INTRODUCTION

The term “logistics” originates from the ancient Greek word “logos”. Logistics is
considered to have originated in the military’s need to supply themselves with
arms, ammunition and rations as they moved from their base to forward position.

In the words of a layman, logistics can be defined as having the right type of
product or services at the right place, at the right time, for a right price and in the
right condition. Logistics has evolved as a common and well known business
concept because of the ever increasing complexities of modern day business.

The primary goal of logistics is to effectively manage the protect life cycles and
resultant efficiency. This has greatly evolved with a logistics manager’s role in
efficiently designing the products of the company keeping in view the principle
of efficient system of supply chain management.

The logistics management takes into consideration every facility that has an impact
on cost. It plays an important role in making the product conform to customer
requirements. Also it involves efficient integration of suppliers, manufacturers,
warehouses and stores and encompasses the firms’ activities at many levels; from
the strategic level through the tactical to the operational level. Logistics is a
challenging and important activity because it serves as an integrating or boundary
spanning function. It links suppliers with customers and it integrates functional
entities across a company. With the ever-growing competition in today’s market
place it becomes necessary for a firm to use its resources to focus on strategic
opportunities. This includes several internal factors like management style, culture,
human resources, facilities and several external factors like technology,
globalization and competition. This is where the concept of logistics plays a major
role, i.e. it helps to leverage certain advantages the firm has in the marketplace.

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Factors affecting logistics are:

External:

 Globalization
 Technology
 Workforce 2000
 challenging nature of the work force
 Environmental concerns

Internal:

 Customer service and quality

 Third party networks
 Supply chain management
 Changes in management and organization style.

Steps to be followed to mitigate the above mentioned factors

Performance:

 Better service for customers

 Improved productivity
 Assess just in time and quick response needs

System structure:

 Better relationship with vendors, customers and third parties to more

effectively manage the supply chain
 Better relationship within and across the organization

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Technology integration:

Better information systems that connect functions and organizations combine

information and material handling systems for increased efficiency and
effectiveness.

 Logistics does not mean a single work activity but refers to a group of
activities performed to attain the goal of a business enterprise that is maximizing
the profits. This may involve steps like purchasing, planning, coordination,
transportation, warehousing, distribution and customer service. Business can run
without Profits, but it need money to fund its services, pay its employees and grow 
Its customer base. Logistics play an important part in the present business world
Logistics is a mixture of several professional disciplines, such as 

o Planning
o Controlling
o Directing
o Coordination
o Forecasting
o warehousing
o Transportation
o Facility location
o Inventory Management

The growth in telecommunication and transportation technologies has led to

further growth of the supply chain. The supply chain, also known as the logistics
network, consists of suppliers, manufacturing centers, warehouses, distribution
centers and retail outlets, as well as raw materials, work-in-process inventory and
finished products that flow between the facilities.
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TRANSPORTATION:

There are a number of different modes of transportation in the logistics industry,

each having its own merits and disadvantages. From road, railway, marine, and air
transportation, the method that you select depends on a few factors. For example,
industries that need to transport heavy products opt for railway transportation along
with road and Maritime transportation. These methods have the ability to
accommodate heavier products, making them the ideal choice over air
transportation.

The Importance of Transportation concerns the movement of products from a

source—such as a plant, factory, or work-shop to a destination such as a
warehouse, customer, or retail store. Transportation may take place via air, water,
rail, road, pipeline, or cable routes, using planes, boats, trains, trucks. The goal for
any business owner is to minimize transportation costs while also meeting demand
for products. Transportation costs generally depend upon the distance between the
source and the destination, the means of transportation chosen, and the size and
quantity of the product to be shipped. In many cases, there are several sources and
many destinations for the same product, which adds a significant level of
complexity to the problem of minimizing transportation costs.

Cargo handling is done through four means of transport:

 Roadways
 Waterways
 Railways
 Airways

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ROADWAYS:

Cargo can’t be handled in every part of the country through railway. Roadways
play a major role in handling cargo even in small town. Roadways transportation is
done through Lorries/Trucks.

A very popular mode of transport used by suppliers and businesses to deliver

orders. Many transport companies provide scheduled delivery days and next day
delivery services, depending upon your needs. Goods can be packed/grouped inbox
vans or in containers which are also used for sea transportation. Cost effective
Transport subject to traffic delays.

Fast delivery Transport subject to breakdown. Ideal for short distances, national
Goods susceptible to damage or mainland Europe through careless driving. Ideal
for transporting perishables Bad weather (e.g. fruit and vegetables) Driving
regulations can cause delays. Easy to monitor location of goods. Easy to
communicate with driver. Ideal for sending by courier shortages to customers.

WATERWAYS:

A waterway is the cheapest means of transportation. Large volume of world trade

is done through ships. Ships handle cargo from one country to other through sea.

Sea transportation is used by businesses for the delivery of goods from distant
suppliers. Most sea transportation is conducted in containers which vary in size.
Goods can be grouped into a container

Sea tankers are used for bulk shipments of loose goods such as oil, grain and coal.
Ideal for transporting heavy and longer delivery times

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RAILWAYS:

Railway plays a major role in cargo handling. Railway handles cargo from sea port
to various part of the country. Railways have special wagons to carry the cargo.
Through Railway large volume of cargo can be handled in a short period of time.

Rail Businesses use rail transportation for the delivery of a wide range of goods
including post, coal, steel and other heavy goods. Fast delivery Subject to
unforeseen delays. Capacity Reliance on rail freight operators, cost effective
timetable, Safe mode of transport.

AIRWAYS:

An airway is the fastest but costliest means of transport. Through this means of
transportation only valuable goods having less volume can be transported.

Transportation is an important link of the logistics system. Vehicles must have a

number of necessary properties and satisfy certain requirements in order to create
innovative systems for the collection and distribution of goods. Transport is a
branch of material production, transporting people and goods. Each of the modes
of transport has specific characteristics in terms of logistics management, strengths
and weaknesses, determine the possibilities of its use in the logistics system.

Air freighting is commonly used by businesses for the delivery of goods from
distant suppliers. This mode of transport is useful to deliver products with short
lead times, fragile goods and products that are not bulky. Products in high demand
and in short supply may also be air freighted in order to meet customer demands.
The bulk/value ratio will be a determining factor. Flight delays and/or
cancellations. Fast delivery, usually between 24 and 48 hours Customs and Excise

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restrictions. Customer is not kept waiting for Cost order fulfillment. Reduced lead
time on supplier.

LOGISTICS VS SUPPLY CHAIN MANAGEMENT:

Supply chain management is a way to link major business processes within and
across companies into a high-performance business model that drives competitive
advantage.

