The

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Commissioners may ensure that the exporters do not avail of the refund of this tax through any other mechanism while claiming the all industry rate of drawback.

2. The Drawback Schedule includes several new items. These include coffee (raw beans), in bulk, coffee (roasted and /or decaffeinated), in bulk, tea, in bulk, tea in consumer packs including tea bags(sachets), instant coffee, parts/components of harness and saddler made of leather or non leather including textiles or synthetic materials, stainless steel, jeweler, brass bushes and optical fibre cables. The Schedule may please be perused for details.

COMAPANY PROFILE KUNDAN GROUPS

As it is rightly said dont aim for success if you want it; just do what you love and believe in, and it will come naturally. It dates back to early eighties when with a small scale unit of rice mill in Haryana the journey to this glorious name KUNDAN began. The empire established with this small business unit of rice primarily focusing India, was soon a known name and a recognized brand. Later in 1990s Kundan got its recognition worldwide and it diversified into several more divisions.
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We at Kundan did not wait for success to happen for us but, with our hard work, determination and farsightedness we have struggled to move ahead of it. We opt to be a leader driving continuously towards our dreams and goals. Kundan might just be a name to many for several companies and different divisions that breathe under it, but it is a dream for all who aspire to reach out to their goals and wants to perceive best in life following their dreams. From being a Star Trading House, it has been awarded as Government of Indias Recognized PREMIER TRADING HOUSE in 2011. Being ISO 9001 Certified, Kundan is just another name to delivering finest quality goods and services. Besides its parent division, Kundan has several divisions under its umbrella that are marking an edge to its name. In total we have 6 different divisions namely, Chemical & Solvents, Polymer, Precious Metals, Commodities, Pharmacy & Biotech and the very own Rice.

Kundan lives up to its meaning The Untouched Sparkling Gold. The commitment for excellence and to serve our business associates & customers with the best always is what keeps us inspired to achieve greater heights. Improvement, achievement or success has no meaning to us until there is a continual growth and progress, happiness and contentment in the eyes of everyone we work for. We are the men of value. Kundan is a group of highly motivated, confident and happy individuals who strive to achieve and learn continuously in this ever changing, demanding and competitive world. The commitment for excellence and challenge to serve our business associates and customers with best always is what makes us different

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from our competitors. Kundan is one of the leading groups involved in import, export and manufacturing of various products with an annual projected turnover of about USD 1 billion. With a manpower more than 500 heads with an A-class infrastructure, Kundan is dedicated to employee empowerment and satisfaction. Our corporate office is in Delhi and zonal offices are at Ahemadabad, Mumbai, Kolkata and Hyderabad. Besides this, we have 22 sub offices in all major cities across the country. For international trading and services we have appropriate presence in overseas locations through our partners and associates.

Values

To make Customer Delight-the criterion of our business. To forge Long-Lasting and Reliable Relationship with our suppliers. To consistently deliver Highest Standards of Quality through a Continuous Learning process, thus staying ahead of the competition and offering total quality solutions.

Vision
"Our vision is to become a truly Global Organization in the business of international trading by continuously upgrading our quality systems and professional skills".

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KUNDAN AT GLANCE
We are a family with diversified groups, all living in peace and prosperity. Chemicals & Solvents At Kundan, we believe that the nature is a vast chemical laboratory in which all kinds of composition and decompositions happen. We believe that success is little more than a chemical compound of man with moment. On the whole, Kundan is harnessing the clout of chemistry to make this world safer, greener and cleaner for generations to come. The chemical division deals with a number of industrial users by importing, storing and distributing various chemicals.

Kundan is an active and the most trusted name amongst the major chemical users/suppliers spread all over the nation. The eminent list of clienteles includes various industries such as Drugs & Pharmaceuticals, Plywood & Laminates, Soaps & Detergents and Paints & Thinners etc. Our suppliers are regular and reputed manufacturers widely spread round the globe.

We are confident and looking forward to explore every opportunity in the growing global economy.

Industries Kundan Serves

Adhesives Chemical Intermediates Pesticides Drugs & Pharmaceuticals Plasticizers

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Laminates & Plywood Glassware Laboratory Reagents Paints & Thinners Soaps & Detergents Synthetic Resins Textiles Cosmetics & Toiletries Ink Manufacturing Printing & Dying Food Processing Cleansing Fluids

Our Strength as a leading Importer having strong banking line to bring the material in big volume to minimize the financial cost. Sourcing foreign exchange at competive price to make the lowest possible cost for the goods arrving in India. Doing our own chartering of the ships to minimize the transportation cost. Having long lease tank arrangements at all the major ports of the country to minimize the cost of storage.

