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SUMMER INTERNSHIP PROJECT REPORT

2012

Export Import & CFS Documentation and Customer

Satisfaction Survey In

Submitted in partial fulfilment of the requirements for the degree of

Postgraduate Program in International Business/ (Marketing)

By

Priyanka Jaiswal

At

GLOBSYN BUSINESS SCHOOL

Salt Lake Sector V

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ACKNOWLEDGEMENT

The training that I undertook in Century Ply Ltd, Kolkata was a unique experience for me. The

theoretical knowledge coupled with practical exposure gave me an excellent opportunity to

understand the nuances of export, import, CFS, logistics management.

It gives me immense pleasure to express my profound gratitude towards Century Ply

Mr. Ashutosh Jaiswal

Mr. Vidyanand Singh

Mr. Anant Rajwanshi

Mr. Partha Bhadhuri

For mentoring and motivating me throughout the internship programme and guiding me in

bringing out this project report on “Export, Import and Logistics Operations through Ships”.

I would express sincere gratitude to Prof. Avik Mukherjee our faculty for his valuable guidance

and encouragement extended during the entire course of the summer training. In the end, I

would like to thank all those people who are left unmentioned here but have contributed in one

form or the other for my successful training in the company.

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DECLARATION

I Priyanka Jaiswal,PGPIB student of Globsyn Business School, Kolkata hereby declare that

I have completed my Summer Internship Project titled as

Operations of CFS in kolkta: With Reference to Procedure in Shipping on 28th June,

2010.

The Information submitted is true & original to the best of my knowledge.

Date: Signature of Student

28TH

June, 2012 (Priyanka Jaiswal)

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CONTENTS

1. CompanyOverview……………………………………………………………………….

2. Diversification &Description……………………………………………………………..

3. Export documentation…………………………………………………………………….

4. Import documentation…………………………………………………………………….

5. What is CFS (Container Freight Station)………………………………………………...

6. Purpose, Facilities, Benefits of using CFS……………………………………………….

7. Types of container handling………………………………………………………………

8. Operations& Documentations of CFS……………………………………………………

9. Questionnaire……………………………………………………………………………..

10. Future Scope of CFS Business in Kolkata………………………………………………..

11. Recommendations………………………………………………………………………..

12. Limitations faced…………………………………………………………………………

13. Reference…………………………………………………………………………………

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CENTURY PLY BOARDS (I) LTD.

Established in 1986 in Kolkata, a joint effort of Mr. Sajjan Bhajanka and Mr. Sanjay

Agarwal.

Century Ply brand is leading brand in the Indian organized plywood industry named as

Century Ply Boards (I) Ltd.

It has the distinction of becoming the first ISO 9002 company in India. Century Ply

Boards (I) Ltd is FSC certified company in Plywood industry showing the effort to

ecological interest.

It is the leading brand and largest seller of Plywood and Veneers in organized sector.

Century Ply was adjudged the Fastest Growing Company with the Highest Turnover by

the famous Journal Construction World.

The Centre for Monitoring Indian Economy (CMIE) has also given Century Ply the top

position in its surveys.

Most sought-after brand in wood industry in India.

Pan India presence with more than 30 offices across the country.

MISSION

T o provide utmost satisfaction to the consumer through best quality and customer care

To continuously upgrade the product through innovations and convergence of new

technology and to produce the best quality at the lowest cost

To safeguard and enhance shareholder value

To respect the dignity of all employees and together to become instrumental in the

development of the country while protecting the environment

To utilise the surpluses for the welfare of employees and the society at large

VISION

Continue to remain the best Plywood-Panel Corporation in India with growth in allied

areas.

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DIVERSIFICATION

Plywood: - Over the years Century Ply has introduced boiling water resistant

decorative veneers, the 7 year powder-proof guaranteed PF plywood, the revolutionary

non-leachable Fire safe plywood. In 2004, Century Ply's laminate plant started operations.

Cements:- Owns the top-selling cement brand in the North East, „Star Cement‟

Ferrous Alloy: Leading manufacturer in North East India. Shyam Century Ferrous

Ltd came in to existence in the year 2001 in Meghalaya. The unit was mainly set up to

capture the growing demand of Ferro silicon, an integral constituent used in the production

of steel.