Logistics refers to the movement, storage, and flow of goods, services and

information inside and outside the organization.

The main focus of supply chain is a competitive advantage, while the main focus
of logistics is meeting customer requirements.

Logistics is a term that has been around for a long time, emerging from its military
roots, while supply chain management is a relatively new term.

Logistics is an activity within the supply chain.

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INDUSTRY PROFILE

SHIPPING LOGISTICS:

There is a growing need to manage shipping logistics.  With increased competition

in the field of shipping, shipping logistics management grew to become essential.
Shipping logistics management involves resource planning, organization,
management of trailers across the carrier's offices, execution, and control of the
transportation of your shipped items. It is well known that the idea of logistics
began in the military.  It was used in operating supplying the military with arms,
ammunition, and andrations.

Logistics management is a part of the supply chain management that governs the
business of shipping freight with its vital needs.  It also ensures the suitable
implementation and control of the business of shipping freight that will provide the
most efficient and effective results.

Shipping logistics management is faced with a big challenge to develop solutions

for various shipping needs, varying from labor to fossil fuels.  This challenge
extends to solving the problems of increased labor and fuel costs due to growth in
freight transportation and consequently the increased demand of labor and fossil
fuels. Also, shipping logistics management includes finding solutions for the
negative environmental impact of increased consumption of fossil fuels. It is also
concerned with safety and security of the transported items.  Shipping logistics
management extends to the management of fleets of vehicles used in the shipping
process.  By using Global Positioning System (GPS) vehicle tracking systems it is
easy to increase the productivity of the fleets and decrease fuel consumption. 
Shipping logistics management can be automated to improve efficiency and

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effectiveness.  Typically, automation of shipping logistics management also
includes automation of warehouses. Examples of warehouse automation include
automated cranes, automated conveyors, sorting systems, and robots.  The
application of bar codes or tags is a type of automation for logistics management
too as it uses different types of software to control warehousing.
Automation can extend to software, scheduling of containers to freight trains, and
an information management system for the whole shipping company.  This
software would be used for controlling customer inquiries, booking orders to ship,
managing sales, accounting, and personnel. Software can control the work process
and increase productivity and efficiency of the company's systems.
Outsourcing is becoming more popular.  Logistics systems providers are increasing
rapidly and the logistics industry is in greater demand by many sectors, mainly
industrial, shipping and transportation.  Carriers do not have to handle both
shipping and logistics management, but can outsource logistics management to a
logistics service provider.

TYPES OF VESSEL:

DRY CARGO SHIPS: 

Historically, dry cargo vessels were the mainstay of the world's merchant fleet.
Known as general cargo vessels, they would be "geared", that is equipped with
their own cargo loading equipment, usually in the form of derricks. The cargo
would be stowed in different holds and the speed and effectiveness of the
loading/unloading process would depend on the skill of the ship's crew and the port
workers or "Stevedores". Such ships would sometimes operate a regular service
between two or more ports as "liners", but could also operate in the "tramp trade"
where vessels would go wherever they were required.

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BULK CARRIERS:

For dry cargoes with a high weight to cost ratio such as coal, grain and ore,
economies of scale have produced the modern bulk carrier. These usually large
vessels are divided up into several separate holds covered by hatches. In port,
cargo is loaded by conveyor and spouts or by crane and grab. Some bulk carriers
are geared (usually a crane is located between each hatch) to allow the loading and
unloading of cargo at berths without the need for shore equipment.

For unloading, cranes with grabs are the norm although specialized equipment
may be used for certain cargoes. When vessels unload using cranes and grabs,
personnel and vehicles will often be placed inside the holds to assist the process.
Cargo will usually be unloaded into hoppers and will then be transferred by
conveyor to silos or open storage; smaller vessels may discharge directly into road
vehicles.

GENERAL CARGO VESSEL:

Although largely replace by bulk and container carriers, general cargo vessels still
operate throughout the world. Cargo is usually in the form of pallets or bags and is
known as break bulk. There may be specialized handling facilities for such cargo,
but usually loading and unloading is carried out using cranes and straps (for boxes)
or slings (for bags). Loose or irregular cargo is also carried, in this case the vessel's
crew and port stevedores will pack the cargo to minimize damage and maximize
the utilization of space.

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CONTAINER VESSEL:

Containers have become the main way of transporting manufactured goods around
the world. A container can be transferred between truck, train and ship relatively
easily and is a standard size to simplify transportation. Containers can
accommodate anything from foodstuffs to electrical equipment to automobiles.
Containers are also used to transport bagged and palletised goods, liquids and
refrigerated cargo.

Standard containers are measured as TEUs (Twenty-foot Equivalent Units) and

are generally 20 feet (1 TEU) or 40 feet (2 TEUs) long. All standard shipping
containers are 8 feet wide and 8 feet 6 inches tall. There are also longer, taller and
even shorter standard sizes, but these are less common. Container ships are made
up of several holds, each equipped with "cell guides" which allow the containers to
slot into place. Once the first layers of containers have been loaded and the hatches
closed, extra layers are loaded on top of the hatches. Each container is then lashed
to the vessel but also to each other to provide integrity. Containers are usually
loaded by specialized cranes or even general purpose cranes with container lifting
attachments but some small container vessels are geared to allow self-
loading/discharging.

Container vessels are used predominantly on liner routes and are some of the
biggest vessels afloat. Ultra Large Container Vessels (ULCVs) such as the Emma
Maersk (lead ship of the Maersk E-Class vessels) are able to carry approximately
15,000 TEU (depending on container weight). Large container vessels are
restricted by their size to certain ports around the world and are also unable to
transit certain areas due to draft or, in the case of canals beam, restrictions.

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REEFER VESSEL:

Ships designed to carry a refrigerated cargo usually comprising perishable goods

such as fruit or meats are known as "Reefer Vessels". Cargo is stowed in holds
which are then sealed and temperature controlled. Traditional reefer vessels have
been largely replaced by the use of reefer containers which may be carried on
board a container vessel. Reefer containers only need a power source to function
although they are usually loaded to allow the crew to inspect them during the
voyage.

ROLL ON & ROLL OFF VESSEL:

This vessel comes in many forms including vehicle ferries and cargo ships carrying
trucks but the major types used for the transport of road vehicle is the car carrier.
These slab-sided vessels features multiple vehicle decks comprising parking lanes,
linked by internal lamps with access to shore provided by one or more loading
ramp. Cargo capacity of such vessel is measured in Car Equivalent Unit (CEU) and
the largest carriers afloat have a capacity of over 6,000 CEU.

