Winter Project Report (PGDFT)

7/28/2019 Winter Project Report (PGDFT)

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A

Project Report

on

EXPORT PROCEDURE AND DOCUMENTATION

AT

SARDA ENERGY & MINERAL LTD.

SUBMITTED TO

UNIVERSITY OF PUNE

BY

Ku. Kirti Tiwari

PGDFT(2010-2011)

Sinhgad Technical Education societys

Sinhgad Institute of ManagementS.No. 44/1,off sinhgad Road, Vadgaon (BK),

Pune-411 041Ph: 020-2435 8380/2435 8355 Fax: 020-2435 4835 Mob: 9881742711

Email:[email protected]
mailto:[email protected]:[email protected]:[email protected]


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CERTIFICATE

This is to certify that Miss. Kirti Tiwari of Sinhgad Institute of Management has

successfully completed the project work titled as Export Procedure And

Documentation at SARDA ENERGY & MAINERALS LTD. in partial

fulfilment of requirement for the award of the Post Graduate Diploma in Foreign

Trade to University of Pune ,prescribed by the Sinhgad Institute of management.

This project is the record of authentic work carried out during the academic year

2010-2011.

She has worked under our guidance and direction. Her work is found to be

satisfactory and complete in all respect.

Dr. Daniel Penkar Prof. Mangalgouri Deshmukh

(DIRECTOR) (PROJECT GUIDE)


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ACKNOWLEDGEMENT

It gives me immense pleasure in presenting this project. It is my pleasant privileges to thank all

those who helped me in moulding and shaping my project. Without their guidance, cooperation

and best wishes it would not have been possible for me to complete my training and report

satisfactorily.

I feel indebted to my project coordinatorMr.Manish Mishra (DGM Marketing) and express

my sincere thanks to:

Mr. Sujit Ojha, HOD (HR)

Mr.Deena Nath Verma,Sr Officer(Sales &Marketing)

Mr.Yogesh Sharma Officer (Sales and Marketing)

Mr.Kunal Parmar,Officer(Sales &Marketing)

whose selected views, morale support and proper guidance has been possible for bringing out this

project report in a scheduled time and with a nice get up and for all the valuable support

throughout the training period and successful completion of this report.

Lastly, a big thanks to all those who helped me sparing time even through their busy schedule and

for being kind enough to help me whenever needed them.


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PREFACE

Since the last few years the environment of the business has completely changed. The modern

business placed on a very complex and intricate environment, the constraints and opportunities

provided by the nature of the economy and the economic system, political and legal framework,

social system, geographical and demographic factors etc. have profound impact on the business.

Many developments have taken place during the last one and half decade, with the opening of

Indian economy through globalization and rapid industrialization. Developments have taken place

in almost all the sector, via: the Technology sector, Finance sector, Communication sector, Health

sector, Engineering sector, etc.

Keeping all the drastic changes in mind, our recognized institute SINHGAD

INSTITUTE OF MANAGEMENT, PUNE, has outlined a winter internship program to gather

various information from different industries. It facilitates the students to understand and grasp

quickly. It increases the skills, knowledge, team spirit and above all the potentiality of the students

to keep pace with the rapid growth of industrialization.

The purview of our training is to learn much knowledge from practical studies

and not merely from theoretical studies.


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INDEX

Sr. No. Page No.

1. INTRODUCTION 6

2. COMPANY PROFILE 11

3. EXPORT OF FERRO ALLOY 20

4. EXPORT DOCUMENTS 41

5. RESEARCH METHODOLOGY 48

6. FINDINGS 50

7. LEARNINGS 51

8. SUGGESTIONS 52

9. CONCLUSION 53

10. APPENDIX 54

11. ANNEXURE 55


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Statement of problem

To study the export procedure of Ferro alloys in SEML and to know the documents used in export

of Ferro alloys.

Objectives of study

To learn the practical aspects of the international trade in order to get clarity over the

theoretical concept.

To understand the procedure of the export documentation that prevails in the

organisation.

