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SUMMER INTERNSHIP REPORT

AT
DYNAMIC LOGISTICS PVT. LTD.

IN THE PARTIAL FULFILLMENT OF POST GRADUATE


DIPLOMA IN INTERNATIONAL TRADE (2009 11)

SUBMITTED BY:
PRAVIN RAJPUT
ROLL NO: 34

INSTITUTE OF MANAGEMENT DEVELOPMENT AND


RESEARCH
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INDEX

SR.NO

PARTICULERS

PAGE NO.

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

INTERNSHIP OBJECTIVE

COMPANY PROFILE

PROGRAMME DETAILS

5-8

WHAT IS ICD

GENERAL EXPORT PROCEDURE

10

BASIC INFORMATION OF EXPORTS

20

EXPORT DOCUMENTS

25

10

GENERAL IMPORT PROCEDURE

31

11

IMPORT DOCUMENTS

33

12

IMPORT DUTIES

34

13

IMPORT DOCUMENTS

36

14

MY OBSERVATIONS AND LEARNINS AT ICD DIGHI

38

15

CONCLUSION

39

16

BIBLIOGRAPHY

40

ACKNOWLEDGEMENT
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I take this opportunity to express my gratitude towards Mr. Ahmed Raza and Mr.
Santosh Giri for not only giving me a chance to work as an internee in Dynamic
Logistic Private Limited, Pune but also giving me the considerable value addition in
my knowledge related to the international trade and for all the kind help and cooperation extended to me in the completion of the summer training.
I also want to thank all the employees of Dynamic Logistic Private Limited for guiding
me and providing a professional conducive environment to work in, especially my
mentor Mr.Sandeep Mhaske
I am also thankful to our honourable Director Mr. Ajay Nagre and placement co-ordinator Mrs.
Vipra Tiwari, who gave us the opportunity to experience the ground level realities of
international trade.

PRAVIN RAJPUT

EXECUTIVE SUMMARY

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Post Graduation Diploma In International Trade (PGDIT) at IMDR,Pune is designed in such a


way that we the students are supposed to undergo two internships in the industry, one of them
is the summer internship, which is supposed to be done with a service provider in the field of
international trade, and the other one is winter internship to be done with a manufacturer
involved in international trade. This summer internship was the first experience about the
understanding of international trade. It helped me to experience my perceptions about
international trade and the ground realities. This summer internship helped me to interlink my
theoretical knowledge with the practical one during the Summer Internship.
I took training in Dynamic Logistics Pvt. Ltd, Pune as a part of Summer Internship. Dynamic
Logistics Pvt. Ltd, Pune is an Inland Container Depot where there are various customs house
agent and freight forwarders office located to take care of their business at ICD as it is a
customs bounded area . There I was exposed to various documents related to imports and
exports. I worked with mainly CR Dynamic Logistics Pvt Ltd, Customs House Agents and
Freight Forwarders. This has helped me to know the flow of the documents right from their
preparation to their end destination. I also worked at ICD, Dighi Dynamic Logistics staff and
also learned the operations of Inland Container Depot and the documentation from Dynamic
Logistics Pvt Ltd

perspective ,ICD as well, where I could practically see the

operations/functions carried out by different entities. I saw various procedure carried out by the
CHA, Customs Officer such as Custom Examination , Documentation of CHA,CLP, Stuffing,
De-stuffing, OD Cargo handling ,etc.
After the internship I have learned that each entities involved in International Trade has distinct
role to play. This entities includes Importer , Exporter ,CHA, Shipping Agent, Shipping
Company, Customs ,etc
Thus working in an Inland Container Depot gave me a huge exposure in knowing the entire
gamut of operations involved in export and import of goods.

INTERNSHIP OBJECTIVE

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The main objective of the summer internship was to get thorough knowledge of Export and
Import procedures and different types of documents involved in Exports and Imports along with
flow of the documents right from start to the end. The objective of internship was also intended
to know how custom clearance takes place and to get acquainted with the working environment
of the organization. This objectives helped us to interlinked our theoretical knowledge with
practical events occurring in organization
Personal Objective of the Internship were as follows

To have a feel of professional life


To experience the organizational way of working.
To learn every aspect and working with CHA/FF.
To understand how an organization functions and to understand the roles of the

employees
To observe the problems, its causes, analyze it and form my own view.
Attempt to convert theoretical knowledge into practical.
To understand roles of each player which are involved in International trade
transactions.

COMPANY PROFILE

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ICD DIGHI is a part of Dynamic Logistics Pvt Ltd a Pune based Talera group company, it
provides logistics services to various companies in Pune, Chennai, Pithampur and Aurangabad
.Dynamic Logistics a pioneer in logistics industry in India for the past 17 years, it is an ISO
9000:2001 certified unit and provides cost effective logistics solutions .

ICD - DIGHI has a full-fledged Customs Offices headed by Dy. Commissioner of


Customs for hassle free documentation pertaining to Ex-im custom clearance.

Fully registered as a Dry Port for custom clearance under all Export / Import Schemes
like DEPB / DEEC / DFRC etc.

Under one roof, under one commisionerate, we can move FCL Ex-im containers / LCL
Exports / Imports & Air Exports / Imports to JNPT / NSICT / MbPT / SACC Mumbai /
Lohegaon Airport Pune.

The only ICD to offer the Trade Fraternity the opportunity to choose their own
transporter for Ex-im movements & also negotiate the rates & terms.

Exporters can get their B/L / AWBL in Pune itself. The export container goes directly to
vessel side for loading in JNPT / NSICT / MbPT.

For Air Exports no N Form Formalities at Mumbai; save on cost & time!

We bring back Transference Copies for all our Air Exports.

For Exporters no Buffer Yard charges of Rs. 1600/- per TEU at Gateway Port. For
Importers bonding cargo, 50% reduction in warehousing cost compared to Gateway
Ports. Overall reduction in total transaction cost (TTC) assured.