Power Plant; - Century Ply is also in power generation with a captive power plant in

North-East.

Export/ Import: - Century Ply imports in huge quantity from Europe, Australia,

Malaysia, Indonesia and other south east countries. The imports are of wooden logs,

veneer, and paper based product and chemical for indigenous use. They are exporter of

High Pressure laminates to USA, Europe, Indonesia, Malaysia, Singapore, Jeddah, UK,

Canada, etc.

CFS: - A CFS is an extended arm of Port/ ICD/Air cargo Complex, where import/

export goods are kept till completion of their examination and clearance. All the activities

Century Ply

Plywood/ Laminates

Cements

Ferrous Alloy

Power Plant

CFS(Container Freight Station)/

Logistics

Import/

Export

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related to clearance of goods for home consumption, warehousing, temporary admissions,

re-export, temporary storage for onward transit and outright export and transshipments

take place from such stations.

Management

The company is managed under the overall guidance of Board of Directors comprising

of experienced and distinguished professionals.

Mr. Sajjan Bhajanka- Managing Director

Shri S. B Ganguly – Chairman

Mr. Hari Prasad Agarwal- Vice Chairman

Mr. Sanjay Agarwal- Jt. Managing Director

Shri Prem Kumar Bhajanka- Jt. Managing Director

Shri Vishnu Khemani- Jt. Managing Director

Sri. Manindra Nath Banerjee- Director

Shri. Mangi Lal Jain- Director

Sri. Sajan kumar Bansal- Managing Director

Shri Brij Bhushan Agarwal- director

Mr. Ajay Baldawa- Executive Director

Ms. Plistina Dkhar- Director

Global Presence

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NATURE AND SCOPE OF THE PROJECT

The scope of work includes:-

Understanding the Domestic and International Logistic Industry.

A thorough research on a Logistic company(Century Ply Board (I) Ltd.) and earning

knowledge about its

Functionality

Operating Procedure

Partial study on “LOGISTIC MANAGEMENT “and understand its functions,

advantages and its prospects in business development.

Detailed survey with existing clients (CHA)

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Proforma Invoice- A pro forma invoice is used in international trade represents the details of

an international sale to customs authorities. It is presented in the place of a commercial

invoice when there is no sale between the sender and the importer, or if the terms of the sale

between the seller and the buyer are such that a commercial invoice is not yet available at the

time of the international shipment. It contains a detail about the cargo and its amount. It does

not mention the Load Port and Destination Port name.

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Purchase Order/Sales Contract-A purchase order (PO) is a commercial document issued

by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the

seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer

to buy products or services. Acceptance of a purchase order by a seller usually forms a one-

off contract between the buyer and seller, so no contract exists until the purchase order is

accepted

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Custom Invoice -Extended form of commercial invoice required by customs(often in a

specified format) in which the exporter states the description, quantity and selling price,

freight,insurance, packing costs, terms of delivery andpayment, weight and/or volume of

the goods for the purpose of determining customs import value at the port of destination.

Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being

presented by the Customs authorities of the importing country. It facilitates entry of goods in

the importing country at preferential tariff rate.

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Custom Packing List- This is issued by the Custom after appraisement of the cargo. It is done

in the Port or in CFS before shipment is done. It contains the details about the good, price,

importers name and exporters name with load port and destination port with a Custom stamp

on it.

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Central Excise Invoice-

Forms ARE-1- Application for removal of excisable goods for export by air/sea/port

Form ARE-4- Through this application appraisement of cargo in CFS or port is not required.

As the stuffing, checking and sealing is done in warehouse in presence of Custom officer. It is

directed transferred to port for shipment.

Shipping Bill/ Bill of Export- It is the main document required by the Customs Authority for

allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of

certificate for all parties, included ship's owner, seller, buyer and some other parties. For each

one represents a kind of certificate document.

