SPIT04

SUMMER INTERNSHIP REPORT 2008-10
INSTITUTE OF MANAGEMENT DEVELOPMENT
AND RESEARCH
CENTRE FOR INTERNATIONAL TRADE PUNE
Summer Internship Report
MUMBAI
TIMIR BARAN BHADRA
TIMIR BARAB BHADRA Page 0

TABLE OF CONTENTS

Serial Index Page No.

N
o
.
1 Acknowledgement 3
2 Executive Summary 4
3 Company Profile 5
4 Role of freight forwarder 7
5 Air Import 9
6 Air Export 11
7 Ocean Import 17
8 Ocean Export 21
9 Introduction To CHA 26
10 Sales 28

11 Some Important Terminology 29
12 Conclusion 31

ACKNOWLEDGEMENT
I would like to thank Mr. ROSARIO DCRUZ, for giving me an opportunity to do my summer
internship and to understand the work culture of his organization HELLMANN WORLDWIDE
LOGISTICS INDIA PVT.LTD. And I would like to show my gratitude towards all the employees of
the organization for the help given by them to me in increasing my knowledge and for all kind of
help and co-operation extended towards me during training.

Above all I would like to thank our Director, Mr. AJAY NAGRE and all the faculty members of IMDR
who guided me during my summer internship.
And at last I would like to thanks our PLACECOM team and my class mates for guiding and helping
me.
EXECUTIVE SUMMARY
The summer internship was the first experience about the understanding of international
trade .The PGDIT course in our Institute is designed in such a way that students would get
the necessary theoretical knowledge regarding the International Trade and also get a
practical exposure towards the functioning of a company, which is involved in International
Trade.

To attain the above course objective, we are supposed to undergo a training sessions in the
Industry which is twice during our course. Summer Internships is supposed to be done in the
Service sector of the International Trade industry and Winter Internships with a trader /
manufacturing company.
I got an opportunity to work with Hellmann Worldwide Logistics India Private Limited. My
objective of the Summer Internship was to know the ground realities of Import & Export
procedures. Learning involved the basic principles of documentation, its implementation,
work culture, the dynamic business operations and the internal processes in this field.
Thus, during internship, while working in different departments I was exposed to day-to-day
activities of a business, which includes appropriate communication & follow up with
customers, shipping lines, CHA.
In this Company I underwent many departments to learn the complete procedure, and
documentation involved in the process of import and export. As this Company practices and
undertakes new disciplines and challenges in their business, they have obtained a respectable
position in the Domestic as well as the International market. Now after completing my
Internship, I have got a considerable knowledge about the industry and its Standards.
COMPANY PROFILE
HISTORY
Hellmann Worldwide Logistics is one of the oldest logistics companies of the world. It was founded
in 1871 by Carl Heinrich Hellmann in Osnabruck, northern Germany. The company was started as
a one-man business delivering parcels with a horse-drawn cart.

Carl Heinrich Hellmann
In 1906, the company name was changed to Hellmann Brothers (Gebr. Hellmann) by sons Heinrich
and Friedrich in Osnabruck.
With the completion of hundred years and more in the logistics industry, the company decided to
expand its worldwide network. In 1981, a new branch is opened in Hong Kong. In 1988, a merger /
take over in Great Britain with Mitchell Cotts took place and a new service: Hellmann Process
Management was launched. In 1990, a new service Hellmann Parcel Systems was launched in
Great Britain, in cooperation with British partners. More expansion of partner network in Eastern
Europe took place in 1992.
On July 1st 1999, Gebr. Hellmann changed the name to Hellmann Worldwide Logistics. New
Branches opened in Mauritius, Poland, Turkey, South Korea, Spain, Austria, Sweden, Hungary,
Belarus, Ukraine, Chile and Brazil. Hellmann perishable logistics (HPL) is launched Hellmann joins
Lufthansa AG business partnership program in 2000.Opening of the new warehouse in Shanghai in
2004, with 6.000 square meters storage area and more than 2.000 square meters of office space.
2006 marks the opening of the new Head office of Hellmann Worldwide Logistics Inc in Tokyo and
establishment of Hellmann Worldwide Logistics in Kuwait. Hellmann wins the Award "Global
Logistics Provider (LSP) of the year 2006/2007. Hellmann Worldwide Logistics opened its offices in
India and Pakistan in 2007.
HELLMANN WORLDWIDE LOGISTICS INDIA PVT. LTD.
Hellmann Worldwide Logistics India Pvt. Ltd. opened its offices in India in 2007. Its head office is
located at Gurgoan, Haryana. It has 24 branches in India. The Mumbai branch is located at Saki
Naka, Andheri (East). There are about 50 plus employees. The office comprises of various
departments such as Air Imports/Exports, Ocean Imports/Exports, Custom Brokerage and Accounts