To acquire on the hand experience in the procedural aspects of export documentation.

Export operation and custom clearance procedure involved in it along withdocumentation procedure.


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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.


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Executive summary

To reach the zenith alone, attempt is proved to be failure most of the times. Although todays

business practices have evolved out of the past but there are complex practices, which are

followed. The business market place environment has become very dynamic and changing very

fast. The year 2010 saw unprecedented volatility and turmoil in the global markets. Even thoughthe scale of the crisis seen in 2010 was beyond anybodys imagination, I am pleased that the team

at SEML posted its fifth consecutive year of record sales. SEML has created a niche for it in the

Indian and the INTERNATIONAL Market with the help of focus on quality, services to customers

and best business policies.

The Winter I nternship Programwhich commenced on 15thDec 2010and concluded

on 15thJan 2011came along with a lot of learning. As a brush up with the corporate world, I got

to analyze the mindset of people in these recessionary times, the work culture, the difficulties

faced by them apart from the learning about the project, functioning of organizations, developing

skills needed as a future manager.

The knowledge & skills gained here gave me a deep insight of the corporate world, its

functioning, and effect of external world on the industry.


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COMPANY PROFILE


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Vision-

To be a globally respected energy and minerals company creating superior value for our

stakeholders on a sustainable

Values-

Our values are reflected in:

Quality-We believe in setting benchmarks through the quality of our products and

services.

Customer focus-We believe in high customer satisfaction and becoming a part of our

customer's success story.

People -We believe in our people and constant upgradation of their skills and

leadership capabilities.

Integrity And Ethics-We believe in our commitments and strive to achieve high ethical

standards.

Corporate Social Responsibility- We believe in caring for our environment and our

communities.


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Quality statement

SEML at all levels shall continually strive to provide consistent and reliable, Quality

products & services to its external and internal customers and try to exceed their

expectations. This goal shall be sustained, through committed teamwork and continual

improvements in the.

Quality Objectives

Continual improvements in productivity and process capabilities.

Continual enhancement in quality of all resources.

Ensure Zero defect in each and every area of operation.

Achieve customer delight by offering value for money.

Achieve status of preferred Business Associate.

SEML takes pride in its product quality and the timeliness of its delivery

schedules. The Sponge Iron & Steel manufacturing facilities, Power & Ferro Alloys

manufacturing facilities of the company are ISO 9001:2008 certified. All the plants are

equipped with a digital control system. The advanced microprocessor based control allows

for a complete automated functioning, ensuring a high quality of output. Strict metallurgical

control is maintained at every stage of production, from receipt of raw materials to dispatch

of finished products. The Company has a dedicated Quality Assurance Department with a

well equipped laboratory and trained technicians to monitor the process and materials at

different points.


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Corporate Social Responsibility

Utilization of solid waste and fly ash to manufacture bricks.

SEML has adopted 270 schools for tribal children in naxal affected area of

Rajnandgaon district.

Running Ambulance (Mobile dispensary) for staff and remote villagers.

Providing infrastructure facility to govt. schools.

Providing practical exposure to students from engineering colleges.

Planting of over 1 Mn trees to create green belts.

Awards

ISO 9001:2008 Certificate from ABS quality evaluation, USA

CERTIFICATE of recognition from (USP)VIZAG

Star export house from Govt. of India, Ministry of Commerce

Best exporter award

CONCOR excellence award for best performance in exports.


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Upcoming Projects

The company is planning to open an Ferro Alloys plant in Vishakapatnam.

A hydro power plant at Sikkim is also in pipeline.

Group Companies

Sarda Energy & M inerals Hong Kong L imited (SEMHL)- SEMHL was incorporated

as a wholly owned subsidiary of SEML in Hong Kong during 2007-08. The primary focus

of the company would be to establish a strong international trading arm. China being a

major manufacturing hub and an important destination of international trade, a

representative office has also been set up in Beijing.