Modern computerized environs & fully mechanized handling of Ex-im cargo. Also the
only ICD on the Western Board to have an X Ray Machine in place for Customs
inspection

Freight Forwarders / NVOCC / CHA / IATA / Surveyor / Transport Offices all under one
roof for your ease. We cater to clients from as far as Hyderabad & Bangalore

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COMPANY VISION
To be the preferred business partner to organisations striving for dramatic improvements in
performance.

COMPANY MISSION
To enable our clients to significantly improve their performance capability and to be proactive
by managing change; providing them with world-class, cost effective and highly efficient,
enabled logistic services.
SERVICES INCLUDES
o
o
o
o
o
o
o
o
o
o
o
o
o

Import Warehouse
Bonded Warehouse
Export Warehouse
Open Bonded Area
Container Fumigation services
Reefer Points
50 T weigh bridge
Container Yard - 300 TEU ground slots
PCMC Octroi Post
Full-fledged Customs office
Shipping line-CHA-Freight forwarders offices
Bank of Maharashtra for payment of Customs duty
Communication center - fax/phone/photo copy facility

Separate insurance cover for transit. Very low tariff for empty container has improved local
availability of containers and reduces time lag for exporters. Government Licensed Surveyors
for Container inspection and cargo claims operating at ICD-Dighi, Pune

SERVICES OFFERED
Supply chain management

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Inbound and outbound logistics

Just in time system

Milk route planning and implementation

Warehouse management

Reverse Logistics

Contract Warehousing

Nationwide Transportation

INFORMATION TECHNOLOGY

Warehouse management software

Transport management software

Container freight station software

Customized software development

Bar coding solutions

Execution of turnkey projects

Major CHAs bringing business to Dynamic Logistics Pvt Ltd

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Best Agency

Samson Freight

Velgiddosabhai

Cross Freight Pvt Ltd

Jeena & Company

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PROGRAM DETAILS
Training Schedule
I joined Dynamic Logistics Pvt. Ltd. On 10 st March 2010. I did my training for 4 weeks. The
break-up of which is as follows:
1st Week

- Export Warehouse Operations of ICD Dighi, Export Procedures theory and

documentation at ICD
2nd Week

-Import warehouse Operations of ICD Dighi, Import Procedures theory and

documentation at ICD
3rd

-CHA Documentation for both Export and Import

4th Week

-Observations and report

WHAT IS INLAND CONTAINER DEPOT ?


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The present trend in the international trade is containerization of cargo. The full benefits of
containerization can be derived only when the containers are, permitted to be moved to points
in close proximity to important industrial station so that the importers can get clearance of the
imported goods at the nearest point to their factory/premise. The facility is helpful to the
exporters as they can export the goods from the nearest point of their factory/premise in order
to provide this facility some statutory conditions are to be fulfilled and necessary infrastructure
provided.
To start with, the Government of India issued a notification under Section 7 of the Customs Act
1962 appointing a suitable place as inland container Depot for the unloading of the import
goods and the loading of export goods or any class of such goods. After issue of such
notification, the Commissioner of Customs having jurisdiction over that place issues a
notification under Section 8 of the Customs Act, 1962 approving proper places in the ICD for
the loading and unloading of the goods and also specify the limits of Customs area and post
Customs Officers and staff to attend to work.

EXPORT
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GENERAL EXPORT PROCEDURE


A person who sends goods out of country is an exporter and a person who receives goods is
an importer.
Once there is an export contract between the exporter and importer the exporter makes an
invoice according to the purchase order, then the packing list is made and the excise invoice is
generated.
Now, Excise Department is keeping watch on each and every moved in and out of the factory.
If the manufacturer wants to move the good out of the factory he has to pay the excise duty. If
the manufacturer wants to sell goods out of the country i.e export the goods there is temporary
relaxation given by the excise on provisional basis but there is an obligation on part of the
exporter that he has to submit the proof of export to the excise department.
Now if we dont want to pay the excise duty then we file for ARE form. ARE Form is a Central
Excise form required in case, when goods which are removed from manufacturing unit, are
subject to the Central Excise. This form is an application for removal of excisable goods for
export purpose claiming rebate on duty
In ARE we can move cargo out of the country without paying excise duty on provisional basis
and within stipulated time we have to submit the proof of export to the Excise Department to
get permanent relaxation.
SHIPPING BILL /NOTING NO.
The CHA gets the noting number from ICEGATE. The noting number is generated when the
CHA takes all the documents to the customs.
Once we get the noting number we get the checklist from the customs.
Noting Number later on becomes your Shipping Bill Number.
Now CHA and Shipping agent are appointed by the exporter. The CHA will move cargo from
factory premises to ICD/CFS . The exporter has to send documents to the CHA to get the
carting order.

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CARTING ORDER
CHA applies for carting order. Carting Order is the order issued by the customs to move the
goods from the factory premises to ICD/CFS. The Permission given to move the cargo into the
ICD Customs area is called as carting order and the approval from the gate to the defined
place of ICD /CFS is called as the carting process.
ASSESSMENT
After unloading the cargo at ICD ,the CHA goes to the concerned office of customs where there
is assessment done by the customs authorities. Assessment is the checking of details in the
shipping bill with respect to invoice and packing list. PMV (Present Market Value) of the goods
is checked by the customs authorities.
If the value of the cargo/consignment is
-Less than Rs.10 lakh Assessment is done by Appraising Officer
-More than Rs.10 lakh Assessment is done by Superintendent Officer
Once the assessment is done there is a physical examination done by the customs official of
the goods that is to be exported.
EXAMINATION
Examination of the cargo is the process in which the examiner (Custom Officer) checks the
authenticity of the cargo. He check whether the Quantity, Description of the goods (whether
restricted or prohibited) ,Weight of the cargo, etc. Then the examiner writes his report on the
back of EP Copy of the Shipping Bill. In case of doubtful cargo examiner goes for 100%
examination. Generally examiner goes for random check. Then this report is sent to AC/DC for
issue of LEO.