LIQUID CARGO SHIPS:

These vessels, collectively known as tankers, carry a range of liquid cargoes.

Tankers were first developed in the mid nineteenth century when the use of iron
allowed liquids to be carried in bulk economically and without leakage. Like the
case of the bulk carrier, economies of scale have driven up the size of tankers and
today the largest examples have a carrying capacity or "deadweight" of over
400,000 tons. Tankers are divided into separate tanks into which the cargo is
pumped via a pipeline system.

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Modern tankers have large and segregated ballast tanks to allow them to sit lower
in the water on the return 'empty' journey to improve stability. Many tankers also
feature systems to add an inert gas to the tanks to reduce the risk of fire and
explosion.

CRUDE CARRIERS:

The largest ships afloat are Very Large Crude Carrier (VLCC) and Ultra Large
Crude Carrier (ULCC). These ships are designed to load crude oil and transport to
refineries around the world where it can be processed into petroleum products. The
Largest Crude Carriers often load and unload at offshore buoys and terminals as
they are too large to enter most ports

PRODUCT CARRIERS:

These vessels, which are generally smaller than crude carriers, transport the refined
products from larger terminals to smaller ports around the world. Products carried
can include petroleum, jet fuel, diesel, asphalt, lubricating oil and tar. Smaller
tankers are also used to transport non-petroleum bulk liquids such as molasses and
palm oil.

CHEMICAL CARRIERS:

These ships usually have a deadweight of 5,000-40,000 tons and often have
specialized cargo systems suited to the type of cargo carried. These systems can
include heating or cooling apparatus and advanced cleaning systems to ensure the
purity of a cargo is maintained when loaded into a tank that may have previously
carried something different.

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LIQUEFIED GAS CARRIERS:

These ships began as converted oil tankers but have evolved into highly
specialized purpose-built vessels. Designed to carry Liquefied Petroleum Gas
(LPG) or Liquefied Natural Gas (LNG) under pressure, the cargo tanks are
generally spherical for strength. LNG carriers are usually larger than those carrying
LPG; the largest LNG carriers are the 'Q-Flex' vessels with a gas capacity of up to
266,000 cubic meters.

SPECIALIZED CARGOES:

Most types of cargo could be considered as specialized due to the specific loading,
unloading or stowage arrangements required. Many such cargoes are however,
moved with such regularity and ease that the term 'specialized' takes on a new
meaning. For the purpose of this article, it refers to cargoes that are either difficult
to categories as dry or liquid, or to cargoes that are relatively difficult to handle.

PASSENGER VESSELS:

This category includes everything from 10 person foot ferries up to cruise ships
able to carry over 6,000 passengers. Perhaps the most specialized cargo of all, the
needs and desires of passengers have driven the design of the modern ferries and
cruise vessels.

Ferries, once seen as 'a means to an end' for most, are now lavishly equipped with
lounges, restaurants, shops and entertainment facilities – particularly when the
ferry is on a relatively long route. The ships have got larger too, the Ulysses for
example which runs between Holy head and Dublin, is able to carry over 1,300
cars and 2,000 passengers.

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The first example of ships undertaking a public 'cruise' can be traced back to the
nineteenth century but cruising gained mass popularity in the latter twentieth
century. Many cruise vessels were originally liners which were sent to warmer
climates during seasonal bad weather on their regular routes. Arguably, the last of
the liners is the Queen Mary 2, which still operates a regular transatlantic service.

Today, cruise passengers demand and expect a wide range of facilities including
casinos, gymnasiums, shops, theatres, cinemas, pools, restaurants and bars. The
largest cruise vessels can be up to 360 m. long and 60 m. wide. Popular cruising
areas are the Mediterranean, Caribbean and Scandinavia.

LIVESTOCK CARRIERS:

These ships are often converted from other types of vessel and are equipped with
pens for large numbers of animals. The main considerations during the transport of
livestock are adequate ventilation, food and water, but also the ability of the
reception facilities at the destination port to handle the cargo. Some livestock
carriers are reported to be able to transport up to 120,000 sheep. A Common route
for livestock carriers is Australia and New Zealand to the Middle East.

HEAVY LIFT/PROJECT CARGO VESSELS:

These, mostly purpose built, vessels specialize in the transport of extremely heavy
or bulky objects such as other ships and large industrial components. Some heavy-
lift vessels are equipped with high capacity cranes to load at ports without a heavy-
lift capability. Other types are semi submergible, which allows a cargo to be
floated into position before the heavy-lift vessel de-ballasts to lift the cargo out of
the water. Notable occasions where semi-submersible heavy-lift vessels have been
used are the return of RFA Sir Tristram to the UK following the Falklands conflict
and the return of the USS Cole to the United States following the bombing in

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Aden. Heavy-lift vessels have also transported offshore platforms from their
construction site to the drilling site. Common project cargoes are wind turbine
blades and towers, quay cranes and industrial machinery. Some project cargo
vessels have been adapted further to suit their role. 'Jack up' vessels for example
are able to put down 'legs' to lift themselves out of the water. This is commonly
used by vessels installing offshore wind farms where stability is required during
the placing of the turbine towers.

TUGS:

Even with the advent of highly manoeuvres vessels equipped with thrusters and
azimuth pods, the tug is still vitally important to the maritime industry. Modern
tugs are highly manoeuvres with pulling power (bollard pull) sometimes in excess
of 100 tonnes, although harbor tugs are generally much less powerful. Such vessels
are on hand in ports around the world to assist in the berthing, unbreathing and
movement of large or less manoeuvres vessels within port limits. Tugs are also
used to assist the most manoeuvres vessels during periods of bad weather or when
carrying dangerous or polluting cargoes. Harbor tugs are also often employed to
move barges, floating cranes and personnel around ports. Larger units are kept on
standby in strategic locations to act as deep-sea rescue and salvage tugs. Tugs are
also used to tow barges from port to port, these sea-going tugs are also employed
for the movement of large structures such as offshore platforms and floating
storage units. Some tugs are utilized to push barges; this is particularly common on
rivers where the tug is able to exert more turning force on the tow. There are also
tugs that are designed to ‘slot’ into a barge or hull, once secured, this composite
unit behaves and is treated like a standard powered vessel. These composite units,
like tugs employed to push the cargo, are more common on North American river
and coastal trade.

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 COMPANY PROFILE

Avalon Containers is the brand name of Avalon Containers Private Ltd has been
launched at 2014 by a group of likeminded professionals with vast experience in
Shipping Industry. The company's registered and corporate office is located at
Chennai.
Avalon Containers is engaged in a multitude of shipping activities related to ocean
transportation of containerized traffic within all over world.

