Documenti di Didattica
Documenti di Professioni
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SUBMITTED TO: -
SUBMITTED BY: -
(Assistant Professor)
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CERTIFICATE
This is to certify that the summer project report titled Study of Custom Clearance
Procedure of Om Freight Forwarders has been accomplished by Manish Kumar
Chaurasia MBA 3rd Semester under my guidance and supervision. This project is
being submitted by him in the partial fulfilment of requirements for award of the MBA
Degree from Quantum School of Business, Roorkee (Uttarakhand)
This work has not been submitted by him anywhere else for the award of any degree
or diploma. All sources of information and help have been duly mentioned and
acknowledged.
(Project Mentor)
(Head of Department)
ACKNOWLEDGEMENT
I acknowledge here Mr. Kewal Joshi Sir (Branch Manager) and Mr. Samarth
Singhal Sir (Marketing Head) who have been instrumental in preparation of my
project.
I acknowledge my gratitude to my parents whose support, dedication and honest
efforts have given me an immense help in doing this project.
I take the opportunity to thanks to Mr. Chandan Gupta Sir Assistant Professor of
Quantum School of Business, Roorkee for motivating, encouraging, guiding and
supporting at every step and sparing their valuable time for me.
I would be failing in my duty if I do not acknowledge the gratitude to Professor
Dr.Rohit Kushwaha Sir Director of Quantum School of Business, who motivated
us a lot in carrying out this project.
Last but not the least I record my sincere thanks to all beloved and respectable
persons who helped me and could find any separate mention.
PREFACE
Summer Training is the Bridge for a student that takes his theoretical knowledge
world to practical industry world, the main purpose of industrial visit to expose for
industrial and business environment, which cannot be possible in the classroom.
The advantages of this sort of Integration which promotes guided to corporate
culture, functional, social and norms along with formal teaching are numerous.
The prevent report gives a detailed view of the Customer satisfaction regarding
Custom Clearance service and Custom Clearance Procedure of Om Freight
Forwarders. The research is definitely going to play an important role in developing
an aptitude for hard self-confidence.
Executive Summary
A freight forwarder often referred to as a forwarder is a professional logistics
provider. Freight forwarders are third parties and their objective is to dispatch
shipments via asset based carriers such as ships, airplanes or trucks. The main
purpose of turning to the services of freight forwarders is arranging cargo movement
to an international destination quickly and easily.
Custom Clearance services are typically used by companies that deal with
international Custom Clearance of Goods on import and export activities. The freight
forwarding company is a third party it doesnt ship the cargo itself. Shipping various
products between countries and territories usually involves a multitude of carriers,
requirements and legal documentation.
Major companies and corporations greatly depend on professional freight forwarders
in their import and export activities.
As we scale the chronological ladder of time, we find a number of industries that
have assumed significance in Indian Economy. With the rapid globalization this
growth is likely to accelerate in future.
The purpose of this project is to study the services provided by Om Freight
Forwarders Pvt. Ltd. and public sector to the customers. The object was to study
about that the customers preference regarding Custom Clearance Service of Om
Freight
It is all done by my self-study and with the help of employees and by the customers
and the services are provided by Om Freight Forwarders.
Company Profile
Introduction
Om Freight Forwarders Pvt Ltd. is a Third generation international logistics and
freight forwarding company with over four decades of domain expertise.
Headquartered at Mumbai, India and with offices & associates across 5 continents,
we
cater
to
over
700
unique
national
and
international
locations.
Our branches are located at major cities, commercial hubs, airports and seaports
across India. In order to meet the growing demand for a reliable global logistics
partner, we have setup our overseas offices at China, Hong Kong, UK (Europe) and
Singapore.
Om Freight Forwarders Pvt Ltd. ranks amongst India's most versatile logistics
solutions companies, adhering to stipulated custom compliances and accreditations
such as MTO, IATA and FIATA. Our strategic association with international freight
forwarders and customs brokerages allows our clients to avail a wide range of stateof-the-art, tailor-made freight services in a timely and cost effective manner.
We can develop a detailed understanding of our clients businesses and partner them
by offering end-to-end logistic, legal, and warehousing and distribution solutions.
Mission
To forge long-term alliances by developing a thorough understanding of our clients
businesses, their goals and aspirations and employing cutting edge technology
solutions that can enable us to be a logistics partner of choice.