LEO
LEO is Let Export Order which is the stamp given by the customs on all 6 copies of the
shipping bill.
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CLP AND STUFFING


Container Load Plan is the plan prepared by the Shipping Agent to club the cargo into the
container. Size, Dimensions, weight, etc is taken into consideration. A good CLP helps to
prevent the cargo from damages during the transit of the vessel. Stuffing is nothing but loading
of the cargo into the container. After stuffing Custom Officer puts the seal on the container and
now the container is ready to move out from the ICD/CFS towards the port of loading. After
loading container on the vessel the Captain of the ship issues rough receipt known as Mates
Receipt on the basis of which Bill of Lading is issued.

BILL OF LADING
Bill of Lading is a document issued by the shipping company or its agent, acknowledging the
receipt of goods mentioned in the bill for the shipment on board the vessel and undertaking to
deliver the goods, in the like order and condition as received to the consignee or his order,
provided the freight and other charges specified in the bill of Lading have been duly paid.
After 24 hours after the movement of ship an EGM (export general manifest) is generated by
shipping company.

EXPORT PROCEDURE FOLLOWED AT ICD DIGHI

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ROUND TRIP FACTORY STUFFING


1) Empty Container is bought from S/L Yard and Goes to Exporter's factory Premise
for stuffing.
2)

Exporters factory stuffing of cargo in containers and completion of Excise formalities

3) Stuffed container comes back to ICD where documentation and custom formalities
takes place
4) Generation of the loaded gate-pass and departure of container to JNPT
5) Container loaded on ship and exported overseas

FACTORY STUFFING
1) Empty container is sent to the factory of exporter for stuffing
2) Cargo is stuffed in the container in presence of excise authorities
3) Loaded container comes to ICD and customs formalities takes place
4) Generation of loaded container gatepass and departure of shipment towards JNPT
5) Container loaded on ship and exported overseas

ICD STUFFING

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1) Cargo is loaded in trucks and sent to Dynamic logistics Pvt Ltd Dighi
2) The cargo is unloaded here and stacked at the specific location in the export
warehouse
3) Documentation procedure, customs examination of the cargo to be exported takes
place
4) Customs cleared cargo is stuffed and the container is sealed
5) Departure of the container from ICD to JNPT loading on the vessel and departure to
the destination.

THE PROCEDURE WHICH IS FOLLOWED BY CR (CUSTOMS RELATION) DEPARTMENT


FULL CONTAINER LOAD PROCEDURE FOLLOWED AT ICD DIGHI

Request form in filled by CHA


Request Form is the form made by CHA/Client to the ICD-Dighi that such and such
kind of cargo is coming to ICD-Dighi. Please make necessary arrangement for
incoming cargo .It includes Invoice,Packing List ,Description of goods ,Consignee /
consignor ,Port of Destination/Loading,CHA Name and License No., Name of the
transporter , INDEX No. ,etc.

The Customer Relations (CR) officer provides the required services and fills the charge
sheet.

Then the index number is generated which is unique for each customer and is
important for future references.

For the movement of the empty container the CR issues form #2 to the transporter.

The transporter picks up the container of a particular Shipping line and sends it to the
factory of the exporter.

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The container gets stuffed and brought to ICDDighi for the required documentation
and custom procedures

Following documents are generated

If the factory of the exporter lies outside the PCMC area 3 copies of the loaded gate pass are
generated
(i) 1 copy is sent to t chief superintendent of PCMC Octroi post.
(ii) 1 copy is given to the transporter.
(iii) 1 copy is retained with the gate in charge of the ICD
If the factory lies in the PCMC limits, 3 copies of the empty container gate pass along with 3
copies of the loaded gate pass are generated and all of them are distributed to the authorities
as the above. The documents are useful for the fulfillment of the Octroi formalities.

The CHA on then submits the shipping bills to the customs department. Shipping bills
serve as a specification of the goods to be exported

The role of the customs starts from here, so the appraiser scrutinizes the documents
carefully, and if needed he indicates the examiner for the same. Then the process of
assessment and examination takes place.

The duly signed copies of the shipping bills are then given to Dynamic Logistics in a
sealed and stamped envelope which is called as Transference Copies

The ICD in-charge, after receiving commercial invoice, shipping bills and transference
copies generates the following documents

Job order This is given to the exporter / CHA at the time of moving cargo out of the customs
area for export. In short it is the request / gate-pass for the entry of the container into the JNPT
area stating that we have completed the said procedure at ICD-Dighi Custom. 6 copies of the
Job Order are generated1 copy to the customs(ICD PUNE ) , 1 copy to CHA , 1 copy to transporter
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1 copy to the Shipping line,1 copy to the port trust ,1 copy to the own records (DLPL)
Along with 3 copies of outgoing gate-pass
1 copy to ICD-gate , 1 copy for Escort , 1- Transporter
and 1 request form
Debit Memo
It is the account of the Dynamic Logistics Pvt Ltd with the Octroi for receiving the empty or
loaded container/CBT within PCMC requesting to issue escort pass for the said loaded
container/empty container to be sent ut PCMC limits. There are four copies of the debit memo.
It is generally given to the regular importer or exporter.
Yellow Copy ICD gates Copy
White copy Octroi
Red Copy Book Copy
Blue copy-CHA
Escort Pass is the pass in which the account of the ICD is credited.It is document which comes
to the ICD issued by Octroi
IN CASE OF LESS THAN CONTAINER EXPORT

Request form in filled by CHA

Gives to CR dept. Along with Shipping bill ,packing list , invoice

Then the index number is generated which is unique for each customer and is
important for future references.