Sarda Global Venture Pvt. L imited-Another wholly owned subsidiary of SEML was

established in Singapore during 2007-08 for business related acquisitions. The company

will actively seek mineral resources acquisitions internationally.

Parvatiya Power Private Limited -Parvatiya Power was incorporated for

implementation of hydro power plants. Presently, 4.8 MW Loharkhet Hydro Power

Project has been installed and commissioned in February 2008. The Project is located near

village Munar of Bageshwar district in the state of Uttaranchal. It is a run-of-the-river

scheme for power generation by exploiting potential of Sarju River, a tributary of Kali

Ganga River.


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Chhattisgarh Hydro Power Private L imi ted- The company was established in the year

2005 for setting up a 24 MW Gullu Hydro Power Plant in the state of Chhattisgarh. It has

also identified other potential sites in the state and is planning to develop the same. The

Company is currently involved in land acquisition, obtaining statutory clearances and

identifying contractors for civil and hydro mechanical works.

Madhya Bharat Power Corporation Limited- The Company was incorporated for

implementation of 96 MW Rongni Chu hydro power project in Sikkim. The project

envisages utilizing the flow of the Rongni Chu, a tributary to the Teesta River for the

generation of power in the run of the river scheme. The Company is currently in theprocess of identifying contractors for civil and hydro mechanical work of the project. The

work of land acquisition and all project clearances are in full swing.

Raipur Infrastructure Company Ltd.-The JV Company was incorporated for

operating a private railway siding for unloading the raw materials being transported

through the railways. Our stake in the company is 33 percent.

Madanpur South Coal Company L td.- The JV Company has been allotted a coal

block in the Madanpur area of Chhattisgarh in consortium. The company is in the final

stages of receiving of various clearances and permissions to commence its operations.

SEML has 24.91 percent share in the joint venture.

Chhattisgarh I nvestments L td.- Chhattisgarh Investments Ltd. was incorporated two

decades ago as a closely held public limited company. The Company has interests in

investments, socio-forestry and horticulture, with over 800 acres agricultural estate at

Kharora, about 40 Kms. from Raipur. About one million trees of various species such as

Teak, Hybrid Eucalyptus, Sobabul, Khamar, Bamboo etc have been planted.


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Chhattisgarh Br icks Private L td.- The company has been formed to manufacture fly-

ash bricks utilizing fly-ash generated from the company's captive power plant. The

company is yet to commence business activity.

Products Or Manufacturing Units-

Ferro Alloys

Steel

Sponge iron

Mining

Eco bricks

TMT Bars

a.Ferr o Al loys-SEML has emerged as most preferred Ferro Alloys supplier in the Indianand international market. The company is one of the largest exporter of manganese based

Ferro Alloys products in India and has been conferred as star exporter house status bygovt. of India. our major products include high carbon Ferro manganese and Silico

manganese.

b.Steel-SEML has induction furnace of 2*6 MT AND 4 *15 MT.IT also possescontinuous casting billets manufacturing facility. It sells high quality TMT bars under the

brand name HYTECH TMT produced from one rolling mill in Nagpur. one rolling mill inRaipur is in pipeline.


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c.Sponge iron-SEML has 2*100 TMD and 2*500 TPD rotary kilns with state of the artdigital control system and consistence adherence to strict quality control parameters.

d.Mining- for SEML to become the lowest cost producer uninterrupted supply of RawMaterial is of the most imp. Thus it has taken steps to either own or strengthen the supply

chain of critical inputs such as ron ore, coal and manganese ore. It has Iron ore mines-

SEML is mining iron ore from their own mines(20 TMT) in Rajnanadgaon (C.G) COAL

Mines-it has acquired and started exploration of 67 MMT coal mines at Raigarh (C.G).