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Having our branches in all the parts of the country to provide the services locally to the associated end users. Company has branches in all the parts of the country to avoid double taxation. As per regulation in India if any sale is made inter state in that case it attracts 2% Central Sales Tax, but if the company supplies the material locally within the state then there is no need to pay the Central Sales Tax. Long term arrangement with the tanker transporters to provide them regular business and benefiting us with the lowest possible transportation cost with no risk of pilpherage as well as adulteration of the material. Long term association with the end users to provide material delivered at their door step and hassel free at the minimum cost. Having full fledged insurance department to have the insurance on most competitive price and benefit of this is passed on to the end users. Provide the material to our associated end users on their credit terms of their circle enhancing their capacity of production to the extent possible. Full fledge department for the collection of payment. Having best negotiation of the finance by the bank on the big volume of L/C resulting the lowest cost of finance while importation. Third country financial arrangement to have credit to our customer at the lowest possible cost. To provide the technical support to our end users by organizing meeting with the technical expert of their field. All the safety and hazardeous regulations are being followed from the initial stage till end.

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All the environmental recommendation and regulations are being followed from Government and our related suppliers. To provide material to the end users with the minimum possible cost.

Products Kundan Serves

ACETIC ACID ACETONE AMMONIUM CHLORIDE AMMONIUM BICARBONATE BUTYL ACETATE BUTYLE ACRYLATE MONOMER (BAM) CYCLOHEXANONE CAUSTIC SODA ETHYL ACETATE ETHYLENE CHLORIDE (EDC) GLYCERINE ISO PROPANOL (IPA) METHANOL METHYL ETHYL KETONE (MEK) METHYLENE DICHLORIDE (MDC) MONO PROPYLENE GLYCOL (TECH/USP) MALEIC ANHYDRIDE 21

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MELAMINE MIBK NORMAL BUTANOL PHTHALIC HYDROXIDE

Polymers Kundan has been a dominant player in the field of various type of polymers like Poly Vinyl Chloride, Ethylene Vinyl Acetate, Styrene Butadiene Rubber, and Acronytryl Butadiene Styrene and various other Polymers catering the need of various industrial under taking.

KUNDAN has made tie-ups with International Majors of Polymer Industry to minimize the cost which ultimately lead to cost advantage to everyone. Our supplies are regular & are in bulk from reputed manufactures in Korea, China, Taiwan, Thailand, Iran, Qatar, UAE, USA, Europe, South Africa, UK, Singapore, Malaysia, Indonesia, Libya, Russia & Romania etc.

KUNDAN is dedicated to : Reduction of cost without compromising on quality. Maintain leadership in Polymer Sales & Marketing, Logistics & excel in supply chain management. We are confident & looking ahead to explore every opportunity in the growing Global Economy.

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Product : PVC Resin (Poly Vinyl Chloride) EVA Resin (Ethylene Vinyl Acetate) Epoxy Resin GPPS/HIPS (General Purpose and High Impact Polystyrene) LDPE (Low Density Poly Ethylene) HDPE (High Density Poly Ethylene) PP (Poly Propylene)

Precious Metals The prime objective is to get Precious Metals business to the new heights, optimize growth of our organization as well as our associates. Likewise, we wish that our customers and suppliers share their experiences and knowledge with us to harmonize the synergy for growth of all of us and society at large. Global Scenario Precious Metals Precious Metals are those which are valued for their color, malleability and rarity. There are only three Precious Metals Gold, Silver and Platinum. Global market of precious metal is professionally growing at rapid pace. Precious metals are primarily monetary assets and partly commodities. The economic forces that determine the price of precious metals are different from, and in many cases opposed to the forces that influence most financial assets. South Africa is the world's largest gold producer followed by U.S. and Australia. People across the world are also getting fascinated by precious metals and their charm.

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 Commodities Kundan is dedicated to its premier services since long now. This division caters to the needs for the following:

Wax S. No. 1. 2. 3. 4. 5. 6. PRODUCT SPECIFICATION PACKING Semi Refined Oil content 3-5% melting point 60Paraffin wax of Iran 25kg to 30kg cartons 62C Colour-1 Orign Semi Refined Oil content 2.00% max. melting point Paraffin wax of 50kg/20kg per bag 58-60C China Orign Fully Refined Oil content 0.5% max. melting point Paraffin wax of 50kg/20kg per bag 58-60C China Orign Used drum 175kg Heavy Slack Wax Oil content 25-32% Net Weight (appx) Oil content 18-30% Flash Point Used drum 175kg Light Slack Wax (Min.) 250 pour Point (Max.) 60 Net Weight (appx) Colour (Max.) Kinematic Viscosity @ 100C CST: Used drum 175kg Residue Wax 8.73 oil content 50% Flash Point 155Net Weigh (appx) 160C Pour Point+30C

TABLE NO. 1 WAX

Agro-based products

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Cashew Coffe-arabic Pepper Crude palm oil Jeera Chilli Soy bean

Commodities remain to be a price driven market and we are committed to the best of our services in this field. Driven by the latest infrastructure, we try to cater and satisfy our customer with consistent quality and wide range of products. With a dedicated team, we are known for the goods and services delivered. Our commodities offered to various associates are the things with value and we feel delighted upgrading our demands and technology. Understanding the raw and ever changing demands of this industry we always try to be competitive and challenging.