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Our mission
To be a premier container line, which offers prompt, reliable and customer
centric services to its clientele, in the Indian Sub-continent, Arabian Gulf, and
South East & Far East Region and aspires to become market leader in the years to
come?
Our vision
We are committed to provide complete logistics solutions to our customers,
through a proactive and responsive approach to customer’s needs, competitive
pricing and quality services. The company is also committed to continually provide
training and growth opportunities to its employees. To become a preferred carrier
in the identified trade lanes.

COMPANY SERVICES

 NVOCC
 Freight Forwarding
 Projects & Heavy Fills
 LCL Consolidation
 Total Transport & Logistics

 Customs Clearance
 Container Trading
 Break Bulk Cargo
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  RORO

NVOCC
NVOCC (Non Vessel Operator Container Carrier) a term commonly used to
denote sea Container Operating services without operating their own vessels.
Avalon Containers provides services to importers and exporters worldwide, being
one of the pioneers operations in Chennai to worldwide destination.

A Non-Vessel Operating Common Carrier (NVOCC) is an ocean carrier that

transports goods under its own House Bill of Lading, or equivalent documentation,
without operating ocean transportation vessels. Rather, an NVOCC leases space

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from another ocean carrier, or Vessel Operating Common Carrier (VOCC), that
they sell to their own customers. An NVOCC can be described as a shipper to
carriers and a carrier to shippers. While NVOCCs do not usually own their own
warehouses, many own their own fleet of containers. In certain circumstances, a
NVOCC may also operate as a freight forwarder

FREIGHT FORWARDING

We provide high quality freight forwarding services from Chennai. We are

International Freight Forwarders and our service includes both airfreight and sea
freight. All the goods are covered for insurance from starting point to final
destination. The foreign exchange and fluctuations in currencies are taken care of
in advance. We provide air, sea logistics and distribution services as well as
purchase order management and ancillary freight services in addition to freight
forwarding and Customs Brokerage.

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A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel
operating common carrier (NVOCC), is a person or company that organizes
shipments for individuals or corporations to get goods from the manufacturer or
producer to a market, customer or final point of distribution. [1] Forwarders contract
with a carrier or often multiple carriers to move the goods. A forwarder does not
move the goods but acts as an expert in the logistics network. The carriers can use
a variety of shipping modes, including ships, airplanes, trucks, and railroads, and
often use multiple modes for a single shipment. For example, the freight forwarder
may arrange to have cargo moved from a plant to an airport by truck, flown to the
destination city and then moved from the airport to a customer's building by
another truck.

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 International freight forwarders typically handle international shipments and have
additional expertise in preparing and processing customs documentation and
performing activities pertaining to international shipments. Information typically
reviewed by a freight forwarder includes the commercial invoice, shipper's export
declaration, bill of lading and other documents required by the carrier or country
of export, import, and/or transshipment.

PROJECTS & HEAVY LIFTS

Today each and every Manufacturer and larger MNC shipping companies,
top freight forwarders looking at a right solution provider for Projects & over
Dimensional Cargo. Your entire search ends here with our presence in shipping
line, holding Special equipment’s like flat rack, open tops, super rack and
exclusive chartering team to provide the best solution for your cargo. 
Our expertise in cargo scheduling, material management and excellent engineering
enables us to offer tailored solutions for your cargo.

 Heavy Lift:

When you have large items that can’t be broken down into smaller, lighter-weight
segments, Global Shipping will come up with a transport solution. We even have
experience moving products that are too heavy to transport on roads. Whether your
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 cargo requires flatbed trucks, special volume cargo aircrafts, or even inland barges,
we’ve got you covered.

 Break Bulk: 

Due to their large size or weight, some goods need to be loaded onto a cargo ship
or aircraft individually rather than grouped in shipping containers. This obviously
makes loading and unloading the equipment more labor-intensive and potentially
more costly. However, we can come up with an efficient and cost-effective break
bulk shipping method. We can help you determine when this is a better choice than
disassembling, packaging, and reassembling your cargo when it reaches its
destination.

LCL CONSOLIDATION

We console cargo to following countries Far East, India & Sub Continent,
Middle East, Europe and USA. We help our customers by arranging for cargo
consolidation (By Air / Sea). Our cargo Consolidation services includes
transportation of cargo to the stuffing point, stuffing of cargo in the container,
customs process of shipping documents and use of Premium Air/Shipping Lines
We have specialized experts to ensure that each of the cargos is handled properly.

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The process of LCL consolidation involves the movement of less than container
load cargo from an Inland Container Deport to a nominated 'hub' terminal under
customs seal, usually in a domestic container of some sort. At the nominated hub
terminal, the sealed containers are opened and the cargo re-worked on a destination
wise basis without having to be subjected to re-examination by customs. Indian
Customs permitted the reworking of LCL boxes in certain nominated 'hub
terminals' mostly located at port cities in the year 2000.

This has already led to a tremendous increase in the business of LCL consolidation
in the country. Export LCL consolidation of different ICDs' custom cleared cargo,
often along with locally cleared LCL cargo makes for must faster clearance of
cargo, and reduces the end to end transit times between the originating points and
destinations of the cargo being moved.

Reduced transit times of LCL hub movements have provided opportunity to

shippers to move their LCL consignments faster, at extremely cost effective LCL
sea tariffs. Due to the reworking of such cargo at nominated hub points within
India, direct destination sailings to USA, Europe, Africa, Gulf etc., become
available via the Mumbai/Chennai transshipment HUBs. This also reduces the sea
transits for LCL movements, which otherwise have to face a more expensive
transshipment at locations like Singapore or Colombo.

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TOTAL TRANSPORT & LOGISTICS

As an International Freight Logistics Company, We specialize in providing

our Customers a reliable and competitive Combined Transport Services to meet the
specific needs of each individual we serve. The Logistics services are like door to
door, Sea/Air/Rail/Road, all such services are covered by a single Combined
Transport Bill of Lading

Cargo, i.e. merchandise being transported, can be moved through a variety of

transportation means and is organized in different shipment categories. Unit
loads are usually assembled into higher standardized units such as: ISO
containers, swap bodies or semi-trailers. Especially for very long distances,
product transportation will likely benefit from using different transportation
means: multimodal transport, intermodal transport (no handling) and combined
transport (minimal road transport). When moving cargo, typical constraints are
maximum weight and volume.

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Operators involved in transportation include: all train, road vehicles, boats,
airplanes companies, couriers, freight forwarders and operators. Merchandise being
transported internationally is usually subject to the Inco terms standards issued by
the International Chamber of Commerce.