Vision
Delivering Value-Customers are the life line for any business and we
constantly work towards strengthening our customer relationships and
developing newer ones. We strive to meet and exceed customer expectations
by developing and delivering highly attractive and innovative products and
services.
Quality Policy
Our Company- Om Freight Forwarders Pvt Ltd. is a rapidly expanding clearing,
freight forwarding and shipping company. Our customer-centric and people-friendly
policies are the key to our success.
We Strive Towards
10
11
12
logistic
company
our clients have been our greatest motivators and our pillars of strength. We respect
our relationship with each one of them and try to strive for a little extra in everything
we
do
for
them.
Our dedicated staff members are the backbone of our successes and none of the
milestones would have been possible without immense contribution and dedication
on their part.
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14
15
Om Freight Forwarder Pvt. Ltd. is your India agent offering complete Import and
Export customs clearance services at all major air and sea ports in India.
With over four decades of operation & Handling expertise, we combine extensive
customs clearing and forwarding experience with the latest in information
technology.
We adhere to strict customs compliance and quality policy for all our operations;
thereby eliminating delays and providing reliable service to our customers worldwide.
We are hands-on with the latest in customs compliances, regulations and
procedures and offer clearance of import and export consignments by sea, air and
road.
Our Services in Customs Clearing Include
Guidance for preparing import and export related documents as per customs
compliance
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In-Bond/Ex-Bond shipment
Free-of-charges shipments
Courier clearance
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Export Services
Under claim for duty drawback. (All industry rate / brand rate) of dutiable
goods
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Single source clearance for all your transportation, customs and delivery
requirements
Competitive rates
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20
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Custom Clearance
Customs departments have offices at all seaports, airports and border gateways that
are essentially the exit and entry points for people and cargo movements into and
out of the country.
Customs agencies are empowered to make arrests, confiscate goods and enjoy
powers similar to that of police departments.
Every country annually publishes its policy for Foreign Trade, which stipulates the
conditions under which goods and services are eligible to be exported or imported.
Customs departments implement the provisions of the policy under customs rules,
regulations and tariffs.
Imports in many countries may be allowed freely, or some categories may be
permitted with due licenses. Many items are also published as banned for import and
not allowed entry into the country.
All of the items imported into the country have to be custom cleared. This applies to
the items brought in as personal effects and also imported by trade and business
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Exports Documentation:
Sales Invoice
A sales invoice can be simply defined as the request of payment by the customer for
goods sold or services provided the seller. An invoice generally lists the description
and the quantity of the item sold or service provided. The document is also a record
of the sale for both the seller and the buyer.
Packing List
A packing list is a document that includes details about the contents of a package.
The packing list is intended to let transport agencies, government authorities, and
customers know the contents of the package. These details help each of these
parties handle the package accordingly.
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Imports Documentation:
25
Packing List
A packing list is a document that includes details about the contents of a package.
The packing list is intended to let transport agencies, government authorities, and
customers know the contents of the package. These details help each of these
parties handle the package accordingly.
Certificate of Origin
A Certificate of Origin (CO) is an important international trade document attesting
that goods in a particular export shipment are wholly obtained, produced,
manufactured or processed in a particular country. COs also constitute a declaration
by the exporter.
Customs Agents prepare the document of Shipping Bills in the house for
submission while rests of the documents are obtained from the client.
Preparing shipping bill involves Classification of cargo under specific
classification that is a critical activity in the entire process.
Customs clearance agents are also called Carrying and Forwarding agents. They
are registered and licensed by Customs to operate. Their role is limited to acting on
behalf of and representing clients as third party agencies engaged in customs
clearance.
Customs Agents are linked through EDI with customs in most of the countries and
use documentation software to facilitate entire process.
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Import:
Bill of Entry Cargo Declaration:
Goods imported in a vessel/aircraft attract customs duty and unless these are not
meant for customs clearance at the port/airport of arrival by particular vessel/aircraft
and are intended for transit by the same vessel/aircraft or transhipment to another
customs station or to any place outside India, detailed customs clearance formalities
of the landed goods have to be followed by the importers. In regard to the transit
goods, so long as these are mentioned in import report/IGM for transit to any place
outside India, Customs allows transit without payment of duty. Similarly for goods
brought in by particular vessel aircraft for transhipment to another customs station
detailed customs clearance formalities at the port/airport of landing are not
prescribed and simple transhipment procedure has to be followed by the carrier and
the concerned agencies. The customs clearance formalities have to be complied
with by the importer after arrival of the goods at the other customs station. There
could also be cases of transhipment of the goods after unloading to a port outside
India.