Rice Kundan Rice Mills Ltd. (KRML) is the most trusted name in Rice Industry and known for its uncompromised quality, competitive rates, uninterrupted supply and after sale service. This spelt out as total customer satisfaction. We have the latest technology plant in Haryana (India) and is the first company which has started Sortex technology in India KRMLs Brand Name Vikrant and Kitchen King, well known and well established brands in Domestic as well as International Market

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Our vision is to preserve and enrich the legacy of Basmati in India and to emerge as the industry benchmark for product quality and customer service by ensuring the genetic integrity of the seed, by encouraging farmers to adopt scientific agricultural practices and by leveraging world-class rice processing technologies Quality has always been a prime consideration as this is what makes any product a Brand. Quality management at KRML starts at the grassroots and continues till the product finally reaches the consumer. We are equipped with the most modern machinery and advanced laboratories for extensive testing. Quality control processes are religiously adhered to in order to ensure uniformity in whatever we produce. It is ensured that each grain of rice is long and has its tip intact. Then we mill it to a whiteness of 40 Kett. And, finally, when all our stringent quality specifications have been met, we age it under controlled conditions for a period of over one year. We have a strong distribution network in all major basmati consuming cities in India. We are one of India's largest rice exporters to Saudi Arabia, Kuwait, UAE, Qatar, Norway, USA, Canada, Germany, France, and UK.

PLANT & TECHNOLOGY KRML has the world's latest Technology plants. Plant at Panipat, Haryana is one of the largest in the country with a milling capacity of 20 metric tones per hour The entire chain of processing is fully automated including packaging The world's best technology and equipments for churning out rice grains that can only be described as immaculate. The manufacturing facility has a strong scientific procurement system

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OBJECTIVES OF THE STUDY

The main objective of the training was to study the systematic export procedure & documentation of a reputed export house say kundan group to overcome any kind of error, frauds and mistake for the awareness and implementation of standardized ruleregulations & documentation to contribute the integration of International Business up to any extent.

To know the import export procedure in detail. To know Import & Export industry very well. To know the documentation process done by the CHA. To know the present scenario in Indian shipping line.

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RESEARCH METHODOLOGY
Research as a term stand for systematic investigation towards increasing the sum of knowledge Research Methodology is the methods involved in gathering meaningful data. The data which has been collected from various sources can be categorized into two fields mainly: PRIMARY DATA: Primary data collected through personal interview with the employee of the kundan groups and we have initiated our research going through the whole step wise processes of its routine activities. SECONDARY DATA: Secondary data is collected through some good articles of shipping times and some sites from internet. ANALYSIS PATTERN: The nature of the project is of the subjective nature so for the analysis of the available data, the use various statistical and mathematical and graphical techniques was not required. There were no additional statistical and technical tool were considered for suitability of the procedure & problem in order to achieve the desire objective. The study was of the qualitative aspect not the quantitative. All the data was collected through interviews a secondary data so not tool were used

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DATA COLLECTION AND EXPLANATION

EXPORT AND IMPORT DOCUMENTATION AND PROCEDURE PRE-EXPORT/IMPORT ACTIVITIES

The planned group work for export order processing can greatly facilitate subsequent operations and avoid the hassles associated with the process. The pre-export activities can be divided into the following sets of activities: A. Study Of Government Rules And Regulations B. Identifying Various Parties And Liasion C. Registration D. Obtaining I/E Code Number.

A) Study Of Govt. Rules And Regulations

International trade is governed by a plethora of rules and regulations of various government bodies of exporter and importer. A careful study of these as a pre-requisite of exports while the rules governing exports will vary with commodity and importer countrys regulation, as a broad frame work the most important Acts/Publications which must be consulted by an exporter in connection with processing of an export order are : a) b) c) Foreign trade(development and regulation) act, 1992 Customs act,1962 Carriage of goods by sea act, 1924

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d) e)

Foreign exchange regulations act, 1973 (now being replaced by FEMA and Money Laundering Bills) Schedule of charges of goods in respect of the port of shipment

B) Identifying Parties And Liasioning With Them

Exports involve coordinated effects of a large numbers of interdependent organizations. The main parties which are involved in export process are : The Exporter The Foreign Buyer The Negotiation Bank The Reserve Bank of India Director General of Foreign Trade The Collector of Customs The Port Commissioner Clearing & Forwarding Agents.

Besides these, other parties may also be associated depending on the nature of commodity and rules guiding the export of the same. Examples of these bodies can be Inspection Agencies, Export Promotion Council, Concor, Ministry of Agriculture etc.

