Custom Clearence Project

8/10/2019 Custom Clearence Project

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Sri Sharada Institute Of Indian Management -Research

Approved by AICTE

Plot No. 7, Phase-II, Institutional Area, Behind the Grand Hotel, asant !un" ,

Ne# $elhi % &&''7' (ebsite) ###.srisii*.or+

INTERNATIONAL BUSINESS (DM4 !"

#RO$E%T RE#ORT

ON

%USTOM %LEAREN%E

IN T&E #ARTIAL 'UL'ILLMENT O' T&E RE UIREMENT O' 4th TRIMESTER

Su)mitted T*+- Su)mitted B,+-

#r*f . # /u0ta Anurag %h*udhar,(1 23 2 " 'acu5t, *f SRISIIM Anm*5 Raina(1 23 2 6"

Amit Singh (1 23 2 4" Nitesh .erma(1 23 23 "

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http://www.srisiim.org/http://www.srisiim.org/


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DE%LARATION

(e hereby de lare that the ollo#in+ pro"e t report o %USTOM %LEAREN%E is an

authenti #or done by us. This is to de lare that all #or indul+ed in the o*pletion o this#or su h as resear h, analysis o a tivities o *a ro is a pro ound and honest #or o ours.

Sri SIIMPla e) Ne# $elhi

Anura+ Choudhary/0'&1'&'23 A*it 4in+h/0'&1'&'53 An*ol 6aina/0'&1'&' 3 Nitesh er*a/0'&1'&1'3 #/DM Batch+ 1 23-1 27

A%8NO9LED/EMENT

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(e #ould li e to e8press our hearty +ratitude to our a ulty +uide, #r*f . #/u0ta or +ivin+ us the opportunity to prepare a pro"e t report on :%USTOM%LEAREN%E; and or his valuable +uidan e and sin ere ooperation, #hi h helped us in

o*pletin+ this pro"e t.

Amit Singh (1 23 2 4"Anm*5 Raina(1 23 2 6"

Anurag %h*udhar, (1 23 2 " Nitesh .erma (1 23 23 " #/DM+ 1 23 < 27

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Ta)5e *f %*ntents

INTRODUCTION.........................................................................................5

EXPORT ..................................................................................................15

IMPORT..................................................................................................24

SUGGESTIONS........................................................................................30

CONCLUSION..........................................................................................31

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INTRODUCTION

In vie# o the rapidly and onstantly han+in+ business environ*ent +lobally and astevolvin+ trade and o**er e s enario in India vis-9-vis +lobal *ar et, there isin reasin+ re:uire*ent o reliable and dependable inte+rated lo+isti s solutions

providers #ho an provide o*prehensive, pro essional and dependable lo+isti ssupport to the industry, eepin+ the sa*e in *ind and #ith the vision to provide:uality and pro essional o*prehensive lo+isti s solutions to the international ;do*esti trade. In the develop*ent o any ountry&, it has been shi ted to the *inistry o transport

and shippin+. In &257, the +overn*ent o India has announ ed the national poli y onshippin+, ai*in+ at the total develop*ent o the industry. In order to a elerate thedevelop*ental e orts, the ne essity or a entrali ed ad*inistrative or+ani ation has been elt.A ordin+ly in 4epte*ber ne essity or a entrali ed ad*inistrative or+ani ation has been

elt. A ordin+ly in 4epte*ber &252, the dire torate +eneral o shippin+ #ith its head:uarters atBo*bay has been established #ith the ob"e tives o pro*otion and develop*ent o Indianshippin+ industry.

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Shipping Company:D4hippin+ Co*pany is o*panies #hi h invest his apital in pur hase o

ships and provide transport servi e throu+h the sea to its usto*ers is no#n as shippin+o*pany.

Basi ally the shippin+ o*panies provide servi es in t#o #ays -&. T6A=P 4HIP40. FINE6 4HIP4

Tram0 Shi0s+-Tra*p ship or +eneral trader, does not operate on a i8ed sailin+ s hedule, but

*erely trades in all parts o the #orld in sear h o ar+o, pri*arily bul ship*ents. It is ahartered ship prepared to arry anythin+ any#here. Its ar+oes in lude oal, +rain,

ti*ber, su+ar, ores, ertili ers, et li e #hi h are arried in o*plete shiploads.Tra*p tan ers are spe iali ed vessels. They *ay be under harter or be

operated by an industrial o*pany, that is oil o*pany, *otor *anu a turer, et to suit their o#n individual?*ar et needs.