Also gives gate pass no

Issue gate pass(GP) copy to CHA who forward it to transporter

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Using GP copy transporter releases his vehicle carrying goods from Octroi NAKA

Then shows GP copy at gate & enters vehicle through gate

Security registers truck no & time of arrival on GP copy (also enters in computer) &
forward in to CR

CR enters data on computer and releases unloading note and attach SB copy with it

Forward unloading note to warehouse in-charge

Warehouse dept unloads goods at appropriate place and enters data on system

Now CHA performs his part and got his goods custom cleared and got Let Export
Order from customs and shows it to CR dept.

Now CR dept generates Master index

CR dept issues loading note, notes seal no, gets CBM report

Issues stuffing sheet and have signs of Custom officer, Freight Forwarder, transporter,
warehouse dept.

Issues custom letter signed by customs superintendent (letter showing information of


what is going to be exported)

Issues HUB letter signed by manager Dynamic ICD

Prepares one envelop carrying 1.CBM report original copy 2.Out Of Charge Envelop
3.Orignal copy of Customs letter addressing Customs at part JNPT

Stitch 2 copy of hub letter on it

On the other hand as per request of CHA, CBT is arranged for stuff cargo

Warehouse dept stuffs goods in CBT after getting stuffing note from CR dept also gets
seal no from customs dept.

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After all formalities completes, issues Gate Out Pass (GOP)

Now security at gate checks GOP and allows that CBT to pass through gate.

Here finally CR departments LCL export process completes.

CR DEPARTMENT PROCESS IN CASE OF AIR EXPORT

Request form in filled by CHA for air export

Gives to CR dept. Along with Shipping bill ,packing list , invoice

CR person fills data from above in system

CR releases client index no

Creates gate pass as per CHA request by using ICD system

Issue gate pass (GP) copy to CHA who forward it to transporter

Using GP copy transporter releases his vehicle carrying goods from Octroi NAKA

Then shows GP copy at gate & enters vehicle through gate

Security registers truck no & time of arrival on GP copy (also enters in computer) &
forward in to CR

CR enters data on computer and releases unloading note and attach SB copy with in

Forward unloading note to warehouse in-charge

Warehouse dept unloads goods at appropriate place and enters data on system

After getting shipping bill no. CR dept generates Issue note manually/ through system

On the other hand as per request of CHA, CBT is arranged for stuff cargo

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Warehouse dept stuffs goods in CBT after getting stuffing note from CR dept also gets
seal no from customs dept

After conformation of CBT fax the vehicle information to the OSCAR Freight ( who
works on behalf of Dynamic)

OSCAR Freight proceeds for noting that CBT to get Customs permission to enter in
airport for de-stuff cargo (gets customs pass for CBT)

After all formalities completes, issues Gate Out Pass and generates EGM and Transit
Permit in 6 copies and get it endorsed by the customs and authorized officials of the
Dynamic Logistics

Receive seal cover containing one set of the EGM and Transit Permit along with
Transference copies stuffed into CBT/container from customs to be forwarded to AD of
customs

Now security at gate checks GOP and allows that CBT to pass through gate.

Here the process completes for air export

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BASIC INFORMATION
EXPORTER OR IMPORTER
The term "export" means to sell the goods and services out of the country. The seller of such
goods and services is referred to as an "exporter" who is based in the country of export
whereas the overseas based buyer is referred to as an "importer" who buys the goods .
Types of the Exporter
1) Manufacturer Exporters
2) Merchant Exporters
3) Deemed Exporters
4) Service Exporters
5) Third party Exporters

CUSTOMS
Customs clearance of the goods, is done by the customs Authorities functioning under the
overall change of the Ministry of Finance.
At the apex there is Central Board of Excise & Customs in the Ministry of Finance.
The Board is headed by the Chairman and assisted by members.
Customs perform following roles,

To ensure that whatever items move into or out of the country are in accordance with
the laws of the land, and not, prohibited or banned.

Both in regard to sea cargo as well as air imports, the customs authorize and appoint
custodians and all imported goods unloaded in a customs area remains in their
custody and till these are cleared for home consumption, or are warehoused or
transshipped as provided in the law.

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The items of import & export are properly assessed to duty tax or any other charge
leviable there on.

All the regulatory provision application to items of exports & import are being duly
complied with the exporter & the importer.

The import / export trade statistics are regularly compiled & made available to different
authorities for their guidance & necessary action.

CHA
The imports into India and Export out of India take place only through ports and airports
declared under Section 7 of the Custom Act. The international trade has therefore necessarily
developed and concentrated at such ports and airports like Mumbai, Chennai, Calcutta, Delhi,
Cochin, Kandla, Vishakhapattanam, and Tuticorin. The importers who consume the imported
goods and exporters who produce the goods for export however are spread all over the
country. The distance between the point of import/export and the exporters/importers quite
happens to be long and the time-involved for clearance deters the trade for handling the
clearance themselves. They have necessarily to depend on agents positioning themselves at
such ports and have specialized such jobs. This agents who handles the custom related work
of the importer or exporter is known as CHA (Custom house agent0
CHA is the person who is licensed to act as an agent for transaction of any business relating to
the export and import of goods at any customs station. Customs Station includes Ports, CFS
,ICD. Customs License is allotted by Customs. CHA is hired by Importer or Exporter
A role of CHA starts when an exporter or an importer asks him to work for him. A Custom
House Agent firm prepares Bill of entry or Shipping Bill. As per the requirement of their
customers. For these services the customer provides them with all the required documents
like Invoice, Packing list and other relevant documents. The C.H.A collects these documents
from the customer and according to that they prepare shipping bills or bill of entry. After
preparing the documents some time they collect the goods from the exporter and with the
document they go to ICD or at the PORT of DISCHARGE and get the goods custom cleared. If
an exporter or an importer has some special requirement like if they want there goods to be