C) Registration
For stepping in the field of an export business, it is compulsory for a company to get registered with Export Promotion Council related to the main product line with which they are dealing.

PROMOTION COUNCIL FUNCTION OF EXPORT: The main function of EPC is to promote and develop the export of the related product line for enhancing the export. They organize Trade Fairs with in India and Abroad. They

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encourage the members registered with them to participate in Trade Fairs and advertise their products in whole world. The main role of the EPC is to Project Indias image abroad as a reliable supplier of high quality goods. The EPC keeps abreast of the trends and opportunities in the foreign markets and circulate important information among its members.

APPLICATION & DOCUMENTS REQUIRED FOR REGISTRATION: Application form cum Membership form worth Rs.10 A copy of PAN No. issued by income tax authorities duly Import Export Code Number Sales Tax Copy Bank draft

D) Importer/Exporter Code Number

Every person / firm / company engaged in export business in India is required to obtain ImportExport Code(IEC) No. from the Regional Licensing Authority concerned (Director General of Foreign Trade). Custom authorities shall not allow clearance of goods to an importer or exporter who does not posses IEC No. It is compulsory quote this Code Number in the relevant Bill of Entry / Shipping Bill.

Applications and supporting Documents Required to Get IEC Number: Application form Commercial Bank Account Number(Current or Cash-Credit Account) Demand draft for payment of Rs.1000 Certificate from the banker of the applicant in the format given in the application form. Two copies of passport size photograph of applicant duly attested by the banker of applicant. Permanent Account No (PAN).

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PROCEDURE FOR EXPORT OF GOODS

1. Receipt of an order 2. Obtaining License and Quota 3. Letter of Credit 4. Fixing exchange rate 5. Foreign exchange formalities 6. Preparation for executing the order 7. Formalities done by forwarding agent 8. Bill of lading 9. Shipment advice to importer 10. Presentation of document to bank 11. Realization of export proceeds 12. Follow up

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Step 1. Receipt of an order The exporter has to get himself registered with various authorities like RBI, income tax authorities, etc. In addition, he has to appoint agents or distributors for collection of orders from foreign countries. Exporter receives an order from importer directly or through Indent House.

Step 2. Obtaining License and Quota After obtaining order, exporter has to secure export license from the government. For this, he has to apply to the Export Trade Control Authority and obtain the valid license. Quota is the total quantity of goods that is permitted for exports.

Step 3. Letter of Credit Exporter demands letter of credit from importer or sometimes importer may send it himself along with the order.

Sample document LC:

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THE MOON BANK INTERNATIONAL OPERATIONS 5 MOONLIGHT BLVD., EXPORT-CITY AND POSTAL CODE EXPORT-COUNTRY

OUR ADVICE NO. MB-5432

ISSUING BANK REF. NO. & DATE SBRE-777 January 26, 2012

TO

UVW Exports 88 Prosperity Street East, Suite 707 Export-City and Postal Code

Dear Sirs: We have been requested by The Sun Bank, Sunlight City, Import-Country irrevocable documentary credit number

to advise that they have opened with us their

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SB-87654 for account of DEF Imports, 7 Sunshine Street, Sunlight City, Import-Country not exceeding Twenty Five Thousand U.S. Dollars

in your favor for the amount of (US$25,000.00)

available by your draft(s) drawn on at invoice value

us sight for full

accompanied by the following documents: 1. Signed commercial invoice in five (5) copies indicating the buyer's Purchase Order No. DEF-101 dated January 10, 2001. 2. Packing list in five (5) copies. 3. Full set 3/3 clean on board ocean bill of lading, plus two (2) non-negotiable copies, issued to order of The Sun Bank, Sunlight City, Import-Country, notify the above accountee, marked "freight Prepaid", dated latest March 19, 2001, and showing documentary credit number. 4. Insurance policy in duplicate for 110% CIF value covering Institute Cargo Clauses (A), Institute War and Strike Clauses, evidencing that claims are payable in ImportCountry.

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Covering:

100 Sets 'ABC' Brand Pneumatic Tools, 1/2" drive, complete with hose and quick couplings, CIF Sunny Port

Shipment from Partial shipment Transshipment

Moonbeam Port, Export-Country Prohibited Permitted

to

Sunny Port, Import-Country

Special conditions: 1. All documents indicating the Import License No. IP/123456 dated January 18, 2012. 2. All charges outside the Import-Country are on beneficiary's account.

Documents must be presented for payment within shipment. Draft(s) drawn under this credit must be marked

15

days after the date of

Drawn under documentary credit No. SB-87654 of The Sun Bank, Sunlight City, Import-Country, dated January 26, 2001 We confirm this credit and hereby undertake that all drafts drawn under and in conformity with the terms of this credit will be duly honored upon delivery of documents as specified, if presented at this office on or before March 26, 2001

Very truly yours,

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Authorized Signature

Unless otherwise expressly stated, this Credit is subject to the Uniform Customs and Practice for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 500.

