Freight Forwarding

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“A

STUDY ON MARKET POTENTIAL OF FREIGHT FORWARDING BUSINESS” 

THE PROJECT REPORT SUBMITTED TO AMET BUSINESS SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION ADMINISTRATION

IN SHIPPING & LOGISTICS MANAGEMENT

BY SANGEETH. S. MENON (Reg. No. ASL13126)

Under the guidance of Mr. SURAJ BHAN SHARMA BE(Avionics), MBA(Mktg, Fin),LLM, DTL, MPhil(PhD)

Professor AMET BUSINESS SCHOOL AMET UNIVERSITY

AMET BUSSINESS SCHOOL AMET UNIVERSITY 2014-2015

 

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ACKNOWLEDGEMENT

I thank The Almighty for showering his choicest blessings on me for the successful succes sful completion of project work undertaken by me.

I express my sincere thanks and gratitude to Mr. John George, Manager GAC Logistics (India) Pvt Ltd for his constant encouragement, profound advice and supervision for project.

My sincere thanks are also due to Mr. Joseph Biju and Mr. Binoy, officers of GAC Logistics (India) Pvt Ltd. for their expert counsel on studies and support.

I express my sincere thanks to Dean, Amet University, Mr S RAMACHANDRAN and Mentor Mr. SURAJ BHAN SHARMA  for their constant encouragement and guidance. I have indeed no words to express my gratitude to all the faculty facult y of Amet University, Chennai.

And above all, I remember with reverence my parents & Almighty God who inspired my mind & strengthen my hands to make this study a successful one

 

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DECLARATION

I hereby declare that the internship report entitled POTENTIAL

OF

FREIGHT

FORWARDING

“A

STUDY ON MARKET

BUSINESS”

submitted to Amet

University, Chennai  in  partial fulfilment of the requirement for the award of the degree Master of Business  Administration as a record of original Internship report done by   SANGEETH S MENON (Roll no: MBA/664/13) during the period of   study in AMET

UNIVERSITY (2013-2015), Chennai. 

SANGEETH S MENON MBA (S&LM)

Date: Place: CHENNAI

 

Signature of candidate:

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CERTIFICATE FROM THE GUIDE  This is to certify that the project work entitled “A STUDY ON MARKET POTENTIAL OF FREIGHT FORWARDING BUSINESS” submitted

to AMET University in partial fulfillment

of the requirement for the award of the Degree of Master of Business Administration in Shipping & Logistics is record of the original work done by SANGEETH S MENON under my supervision and guidance and that this project work has not formed the basis for the award of any Degree/Diploma/Associate ship/fellowship or similar title tit le to any candidate of any University.

Mr. SURAJ BHAN SHARMA  ASSISTANT PROFESSOR AMET UNIVERSITY Date:

Place: CHENNAI

 

Signature of Guide

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CERTIFICATION OF APPROVAL

This is to certify that the project work entitled “A STUDY ON MARKET POTENTIAL OF FREIGHT FORWARDING BUSINESS ”  is bonafide research work carried out

independently by SANGEETH S MENON (Roll no: MBA\664) during the period of   study in AMET UNIVERSITY (2013-2015) in partial fulfilment of the requirement for the award of the Degree Degree of Master of Business Administration Administration and that this project work work has not formed the basis for the award of any Degree/Diploma/Associate ship/fellowship or similar title to any candidate of any University.  

Signature of the Guide

Date:

Place: CHENNAI

Internal Examiner

External Examiner

Dean & Head of Department AMET BUSINESS SCHOOL

 

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CONTENTS CHAPTER.

CONTENTS

PAGE NO.

1.

INTRODUCTION

7

1.1

OVER VIEW OF THE TOPIC

8-9

2.

COMPANY PROFILE

10

2.1

ABOUT GAC

11-13

2.2

GAC’S VISION & MISSION  MISSION 

13-15

2.3

GAC INDIA

15-16

3.

SECTOR SPECIFIC DETAILS

17

3.1

FREIHT FORWARDING

18-20

4.

LEARNING FROM THE

21

NO.

ORGANISATION

 

4.1

ROLE PLAYED BY DIFFERENT PARTIES

21-24

4.2

INCOTERMS

24-29

4.3

EXPORT PROCEDURE FLOW CHART

30-35

4.4

IMPORT PROCEDURE FLOW CHART

35-39

4.5

FACTORY STUFFING

40-42

4.6

GENERATION OF SHIPPING BILLS

42-43

5.

SUGGESTIONS & CONCLUSION

44

5.1

SUGGESTIONS

45

5.2

CONCLUSIONS

46

6.

REFRENCES

47-48

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CHAPTER 1 INTRODUCTION

 

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INTRODUCTION  This project says about an analysis of  impact on Market Potential On Freight Forwarding Business. Today’s Today’s rapidly  rapidly changing business environment is creating intense competition among corporations markets are changing faster now than in any other time in i n history. Product life cycles are shortening and businesses must compete globally.  Freight forwarders perform a key role in any an y trade. The freight forwarder is the architect of the international transport and plays an important role in the t he growth of the international trade in India by facilitating exporters, shippers, importers, customs/ports authorities authoritie s etc.   The freight forwarding industry will continue to benefit from growth in trade and certain structural advantages over carriers. Value is driven by financial performance is driven strategic position. Strategic position must assessed in a disciplined manner , which examines the discrete and interrelated activities within a forwarder value chain to understand sources of synergy and options to increase value.  value. 

1.1. 

OVER VIEW OF THE TOPIC

Freight forwarding is a service used by companies that deal in international or multi-national import and export. While the freight forwarder doesn't actually actuall y move the freight itself, it acts act s as an intermediary between the client and various transportation services. Sending products from one international destination to another can involve a multitude of carriers, requirements and legalities. A freight forwarding service handles the considerable logistics of this task for the client, relieving what what would otherwise be a formidable burden. Freight forwarding services guarantee that products will get to the proper destination by an agreed upon date, and in good condition. The freight forwarding service utilizes established establis hed relationships with carriers of all al l kinds, from air freighters and trucking companies, to rail freighters and ocean liners. Freight forwarding services ser vices negotiate the best possible price to move the product along the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability.

