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Export procedure and Documentation
SUMMER INTERNSHIP REPORT ON UFLEX NOIDA.
WITH YOU FROM DAWN TO DUSK
Submitted by
SUMIT KUMAR AGRAWAL
2010PMB115
Malaviya National Institute of Technology
JAIPUR
Export procedure and Documentation
Submitted by
SUMIT KUMAR AGRAWAL
2010PMB115
IN PARTIAL FULFILMENT OF MBA IN FINANCIAL MANAGEMENT
FOR THE ACADEMIC YEAR -2010-12
Under the guidance of
Mr.SHAILESH SHUKLA
Export procedure and Documentation
DECLARATION
I hereby declare that Summer Internship Report is a record of independent work carried out by me during Third Semester, June 2011 to July 2010 for the purpose of Partial fulfillment of degree of Masters in Business Administration for MNIT.
This report has not been previously submitted for the award of any university or institution.
Place: JAIPUR Signature:
Date:
Export procedure and Documentation
ACKNOWLEDGEMENT
This study will be incomplete without acknowledging a sincere gratitude to all those who contributed in some way or other in complete this study.
I wish to extend my sincere gratitude to our HOD Prof APS Rathore for providing me this extremely valuable opportunity to conduct the summer internship study as a part of the course.
I would like to thank Mr. Shailesh Shukla for his valuable guidance and precious time spent and help rendered during my study.
I am also thankful to Ahuja Sir and Rajinder Sir for enlightening me
I am highly obliged and thankful to Ms. Anushree Gupta (HR) with the sense of gratitude.
Last but not least, also give my sincere thanks to all the people to directly indirectly have help and encourage me in finding the way to us collecting the requisite information and completing the project effectively and timely
Export procedure and Documentation
INDEX
Important Abbreviations
Introduction of study
Objective of study
Scope of the Project
Limitations of the study
Company Profile
Theoretical background
Findings
Bibliography/References
Export procedure and Documentation
I MPORTANT ABBREVIATIONS
Export procedure and Documentation
Export procedure and Documentation
INTRODUCTION OF STUDY
This project is all about to know about export import procedure/ documentation of shipment. This project puts more focus on to know custom clearness, to make export - import invoice, to get shipping bill number from custom department etc. This project will also find out how UFLEX Ltd. could sustain in the competitive world by providing vast range of cargo handling through all instruments which flexible prompt and innovative in meeting the requirement of the customer. The purpose of the study was to know about export – import documentation of seaway in the uflex ltd.
Export procedure and Documentation
OBJ ECTIVE OF THE STUDY
The main objectives of the research were:
To know about export import process.
To know what are the documents required before and after
sailing the cargo.
Export procedure and Documentation
SCOPE OF THE STUDY
The scope of marketing research could cover the business problems
relating to the followings.
Types of consumers that compromise present and potential markets.
Buying habits and pattern of consumption
Size and location of different markets, not only in India but also overseas.
The prospects for growth or construction for the current markets being
served.
New mantras of emerging segments.
Marketing and manufacturing capabilities of competitors.
Most suitable entry timing.
The current and prospective competitive position.
Chances of improvement of current channels
Export procedure and Documentation
LIMITATIONS OF THE STUDY
Not a panacea
Not an exact science
Limitation of time
Erroneous findings
Not exact tool for forecasting
In experience research staff
Narrow conception of marketing research
Export procedure and Documentation
COMPANY PROFILE
After Pioneering the growth of the flexible packaging industry in India, Uflex has gained an unchallenged identity. Since its inception in the year 1983 it has turned into a multi billion company that values quality and customer satisfaction amongst other priorities. With consumers spread across the world, Uflex enjoys a global reach. Headquartered in Noida (National Capital Region, New Delhi) it has state of the art manufacturing facilities in India & Dubai. It has also established offices in UAE, Europe, North America and enjoys a formidable market presence in more than 85 countries.
Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA approvals for their products. It is also a part of the D&B Global Database and winner of various prestigious national and international awards like the top exporter of BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL and the DUPONT Awards in 2004-2005 are the latest in this series.
Being a multi faceted organization it has integrated its operations from manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metalized form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines, offering total flexible packaging solution.
Uflex has always been committed to the industry by providing technical know-how and being the trend-setter in the flexible packaging industry . Being on the edge of innovation, Uflex endeavors to be the first to come up with advanced products that cater to the changing demands of the packaging industry.
As part of the Uflex Group, it has over twenty years of experience in polymer technology. Setting milestones of success and innovation, Uflex is widely known for manufacturing and supplying products, delivering apt services around the world.
Export procedure and Documentation
CHAIRMAN VISION
Welcome to UFLEX - a world of complete flexible packaging solutions created with you at the centre. With you at the centre we conceptualized an enterprise that has taken us to strategic locations across the globe so that you find us closer in terms of ideas, markets, challenges, solutions and services. Today, we are available for you just around the corner, around the world. Putting you at the centre has also helped us evolve a corporate culture, flexible enough to respond to your demands and accommodate your needs. It has helped us to adapt our global industry insights to create solutions that keep your goals in focus. So across the world, you will find dealing with us as comfortable as with your local partner, yet backed with the formidable technological know-how of global players. Thinking of you has made us invest in the best inputs on the entire range of the flexible packaging spectrum. It also helps us offer the right mix of competencies from the entire range of possibilities on the flexible packaging spectrum, so that you get precisely what you need, whenever you need it. All this has added up to an edge that gives you access to not only the perfect product but also the complete process consultancy. This helps you derive the maximum mileage out of the products that we engineer for you. It's a distinction that can be brought to you only by the people who know every link of the flexible packaging chain inside out. So bring us a flexible packaging challenge and take back a relationship – a relationship with an unparalleled competitive and innovative edge.
Export procedure and Documentation
CHAIRMAN PROFILE
The founder Chairman and Managing Director of The UFlex Group, Mr. Ashok Chaturvedi, pioneered the growth of Flexible Packing industry in India. He is hailed as the leader of this fast growing segment of packaging business in India. Mr. Chaturvedi's progressive thinking made him conscious of the need to offer solutions for Flexible Packaging and this led to the inception of a company for manufacturing packaging materials. Exhibiting inspiring innovativeness and entrepreneurial skills, Mr. Chaturvedi applied the latest international technologies for tailoring and designing packing material which adapted to the needs of the customers, winning markets globally.Appreciating the customer's needs for quality, prompt delivery and service, he decided to integrate backwards in the manufacture of Polyester Film, BOPP and Co-extruded Films, Gravure Printing Cylinders, Inks, Adhesives, Pet Chips, etc. This ensured the excellent quality of raw materials and timely delivery to the customer. Mr. Ashok Chaturvedi is one of a distinguished creed of first generation entrepreneurs, who has, through vision and dedication carved a niche for himself in the domestic industrial environment and also sculpted a global reputation for himself and The UFLEX Group.This far-sightedness has placed Flex as a major company in the global markets. Its export destinations have expanded to more than 101 countries establishing a reputation synonymous with reliability and excellent quality.Mr. Chaturvedi's achievements are by no means restricted to the industrial arena. The Flex Medical Centre, stands testimony to his concern for society. His commitment to enhancing the quality of facilities in the country is seen in the promotion of an advanced Modern Cricket Club, and the contributions towards the growth of institutions for management studies. It is Mr. Chaturvedi's dream and ambition to make The UFLEx Group a truly professional multinational corporation