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Bill of lading- Bill of Lading is a document given by the shipping agency for the goods

shipped for transportation form one destination to another and is signed by the representatives

of the carrying vessel. It is issued in the set of two, three or more. The number in the set will be

indicated on each bill of lading and all must be accounted for. This is done due to the safety

reasons which ensure that the document never comes into the hands of an unauthorised person.

Only one original is sufficient to take possession of goods at port of discharge so, a bank which

finances a trade transaction will need to control the complete set. The bill of lading must be

signed by the shipping company or its agent, and must show how many signed originals were

issued.

"FreightPrepaid”: Paidby shipper

"Freight collect”: To be paid by the buyer at the port of discharge

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Certificate of Origin - The Certificate of Origin is required by the custom authority of the

importing country for the purpose of imposing import duty. It is usually issued by the Chamber

of Commerce and contains information like seal of the chamber, details of the good to be

transported. The certificate must provide that the information required by the credit and be

consistent with all other document, it would normally include:

The name of the company and address as exporter.

The name of the importer.

Package numbers, shipping marks and description of goods to agree with that on other

documents.

Any weight or measurements must agree with those shown on other documents.

It should be signed and stamped by the Chamber of Commerce.

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Commercial Invoice- Commercial Invoice document is provided by the seller to the buyer.

Also known as export invoice or import invoice, commercial invoice is finally used by the

custom authorities of the importer's country to evaluate the good for the purpose of taxation.

The invoice must:

Be issued by the beneficiary named in the credit (the seller).

Be address to the applicant of the credit (the buyer).

Be signed by the beneficiary (if required).

Include the description of the goods exactly as detailed in the credit.

Be issued in the stated number of originals (which must be marked "Original) and

copies.

Include the price and unit prices if appropriate.

State the price amount payable which must not exceed that stated in the credit

Include the shipping terms.

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Bill of Exchange- A Bill of Exchange is a special type of written document under which an

exporter ask importer a certain amount of money in future and the importer also agrees to pay

the importer that amount of money on or before the future date. This document has special

importance in wholesale trade where large amount of money involved.

Following persons are involved in a bill of exchange:

Drawer: The person who writes or prepares the bill.

Drawee: The person who pays the bill.

Payee: The person to whom the payment is to be made.

Holder of the Bill: The person who is in possession of the bill.

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IMPORT DOCUMENTS

Packing List

Invoice- An invoice or bill is a commercial document issued by a seller to the buyer,

indicating the products, quantities, and agreed prices for products or services the seller

has provided the buyer. An invoice indicates the buyer must pay the seller, according to

the payment terms. The buyer has a maximum amount of days to pay these goods and

are sometimes offered a discount if paid before.

Sales Contract

Letter of Credit- L/C also known as Documentary Credit is 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. Buyer also provides the necessary

instructions in preparing the document. The International Chamber of Commerce (ICC)

in the Uniform Custom and Practice for Documentary Credit (UCPDC) defines L/C:-

"An arrangement, however named or described, whereby bank (the Issuing bank) acting

at the request and on the instructions of a customer (the Applicant). A key principle

underlying letter of credit (L/C) is that banks deal only in documents and not in goods.

In this system Importer receives all the original documents only after making the

payment.

Bill of Entry -A declaration by an importer or exporter of the exact

nature, precise quantity and value of goods that have landed or are being shipped out.

Prepared by a qualified customs clerk or broker, it is examined by customs

authorities for its accuracy and conformity with the tariff and regulations.

Certificate of Origin

Bill Of Lading

Sea Worthy Certificate- A certificate issued by a classification society surveyor to

allow a vessel to proceed after she has met with a mishap that may have affected its

seaworthiness. It is frequently issued to enable a vessel to proceed, after temporary

repairs have been affected, to another port where permanent repairs are then carried out.

Beneficiary Certificate - The beneficiary certificate is provided in response to details

required and requested by the buyer/importer. The beneficiary's certificate is a

document issued by the beneficiary of the international trade transaction, often in

conjunction with a documentary collection or documentary credit/ letter of credit

(L/C). The beneficiary, normally the exporter, will provide the beneficiary certificate

evidencing a certification that certain actions have been complied with or documents

supplied.