department. It also houses its own warehouse. It is both a Freight forwarder as well as Custom
House Agent, whish is RG Cargo Services. It has recently started its consolidation business on
selected trade routes.
INTRODUCTION OF A FREIGHT FORWARDER (FF)
As the name indicates, the job of Freight Forwarder Company is to work as a middleman
between the exporter and importer for handling the cargo movement.
He arranges the transport to pickup the cargo from exporters warehouse/factory, and after
stuffing the container hands it over to the shipping line, gets the customs clearance done etc.
He also arranges for customs clearance and transports it from the port of discharge to
importers doorstep, as required by the importer.

His real business comes from the consolidation of cargo from various shippers. He collects
LCL (Less than Container Load) from various shippers and makes on FCL (Full Container
Load) to be exported. He makes arrangement of container for both dock as well as factory
stuffing of the container. He appoints transporter to carry it to the CFS (Container Freight
Station) or Exporters factory as required.
Various complexities of customs clearance are taken over by forwarder. He gets the shipping
bill passed from Customs and obtains N.O.C (No objection Certificate) from Customs for
further movement of the cargo. Cargo measurement is one the important responsibility of the
forwarder.
ROLE OF A FREIGHT FORWARDER
The name indicates the job or a forwarder company. The freight forwarder works as a middleman
between the exporter and importer for handling the cargo movement.
He arranges the transport for collecting the cargo from exporters warehouse/factory, then stuffs the
container and hands it over to the shipping line, gets the customs clearance etc. He also arranges
for customs clearance and transport from the port of discharge to importers door step.
His real business comes from the consolidation of cargo from various shippers. He collects LCL
(Less Container Load) from various shippers and makes on FCL (Full Container Load) to be
exported.
He makes arrangement of container for both dock as well as factory stuffing of the container. He
appoints transporters to carry it to the CFS (Container Freight Station) or Exporters factory as
required.
Various complexities of customs clearance are taken over by forwarder. He gets the shipping bill
passed from Customs and obtains NOC (No objection Certificate) from Customs for further
movement of the cargo.
Forwarder books the space on the vessel for cargo loading with some shipping line agent. He pays
freight to agent at an agreed rate, which depends upon the weight and dimensions of the cargo. He
collects the Bill of Lading (Master Bill of Lading) from agent and delivers it to the overseas receiver
of the cargo i.e. consignee mentioned in the MBL.

Forwarder also takes care of cargo while loading it on the vessel so that it does not get damage by
cargo handling party. He appoints his person for supervision on the port / dock where the cargo is
loaded on the vessel.
After receiving the cargo in his custody, forwarder issues/releases his B/L (Bill of Lading) to the
shipper/exporter, which he later sends to the overseas buyer/importer for getting the delivery of
cargo from forwarding agent.
He also arrange for warehousing of the cargo in Customs Bonded Warehouse. For which he pays
the warehouse charges to Customs Department.
ACTIVITIES FOR WHICH THE FREIGHT FORWARDER CHARGES HIS CLIENT:
Agency Fee- Agency fee includes Processing and passing shipping bill, Obtaining
carting order from the shipping company, Arrangement of customs examination,
Preparing bill of lading
Warehousing charges
Transportation- Transportation charges for movement of consignment from factory to
CFS.
THC- Terminal Handling Charges which are payable to shipping company.
Security- if the cargo is hazardous, forwarder needs to post security till the cargo is
stuffed in the container.
Processing of shipping bill under DEEC / DEPB
Labour /Forklift/ Crane for loading and unloading.
Insurance
Service Charge as per the regulations.
AIR IMPORT
DOCUMENTS USED IN AIR IMPORT
1. Master air way bill (MAWB)
2. House air way bill (HAWB)

3. Invoice
4. Packing List
5. Certificate of Origin
6. Delivery Order (D.O.)
7. Cargo Arrival Notice (C.A.N.)
8. Purchase Order
IMPORT PROCEDURE
Flow Chart of Import Procedure