Liner Shi0s+-Finer ship operates on a i8ed route bet#een t#o ports or t#o series o ports.

They operate on a re+ular s heduled servi e. They sail on s heduled dates?ti*es #hetherthey are ull or not. The ost o usin+ the servi e / rei+ht3 an be :uoted ro* a i8edtari .Container ships in deep sea trades and roe ship in the short sea trades eature

pro*inently in this ield.

Different T,0es *f Shi0s+-&. Container ships0. 6oll-on?roll-o ships1. Brea -bul ships5. Crude arries>. $ry-bul arriers

. Gas arriers

%*ntainer Shi0+- Container ship is also no#n as a B@ 4HIP< Container ships ater to only ontaineri ed ar+o and +enerally have ranes on

board.

They an store up to 5 tiers o ontainers belo# the *ain de and up to 1 tiers above de .

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6oll-on?roll-o ships #ere reated to a o**odate ar+o that #as sel propelled, su h as auto*obiles or tru s, or ar+o that ould be #heeled into aship, su h as railroad ars. They are essentially loatin+ +ara+es. It ta es lon+ ti*eto load su h vehi les over the rail it is pre erable to load the* by rollin+ the* ontothe ship.

6oll-on?6oll-o ships there ore have a portion o their hull that opens up and a ts as a ra*pon #hi h the vehi les are driven be ore bein+ par ed on the *any de s o the ship andse ured #ith hains. The hull openin+ is either on the side o the ship or on its stern /rear3.Thisship have an advanta+e in that spe iali ed li tin+ e:uip*ent is not re:uired, even or theheaviest o loads, sin e the ar+o rolls under its o#n po#er or pulled by a tra tor.

Brea>-Bu5> Shi0s+

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Brea -bul ar+o ships are *ultipurpose ships that an transport ship*ents o unusualsi es, uniti ed on pallets, in ba+s, or in rates.$ue to in reasin+ role o 6@6@ /6oll-on?6oll-o 3 ships, ontainer ships, brea -

bul ships share o international trade is de reasin+.The advanta+e o brea -bul ships is that they an all at "ust about any port to pi updi erent inds o ar+o loads, +ivin+ the* a le8ibility that ontainer ships do not yethave.The *ain proble* #ith a brea -bul ship ste*s ro* its labor-intensive loadin+and unloadin+ be ause ea h unit o ar+o handles separately.

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%rude %arriers+-

Crude arriers are the bul ships dedi ated to the transport o petroleu* produ ts,#hether unre ined or re ined, su h as +asoline or diesel uel.

The rude arriers are also no#n as FCC / ery Far+e Crude Carriers3 andFCC / ltra Far+e Crude Carriers3.

FCCs and FCCs are su h lar+e ships that they an all on only a e# ports in the#orldJ sin e their dra t, #hen loaded, an rea h 1> *eters/&&> eet3 they need verydeep ports or berthin+.

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Dr,-Bu5> %arriers+

$ry-bul arriers operate on the sa*e basis as oil tan ers in that they are hartered or a#hole voya+e

$ry-bul ships have several holds in their hull, in #hi h non-uniti ed ar+o is pla ed.

$ry bul ships arry a+ri ultural produ ts, su h as ereals, as #ell as oal, ores,s rap iron, dry he*i als, and other bul o**odities.

$ry-bul ships are +enerally s*all enou+h to it throu+h the PANA=A CANAF.

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/as %arriers+

Another i*portant bul trade is the transportation o Fi:ue ied Natural Gas/FNG3 and o Fi:ue ied Petroleu* Gas /FPG3. These types o arriers have a verydistin tive shape. These ships hold several spheres o o*pressed +asses, only

part o #hi h are visible above their *ain de .

The FNG and FPG trades tend to be sli+htly di erent than the avera+e bultransport, as they are used in a parti ular trade or lon+ periods o ti*e, on lon+-ter* ontra ts- alled ti*e harter parties and there ore nearly have a sailin+s hedule, not unli e liner ships.

%*ntaineri?ati*n+

Containeri ation and initiated arevolution in the history o shippin+ industry.

