AN INTERNSHIP REPORT ON

“STUDY ON FREIGHT FORWARDING AND IT’S DOCUMENTATION”

AT DB SCHENKER INDIA PVT LTD

DEPARTMENT OF B.VOC LOGISTICS MANAGEMENT

NIRMALA COLLEGE MUVATTUPUZHA

MAHATMA GANDHI UNIVERSITY

BVOC DEGREE COURSE 2020-2023 SEMESTER 6

UNDER THE SUPERVISION OF : Ms. BINNY MATHEWS

SUBMITTED BY : JOYAL JOHNY

Reg No. 200041000231

1
 NIRMALA COLLEGE MUVATTUPUZHA

2022-2023

CERTIFICATE

This is to certify that the project work entitled “STUDY ON FREIGHT FORWARDING &
IT’S DOCUMENTATION” submitted to Mahatma Gandhi University in partial fulfilment of
the requirement of degree in Bachelor of Vocational in Logistics Management is a record of
original work done by JOYAL JOHNY under my supervision and guidance.

Place : Muvattupuzha

Date :

Signature of Guide :

Name of Guide : Ms. BINNY MATHEWS

Signature of External Examiner :

Name of External Examiner :

Signature of Head:

Name of Head : Ms. SOUMYA T K

2
 DECLARATION

I, JOYAL JOHNY, hereby declare that this internship report entitled, “STUDY ON
FREIGHT FORWARDING & IT’S DOCUMENTATION” is based on the original study
conducted by me and is submitted in partial fulfilment of the requirements for the award of
the degree of Bachelor of Vocational in Logistics Management, Mahatma Gandhi University,
Kerala.

Place : Muvattupuzha

Date :

JOYAL JOHNY

3
 ACKNOWLEDGEMENT

It is with great pleasure and gratitude that I acknowledge my indebtedness to those who have
helped me in completing the study.

At the very outset, I would like to thank the ALMIGHTY for showering his blessings and
supernatural grace in abundance upon me, without which this organization study would not
have been taken up and completed successfully.

I express my sincere gratitude to my guide, Ms. Binny Mathews, for her constant guidance
and support for successful completion of the project work. We would like to extend our
gratitude to Dr. Thomas K.V, the principal, Nirmala College Muvattupuzha, for granting the
permission to do the internship work.

I express my sincere acknowledgement and gratitude to DB SCHENKER INDIA PVT LTD,

who granted me the permission to do my project work at their reputed organization. I wish to
express my indebtedness and gratitude to Pooja Shetty (South Regional Manager - People &
Organization), Litty Varghese (Senior Manager - Ocean Freight), Sunil Kumar (Deputy
Manager – Land Transport) DB Schenker India Pvt Ltd. I am grateful to all the staffs for
giving me information and valuable assistance at every stage of my study.

I also thank my friends and family members who encouraged me at every stage of my work
and helped me in various ways during the study.

JOYAL JOHNY

Reg no: 200041000231

4
 INDEX

CHAPTER NO. TOPIC PAGE NO.

1 INTRODUCTION 6-11

2 INDUSTRIAL PROFILE 12-16

3 COMPANY PROFILE 17-20

STUDY ON FREIGHT

4 FORWADING & 21-61

IT’S DOCUMENTATION

FINDINGS,
5 SUGGESTIONS, 62-65
CONCLUSIONS.

6 BIBLIOGRAPHY 66-67

5
INTRODUCTION

6
INDRODUCTION

Internship is a partial requirement of under graduation. It offers a great opportunity for any
student to get some tremendous and brilliant ideas about the practical field. It is also a
challenging experience to prepare Internship Report which increases intellectual abilities as an
efficient graduate. As forwarding sector have emerged as the most important player of our
economy and they also offer a passionate environment for career development, so it was my
premier objective since the very beginning of BVOC Logistics Management program to
accomplish internship in this type of institution.

A developed forwarding sector plays a vital role for marketing stability of a country. It is now
providing their forwarding service with lot of sectors. I am very glad for getting the opportunity
to accomplish my practical training in the DB SCHENKER INDIA PVT LTD Bengaluru
branch. The internship report has been based on the freight forwarding and overall system of
DB SCHENKER. During one month internship period spanning form 9th January to 3rd
February in DB SCHENKER, the writer of this report gained practical knowledge about the
freight forwarding field and worked on a report titled “STUDY ON FREIGHT
FORWARDING & IT’S DOCUMENTATION”.

1.1 SCOPE OF THE STUDY

There are many sections under the forwarding line general. I have worked in two sections
vigorously. I had to spend most of the time working in land & ocean department and thus, I
acquired a competitive advantage of knowing the freight forwarding procedures better. This
motivated me to prepare the internship report on freight forwarding. This report finding will
be limited to the overall freight forwarding process.

1.2 OBJECTIVES OF THE STUDY

1. To know the concept of a freight forwarding industry
2. To gain knowledge about the import & export procedures & it’s documentation
3. To gain knowledge about customs clearance & documentation
4. To know how the freight forwarding company works.

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1.3 NEED OF THE STUDY

To attain knowledge and gets experience in Freight Forwarding. This study helps to improve
the process of freight forwarding and their procedures for documentation.

1.4 METHODOLOGY OF THE STUDY

For achieving the specific objectives of this study were gathering from both primary and
secondary sources.

1.4.1 Primary Source:

• Direct conversation with the respective officers of the Departments.

• Face to face conversation with the employees.

• Observation of the freight forwarding department

1.4.2 Secondary Sources:

• Various records of the forwarding line.

• Different Types of brochures.

• Website of DB SCHENKER

• Personal files of the employee

• Different books & websites

1.5 PERIOD OF STUDY

Internship period started from 09.01.2023 and ends in 03.02.2023.

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1.6 LIMITATIONS OF THE STUDY:

Forwarding line is, in fact, a huge operation and it is quite impossible to cope up all the activities
during internship period. And that for reason, limitations prevail while conducting the study.
The basic limitation faced in preparing the report was:

 The confidentialities in freight policies limited the access of information.

 As the changing shipping policies restricted to ascertain the true performance of the
 employees in the respective departments.
 It was harder for employees in each department to cope with frequent changes in the
 shipping polices.
 Few officers sometime felt disturbed, as they were busy in job.
 Sometimes they did not want to supervise us out of their official work.
 Sometimes it was difficult to collect data from their files, because important files are kept
 in vault for safety.
 Performance appraisal is a very sensitive issue. So much informations are not been
 disclose as sack of secrecy.
 It is difficult to make information based a rich report in a short time period.
 For the security of the organization many information couldn’t provide me.
 This report is prepared within a short time.