ARRIVAL OF CARGO IN DESPATCH OF CARGO
PORT
TO CUSTOMERS SITE
CARGO IN PORT
FILING OF MANIFEST IN
CUSTOMS PAYMENT OF
TIMIR BARAB BHADRA

IN CUSTOMS Page 11 STORAGE CHARGES
DOCUMENTS FAXING
OR EMAIL FROM
ORIGIN
EXAMINATION OF
CARGO AND OUT OF

RECEIVING OF
INFORMATION / CHARGE BY CUSTOMS
DOCUMENTS FROM
CONSIGNEE
PAYMENT OF DUTY /
FILING OF B/E DUTY EXEMPTION
IN CUSTOMS FORMALITIES
COLLECTION OF D.O. AND

PROCESSING OF
OTHER RELVENT
DOCUMENTS IN CUSTOMS
PERMISSION
AIR EXPORT
GUIDE TO AIR EXPORTS
The exporter must have an IEC (Import Export Code) number issued by DGFT (Director General of Foreign
Trade). He has to file a Shipping Bill, which has to be assessed by Customs, and the goods are also subject
to examination by Customs before LEO (Let Export Order) is given. This document can be filed with
Customs up to 15 days before the goods are actually exported. Like in case of imports, in exports too, the
document for assessment and examination by Customs (Shipping Bill) is processed through the EDI. To
encourage exports, the Government has introduced various export promotion schemes i.e. Drawback,
DEEC, DFRC, DEPB, EPCG, etc. and the exporter has a choice to avail any of them. However, certain
schemes cast an export obligation on the exporter for which he is required to execute Bond and Bank
Guarantee for certain period. Exports are also governed by the Customs Act, 1962, the EXIM Policy and are
subject to prohibitions and restrictions imposed under various other Acts i.e. CITES, NDPS Act, Arms Act,
Antiques Act, Drugs & Cosmetics Act, etc.

PRE SHIPMENT DOCUMENTS FOR AIR EXPORTS
Pre shipment documents are the documents which are required before the shipment of the cargo / container.
The main pre shipment documents are:
1) Invoice
2) Packing List
3) Bank details
4) IEC copy
5) S.D.F.Form
6) Letter of Credit
7) Form N
INVOICE
An invoice is a document which contains the detailed description of the goods consigned, order of
acceptance or contract no., name of the airline, Airway Bill No., country of origin, marks and number, number
of packages, special marks (if any), quantity shipped, selling price, terms of payment (COD, DD at sight
etc.), terms of delivery FOB, C&F, CIF etc.), amount of freight and insurance (if applicable) etc. It is a good
evidence of the contract of sale and purchase. 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
A packing list contains the date of packing, connecting invoice number, order number, details of shipping
such as the name of steamer, bill of lading number and date of sailing, case number to which the list relates,
the details of goods such as quantity and weight and item wise details.
SDF FORM
As per the exchange control regulations, exporters are required to submit declaration. 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.

BANK DETAILS
The bank details consist of the shippers banks name, account number, IEC number and authorized dealer
code.
IEC number copy
The exporter should produce importer exporter code number copy.
LETTER OF CREDIT
Letter of credit is a document issued by the importers bank in favour of the exporter giving him the authority
to draw bills up to a particular amount covering a specified shipment of goods and services and assuring him
of payment against the delivery of shipping documents. The operations of letters of credit have been
regulated and are governed by the articles of uniform customs and practice for documentary credits
FORM N
An export consignment can be exempted from Octroi duty provided that N-Form (in duplicate) is submitted
along with the EP copy of the shipping bill with the concerned octroi check post. This procedure pre-
supposes that shipping bill is got processed well in advance of shipment data or before moving the goods to
the Mumbai.
CUSTOM CLEARNCE
All this documents are then forwarded to the customs for approval. Once the documents are approved a
checklist is issued by the customs and shipping bill is issued. The goods are then deposited in customs
warehouse for inspection.
PREPARATION OF OTHER RELEVANT DOCUMENTS AND BOOKING SPACE IN AIRLINE

When all the pre-shipment documents are ready, the freight forwarder books the space in the airline and
other relevant documents are prepared by the CHA for custom clearance.
These documents are:
AIRWAY BILL
After getting confirmation from the exporter the next step was booking space with the airline. Then
preparation of Airway bill takes place. Before deciding the airline the freight forwarders go through the
schedule of the delivery, which is given by the client. Then the suitability of the freight rate, security etc. gets
considered.
The receipt issued by an airline or its agent for the carriage of goods is called airway bill or air consignment
note. It is not issued in a negotiable form. It is the most important cargo document issued by a carrier or its
authorized cargo agents.
EXPORT GENERAL MANIFEST