 

 

Freight forwarding plays an important role in facilitating facilitati ng international trade, fulfilling a number of distinct functions. In basic terms they the y act on behalf of exporters to buy and manage transportation services. These usually include air or sea freight , as well as land transportation services to move goods from the shipper to the port .

Freight forwarding has become an increasingly complex and specialized service se rvice in the current context of globalization, tight security regulations and skills shortages. Maintaining a competitive advantage in such an environment requires strategic planning and action, and it’s going to become more challenging as complexity grows.

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CHAPTER 2 COMPANY PROFILE

 

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2.1.

ABOUT GAC

Backed by nearly 50 years of experience, the GAC group has grown from regional player to  become a truly global Shipping, Logistics Logistics and Marine Services provider with 200 offices worldwide. Established in 1956, GAC’s core business covers three key areas –  areas –  Shipping,  Shipping, Logistics, and Marine Services. A unique combination of services enables GAC to offer a single experienced source for all Shipping and Transport requirement from traditional Shipping agency services to Supply Chain Management to offshore support. GAC employs more than 5000 people Worldwide. The GAC’s Group head offices are located in Houston, Cairo, Dubai and Singapore. The GAC brand reflects r eflects value for money, quality, continuity, innovation and global reach. The GAC group is committed to ensuring customers need for quality Shipping, Logistics and Marine services are understood and met. And with over 10,000 professionals working around the clock, speaking more than 100 languages, at more than 300 offices in over 40 countries, GAC deliver on that promise. Since the first GAC operation was setup in Kuwait by Swedish entrepreneur Bengt Lindwall in 1956, the group has evolved into the widely –  widely –  recognized  recognized global provider of integrated shipping, logistics logistics and marine marine related services. GAC’s glo balization strategy is to use steady and consistent geographical expansion, achieved through t hrough organic/ opportunistic growth, joint venture, partnership and acquisitions. GAC is local in action and global in attitude. att itude. The value of human dignity is one of the the corner stones of GAC’s operating philosophy. They value long term relationships with business partners, customers, suppliers and to their own staffs. Wherever you go, you will find GAC people striving for excellence in everything ever ything they do, driven by a sense of urgency and a desire to meet all a ll their customers every service need. That combination of the personal touch with fierce professional pride is our corporate signature. GAC’s financial strength, global reach, strong reputation and innovation enable us to expand in step with their customers worldwide, responding to their needs and the changing demands of local, regional and global markets. Their customers are central to everything they do. It is their ever-increasing demand for competitive solutions that drives GAC to refine and integrate their services to meet the customer’s needs.  needs.  

 

 

Shipping was GAC’s first business business unit, dating back to when their first office opened in Kuwait, to provide lightering and ship agency services, in 1956. Today, GAC Shipping is one of the world’s biggest providers of services service s to ship owners and operators. GAC’s Logistics GAC’s  Logistics operation originated from their forwarding, warehousing and distribution operations in Dubai. Today, GAC Logistics has grown into a global network providing a rich array of general and specialist logistics services. GAC’s Marine operation centers around our modern and expanding fleet of supply craft and  barges that provide vital support for offshore exploration, construction and production, heavy lift cargo towage, etc. GAC Marine operates in key locations in the Middle East Gulf, West Africa and Caspian Sea. GAC takes full advantage of the diversity of their portfolio of services, Their worldwide infrastructure, resources and expertise to deliver integrated solutions that result in time and cost efficiency. Sectors such as the oil & gas industry, in particular, benefit from GAC’s unique ability to offer a tailor-made service ser vice package covering ship agency, bunker fuels,  project logistics, offshore logistics and more. Other sectors sectors that can benefit from GAC’s wide range of services include cruise, dry bulk, automotive, FMCG, retail, technology, healthcare, sports, entertainment/events, projects, offshore, etc. We know that you must first sow before you can reap. That’s why GAC has always alwa ys believed in investment: in long-term relationships with their clients, partners, brand ambassadors and suppliers; in the technology and equipment to get the job done - and done well; and in training our people, as evidenced by the establishment of the GAC Corporate Academy in 2007. Individual GAC companies operate with a high degree of autonomy, giving them the flexibility to act in accordance with local conditions and specific customer needs whilst maintaining the global outlook and standards of the Group.

QUALITY ASSURANCE GAC is global service organization dedicated to providing efficient and competitively priced shipping, logistics and marine services. GAC’s mission is to offer their customers a consistently high level of service that exceeds their requirement and expectation. All GAC offices are certified under the Quality Management System ISO 9002: 1994 standard. They

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are now actively working towards full implementation of the ISO 9002: 2000 standards within GAC. GAC’S approach to quality goes well beyond the certain set of set  of ISO standards. It also involves continues improvement and development of their services. Through the GAC Quality Management System(QMS), they control and monitor their performance to ensure continuous improvement in their service quality level. 2.2.

GAC’S VISION

AND MISSION

VISION To provide leadership and innovation in global business and community life by delivering a flexible portfolio of services built on quality, safety, safet y, honesty, vigor and a commitment to long term business relationships. 

MISSION GAC is a worldwide service provider dedicated to building long-term relationships rela tionships with customers, staff and suppliers. We are committed to delivering integrated services to the Shipping, Logistics, Marine and related markets at the highest levels of quality and safety.  

GAC SHIPPING GAC shipping is leading provider of global and hub agency services. In addition to ship agency, GAC shipping offers an extensive range of specialized services such as Ship Supplier, Global Hub Agency and Canal Transit. GAC shipping also acts as correspondents for most International Groups and P&I club. GAC shipping today represent the interest of more than 3,500 principles worldwide and attends to over 26,000 vessels annually, of which one-third are regular line and dry cargo vessels, while two-third are tankers.

GAC MARINE  GAC Shipping provides marine transportation and associated engineering services such as Anchor Handling, Offshore Supply, Towage, Barge Operation and Ship-to-Ship Ship-t o-Ship Transfer to Offshore and Shipping industry. industry. They own and operate fleets of OSV’s, tugs, barges and landing craft. Vessels can be customized according to client requirement.