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ABBREVIATIONS

• CHA-Customs Housing Agent

• CFS- Container Freight station
• B/L- Bill of Lading
• HBL-House Bill of Lading
• MBL- Master Bill of Lading
• SI- Shipping Instruction
• NVOCC- Non-Vessel Operated Cargo Carriers
• VGM- Verified Gross Mass
• POD- Port of Discharge
• POL- Port of Loading
• TOS- Terms Of shipment
• COB- Cargo on Board
• TT- Transit Time
• HS Code- Harmonized System Code
• PO- Purchase order
• CRO- Container Releasing Order
• CBM- Cubic Metre
• ATA/ATD- Actual Time of Arrival/Discharge
• LEO- Let Export Order
• LOI-Letter of Indemnity
• COD-Change of Destination
• OTL- One Time Lock
• SOLAS- Safety of Life at Sea
• COO- Certificate of Origin
• HSN - stands for Harmonized System of Nomenclature and is used to classify goods in a
systematic manner.
• IO – Internal order no
• TMS – Transportation Management System
• DSR – Daily Status Report
• POD – Proof of Delivery
• LR – Lorry Receipt
• GSTIN – Goods and Services Tax Identification Number
• FT – Feet
• ULD – Unit Load Devices

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• TBD – Time Before Departure
• TBA – Time Before Arrival
• IGM – Import General Manifest
• ETA – Estimated Time of Arrival
• CoA – Contract of Affreightment
• IEC – Import Export Code
• ADC – Authorized Dealer Code
• ICEGATE – Indian Customs Electronic Gateway
• CBIC – Centre Board of Indirect Tax and Customs
• MSDS – Material Safety Data Sheet

11
INDUSTRIAL PROFILE

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2.1 LOGISTICS

Logistics companies plan, implement, and control the movement and storage of goods,
services, or information within a supply chain and between the points of origin and
consumption. Various logistics companies handle some or all of these supply chain functions,
depending on a client’s logistical needs.

Logistics is a term synonymous with the military. In times of war supplying troops with the
proper equipment and supplies was a logistics function. Logistics has evolved since the 1950s
with the rise of consumerism and the subsequent growth of more complex supply chains.

Coordinating the movement of supplies and materials is now a globalized process. Today,
the business sector uses logistics as a term to describe the efficient flow and storage of goods
from point of origin to the point of consumption. The supply chain is a vital part of this
process. A proper supply chain may include transportation, shipping, receiving, storage, and
management of all or one of these functions. Logistics may also apply to information,
transportation, inventory, warehousing, material handling, packaging, disposal, and security
within the business sector.

People often use the terms 3PL and freight broker interchangeably, however, this creates
confusion regarding the nuances of either service. 3PLs and Freight Brokers are both
intermediaries between the shipper and the carrier, yet their roles differ. A broker focuses
primarily on executing a singular shipment and works to meet specific cost and service goals.
The 3PL provider thinks about the bigger picture and more strategically. They plan earlier in
the supply chain and anticipate the needs of a client through every step of the supply chain,
transport, and delivery process.

2.2 SUPPLY CHAIN MANAGEMENT

Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products. It involves the active
streamlining of a business’s supply-side activities to maximize customer value and gain a
competitive advantage in the marketplace. Supply chain management (SCM) represents an
effort by suppliers to develop and implement supply chains that are as efficient and

13
 economical as possible. Supply chains cover everything from production to product
development to the information systems needed to direct these undertakings.

Typically, SCM attempts to centrally control or link the production, shipment, and
distribution of a product. By managing the supply chain, companies can cut excess costs and
deliver products to the consumer faster. This is done by keeping tighter control of internal
inventories, internal production, distribution, sales, and the inventories of company vendors.
Supply chain management is important because it can help achieve several business
objectives. For instance, controlling manufacturing processes can improve product quality,
reducing the risk of recalls and lawsuits while helping to build a strong consumer brand. At
the same time, controls over shipping procedures can improve customer service by avoiding
costly shortages or periods of inventory oversupply. Overall, supply chain management
provides several opportunities for companies to improve their profit margins and is especially
important for companies with large and international operations.

2.3 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 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.

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. As such, freight forwarding depends on having the

14
right people whose commitment to excellence and customer satisfaction ensures that goods
reach their final destination in a timely and efficient manner.

2.4 TRANSPORTATION

Transportation is the movement of humans, animals, and goods from one location to another.
In other words, the action of transport is defined as a particular movement of an organism or
thing from a point A to a point B.

Modes of transport include air, land (rail and road), water, cable, pipeline, and space. The field
can be divided into infrastructure, vehicles, and operations. Transport enables trade between
people, which is essential for the development of civilizations.

A mode of transport is a solution that makes use of a particular type of vehicle, infrastructure,
and operation. The transport of a person or of cargo may involve one mode or several of the
modes, with the latter case being called inter-modal or multi-modal transport. Each mode has
its own advantages and disadvantages, and will be chosen on the basis of cost, capability, and
route.

Governments deal with the way the vehicles are operated, and the procedures set for this
purpose, including financing, legalities, and policies. In the transport industry, operations and
ownership of infrastructure can be either public or private, depending on the country and mode.

Passenger transport may be public, where operators provide scheduled services, or private.
Freight transport has become focused on containerization, although bulk transport is used for
large volumes of durable items. Transport plays an important part in economic growth and
globalization, but most types cause air pollution and use large amounts of land. While it is
heavily subsidized by governments, good planning of transport is essential to make traffic flow
and restrain urban sprawl.

15
Modes of Transportation:

AIR

The Air transportation is the fastest method of transport. Air transport is an important enabler
to achieving economic growth and development. Air transport facilitates integration into the
global economy and provides vital connectivity on a national, regional, and international scale.
It helps generate trade, promote tourism, and create employment opportunities.

LAND

Land transport covers all land-based transport systems that provide for the movement of people,
goods, and services. Land transport plays a vital role in linking communities to each other.
Land transport is a key factor in urban planning. It consists of two kinds, rail and road.