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Export of ferro Alloy


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Ferro Alloys

In SEML Ferro Alloys div. is very important as it contributes 60% of the total

profit(approx).The marketing dept at SEML has a quality objective .i.e. good customer

care and prompt service

To study how Export of Ferro Alloys is done we have divided Ferro Alloys like-

Introduction

Role of Ferro Alloys

Demand driver for Ferro Alloys

Types of Ferro Alloys

Ferro Alloys produced at SEML

Ferro Manganese (FeMn)

Silicon Manganese(SiMn)

FeMn & SiMn(definition)

Chemical composition

Uses

Sales

Production


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Pricing

Business process

Major competitors

Target market

Major consumer and producer.

Problems

Solution

USP of SEML


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Ferro Alloys

SEML is one of the largest manufacturer and exporter of Premium Grade Ferro Alloys

from India. The growth in steel industry, where Ferro Alloys are used as additives, has

pushed the demand of Ferro Alloys globally. Ferro Alloys are used as additives in

steelmaking as de-oxidants and as alloying agents. These are added in steel production

process no only for de-oxidation but also for grain size control as well as for improvement

in the mechanical properties of steel. Depending upon the process of steelmaking and the

type of steel being made, the requirement of Ferro Alloys varies widely. The product

mix of the Ferro Alloy industry consists of Ferro Manganese, Silico Manganese, Ferro

Silicon, FerroChrome and ChargeChrome calledBULK FERROALLOYS.

Role of Ferro Alloys

Ferro Alloys are used in steelmaking and consists of less than one percent of the total raw

materials required for steel production. The total installed capacity of Ferro products

Alloys in India in 2007-08 was 3.64 MT for bulk and noble Ferro Alloys together as per

Indian Ferro Alloys Producers Association (IFAPA). The industry entails a capital

investment of intermediaries to the steel industry.over Rs. 5,000 crore and it exported

Ferro Alloys worth Rs. 4380 crore in 2007-08.


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NOTE-

AS a result of quality and reliability we have become a major player in the Ferro Alloys

industry within a short period.

Based on the potential performance it has got STAR EXPORT HOUSE status from

Govt .of India.

ferro alloys

ferromanganese

(FeMn)

silicomanganese

(SiMn)


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Note-

Raw material(i.e manganese ore) is imported from South Africa and Australia.

SEML is one of the largest importer of Mn ore in India.

1 ton stainless steel contains 13 kg FeMn and 1 ton mild steel contains 13 kg SiMn.

Cost of producing FeMn is less than cost of producing SiMn because of less power

consumption in FeMn

SEML is exempted from sales tax till 2012.

SEML produces high carbon FeMn

Uses-

FeMn is used in making stainless steel like utensils etc.

It is used in making automobile parts

It is used in making railway tracks.


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Silicon manganese-

Silicon manganese (SiMn), a Ferroalloy with high contents of manganese and silicon, is made

by heating a mixture of the oxides manganese oxide (MnO2), silicon dioxide (SiO2), and iron

oxide (Fe2O3), with carbon in a furnace. They undergo a thermal decomposition reaction. It is

used as a deoxidizer and an alloying element in steel.

The standard grade silicon manganese contains 14 to 16% of silicon, 65 to 68% of manganese

and 2% of carbon. The low carbon grade SiMn has carbon levels from 0.05 to 0.10%.

Chemical composition-for producing 1 tn SiMn the specifications are

silico manganese

Content Exportquality Domesticquality

Manganese(Mn) 65%(min) 60%(min)

Silicon (Si) 16%(min) 15%(min)

Carbon(c) 2%(max) 2.5%(max)

Phosphorous(P) 0.3%(max) 0.35%(max)

Sulphur(S) 0.03%(max) 0.05%(max)

Mn ore 2700 kg 2700 kg

Mn(input) 850-900 kg 840-850 kg

C 380-390 kg 360-370 kg

Power 4.3MW 4.0 MW

Dolomite 300 KG 300 kg

Quartz 200-250 kg 200-250 kg


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Note-

The slag of Ferro manganese is used in making silico manganese. so every steel company

produces both of them.

Cost of producing Ferro manganese is less than silico manganese.

SEML produces low carbon SiMn.

Uses-

SiMn is used in mildsteel.