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exported under special schemes then they prepares documents according to that and vice
versa for an importer.
They collect services charges, services tax, custom charges and Other charges from the
customer.
Roles of CHA
1) To provide the information about rules and regulations of the customs to the exporter
2) To avail the exporter the best opportunity to move goods away from the country.
3) They act on behalf of the customs
4) CHA files for shipping bill or bill of entry
5) They makes all the payments of the customs on behalf of the exporter or the importer
6) They provide clarification of the product of the importer or exporter to the customs to
the customs
FREIGHT FORWARDER/SHIPPING AGENT
Freight Forwarder/Shipping Agent is a vital part of international trade activity. The company will
face many difficulties if it does not take into account how the goods will be delivered to the
market.
The issue of freight forwarding must be considered at an early stage of the development of the
export marketing plan as it raises several concerns that need to be addressed quickly. Not only
does the exporter need to understand which INCOTERMS to stipulate and work to, but the
method of transport also needs to be considered (see road, rail, sea, air).
Packaging is also another factor that needs to be considered, as is insurance. Much of the
hassle can be taken out of the exporters hands by using an effective freight forwarder. Once
you go for Freight Forwarder you pass on the responsibility to the Freight Forwarder/Shipping
Agent since you dont know about rules and regulations of other countries .All the information
about the arrival and departure of the vessel and their routes is available with Freight
Forwarder. A Freight Forwarder/Shipping Agent is an agent who handles export shipments for a
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fee. Hence, freight forwarders play a very important role for exporters. Freight Forwarder are
today known as shipping agents .
Roles of Shipping Agent or Freight Forwarder
1) Determination of shipping documents required for the shipment
2) To book the space on the ship and selection of proper sea routes
3) Keeping the consignor & consignee informed
4) To make CLP (Container Load Plan)
5) They also provide information about availability of best opportunity of booking space on
the vessel to the exporter
6) They conduct the stuffing process
7) They go for Consolidation

NON VESSEL OPERATING COMMON CARRIER:


Generally they are the carriers, that dont own their vessel. They reserve space on the vessels
of the shipping lines for the containers that are being dispatched by them, as they have tie-up
with shipping lines. For this the shipping line charges some extra to them for the same. This is
because the carriers have the benefit of dispatching the container on board the ship for the
particular destination even though the space is full on the vessel. They have an advanced
reserved space on the vessel for their containers. These carriers have the authority to issue the
Bill of Lading.
The freight forwarder ensures that your goods receive the priority it requires; your
documentation is appropriately filled and your goods reach its destination in the specified time.
SURVEYORS
As I worked with ICD, I got to know the role of entity called surveyors involved in export-import
transaction. Surveyors play major role in international trade. As a part of ICD, I got the chance
to work with Master Marine Surveyors. I got to learn some practical things which were new to
me. The working experience was good and worth mentioning.

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As the name suggests, surveyors are an entity which involved in survey/checking the condition
of consignment or container. The survey report submitted by surveyors plays crucial role in
case of any discrepancy/damages to the container. There are various kinds of examinations
conducted by surveyors on the basis of which survey report is issued.
1) There are many types of surveys conducted by surveyors as asked by Importer or Exporter
under heading:
Cargo Lashing report
Import cargo survey report
Container examination report etc.
The survey report contains following details,
2) Survey applicant
3) Survey date and time
4) Place of survey
5) Consignee
6) Invoice no & Date
7) No of Packages
8) Description
9) Gross weight & Net weight
In case of survey of cargo, the details examination is mentioned i.e. the condition of cargo
where damaged or proper. If damaged, then total description and reason for damage of
goods is given in survey report.
CONSOLIDATORS
Consolidators, as the name suggest is an entity which is responsible for consolidation of cargo.
In the case of LCL shipment (lesser than container load), the consignment is sent to
consolidators. Who then after getting other sufficient LCL consignments which are supposed to
be shipped the same destination, books the place in container. After which as the place in
container is utilized, the container is shipped to particular destination. Hence by converting LCL
shipments to FCL consolidators earn huge profits.

SHIPPING LINE/S

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The shipping line is responsible for the preparation of Bill of lading.

It is also responsible to deliver in the goods in the like order and condition as received
from the consignee.

The shipping line is also responsible for maintaining the goods in proper manner and
filing the IGM.

BASIC INFORMATION ABOUT THE DOCUMENTS INVOVLED IN EXPORTS


INVOICE
An invoice is a document which contains the detailed description of the goods consigned, order
of acceptance or contract no., IEC No., Cosigners & Consignees address, port of loading, port
of destination, country of origin, marks and number, number of packages, special marks (if
any), quantity shipped, selling price, terms of payment, terms of delivery amount of freight and
insurance (if applicable) etc. It is a good evidence of the contract of sale. The invoice should be
strictly according to the contract of sale and should be on the paper of seller and must be
signed by him or by the person acting on his behalf.
PACKING LIST
Packing List gives the information like the invoice number, number of pieces, number of pieces
per package, number of packages, dimensions of packages, general description of cargo, net
weight, gross weight, etc.
LETTER OF CREDIT
Letter of Credit is a written understanding by a bank (issuing bank) given to the seller
(beneficiary) at the request and in accordance with the instructions of the buyer (applicant) to
effect payment up to a stated sum of money within a prescribed time limit and against stipulate
documents. These stipulated documents are commercial invoice, certificate of origin, insurance
policy (if required) etc. Credits may either be revocable or irrevocable.