WATER

Water transport is movement by means of a watercraft—such as a barge, boat, ship, or

sailboat—over a body of water, such as a sea, ocean, lake, canal, or river. The need for
buoyancy is common to watercraft, making the hull a dominant aspect of its construction,
maintenance, and appearance.

OTHER

Pipeline transport sends goods through a pipe; most commonly liquid and gases are sent, but
pneumatic tubes can also send solid capsules using compressed air. For liquids/gases, any
chemically stable liquid or gas can be sent through a pipeline. Short-distance systems exist for
sewage, slurry and beer, while long-distance networks are used for petroleum and natural gas.
Cable transport is a broad mode where vehicles are pulled by cables instead of an internal power
source. It is most commonly used at steep gradient. Typical solutions include aerial tramways,
elevators, and ski lifts; some of these are also categorized as conveyor transport.

16
 CHAPTER 3
COMPANY PROFILE:
DB SCHENKER INDIA PVT. LTD.

17
3.1 INTRODUCTION

DB Schenker was established IN 1872 and DB Schenker India Pvt Ltd. was established in 1996.
DB Schenker in India offers a complete range of international air and ocean freight services as
well as integrated logistics services and global supply chain solutions from a single source. DB
Schenker in India combines all transport and logistics activities in integration with DB
Schenker’s global network in 140 countries, 2000 locations and 95,000 employees to provide
seamless end-to end supply chain solutions. With 44+ offices in 37 locations and over 61
warehouse locations with more than 2.3 million sq. ft. of space and with over 1100 logistics
professionals at your service. DB Schenker in India offers business applications and solutions
that are built on revolutionary technologies.

DB Schenker has a mission to provide value-added cost-effective supply chain solutions that
would maximize customer satisfaction, achieve above-market returns, and to become the
employer of choice.

Industry –transportation, logistics and storage

3.2 HISTORY

On July 1, 1872, Gottfried Schenker founded DB Schenker in Vienna in Austria. His approach
of combining individual shipments to collective consignments was a game-changing
innovation for that time. Building on this legacy, the company’s reach has expanded around
the globe and into all modes of transport. DB Schenker is looking ahead towards further
shaping the industry’s future through innovative, digital, and sustainable solutions.

From horse-drawn carriage to freighter drones: In 2022, DB Schenker celebrates its 150th
corporate anniversary. Building on extensive experience in supply chain management, the
Germany-headquartered company has long become one of the world’s leading logistics service
providers.

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3.3 SERVICES

LAND TRANSPORT
DB Schenker is one of the leading providers of Road and multimodal transportation in the
world. Since 1872, when Gottfried Schenker commenced his business with a single truck until
today, with over 150 years of delivering logistics solutions, DB Schenker leads in providing
reliable transportation services. In Asia Pacific, DB Schenker is one of the largest transport
providers, we have expertise across many industries. Their services cater from the simplest to
the most complex of needs, with a comprehensive range of solutions able to be customized to
the customers’ requirements.

AIR FREIGHT
DB Schenker is a market-leading air freight provider with an extensive, global network. Their
advanced, integrated shipping solutions ensure your cargo is transported to its destination,
anywhere in the world. The DB Schenker air freight network covers 700 locations in 130
countries. The team has a track-record of more than a million tons of successful air cargo
deliveries every year. They also provide charter services to their customers for faster and safer
delivery.

They provide Worldwide network across major global hubs on all continents and Capacities on
a wide variety of routes including defined scheduling and lead time transparency. Partnership
with first class carriers as well as an own controlled carrier network. Online tracking combined
with visibility solutions, for example with AirTrack.

OCEAN FREIGHT

DB Schenker’s ocean freight ships more than 5,500 containers a day to ports all around the
world. Ocean freight forwarding products facilitate the global relationships of more than
700,000 customers, across 130 countries. Tailor-made solutions are DB Schenker’s specialty,
especially when it comes to ocean freight delivery. DB SCHENKER complete provides fully
integrated transport for your full container loads. DB SCHENKER LCL system combines the
benefits of standardized operations and an integrated hub and gateway structure based on long-
term experience and a robust worldwide network.

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CONTRACT LOGISTICS

DB Schenker has been amongst the leading supply chain service providers offering tailor-made
solutions to our clients. With our core competencies as global 3PL logistics service providers,
we offer end-to- end long-term solutions to manage and control the entire value chain between
suppliers, manufacturers, traders and customers.

CUSTOM CLEARANCE

DB Schenker India offers customs clearance services to customers who sign a special
agreement on customs services and issue a power of attorney, empowering Schenker India to
operate as a customs broker on behave of the customer.

20
STUDY ON FREIGHT FORWADING &

IT’S DOCUMENTATION

21
What is Freight Forwarding?

A freight forwarder is a person or organization that responsible for the transportation of goods
from one destination to another destination. Freight forwarding companies work in arranging
the whole process for their shippers, from the storage to the shipping of their market. They act
as an intermediary between the shipper and transportation services, Communication with
various carriers to negotiate on price and decide on the most cost-effective, well founded and
swift route.

Freight forwarders contract with respective Liners – that is, airlines, shipping lines or haulier
to transport the goods. Usually, a forwarder does not physically move the shipment but acts as
a skilled in the logistics processing. Their services are more specialized. They understand
international business, they know the rules and regulations, and they simplify the act of
shipping on favour of a company shipping its good throughout the world.

The transportation will be done by multiple shipping type of modes, including ships, airplanes,
trucks, and railroads, and often use multiple modes for a single transportation. For example,
the freight forwarder may arrange to transportation of goods from a plant to the seaport by
truck, shipped by ship to the destination city and then moved from the seaport to a client place
by another truck.

Freight forwarders sometimes have own vehicles and warehouses, but the predominant model
is a non-asset-based freight forwarder who’s try to select the best supplier for each step of the
Goods.

International freight forwarders commonly handle international goods and they know-how to
adapting and handle customs documentation and operating activities connected to the
international goods.

Freight forwarders employ agents in command of the laws and regulations, people who know
how to handle the paperwork and the shipping and receiving logistics. In short, they ensure
your goods are properly shipped. They handle commercial invoice, shipper’s export
declaration, insurance, bill of lading and other documents required by the carrier or country of
export, import, transhipment and port and terminal charges.

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Why Freight Forwarding?