The EGM number is given by the customs to a particular flight of an airline that is carrying the cargo so as to
put the details on one particular flight under one number. The number is given serial wise.
EDI DOCUMENTATION
After preparation of the all relevant documents it goes for EDI documentation. EDI stands for Electronic Data
Interchange. According to the documents submitted by the CHA the necessary entries take place in the
books of govt. maintained through EDI system. For EDI documentation Business Identification Number (BIN
NO.) is must. The current rate of EDI documentation charge is as follows:
CHECK LIST FOR AMENDMENT AND MODIFICATION
After preparation of documents in EDI system we get the checklist for amendment and/ or modification. We
match the checklist with invoice and other relevant documents. The customs gives us many chances for
amendment and modification. After noting there is lengthy process for it.
NOTING

After checklist for amendment / modification Noting is done. Noting is nothing but taking of the shipping bill
number. After noting if some one wants to make amendment then one must go through the long procedure
for amendment and modification. Such kind of procedure needs approval of various custom officers.
CARTING
Before entrance of cargo inside the custom warehouse the CHA inform the concerned airline. They
maintain a carting register and keep record of the nature of cargo, no. of packages, airway bill no,
etc. After that they attest the carting copy of the airway bill.
GATE PASS
After Carting we submit the carting copy of the airway bill to the airport authority and collect the gate pass.
Carting copy of airway bill is necessary for gate pass.
ENTRY OF CARGO TO CUSTOMS WAREHOUSE

After getting gate pass the cargo goes inside the custom warehouse. We give one copy of gate pass to the
security on the entrance of warehouse and make entry on the register over there. The custom staff checks /
matches the marks & numbers, number of package with the documents and sign on the annexure-c, a
declaration for exports by air.
REGISTRATION
After entry of the cargo into customs warehouse, we submit the documents for registration. In EDI system
registration is the proof of arrival of the cargo inside the customs warehouse. Then through system we get
the customs examiners name and the carton / package number for examination. This is done at randomly.
EXAMINATION
After getting the name of the examiner and carton / package number we go to the examiner and he/she
examines the cargo. The examiner examines the cargo according to the documents. Otherwise it will be
subject to further investigation.

EXAMINATION REPORT
The examiner types the examination report after the examination. In the report he/she declares that the
cargo is according to the invoice, packing list and other documents. It is very important for clearance.
LEO
Let Export Order (LEO) is given by the custom superintendent, who passes the documents on the basis of
examination report. Without it the export cant be done. After the Let Export Order only the shipping bill gets
printed. It is nothing but permission to export.
PRINTED EDI SHIPPING BILL AND ATTESTATION

After examination and LEO the print out of shipping bill and examination report come and checked by the
CHA. If any mistake is still there then the custom superintendent can amend it on the spot though EDI
system. And a fresh shipping bill and examination report will be printed out. After getting the print out of the
shipping bill and examination report the CHA takes the signatures of the custom examiner and the LEO
officer. The signature must be with the stamp of the officer.
Flow chart of Air Exports

FF RETURNS DOCUMENTS
FF RECEIVES
TO CUSTOM AND
DOCUMENTS
EXPORTER
FF SENDS PRE ALERT TO

SHIPPING BILL IS
MADE AS PER
THE OVERSEAS AGENT .
SCHEME CHOSEN
FF SUBMITS THE POST

FF FILES SHIPPING SHIPMENT DOCUMENT
BILL THROUGH EDI. TO THE SHIPPER
CHECK LIST OF CARGO MOVES ON BOARD OF

SHIPPING BILL IS AIRCRAFT AND FLIGHT
TIMIR BARAB BHADRA
GENERATED AND Page 17
CAPTAIN ENDORSES
CHECKED DUPLICATE AND TRIPLICATE
S/B
MEANWHILE SIX COPIES OF

AGENT BOOKS SPACE SHIPPING BILLS ARE GIVEN
IN AIRLINES AND BY CUSTOM.
AIRWAY BILL IS MADE
GOODS ARE AIRLINES FILE EGM BEFORE

BROUGHT TO FLIGHT ARRIVES
AGENTS
WAREHOUSE
CARGO IS LABELED. CUSTOM EXAMINATION OF

AND CARTING IS GOODS IS DONE
TAKEN
OCEAN IMPORT
IMPORTANT DOCUMENTS FOR IMPORT:
Bill of Entry (B/E)

Invoice and Packing List
Import License
Country of Origin Certificates
Insurance policy
Bill of lading (B/L
BILL OF ENTRY: MOST IMPORTANT DOCUMENT FOR IMPORTS

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.