Be ore ontaineri ation, ar+o has to be loaded irst into the tru and later tru is todriven to the port, unload the +oods at the port and the* into the ship at the port. Thishas been a u*berso*e pro ess and, in onse:uen e, onsu*ed a lot o ti*e. Kor

o*pletin+ the e8er ise, ships are detained in the port or about ten days or the entire

pro ess o unloadin+ and loadin+. (ith the arrival o ontaineri ation, shippers havestarted stu in+ into ontainers, at their o#n pla e, and ontainers are brou+ht to the

ontainer yard /inland ontainer depot3 or ship*ent. This pro ess has +reatlya ilitated in t#o, a ter unloadin+ the ontainers and loadin+ the* a+ain into the ship.

The pro ess o ontaineri ation has de on+ested the ports that are heavily ro#ded.4hippin+ is truly the lyn hpin o +lobal e ono*y and international trade.

=ore than2' o #orld *er handise trade is arried by sea and over >' o that volu*e is

ontaineri ed. In today


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arria+e o +oods. E8porters need to +o to the seaport or e8port o +oods. Instead the+oods sent to inland ontainer depot? ontainer rei+ht station or sendin+ to thedestination.

4in e &2>'s, ontainers have revolutioni ed sea-borne trade, and no#arry around 2' o all *anu a tured +oods by sea. The transporters in developedountries have started *a in+ use o ontaineri ation, early no#J developin+ ountries

have started *a in+ use o ontaineri ation, early. No#, developin+ ountries too areta in+ a +reater advanta+e in usin+ ontainers or transportation o +oods. $i erent

ountries are +ivin+ lo+isti support, +ivin+ the ne essary boost to i*prove there:uired in rastru ture to ontaineri ation, or en oura+in+ e8port industry.

Containeri ation is to ontribute about 00. to total ar+o by 0'&'-&&. The robust +ro#th o India


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Challen+es Container port de*and and apa ity i*balan e)In vie# o the buoyant +lobal *er handise trade s enario, ontainer port

de*and has been +ro#in+ rapidly. Globali ation has spurted *er handise trade, #hi h is ready or bi+ stride. $urin+ the last our years, #orld ontainer tra i has been +ro#in+ at over 2.0 per annu*, #hile ontainer port apa ity is +ro#in+ at an avera+e 5.> perannu*. There #ill be re:uire*ent or additional port apa ity to be built i the urrenttrend and port utili ation level is *aintained by 0'&'. The pro"e ted +lobal ontainerde*and and ontainer port apa ity illustrates that there #ill be a hu+e di eren e

bet#een ontainer port de*and and apa ity in the ne8t our to ive years. This is oneo the *a"or hallen+es or +lobal ontainer trade. E8tra apa ity should be built to*eet the +ro#in+ de*and.

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T,0es *f c*ntainers-+There are di erent types o ontainers. The popular types are)

2 /enera5 0ur0*se c*ntainers-+There are the *ost o**on type o ontainers and are the ones #ith

#hi h *ost people are a*iliar. Ea h +eneral-purpose ontainer is ully losed and

has #idth doors at one end or a ess. Both li:uid and solid substan es an be loaded inthese ontainers. Based on len+th o the ontainer, the ontainer is +enerally no#n as a0' t ontainer or 5' t ontainer, in pra ti e. Ha ardous or dan+erous ar+o an not beloaded into +eneral-purpose ontainers.

1 Reefer c*ntainers (refrigerated" -+These play an i*portant role in 4outh - A ri a c*ntainers-+These are built espe ially or the arria+e o dry po#ders and +ranular substan es in bul .

4 O0en t*0=*0en sided c*ntainers-+These are built or heavy and a# #ard pie es o ar+o. These ontainers are ideal

#here hei+ht o the ar+o is in e8 ess o hei+ht o the standard +eneral purposeontainers.

7 Li uid carg* c*ntainers-+These are ideal or bul li:uids, su h as #ine, ruit on entrates,

ve+etable oils, deter+ents and various other non-ha ardous he*i als. Bul li:uid ba+s,

desi+ned to arry spe i i o**odities, an it into these ontainers.

! &anger c*ntainers-+They are used or the ship*ent o +ar*ents on han+ers.