Export procedure and Documentation
SUBSIDARIES
Flex Middle East FZE, UAEP.O BOX 17930,Jebel Ali Free Zone,Dubai, United Arab Emirates
Flex Americas S.A. de C.V., MexicoBoulevard de los Rios 5680,Zona Puerto Industrial Altamira,Tamaulipas Mexico C.P. 89603
Flex P. Films (Egypt) S.A.E., EgyptPlot No. R2 in Engineering Square (e2),Plot No. 3 in North Extension of Industrial Zones,6 October CityArab Republic of Egypt
Flex Films Europa Sp. z o.o., PolandPO. Box 62 300 Wrzesniaul, Kaliska 30 Poland
Flex Films (USA) INC, USAElizabethtown, 1221 North Black Branch Road Elizabethtown, KY 42701
Flex America Inc., USA14300 Cornerstone Village DrSuite # 121, Houston, TX 77014
Uflex Packaging Inc., USARegistered Office: 315, Lowell Avenue, Hamilton, NJ 08619 (USA)Marketing Office: 2460 Lemoine Avenue Suite #103 Fort Lee, NJ 07024
Uflex Europe Limited, U.K.29 MARYLEBONE ROAD, London, London, London, NW1 5JX (UK)
Export procedure and Documentation
UPET Holdings Ltd., MauritiusLes Cascades, Edith Cavell Street, Port-Louis, Mauritius
UPET (Singapore) Pte. Ltd., SingaporeRegistered Office: 10, Jalan Besar, #0-12 Sim Limi Tower, Singapore 208787Principal Place of Business: No 27, Rufflex, #5-02A Clifford Centre, Singapore 048621
UTech Developers LimitedRegistered Office: 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash-I, New Delhi- 110 048Corporate Office: A-107-108, Sector-4, Noida, U.P.
AKC Developers Ltd.Registered Office: 305, 3rd Floor, Bhanot Corner, Pamposh Enclave,Greater Kailash-I, New Delhi- 110 048
JOINT VENTURES
QCELL LimitedKairaba Avenue, P.O.Box 3469, Serrekunda, The Gambia, West Africa
SD Buildwell Private LimitedRegistered Office: 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash-I, New Delhi- 110 048Corporate Office: A-107-108, Sector-4, Noida, U.P.
ASSOCIATES
Flex Foods LimitedLal Tappar Industrial AreaP.O. resham Majri,Haridwar Road,Dehradun - 248140Uttarakhand (INDIA)
BUISNESS DIVISION
1) FILM DIVISION2) ENGINEERING DIVISION
Export procedure and Documentation
3) HOLOGRAPHY DIVISION4) CONVERTING DIVISION5) CYLINDER DIVISION6) CHEMICAL DIVISION
A SHIPPING BILL FOR EXPORTS.
A shipping bill, usually called Bill of Lading (B/L) is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document.
For the ship's owner and his/her representant (the master's vessel) the responsability of take the goods from one place to another.For the seller the documentary prove that the merchandise was shipped in certain vessel, in certain conditions and consignee to certain buyer. Including the merchandise conditions, characteristics and quantity.
For the buyer, the neccessary document for claim the merchandise.For the Shipping Agency at the port of arrival represents the only and unique document for continue the process of commerce, without the B/L, or with one missfilled the merchandise could be in risk of be "holded". There are more than one way when this can happen, also more than one way for solve that problem.As you can see more than one party is involved in the preparation of the B/L, especially in the correct info filling, but the only one who can issue a B/L is the Shipping Ag.
Other parties envolved may be, custom authorities, custom brokers and companies that handle the merchandise.
This shipping bill is the same for exports or imports, just have to include the correct information and participants data.
Export procedure and Documentation
TERMS OF SHIPMENTS – INCOTERMS
The INCOTERMS (International Commercial Terms) is a universally recognized
set of definition of international trade terms, such as FOB, CFR & CIF, developed
by the International Chamber of Commerce(ICC) in Paris, France. It defines the
trade contract responsibilities and liabilities between buyer and seller. It is
invaluable and a cost-saving tool. The exporter and the importer need not undergo
a lengthy negotiation about the conditions of each transaction. Once they have
agreed on a commercial terms like FOB, they can sell and buy at FOB without
discussing who will be responsible for the freight, cargo insurance and other costs
and risks.