The Bill of Entry is the document on the strength of which clearance of imported goods can be
affected. The Central Board of Excise and Customs have standardized the form of the Bill of Entry.
Now Importers CHA through ICE GATE submits Bill of Entry & gets it Noted.
Types of Bill of Entry:
1. Goods Entered for Home Consumption Bill of Entry. (Form No. 22)
2. Goods entered for warehousing In-Bond Bill of Entry. (Form No. 23)
3. Goods cleared for EX-Bond Bill of Entry.( Form No. 24)
SEA IMPORT PROCEDURE CAN BE DESCRIBED AS FOLLOWS:
Receipt of Pre- alert

Receipt Advance set of documents
Documents will be verified / checked in detail (B/L, Invoice, Packing List) for classifying the
item under correct custom tariff heading
The documents will be filed with customs under Advance Bill of entry via EDI system
A checklist will be prepared and sent to customer via email for necessary verification &
approval
On receipt of approval from customer, the bill of entry will be filed through ICEGATE
(Customs EDI System) under the speedy assessment.
The bill of entry will be then assessed by the customs appraiser & will be forwarded to the
audit appraiser who will then send it to Dy. Commissioner of customs for necessary
approval.
On the approval by the Dy. Commissioner, the B/E print will be received with the customs
examination order and duty Payment Challan.
On payment of Duty, the delivery Order will be collected from the shipping Line
Physical Arrival of shipment at the port
Along with the examination order & delivery order, the shipment will be examined by the
D.A.O. (Docks Appraising Officer)

After examination, Out of Charge will be issued by the D.A.O.
Permission for placing the trailers directly at the port will be obtained from the CFS yard
authorities after making the necessary payments
Trailers will be placed at the port, and the shipment loaded on to the trailer.
Flow Chart Sea Imports
RECEIVE INFO.
FROM
ORIGIN/CUSTOMER
RECEIVING OF
DOCUMENTS/CONF
ORMATION OF
CHARGES
SCRUTINISE DOCS. FILE BILL OF ENTRY IN

/FEEDBACK CUSTOM
FORWARD DOCS. TO PROCESSING IN CUSTOMS

S/LINE TO FILE MANIFEST
ISSUE CARGO ARRIVAL
TIMIR NOTICE
BARAB BHADRA Page 20
FORWARD DOCS.
(B/E)
BILL TO
FOLLOW UP WITH S/LINE
FOR VESSEL ARRIVAL
CLEAR GOODS AND
DETAILS
FORWARD TO
INTIMATE CUSTOMER CUSTOMER
VESSEL ARRIVAL DETAILS. EXAMINE GOODS AND

PAY PORT DUES
CALL FOR DUTY AND

OTHER CHARGES
PAYING CUSTOM
RECEIVE FUNDS
VESSEL BERTHED DUTY/COMPLETE BILL
OF ENTRY
LIST OF DOCUMENTS REQUIRED -
Master Bill Of Lading

House Bill Of Lading
Shippers Invoice Copy
Packing List
Certificate of Origins
Ameta Satement

OCEAN EXPORTS
Sea Exports
After getting order from the importer the exporter start preparation for the delivery within the
specified period on agreed terms and conditions. He manufactures goods and using ARE-1 form
brings goods out of factory for the purpose of export.
Exporter contacts CHA for custom clearance and gives pre-shipment documents like invoice,
packing list, certificate of inspection, SDF form, contract copy, L\C, etc. CHA starts preparation of
shipping bill depending on Export promotion scheme opted.
Then CHA files shipping bill and gets checklist. He then checks it and gets S/B number by ICE
Gate. Check list is endorsed by shipping line for carting. Then CHA arranges for custom clearance
of goods and gets copies of S/B.