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CONTAINER FREIGHT STATION (CFS)

A CFS is an extended arm of Port/ ICD or temporary storage yard for import & export

containerized cargo, where import/ export goods are kept till completion of their customs

examination and custom clearance. The imported goods can be immediately shifted from the

port to CFS which also helps in the reduction of port congestion. All the activities related to

clearance of goods for home consumption, warehousing, temporary admissions, re-export,

temporary storage for onward transit and outright export and transshipments take place from

such stations.

Shipping & Jetty:- It also helps in operating jetty at Falta, approx. 25 kms from Kolkata in

association with Ministry of Commerce – Govt. of India. The Jetty is equipped to handle 1.5 –

2 lakh tons of cargo every year. The owner and operator of vessels are under the subsidiary of

Century Star Shipping Ltd.

PURPOSE OF CFS

A common user facility with public authority status equipped with fixed installations and

offering services for handling and temporary storage of import/export laden and empty

containers carried under customs control and with Customs and other agencies competent to

clear goods for home use, warehousing, temporary admissions, re-export, temporary storage

for onward transit and outright export.

Decongestion of main sea port

Dwell time reduction

Overall Efficiency: Cost, Time, Volume & Service

CFS & ICDs

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ACTIVITY FLOW AT CFS

Import Cargo :

◦ Container Movement from CY(Container Yard) to CFS(Container Freight Station)

◦ Lift on / lift off to the right location in the Stack Yard

◦ Customs Inspection & Clearance

◦ De-Stuffing, if required.

◦ Payment of CFS dues

◦ Lift off, Out bound transport & Delivery

Export Cargo :

◦ Inbound Container or Cargo at CFS

◦ Container stuffing, if required

◦ Customs Inspection & Seal

◦ Payment of CFS dues

◦ Movement from CFS to CY

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CONTAINER HANDLING

Refrigerated containers – It is used to bring non durable goods. Chemicals, Medicines, Meat

etc. Its rental charges are high .

General Purpose Containers-for all types

of goods.

Open-top containers-are used to keep different of machines or other materials and then

it is tied up with ropes.

Tank containers- used to carry chemicals, oil etc.

It is used to carry dangerous goods and needs special place to keep.

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High-Cube containers- High-cube containers are similar in structure to standard

containers, but taller. In contrast to standard containers, which have a maximum height

of 2591 mm (8'6"), high-cube containers are 2896 mm, or 9'6", tall. High-cube

containers are for the most part 40' long, but are sometimes made as 45' containers.

Flat Rack containers- A container with no sides and frame members at the front and

rear. Container can be loaded from the sides and top. It is used to keep machines.

Platform & insulated containers- Containers used to hold hot or cold products to ensure

that they will be in good condition when they get to the customer's home.

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LOCATION OF CENTURY CFS

Nearest Highway – NH 6, Kona Expressway Junction (Approx. 14 KMS)

Nearest Railhead – Brace Bridge Railway Station (Approx.2 KMS)

Nearest Sea-port – Kolkata Docs System (Approx. 3 KMS)

Nearest ICD/CFS – Central Warehousing Corporation CFS(Approx. 1.5KMS)

INFRASTRUCTURE OF CENTURY CFS

Trailers – 50 Nos. of 40 Mts capacities.

Flood lights/ High mast towers for round the clock operations.

Hard stand field with Paver Blocked for uninterrupted operations even during heavy monsoons.

Canteen facility & CC TV surveillance.

Fire fighting equipments.

Mechanical Crane – 35 tons capacity.

Fork lift – 6 Nos

Kalmar Reach Stacker – 5 Nos.

Handling capacity of Century CFS in terms in TEUS

Century CFS @ Sonai: 3000-3500/Month

Century CFS @ JJP: 9000-11000/Month

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FACILITIES IN CENTURY CFS

EDI Connectivity with fully computerized operations on software developed by CMC.

Customs office.

Shipping agents house for extension counter.

Accommodation for banking facility.

Weighment facility.

Strong Room for valuable cargo.

Reefer container plugs points.

Ample parking space.