SiMn is used in making TMT,billets,WRM

Basically SiMn is used in making structures as it is very hard.

SALES-SEML sells FeMn and SiMn at domestically and internationally.

ferro alloyssales

domestic

exports

direct

indirect


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F ig.Ferro Al loys Sales

Production- the plant has 5 furnances with the capacity of 9 MVA each

is capable of producing 66000 TPA.

0

500000000

1E+09

1.5E+09

2E+09

2.5E+09

3E+09

3.5E+09

4E+09

4.5E+09

FY 08-09 FY 09-10

SALES OF FERRO ALLOYS

SALES OF FERRO ALLOYS

34000

36000

38000

40000

42000

44000

46000

FY08-09 FY09-10

PRODUCTIION OF FERRO ALLOYS

PRODUCTIION OF FERRO

ALLOYS


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Note-

The production in 09-10 is very low because 09-10 is still running.

Pricing-

Pricing of Ferro Alloys is of 2 types-

Export pricing

Domestic pricing

1.Export Pricing-price of Ferro Alloys for exports is of 3 types

Factory based pricing

FOB based pricing

CIF based pricing

1 .A-Factory based pricing-This type of pricing is done when the buyer will bring his own

containers into the factory and take the stock or material .so we will only charge him the price

of the material.

1 .B- FOB based pricing-FOB stands for free on board.FOB is an inco term. Inco term are

international commercial terms given by in International Chamber of Commerce (ICC).FOB

stands for free on board that means the exporter will include the cost of delivering the goods to

the ship in the price.

1 .C- CI F based pricing- CIF stands for cost/insurance /freight here the seller or exporter

price will include the cost of product, insurance of goods & freight cost.

Note-

1.I nco terms-

To avoid conflicts and difficulties, importers and exporters or buyers and sellersmust have

a common understanding of the terms and conditions under which they trade. Incoterms


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2000 in a contract determines the obligations of the buyer and the seller and greatly

contributes towards eliminating causes of disagreement. Incoterms apply only if incorporated

in the contract of sale or if they are, for example, mentionedin the offer, the sales conditions,

the purchase order, the confirmation of an order or if they are stipulated by the parties in

separate agreement.

Group Description

E -The seller only makes the goods available to the buyer at the sellers

premises.

F- The seller delivers the goods to a carrier or place appointed by the buyer.

C -The seller has to contract at his costs for carriage (and insurance for CIF

and CIP).

D- The seller must assume most costs, obligations and risks needed to bring

the goods to the place of destination

(except import customs clearance and un-loading at the final destination).

Table-The structur e of I ncoterms 2000

2.Freight-

Definition:The price paid a common carrier for the carriage of goods.Ocean freights are the

price paid for carrying goods from one place to another.


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Business Process-

1. Domestic Business ProcessENQUIRY

OFFER

NEGOTIATION

CONTRACT

PURCHASE ORDER

ORDERCONFORMATION

SALE ORDER

PAYMENT RECEIVED

TRANSPORTATION'

INVOICE IS FORMED


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Expor t Business Process-

enquiry

offer

draft contract

draft L/C

scruntiny of l/c

final contract and l/c

supply schedule

shipping line

concor nag/raipur

dispatch from plant

Custom clearance

draft

final l/c documents

payment monitoring

bill processing

EP copy releaing & BRC

proof of exportdocuments

DEFB/TRA/VERIFICATION

customer database

enquiry updation


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In case of exports 5 things are very imp.they are-

Stock

Shipment date

Price

Payment terms

Incoterms

There are 3 governing bodies which plays a major role in exports.they are-

DGFT-it gives us the permission to do exports

Excise dept-whiledoing exports we have to submit all the documents to the excise dept.

Custom dept-custom dept takes care of our goods.