The forwarding agent arranges for stuffing of container and container no., vessel no. is obtained.
Carrier files EGM and containers are loaded on to the ship. Captain of the carrier gives mates
receipt. Agent sends B/L instructions to Shipping Company and B/L no. is obtained. At the same
time three original and thirteen or fifteen (as per requirement) B/Ls are produced.
Then Ship sails for its destination. Exporter gets EP (Export Promotion) copy after one month.
IMPORTANT DOCUMENTS FOR EXPORT:
Shipping Bill. (S/B)
GR Form/SDF Form
Bill of Lading (B/L)
Invoice.
Packing List.
ARE-1 Form & N Form.
Certificate of Origin/GSP Certificate.
Inspection Certificate (if required)
Purchase order.
L/C (if any)
Insurance Declaration (if any)
CHECK LIST FOR AMENDMENT AND MODIFICATION
After preparation of documents in EDI system we get the checklist for amendment and/ or
modification. We match the checklist with invoice and other relevant documents. The customs gives
us many chances for amendment and modification.

NOTING
After checklist for amendment / modification Noting is done. Noting is nothing but taking of the
shipping bill number. After Noting if some one wants to make amendment then one must go
through the long procedure for amendment and modification. Such kind of procedure needs
approval of various custom officers.
CARTING
Before entrance of cargo inside the custom warehouse the CHA inform the concerned airline. They
maintain a carting register and keep record of the nature of cargo, no. of packages, airway bill no,
etc. After that they attest the carting copy of the airway bill.
ENTRY OF CARGO TO CUSTOMS WAREHOUSE
After getting gate pass the cargo goes inside the custom warehouse. We give one copy of gate
pass to the security on the entrance of warehouse and make entry on the register over there. The
custom staff checks / matches the marks & numbers , number of package with the documents and
sign on the annexure-c, a declaration for exports by air.
REGISTRATION:
After entry of the cargo into customs warehouse, we submit the documents for registration. In EDI
system registration is the proof of arrival of the cargo inside the customs warehouse. Then through
system we get the customs examiners name and the carton / package number for examination.
This is done at randomly.
EXAMINATION

After getting the name of the examiner and carton / package number we go to the examiner and
he/she examines the cargo. The examiner examines the cargo according to the documents.
Otherwise it will be subject to further investigation.
EXAMINATION REPORT
The examiner types the examination report after the examination. In the report he/she declares that
the cargo is according to the invoice, packing list and other documents. It is very important for
clearance.
LEO
Let Export Order (LEO) is given by the custom superintendent, who passes the documents on the
basis of examination report. Without it the export cant be done. After the Let Export Order only the
shipping bill gets printed. It is nothing but permission to export.
PRINTED EDI SHIPPING BILL AND ATTESTATION
After examination and LEO the print out of shipping bill and examination report come and checked
by the CHA. If any mistake is still there then the custom superintendent can amend it on the spot
though EDI system. And a fresh shipping bill and examination report will be printed out. After getting
the print out of the shipping bill and examination report the CHA takes the signatures of the custom
examiner and the LEO officer. The signature must be with the stamp of the officer.

Flow Chart Export
(DOCK STUFFED CONTAINER)
Receipt of Documents Passing of Documents

through Customs.EDI System
(Invoice, packing list,
(ICE GATE)
GR Form/SDF Form)
Send Message from Obtaining Carting From

Cargo dispatch BPT/CFS and shipping
agent
Cargo receipt at Naka Carting of cargo inside

& N form formalities Port/CFS
Physical examination of
Measurement of Cargo by
Cargo by Customs
Authorized Body
inspector

Cargo out of Customs Stuffing into container

charge
Mates receipt issued,

Vessel sailing and B/L Container movement
issued alongside vessel
EP/AR4 passing after

vessel leaves Indian
Territory
INTRODUCTION TO CUSTOM HOUSE AGENT (CHA)
CHA is a person or company who is licensed to act as agent for transaction of any business relating to
the entry or departure of conveyance or the import or export of goods at any customs station.
SERVICES PROVIDED BY CHA:

Preparing the customs entry form and assuring that all the necessary documents are in order
for proper processing through customs channels.
Calculating the amount of duty according to Tariff Act.
Arranging for the goods to be transferred under bond from the port of entry to an interior
destination for customs clearance.
Obtaining special permits for immediate delivery of perishable goods.
necessary requesting extension of the general order time from the collector of customs.
Providing the surety bond required by the customs Authority, which guarantees full payment of
all duties.
Preparing the warehousing entry bond and arranging for goods to be transferred to the
bonded warehouse.
Arranging for the withdrawal of goods from the bonded warehouse in part or completely.
Payment of duties will be made accordingly to the quantity of goods withdrawn.