ARE (APPLICATION FOR REMOVAL OF EXCISABLE GOODS ) FORM:


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It is an application for removal of excisable goods for exports. Excise Department is keeping
watch on each and every moved in and out of the factory. If the manufacturer wants to move
the good out of the factory he has to pay the excise duty. If the manufacturer wants to sell
goods out of the country i.e export the goods there is temporary relaxation given by the excise
on provisional basis but there is an obligation on part of the exporter that he has to submit the
proof of export to the excise department.
Now if we dont want to pay the excise duty then we file for ARE form. ARE Form is a Central
Excise form required in case, when goods which are removed from manufacturing unit, are
subject to the Central Excise. This form is an application for removal of excisable goods for
export purpose claiming rebate on duty
In ARE we can move cargo out of the country without paying excise duty on provisional basis
and within stipulated time we have to submit the proof of export to the Excise Department to
get permanent relaxation.
SHIPPING BILL
Shipping Bill is an important document required by the customs authorities for allowing
shipment. It is prepared by the exporter / CHA and contains several details. The documents
that are required to prepare the shipping bills are as follows:
1) Four copies of Invoices
2) Four copies of Packing List
3) Self Declaration Form
Contract, Letter of Credit, Purchase Order

7 Copies of the Shipping Bill are generated

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1) Original
2) Duplicate

Customs
copy

3) Triplicate- EP copy finally goes to Excise department


4) Quadruplicate- Scheme copy finally goes to Director General of Foreign Trade
5) Port Trust Original
6) P.T. duplicate

To
port

7) P.T triplicate- stays with Dynamic


Types of Shipping Bill
1) Duty Free Shipping Bill: This type of shipping bill is used for the goods for which neither
duty nor is cess applicable. It is also used for the goods manufactured out of materials
imported under the duty free import. It is white in color.
2) Dutiable Shipping Bill: This type of shipping bill is used for goods subject to export duty/
cess, which either entitled or not entitled for drawback. It is used separately in respect of
which export duty is levied on the basis of (a) market price (b) tariff assessed value. It is
yellow in color.
3) Drawback Shipping Bill: If the export of goods is simultaneously by duty free and / or
subject to export duty / cess, this type of shipping bill is compulsorily to be used whether
alone or
4) Along with any other shipping bill. It is green in color.
5) Shipping Bill for shipment Ex-Bond: case of goods imported for re-export and kept inbond, this type of shipping bill is used. It is pink in color.
6) DEPB Shipping Bill: This kind of Shipping Bill is used when the export is under the
scheme of DEPB. It is blue in color.

Original. .Customs Copy

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DuplicateCustoms Copy
Export Promotion Copy. EP copy
Quadruplicate... Scheme Copy
Port trust Original..Port
Port trust Duplicate..Port
Port trust Triplicate Dynamic logistic.

NOTE
4TH copy is optional and is required according to the scheme under which the goods are
shipped. In the case where only six copy of shipping bill is required 4 th copy is not used
whereas in the case where seven copy of shipping bill is used 4 th copy is used.
MATES RECEIPT
Mate Receipt is a document that is issued by the Chief of the vessel or Captain after the cargo
is loaded onto the ship. This is the raw form of the Bill of Lading. This receipt has to be
submitted as the proof of export. The main details if the Mates Receipt are as follows:
1) Name of the exporter
2) Place of receipt
3) Voyage number
4) Port of loading
5) Port of discharge
6) Port of delivery
7) Marks and number
8) Container number
9) Description of goods
10) Gross weight etc.

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BILL OF LADING
Bill of Lading is a document issued by the shipping company OR its agent acknowledging that
the receipt of goods mentioned in the bill for the shipment on board of the vessel and
undertaking to deliver the goods in the like order and condition as received to the consignee or
his order provided the freight and other charges specified in the bill of Lading have been duly
paid.
The Bill of Lading eventually are, through the banking channels sent to the importer so that he
can take the delivery of the cargo after making the due payments.
There are generally 2-3 copies of the Bill of Lading prepared. The master/ agents of the
shipping company duly sign all the copies. All the originals are equally valid for taking the
delivery of the goods. Once one copy is so utilized, the rest of the copies are rendered null and
void for the purpose. Utmost care should be taken to see that none of the copies go in the
wrong hands. The exporter should take all the original copies form the shipping company or its
agent as the case may be. A few more copies of Bill of Lading are also issued, marked as Nonnegotiable, which cannot be used to take the delivery of the goods. There are various types of
Bill of Lading depending upon the terms of Letter of Credit. Some of them may not acceptable
under Letter of Credit unless specifically permitted. They are also distinguished on the basis of
the contents and validity of the Bill of Lading. They are as follows:
1) Clause Bill of Lading: This contains the additional clauses limiting the responsibility of the
Shipping Company and indicating defective conditions of the goods. This Bill of Lading is
not acceptable unless specifically authorized.
2) Clean Bill of Lading: It is the one that does not contain any superimposed clause or
annotation, which expressly declares a defective condition of the goods and/ or packaging.
3) Stale Bill of Lading: Is the one, which is tendered to the bank at so late a date that though
within the validity of Letter of Credit, it is impossible for it to be dispatched to the consignee
in time to reach him before the goods themselves arrive at the destination port.