Assessment
Section 17 provides that assessment of goods will be made after Bill of Entry is filed.
Date stamp of receipt is put on the Bill of Entry and then it sent to appraising
department either manually or electrically.
There are various Appraising groups for different chapter heading. Each group is
under an Assistant/Deputy commissioner. Group consists of Examiners and
Appraiser
EDI Assessment
Examination of Goods
Payment of Duty
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After the goods are unloaded, these have to be cleared within stipulated time usually
three working days. If these are not so removed, demurrage is charged by port
trust/airport authorities, which is very high. Hence, importer wants to complete as
many formalities as possible before ship arrives. Provision to section 46(3) of custom
act allows importer to present bill of entry up to 30 Days before expected date of
arrival of vessel. in such case, duty will be payable at the rate applicable on the date
on which Entry inward is granted to vessel and not the date of presentation of Bill of
Entry, but the rate of Exchange will be as prevalent on date of submission of bill of
entry.
Specialised Schemes
Bill of Entry for Bond/Warehousing
For other goods, which are offloaded importers, have the option to clear the goods
for home consumption after payment of the duties liveable or to clear them for
warehousing without immediate discharge of the duties liveable in terms of the
warehousing provisions built in the Customs Act. Every importer is required to file in
terms of the Section 46 an entry (which is called Bill of entry) for home consumption
or warehousing in the form, as prescribed by regulations.
If the goods are cleared through the EDI system no formal Bill of Entry is filed as it is
generated in the computer system, but the importer is required to file a cargo
declaration having prescribed particulars required for processing of the entry for
customs clearance.
The Bill of entry, where filed, is to be submitted in a set, different copies meant for
different purposes and also given different colour scheme, and on the body of the bill
of entry the purpose for which it will be used is generally mentioned in the non-EDI
declaration.
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The importer clearing the goods for domestic consumption has to file bill of entry in
four copies; original and duplicate are meant for customs, third copy for the importer
and the fourth copy is meant for the bank for making remittances.
In the non-EDI system along with the bill of entry filed by the importer or his
representative the following documents are also generally required:
Signed invoice
Packing list
Importers/CHAs declaration
Insurance document
Import license
No Commission declaration
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Import Procedure:
Import trade refers to the purchase of goods from a foreign country. The procedure
for import trade differs from country to country depending upon the import policy,
statutory requirements and customs policies of different countries. In almost all
countries of the world import trade is controlled by the government. The objectives of
these controls are proper use of foreign exchange restrictions, protection of
indigenous industries etc. The imports of goods have to follow a procedure. This
procedure involves a number of steps.
The steps taken in import procedure are discussed as follows:
Trade Enquiry:
The first stage in an import transaction, like any other transaction of purchase and
sale relates to making trade enquiries. An enquiry is a written request from the
intending buyer or his agent for information regarding the price and the terms on
which the exporter will be able to supply goods.
The importer should mention in the enquiry all the details such as the goods
required, their description, catalogue number or grade, size, weight and the quantity
required. Similarly, the time and method of delivery, method of packing, terms and
conditions in regard to payment should also be indicated.
In reply to this enquiry, the importer will receive a quotation from the exporter. The
quotation contains the details as to the goods available, their quality etc., the price at
which the goods will be supplied and the terms and conditions of the sale.
Procurement of Import License and Quota:
The import trade in India is controlled under the Imports and Exports (Control) Act,
1947. A person or a firm cannot import goods into India without a valid import
license. An import license may be either general license or specific license. Under a
general license goods can be imported from any country, whereas a specific or
individual license authorizes to import only from specific countries.
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The Government of India declares its import policy in the Import Trade Control Policy
Book called the Red Book. Every importer must first find out whether he can import
the goods he wants or not, and how much of a certain class of goods he can import
during the period covered by the relevant Red Book.
For the purpose of issuing license, the importers are divided into three
categories:
Established importer,
Actual users, and
Registered exporters, i.e., those import under any of the export
promotion schemes.
In order to obtain an import license, the intending importer has to make an
application in the prescribed form to the licensing authority. If the person imported
goods of the class in which he is interested now during the basic period prescribed
for such class, he is treated as an established importer.
An established importer can make an application to secure a Quota Certificate. The
certificate specifies the quantity and value of goods which the importer can import.
For this, he furnishes details of the goods imported in any one year in basic period
prescribed for the goods together with documentary evidence for the same, including
a certificate from a chartered accountant in the prescribed form certifying the c.i.f.
value of the goods imported in the selected year.