 

 

GAC LOGISTICS SERVICES  GAC India offers a full range of freight forwarding and distribution distri bution services throughout the country. The company is a pioneer in developing Asia to Europe Sea-Air services, offering time and cost efficient solutions for shippers in diverse industries. Their cargo service department is dedicated to providing services such as international forwarding (Sea/Air/Land), bonded warehousing, export & import NVOCC, project Logistics and LCL consolidation. Air freight is expedited by the Cochin International Airport Office which handles air cargo exclusively. Specialized services such as value-added solution are provide to meet the growing demand from global customers requiring integrated supply chain management facilities. In addition to offering competitive rates, they provide customers with  progress reports from delivery to destination via GAC’s proprietary IT system GAC Freight.

P&I COORESPONDENT One service include 24/7 claims handling, marine surveys and damage report etc. GAC’s team of claims staffs has the knowledge and experience for efficient management of all P&I incidents claims on behalf of their clubs and ships owner member. GAC India represent Skuld at Mumbai and other intermediary ports near Mumbai and acts as the sole correspondent for Swedish clubs in Mumbai, Kandla, Goa, Cochin, Chennai and Vizag.

AIR FREIGHT GAC’s worldwide freight management capability ensures their customer’s cargo reaches any city, country or continent wherever they need. Their global partnership agreement with major air carrier means their customers get priority and have access to competitive rates and capacity. Goods are collected at the point of origin, cleared through customs and delivered to the end consignees using the most cost efficient and expedient route. They monitor and  provide progress report every step of the via. their global IT system (GAC Freight), giving giving clients complete visibility of the move and peace of mind.

SEA FREIGHT (NVOCC) GAC India’s popular direct consolidation service helps to reduce freight cost cos t by routing to direct port calls with reduced transit time. The service service is offered by Cargo Gulf, GAC’s  branded NVOCC (Non Vessel Operating Common Common Carrier) to a host of destination in Europe, The America, Middle East and Far East.

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14

 

For LCL Shipment (Less than Full Container Load), Cargo Gulf operates weekly consolidation to destination around the world, which is widely known for its time bound delivery. Cargo Gulf also assist customer for FCL (Full Container Load) shipments. Issuing its own carrier Bill Of Lading means cargo gulf is in a position to control the cargo door   –  to todoor. As one of the largest NVOCC freight buyers in the world, GAC are able to pass on competitive rates to clients.

SEA / AIR FREIGHT A pioneer of Sea / Air freight concept, GAC Logistics provide the supply chain solution soluti on for merchants looking for a significant cost advantage or those operating with low inventories rapidly changing industries such as electronic, fashion, foot wear. GAC’s Sea GAC’s  Sea / Air trade lanes span from Asia to Europe and the United States and allow clients their own hub via either Dubai or Singapore. Cargo is received and located into GAC’s town consolidation containers or complete FCL containers. All Sea / Air Cargo are labeled by special colour codes for expedited transfer to respective airport in Dubai or Singapore. Fast and Flexible, GAC’s Air /Sea services enables shipper to save up to on onee of their own “ all air” transit times.

GAC LOGISTICS PARK IN DUBAI Strategically located in Jebel Ali Free Zone in Dubai, the GAC Logistics Park is the faci facility lity in Middle East spreading Warehousing, Web –  Web – enables enables inventory management system and world –  world  –  class  class ISO: 9001-2000 operation sources. The design features of the GAC Logistics Park include:  

Web enables

 

Inventory Management System

 

Supporting Complete Stock Management

 

Supply chain visibility

Marshaling and access space throughout the facility to reduce bottlenecked bottlene cked and expedite flow of goods capacity to handle a higher number of product lines from a multi –  multi  –  customer  customer base, using high bay mobile, palletized and bulk storage solution specialized warehousing with temperature ranging from ambient to cool ( +18c), to Frozen(-30c).

 

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2.3.

GAC India

Shipping Services Established in 1983, GAC Shipping (India) Pvt. Ltd. has grown steadily to offer a truly one –  one –   stop shop for all Shipping, Logistics and distribution needs. GAC India is headquartered in Cochin, Queen of the Arabian Sea, and operates 22 other fully fledged and ISO 9001:2000 certified offices. They cover all minor and major ports, as well as inland container depots. With over two decades of experience, GAC India is one of the leading agents in India. GAC offers principles round the clock (24/7) comprehensive range of ship agency services se rvices for any type of port calls, including attendance required in connection with vessel demolition and ship to ship transfer etc. GLOBAL COVERAGE AND LOCAL EXPERTISE 

GAC Cochin head office acts as the Hub Office for all Operations in the country and coordinates all administrative and international financial matters, which helps to streamline  processes. As a part of GAC group, they offer principal the combination of worldwide coverage with a thorough local knowledge. FULLY COMPUTERIZED AUTOMATION SYSTEM

Using leading edge technology and computerized operation system, GAC Cochin Shipping desk controls the shipping activities at Indian ports situated at both East and West Coasts. Information about any port can be speedily furnished from this office.

HUB AGENCY GAC’s Global Hub Services (GHS) offers an integrated service package encompassing the coverage, experience and expertise of the group’s global network, to help its clients c lients control and save on all their port call related expenses. GHS is made up of Global Disbursement Center based in Dubai, supported by four regional HUB Agency Centers located in USA, UK, UAE and Singapore.

 

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CHAPTER 3 SECTOR SPECIFIC DETAILS

 

17

 

3.1. FREIGHT FORWARDING

Freight forwarding is the coordination and shipment of goods from one place to another via a single or multiple carriers via air, marine, rail or highway. The importance of freight forwarding for global trade was recognized in Canada in 1948 with the establishment of the Canadian International Freight Forwarders Association (CIFFA). CIFFA recognized that forwarding freight, whether by land, marine, rail or air requires coordination, c oordination, regulation and agreed-upon best practices to ensure that goods flow in a timely and proficient manner across  borders, overseas, and throughout the world.

The Principles of Freight forwarding  The principles of freight forwarding are premised on the efficient and cost-effective transfer of goods that are maintained in good condition throughout their travels. To accomplish this, freight forwarders become experts in managing the logistics necessary to ensure that goods arrive on time. Successful trade and shipping in expanding globalized markets means having the right tools at your disposal.    Negotiating tariffs, customs regulations and being fluent in the requirements of shipping by land, sea, rail, and air, freight forwarders manage the risks and benefits of shipping both nationally and internationally using the latest advances in information technology.