CUSTOMS CLEARANCE

Export & Import shipments handled for all type of Cargoes such as: Food
Items -Vegetables / Cereals / Food grains / Provisions / Reefer Break bulk – Bus /
Trucks / Trailers / Pock liners / Heavy Lifters Minerals / Scrap / Machinery /
Electricals / Chemicals / Garments Personal effects / Transfer Residence All type
of bills handled such as: Free Bill / Drawback / DEPB / DEEC / Green Channel /
Central Excise / Self-sealing / Bond etc.

Rules, regulations, and laws are a bit different from country to country, sometimes
from port to port within a country, making someone who specializes in customs
clearance very important to a shipper exporting and importing goods. These
specialists are called customs brokers and the work they do is called customs
brokerage or sometimes customs broking. Having the wrong person handle your
customs brokerage can be very problematic.

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Shipping containers are warehoused as they go through customs clearance.
Warehousing and storage fees can add up quickly. If there is a problem with your
customs brokerage and your customs clearance does not happen smoothly, your
shipping costs could go up by hundreds to thousands of dollars.

On top of these costs, the delay in getting your shipping containers released to you
because of customs clearance problems could cost your business more money
because the arrival of your shipment is delayed. Your freight forwarder should also
be able to handle your customs clearance, but you can choose to handle it
separately with your own customs broker. When choosing a freight forwarder, you
want a company with the experience to handle your customs clearance well and
who knows what to do should any issues arise. For these reasons, going with the
cheapest freight forwarder you can find to handle your international shipping can
turn out to be much more expensive than hiring a freight forwarder with a little
higher quote but who has much more experience in the business.

There are other things you can do to help ensure your shipping containers make it
through customs smoothly. Here are 2 ways you can help make the customs
clearance process smooth for your shipment.

27
CONTAINER TRADING

We provide office containers that are designed to function as remote offices

and workspaces. They are absolutely perfect for any project that requires an on-site
work space and they do not require an electrician or a power grid. We offer both
marine containers, puff containers for office use and storage use. Cabins are light
weight and light weight and have very effective heat and sound insulation. They
are available at very low cost and best quality

Containerization is a system of intermodal freight transport using intermodal

containers (also called shipping containers and ISO containers). The containers
have standardized dimensions. They can be loaded and unloaded, stacked,
transported efficiently over long distances, and transferred from one mode of
transport to another container ships, rail transport flatcars, and semi-trailer trucks
without being opened. The handling system is completely mechanized so that all
handling is done with cranes and special forklift trucks. All containers are
numbered and tracked using computerized systems.

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Containerization originated several centuries ago but was not well developed or
widely applied until after World War II, when it dramatically reduced the costs of
transport, supported the post-war boom in international trade, and was a major
element in globalization. Containerization did away with the manual sorting of
most shipments and the need for warehousing. It displaced many thousands of
dock workers who formerly handled break bulk cargo. Containerization also
reduced congestion in ports, significantly shortened shipping time and reduced
losses from damage and theft.

BREAK BULK CARGO

Our dedicated chartering team has vast experience and thorough knowledge,
which helps in moving your ODC, break bulk cargo with best transport mode to
save time and cost, we suggest and provide right vessel for your part or full cargo
chartering. 
We have very good hands of experience in handling all kind of bulk cargo like
coal, cement, salt, iron ore, automotive etc..

29
 `

The term break bulk derives from the phrase breaking bulk the extraction of a

portion of the cargo of a ship or the beginning of the unloading process from the
ship's holds. These goods may not be in shipping containers. Break bulk cargo is
transported in bags, boxes, crates, drums, or barrels. Unit loads of items secured to
a pallet or skid are also used. A break-in-bulk point is a place where goods are
transferred from one mode of transport to another, for example the docks where
goods transfer from ship to truck.

Break bulk was the most common form of cargo for most of the history of
shipping. Since the late 1960s the volume of break bulk cargo has declined
dramatically worldwide as containerization has grown. Moving cargo on and off

30
ship in containers is much more efficient, allowing ships to spend less time in port.
Break bulk cargo also suffered from greater theft and damage.

RORO

RORO vessels have built-in ramps which allow the cargo to be efficiently
"rolled on" and "rolled off" the vessel when in port. While smaller ferries that
operate across rivers and other short distances still often have built-in ramps, the
term RORO is generally reserved for larger ocean-going vessels. The ramps and
doors may be stern-only, or bow and stern for quick loading.

Roll-on/roll-off (RORO or ro-ro) ships are ferries designed to carry wheeled cargo,

such as cars, trucks, semi-trailer trucks, trailers, and railroad cars, that are driven
on and off the ship on their own wheels or using a platform vehicle, such as a self-
propelled modular transporter. This is in contrast to lift-on / lift-off (Lolo) vessels,
which use a crane to load and unload cargo.

RORO vessels have either built-in or shore-based ramps or ferry slips that allow

the cargo to be efficiently rolled on and off the vessel when in port. While smaller
ferries that operate across rivers and other short distances often have built-in

31
ramps, the term RORO is generally reserved for large oceangoing vessels. The
ramps and doors may be located in stern, bow or sides, or any combination thereof.

TYPES OF CONTAINERS

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 20 FT CONTAINER

40 FT HIGH CUBECONTAINER

33
 40 FT CONTAINER

10 FT CONTAINER

LCL AND FCL

When shipping via sea-freight, you can either fill a container with your own goods
(FCL) or share a container (LCL) - but which is the one for you? Today, we're

34
comparing the two so that you can identify which process will be most efficient for
you and your business. For instance, when you import to the UK via sea freight,
your goods are loaded into a container and stored on a vessel for transit. LCL and
FCL are the two methods of shipping your goods. The best method to use usually
depends on the size and volume of product that you’re importing; LCL is when
goods are in a shared container (so you can import a small amount), whereas FCL
is when your goods are in a container on their own (so you can import larger
volumes).
LCL
LCL (less than container load) shipping is a method that consolidates multiple
shipments into one shared container. This means that businesses wanting to import
smaller volumes of stock can pay for the volume of space they use within a
container as opposed to having to rent out the entire container. This can work out
as fairly economical if you’re only shipping small volumes (over 0.5cbm & 100kg)
as you’re only paying for this small amount of space.
FCL
FCL (full container load) is when you pay for the use of an entire container
instead of paying to use part of it. When shipping using FCL, there is a flat rate for
the container and you have access to all the available space within it, if you are
looking at shipping more than around 20cbm then FCL is generally the best option
as your supplier is the only other person to touch your goods (other than Customs
if there’s an inspection).