%ust*m &*use Agent+DCusto* House A+ent *eans a person li ensed, te*porarily or other#ise,

under the re+ulations *ade under sub-se tion /03 o se tion &5 o the Custo*s A t, &2 0.A person is per*itted to operate as a usto*s house a+ent,

te*porarily under re+ulation /&3 and per*anently under re+ulation &', o the Custo*sHouse A+ents Fi ensin+ 6e+ulations, &2 5. The servi es rendered by the usto* housea+ent are not *erely li*ited to the learin+ o the i*port and e8port onsi+n*ent. TheCHA also renders the servi e o loadin+?unloadin+ o i*port or e8port +oods

ro*?at the pre*ises o the e8porter?i*porter, the pa in+, #ei+h*ent, *easure*ento the e8port +oods, the transportation o the e8port +oods to the usto*s station or thei*port +oods ro* the usto* station to the i*porters pre*ises, arryin+ out o variousstatutory and other or*alities su h as pay*ent o e8penses on a ount o de-stu in+?

pelletisation ter*inal handlin+, u*i+ation, dra#ba ? $EEC pro essin+, survey?a*end*ent ees, do ees, repairin+ and e8a*ination har+es, landin+ and ontainer

har+es, statutory labour et this e8penses paid on behal o i*porter and e8porter.The CHA is ordinarily rei*bursed by the i*porter? e8porter or #ho* the aboveservi es are rendered.

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EC#ORT

E 0*rt 0re5iminaries+In order to enter into e8port business, ertain preli*inary steps have to

be ta en by every business or+ani ation. The settin+ up o an e8port ir* iso*pleted in t#o sta+es. They are)

A"Esta)5ishing a )usiness firm-+There are various or*alities and re+istrations to be *ade #ith di erent

authorities be ore an e8porter an enter into e8port business and a ept an e8port order.

1& Se5ecti*n *f name *f the firm-+ An entrepreneur an hoose any na*e or the ir* he#ants to start. It is desirable that the na*e o the ir*s indi ates that the businessrelates to e8port?i*port.

1"A00r* a5 t* name *f firm-+ There is no need to obtain prior approval ore+ional li ensin+ authority o $GKT /$ire torate General o Korei+n Trade3 or

the proposed na*e o business ir*. Ho#ever, i the ir* is plannin+ to e8portready*ade +ar*ents to any ountryJ approval ro* Apparel E8port Pro*otionCoun il /AEPC3 is re:uired. The entrepreneur has to apply to AEPC in the

pres ribed appli ation or* or the learan e o the na*e. @n e the na*e isapproved, re+istration o ir* in that na*e #ith AEPC is to be *ade #ithin a

period o three *onths. A ter the re+istration is done, the ir* #ould be o*ere+istered e8porter.

2& Registrati*n *f Organi?ati*n-+ The or* o or+ani ation an be sole partnership, partnership ir* under Indian partnership a t, &210 or "oin sto

o*pany re+istered under the o*panies a t, &2> .

4"O0ening *f Ban> Acc*unt-+ The ir* or o*pany has to open a ban a ount#ith bran h o a o**er ial ban , authori ed by reserve ban o India to deal in

orei+n e8 han+e. The ir* *ay re:uire pre and post ship*ent inan e or its business.

7" O)taining #ermanent Acc*unt Num)er -) e8port in o*e is sub"e t to a nu*ber o e8e*ptions and dedu tions under the in o*e ta8 a t. Kor lai*in+ thosee8e*ptions and dedu tions, it is ne essary or every e8porter to obtain per*anent a ountnu*ber ro* the in o*e ta8 authority.

!" Registrati*n Fith Sa5es Ta Auth*rities-+ e8porter need not pay sales ta8 #hile*a in+ pur hases *eant or e8port. But or availin+ the bene it, ir* has to re+ister #ith sales ta8 authorities and se ure sales ta8 nu*ber.

B"O)taining the im0*rter-e 0*rter c*de num)er -+

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This is re:uired or o*pletin+ other re+istrations.

2 Im0*rter - E8porter Code Nu*ber /IEC3-) No e8port or i*port transa tion an be *ade#ithout obtainin+ an i*porter-e8porter ode nu*ber. IEC nu*ber is a pre- ondition or e8ports

ro* and i*ports into India. IEC nu*ber entitles to i*port or e8port any ite* o non-prohibited+oods. This ode nu*ber is *ade o*pulsory no#. The re+istered ?head o i e o the appli antshall *a e an appli ation or +rant o IEC nu*ber to the re+ional o i e o $GKT/ no#n as 6e+ional Fi ensin+ Authority3, havin+ territorial "urisdi tion over the

ir*, alon+ #ith the ollo#in+ do u*ents) pro ile o the e8porter?i*porter,de*and dra t ro* a ban or rs.&''' as ees, erti i ate ro* the ban er o theappli ant, t#o opies o passport si e o the appli ant, de laration on appli ant