ROLE OF CUSTOM HOUSE AGENT:
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, and ports like
Mumbai, Chennai, Calcutta, Kandla, etc. Trade, no doubt is also through minor ports all among the
coast. The importers who consume the goods imported 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 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. In fact such institutions have been in
existence almost from the beginning of the trade.
Unlike the work related to Central Excise and Income Tax, the customs facilities can not be attended to
leisurely, as clearance is allowed only on completion of formalities and payment of duty, where due. To
meet this situation alone this provision for licensing Custom House Agents to represent
importer/exporter for clearance work has been made in the Custom Act (under sec. 146)
A Custom House Agent has to be not only knowledgeable in Customs Laws, procedure and
documentation, but also has to be alert all the time, closely following the instructions or changes
brought about by issue of Public Notices from time to time. He is in a peculiar position in that though he
is employed by importers /exporters, he is licensed by the Customs dept. The Customs House Agent is
answerable both to the Customs dept. for doing the clearance correctly and expeditiously. In case he
defaults, the clearance may be delayed and demurrage etc. incurred. His knowledge and experience
particularly in the areas of classification and valuation of goods and more so in procedural formalities to
be compiled with, in Custom big role to play in the clearance of goods through customs.

SALES
Working with sales was an altogether different experience for me. A lot of hard work and patience is
required to be a star performer in sales department. A lot of knowledge regarding trade routes and
price rates is also needed to be a success in sales. The main key while making a sales call to an
existing customer or developing a new customer is making the prospective customer speak and
trying to find out the flaws in the existing business relationship. They also act as an intermediary
between Customers and operations department of the organization.
Some questions which is to be asked..
Where do you import from?

By Air only or Ocean too
Terms of the shipment, i.e. FOB or Ex-works etc
If Ex-works, then shippers address with ZIP Code is MUST
Av. Weight of the shipments per month and average no. of shipment per month
Any other countries they import from?
Who is the existing service provider to their organization?
Any constraint he/she is facing from the existing service provider
Is the customer looking for Prime or deferred services.
Is the customer getting Pre-Alerts /Intimation of the shipments timely?
Talk about our back office, which is strong and try to add value added services
Ask if he has other product, like OI or AE or OE.
Whom is he using for customers Clearances? This is only for AI and OI.

Any constraint he is facing from the existing CHA.

Try to get the rates he is enjoying from his existing service providerDo not say I
will quote BETTER rates than competition. Do not quote UP-FRONT if our rates
are better unless you are confident to close the business than there. Take
sometimes to evaluate the customer need and then quote.
Always take down notes, whenever customer is talking and suggest if you take his
permission before the same.cause he will keep talking and you will only note
down which will irritate him.
Be a good listener and talk less and speak specifics related to his industry only,
unless he deviates.
Say you would like to visit along with the Activity Head on your next call to him/her,
so that he feels the importance given to his business.
SOME IMPORTANT TERMINOLOGY

Packing list:
This is a document giving information such as the number of packages, contents of each package,
quantity of each package, case dimensions, gross weight and net weight of each package apart
from case identification marks
Certificate of origin: Chambers of Commerce stating that the goods being exported are originated
in a particular country issues this certificate. For example- if the goods are manufactured in India,
then the Certificate is issued stating that the goods exported are of Indian origin. G.S.P. Certificate:
The East European countries comprising France, Germany, Belgium, Luxembourg, Netherlands,
Italy, Denmark and Greece have adopted the Generalized System of Preferences. Under this
system, manufacturers and semi manufacturers from developing countries including India are
entitled to a concessional rate of import duty in these countries.
Form - N / Form - C: An export consignment can be exempted from Octroi duty provided
that N-Form (in duplicate) is submitted along with the EP copy of the shipping bill to the
concerned Octroi check post. Where the Octroi duty has been paid and its refund is to be
claimed, the exporter should fill in Form-C (Octroi purpose) in duplicate and register it with
the Octroi office inside the Sahara Cargo Complex.
A.R.E1 Form: All excisable goods are subject to payment of Central Excise Duty, as per
central excise tariff. For clearance of excisable goods, ARE-1 form should be filled and