Have you ever wondered how companies track their goods and coordinate cargo from one
destination to the next? If you are looking for a productive way to manage goods, then look no
further than freight forwarding solutions for your trade. Below we outline the significance of
freight forwarding and why every trader should utilize this indispensable system for organizing
the transportation of goods.

Hassle-free movement of goods

A Freight Forwarder is well skilled in the logistics requirements of several countries and enjoys
the benefits of established relationships with numerous carriers. They take care of all
documentary requirements for the movement, custom clearance, arranging carriers for your
goods, booking cargo space, negotiating freight charges. Basically, once a Freight Forwarder
is in the track you may sit back and relax while your goods traverse across the globe to several
destinations.

Assurance to best rates

Freight Forwarders are negotiating the rates and expert in the market with established
relationship between carriers, a freight forwarder will always get you the best rates in the
market. A freight forwarder can always leverage high volume of goods to reduce costs of
transportation.

Consolidation

Consolidation of goods is one of the main reasons why the transportation rates are reduced
considerably. Consolidation is simply the act of combining smaller shipments to make one
large shipment. Greater the volume of the goods lesser the amount you pay for transportation.

23
Insurance

Cargo Insurance is an infallible method to secure of your goods. Freight Forwarders provide
insurance to protect your shipment from any physical loss or damage while shipping whether
by land, ocean or air.

Route Optimization

As a part of an extensive international trade network Freight Forwarders are capable of advising
on the optimum route selection for the movement of your shipment thereby reducing the transit
time as well transportation costs. When forwarders book cargo space for customers, they have
the flexibility to choose the best routes and transit schedules depending upon the customer’s
requirements.

Inventory Management

Freight Forwarders can provide handling, storage, packaging and distribution of the goods all
at one go as and when required. Most freight forwarders are well equipped with warehouses
not just for the storage of goods but also for efficient handling of goods, sorting, packaging
facilities such as palletization, strapping, shorten and expand wrapping, labelling as well as
reverse logistics.

Agility

Under accidental situations, a Freight Forwarder is always prepared to handle an emergency.

For instance, a shipment is rerouted to a different port due to some natural calamity or the
shipment faces delay due to offloading by a carrier during its transhipment at a certain port.
Such challenging scenarios can be handled with much ease given the established resources of
a Freight Forwarder.

Advantages of freight forwarding

• Cost effective.

• Specialization.

24
• Customs knowledge.

• Special services.

• Organization.

• Handles any load.

• Handle cost organization.

• Saves time.

• Tracking facilities.

• Secure

Import freight

Imports are goods and services that are buy by residents of a country, but are made outside of
the country. They can be ship, air and rail or even buy back in your baggage from a plane. If
they are produced in an overseas country and sold to local residents, they are imports. The
European Union, United States, China, Japan, and France are five of the biggest importers of
goods.

Export freight

Exports are a function of international market whereby goods produced in one country are
shipped in to another country for future sale or trade. Exports are a key component of a
country’s wealth, as the sale of such goods adds to the producing nation’s gross output. One of
the oldest forms of wealth transfer, exports occur on a large scale between nations that have
fewer restrictions on trade, such as duty or subsidies. Exported goods are considered zero rated
goods.

Modes of Transportation

• Sea

• Air

• Road

25
• Rail

• Multimodal

Multimodal is a combination of different modes of transportation such as sea, air, road and rail
which allows the customer to cost-effectively manage goods from one destination to another
destination, ensuring most advantageous care and efficiency each step of the way.

INCOTERMS

Incoterms are a set of rules which define the responsibilities of sellers and buyers for the
delivery of goods under sales contracts. They are published by the International Chamber of
Commerce (ICC) and are widely used in commercial transactions.

The ICC has launched the Incoterms 2020, which is effective from the 1st of January 2020. The
Incoterms 2020 does not contain major changes, it is providing more clarity on how to use the
Incoterms.

Incoterms are only part of the whole import and export contract. They don’t say anything about
the price to be paid or the method of payment that is used in the transaction. Furthermore,
Incoterms don’t deal with the transfer of ownership of the goods, breach of contract, or product
liability; all of these issues need to be considered in the contract of sale. Also, Incoterms can’t
override any mandatory laws.

Incoterms were first created in 1936 and were designated Incoterms 1936. Since then,
Incoterms have evolved into a codified worldwide contractual standard. They are periodically
updated as events in international trade occur and require attention.

Why Incoterms?

• Incoterms make less Risk.

• Failure to Use Incoterms Leads to difficulty.

• Incoterms Affect Monetary Gain and Competitive Advantage.

• Incoterms Change and Vary in Responsibility

26
Ex Works (EXW) – The seller makes the goods available at its location, so the buyer can take
over all the transportation costs and also bears the risks of bringing the goods to their final
destination.

Free Carrier (FCA) – The seller hands over the goods into the disposal of the first carrier.
After the buyer takes over all the costs, the risk passes when the goods are handed over to the
first carrier.

Free Alongside Ship (FAS) – The seller must place the goods alongside the ship at the named
port, the risk of loss or damage to the goods passes when the goods are alongside the ship, and
the buyer bears all the costs from that moment on

Free on Board (FOB) –The seller must load the goods on board of the ship, nominated by the
buyer. Cost and risk are divided when the goods are actually on board.

Cost and Freight (CFR) –Seller must pay the costs and freight to bring the goods to the port
of destination. Although the risk is transferred to the buyer when the goods are loaded on the
ship.

Cost, Insurance and Freight (CIF) –It’s exactly like CFR except that the seller must in
addition procure and pay for the insurance.

Carriage Paid To (CPT) -The seller delivers the goods to the carrier or another person
nominated by the seller at an agreed place (if any such place is agreed between parties) and that
the seller must contract for and pay the costs of carriage necessary to bring the goods to the
named place of destination.

Carrier and Insurance Paid to (CIP) –The seller pays for the carriage and insurance to the
named destination point, but risk passes when the goods are handed over to the first carrier.

Delivered At Place (DAP) – The seller delivers when the goods are placed at the disposal of
the buyer on the arriving means of transport ready for unloading at the named place of
destination. The seller bears all risks involved in bringing the goods to the named place.

Delivered Duty Paid (DDP) –The seller is responsible for delivering the goods to the named
place in the country of the buyer, and pays all costs in bringing the goods to the destination.

Delivered at Place Unloaded – The meaning of it is that the delivery is completed for the
supplier when the goods are placed at the disposal of the recipient at the indicated place.