The INCOTERMS was first published in 1936 --- INCOTERMS 1936 --- and it is
revised periodically to keep with changes in the international trade needs. The
complete definition of each term is available from the current publication ---
INCOTERMS 2000. Under INCOTERMS 2000, the international commercial
terms are grouped into E, F, C and D, designated by the first letter of the term,
relating to the final letter of the term. E.g. EXW—exworks comes under grouped
‘E’.
The purpose of Incoterms is to provide a set of international rules for the
interpretation of the most commonly used trade terms in foreign trade. Thus, the
uncertainties of different interpretations of such terms in different countries can be
avoided or at least reduced to a considerable degree. The scope of Incoterms is
Export procedure and Documentation
limited to matters relating to the rights and obligations of the parties to the contract
of sale with respect to the delivery of goods. Incoterms deal with the number of
identified obligations imposed on the parties and the distribution of risk between
the parties.
In international trade, it would be best for exporters to refrain, wherever possible,
from dealing in trade terms that would hold the seller responsible for the import
customs clearance and/or payment of import customs duties and taxes and/or other
costs and risks at the buyer’s end, for example the trade terms DEO (Delivery Ex
Quay) and DDP (Delivered Duty Paid)
Quite often, the charges and expenses at the buyer’s end may cost more to the
seller than anticipated. To overcome losses, hire a reliable customs broker or
freight forwarder in the importing country to handle the import routines.
Similarly, it would be best for importers not to deal in EXW (Ex Works) which
would hold the buyer responsible for the export customs clearance, payment of
export customs charges and taxes, and other costs and risks at the seller’s end
TYPES OF SHIPPING BILL
Based on the incentives offered by the government, customs authorities have
introduced three types of shipping bills:-
DRAWBACK SHIPPING BILL: - Drawback shipping bill is useful for
claiming the customs drawback against goods exported.
DUTIABLE SHIPPING BILL: - Dutiable shipping bill is required for
goods which are subject to export duty.
Export procedure and Documentation
DUTY-FREE SHIPPING BILL: - Duty-free shipping bill is useful for
exporting goods on which there is no export duty.
In order to facilitate easy recognition and quick processing, following colours have
been provided to different kinds of shipping bills :
Types of goods By Sea By Air
Drawback shipping bill Green Green
Dutiable shipping bill Yellow Pink
Duty-Free shipping bill White Pink
CONTENTS OF SHIPPING BILL
Name and address of the exporter.
Name and address of the importer.
Name of the vessel, master or agents and flag.
Name of the port at which goods are to be discharged.
Country of final destination.
Details about packages, description of goods, marks and numbers, quantity
and details of each case.
FOB price and real value of goods as defined in the Sea Customs Act.
Whether Indian or foreign merchandise to be re-exported
Total number of packages with total weight and value.
SIGNIFICANCE OF SHIPPING BILL
a) Shipping bill is the main customs document, required by the customs
authorities for granting permission for the shipment of goods.
Export procedure and Documentation
b) The cargo is moved inside the dock area only after the shipping bill is
duly stamped, i.e. certified by the customs.
c) Duly endorsed shipping bill is also necessary for the collection of
export incentives offered by the government.
d) It is useful to the Customs Appraiser while determining the actual
value of goods exported.
to the buyer, the shipping company may issue a separate certificate
for payment of the freight charges instead of declaring on the main
transport documents. This document showing the freight payment
is called the freight certificate.
Insurance Premium Certificate: this is the certificate issued by the
Insurance Company as acknowledgement of the amount of
premium paid for the insurance cover. This certificate is required
by the bank for arriving at the fob value of the goods to be declared
in the bank certificate of realisation.