Step 4. Fixing exchange rate Exchange rate means the rate at which the currency of one country is exchanged for the currency of another country. It fluctuates from time to time. Hence the exporter and importer fix the exchange rate mutually. Step 5. Foreign exchange formalities Here the exporter has to undergo certain foreign exchange formalities as laid down under exchange control regulations. According to FERA (Foreign Exchange Regulation Act of India) every exporter has to furnish a declaration in the form prescribed for this purpose. The declaration states:1. Foreign exchange earned by way of exports will be disposed in the manner and within the period specified by RBI. 2. Negotiations of shipping documents will be through authorised dealers in foreign exchange. 3. The payment for goods exported will be collected only through approved method.

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Step 6. Preparation for executing the order The exporter makes necessary arrangements for executing the order. In this respect he performs the following activities:1. Packing and marking of the goods as per the specifications of the importer. 2. Arranging the pre-shipment inspection by the Export Inspection Agency and getting the inspection certificate from it. 3. Securing insurance policy from the Export Credit Guarantee Corporation (ECGC) to get protection against the credit risks. 4. Obtaining a suitable marine insurance policy, consular invoice and certificate of origin, if required.

5. Appointing a forwarding agent for handling the customs and forwarding activities.

Step 7. Formalities done by forwarding agent The Forwarding Agent completes the following formalities :1. He obtains the Customs' Permit from the Customs Department for exporting goods. 2. The Forwarding Agent discloses the details of the goods such as their nature, size, quantity, weight, etc. to the shipping company. 3. The Forwarding Agent prepares a Shipping Bill. 4. The Forwarding Agent prepares two copies of the dock challans and pays the dock dues. 5. The Captain of the ship gets the goods loaded on the ship on the basis of the Shipping Order in the presence of customer officers.

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6. When the goods are loaded on the ship, the Mate (Vice Captain or the Captain) issues a receipt, called Mate's or Captain's Receipt.

Step 8. Bill of Lading The exporter approaches the shipping company, presents the Mate's Receipt and in exchange receives a document called Bill of Lading. It is an official receipt given by the shipping company as an acknowledgement of the receipt of goods to be transported to the port of destination. It is also a contract for the carriage of goods. It gives full description of goods loaded on the ship, name of the port of destination, etc.

Step 9. Shipment advice to importer The exporter sends Shipment Advice to the importer informing him about the dispatch of the goods. He sends a copy of packing list, commercial invoice and a non-negotiable copy of the Bill of Lading, along with the Advice Note.

Step 10. Presentation of documents to the bank The exporter confirms that he has secured a complete set of the shipping documents namely, the Bill of Lading, Marine Insurance Policy, Certificate of Origin, the Consular Invoice and the Commercial Invoice. He then draws a Bill of Exchange on the basis of the commercial invoice. The Bill of Exchange accompanied by these documents is called Documentary Bill of Exchange. Such a bill may be a D/P (Documents against payment) bill or D/A (Documents against Acceptance) bill. The exporter hands over the documentary bill to his bank.

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Step 11. Realization of export proceeds For realisation of export proceeds, the exporter has to undergo certain banking formalities. Generally he receives payment in foreign currency by bill of exchange or by bank draft.

Step 12. Follow up After the sales, exporter should always have a follow-up, to find out buyer's reactions towards the goods. Such follow up builds goodwill and the exporter can get more and more orders in future.

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FIGURE NO. 1 EXPORT PROCEDURE

Documents required for customs clearance:

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1) Shipping Bill: Shipping bill is the main document required by customs authority for allowing shipment. The exporter (LUCKY EXPORT) has to submit some documents for shipping bill which are as follows: SDF (GR Form) in duplicate for shipment. Four copies of packing list giving contents, quantity gross and net weight of each package Four copies of invoice indicating all relevant particulars such as number of packages, quantity, unit rate, total FOB/CIF value, correct and full description of goods etc Purchase Order, Letter of Credit Inspection certificate

Each shipping bill set consist of following copiesi) Original Retained by customs Exporters certificate Drawback copy/DEEC copy to excise department Export Promotion Copy

ii) Duplicate iii) Triplicate iv) Quadruplicate v) Quintuplicate vi) Sixtuplicate -

Exchange Control Copy

* Exchange control copy is also called GR Form/SDF Form.

2) GR/SDF Form: is filled and GR/SDF form submitted by the exporter. The exporter

give this form to his shipping agent to get it stamped from the customs office after clearance of goods from custom. GR/SDF form is prepared in duplicate. The original copy

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remains with authorities and they submit it to the Reserve Bank of India. Duplicate copy is submitted to Negotiating Bank, after mentioning the date of receipt of payment on GR/SDF form they also send it to RBI.