The c.i.f. value includes the invoice price of the goods and the freight and insurance
paid for the goods in transit. The quota certificate entitles the established importer to
import up to the value indicated therein (called Quota) which is calculated on the
basis of past imports. If the importer is an actual user, that is, he wants to import
goods for his own use in industrial manufacturing process he has to obtain license
through the prescribed sponsoring authority.
The sponsoring authority certifies his requirements and recommends the grant of
license. In case of small industries having a capital of less than Rs. 5 Lakhs, they
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have to apply for licenses through the Director of Industries of the state where the
industry is located or some other authority expressly prescribed by the Government.
Registered exporter importing against exports made under a scheme of export
promotion and others have to obtain license from the Chief Controller of Exports and
Imports. The Government issues from time to time a list of commodities and
products which can be imported by obtaining a general permission only. This is
called as O.G.L. or Open General License list.
Obtaining Foreign Exchange:
After obtaining the license (or quota, in case of an established importer), the importer
has to make arrangement for obtaining necessary foreign exchange since the
importer has to make payment for the imports in the currency of the exporting
country.
The foreign exchange reserves in many countries are controlled by the Government
and are released through its central bank. In India, the Exchange Control
Department of the Reserve Bank of India deals with the foreign exchange. For this
the importer has to submit an application in the prescribed form along-with the import
license to any exchange bank as per the provisions of Exchange Control Act.
The exchange bank endorses and forwards the applications to the Exchange Control
Department of the Reserve Bank of India. The Reserve Bank of India sanctions the
release of foreign exchange after scrutinizing the application on the basis of
exchange policy of the Government of India in force at the time of application.
The importer gets the necessary foreign exchange from the exchange bank
concerned. It is to be noted that whereas import license is issued for a particular
period, exchange is released only for a specific transaction. With liberalization of
economy, most of the restrictions have been removed as rupee has become
convertible on current account.
32
document sent to a purchaser of goods to inform him that goods have been
dispatched. It may also indicate the probable date on which the ship is expected to
reach the port of destination.
The exporter then draws a bill of exchange on the importer for the invoice value of
goods. The shipping documents such as the bill of lading, invoice, insurance policy,
certificate of origin, consumer invoice etc., are also attached to the bill of exchange.
Such bill of exchange with all these attached documents is called Documentary Bill.
Documentary bill of exchange is forwarded to the importer through a foreign
exchange bank which has a branch or an agent in the importers country for
collecting the payment of the bill.
There are two types of documentary bills:
If the bill of exchange is a D/P bill, then the documents of title of goods are delivered
to the drawee (i.e., importer) only on the payment of the bill in full. D/P bill may be
sight bill or usance bill. In case of sight bill, the payment has to be made immediately
on the presentation of the bill. But usually a grace period of 24 hours is granted.
Usance bill is to be paid within a particular period after sight. If the bill is a D/A bill,
then the documents of title of goods are released to the drawee on his acceptance of
the bill and it is retained by the banker till the date of maturity. Usually 30 to 90 days
are provided for the payment of the bill.
Customs Formalities and Clearing of Goods:
After receiving the documents of title of the goods, the importers only concern is to
take delivery of the goods, when the ship arrives at the port and to bring them to his
own place of business. The importer has to comply with many formalities for taking
delivery of goods. Unless the following mentioned formalities are complied with, the
goods lie in the custody of the Custom House.
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Bill of Sight:
If the importer is not is a position to supply the detailed particulars of goods because
of insufficiency of information supplied to him by the exporter, he has to prepare a
statement called a bill of sight. The bill of sight contains only the information
possessed by the importer along-with a remark that he is not in a position to give
complete information about the goods. The bill of sight enables him to open the
package and examine the goods in the presence of custom officer so as to complete
the bill of entry.
To pay Customs or Import Duty:
There are three types of imported goods:
Goods which are to be sold within the country or which are for home
consumption, and
Re-exportable goods i.e. goods meant for re-export. If the goods are duty
free, no import duty is to be paid at the custom office.
Custom authorities will permit the delivery of such goods after usual examination of
the goods. But if the goods are liable for duty, the importer has to pay custom or
import duty which may be based on weight or measurement of goods, called Specific
Duty or on the value of imported goods Ad-valorem Ditty.