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FORM-N
This form waves the Octroi on the goods entered from one municipal corporation, to the
municipal corporation of port of loading.
EP (EXPORT PROMOTION) COPY
It is the final copy of shipping bill, which is issued by the customs. It is generally used for
getting benefits and is submitted to the consigners bank as the proof of export
GR FORM / SDF
(Guarantee of Remittance Form) It is the declaration to be given by the exporter to the
Government of India, which abide him for remittance of the foreign earnings on making exports.
This form is to be given in Original and duplicate signed by the exporter.It contains details of
Customs Assessable value, Name of the bank through which payment is to be made, Name of
the advising bank and the declaration under Foreign Exchange Management Act, 1999.
The Statutory Declaration Form (SDF) is required in case of exports the shipping bills relating
to which are processed electronically. It replaces GR Form. The exporter to the shipping bill
shall append it. After verifying and authenticating the declaration in SDF, the customs will hand
over to the exporter, one copy of such shipping bill marked Exchange Control Copy to which
the form had been appended, for being submitted to bank
GSP (GENERALISED SYSTEM OF PREFERENCE) CERTIFICATE:
The East European Countries (EEC) comprising France, Germany, Belgium, Luxemburg,
Netherlands, Italy, United Kingdom, Ireland, Denmark and Greece have adopted the GSP,
under which manufacturers and semi-manufacturers of goods from developing countries
including India will be entitled to a concessional rate of import duty in these countries. The
Govt. of India authorized the export agencies to issue the certificate of origin.
CONTAINER SAFETY CERTIFICATE
This is the certificate pasted on each type of container. Container related information related
information like who is the manufacturer, approver, place of manufacturing etc. printed on it.

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IMPORT
GENERAL IMPORT PROCEDURE
1) Enquiry made by Importer
2) General Information along with Quotation is given by the Exporter to the
Importer
3) Conformation of order by the Importer
4) Preparation of the documents by the Exporter
5) Exporter sends Bill of Lading through the Exporter i.e his bank to the Importers
Banks
6) Importer Collects the documents from the his Bank ( Importers Banks) after
making the payments
7) Importer sends the documents to the CHA
8) Meanwhile the goods comes to the Importers country ,CHA then on the basis
of this files for Bill of Entry which is most important in import procedure
9) Then assessment ,examination and auditing of the goods takes place
In assessment quantity ,weight ,etc of the imported goods is checked with those
mentioned in bill of lading.
In examination whether the imported goods are restricted or prohibited according
to the law are checked and finally in auditing calculation of duties takes place.
10) After this duty is paid in the bank by filling up TR6 Challan
11) Then customs charges are paid and out of charge order is given by the
customs
12) Pay the Octroi Charges

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IMPORT PROCEDURE FOLLOWED AT ICD DIGHI

ICD DESTUFFING AT IMPORTS WAREHOUSE


1)

The Container which comes from Mumbai is bought to the ICD

2)

Generate the Index No. after verifying the request form with the Invoice Bill of Lading

3)

Generate the incoming gate-pass for the container and unloading instructions of the
container

4)

Breaking the seal of the container in presence of the custom officer

5)

In the meantime the customs formalities are completed by the CHA

6)

De-stuffing the cargo and stacking it to the specified place in the Import warehouse

7)

Paste the stack card on the cargo and other details

8)

Release the cargo as per the requirement of the Importer

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FACTORY DESTUFFING
1) Receive the Bill of Entry from the CHA/Client
2) Receive the shipping line delivery order endorsed by the customs
3) Generate the gate-pass of the incoming loaded container and the said container is
unloaded from the trailer as per the instruction on the specific slot
4) Customs examination takes place and simultaneously the CHA completes all the
customs formalities
5) Custom cleared container is loaded on the trailer and sent to the Importers factory after
payment of customs duty
6) Cargo is unloaded in the factory and empty container is sent to the factory depending
upon the instruction of the shipping line
DOCUMENTS INVOLVED IN IMPORT PROCEDURE
BILL OF ENTRY
The Bill of Entry is the document on the strength of which clearance of imported goods can be
done. The form of the Bill of Entry has been standardized by the Central Board of Excise and
Customs. As soon as the importer receives the advice of arrival of the vessel the importers are
required to present a document known as Bill of Entry, either for Home Consumption or for
warehousing the goods. The Bill of Entry is noted in the Import Department.
Types of Bill of Entry:
1) For Home Consumption -White Bill of Entry(Form No. 22)
It is to be submitted when the imported goods are to be cleared on payment of full
duty for immediate consumption of the goods
2) For warehousing -Yellow color In-Bond Bill of Entry. (Form No. 23)
It is to be submitted when the imported goods are not required immediately the
importer but here they are to be stored in a warehouse without payment of duty under
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a bond and cleared later when required on payment of duty. This enables the importer
to defer payment of Customs Duty until the goods are actually required by him.
3) For ex-bond- Green color.( Form No. 24)
It is used for clearing goods from the warehouse on payment of duty. When the goods
are removed from the warehouse after paying duties on the goods which are removed
only and there are still some goods remained in the warehouse. The rate of duty
payable is that rate which is applicable on the date of removal of goods from the
warehouse
For preparing the bill of entry the documents that are required are as follows:
1)

Invoice

2)

Packing List

3)

Bill of Lading

4)

DO (Delivery Order)

5)

Purchase Order

6)

Certificate of Origin

7)

License copy, Bond certificate (If required)

6 Copies of Bill Of Entry are generated


Original and Duplicate (Customs Copy)
Third copy is importers copy
Fourth copy is Bank Copy for making remittance
Fifth copy is port trust copy
Sixth copy is CHA copy

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REASONS FOR IMPOSING IMPORT DUTIES


The duty is levied on the goods, primarily, for the following purposes,
o
o
o
o

To raise revenue
To regulate import of foreign goods into India.
To conserve foreign exchange, regulate the supply of goods into domestic market
To provide protection to the domestic industry from foreign competition by restricting
import of selected goods and services, import licensing, import quotas and outright
import ban.