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E 0*rterGs incenti es H draF)ac>+

Ad ance 5icense -) inputs re:uired or *anu a turin+ e8port produ ts an be i*ported#ithout pay*ent o usto* duty under advan e li ense. 4in e the ra# *aterials an be i*ported be oree8ports o inal produ t, the li ense issued or this purpose is

alled Dadvan e li enses . An advan e li ense is issued under duty e8e*ption s he*eto allo# i*port o inputs, #hi h are physi ally in orporated in the e8port produ t. Dut, free re05enishment certificate (D'R%"+- $K6C is issued to a *er hant e8porter or *anu a turer e8porter or the duty ree i*port o inputs su h as ra# *aterials, o*ponents, inter*ediates, onsu*ables,spare parts, in ludin+ pa in+ *aterials to be used or e8port produ tion. 4u h li ense is +iven sub"e t o the

ul il*ent o ti*e bound e8port obli+ation.

Dut, entit5ement 0ass)**> scheme (DE#B" +- under the $EPB s he*e, an e8porter *ay apply or redit as a spe i ied per enta+e o ob value o e8ports, *ade in reely onvertible urren y. The redit shall

be available a+ainst su h e8port produ ts and at su h rates as *ay be spe i ied by the dire tor +eneral o

orei+n trade /$GKT3 by #ay o publi noti e issued in this behal , or i*port o ra# *aterials,inter*ediates, o*ponents, parts, pa a+in+ *aterials, et .

E 0*rt 0r*m*ti*n ca0ita5 g**ds scheme (E#%/" +- EPCG s he*e #as introdu ed bythe E I= poli y o &220-27 in order to enable *anu a turer e8porter to i*port*a hinery and other apital +oods or e8port produ tion at on essional or no

usto*s duties at all. This a ility is sub"e t to e8port obli+ation, i.e., the e8porter isre:uired to +uarantee e8ports o ertain *ini*u* value, #hi h is in *ultiple o tit&e value o apital +oodsi*ported.

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The di erent steps involved in e8port depart*ent are as ollo#s)

Ste0 2+E8porter sends the ollo#in+ do u*ent to 4ha ti Kor#arder)

Letter *f credit ) Assures e8porter his pay*ent pro*ise to pay a seller /bene i iary3upon re eipt o +oods by a buyer i ertain onditions outlined in the letter have been *et. It is a*ethod o pay*ent or +oods in the buyer establishes #hi h his redit #ith a lo al ban ,

learly des ribin+ the +oods to be pur hased, the pri e, the do u*entation re:uired, anda ti*e li*it or o*pletion o the transa tion. pon re eipt o do u*entation, the ban is either

paid by the buyer or ta es title to the +oods the*selves and pro eeds to trans er unds to theseller.

T,0es *f 5etter *f credit %5ean 5etter *f credit+ ne+otiated a+ainst a lean dra t #ithout any do u*entsD*cumentar, 5etter *f credit+ do u*ents spe i ied in the letter o redit *usta o*pany the dra tRe *ca)5e 5etter *f credit+ an be an elled or revo ed any ti*e #ithout the onsent or noti eto the bene i iary

Irre *ca)5e 5etter *f credit+ annot be a*ended, revo ed or *odi ied by the issuin+ ban #ithout the e8press onsent o all parties on erned. Thus the issuin+ ban has de initeunderta in+ to honor dra ts dra#n under that redit, provided that the onditions in letter o reditare *et.%*nfirmed 5etter *f credit+ Issuin+ ban sends letter o redit to the ban lo ated in

bene i iary t* )ac> 5etter *f credit+

SE%ONDAR %REDIT+ In avour o a do*esti supplier. The ori+inal redit ba s these ondary redit and a ilitates the pur hase o +oods ro* a lo al supplier by the ori+inal

bene i iary o F?C.Red c5ause 5etter *f credit+ Allo#s e8porter to #ithdra# a predeter*ineda*ount so that he is able to pay his suppliers and pur hase relevant letter o reditPa in+ list) A list #hi h sho#s nu*ber and inds o pa a+es bein+ shipped, totals o +ross,le+al, and net #ei+hts o the pa a+es, and *ar s and nu*bers on the pa a+es. The list*ay be re:uested by an i*porter or *ay be re:uired by an i*portin+ ountry to a ilitatethe learan e o +oods throu+h usto*s.In *ice+ @ne o the o**on to both international and do*esti transa tions is the bill/invoi e3 that the e8porter sends to the i*porter. Ho#ever, the ontent o aninternational invoi e is *ore o*ple8 and should be prepared sli+htly di erently or a orei+n

usto*er than or a do*esti one.