There are three types of import duties. On some goods quite low duties are levied
and they are called revenue duties. On some others, quite high duties are charged to
give protection to home industries against foreign competition. While goods imported
from certain nations are given preferential treatment for the levy of import duties and
in their case full protective duties are not charged.
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He wants to re-export the goods and thereby does not want to pay the duty.
A nominal rent is charged for the use of these warehouses. One special advantage
of these warehouses is that the importer can sell the goods and transfer the title of
goods merely by endorsing warehouse receipt or dock-warrant. This will save the
importer from the trouble and expenses of carrying the goods from the warehouses
to his go down.
Appointment of clearing Agents:
By now we understand that the importer has to fulfill many legal formalities before he
can take delivery of goods. The importer may take the delivery of the goods himself
at the port. But it involves much of time, expenses and difficulty. Thus, to save
himself from the botheration of complying with all the complicated formalities, the
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importer may appoint clearing agents for taking the delivery of the goods for him.
Clearing agents are the specialized persons engaged in the work of performing
various formalities required for taking the delivery of goods on behalf of others. They
charge some remuneration on performing these valuable services.
Making the Payment:
The mode and time of making payment is determined according to the terms and
conditions as agreed to earlier between the importer and the exporter. In case of a
D/P bill the documents of title are released to the importer only on the payment of the
bill in full. If the bill is a D/A bill, the documents of title of the goods are released to
the importer on his acceptance of the bill. The bill is retained by the banker till the
date of maturity. Usually, 30 to 90 days are allowed to the importer for making the
payment of such bills.
Closing the Transactions:
The last step in the import trade procedure is closing the transaction. If the goods are
to the satisfaction of the importer, the transaction is closed. But if he is not satisfied
with the quality of goods or if there is any shortage, he will write to the exporter and
settle the matter. In case the goods have been damaged in transit, he will claim
compensation from the insurance company. The insurance company will pay him the
compensation under an advice to the exporter.
Related Articles:
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Export Procedure
For clearance of export goods, the export or his agents have to undertake the
following formalities:
Registration:
The exporters have to obtain PAN based Business Identification Number(BIN) from
the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of
export goods. Under the EDI System, PAN based BIN is received by the Customs
System from the DGFT online. The exporters are also required to register authorised
foreign exchange dealer code (through which export proceeds are expected to be
realised) and open a current account in the designated bank for credit of any
drawback incentive.
Registration in the case of export under export promotion schemes:
All the exporters intending to export under the export promotion scheme need to get
their licences/DEEC book etc. registered at the Customs Station. For such
registration, original documents are required .
Processing of Shipping Bill-Non-EDI:
Under manual system, shipping bills or, as the case may be, bills of export are
required to be filed in format as prescribed in the Shipping Bill and Bill of Export
(Form) regulations, 1991. The bills of export are being used if clearance of export
goods is taken at the Land Customs Stations. Different forms of shipping bill/bill of
export have been prescribed for export of duty free goods, export of dutiable goods
and export under drawback etc.
Processing of Shipping Bill-EDI:
Under EDI System, declarations in prescribed format are to be filed through the
Service Centres of Customs. A checklist is generated for verification of data by the
40
exporter/CHA. After verification, the data is submitted to the System by the Service
Centre operator and the System generates a Shipping Bill Number, which is
endorsed on the printed checklist and returned to the exporter/CHA. For export items
which are subject to export cess, the TR-6 challan for cess is printed and given by
the Service Centre to the exporter/CHA immediately after submission of shipping bill.
The cess can be paid on the strength of the challan at the designated bank. No copy
of shipping bill is made available to exporter/CHA at this stage.
Octroi procedure, Quota Allocation and Other certification for Export
Goods:
The quota allocation label is required to be pasted on the export invoice. The
allocation number of AEPC is to be entered in the system at the time of shipping bill
entry. The quota certification of export invoice needs to be submitted to Customs
along-with other original documents at the time of examination of the export cargo.
For determining the validity date of the quota, the relevant date needs to be the date
on which the full consignment is presented to the Customs for examination and duly
recorded in the Computer System. In EDI System at Delhi Air cargo, the quota
information is automatically verified from the AEPC/TEXPROCIL system.
Arrival of Goods at Docks:
The goods brought for the purpose of examination and subsequent 'let export' is
allowed entry to the Dock on the strength of the checklist and other declarations filed
by the exporter in the Service Centre. The Port authorities have to endorse the
quantity of goods actually received on the reverse of the Check List.