Combined Certificate of Origin and Value: this certificate is
required by the Commonwealth Countries. This certificate is
printed in a special way by the Commonwealth Countries. This
certificate should contain special details as to the origin and value
of goods, which are useful for determining import duty. All other
details are generally the same as that of Commercial Invoice, such
as name of the exporter and the importer, quality and quantity of
the goods etc.
Export procedure and Documentation
Customs Invoice: this is required by the countries like Canada,
USA for imposing preferential tariff rates.
Legalized Invoice: this is required by the certain Latin American
Countries like Mexico. It is just like consular invoice, which
requires certification from Consulate or authorised mission,
stationed in the exporter’s country.
PROCEDURE OF EXCISE CLEARANCE:
The common procedure of excise clearance under “bond” and under “rebate” is
discussed as follows:
Preparing of Invoice: The export goods have to be cleared from the factory
under invoice. The invoice contains details like name of the exporter, value
of goods, excise duty chargeable, etc. The invoice is to be prepared in
triplicate. In case of export under Bond, the invoice should be marked as
“For Export without payment of duty”. In addition to the invoice, a
prescribed for ARE 1 has to be filed in by exporter.
Filling up of ARE-1 form (Annexure-20): The ARE-1 form needs to be
filled in four copies. A fifth (Optional) may be filled in by the exporter,
which can be used at the time of claiming other export incentives. The ARE-
1 copies have distinct color for the purpose of verification and processing.
Application to Assistant Commissioner of Central Excise (ACCE): The
exporter has to make an application to ACCE regarding the removal of
goods from the factory/warehouse for export purpose.
Export procedure and Documentation
Information to Range Superintendent of Central Excise (RSCE): The
ACCE will inform the RSCE under whose jurisdiction the goods are
intended to be cleared for export
Deputation of Inspector: The RSCE will then depute an inspector to clear
the goods, either at the factory or warehouse, and in certain cases at the port.
Processing of ARE-1 Form: The Excise Officer/Inspector will make
endorsement on all copies of ARE-1. The handling of ARE-1 Form is done
as follows:
o The inspector returns the original and duplicate copies to the
exporter
o The triplicate copy is sent to officer (ACCE or Maritime
Commissioner (MCCE) to whom bond was executed or letter of
undertaking (LUT) was given. This copy can also be handed
over to the exporter in a tamper proof sealed cover to be
submitted to ACCE/MCCE.
o The 4th copy will be retained by the excise inspector.
o The 5th copy is also handed over to the exporter.
o At the time of export, original, duplicate and the 5 th copy
(optional) will be submitted to customs officer. The customs
officer will examine these copies and then export will be
allowed.
o The customs officer will then make endorsement of export on
all copies of ARE-1. He will cite shipping bill number and date
and other particulars of export on ARE-1.
o The original copy and quintuplicate (optional) will be returned
to the exporter. The duplicate copy will be sent directly to the
Export procedure and Documentation
ACCE\MCCE i.e. excise officer with whom bond was executed
will get 2 copies, one from RSCE (or excise inspector) when
goods are cleared from factory and other Custom Officer after
export. This will enable him to keep track to ensure that all
goods cleared from factory or warehouse without payment of
duty are actually exported. In case of export after payment of
duty, under claim of rebate, the basic procedure is same as
above, except that the triplicate copy (by excise inspector) and
duplicate copy(by customs officer)will be sent to the officer to
whom rebate claim is filed. If claim of rebate is by electronic
submission, these copies well be sent to excise rebate audit
section at the place of export.