Major Competitors-

For domestic level-

Tata Iron And Steel Joda Orissa

Navbharat Ferro Alloys Ltd ,Polacha,A.P

Methan Alloys Ltd. ,Durgapur,West Bengal

Impex Ferro Tech Ltd,Burdaman ,West Bengal

Prakash Industries Ltd,Champa,C.G

Hira Group,Raipur,C.G

Corporate ISPAT Pvt .Ltd, Durgapur,West Bengal

Shri Girija Smelters Pvt. Ltd Raipur C.G Cosmic FerroAlloys Durgapur,West Bengal

For Export L evel-

Tata Iron And Steel Joda Orissa

NavbharatFerro Alloys Ltd ,Polacha,A.P

Methan Alloys Ltd. ,Durgapur,West Bengal

Cosmic Ferro Alloys Durgapur,West Bengal


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Note-

At international level Ukraine is the major competitor for India.

Target Market-

TARGET MARKET DOMESTIC EXPORTS

FERRO ALLOYS Stainless steel producers It depends on demand

USP of SEML-

Good quali ty-SEML is known for their quality.they never compromise on their quality.

there is a quality policy of SEML which is placed every where in SEML to always

remember that always deliver best quality to customers.

Prompt service-the second imp factor which differentiates SEML From Its

Competitors is prompt service.

Goodwill-for a organization to be successful trust of the customers s very imp. SEML

has created a goodwill in the market. the customers have a lot of trust in SEML bec

they know that SEML will give them the best quality.in case of Ferro Alloys domestic

SEML price is taken as a base price in the market.bec of the quality the prices of SEML

is little high then its competitors but then also their sales are not affected.

Problems faced-

Availability of labor

Train connectivity

Container problem


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Solutions-

To solve the labor problem SEML is planning to bring automatic machines.

Major consumer and producer-

Ferro alloy Domestic Export

Largest producer West Bengal Ukraine

Largest consumer Western region EU


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EXPORT PROCEDURE AND DOCUMENTATION


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DOCUMENTS

USED

IN

EXPORT


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DOCUMENTS OF EXPORT

Documentation refers to the process of providing evidence (to document something) or to the

communicable material used to provide such documentation (i.e. a document). Documentation

may also refer to tools aiming at identifying documents or to the field of study devoted to the

study of documents and bibliographies.

Documents in export process- In case of exports documentation plays a very imp role

because they are the only proof their.all the transactions like delivery of goods,custom

clearance ,payment are done based on documents. in exports bill of lading is the most

important document .on the basis of b/l L/C is formed.L/C stands for letter of credibility. It is

the guaranty of payment.

The documents required in export process are-

Draft-It is prepared by the sellerit contains all the basic information it is prepared for

the seller in the initial stage.

Commercial I nvoice-is a document which contains all the information like-

a) name & address of the exporter i.e the selller

b) consignee- i.e the bank

c) notify party- i.e the buyer

d) quantity & price of the stock.

Packing list-it contains all the information present in commercial invoice except

the price.it is prepared by the seller and issued to the buyer.


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Bil l of lading (B/L)-It Is Also Called Non-Negotiable Sea Way Bill. It is the most

imp document in the export process. On the basis of (B/L) (L/C) is made. (B/L) is

issued by the shipment line at the time ofexport.

Letter of credit (L /C)- Letter of Credit (L /C)also known as Documentary

Creditis a widely used term to make payment secure in domestic and international

trade. The document is issued by a financial organization at the buyer request.

The International Chamber of Commerce (I CC) in the Un if orm Custom and

Practice for Documentary Credit (UCPDC) defi nes L /C as:

" An arr angement, however named or descri bed, whereby a bank (the I ssuing bank)

acting at the request and on the instructions of a customer (the Applicant) or on i ts

own behalf :

1. Is to make a payment to or to the order third party ( the beneficiary ) or is to

accept bills of exchange (drafts) drawn by the beneficiary.

2. Authorised another bank to effect such payments or to accept and pay such bills of

exchange (draft).

3. Authorised another bank to negotiate against stipulated documents provided that

the terms are complied with.