System Appraisal of Shipping Bills:
In many cases the Shipping Bill is processed by the system on the basis of
declarations made by the exporters without any human intervention. In other cases
where the Shipping Bill is processed on screen by the Customs Officer, he may call
for the samples, if required for confirming the declared value or for checking
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classification under the Drawback Schedule. He may also give any special
instructions for examination of goods, if felt necessary.
Status of Shipping Bill:
The exporter/CHA can check up with the query counter at the Service Centre
whether the Shipping Bill submitted by them in the system has been cleared or not,
before the goods are brought into the Docks for examination and export. In case any
query is raised, the same is required to be replied through the service centre or in
case of CHAs having EDI connectivity through their respective terminals. The
Customs officer may pass the Shipping Bill after all the queries have been
satisfactorily replied to.
Customs Examination of Export Cargo:
After the receipt of the goods in the dock, the exporter/CHA may contact the
Customs Officer designated for the purpose present the check list with the
endorsement of Port Authority and other declarations as aforesaid along with all
original documents such as, Invoice and Packing list, AR-4, etc. Customs Officer
may verify the quantity of the goods actually received and enter into the system and
thereafter mark the Electronic Shipping Bill and also hand over all original
documents to the Dock Appraiser of the Dock who many assign a Customs Officer
for the examination and intimate the officers name and the packages to be
examined, if any, on the check list and return it to the exporter or his agent.
Variation between the Declaration & Physical Examination:
The check list and the declaration along with all original documents is retained by the
Appraiser concerned. In case of any variation between the declaration in the
Shipping Bill and physical documents/examination report, the Appraiser may mark
the Electronic Shipping Bill to the Assistant Commissioner/Deputy Commissioner of
Customs (Exports). He may also forward the physical documents to Assistant
Commissioner/Deputy Commissioner of Customs (Exports) and instruct the exporter
or his agent to meet the Assistant Commissioner/Deputy Commissioner of Customs
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(Exports) for settlement of dispute. In case the exporter agrees with the views of the
Department, the Shipping Bill needs to be processed accordingly. Where, however,
the exporter disputes the view of the Department principles of natural justice is
required to be followed before finalisation of the issue.
Stuffing / Loading of Goods in Containers
The exporter or his agent should hand over the exporter copy of the shipping bill duly
signed by the Appraiser permitting "Let Export" to the steamer agent who may then
approach the proper officer (Preventive Officer) for allowing the shipment. In case of
container cargo the stuffing of container at Dock is dome under Preventive
Supervision. Loading of both containerized and bulk cargo is done under Preventive
Supervision. The Customs Preventive Superintendent (Docks) may enter the
particulars of packages actually stuffed in to the container, the bottle seal number
particulars of loading of cargo container on board into the system and endorse these
details on the exporter copy of the shipping bill presented to him by the steamer
agent. If there is a difference in the quantity/number of packages stuffed in the
containers/goods loaded on vessel the Superintendent (Docks) may put a remark on
the shipping bill in the system and that shipping bill requires amendment or changed
quantity. Such shipping bill also may not be taken up for the purpose of sanction of
Drawback/DEEC logging, till the shipping bill is suitably amended for the changed
quantity. The Customs Preventive Officer supervising the loading of container and
general cargo in to the vessel may give "Shipped on Board" endorsement on the
exporters copy of the shipping bill.
Drawal of Samples:
Where the Appraiser Dock (export) orders for samples to be drawn and tested, the
Customs Officer may proceed to draw two samples from the consignment and enter
the particulars thereof along with details of the testing agency in the ICES/E system.
There is no separate register for recording dates of samples drawn. Three copies of
the test memo are prepared by the Customs Officer and are signed by the Customs
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Officer and Appraising Officer on behalf of Customs and the exporter or his agent.
The disposals of the three copies of the test memo are as follows:
Amendments:
Any correction/amendments in the checklist generated after filing of declaration can
be made at the service centre, provided, the documents have not yet been submitted
in the system and the shipping bill number has not been generated. Where
corrections are required to be made after the generation of the shipping bill No. or
after the goods have been brought into the Export Dock, amendments is carried out
in the following manners.
If the goods have not yet been allowed "let export" amendments may be
permitted by the Assistant Commissioner (Exports).
Where the "Let Export" order has already been given, amendments may be
permitted only by the Additional/Joint Commissioner, Custom House, in
charge of export section.
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at
the
Export
Department
and
the
Shipping
lines
may
obtain
acknowledgements indicating the date and time at which the EGMs were received by
the Export Department.