Contents of GR Form:
i) Name of advising bank (if exports is under L/C arrangement)

ii) Name of bank through which payment is to be realized. iii) Customs assessable value. iv) Quantity of goods.

3) Bill of Lading: The bill of lading is a document issued by the shipping company or its agent
acknowledging the receipts of the goods mentioned in the bill for shipment on board and undertaking to deliver the goods in who like order and condition as received to the consignee or his order provided the freight and other charges specified in the bill of lading require will depend upon the terms of better of credit.

IMPORT DOCUMENTATION

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1. Obtaining import license and quota 2. Obtaining foreign exchange 3. Placing an order 4. Dispatching letter of credit 5. Appointing clearing and forwarding agents 6. Receipt of shipment device 7. Receipts of documents 8. Bill of entry 9. Delivery order 10. Clearing of goods 11. Payment to clearing and forwarding agent 12. Payment to exporter 13. Follow up

Step 1. Obtaining import license and quota In all countries there are many government regulations to be followed. Sanction of government is necessary. Importer has to apply to the controller of imports for getting necessary permission.
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Importer has to attach the following documents to his application form :1. Receipt which shows that import license fee has been paid. 2. Certificate from a Chartered Accountant showing the total value of goods to be imported. 3. Verification Certificate for income tax. An import license may be general or specific. A general license allows imports from any country. But specific license allows imports from specific country only. The importer also has to obtain import quota certificate from the concerned authority. It mentions the maximum quantity of goods which can be imported.

Step 2. Obtaining foreign exchange Before placing any order, the importer must apply to the Exchange Control Department (ECD) of RBI (India's Central Bank) for the release of requisite foreign exchange. The importer should forward the application through his bank. The ECD verifies the application of the importer, and if found valid, sanctions the foreign exchange for the particular transaction.

Step 3. Placing an order The importer may either place the order directly or through the indent house (Agent). In case of canalized items, he obtains the imports through the canalizing agency. (Canalisation means channelisation of goods through a government agency like MMTC). The importer cannot directly import such canalized items. They have to place an order with the canalizing agency who shall import and supply the same.
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Step 4. Dispatching letter of credit After getting the confirmation from the supplier regarding the supply of goods, the importer requests his bank to issue a Letter of credit in favour of supplier. It can be defied as "an undertaking by importer's bank stating that payment will be made to the exporter if the required documents are presented to the bank".

Step 5. Appointing clearing and forwarding agents The importer makes arrangement to appoint clearing and forwarding agents to clear the goods from the customs. Since clearing of goods is a specialized job, it is better to appoint C & F agents.

Step 6. Receipt of shipment device The importer receives the shipment advice from the exporter. The shipment advice states the date on which the goods are loaded on the ship. The shipment advice helps the importer to make arrangement for clearance of goods.

Step 7. Receipts of documents The importer's bank receives the documents from the exporter's bank. The documents include bill of exchange, a copy of bill of lading, certificate of origin, commercial invoice, consular invoice, packing list, and other relevant documents. The importer makes payment to the bank (if not paid earlier) and collects the documents.

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Step 8. Bill of entry This is a document required in case of import of goods. It is like shipping bill in case of exports. A Bill of Entry is the document testifying the fact that goods of the stated value and description in specified quantity are entering into the country from abroad. The customs office supplies this form which is prepared in triplicate. Three different colours are used to prepare bill of entry.One copy is retained by custom department, other is retained by port trust and the third is kept by the importer.

Step 9. Delivary order The clearing agents obtains the delivery order from the office of the shipping company. The shipping company gives the delivery order only after payment of freight, if any.

Step 10. Clearing of goods The clearing agent pays the necessary dock or port trust dues and obtains the port Trust Receipt in two copies. He then approaches the Customs House and presents one copy of Port Trust Receipt, and two copies of Bill of. Entry to the customs authorities. The customs officer endorses the Bill of Entry Forms and one copy of Bill of Entry is handed back to the importer. The importer then pays the customs duty and clears the goods. In case, the customs duty is not paid, then the goods are stored in the bonded warehouses. As and when the duty is paid, the goods are cleared from the docks.

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Step 11. Payment to clearing and forwarding agent The importer then makes the necessary payment to the clearing agent for his various expenses and fees. Step 12. Payment to exporter The importer has to make payment to exporter. Usually, the exporter draws a bill of exchange. The importer has to accept the bill and make payment.

Step 13. Follow up The importer then informs the exporter about the receipt of goods. If there are any discrepancies or damages to the goods, he should inform the exporter.

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FIGURE NO. 2 IMPORT PROCEDURE

DOCUMENT CONNECTED WITH TRANSPORTATION OF GOODS

Air Way Bill (AWB) Air consignment Note.

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The receipt issued by an airline or its agent for the carriage of goods is called airway bill or air consignment note. It is issued in terms and conditions of the contract of carriage of goods. It is not a document of title and it is not issued in a negotiable form.