Successfully Navigating the World of Freight Forwarding  Having the knowledge and skills to navigate the regulations of freight forwarding is integral to ensuring the successful shipment and delivery of goods. Even as the knowledge of customs regulations is an important component, the successful transfer of goods through freight forwarding relies on its service industry. industr y. As such, freight forwarding depends on having the right people whose commitment to excellence and customer satisfaction ensures that goods reach their final destination in a timely and efficient manner.   Many customs brokerage firms recognize this and ensure that their most qualified personnel are available to tailor and develop a comfortable shipping experience for their clients.  Negotiating the logistics and regulations of freight forwarding is a complex task; the proper proper import and export of goods depends on choosing a customs brokerage firm and a freight forwarder you can trust.

 

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FREIGHT FORWARDER 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. Forwarders contract with a carrier to move the goods. goods. A forwarder does not move the goods but acts as an expert in supply chain management. A forwarder contracts with carriers to move cargo ranging from raw agricultural products to manufactured goods. Freight can be booked on a variety of shipping providers, including ships, airplanes, trucks, and railroads. It is not unusual for a single shipment s hipment to move on multiple carrier types. International freight forwarders typically handle international shipments. International freight forwarders have additional expertise in preparing and processing customs and a nd other 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 carri er or country of export, import, and/or transshipment. Much of this information is now processed in a paperless environment. The FIATA shorthand description of the freight forwarder as the 'Architect of Transport' illustrates the commercial position posit ion of the forwarder relative to his client. In Europe, some forwarders specialize in 'niche' areas such as rail-freight, and collection and deliveries around a large port. Lloyd's Loading List is the freight forwarding industry's journal of record, first published 160 years ago as a UK export directory. Today it provides details of forwarders, NVOCCs and shipping lines/agents who serve over 10,000 ports globally. Some forwarders handle domestic shipments only. An international freight forwarder is an agent for the t he exporter and can move cargo from “dock -to-door,” -to-door,” providing several significant services such as:  as:  

  Advising on exporting costs including freight costs, port charges, consular fees, costs



of special documentation, insurance costs and freight handling fees;

 

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  Preparing and filing required export documentation such as the bill of lading and



routing appropriate documents to the seller, the buyer or a paying bank;

  Advising on the most appropriate mode of cargo transport and making arrangements



to pack and load the cargo;

  Reserving the necessary cargo space on a vessel, aircraft, train, or truck.



  Making arrangements with overseas customs brokers to ensure that the goods and



documents comply with customs regulations.

Export freight forwarders are licensed by the International Air Transport Association (IATA) to handle airfreight and the Federal Maritime Commission to handle ocean freight. Freight forwarders arrange the best means of transport, taking into account the type of goods and the customers' delivery requirements. They use the services of shipping lines, airlines and road and rail freight operators. In some cases, cases , the freight forwarding company itself provides the service. Companies vary in size and type, from those operating on a national and international basis to smaller, more specialized firms, who deal with particular types of goods or operate within particular geographical areas.

The services of a freight forwarder can vary between different companies but the main function of the freight forwarder is to act as an intermediary between the client who is hiring them and various transportation services that are involved in getting the product overseas to the customer. Depending on the final destination and the nature of the items shipped, there may be many transportation companies involved in the movement of the items from the supplier to the customer. The freight forwarder may have to deal with many export and import issues that could be involved in the movement of the goods.

The freight forwarder is hired to get the t he product to the customer by a specific date and in an undamaged state. The freight forwarder will provide the client insurance services to make sure that if the items do arrive damaged, they will be reimbursed and not liable for the damages.

 

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CHAPTER 4 LEARNING FROM THE ORGANISATION ORGANISATION

 

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4.1. ROLE PLAYED BY DIFFERENT PARTIES

ROLE OF FREIGHT FORWARDERS  A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier. A forwarder is often not active as a carrier and acts only as an agent, in other words as a third party (non-asset-based) logistics provider that dispatches shipments via asset-based carriers and that books or otherwise arranges space for these shipments. Carrier types include ships, airplanes, trucks, and railroads. Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to  prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading and other documents required by the t he carrier or country of export, import, or transhipment. Much of this information is now processed in a paperless environment.

ROLE OF NVOCC  As the name indicates, NVOCC operators operators do not own a vessel. Their function is that of  principal to the shipper and they ultimately become the customer for a Liner who carries their  box. Few of them may have own containers and they will be issuing their own Bill of Lading and they will be having a wide network in the sector they operate. They issue their House Bill of Lading to the Shippers and them upon handing over the container to the Liner, get Liner Liner Bill of Lading. This Original Bill of Lading will be forwarded to the counter party of the NVOCC operator at the destination end and they surrender this to the Liner. Alternatively, Alternativel y, to avoid the delay in sending the original document to the destination end, the same will be surrendered surrendere d at the load port Liner / agents office offic e itself. The Liner / Agent at the load port will wil l send an electronic message to the discharge port about the surrendering of original bill of lading at the load port and to release the delivery order based on the endorsement of the freight forwarder / NVOCC operator itself. NVOCC Operators issue House-to-House Bill of Lading or Combined Transport Document to the shipper since they undertake the movement from the Shippers ware house and taking the responsibility of reaching the cargo till the buyer’s warehouse.

 

 

It is not the same pattern of working for all the operators but in the present days, the amount of significance given to Logistics Providers are of immense i mmense importance and this type of functioning is gaining greater acceptance among the shippers as well as buyers since the entire activity is under single point control.

Few other operators’ just function as freight forwarders and their role of play are limited limit ed to the extent of the contacting the shippers and booking the cargo through a particular Liner. They will have a contracted freight charges with the t he Liner and depending upon their strength to offer volume of business to a particular line and to a particular sector, they enjoy good discounts on the tariff. When they get the rates based on a committed volume, they hunt around shippers and they book the cargo through them to a Liner wherein they have a better freight charges. The difference in booking the price would be their profit i.e., the difference  between the buying rate and the selling rate to the customer. In this case, the bill of lading will directly be given to the customer from the Liner office and there is no involvement of house bill of lading and the related surrendering formalities at the destination counter.

ROLE OF CLEARING AGENT  Clearing agent means any person who is engaged in providing any service, either directly or indirectly, concerned with the clearing and forwarding operations in any manner to any other  person and includes a consignment agent. Once the cargo arrives at the port/ CFS the clearing agent at the consignee’s place will go with the necessary documents and take delivery of cargo. In order to take delivery of cargo there are many processes that are to be done which is already mentioned in CHA import process and the clearing and forwarders agent.