45
Research Methodology
46
The process used to collect information and data for the purpose of making business
decisions. The methodology may include publication, research, interview, survey and
other research techniques, and could include both present and historical information
Methodology is the systematic, theoretical analysis of the methods applied to a field
of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Typically, it encompasses concepts such as
philosophical or theoretical frameworks, theoretical model, phases and quantitative
or qualitative techniques.
A methodology does not set out to provide solutions - it is, therefore, not the same as
a method. Instead, a methodology offers the theoretical underpinning for
understanding which method, set of methods, or best practices can be applied to
specific case, for example, to calculate a specific result
The various tasks that I have undertaken in the research design process are: Defining the information need
Design the exploratory, descriptive and causal research
Research Process
The research process has four distinct yet interrelated steps for research analysis it
has a logical and hierarchical Ordering:
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Research Objective
Descriptive Research
The method I used for Descriptive research was
Primary Data
Secondary Data
Research Design
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Primary Data
Primary data are those data which collected by researcher or investor first time and it
is newly. It means it is not collected by someone else or that data are not used which
is collected by someone else.
Primary data are collected through some techniques:
Questionnaire
In my research I was collected the primary data to using my own Efforts and skill
through Questionnaire
Secondary Data
Secondary data are those data which is not collected first time by the researcher
which is already have been collected by someone else.
Those data are taken by the researcher for analysis purpose only
Secondary data are collected through using these techniques:
Internet
Magazine
News Paper
Any other Research Report
Government Published Report
Data Presentation
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Sample Area
Sample Size
Sampling Techniques
50
51
Frequency
13
28
9
Percentage
26
56
18
Import
Both
18%
Both
Export
26%
Import
56%
Data Interpretation: From the above data I found that 56% Manufacturer are Doing
Import Business, and 26% are Doing Export Business, While 18% Manufacturer
Doing Both kind of Business Export and Import.
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Question2. Are you aware with all the service provided by Om freight
forwarders?
Frequency
50
0
Percentage
100
0
No
No
0%
Yes
100%
Data Interpretation: From Above data I found that 100% Manufacturer are satisfied
with the service of Om Freight Forwarders because the sample size is 50
Manufacturer is the Customer of Om Freight Forwarders.
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Question3. From where do you know about our organization and its services?
Source of Information
Advertising
Reference
Cold Calling
Frequency
8
14
28
Percentage
16
28
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Refrances
16%
56%
28%
Data Interpretation: From above data I found that 56% Manufacturer are Aware
through Cold Calling by Om Freight Executive and 28% are Aware about its by
References. 16 % Manufacturers are Aware through Advertising done By
Organization
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Question4. Are you satisfied with all the service of Om freight forwarders?
Level Of Service
Yes
No
Frequency
34
16
Percentage
68
32
No
No
32%
Yes
68%
Data Interpretation: From Above data I found that 68% Customer are satisfied with
the service of Om Freight Forwarders and 32% Customer are not satisfied with its
services.
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Frequency
18
10
5
7
6
4
Percentage
36
20
10
14
12
8
Competitive Rate
Timely Delivery
All
Less Transit
Time
12%
All
8%
Clearance of
Goods
36%
Timaly
Delivery14%
Fast
Documentation
20%
Compatative
Rate
10%
Data Interpretation: From above Data I found that 36% customer are satisfied by
Clearance of goods. While 20% are satisfied by the Fast Documentation Process by
Om Freight and 14% Customers are satisfied by Timely Delivery of Goods.12%
Customer are satisfied by Less Transit time taken by Om Freight and 10% are
satisfied by its Competitive Rates, While 8% Customer are satisfied by its All Service
provided by Om Freight Forwarders.
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Basis of Problem
Goods broken in transit
Documentation Problem
Delay in Clearance
other
Frequency
19
11
13
7
Percentage
38
22
26
14
Documentation problem
Other
Other
14%
Goods
broken
38%
Delay 26%
Documentatio
n22%
Data Interpretation: From above data I found that 38% customer of Om freight
facing the problem of Goods Broken in transit. While26% Customer are facing the
problem of Delay in Custom Clearance of Goods and 22% customer are facing
Documentation Problem which takes Long Time and 14% customers are facing the
other kind of problem in Exception Case.
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Custom Procedure
Yes
No
Frequency
37
13
Percentage
74
26
No
No 26%
Yes 74%
Data Interpretation: From above data I Found that 74% Customers are feeling
Custom clearance procedure are easy by Om Freight Service. While 26% Customer
feels its Difficult procedure thats take a long time.