Generally AWB is issued in three copies, viz; for the carrier, for the consignee and for the consignor.

Postal Parcel Receipt (PPR).

Like the AWB, the PPR evidence merely the receipt of the goods to be exported to the buyer and is not a document of title.

Bill of Lading (B/L).

A Bill of Lading is the most important document in Foreign Trade. It is generally issued by a shipping company. It services as a receipt from the shipping company who undertakes to deliver the goods at agreed destination on payment of freight in a prearranged manner and also a document of title to the goods. B/L is generally made out in the sets of two or three originals. All the originals are duly signed by the master of ship or the agent of the steamship company and all the originals are equally valid for taking the delivery of goods and once one original copy is utilized the other originals become full and void.

B/L is nor a negotiable instrument in terms of Negotiable instrument Act, However, it is a practice to call the original copies as negotiable copies.

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Ocean (Marine) Bills of Lading The bill of lading (in ocean transport), waybill or consignment note (in air, road, rail or sea transport), and receipt (in postal or courier delivery) are collectively known as the transport documents. Please see the sample Ocean Bill of Lading below. The bill of lading (B/L) serves as a receipt for goods, an evidence of the contract of carriage, and a document of title to the goods. The carrier issues the B/L according to the information in a dock receipt, or in some cases according to a completed working copy of the B/L supplied by the customs broker. The B/L must indicate that the goods have been loaded on board or shipped on a named vessel, and it must be signed or authenticated by the carrier or the master, or the agent on behalf of the carrier or the master. The signature or authentication must be identified as carrier or master, and in the case of agent signing or authenticating, the name and capacity of the carrier or the master on whose behalf such agent signs or authenticates must be indicated. Unless otherwise stipulated in the letter of credit (L/C), a bill of lading containing an indication that it is subject to a charter party and/or that the vessel is propelled by sail only is not acceptable.

Sample Document: Ocean Bill of Lading

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Different Types of Ships:1. 2. 3. 4. 5. 6. Container ships Roll-on/roll-off ships Break-bulk ships Crude carries Dry-bulk carriers Gas carriers

Container Ship:-

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Container ship is also known as a BOX SHIP Container ships cater to only containerized cargo and generally have cranes on board. They can store up to 4 tiers of containers below the main deck and up to 3 tiers above deck.

Roll on / Roll - off Ships:-

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Roll-on/roll-of ships were created to accommodate cargo that was self propelled, such as automobiles or trucks, or cargo that could be wheeled into a ship, such as railroad cars. They are essentially floating garages. It takes long time to load such vehicles over the rail it is preferable to load them by rolling them onto the ship. Roll-on/Roll-of ships therefore have a portion of their hull that opens up and acts as a ramp on which the vehicles are driven before being parked on the many decks of the ship and secured with chains. The hull opening is either on the side of the ship or on its stern (rear).This ship have an advantage in that specialized lifting equipment is not required, even for the heaviest of loads, since the cargo rolls under its own power or pulled by a tractor.

Break-Bulk Ships:

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Break-bulk cargo ships are multipurpose ships that can transport shipments of unusual sizes, unitized on pallets, in bags, or in crates. Due to increasing role of RORO (Roll-on/Roll-off) ships, container ships, breakbulk ships share of international trade is decreasing. The advantage of break-bulk ships is that they can call at just about any port to pick up different kinds of cargo loads, giving them a flexibility that container ships do not yet have. The main problem with a break-bulk ship stems from its labor-intensive loading and unloading because each unit of cargo handles separately.

Crude Carriers:-

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 Crude carriers are the bulk ships dedicated to the transport of petroleum products, whether unrefined or refined, such as gasoline or diesel fuel. The crude carriers are also known as VLCC (Very Large Crude Carriers) and ULCC (Ultra Large Crude Carriers). VLCCs and ULCCs are such large ships that they can call on only a few ports in the world; since their draft, when loaded, can reach 35 meters(115 feet) they need very deep ports for berthing.

Dry-Bulk Carriers:

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 Dry-bulk carriers operate on the same basis as oil tankers in that they are chartered for a whole voyage. Dry-bulk ships have several holds in their hull, in which non-unitized cargo is placed. Dry bulk ships carry agricultural products, such as cereals, as well as coal, ores, scrap iron, dry chemicals, and other bulk commodities. Dry-bulk ships are generally small enough to fit through the PANAMA CANAL.

Gas Carriers:

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 Another important bulk trade is the transportation of Liquefied Natural Gas (LNG) and of Liquefied Petroleum Gas (LPG). These types of carriers have a very distinctive shape. These ships hold several spheres of compressed gasses, only part of which are visible above their main deck. The LNG and LPG trades tend to be slightly different than the average bulk transport, as they are used in a particular trade for long periods of time, on long-term contractscalled time charter parties and therefore nearly have a sailing schedule, not unlike liner ships.