ROLE OF CONSIGNEE  Party, who is to receive goods, usually is the buyer. One to whom a consignment is made. When the goods consigned to him are his own and they have been ordered to be sent they are at his risk the moment the consignment is made according to his direction; and the persons employed in the transmission of the goods are his agents. When the goods are not his own, if he accept the consignment he is bound to pursue the instructions of the consignor; as if the goods be consigned upon condition that the consignee will accept the consignor's bills, he is  bound to accept them.

It is usual in bills of lading to state that the goods are to be delivered to the consignee or his assigns, him or them paying freight; in such case the consignee or his assigns, by accepting

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the goods, by implication become bound to pay the freight. When a person acts publicly as a consignee there is an implied engagement on his part that he will be vigilant in receiving goods consigned to his care, so as to make him responsible for any loss which the owner may sustain in consequence of his neglect.

4.2. INCOTERMS 

Inco terms are ICC’s standard definitions of trade t rade term s and are internati internationally onally recognized as indispensable evidence of the buyer’s and seller’s responsibilities for delivery delivery under a sales contract. EXW 

SERVICES 

Ex Works

FCA 

Free Carrier

FAS 

FOB 

Free

Free

Alongside Onboard Ship

Vessel

CFR  

Cost & Freight

CIF 

Cost Insurance & Freight

CPT 

Carriage Paid To

Warehouse Storage

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Warehouse Labor

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Loading Charges

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Inland Freight

Buyer

Seller

Seller

Seller

Seller

Seller

Terminal Charges

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Forwarder’s Fees  Fees 

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Loading On Vessel

Buyer

Buyer

Buyer

Seller

Seller

Seller

Seller

Ocean/Air Freight

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Charges On Arrival At Destination

Buyer/ Seller*1

Duty, Taxes & Customs Clearance

 

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Delivery To Destination

  There

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

are actually two FCA terms:

FCA Seller's Premises where the seller is responsible only for loading the goods and

not responsible for inland freight; and FCA Named Place (International (International Carrier) where the seller is responsible for

inland freight. CIP 

DAF 

Carriage Delivered

DES 

DEQ 

Delivered Delivered Ex Quay

DDU 

Delivered

DDP

Delivered

Insurance

At

Paid To

Frontier

Warehouse Storage

Seller

Seller

Seller

Seller

Seller

Seller

Warehouse Labor

Seller

Seller

Seller

Seller

Seller

Seller

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Loading Charges

Seller

Seller

Seller

Seller

Seller

Seller

Inland Freight

Seller

Seller

Seller

Seller

Seller

Seller

Terminal Charges

Seller

Seller

Seller

Seller

Seller

Seller

Forwarder’s Fees  Fees 

Seller

Seller

Seller

Seller

Seller

Seller

Loading On Vessel

Seller

Seller

Seller

Seller

Seller

Seller

Ocean/Air Freight

Seller

Seller

Seller

Seller

Seller

Seller

Charges On Arrival At Destination

Seller

Buyer

Buyer

Seller

Seller

Seller

Duty, Taxes & Customs Clearance

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Delivery To Destination

Buyer

Buyer

Buyer

Buyer

Seller

Seller

SERVICES 

Ex Ship

Duty Unpaid

Duty Unpaid

Duty Paid

 

 

The 13 INCOTERMS 

What are INCOTERMS?  Inco terms are a set of simple three letter codes which represent the different ways international shipments may be organized. They allow sellers and buyers from different cultures and legal systems to decide at what point the ownership and paying for freight, insurance and customs costs transfer from f rom one to the other.

Who decides what INCOTERMS mean?  The International Chamber of Commerce has set up strict definitions for each incoterm. Choosing a suitable incoterm allows the buyer and seller to negotiate a price best suited to their needs and to be confident that there will be no confusion over who pays the costs. To ensure that the latest version is being used shipping contracts should refer to "INCOTERMS 2000".

When should INCOTERMS be used?  It is not compulsory to use incoterms. However when things go wrong and disputes arise it is much easier to sort out who is responsible for what if incoterms have been written into the shipping contract. To be safe, incoterms should be decided upon in the negotiation phase of any international purchasing contract.

How do INCOTERMS work?  Each INCOTERM is a three letter acronym related to where the seller's responsibility ends. They should be written into the purchasing or shipping contracts. Some incoterms require the changeover point to be named. As well as buyer and sellers there are "carriers". They are the  people who have a contract to transport the goods by land, sea, air or a combination of modes. A seller will be given a bill of lading, way bill or carrier's receipt, that document can  be used to prove that the goods have have been taken on by the carrier.

25

 

26

 

There are four groups of INCOTERMS - "E", "F", "C" & "D" Group:E used where the seller does not want to arrange transport. 

 - "Ex-Works" means the seller's only responsibility is to make the goods available at EXW the seller's premises, i.e., the works or factory. The seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears the full costs and risk involved in bringing the goods from there to the desired destination. "Ex works" represents the minimum obligation of the seller.   Group:Fused where the seller can arrange some transport within his/her own country.  FCA  - Free Carrier, This term has been designed to meet the requirements of multi-modal

transport, such as container or roll-on, roll-off traffic by trailers and ferries. The seller fulfils his/her obligations when the goods are delivered to the custody of the carrier at a named  point. If no precise point can be named at the time of the contract of sale, the parties parti es should s hould refer to the place where the carrier should take the goods into its charge. The risk of loss or damage to the goods is transferred from seller sell er to buyer at that time. FAS - Free alongside Ship, requires the seller to deliver the goods alongside the ship on the

quay. From that point on, the buyer bears all costs and risks of loss and damage to the goods. F.A.S. requires the buyer to clear the goods for export and pay the cost of loading the goods. FOB 

-

Free

On

Board

vessel,

named

ocean

port

of

shipment.

The goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. The risk of loss of or damage to the goods is transferred to the buyer when the goods

pass

the

ship's

rail

(i.e.,

off

the

dock

and

placed

on

the

ship).

The seller pays the cost of loading the goods.  –    –   Group:Cused where the seller can arrange and pay for most of the freight charges up to the foreign country. 