Refund or Release of Bond: The exporter should make an application to the excise officer for refund or release of bond. The application must be supported by original copy of ARE-1 form. The excise officer crosschecks the original copy of ARE-1 form and the duplicate and triplicate copies of ARE-1 form, which he had received earlier. If the copies match, then refund is given or the bond is released
Export procedure and Documentation
TYPE OF CONTAINER USED IN TYPE OF CONTAINER USED IN SHIPMENTSHIPMENT
TANKSTANKS OPEN TOPSOPEN TOPSROOLTRALERSROOLTRALERS
DRY CONTAINERDRY CONTAINERFLAT RACKSFLAT RACKS
HIGHCUBEHIGHCUBEBULKERSBULKERS
REEFERSREEFERS
Export procedure and Documentation
PROCEDURE OF EXIM
Export procedure and Documentation
Export procedure and Documentation
EXPORT PROCEDURE AND DOCUMENTATION
Export procedure and Documentation
In India, ships transport more than 90 per cent of the cargo. It therefore interesting
to study the export processed by ship documentation related to it.
Processing of an export order-----
i. Exporter operation starts with the receipt of enquiry by the exporter from
importer. Bar on the enquiry exporter submits his offer giving complete
details of products technical specific price delivery payment terms etc.
ii. After the process negotiations importer sends a purchase order follow by letter
of credit (if applicable).
iii. The exporter manufactures the goods according to the specification given in
purchase order.
iv. As soon as the goods are ready the exporters invites the representative of
Export inspections agency (EIA) for pre shipment inspection and obtain the
certificate of inspection.
v. After that, the exporter prepared following documents:----
INVOICE
PACKING LIST
ARE1 FROM EXSICE DEPARTMENT
MARINE INSURANCE POLICY
COPY OF PURCHASE ORDER / L/C
vi. Above those documentation sends to CHA by exporter.
Export procedure and Documentation
vii. Based on these documents CHA agent completes the octroi formalities, obtain
port permit and prepare shipping bill which is a customs documents.
viii. Custom department check the export cargo on the basis of information
provided on the shipping bill. If satisfy then cargo allow to loaded on the
board of ship.
ix. The shipping line gives mate receipts to CHA agents after the payment of
ocean freights and port due obtains the bill of lading (B/L) from shipping
line .B/L is a proof of dispatch of cargo and also a negotiable document.
x. After that, CHA agent send various documents back to exporter which is—
Customs attested invoice
Copy of shipping bill
Full set of non board bill of lading.
Copy of purchase order or L/C
Copies of ARE1 Form
SDF form
Export procedure and Documentation
xi. After that the exporter submitted above these documents for negotiation to the
bank which include :----
Commercial invoice
Packing list
SDF form
Original copy of purchases order
Certificate of origin
Bill of exchange
Shipment advice
After that, bank scrutinizes these documents and if found correct make
payment to exporter against documentations.
Export procedure and Documentation
Export procedure and Documentation
EXPORT DOCUMENTATION TRANSPORT DOCUMENT
EXCHANGE CONTROL DOCUMENT.
PAYMENT DOCUMENT.
MISCELLANEOUS DOCUMENT
CUSTOMS DOCUMENT
CERTIFICATE
INVOICE
Export procedure and Documentation
EXPORT INVOICE
ELEMENT OF EXPORT INVOICE:-
Exporter
Consignee
Invoice No. and Date
Exporter Ref.
Buyer order no and date
Other reference
Buyer (other than consignee)
Country of origin of goods
Country of final destination
Terms of delivery and Payment
Pre-carriage by
Place of receipt by pre-carrier
Vessel/ Flight no.
Export procedure and Documentation
Port of loading
Port of discharge
Final Destination
Marks and Nos. / No & Kind of pkgs.
Item code
Description of goods
Net weight
Gross weight
Quantity
Rate CIF EURO
Amount CIF EURO
Amount in words
Declaration:
Authorised signature
Export procedure and Documentation
Export procedure and Documentation
Export procedure and Documentation
Step 12
Export procedure and Documentation
Export procedure and Documentation
Export procedure and Documentation
Bill of Lading
Export procedure and Documentation
REFERENCES – INTERNET
www.uflexltd.com
www.google.co.in
www.ask.com
www.exit.net
Export procedure and Documentation
THANKS