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Parties to Letters of Credit

Appl icant (Opener): Applicant which is also referred to as account party is normally a

buyer or customer of the goods, who has to make payment to beneficiary

I ssuing Bank (Opening Bank): The issuing bank is the one which create a letter of

credit and takes the responsibility to make the payments on receipt of the documents

from the beneficiary or through their banker. The payments has to be made to the

beneficiary within seven working days from the date of receipt of documents at their

end, provided the documents are in accordance with the terms and conditions of the

letter of credit.

Beneficiary: Beneficiary is normally stands for a seller of the goods, who has to

receive payment from the applicant. A credit is issued in his favour to enable him or his

agent to obtain payment on surrender of stipulated document and comply with the term

and conditions of the L/c.

If L/c is a transferable one and he transfers the credit to another party, then he is

referred to as the first or original beneficiary.

Advising Bank: An Advising Bank provides advice to the beneficiary and takes the

responsibility for sending the documents to the issuing bank and is normally located in

the country of the beneficiary.

ARE-ARE stands forApplication for Removal of Excisable Goods. It is issued by

the exporter (seller) that we have sent x amt of goods acc to your specification.5

copies of ARE is made.2 copies is sent to the custom dept and 3 copies is sent to the

excise dept.

I nspection certif icate or Certi fi cate of qual ity-in case of dealing with the new parties

when the buyer wants to verify that the quality is acc to their requirement. so the buyer

will appoint the inspection agency. And the inspection agency will issue the inspection

certificate. In case of regular customers if they didnt appoint the inspection agency.

The seller will give them the quality certificate.


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GSP-GSPstands forGeneral ized System Of Preferences. it is issued by the Govt Of

India to the exporter. It is like a quality certificate.

GR Form-it acts like a proof of that the exporting goods are fine. we get this document

after we file the shipment bill

Annexure-it is issued and signed by the customs and contains the info like-

a) Name of the company i.e the buyer

b) Invoice no

c) Destination

d)

Description of goodse) No. of containers

Shipment Advice-it is issued by the seller to the buyer.


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Research Methodology

Before we start our research, it is necessary to have at least some idea of what to do? This is

probably the most difficult and yet the most important component of the research project.

Without being clear about what we are going to research it is difficult to plan how to research?

Therefore formulating and clarifying the research topic is the starting point of any research

project.

Taking into account the above matter, the research topic is formulated as such;

Export procedure and documentation

Research Objectives

The research may begin with a general focus as a base from which to right a set of research

objective. Objectives is more generally acceptable as evidence of the researchers clear sense of

purpose and direction. A research objective requires rigorous thinking which derives from the

use of more formal language.

Therefore the broad objective of the study is:

To analyse the dispatch of Ferro Alloys.

SAMPLING

Generally when filled studies are undertaken in practical life, consideration of time and cost

are important issues that need to be kept in mind. This results in researchers selecting only a

few items as sample, out of those millions.


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SAMPLE TECHNIQUE

The items which are selected is called sample and the process which involves in selecting the

sample is called Sample Technique. In this research, technique which is used for the collection

of data is judgmental sampling. Before starting, Rational judgment is taken such that sample

selected is the representative of the entire transportation under logistics.

SAMPLE SIZE

This refers to the number of items to be selected. It should be neither excessively large nor too

small, but should be optimum. The optimum sample is one which fulfills the requirement of

efficiency, representatives, reliability and flexibility.

The samples which are selected for the information collection are:-

Monthly dispatch figure of last three years.

Time taken by each truck for loading.

Single truck/ Container each day for 5 days.

Destination wise rates of transport for last one year.

Performance rating of last quarter of 2010.


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FINDINGS

From the entire study on total loading cycle time, it is observed that the total time taken by the

trailer (including the empty container) and truck exceed the normal time frame. The normal

time taken is more than 5 to 6 hrs. This variation ranges from 5 hrs to 22 hrs. There are more

areas that have taken in to consideration which create delay in delivery. These are as follows:-

Late preparation of documents leads to late delivery of loaded trucks. The dispatch

documents generally release after 4o clock in the second half of the day and thereforeeven the trucks are fully loaded it waits for the documents to get , before leaving the

factory.