27
Supplier must bear all costs for export duties and delivery of goods to the specified destination,
including its unloading.

28
ROAD FREIGHT TRANSPORT

Introduction:

As with most of the decisions that have to be taken in physical distribution, there are a number
of aspects that need to be considered when trying to make the most appropriate choice of
vehicle for a vehicle fleet. Vehicle selection decisions should not be made in isolation. It is
essential that all the various aspects should be considered together before any final conclusions
are drawn. There are three primary areas that need to be carefully assessed – efficiency,
economy and legality. Efficiency, in this context, means the most effective way to do the job,
based on a number of important factors. The truck should be fit for purpose. These factors
might include:

• the nature of the operationi.e.ie annual mileage, the terrain, climate, etc;
• the characteristics of the load, i.e., physical features, weight, etc;
• the specification of the vehicle, i.e., engine, gearbox, axle configuration, body, etc.

The area of economy is concerned with the purchase price and operating costs of different
choices of vehicle. There are a number of points that should be taken into account. These should
be analysed and compared with the costs and performance of the various alternative vehicles.
The main points concerning economy are:

• the fixed cost of a vehicle, i.e., depreciation, licenses, insurance, etc;

• the variable cost of a vehicle, i.e., fuel, tyres, maintenance, etc;
• the residual value of a vehicle (some types of uncommon vehicle do not have good
resale values);
• the whole life costs of the vehicle, i.e., a calculation of the above cost over a given life
of the vehicle.
• utilization factors, i.e., fuel efficiency, other costs per mile / kilometre, etc;
• vehicle acquisition, i.e., outright purchase, contract hire, lease etc.

29
The third and final area for consideration in vehicle selection is that of legality. This
emphasizes the need to ensure that vehicles are selected and operated within the existing
transport legislation. Transport law is complicated and ever – changing, so constant
awareness is imperative.

The major factors concern:

• operator’s licenses;
• construction and use regulations;
• weights and dimensions of vehicles;
• health and safety features, i.e., seatbelts, handrails, walkways etc;
• mandatory environmental features, i.e., airbrake silencers emission controls, etc.

Documents to be carried by a transporter while transporting Goods

• Invoices
• E-WAY BILL
• LR copy
• Packing List

E-WAY BILL
E-way bill or Electronic-way bill is a document that needs to be generated before transporting
or shipping goods worth more than ₹ 50,000 within state or inter-state. E-way bill consists of
two parts viz. Part A and Part B.
Part A of E-way bill: The information regarding the supply of taxable goods is to be mentioned
in this Part A.
It is to be generated by the supplier of the goods. The information like GSTIN of the supplier,
place of dispatch, GSTIN of the customer, place of delivery, supply type, document type, tax
invoice number, invoice date, value of goods, HSN, description of goods, quantity, taxable
value, tax and total invoice value, PIN from, PIN to etc. This information is to be copied from
tax invoice. The form has to be filled online in the website www.ewaybill.nic.in.

30
Part B of E-way bill: Part B consist of transport details like vehicle number, lorry receipt
number, LR date, distance, vehicle type, transporter name. If these details are not available at
the time of generating E-way bill then e-way bill can be generated by mentioned transporter
ID. On mentioning transport ID, the transporter will receive the information in his login in
eway bill portal and then he can update Part-B. Once, Part B is updated the validity of e-way
bill starts.

TYPES OF COMMERCIAL VEHICLES

The 12 most common container types

Standard Container – most common type of container in the market (standard size 20 and 40-
feet)

High cube container – similar in structure to standard containers but taller in height

Reefer container – container-sized refrigerators to move goods that need to be maintained at

a certain temperature

Double door container – Double Door Containers are built to have double doors that swing
open outside on both ends

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Open top container – The roof of the container is covered with tarpaulin sheets instead of a
solid roof

Pallet wide – The pallet wide containers keep the cargo tight, so there is almost no chance of
cargo slipping.

Flat rack – Flat rack containers are used for heavy loads and cargo that need loading from
the top or sides such as pipes, machinery, or busses. The containers only have sides on the
short end of the container

Side door container – have doors on the long side of the container

Hard top container – The roof of the container is covered with a detachable steel roof

Tank container – For carrying liquid materials (cylindrical shape)

One-trip container – A one trip shipping container is essentially a new shipping container

Insulated container – keep the same temperature inside the container, regardless of the
temperatures outside its four walls

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Land Transport Process

33
34
35
 Indent – Contains invoice, packing list & all the details about the shipment
By referring the indent, we will get to know about the

• Dimensions

• Weight

• Stackable / non-stackable

• Pickup location

• Drop-off location

• No of packages

• User details

• Consignee details etc.

 Vehicle Selection – Based on size, weight, stackable/non-stackable etc.

 Assigning vendor – based on commercial factors & availability.

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Ocean Freight Transport

Introduction:

Ninety per cent of the world’s international trade is transported by sea. The customs and
practice associated with this form of transport have been refined over centuries of worldwide
trade. Sending cargo by sea is ideal for high – volume cargoes that are not necessarily time
sensitive or have long lead times for delivery. However, this mode of transport is slow and
fraught with possibilities for delay. As globalization has increased and sources of
manufacturing moved eastwards to India and China more companies have outsourced their
manufacturing to this part of the globe. As a consequence, due to the elongated supply lines
and slowness of this form of transport, higher levels of in – transit inventory need to be
accounted for. The use of shipping containers has revolutionized the way that cargo is handled
and transported.