35
36
Ordering/Stock Control

 LCL IS VERY FLEXIBLE

When you import using FCL, if you don’t fill the container you’re effectively paying to
ship fresh air.  This can be restrictive if you’d actually like to ship slightly less or slightly
more than the capacity of the container you’ve chosen.

When you ship on an LCL basis you can import a smaller amount of stock; this is great
for start-ups or businesses that may not want to import a large volume of a product.

 ON FCL, SPECIFIC VOLUMES ARE REQUIRED

With FCL, you need to ship a certain volume to make it a viable option for your business;
as a small or start-up business, needing to buy a large amount of stock may not be
feasible.

 Loading Goods

WITH FCL, ONLY YOU AND YOUR SUPPLIER TOUCH THE GOODS, REDUCING THE
CHANCE OF DAMAGE

FCL shipments are loaded into a container by your supplier, that container is sealed, and
(assuming that Customs don’t decide to stop the shipment) the container is delivered to
you, still sealed.  This makes it a lot less likely for goods to be damaged in transit.  So if
you have a large number of fragile goods and are uncertain which method to use we’d
suggest paying a little more for a full container.

LCL shipments are handled on a few more occasions.  They are loaded onto a vehicle at
the factory, unloaded into a warehouse by the port and loaded into a shared container. 
When they land in the UK they are unloaded from the container and loaded onto a truck
before they are delivered to you to unload.

Delivery

 LCL OFFERS CONVENIENT DELIVERY OPTIONS

Another difference between LCL and FCL is the way that your goods will be delivered to
you.

When you import using FCL shipping, your goods will be delivered to you in a container
stuck on the back of a very large truck.  The container can’t be dropped to the ground for
unloading (unless you pay a lot more for a special truck) so you have 3 hours to unload
your goods from the container (six feet above the ground) before it drives away.  As a
result, you’ll either need a few pairs of hands or a forklift/pump truck to help you out!

37
 LCL shipments, however, are delivered (often palletised) on the back of a truck.  This is a
lot easier to unload and if your delivery location has restricted access you can request a
smaller truck to deliver.  If you don’t have a forklift or want to unload by hand then you
can request a tail-lift delivery (normally around £30 extra) and the goods will be lowered
to the floor for you. You usually have as long as it takes to unload the delivery as long as
the driver believes you’re doing all you can.  Simple.

 DIFFERENT TRUCK TYPES – RESTRICTED ACCESS & TAIL-LIFTS

As detailed above, LCL shipments mean that (depending on the size of your shipment)
you have options when it comes to what type of truck your goods are delivered on. This
is very helpful for people in restricted areas that large trucks don’t have access to; they
have the option to request a smaller truck.  You also have the option to request a tail-lift
delivery to help you unload your goods.

If you ship via FCL and have special delivery requirements, need your goods dropped to
the ground for you or require a smaller vehicle this can be expensive.  You’ll probably
need to have the container unloaded at the port in the UK before being delivered on the
correct vehicle/vehicles.

FCL shipments are delivered to you in one way – in a container on the back of a lorry. If
that’s inconvenient for you, or a massive lorry won’t fit down your street etc. . . . Well,
you’re solid out of luck! Whereas LCL shipments have convenient delivery options, FCL
shipments are much larger (as you’re literally getting a container delivered to you) so
they need the bigger truck.

 LABOUR INTENSIVE UNLOADING

We’ve already touched on how FCL delivery is less convenient in terms of the actual
vehicle, but the unloading is also far more labour intensive. It basically works like this:
you have a massive container on top of a massive lorry. That’s it. From there, it’s all up
to you (and the unlucky folk you’ve dragged into helping you) to get your goods down
and unpacked.

38
 Transit Time

 FCL IS  A FEW DAYS QUICKER THAN LCL

Transit time on FCL shipments is usually a few days faster than LCL due to the process
that LCL shipments go through. Because LCL shipments combine multiple people’s
goods, there are additional steps in the process on both sides where the goods need to be
loaded and unloaded. If you’re on a strict timeline, this could add additional time onto the
process – however, if you really are strapped for time, it may be worth trying air freight,
for at least some of your goods – then you have the option of the rest being shipped by
LCL or FCL.

 Amazon Deliveries
 
 LCL SHIPMENTS ARE EASY TO DELIVER STRAIGHT TO AMAZON, BUT FCL
SHIPMENTS ARE DIFFICULT TO IMPORT STRAIGHT TO FBA

When you ship via LCL, shipments directly to Amazon are fairly straight forward for us
to arrange with a bit of planning.  In fact, we organise these with ease on a daily basis for
customers!

When you ship a full container, it’s more difficult to deliver to Amazon FBA.  Amazon
typically don’t like receiving containers that contain loose cartons so would require your
supplier to label, palletise and shrink wrap the goods to Amazon’s standards.  If these
standards are not met then this could lead to the container being rejected and a lot of
extra costs to unpack, re-palletise and re-deliver.

DocumentsrequiredforimportcustomsclearanceinIndia

This is one of the important articles in export and import trade –What are the documents required
for Import clearance? One of frequently asked questions is ‘documents required for import
clearance’

Unlike other articles, I can not provide a ‘capsule’ solution on this article about documents
required for import customs clearance. I will explain reason behind it. First of all, let me clarify:

39
the documents required for import clearance under all products are not same. However, we can
discuss about the common documents required for import customs clearance in importing
countries. I will provide you a some general information on documentation of import customs
clearance from which you can have a common idea on the subject. I hope, this information helps
you a lot to know about documents required for import clearance generally.

Since various types of commodities are imported from different countries, a complete list of
documents for import customs clearance procedures can not be provided. More over, different
countries have their own policies in turn different procedures and formalities for import
clearance. Each product under import and export  is classified under a code number accepted
globally which is called ITC number.
 

There may have bilateral import export agreements between governments of different countries.
Imports and exports from such countries may have exemptions on documentation for export and
import clearance.

However there are legal documents, common documents and specific documents on commodity
basis required to complete import customs procedures. 

Let us discuss some of the common documents required for import customs clearance procedures
and formalities in some of the importing countries.
 

Bill of Entry:
 

40
Bill of entry is one of the major import document for import customs clearance. As explained
previously, Bill of Entry is the legal document to be filed by CHA or Importer duly signed. Bill
of Entry is one of the indicators of ‘total outward remittance of country’ regulated by Reserve
Bank and Customs department. Bill of entry must be filed within thirty days of arrival of goods
at a customs location.