signed by the exporter. It is prepared in Quintuplicate giving all the particulars and
declarations like number, gross weight, net weight marks and description of packages,
quantity of goods, description of goods, value, excise duty, invoice number and date, port
of discharge etc. The different copies are of following colors. These copies are sent to
different customs and central excise authorities as required by them.
White Original
Buff Duplicate
Pink Triplicate
Green Quadruplicate
Blue Quintuplicate
Terminal Handling Charges (THC): This is the amount charged by the Port Trust authority for
movement of the container from the agents nominated site to the vessel site. Also it covers port-
handling charges depending upon cargo (LCL/FCL), type (Export/Import), dock stuffed or factory
stuffed, hazardous or non hazardous, either weight or volume cargo.
Carting: Before entrance of cargo inside the custom warehouse the CHA inform the concerned
airline. They maintain a carting register and keep record of the nature of cargo, no. of packages,
airway bill no, etc. After that they attest the carting copy of the airway bill.
Gate pass: After Carting we submit the carting copy of the airway bill to the airport authority and
collect the gate pass. Carting copy of airway bill is necessary for gate pass.
Examination: After getting the name of the examiner and carton / package number we go to the
examiner and he/she examines the cargo. The examiner examines the cargo according to the
documents. Otherwise it will be subject to further investigation.
LEO: Let Export Order (LEO) is given by the custom superintendent, who passes the documents
on the basis of examination report. Without it the export cant be done
. After the Let Export Order only the shipping bill gets printed. It is nothing but permission to export

CONCLUSION
I feel working with Hellmann Worldwide Logistics India Pvt. Ltd. has taught me the importance of
time and coordination in the field of International Trade.
Working in different departments has made me understand how different processes are internally
connected and each cannot function independently. Every department holds its own importance.
Being in different departments and working with people at different level has also helped me to
understand the way of making communication and carrying out activities in an organization.
Summer Internship was my first step in the corporate world of International Business and I realized
to work in the service organization one should be very well aware of the changing rules and
regulations of the industry and trade policies.
After completing the internship, I can say that the practical experience along with the theory
covered during the first year of our course will prove beneficial in the future.
To conclude would say that this summer training was a unique experience where I got an insight
into the supporting activities performed by service organizations and the part it plays in the
operations of international trade. .

SPIT04

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SUMMER INTERNSHIP REPORT 2008-10

INSTITUTE OF MANAGEMENT DEVELOPMENT

CENTRE FOR INTERNATIONAL TRADE PUNE

Summer Internship Report

TIMIR BARAN BHADRA

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Serial Index Page No.

4 Role of freight forwarder 7

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11 Some Important Terminology 29

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Carl Heinrich Hellmann

HELLMANN WORLDWIDE LOGISTICS INDIA PVT. LTD.

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INTRODUCTION OF A FREIGHT FORWARDER (FF)

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ROLE OF A FREIGHT FORWARDER

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ACTIVITIES FOR WHICH THE FREIGHT FORWARDER CHARGES HIS CLIENT:

DOCUMENTS USED IN AIR IMPORT

1. Master air way bill (MAWB)

2. House air way bill (HAWB)

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6. Delivery Order (D.O.)

7. Cargo Arrival Notice (C.A.N.)

Flow Chart of Import Procedure

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CARGO AND OUT OF

FILING OF B/E DUTY EXEMPTION

COLLECTION OF D.O. AND

GUIDE TO AIR EXPORTS

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PRE SHIPMENT DOCUMENTS FOR AIR EXPORTS

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IEC number copy

The exporter should produce importer exporter code number copy.

PREPARATION OF OTHER RELEVANT DOCUMENTS AND BOOKING SPACE IN AIRLINE

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These documents are:

EXPORT GENERAL MANIFEST

CHECK LIST FOR AMENDMENT AND MODIFICATION

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ENTRY OF CARGO TO CUSTOMS WAREHOUSE

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PRINTED EDI SHIPPING BILL AND ATTESTATION

Flow chart of Air Exports

FF SENDS PRE ALERT TO

FF SUBMITS THE POST

CHECK LIST OF CARGO MOVES ON BOARD OF

MEANWHILE SIX COPIES OF

GOODS ARE AIRLINES FILE EGM BEFORE

CARGO IS LABELED. CUSTOM EXAMINATION OF

IMPORTANT DOCUMENTS FOR IMPORT:

Bill of Entry (B/E)

BILL OF ENTRY: MOST IMPORTANT DOCUMENT FOR IMPORTS

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Types of Bill of Entry:

3. Goods cleared for EX-Bond Bill of Entry.( Form No. 24)

SEA IMPORT PROCEDURE CAN BE DESCRIBED AS FOLLOWS:

Receipt of Pre- alert