 

27

 

CFR  

-

(or

C&F)

Cost

and

Freight,

Named

ocean

port

of

destination,

requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility. CIF 

-

Cost,

Insurance

and

Freight,

named

ocean

port

of

destination.

This is CFR with the additional requirement that the seller procure transport insurance against the risk of loss or damage to goods. The seller must contract with the insurer and pay the insurance premium. Insurance is generally important in international shipping because transport companies have restricted liability for loss or damage. CPT 

-

freight/Carriage

paid

to,

named

place

or

port

of

destination.

This term means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the final carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries. When the seller is required to furnish a bill of lading, way bill, or carrier receipt, the seller duly fulfils its obligation by presenting such a document issued by the person contracted with for carriage to the main destination. CIP  -

Carriage

and

Insurance

Paid

To

named

place

or

port

of

destination.

This term (also abbreviated CIP) is the same as "freight/carriage paid to" but with the additional requirement that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.  Group:Dused where the seller can pay for most of the delivery charges to the destination country.   DAF  - Delivered at Frontier, named place of destination, by land, not unloaded.

This term means that the seller's obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract. The term is

 

28

 

 primarily used when goods are carried by rail or truck. The seller bears the full cost and risk in delivering the goods up to this point, but the buyer must arrange and pay for the goods to clear customs. DES 

-

Delivered

Ex-Ship,

named

port

of

destination,

not

unloaded.

This term means the seller makes the goods available to the buyer on board the ship at the destination named in the sales contract. The seller bears the full cost and risk involved in  bringing the goods there. The cost of unloading the goods and any customs duties must be  paid by the buyer. DEQ  -

Delivered

Ex-Quay,

named

port of destination,

unloaded,

not cleared.

This term means the seller has agreed to make the goods available to the buyer on the quay or the wharf at the destination named in the sales contract. The seller bears the full cost and risks in delivering the goods to that point including unloading. There are two variations of ex quay contracts: "ex quay duty paid" and "ex quay duty on buyers account." In the first, the duty is  paid by the seller. In the second, the duty also is paid by the seller, but the buyer must reimburse the seller. DDU  - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.

This term Delivered duty paid or under these terms, the seller fulfils his obligation to deliver when the goods have been available to the buyer nucleated for import at the point or place of the named destination. The seller bears all costs and risks involved in bringing the goods to the point or place of named destination. There is no obligation for import clearance. DDP  - Delivered Duty Paid, named place of destination, not unloaded, cleared.

This term represents the seller's maximum obligation. The term "DDP." is generally followed  by words indicating the buyer's premises. It notes that the seller bears all risks and all costs until the goods are delivered. This term can be used irrespective of the mode of transport. If the parties wish to make clear that the seller is not responsible for certain costs, additional word should be added (for example, "delivered duty paid exclusive of VAT and/or taxes").

 

29

 

4.3. EXPORT PROCEEDURE FLOW CHART 

RECEIVE ENQUIRY FROM SHIPPER

UPDATE  QUOTATION 

CUSTOMS REQUIRED

ENTER DATA IN SYSTEM

BOOK CARGO

ARRANGE TRANSPORTATION

RECEIVE CARGO

YES

CUSTOMS PROCEDURES

 

30

 

STUFF CARGO

RECIVE B/L DETAILS FROM SHIPPER

GIVE B/L DETAILS TO THE LINE

RECEIVE B/L DRAFT FROM SHIPPING LINE

SENT DRAFT B/L TO SHIPPER/FORWARDER

SHIPPER/FORWARDER CONFIRMS B/L

CONFIRMS B/L TO THE LINE

VESSEL ARRIVAL CONFIRMATION

 

31

 

CUSTOMS PROCEDURES  RECEIVE AUTHORIZATION FROM SHIPPER

ENTER DATA INTO SYSTEM

RECIEVE DOCUMENTS

  INVOICE   PACKING LIST

 

DOCUMENTS REQUIRED BY SHIPPER

  CERTIFICATE OF ORIGIN   PQ CERTIFICATE

 

FILE DOCUMENTS WITH CUSTOMS

BOOK CARGO

DELIVERY ORDER

 

32

 

ARRANGE

RECEIVE CARGO

STUFF CARGO

EXPORT PROCEDDURE When the exporter approaches custom house agent (CHA), CHA makes an offer in the form of quotation as per the requirements of the exporter, addressing addressi ng the exporter stating all the shipment expenses with competitive rates of shipment. Then the CHA demands for the invoice, packing list etc. After the submission of the documents, agent files for the shipping  bill. The agent will get necessary information about the sailing from the shipping times of EXIM to which they subscribe. C&F will assist the exporters for space booking. Depending upon the availability, GAC will book the desired space and issue. iss ue. The cargo shipped is insured either by the exporter or GAC agent on the behalf of the exporter to cover the loss of goods from accidents, loss or damage.

 

 

Once the goods are ready, shipper or agent should do the necessary packing and markings. The exporter should tell the C&F agent the details of the cargo, name of the vessel etc. and the documents which is being sent to the agent. On applying for the container for the shipper line, the line will issue the delivery order for the containers from the yard. On applying for the container, the agent may demand for inspection of the container before loading. After certifying certif ying the container, the liner issues the line seal. Once the container is released from the transport company, vehicles take the container to the  premises or to the warehouse of the exporter or agent for stuffing. The trailer when reaches the gateway of the wharf will require the wharf tticket, icket, on paying necessary dues of vehicle entry, container enters the t he port. The agent must apply to the shed superintendent for permitting the cargo into the port and also for the shed to keep the containers before loading. Customer examiner examines the document and appraises the value. On assessing the value of the cargo, the custom authorities assess the duty to be paid for the goods for shipment. Then the forwarding agent presents the documents to the shed department of the port and obtains Carting order for bringing the export cargo to the transit shed for physical examination by the dock appraiser and for the shipment. The dock appraiser records the examination report and makes “Let Export” endorsement on the duplicate copies c opies of the shipping bill and handover it to the forwarding agents along with the other document to  be presented to the preventive officer of the customs department and the officer issues “Allowed for Shipment” if satisfied.  satisfied.   The customs on receiving the request from the agent for shipping bill, initially issues the Checklist with reference to the documents submitted for CHA’s certification. certi fication. The shipping  bill is issued by the appraiser. After the goods are loaded on board board of the vessel, the forwarding agent makes the payment of the port charges and takes delivery of the documents. The master finally loads the container to the vessel.