• TANGO –DB Schenker Ocean freight Software

[Transport Application for Air and Ocean Network & Global Operation]

• Types of shipment
1. Direct - Original carrier
2. B2B - 1 Master B/L ,1 House B/L
3. Console House - 1 Master B/L, many House B/L

• Top Carriers
1. MSC
2. ONE
3. CMA
4. COSCO
5. HMM

37
 MAJOR PORTS IN INDIA

o Kolkata Port - West Bengal

o Paradip Port - Odisha
o New Mangalore Port - Karnataka
o Vishakhapatnam port - Andhra Pradesh
o Jawaharlal Nehru Port - Maharashtra
o Mumbai Port - Maharashtra
o Kandla Port - Gujarat
o Cochin Port - Kerala
o Chennai - Tamil Nadu
o Tuticorin Port - Tamil Nadu
o Ennore port - Tamil Nadu
o Port Blair Port - Andaman &Nicobar Island
o Mormugao Port - Goa

Shipping documents

 Commercial Invoice
 Packing List
 Shipping Bill - clearance and bill (given by customs department)
 HBL- House bill of lading(Bill Of Lading )
 MBL- Master bill of lading
 Letter of credit
 Certificate of origin
 Arrival Notice- (To notify the arrival of shipment)
 CRO Copy - Container Release order (To Pick Ship from yard)
 DO - Delivery order (Destination Release Order)

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Commercial Invoice
A commercial invoice is the seller’s bill for merchandise or goods sold by him. Invoice contains all
the particulars and details in respect of name and address of seller (exporter), name and address of
buyer (importer), date, exporter’s reference number, importer’s reference number, description of
goods, price per unit at particular location, quantity, total value, packing specifications, terms of sale
(FOB, CIF etc.), identification marks of the package, total number of packages, name and number
of the vessel or flight, bill of lading number, place and country of destination, country of origin of
goods, reference to letter of credit, if opened, terms of payment, and finally signature of the exporter
etc.
From the details, it is clear that invoice is an important and basic export document. It is also known
as ‘Document of Contents’ as it contains all the important information necessary for the preparation
of other export documents.
For many countries, there are no prescribed special invoice forms. Exporters can use their normal
invoices used for indigenous trade for exports made outside the country too and show the particulars
required by the importer in terms of the contract. However, there are special invoicing procedures
in respect of exports to certain countries like Canada, U.S.A. and Australia. Some countries like
Uganda, Mexico, Sudan and Tanzania require special customs invoices.
Information about the special invoice forms required can be gathered from the respective Export
Promotion Councils apart from the procedures of trade to be followed in respect of the importer’s
country. Any recognized Chamber of Commerce too can provide the information in this respect.

Significance of Commercial Invoice

(A) It is prima facie evidence of the contract of sale and purchase of goods. On the basis of the
invoice, all the other documents, in the context of export, are prepared as it is the basic document.
(B) Invoice constitutes the main document for various export formalities such as pre shipment
inspection, quality, excise and customs procedures.
(C) It is useful for accounting purposes, both by the exporter and importer.
(D) This document is required in collection/negotiation of documents through the bank.
(E) For claiming incentives, this document is essential.

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Packing Note and Packing List
There is a difference between packing note and packing list. Packing note refers to the particulars
of contents of an individual pack while packing list is a consolidated statement of the contents of the
total number of cases or packs.
A packing note contains the following details:
(a) Date of packing,
(b) Number of packing note,
(c) Number of case to which it relates to,
(d) Contents of case in terms of quantity and weight,
(e) Marking numbers,
(f) Name of exporter,
(g) Name of importer,
(h) Importer’s order number,
(i) Number and date of bill of lading and
(j) Name of vessel/flight.
Packing note is kept in each concerned case/pack. Packing note and packing list are sent to the
importer along with other documents. If any case contains any shortfall, importer can communicate
to the exporter in which case there is shortage of goods for making good.
No particular form has been prescribed for both packing note/list. Normally, ten copies are prepared.
Two copies are sent, in advance, to the buyer, one copy along with the documents, one to the
shipping agent and the remaining are retained by the exporter.
Precaution is to be exercised that the details of the quantity in the packing note/list should conform
to the quantity as stated in the Invoice and Bill of Lading/Airway Bill.

Shipping Bill
The shipping bill is the main document on the basis of which the customs permission is given. Under
manual processing of export documents, the exporter is required to file the appropriate type of
shipping bill to seek the order for customs clearance of the export shipment. Under computerized
processing, the exporter does not prepare the shipping bill; instead it is computer generated. After
the shipping bill is stamped by the customs, then only the goods are allowed to be carted to the
docks.
The shipping bill contains the following particulars:
(A) Nature of goods exported,
(B) Name of vessel, master or agents,

40
(C) Flag,
(D) Country of destination, the port at which the goods are to be discharged,
(E) Exporter’s address,
(F) Importer’s address,
(G) Details of the packages, such as numbers and marks,
(H) Quantity details of each case, total number of cases and aggregate weight,
(I) F.O.B. prices and real value as defined in the Sea Customs Act and
(J) Whether the merchandise is Indian or foreign origin which is re-exported.
The shipping bill is prepared in five copies:
1. Customs copy
2. Drawback copy
3. Export Promotion copy
4. Port Trust copy and
5. Exporters copy

Importance of Shipping Bill

(A) It is an important document required by the customs authorities for clearance of goods. The
customs authorities endorses the duplicate copy of the shipping bill with “Let Export Order” and
“Let Ship Order”.
(B) After the clearance of customs, exporter can load the goods on ship.
(C) Shipping bill endorsed by the customs authorities facilitates the exporter to claim incentives
such as excise duty refund and duty drawback.

Types of Shipping Bills

(1) Free Shipping Bill: It is used in case of goods which neither attract any export duty nor entitled
for duty drawback. It is printed on simple white paper.
(2) Dutiable Shipping Bill: It is used in case of goods, which attract export duty. It may or may not
be entitled to duty drawback. It is printed on yellow paper.
(3) Drawback Shipping Bill: It is used in case when refund of duties is allowed on the goods
exported. Generally, it is printed on green paper, but when the drawback claim is paid to a bank,
then it is printed on yellow paper.
(4) Shipping bill for Shipment Ex-Bond: It is used in case of imported goods for re-export and
which are kept in bond. It is printed on yellow paper.

41
(5) Coastal Shipping Bill: It is used in case of shipment that is moved from one port to another
port, by sea, within India. It is not an export document.
When goods are sent by sea, it is called Shipping Bill and it is Airway bill when goods are sent by
Air.

HBL (house bill of lading)

HBL means house bill of lading issued by a freight forwarder on receipt of goods from shipper
agreeing to deliver goods at destination.

House bill of lading include :

1. The name and address of the supplier (exporter/shipper)

2. The name and address of the receiver (importer/consignee)

3. Information about the items shipped (weight, type of container etc..)

4. Mode of transportation

5. Terms of shipment

MBL (master bill of lading)

MBL is Master of bill of lading issued by main carrier of goods on receipt of goods from a freight
forwarder to deliver at destination as per agreed terms. Once the carrier has confirmed that it has
received the goods, it will issue the MBL to the party that booked the freight, usually the freight
forwarder or the shipper.