Cargo consolidation

PRIME CUSTOMERS

Maersk & Safmarine, APL, NYK, CSAV, MOL, PIL, CMA-CGM, HANJIN, Star Shipping,

Seabridge Maritime, YML & MCS, Evergreen, Transworld Group, Seahorse, Parikh Marine, ULA,

Heppag Lloyd, NLS Agency etc.

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DOCUMENTATION

IGM (Import General Manifest) - it is made by the shipper on reaching the

consignment to destination port. This contains the details of good in each

container given as line number. It becomes easy for both custom and the

importer about the goods.

Form 1 / Form 2 : For removal of Import Containers

Port Payments : Since the container are kept in the port till the removal of

it to CFS or impoter also lift on and lift off facility is provided . Hence for

all this work Port charges a certain amount, which shipping line pays on

behalf of the importer or importer directly pays to the Port.

Job entry

Bill of Entry

Jetty Challan

Delivery Order

Duty Payment

Customs Challan

Appraisement

Seal cutting permission

Gate Pass

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QUESTIONNAIRE

1) Which CFS‟s takes the least time in documentation & container removal from port?

A) CENTURY B) CWC C) BALMER LAWRIE

2) Which CFS employees have the best attitude towards their customers?

A) CENTURY B) CWC C) BALMER LAWRIE

3) Which CFS has the best process & facility for custom & internal CFS documentation?

A) CENTURY B) CWC C) BALMER LAWRIE

4) Which CFS has the best arrangement for handling hazardous, refer and TANK

containers?

A) CENTURY B) CWC C) BALMER LAWRIE

5) According to you which CFS has the best warehousing facility in Kolkata?

A) CENTURY B) CWC C) BALMER LAWRIE

6) Which CFS is operationally smooth in working?

A) CENTURY B) CWC C) BALMER LAWRIE

7) Which CFS is the most economical to work with?

A) CENTURY B) CWC C) BALMER LAWRIE

8) Which CFS takes the least time in billing procedure?

A) CENTURY B) CWC C) BALMER LAWRIE

9) Can you suggest which of the following needs the most improvement in CFS?

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A) Transportation from Port to CFS ( )

B) Customer Relationship ( )

C) Space ( )

D) Security Measure ( )

E) Warehousing Facility ( )

10) Do you think railway connectivity inside the CFS will help in smooth operation or

will give additional support?

A) CENTURY B) CWC C) BALMER LAWRIE

11) What do you suggest CFS‟s of Kolkata for further improvement in operation.

PROBLEMS HIGHLIGHTED

As we know that CFS is a service industry it is important that customer should be well

satisfied and the service should be customer oriented rather business oriented.

After the survey we found that minor issues may leads to major problem which leads to

loss in Business.

Points highlighted by the CHA are:-

Transportation facilities from FCI to Operation department.

Hygiene Food and sitting arrangements.

Proper washroom facilities.

Improvement in top down facilities

Requirement of risk stackers

Payment through cheque and other ways instead of cash

Problem with custom staffs.

Charges to be lowered as compared to other CFS

Improvement in top down facilities.

RECOMMENDATIONS

The person/ manager of CFS should be on round to see the work operations frequently.

The custom should go for appraisement and checking at least thrice a day.

Person working in operations department should be humble and kind to serve the

people.

Transport facility can be provided from FCI to gate also.

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Proper sitting arrangements can help the CHA to work comfortably

Warehousing facilities are required.

Limitation while do the project

Due to limited time period we could cover a smaller part of this field.

REFRENCES

Magazines:

Gateway

Shipping Times

Web sites: www.centurycfs.com

www.centuryply.com

www.eximguru.com

http://www.shipping-worldwide.com

http://www.eximguru.com/exim/guides/export-finance/ch_4_trade_documents.aspx

http://www.cbec.gov.in/excise/formidx.htm

http://www.eximbankindia.com/summary/expproc.pdf

http://www.eximguru.com/exim/guides/export-finance/ch_3_letter_of_credit_lc.aspx

http://www.import-export-made-easy.com/Beneficiarys-Certificate.html