Ste0 1+@n the basis o invoi e, 4ha ti Kor#arder preparin+ Anne8ure - A, Anne8ure - C, Anne8ure- $ and 4$K / 4tatutory $e laration Kor* 3 alon+ #ith the invoi e.

Ste0 3+4end these anne8ure to the usto* house. The usto* prepares the shippin+ bill in our

opies on the basis o these anne8ure.

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Ste0 4+Custo* al ulate the duty /CE443 on the value o the +oods. sin+ the Treasury Challan the duty an be paid.Car+o an enter the port pre*ises.

Ste07+Custo* e8a*ined the ar+o by usin+ the sa*ple. /Custo*s e8a*ined the ar+o onlya ter the duty is paid3 in ase o *ore than one ontainer in one B?F than A.C +ive

so*e ontainer no. rando*ly or e8a*ination and that ontainer *ust be de-stu byCHA.

Ste0 !+The dupli ate shippin+ bill and #har a+e duly paid is +iven to the ontainer a+ent. The

ontainer a+ent hand over the dupli ate shippin+ bill to the vessel a+ent #ho is here uses it or the purpose o illin+ EG= /E8port General =ani est3.The ontainer a+ent +ives the #har a+e or* paid is +iven to the ontainer a+ent+rants the loadin+ per*ission. /But in ase o the brea bul ar+o, the CHA itselsub*its the #har a+e paid or* to the port authority, so that loadin+ an be allo#edin the vessel3.

Ste0 +In the ase o brea bul , a ter loadin+ the ar+o the hie o i er issues the *ate re eipt, onthe basis o #hi h aptain o the vessel issues the bill o ladin+.

Ste0 6+Besides all the CHA sends the phytosanitary erti i ates?pre inspe tion erti i ate to thee8porter so that #ith all do u*ents he an sub*it this to the ban .

In ase o harter, a ter pro essin+ and ship*ent o the +oods ollo#in+ do u*ents are sent ba by the CHA to e8porter.

'u55 set *f )i55 *f 5ading+ Kor pre arria+e is throu+h ship the bill prepared or e8port is alled bill o ladin+; i the ship*ent is by air then the bill prepared is alled air#ay bill. A bill o ladin+ is a very i*portantdo u*ent. It is issued by the lo+isti s servi e providers. It an be #ell e8plained as a do u*ent issued by a

o**on arrier to a shipper that serves as) A re eipt or the +oods delivered to the arrier or ship*ent. Ade inition o the ontra t o arria+e o the +oods. A $o u*ent o Title to the +oods des ribed therein.This do u*ent is +enerally not ne+otiable unless onsi+ned Lto order.L I #e as to thelo+isti s o*panies than a Bill @ Fadin+ is a produ t or the*. They do the #hole businesson the Bill o Fadin+. In rease in Bill o Fadin+ sho#s in rease in o*pany


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the basis o the invoi e and pa in+ list.The ontainer is stu ed and the re:uired in or*ation is re eived ro* the port o i e, su h as the

ontainer nu*ber, and the essel na*e and No. The details are entered in the 4o t#are / isual4a*udra3 also ea h B?F is +iven a *anual entry i not o*puteri ed. Than the details areentered in the so t#are and the inal print o the B?F is ta en. In B?F there are t#o types.6e eipt or ship*ent) I the shipper #ants a re eipt the shipper an +et the re eipt #hen the

ontainer is ready to load on a vessel.HBF - House Bill o Fadin+HBF - House Bill o ladin+ is *ade #hen the in or*ation is re eived or the port o i e. I the shipper #ants a bill be ore the loadin+ o vessel on board, than HBF is provided. HBF is alsosent to shipper or approval.=BF - =aster Bill o Fadin+=BF- =aster Bill o ladin+ is the inal opy o Bill. It is +iven to the shipper it ontains all the detailso everythin+. The Bill is used to har+e the ees ro* the shipper. It is only +iven a ter the ontainer isloaded on to the vessel or sail. No# i the rei+ht har+es are paid by the e8porter then bill o ladin+ issta*ped as rei+ht prepaid ; i the rei+ht har+es are to be paid by i*porter then bill o ladin+ is sta*pedas rei+ht to pay.