Certificate of Origin
As the very name indicates, certificate of origin is a certificate that specifies the name of the country
where goods are produced. This is absolutely necessary where the importing country has banned the
entry of goods of certain countries to ensure that the goods from those countries are not allowed to
enter in. At the time of arrival of the goods in the importer’s country, this certificate is necessary for
the customs to permit preferential tariff. Certain countries offer preferential tariff to goods produced
and imported from India. In such a case, this is a must to the importer to claim preferential tariff and

42
importer insists on this document from the exporter. This enables the importer’s country to regulate
the concessional tariff only to select countries and deny to the rest of the countries.
A certificate of origin can be obtained from Chamber of Commerce, Export Promotion Council and
various trade associations which have been authorized by Government of India to issue. The agency
from which certificate of origin is obtained should conform to the terms of letter of credit.

Significance of Certificate of Origin

(A) Certificate of origin is required for availing concession under Commonwealth Preferences
(CWP) as well as Generalized System of Preferences (GSP).
(B) It facilitates the importer to adhere to the rules and regulations of his country.
(C) Customs in the importer’s country allow the concessional tariff only on production of this
certificate.
(D) When goods from some countries are banned, importing country requires this certificate to
ensure that goods from banned countries are not entering into the country.
(E) Exporting country may insist on this certificate to ensure that the goods imported are not
reshipped again.

Letter of credit

It is a guarantee issued by a bank for payment to the buyer while ensuring that the goods are
shipped in good order. A letter of credit is a banking instrument that guarantees payment from the
buyer to the seller.

Shipping Instruction

It is a document, provided by the exporter to the carrier, containing details of the cargo to be
shipped, the parties involved and the requirements for its transportation. The shipping instruction
are used by the carrier to create the bill of lading

Form 13

It contains details like vehicle No., vessel name, container name, shipping line, etc. The customs
gate officer posted at port gates are also having access of the E-form – 13 details in the port system
provided by the port terminal

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AMS FILE

• AMS filing - Advance Manifest System

• Document submitted to the customs & border protection describing all the goods bound for the
country

• Document must be filed 48 hours prior to the departure of the ship from the port of loading.

• It was adopted by the US in 2002 to ensure security and safety.

ACI FILING

• ACI -- Advance Cargo Information

• It is a Canada Border Services Agency (CBSA) initiatives to increase cross border trade
efficiencies and to improve the protection of Canadian citizens through advanced cargo
clearance and risk assessment screening

Ocean Freight Process

Ocean Export Process

1. Receive Export Order: The freight forwarder receives the customer's export order.

2. Book Transportation: The freight forwarder books the necessary transportation depending on
customer's requirements, such as air freight, ocean freight or surface freight.

3. Select Carrier: For ocean freight, the forwarder selects a carrier and an appropriate vessel based
on customer's requirements.

4. Prepare Documentation: The forwarder prepares the required shipping, customs and other
necessary documents to clear the cargo through customs.

5. Empty Container Survey: Freight Forwarding Company arranges for survey and certification
on empty containers prior to stuffing/loading.

6. Containerization and Packing: The forwarder arranges for packing the cargo into a container,
if necessary, and arranges for the safe transport of the containers to the port of loading.

7. Seal and Exit: Freight Forwarding Company arranges seals/locks on each container.

44
8. Pickup and Delivery to Port: The forwarder arranges for the pickup of the containers from the
shipper and delivers it to the port of loading.

9. Submit Shipping Instructions: The forwarder prepares and submits shipping instructions to
the carrier and advises the customer with tracking information.

10. Custom Clearance: The forwarder submits customs declaration and arranges for the necessary
document processing for customs clearance.

11. Container Survey: The forwarder arranges for a survey of the containers to ensure that the
proper packing and safe loading have been done.

12. Container Loading and Transportation: The forwarder arranges for the proper loading of
containers onto the vessel and the safe transportation of the containers to the port of destination.

13. Ship Notice and Bill of Lading: The forwarder issues the ship notice and bill of lading to the
customer.

14. Monitor Voyage: The forwarder monitors the voyage of the vessel till it reaches its ultimate
destination port.

15. Payment & Settlement: The freight forwarder will collect payment from the customer, settle
outstanding payments with carriers, and provide necessary reports to the customer.

16. Conduct post shipment analysis for future reference.

OCEAN EXPORT
FCL

ORDER RECEIVING

CLARIFY WITH CONSIGNEE THROUGH OVERSEAS

BOOK CARGO SPACE WITH CARRIER

BOOKING CONFIRMATION

EMPTY CONTAINER PICK UP

CFS/FACTORY ( STUFFING +CUSTOM CLEARANCE)

LET EXPORT ORDER
SI
SHIPPER HBL/MBL OVERSEAS ARRIVAL NOTICE TO CONSIGNEE

FORM 13 PORT LOAD TO VESSEL

45
 OCEAN EXPORT
LCL

ORDER RECEIVING (COMMERCIAL INVOICE ,PACKING LIST)

CLARIFY WITH CONSIGNEE THROUGH OVERSEAS

SHIPPER SEND INVOICE AND PACKING LIST TO CHA

CHA PROVIDE CHECKLIST TO SHIPPER

CHECKLIST (VEHICLE DETAILS ,LR COPY AND DETAILS ABOUT CFS)

LOAD THE GOODS

SHIPPING BILL NO.( CHECKLIST ) TO OFFLOAD CARGO , ON CARTING ORDER –CFS DESTINATION WILL BE THERE

CARGO CLEARANCE

LET’S EXPORT ORDER (CUSTOMS OFFICER )

HANDOVER TO CO-LOADER (SCHEDULING VESSEL )

STUFFING STUFFING-REPORT CARGO LOADED

46
Basic Import Procedures

Following are the various steps involved in the process of import.

1. Trade Enquiry

It is a written request by the importer to the exporter for supply of relevant information regarding
the price, quality, quantity, terms and conditions of export etc. Then the exporter prepares the
quotation and sends to the importer. This quotation is known as proforma invoice.

2. Obtaining Import license

In India it is compulsory to every importer to get registered with Director General of Foreign
Trade or Regional Import Export Licensing authority and obtain an Import Export Code Number
(IEC).

3. Obtaining Foreign Exchange

As foreign exchange transactions are controlled by RBI, the importer has to submit an application
along with necessary documents to the RBI to issue foreign exchange.