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Question8. Are you satisfied with our Executive & Managers Behaviour?
Satisfied from
Yes
No
Frequency
34
16
Percentage
68
32
No
No 32%
Yes 68%
Data Interpretation: From above data I found that 68% customer is satisfied with
our Executive and Managers Behaviour. While 32% Customer are not satisfied with
the Behaviour of Managers
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Question9. Would you like to change your Freight forwarder & Custom
clearance Agent?
Changes of Agent
Yes
No
Frequency
11
39
Percentage
22
78
No
22%
78%
Data Interpretation: From above data I found that 78% customers of Om Freight do
not want to change his Custom and Freight Forwarder agent, while 22% Customers
want to change it.
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Findings
56% of Customer is Aware about Organization and its Services through Cold
calling by Om Freight executive.
68% Customer are satisfied with the service of Om Freight which is provided
by the company
Customers are faced Problem of Goods Broken in Transit and some How
Documentation Problem.
68% Customers are satisfied with the Executive and Managers Behaviors.
Those Customers who already used our service, most of them do not change
their Custom house Agent and Freight Forwarders service Agent
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Recommendations
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Recommendations
As per my research findings and observation I can recommend certain things which
may be helpful for the Om Freight Forwarders company in Delhi NCR region.
From the above research and from my findings there is some recommendation to
Om Freight Forwarders.
Company has required doing some Other Promotional method for advertising
accept cold calling by Om Freight Executive.
Company have to add some extra services for the customer benefits
32% Customer are not satisfied with all the services provided by Om Freight
Forwarders, so company have required to find the reasons and work on that
and it is benefits for organization
38% of Customer is facing the problem of goods broken in Transit, so
Company Needs to improve their Packaging system and 22% of Customer
are faced Documentation problem that affect the customer so company
should try to make it easier and simpler.
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Conclusion
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Conclusion
Custom Clearance procedures, regulated by recipient Country government
changes over time and can be quite complex. In The custom clearance
procedure the Indian economy has been growing since Liberalization and
globalization of trade policy. But in the globalised world, cost management and
cost reduction has become priority in international trade to achieve competitive
advantage. The present study makes an attempt to analyse the extent of
efficiency of logistics management activities in international cargo.
Sometimes it failures by importers to master local Customs clearance procedures
or custom clearance that are themselves prone to back downs may cause , long
delivery delays , although the custom related imports problem can be somewhat
generalized, the cause of these problem are likely to be specify to a particular
port of entry. Such problem include poor planning and poor communication by
actors in the clearance process,
Rather than thinking of custom delays as a constraint, donor agencies and
government stakeholder need to engage customs authorities and their own third
party contractors in ongoing performance improvement programmes to identify
the problem that can be rightly attributed to the clearance process.
As we have seen, employees who believe their information cares about their
security health and wellbeing are more likely to be loyal in the organization go the
extra mile and stay in their jobs for longer. This can bring huge gains for employer
inthuistics who deliver more effectively through increased the level of service and
properly managed the Organization
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Exploratory research survey take a long time and 45 days not enough for this
study
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Bibliography
http://en.wikipedia.org/
http://www.businessdictionary.com/difination/Custom-clearance.html
howtoexportimport.com/Documents-required-for-import-customs-clearance-159.aspx
http://www.omfreight.com/
Book of Research Methodology
( C.R. Kothari)
(R.Jayaprakash Reddy)
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Questionnaire
Questionnaire
Dear Sir/maam,
Date................
I am a student of MBA 2nd Semester in Quantum School of Business and
currently doing summer internship in Om Freight Forwarders Pvt. Ltd Company and
undertaken a Market survey about Customer Preference Regarding Custom
Clearance service with special Reference to Om Freight Forwarders requesting you
to provide the below given information for completion of my research work.
Name: ..
Designation:
Company Name:
Company Address:
..
Export
Import
Both
2. Are you aware with all the service provided by Om freight forwarders?
Yes
No
3. From where do you know about our organization and its services?
Advertising
References
Cold calling by Om freight executive
Other
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Yes
No
Clearance of Goods
Fast Documentation Process
Competitive Rates
Timely Delivery
Less transit time
Above All
Yes
No
Yes
No
Reason:
9. Would you like to change your Freight Forwarder & Custom Clearance
Agent?
Yes
No
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