Once after filing bill of entry along with necessary import customs clearance documents,
assessment and examination of goods are carried out by concerned customs official. After
completion of import customs formalities, a ‘pass out order’ is issued under such bill of entry.
Once an importer or his authorized customs house agent obtains ‘pass out order’ from concerned
customs official, the imported goods can be moved out of customs. After paying necessary
import charges if any to carrier of goods and custodian of cargo, the goods can be taken out of
customs area to importer’s place. For further read:  How to file Bill of Entry online?  How to file
Bill of Entry manually?  Can Bill of Entry be filed before arrival of goods at destination?
 

Commercial Invoice.
 

Invoice is the prime document in any business transactions. Invoice is one of the documents
required for import customs clearance for value appraisal by concerned customs official.
Assessable value is calculated on the basis of terms of delivery of goods mentioned in
commercial invoice produced by importer at customs location. I have explained about the
method of calculation of assessable value in another article in same web blog. The concerned
appraising officer verifies the value mentioned in commercial invoice matches with the actual
market value of same goods. This method of inspection by appraising officer of customs
prevents fraudulent activities of importer or exporter by over invoicing or under invoicing. So
Invoice plays a pivotal role in value assessment in import customs clearance procedures.  Read

41
more: How to prepare Commercial Invoice? Contents of Commercial Invoice.    Difference
between proforma Invoice and Commercial Invoice.  Howmany types of Bills of Entry in India?
 

Bill of Lading / Airway bill :

 

BL/AWB is one of the documents required for import customs clearance.

Bill of lading under sea shipment or Airway bill under air shipment is carrier’s document
required to be submitted with customs for import customs clearance purpose. Bill of lading or
Airway bill issued by carrier provides the details of cargo with terms of delivery. I have
discussed in detail about Bill of Lading and Airway bill separately in this website. You can go
through those articles to have a deep knowledge about documents required for import customs
clearance.  Read more about: Different types of Bill of Lading   When to release Bill of
Lading?  Importance of Bill of Lading
 

Import License
 

As I have mentioned above, import license may be required as one of the documents for import
customs clearance procedures and formalities under specific products. This license may be
mandatory for importing specific goods as per guide lines provided by government. Import of
such specific products may have been being regulated by government time to time. So
government insist an import license as one of the documents required for import customs
clearance to bring those materials from foreign countries.

42
Insurance certificate
 

Insurance certificate is one of the documents required for import customs clearance procedures.
Insurance certificate is a supporting document against importer’s declaration on terms of
delivery. Insurance certificate under import shipment helps customs authorities to verify,
whether selling price includes insurance or not. This is required to find assessable value which
determines import duty amount. 

  
 

Purchase order/Letter of Credit

 

Purchase order is one of the documents required for import customs clearance. A purchase order
reflects almost all terms and conditions of sale contract which enables the customs official to
confirm on value assessment. If an import consignment is under letter of credit basis, the
importer can submit a copy of Letter of Credit along with the documents for import clearance.
Also read How does Letter of Credit work?
 

Technical write up, literature etc.For specific goods if any

 

43
Technical write up, literature of imported goods or any other similar documents may be required
as one of the documents for import clearance under some specific goods. For example, if a
machinery is imported, a technical write up or literature explaining it’s function can be attached
along with importing documents. This document helps customs official to derive exact market
value of such imported machinery in turn helps for value assessment.

Industrial License if any

 

An industrial license copy may be required under specific goods importing. If Importer claims
any import benefit as per guidelines of government, such Industrial License can be produced to
avail the benefit. In such case, Industrial license copy can be submitted with customs authorities
as one of the import clearance documents.

RCMC. Registration cum Membership Certificate if any

 

For the purpose of availing import duty exemption from government agencies under specific
goods, production of RCMC with customs authorities is one of the requirements for import
clearance. In such cases importer needs to submit Registration Cum Membership Certificate
along with import customs clearance documents.

Test report if any

 

44
 

The customs officials may not be able to identify the quality of goods imported. In order to
assess the value of such goods, customs official may draw sample of such imported goods and
arranges to send for testing to government authorized laboratories. The concerned customs
officer can complete appraisement of such goods only after obtaining such test report. So test
report is one of the documents under import customs clearance and formalities under some of
specific goods.

DEEC/DEPB /ECGC or any other documents for duty benefits

 

If importer avails any duty exemptions against imported goods under different schemes like
DEEC/DEPB/ECGC etc., such license is produced along with other import clearance documents.

 
Central excise document if any
 

If importer avails any central excise benefit under imported goods, the documents pertaining to
the same need to be produced along with other import customs clearance documents.

GATT/DGFT declaration.
 

As per the guidelines of Government of India, every importer needs to file GATT declaration
and DGFT declaration along with other import customs clearance documents with customs.

45
GATT declaration has to be filed by Importer as per the terms of General Agreement on Tariff
and Trade.

Any other specific documents other than the above mentioned

 

Apart from the above mentioned documents, importer has to file additional documents if any
required as per the guidelines of government / customs department under import of specific
goods.

I hope, I could explain you a general idea on documents required for import customs clearance
procedures and formalities.

You can share your experience under documentation for import customs clearance.

12 Documents Required for Export Customs Clearance

Any commercial cargo, whether it is for import or export, requires customer clearance. Simply put, this
means that businesses engaged in exporting and importing goods to and from the country need to clear
specific customs barriers as outlined by the government.

The customs clearance process typically involves preparing documents that may be submitted
electronically or physically with the consignment. This helps concerned authorities to calculate taxes and
duties that will be levied on the cargo.

46
The type of documents required for customs clearance usually depends on the type of goods being
shipped. It may also vary depending on the country of origin and the destination of the cargo. However,
as a thumb rule, there are a set of general documents that most businesses need to comply with when
importing or exporting goods.

List of Documents required for Exports Customs Clearance

 ProformaInvoice
 Customs Packing List
 Country of Origin or COO Certificate
 Customs Invoice
 Shipping Bill
 Bill of Lading
 Bill of Sight
 Letter of Credit
 Bill of Exchange
 Export License
 Warehouse Receipt
 Health Certificates

You can understand what these documents mean from their explanation as given below.

Pro Forma Invoice

The Pro Forma Invoice documents the intention of the exporter to sell a predetermined quantity of goods
or products. This invoice is generated as per the outlined terms and conditions agreed upon between the
exporter and the importer, through a recognised medium of communication such as email, fax, telephone
or in person. It is similar to a ‘Purchase Order’, which is issued prior to completing the sales transaction.

Customs Packing List

The customs packing list states the list of items included in the shipment that can be matched against the
pro forma invoice by any concerned party involved in the transaction. This list is sent along with the
international shipment and is especially convenient for transportation companies as they know exactly
what is being shipped. Individual customs packing lists are secured outside each individual container to
minimise the risk of exporting incorrect cargo internationally.