As per late preparation of certificate of test by quality assurance department, the

entire documentation process moves slow and make delay.

Delay in arrival or in time placement of trucks and trailers.

The way which involves the loading cycle is so complicated that even if the transporter

wants to arrive quickly, it takes enough time. The trucks generally wait in queues because the trucks which have arrived earlier are

there for loading the material / goods at loading point.

On few occasion printing and painting of reels is done after placement of lorry.

The loading cycle time in the whole process is greater and it is a lengthy procedure this

time needs to be reduced.


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Learning

Only theoretical knowledge is of no importance, practical knowledge is also very imp.To succeed

Be patience

Small things are also very imp. In business.

Good communicatons skills is must in todays scenario

A mentor is needed.

Good working environment and supportive colleagues are very important for good

work.

Maintain discipline, etiquettes & punctuality

Be ready with plan but be prepared to face unknown

Knowing your employer & employees

Taking opinions from them is very important

Interaction with the executives and employees in any organization is very important

Enjoy your work

Be optimistic

Be as simple and alert as possible

Never compromise on quality

Goodwill is very important for a successfulful business.


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Recommendations/Suggestion

The company should centralise inventory in one place and use fast transportation to

fulfil orders. It reduces warehousing and inventory duplication cost.

Increase the manpower in the department.

The company should shorten the order-to-payment i.e. lapse time between orders

receipt, delivery and payment.

The company should manage effective logistics information management because it

helps to link channel partners and share information to make better logistic decision.

Information flow such as customers orders, billing, inventories label and customer data

are closely linked with channel performance.

A visit to the plant should be arranged for every intern or trainee

Ms office should be provided in the systems

International news should be provided to the staff

A monthly review should be done with all the clients and staff to figure out the

problematic areas so that we can find out the solutions which helps s to improve.


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CONCLUSION

After understanding the ground realities of foreign/ international trade it is crystal clear that the

service is a major factor and should be kept in mind at any moment of time. Transparency in

work, proper communication, punctuality, systematic recording of documents are some of the

required and necessary qualities for any of the CHA. A small mistake by agent may loose

client business. Many of the exporters dont even mind to pay a little extra for better services,

so better service is the priority of any Exporter.

Client always insist on keeping them informed about the status of the consignment, this is quite

obvious because he also need to inform his customer about the shipment status. Good made

with client always helps in strong relations.

Accuracy in document is very important. Exporters are required to give a copy of invoice and

packing list. A standard format of these document is always preferred as it help CHA to

understand the information in a correct and broader manner, which ultimately saves time in the

process.

To understand the total process and document one should need basic knowledge of the subjects

like EXIM policy, shipping, insurance etc. If someone has proper knowledge of these areas

then it will be easy for him/her to work in the field.


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Appendix-

I nternet sources-

www.SEML.co.in

www.google.co.in

www.steelonthenet.com

www.ifapaIndia.org

www.wikipedia.co.in

www.undp.org

www.steelorbis.com

www.Ferro-Alloys.com

Documents from the organization
http://www.seml.co.in/http://www.seml.co.in/http://www.google.co.in/http://www.google.co.in/http://www.steelonthenet.com/http://www.steelonthenet.com/http://www.ifapaindia.org/http://www.ifapaindia.org/http://www.wikipedia.co.in/http://www.wikipedia.co.in/http://www.undp.org/http://www.undp.org/http://www.steelorbis.com/http://www.steelorbis.com/http://www.ferro-alloys.com/http://www.ferro-alloys.com/http://www.ferro-alloys.com/http://www.steelorbis.com/http://www.undp.org/http://www.wikipedia.co.in/http://www.ifapaindia.org/http://www.steelonthenet.com/http://www.google.co.in/http://www.seml.co.in/

Winter Project Report (PGDFT)

Documents

Transcript of Winter Project Report (PGDFT)