Copy o =ate 6e eipt) Issued by o**andin+ o i er o the ship that ar+o has been loaded tothe ship na*e o the vessel, date o ship*ent, ondition o ar+o at the ti*e o re eipt,

berth, and des ription o pa a+es. =ate re eipt is handed over to the port authorities sothat port dues are leared by the e8porter. Bill o ladin+ is issued by the shippin+

o*pany only a ter the *ate


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DraF)ac> shi00ing )i55+ it is used in ase #hen re und o duties is allo#ed on the +oodse8ported +enerally it is printed on +reen paper, but #hen the dra#ba lai* is paid to a ban ,then it is printed on yello# paper.%ertificate *f *rigin )

A do u*ent provided by the e8porter


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Certi i ate o @ri+in4hip*ent advi e

4" T* the RBI+-

Copy o the invoi e

4ales Contra t

Bill o ladin+

Inspe tion ? Analysis 6eport

7" T* the ECIM Ban>+E8port ontra t

Fetter o Contra tBalan e sheet o the e8porter

4tate*ent o pro it and loss in the transa tion overed by the e8port ontra t 4tate*ent re+ardin+ the pro"e tions o the redit re:uire*ent.

Sh*rt shi0ment+In ase o short ship*ent usto*s sends the short ship*ent noti e Anne8ure C< to the 6BI/6eserve Ban o India3 alon+ #ith G 6 or*.

Sh*rt shi0ment n*tice is in fi e c*0ies+- @ri+inal - Custo*s

4e ond opy - A+ent

Third opy % E8porter

@ne opy- (har a+e re und

@ne opy is or CE44

Treasure %ha55an+-This is do u*ent is used at the ti*e o pay*ent o the duty to the usto*s. It sho#s the a*ountto be paid to the usto*s authority.It is in our opies)-

@ri+inal

$upli ate

Tripli ate

uadrupli ateCusto*s eeps the ori+inal and dupli ate opies. Tripli ate and uadrupli ate opies are sent tothe CHA.

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Tri05icate c*0,+- This opy is or entral e8 ise or availin+ ertain bene its.

uadru05icate c*0,+- This opy is sub*itted to the ban .

#*rt trust c*0ies+- @ut o >th, th, and 7 th opies, one opy is +iven to the port authority. The other t#o opiesare ept by the CHA or his re ord.

T,0es *f )i55 *f Entr,+-

I. Bill o entry or ho*e onsu*ptionII. Bill o entry or #arehousin+

III. Bill o entry or E8-bond learan e or ho*e onsu*ption

Bi55 *f entr, f*r h*me c*nsum0ti*n+- This type o bill o entry is used #hen i*porter #ants to ta e the deliveryo +oods on pay*ent o usto* duty.

Bi55 *f entr, f*r Fareh*using+- This type o bill o entry is used #hen i*porter #ants to #arehousin+ the+oods in usto* bonded #arehouse.

Bi55 *f f*r e -)*nd c5earance f*r h*me c*nsum0ti*n+- This type o bill o entry is used or learin+ the+oods ro* usto* bonded #arehouse a+ainst #arehouse bill o entry on the pay*ent o usto* duties.Another i*portant do u*ent that is used in i*port is bill o ladin+. It plays an i*portantrole both or the e8porter and i*porter.

%a5cu5ati*n *f dut, in im0*rt+ The duty has been al ulated on the basis o assessable value.Assessable value in rupees O CIK /Cost Insuran e Krei+ht3 value landin+ har+es /& o CIKvalue and H.4.4. /Hi+h 4eas 4ale3 CIK 0 &3 I the ase is o K@B /Kree on Board3 then rei+htand insuran e is to be added. I insuran e is not there then &.&0> o the C ; K /Cost andKrei+ht3 value is ta en as insuran e har+es. $uty al ulation is done by CHA as per the +iven rate

o duty or a parti ular produ t.