33

 

34

 

The endorsed documents are presented to the GAC for the issue iss ue of Bill Of Lading. The CHA  prepares a format of the B/L and submits to the line. The line on the basis of the format  presented, issues the original and endorses the other documents. After the shipment of the the goods, CHA has to apply for the Certificate of Origin at the Chamber of Commerce. The CHA prepares the Export General Manifest to the concerned line. Terms of shipment include FOB, C&F, CIF etc. of the freight is not received even after the goods reaches the destination port, GAC informs the delivery agents not to take the delivery of the goods.

4.4. IMPORT PROCEDURE FLOW CHART 

FREE ALERT RECEIVED FROM CLIENT

PREPARE QUOTATION

FCL SHIPMENT

FILE IGM

FREIGHT COLLECT

 NO

 

35

 

FREIGHT CERTIFICATE

INVOICE FROM OVER SEAS AGENT

CUSTOMS CUSTOMS CLEARANCE REQUIRED

YES

 NO ENDORSE BILL OF LADING

RAISE INVOICE

UPDATE SUPPLIER IN SYSTEM

APPROVE JOB

CLEARANCE PROCEDURE

 

36

 

CLOSE JOB (BY ACCOUNTS)

CLOSE JOB (BY LOGISTICS)

UPDATE DOCUMENTS IN THE SYSTEM

CUSTOMS CLEARENCE PROCEDURE RECEIVE AUTHORIZATION FROM CONSIGNEE

RECEIVE DOCUMENTS

  INVOICE   PACKING LIST   CERTIFICATE OF

  

ORIGIN

  ENDORSE



ORIGINAL B/L

VESSEL ARRIVAL  NOTIFICATION

 

37

 

FILE DOCUMENTS WITH CUSTOMS

RECEIVE OPEN ORDER

RECEIVE DELIVERY ORDER

CUSTOMS EXAMINATON

RECIVE DUTY AMOUNT

PAY RECEIVED DUTY AMOUNT

ARRANGE TRANSPORTATION

DELIVER CARGO

SIGN DELIVERY RECIEPT

 

 

IMPORT PROCEDURES  After making necessary enquiry, consignee contacts GAC for the clearing cle aring and documentation  process. Cargo arrival notice is issued by the shipping line at the destination to GAC GAC requesting to present the original B/L after payment pa yment of all relevant duty and charges and to arrange the clearance of cargo, storage charges etc. will be charged on the importer. GAC informs the consignee through the importer quotation. If the bill of lading has not arrived, GAC, who is the shipping agent, issues the Letter for undertaking to the shipment line requesting to issue the goods to the prescribed consignee without showing the original B/L. B/ L. After the customs inspection and assessment of duty, validity of the cargo is certified. On issue of the delivery order. GAC has to ensure that freight charges are paid. The customs import duty payment is made to Cochin Port Trust Branch. Before discharging the goods to private bonded warehouse, GAC requests the permission of Asst, Commissioner of Customs to post an officer to escort the cargo to the bonded warehouse for custom inspection for de stuffing the goods. GAC also makes request the Terminal Manager for examination and discharge of the containers for de stuffing, permitting the custom inspection outside the terminal. The trailers before the CHA takes the container from the port and is carried to either to the importer’s private warehouse for house consumption or to the bonded warehouse of the customs(private) to bond the cargo without payment of the duty, entrusting the B E for warehouse and the port and line delivery order.

After de stuffing the goods, B E for ex-bond is prepared by CHA and forwarded the customs for original copy, which has to be produced to take the delivery of goods from the bonded warehouse. The import container has to be returned to the line at the container yard. The surveyor inspects the condition of the container whether any damage have occurred during the transit and issues the Equipment Interchange report on behalf of the line, showing the position of the container. In case of any damage, the line will claim damage from the importer.

38

 

 

4.5. Factory stuffing permission:

The grant of a single factory stuffing permission valid for all the Customs stations instead of Customs station-wise permission is permitted. This facility is subject to the following safeguards: (i) The exporter is required to furnish to Customs a list of Customs stations from where he intends to export his goods. (ii) The Custom House granting the factory stuffing permission should maintain a proper register to keep a track-record of such permissions, and also create a unique serial number for each of such permissions. (iii) The Custom House should circulate the factory stuffing permission to all Custom Houses concerned clearly indicating the name and contact details of the Preventive Officer/Inspector and Superintendent concerned of the Custom House granting the permission as well as those of the Central Excise Range concerned to facilitate real time verifications, if required. (iv) In case something adverse is noticed against the exporter, the Customs station concerned shall promptly intimate the Custom House granting the permission, which will, in turn, withdraw the permission, and inform all Custom Houses concerned.

Variation between declaration and physical examination:   The check list and the declaration along with all original documents submitted with the Shipping Bill are retained by the Appraiser concerned. In case of any variation between the declaration in the Shipping Bill and physical documents/examination report, the Appraiser may mark the Electronic Shipping Bill to the Assistant Commissioner/Deputy Commissioner of Customs (Exports) along with sending the physical documents and instruct the exporter or his agent to meet the Assistant Commissioner/Deputy Commissioner of Customs (Exports) for settlement of dispute. In case the exporter agrees with the views of the Department, the Shipping Bill needs to be processed accordingly. Where, however, the exporter disputes the view of the Department the issue will be finalized in accordance with the principles of natural  justice.

Drawl of samples:  Where the Appraiser Dock (Export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/EDI system. There is no separate

39

 

40

 

register for recording dates of samples drawn. Three copies of the test memo shall be  prepared by b y the Customs Officer Offic er and signed by the Customs Officer Office r and Appraising Officer on behalf of Customs and the exporter or his agent. The disposals of the three copies of the test memo are as follows: (i) Original –  Original –  to  to be sent along with the sample to the test agency. (ii) Duplicate –  Duplicate –  Customs  Customs copy to be retained with the 2nd sample. (iii) Triplicate –  Triplicate –  Exporter’s copy.  copy. 

If he considers it necessary, the Assistant Commissioner/Deputy Commissioner, may also order sample to be drawn for purposes other than testing such as for visual inspection and verification of description, market value inquiry, etc.