Country of Origin or COO Certificate

The Country of Origin Certificate is a declaration issued by the exporter that certifies that the goods being
shipped have been completely acquired, produced, manufactured or processed in a particular country.

47
Customs Invoice

A customs invoice is a mandatory document for any export trade. The customs clearance department will
ask for this document first as it contains information about the order, including details such as description,
selling price, quantity, packaging costs, weight or volume of the goods to determine customs import value
at the destination port, freight insurance, terms of delivery and payment, etc. A customs representative
will match this information with the order and decide whether to clear this for forwarding or not.

Shipping Bill

A shipping bill is a traditional report where the downside is asserted and primarily serves as a measurable
record. This can be submitted through a custom online software system (ICEGATE). To obtain the
shipping bill, the exporter will need the following documents:

 GR Forms for shipment to all the countries

 Packing list (with various details such as information about the content, quantity, the gross and
net weight of each package)
 Export License
 Indent
 Acceptance of Contract
 Invoices (with all relevant information such as the number of packages, quantity, price, correct
specification of goods, etc.)
 Purchase Order
 Letter of Credit
 AR4 and Invoice
 Examination or QC Certificate
 Port Trust document

Bill of Lading

Bill of Lading is a legal document issued by the carrier to the shipper. It acts as evidence of the contract
for transport for goods and products, mentioned in the bill provided by the carrier. It also includes product
information such as type, quantity, and destination that the goods are being carried to. This bill can also be
treated as a shipment receipt at the port of destination where it must be produced to the customs official
for clearance by the exporter. Regardless of the form of transportation, this is a must-have document that
should accompany the goods and must be duly signed by the authorised representative from the carrier,
shipper, and receiver. The Bill of Lading comes in handy if there is any asset theft.

Bill of Sight

Bill of Sight is a declaration from the exporter made to the customs department in case the receiver is
unsure of the nature of goods being shipped. The Bill of Sight permits the receiver of goods to inspect
them before making payments towards applicable duties. Applying for a bill of sight becomes necessary
as it acts as a substitute document if the exporter does not have all the must-have information and

48
documents needed for the bill of entry. Along with the bill of sight, the exporter also needs to submit a
letter that allows for the clearance of goods by customs.

Letter of Credit

Letter of credit is shared by the importer’s bank, stating that the importer will honour payment to the
exporter of the sum specified to complete the transaction. Depending on the terms of payment between
the exporter and importer, the order is dispatched only after the exporter has this letter of credit.

Bill of Exchange

Bill of Exchange is an alternative payment option where the importer is to clear payments for goods
received from the exporter either on-demand or at a fixed or determinable future. It is similar to
promissory notes that can be drawn by banks or individuals. You can even transfer a Bill of Exchange by
endorsement.

Export License

Businesses must have an export license that they can provide to customs in order to export or forward any
products. This only needs to be produced when the shipper is exporting goods to an international
destination for the very first time. This type of license may vary depending on the type of export you
intend to make. This can be done by applying with the licensing authority, and the permit is eventually
issued by the Chief Controller of Exports and Imports.

Warehouse Receipt

Warehouse Receipt receipt is generated once the exporter has cleared all relevant export duties and freight
charges post customs clearance. This is needed only when an ICD in involved.

Health Certificates

Health Certificate is applicable only when there are food products that are of animal or non-animal origin
involved in international trade. The document certifies that the food contained in the shipment is fit for
consumption by humans and has been vetted to meet all standards of safety, rules and regulations prior to
exporting. This certificate is issued by authorised governmental organisations from where the shipment
originates.

Although these documents are generally common submissions, additional documents may be required in
certain cases. For example, industrial license, test report, insurance certificate, GATT declaration,
registration cum membership certificate, documents for duty benefits or central excise documents could
be essential for certain types of imports.

Documentation in Customs Clearance

Any Importer wishing to bring in cargo into the country may do so through air, ship, and road or
multi modal transport. Every import consignment is required to be deposited by the

49
transportation agency or the freight forwarder into the Customs Designated Bonded warehouse
for Customs Clearance.

Customs Clearance is facilitated by Customs Clearance Agent or Broker who is Authorized,

Licensed agency or operator to file the necessary documents on behalf of the importer and co-
ordinate the clearance activity.

Customs Clearance Process entails filing of Bill of Entry in electronic form by Clearing Agent
on behalf of the Importer with Customs, along with other Commercial Documents including
Declarations from Importer, Commercial Invoice, Packing List, P. Order Copy as well as
Certificate of Origin and Licenses to Import if any.

Bill of Entry is the main key document on which the Customs approves clearance of the cargo
and the document is crucial for availing duty credits if any by the Importer post clearance. The
Bill of Entry document is also required as an important record for audit purposes and any further
inspection from any agencies.

Types of Bill of Entry

Depending upon the nature of transaction the Bill of Entry form varies. Few important types of
BOE are discussed herein:

 BOE for Home Consumption

When an import consignment is required to be custom cleared and the importer wishes to
take delivery and use the cargo for internal consumption in his business organization, the
Bill of Entry for Home Consumption is filed. The Bill of Entry for Home Consumption is
in white color.

 BOE for Bonding

If the Importer does not wish to custom clear the imported consignment right away and
wishes it to be warehoused at the Customs Bonded Warehouse, then the Bill of Entry for
Bonding is submitted, so that the customs can permit the transfer of import shipment to
be warehoused at the customs bonded warehouse without payment of duty but on
execution of a bond by the importer and postpone the clearance to a future point of time.
The importer by filing the Yellow colored BOE for bonding is able to defer the payment
of duty until such time that he requires clearing the consignment.

When this BOE for bonding is filed, the customs assess the consignment and determine
the duty payable and the importer executed a bond for the required value but is not
required to pay the actual customs duty.

 Ex-Bond Bill of Entry

When import consignments are not custom cleared immediately on arrival and are
warehoused at the customs bonded warehouse, the importer can choose to custom clear

50
the entire consignment or in parts whenever he requires by filing Ex-Bond Bill of Entry
to clear the consignment from the warehouse on payment of duty.

The valuation under the Ex-Bond Bill of Entry will take into account the prevailing rates
of duty at the time of actual removal of imported consignment from the warehouse and
not the duty assessed through Bonding BOE. In case there has been a revision in the
tariff, the prevalent tariff at the time of removal from the bonded warehouse will prevail.

Ex-Bond Bill of Entry is green in color and is also called ‘Green Bill’.

51