There are si8 inds o duties, #hi h have to be paid at the ti*e o usto* learan e in ase o i*ports those are)

&. Basi Custo* $uty0. C $1. Additional ess on C $5. 4e ondary and hi+her ess on C $>. CE44

. Custo* se ; hi+her edu ation ess7. Additional Custo* $uty

Fet us onsider that basi usto* duty on the AFF AF =INI = 4CA6P is ' , C $ ,and additional duty is 5 . 4ay basi usto* duty in rupees be , Additional usto* duty

be Q and C $ be R /&0. 0 3

O ' o assessable value

R O Assessable value S /C $3

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Q O Assessable value 5 o A44. AF. R CE44 on C $ 0 4EC.;HIGHE6 E$ .CE44@N C $ & C 4. E$ .CE44 0 &

CE44 on C $ O 0 o R4EC.; HIGHE6 E$ .CE44 @NC $ O & @K R Total duty a*ount /inrupees3 O Q RC 4. E$ .CE44 on Total duty O0 o R E$ .CE44 @N C $ 4;HE$ .CE44 @N C $& o R E$ .CE44 @N C $ 4;HE$ .CE44 @N C $

D*cuments t* )e used in im0*rt+

I. Bill o ladin+II. Invoi e

III. Certi i ate o ori+inI . >2- Bond #arehousin+ bond. (har a+e

I. Bill o entryII. Pa in+ list

III. N@C /No @b"e tion Certi i ate3I . $elivery order

. Treasury hallanI. Gate pass

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DO%UMENTS 9&I%& ARE TO BE USED IN IM#ORT AND EC#ORT %USTOM%LEARAN%E

Letter *f %redit+A Fetter o redit is a do u*ent ontainin+ +uarantee o a ban to honor dra ts dra#n on it

by an e8porter, under ertain onditions and up to ertain a*ounts, provided that the bene i iary ul ills the stipulated onditions.

#ac>ing 5ist+Its is a detailed do u*ent provided by the e8porter that spells out ho# *any

ontainers there are in the ship*ent and #hi h *er handise is ontained in ea hontainer.

In *ice+It is a do u*ent #hi h sho#s the total a*ount o the +oods and the des ription o

+oods.

Bi55 *f 5ading+In +eneri ter* used to des ribe a do u*ent issued by the arrier to the shipper.

Mate recei0t+=ate re eipt is issued by the *ate /assistant to the aptain o the ship3 a ter the ar+o isloaded into the ship. It is an a no#led+e*ent that the +oods have been re eived on board theship

Shi00ing )i55+

It is issued by the usto* authority. 4hippin+ is the *ain do u*ent o the basi o #hi h theusto* per*ission is +iven. A ter the shippin+ bill is sta*ped by usto*, then only the+oods are allo#ed to be enter to the de . It is prepared by E$I syste* or *anually syste*.

%ertificate *f Origin+A do u*ent provided by the e8porter


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#ei+ht basis, the #ei+ht de lared by the overseas supplier is a epted. The erti i ate ontainsthe na*e o the vessel, the port o destination des ription o +oods, :uantity, len+th, breadth,depth et o the pa a+es.

Shi00ing ad ice+

A shippin+ advi e is used to in or* the overseas usto*er about the ship*ent o +oods. Thereis no parti ular or* o shippin+ advi e. The e8porter only advises his i*porter about theinvoi e nu*ber, Bill o ladin+ ? Air#ay bill nu*ber and date, na*e o the vessel #ith date o sailin+ o the vessel.

Bi55 *f entr,+The bill entry is a do u*ent, prepared by the i*porter or his learin+ a+ent in the

pres ribed or* under bill o entry re+ulation, &27&, on #hi h learan e o i*ported +oods an be *ade.

%ertificate *f insurance+A do u*ent providin+ by the insuran e o*pany o the e8porter that the +oods are insured

durin+ their international voya+e.

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SUGGESTIONS

The usto* learan e or i*port and e8port ar+o is su h a lon+ pro edure so it ta es ti*e tolear, so the e*ployee *ust be try to *a e their #or on ti*e and :ui .

4o*e o the o*pli ated pro edure in usto* learan e so i #e +et the support o alle*ployees it *ust be easy.

I usto* learan e done throu+h online then it should be *ore si*ple.

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%ON%LUSION

The Indian business environ*ent is han+in+ #ith the rapid +ro#th in in rastru ture and

te hnolo+y. (ith the in reasin+ in lo#s o *ultinationals, trade has been in reased,#hi h result in sti o*petition bet#een the or+ani ations.

$espite o the sti o*petition 4ha ti Kor#ar ers pvt. Ftd no#n as the leadin+ usto*learan e a+ent, be ause o their e e tive i*ple*entation o :uality *ana+e*ent

syste* and usto*er entri approa h.

Date post:	02-Jun-2018
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