Stuffing / loading of goods in containers: The exporter or his agent should hand over the Exporter’s copy of the Shipping Bill duly signed by the Appraiser permitting “Let Export” to the steamer agent who would then approach the proper officer (Preventive Officer) for allowing the shipment. In case of container cargo the stuffing of container at Dock is done under Preventive Supervision. Further, loading of both containerized and bulk cargo is to be done under Preventive Supervision. The Customs Preventive Superintendent (Docks) may enter the particulars of  packages actually stuffed into the container, the bottle seal number, details of loading of cargo container on board into the EDI system and endorse these details on the Exporter’s Exporter’s copy of the Shipping Bill. If there is a difference in the quantity/ number of packages stuffed in the containers/goods loaded on vessel the Superintendent (Docks) may put a remark on the Shipping Bill in the EDI system and that it requires amendment or change in quantity. Such Shipping Bill may not be taken up for the purpose of sanction of Drawback/DEEC logging, till it is suitably amended. The Customs Preventive Officer supervising the loading of container and general cargo into the vessel may give “Shipped on Board” endorsement on the Exporters copy of the Shipping Bill.  Bill.  

24.2 Pollicisation of cargo is done after grant of Let Export Order (LEO). Thus, there is no need for a separate permission for pollicisation from Customs. However, the permission for loading in the aircraft/vessel would continue to be obtained. [Refer Circular No.18/2005-Cus., dated 11-3-2005]

 

 

Amendments: Any correction/amendments in the check list generated after filing of declaration can be made at the Service Centre provided the documents have not yet been submitted in the EDI system and the Shipping Bill number has not been generated. Where corrections are required to be made after the generation of the Shipping Bill number or after the goods have been brought into the Export Dock, the amendments will be carried out in the following manner: (i) If the goods have not yet been allowed “Let Export” the amendments may be permitted by the Assistant Commissioner (Exports). (ii) Where the “Let Export” order has already been given, amendments amend ments may be Permitted only by the Additional/Joint Commissioner in charge of Export.

In both the cases, after the permission for amendments has been granted, the Assistant Commissioner/Deputy Commissioner (Export) may approve the amendments on the EDI system on behalf of the Additional/Joint Commissioner. Where the print out of the ieport.com - India's Premier Export Export Import Portal 36 Shipping Bill has already been generated; the exporter may first surrender all copies of the Shipping Bill to the Dock Appraiser for cancellation before amendment is approved on the system.

In respect of amendment in AEPC Certificate on receipt of request from the exporter, the Assistant Commissioner /Deputy Commissioner (Exports) should allow the change of port in EDI Shipping Bills / invoice to help exporters in getting the goods cleared without waiting for an amendment of documents by AEPC. The ratification of the port of change would be done subsequently by AEPC. [Refer Circular No.46/2003-Cus., dated 5-6-2003

4.6. Generation of Shipping Bills:

After the “Let Export” order is given on the EDI system by the Appraiser, the Shipping Bill is generated in two copies i.e., one Customs copy, one exporter’s copy (EP copy is generated after submission of EGM). After obtaining the print out the Appraiser obtains the signatures of the Customs Officer and the representative of the CHA on both copies of the Shipping Bill and examination report. The Appraiser thereafter signs and stamps both the copies of the Shipping Bill. The Appraiser also signs and stamps the original and duplicate copy of SDF and thereafter forwards the Customs copy of Shipping Bill and original copy of the SDF

41

 

 

along with the original declarations to Export Department. The exporter copy and the second copy of the SDF are returned to the exporter or his agent. ieport.com - India's Premier Export Import Portal  Portal 

Shipping bill: 1.  Customs copy 2.  Examination order 3.  Exporter copy 4.  Exchange control copy 5.  Bank copy

Export General Manifest: All the shipping lines/agents need to furnish the Export General Manifests, Shipping Billwise, to the Customs electronically before departure of the conveyance. Apart from lodging the EGM electronically the shipping lines need to continue to file manual EGMs along with the exporter copy of the Shipping Bills in the Export Department where they would be entered in a register. The shipping lines may obtain acknowledgement indicating the date and time at which the EGMs were received by the Export Department. . 

Electronic Declarations for Bills of Entry and shipping Bills: Bill of Entry (Electronic Declaration) Regulations, 2011 has been framed in supersession of the Bill of Entry (Electronic Declaration) Regulations, 1995 to incorporate changes made vide Finance Act, 2011 and mandate self-assessment by the importer or exporter, as the case may be. Likewise, Shipping Bill (Electronic Declaration) Regulations, 2011 are framed in tune with statutory provisions of Sections 17, 18 and 50 of the t he Customs Act, 1962. Shipping Bills are done or prepared on the company software known as Citrix or Gac freight.

42

 

43

 

CHAPTER –  5  5 SUGGESTIONS SUGGESTION S & CONCLUSION

 

44

 

5.1.  SUGGESTIONS   Most of the customers are exporters. Hence there t here should be steps to attract

importers also. Value added services can be provided to attract the importers.  

  The main source of promotion is through direct marketing; hence the promotional

activities have to be improved. The promotion can be done through advertisement in newspapers, journals, magazines and also through internet  

  The shipping destination is only port-port. There is no port- warehouse,

warehouse- warehouse transportation. Firm should improve the road transportation, which is also an important part of logistics activity.  

  The company lacks a warehouse facility which is very necessary in an efficient

logistics activity. It can have its own warehouse or lease one. 

 

The technology used should be upgraded to ensure 100% utility of resources. 

 

Resources should not be left idle as it causes additional cost  

 

45

 

5.2.  Conclusion

The study ON Market Potential Of Freight Forwarding Business has Business  has paved way to understand the various process and various functions Freight Forwarding in an organization. GAC India is one of the leading agents in India. GAC offers principles round the clock (24/7) comprehensive range of ship agency services for any type t ype of port calls, including attendance required in connection with vessel demolition and ship to ship transfer etc

Such that I would like to conclude the Study goes in a well manner. 

 

46

 

CHAPTER –  6  6 REFRENCES

 

47

 

REFERENCES 

 

www.gacindia.com   www.gacindia.com

 

www.cochinport.com www.cochinport.com  

 

www.wikipedia.com   www.wikipedia.com

 

Company’s previous files and records  records 

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