Types of import duties


1. Basic duty Standard rate or preferential rate for imports from some countries.
2. Additional customs duty It is equal to central excise duty leviable on like goods
produced or manufactured in India. It is payable only if the imported article is such as,
if produced in India, its process of production would amount to manufacture as per
definition in Central Excise Act , 1944.It is also called Countervailing duty (CVD). CVD
is calculated on the aggregate of value of the goods including the landing charges &
basics customs duty.
3. Additional duty of customs Additional duty of customs not exceeding 4% is levied in
order to counter balance various internal taxes like Sales tax& VAT and to provide a
level playing field to indigenous goods which have to bear these taxes. Value base for
this duty would be aggregate of landed value and CVD. This additional duty will not be
included in the assessable value for levy of educational cess on imported goods.
4. Education Cess / Secondary & Higher Education Cess Education Cess at the rate of
2% and Secondary & Higher Education Cess at the rate of 1% on the aggregate duties
of the customs (including CVD) is leviable. If goods are fully exempted from duty or are
chargeable to nil duty or are cleared without payment of duty under prescribed
procedure such as clearance under bond, no cess would be leviable.

DOCUMENTS INVOLVED IN IMPORT PROCEDURE

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IMPORT GENERAL MANIFEST


IGM is a document to be filed with the customs by the carrier of the goods I.e. steamer agents /
airlines. this document indicates the details of all good to be unloaded at the port from
vessel(ship) or aircraft. The IGM has to be filed within 24 hours after arrival of ship / aircraft.
However in case of vessel (ship) the manifest may be delievered even before the arrival of the
vessel. This enables the importer to file bill of entry & get them assessed & pay duty so that the
goods can be taken delivery soon after the unloading.
CARGO ARRIVAL NOTICE
It is issued after cargo is forwarded to the custom warehouse. It is repaired when the
documents are received & a copy of CAN along with the document is handed over to the
consignee or his clearing agent. CAN is the bill drawn on the consignee by the freight
forwarder. Incase of a collect shipment cartage charge, service fee, freight charges & Currency
Adjustment Factor (CAF), CC fees (Collect Charges) are charged in the CAN. Incase of a
prepaid shipment only Cartage Charge & Service fee is charged to the consignee
DELIVERY ORDER
It is basically permission given by the Shipping Company after payment of all charges/freight
charges by the importer depending upon the INCO Term. The CHA takes it from the Shipping
Company at the time of clearing the cargo from the custom warehouse. The D/O carries the
name of the consignee, import Rotation number, IGM number, flight number, MAWB number,
HAWB number, description of packages & nature of goods. Its a tool through which the
payments are recovered because D/O allows the consignee to file for the Bill of Entry.
Types of Delivery Order
Examination Delivery Order
Final Delivery Order
The Examination Delivery order is taken from the shipping company in case the custom
Authorities ask for the examination of goods on the destination port. It is given by the shipping
company on temporary basis for the smooth examination process in the Custom Clearance.

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The Final Delivery order is the order given by the shipping company to clear the goods from the
Custom Authorities. At the time of taking a Delivery order the Bill of Entry has to be submitted to
the shipping company.
DECLARATION
The importer is required to submit a declaration disclosing full and accurate details regarding to
the value of the imported goods and any other statement, information or document including an
invoice of the manufacturer of the imported goods as considered necessary for determination
of value of imported goods. Declaration form in duplicate duly signed by the importer should be
attached with original Bill of Entry.
TR6 CHALLAN
It is a document which the bank owns with the help of which the payment is received ,it mention
about the description of goods, quantity and amount of duty which has to be paid. The duty can
be paid in the designated banks of through TR6 challan. Bank endorses the payment
particulars in challan which is submitted to the customs.

MY OBSERVATIONS AND LEARNINGS AT ICD DIGHI


Due to the opening of new ICD/CFS at Chinch wad and Talegaon and due to the global
economic recession , the revenue of the ICD, Dighi especially Dynamic Logistics
Private Limited has decreased significantly
Tariff is competitive and customers can be assured of value added services
considering low storage charges.
One cannot enter the premises of the ICD, Dighi Customs area without permission
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Modern equipment and technology is used to facilitate the procedure.


Capacity to handle more cargo traffic.
Basic amenities provided as clean premises, canteen, drinking water, parking shed.
Communication is no problem as each department is well connected with telephone

lines and extensions available to each counter.


Extended working hours enables to clear and send the cargo even in late evening.
Bank of Maharashtra opening soon at ICD which will be an added advantage to
customers.
Proper communication and coordination between each department is very essential for
smooth functioning of organization. This can increase efficiency of serving clients
effectively which ultimately turns new customer to loyal customer category
LEARNINGS

I have experienced as to how the organization works.


I have learned the working of the CHA/FF.
I
have
understood
the

roles

of

the

employees in the organization and etiquettes of communicating with them. This will
certainly help me in near future.
I have learned how the problems occur, its causes and analyzing them it from my own
view/perspective.
Made an attempt to convert theoretical knowledge into practical.
Understood roles of each player which are involved in International trade transactions.

CONCLUSION
I have completely achieved both the academic and personal objectives during the summer
internship in Dynamic Logistics Pvt. Ltd, which has proved to be a great learning
experience. . It gave me an opportunity to experience the working of service organization
dealing in imports and exports which helped me to achieve a perfect overview of the
various entities involved in the International Trade.
Working with FF/CHA and ICD staff has helped me to track the flow of various documents
perfectly. I could see the process right form preparation of the document till finally handing
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over to customs / customer. Working in different departments has made me understand


how different processes are internally connected which cannot function independently.
Being in different departments and working with people at different level has also helped
me to understand the etiquettes of making communication and carrying out activities in an
organization.
Theoretical knowledge at IMDR along with practical knowledge during the internship has
helped me to understand the procedures and documentation (along with the flow of various
documents) of Export and import perfectly.
I hope the summer internship I underwent will prove to be fruitful to me in my career and
near future.

BIBLIOGRAPHY
o
o
o
o

Notes made during Internship


Lecture Notes given by Mr. Manish Mishra
Standard Operating Procedures of Dynamic Logistics Private Limited
Information given by CHAs , Shipping Agent and NVOCC operators at ICD-Dighi

WEBSITES
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www.export911.com
www.cbec.gov.in

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