MODES OF PAYMENT

Managerial functions tend to become more and more complicated as the operations of a company cross the boundaries of the nation in which it is operating. Exports finance is no exception to this generalization. The risk dimension accentuates significantly as soon as the goods are sold to a buyer outside the country. Some of the risk factors are inadequate personal knowledge about the foreign buyers, possible restrictions on transfer of funds from importers country, fluctuations in rates of exchange, obstacles to payments for reasons such as wars, political disturbances payment delays and a lot of other socio political factors. It may be appreciated that these risk factors originate out of one common reason i.e. the business operations are done in different of business environment. The final indicator of success any business is its financial viability and in exports the inflow of funds is from across the borders. So, an export transaction is deemed to be complete only after the final payment has been received. The payment is influenced by several factors such as government rules and practices, bankers, Om Policies, importers financial position and the prevailing trade practices in the industry. The payment can influence other factors of marketing mix, price being the most

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significantly affected. The exports managers must take the following factors into account while evolving their payment policies. a) The institutional aspect the operations of the mechanism and credit facibilities. b) Foreign exchange and its relation to export terms and receipt of the export proceeds. c) The methods of receiving payments. d) Other factors. i) Exporters knowledge of the buyer. ii) Buyers financial position. iii) Security of payment and risk factors. iv) Time taken for payment Methods of Payment in Exports

Due to the significance of risks in exports payments, the methods of payment can be classified into following categories depending upon the risks associated: Payment in Advance. Open Account. Documentary Bills. Shipment on Consignment Basis. Documentary Credit under Letter of Credit.

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COST FACTOR OF EXPORT-IMPORT GOODS FIGURE

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FIGURE NO. 3 COST FACTOR OF EXPORT- IMPORT GOODS

COST FACTORS OF EXPORT-IMPORT GOODS

Materials, labor and overhead Custom packagings Inspection fees Licensing fees Royalties

Buying agent's commissions Trader's markups

Bank charges and commissions Overseas agent's commissions Freight forwarder's charges Documentation charges Insurance premiums

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Export license fees Certification fees Consular fees Advertising

Road freight (cartage, drayage) and/or rail freight Routing costs (canal and inland waterway links) Uninsured damages Theft and pilferages Handling charges Demurrage

Brokerage fees Export levies

Insurance premiums Air freight

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Theft and pilferages Overtime charges Handling charges Warehousing Loading fees Demurrage Wharfage

Insurance premiums Ocean freight Lighterage

Uninsured damages (e.g. war and acts of God) Pilferages

10

Lighter age

11

Theft and pilferages

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Quarantine charges Overtime charges Handling charges Unloading fees Warehousing Demurrage Wharf age

12

Import duties and taxes Bank charges and commissions Import license fees Brokerage fees

13

Road freight (cartage, drayage) and/or rail freight Routing costs (canal and inland waterway links) Theft and pilferages Uninsured damages

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Handling charges Demurrage

14

Warehousing Interest charges Advertising

LIMITATIONS

Partial information of negotiable documents because of securities reasons. Export Rules, Regulations & Compliances are too wide to cover thoroughly in short term project. Primary data is analyzed though interview of executives and they may not be available and may not be part of research. Less sufficient response of executives & supervisors in respect to information related to securities & weakness matter of unit.

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RECOMMENDATIONS

From the Internship I found some new techniques that are applicable for better Improvements.

1. Company should establish back office for internal support. 2. Company should start some sales promotional activity for better attraction in customers memory. 3. Company should focus on the transportation services. 4. Company should increase marketing executive team. 5. To concentrate on advertisement. 6. Above can be done by expanding its expertise network, also by improving quality of services at a competitive price. 7. Last but not least impact should focus on slowly to big customers so that it can expand the size of business and can create Brand name in market for itself
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CONCLUSIONS
In a laymans term export is what goes out and Import is what comes in but the actual procedure is not so simple as it sounds. There is terms and liabilities to each export and importer which they have to fulfill to successfully carry out the import export procedure. The documentation of import and export is the most complex part. It starts from agreeing on terms and condition for export and import then dispatching and receiving and clearing of goods and services. It is time consuming and requires expertise and precision. A very minute mistake may cause a great amount of loss/damage to the importer/exporter. For me import and export is not only transaction of goods and services it is also the transaction of culture, lifestyle because when we consume goods and use a foreign technology it does changes our lifestyle and make an influence on our culture.

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Bibilograph

Book reference
o paul Justin and asekar rajiv by Export import management o Francis Cherunilam by International Trade and Export Management o Dr.khushpat and Jain.s by Export Import Procedures and Documentation

o Dr.Varma.M.M. & Aggarwal R.K by Foreign Trade Management

Internet websites
o www.transformerindia.com o www.export911.com o www.cbec.gov.in o www.allbusiness.com

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