4. Placing Order or Indent

After obtaining the import license, the importer places an import order or indent with the exporter
for supply of specified products. It contains information regarding the price, quantity, quality of
goods ordered, port of shipment, destination etc.

5. Obtaining letter of credit

The importer must obtain letter of credit and send it to the exporter.

6. Arranging for financing

The importer should make arrangements in advance to pay to the exporter on arrival of goods at
the port. Advance planning for financing is necessary so as to avoid penalties on the imported
goods lying unclear at the port for want of payments.

7. Receipt of Shipment Advice

After loading the goods on the ship, the exporter dispatches the shipment advice to the importer. It
contains information about the shipment of goods.

47
8. Retirement of Import Documents

After shipping the goods, the exporter prepares necessary documents and hands over to his banker
for their onward transmission to the importer when he accepts the bill of exchange. The set of
documents normally contains bill of exchange, commercial invoice, packing list, certificate of
origin, marine insurance policy etc. A bill of exchange accompanying the above documents is
known as Documentary Bill of Exchange. Documentary Bill of Exchange can be of two types:
documents against payment (Sight draft) and documents against acceptance (Usance draft).

In case of sight draft, the exporter (Drawer) instructs the bank to hand over the relevant documents
to the importer only against payment. In case of Usance draft, the drawer instructs the bank to
hand over relevant documents to the importer against the acceptance of the bill of exchange. The
acceptance of bill of exchange for the purpose of getting delivery of the documents is known as
Retirement of Import Documents.

9. Arrival of Goods

When the goods arrive in the importer’s country, the person in charge of the ship informs the
officer in charge of the dock about it. He provides a document called Import General Manifest for
unloading cargo. Import General Manifest: It is a document that contains the details of the
imported goods. It is a document on the basis of which unloading of cargo takes place.

10. Customs Clearance and Release of goods

The importer fills a form called Bill of Entry for assessment of customs duty. After payment of
customs duty, bill of entry has to be presented to the dock superintendent. After his examination, it
is handed over to port authority. After receiving necessary charges, the port authority issues the
release order.

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PROCEDURE FOR CUSTOMS CLEARANCE
Introduction:

Customs clearance involves the preparation and submission of documentation that is required
to export or import your goods into or out of a country. Customs clearance is a crucial part of
cargo shipping from Point A to Point B seamlessly across the world.

Customs clearance is the act of taking goods through the customs authority to facilitate the
movement of cargo in to a country (import) and outside the country (export).

Also, the customs clearance means a document issued by the customs authority to shipper
indicating that all duties have been paid and the shipper’s goods is cleared for export.

 Import procedures

1. Arrival of Goods and Import General Manifest

As per Section 30 of the Customs Act, 1962, the person in charge of the conveyance (ship, aircraft
etc.) carrying imported goods is required to deliver a document known as “Import General Manifest”
to the proper officer of Customs. This is to be submitted within 24 hours of its arrival at the point of
entry, in the prescribed format. The Import General Manifest is a list of items that the carrier is
carrying for the purpose of unloading at the port of arrival. In the case of a vessel, the IGM is
normally submitted before the arrival of the vessel. If the IGM is not submitted within 24 hours of its
arrival, reasons for delay are to be explained. The proper officer accepts even after 24 hours provided
the delay is due to genuine grounds. The imported cargo is transferred to the customs bonded
warehouse, attached to port of discharge. Thereafter, the shipping line / airline send Cargo Arrival
Notice to the consignee with details of import consignment.

2. Preparing Bill of Entry

The basic document used for obtaining customs clearance is known as “Bill of Entry”. Bill of Entry
may be filed 30 days, in advance, of the expected arrival of concerned cargo to expedite processing of
Bill of Entry. The main contents are the following:
(i) Details of importer’s name and address, IEC number, Port of Shipment, particulars of origin of
goods, and vessel’s name;
(ii) Particulars of goods imported with regard to the number, quantity, packages etc.;
(iii) Description, classification and value of goods;

49
(iv) Rate and amount of import duty payable;
(v) Currency, weight, freight, insurance etc.;
(vi) Details of exporter;
(vii) Import license number of importer and
(viii) Declaration as to correctness of the information recorded.
For the purpose of giving information in Bill of Entry form, based on goods, Bill of Entry are divided
into three categories:
(i) Bill of Entry for Home Consumption (White coloured): This is used when imported goods are
cleared for home consumption, on payment of duty.
(ii) Bill of Entry on Bonded Goods (Yellow coloured): This is used when goods are transferred to
recognize bonded warehouse of customs as no duty is paid on imported goods.
(iii) Bill of Entry for Ex-Bond Clearance for Home Consumption: This is used when the importer
intends to clear imported goods, fully or partly, for home consumption from bonded warehouse,
paying applicable import duty.

3. Services of Customs House Agent

The entire process of customs clearance is complex, so it is desirable to engage services of an
accredited clearing agent for securing customs clearance. The clearing agent prepares the applicable
Bill of Entry containing details of goods to be cleared from the customs and submits the same to the
customs. The date of presentation of Bill of Entry is important. Amount of import duty depends on
the applicable rate, in force, on the date of presentation of Bill of Entry.

4. Presentation of Bill of Entry for Noting

The Bill of Entry, complete in all respects, with proper declarations signed by the importer and his
clearing agent, if any, is presented to the Import Noting Department for noting, on receipt of
information regarding arrival of goods. The Bill of Entry is checked with the IGM, submitted by
carrier by the concerned official. The date of presentation of Bill of Entry is important.

5. Presentation of Bill of Entry for Appraisal

After the Bill of Entry is noted in the Import Department, it is presented to Appraising counters along
with the following documents:
(i) Bank attested Commercial invoice

50
(ii) Copy of Letter of Credit
(iii) Import license, if required
(iv) Bill of Lading/Airway Bill (original and non-negotiable) along with delivery order from the
carrier
(v) Packing List (2 copies)
(vi) Insurance policy / certificate
(vii) Certificate of Origin
(viii) Freight and insurance certificate, if import is on FOB terms
(ix) Manufacturer’s test certificate
(x) Importer- Exporter Code number
(xi) Weight specifications
(xii) A declaration from the importer that he has not paid any commission to agents in India
(xiii) Catalogue/drawings for machinery imported
(xiv) Customs declaration
(xv) GATT declaration form, duly filled in
(xvi) If second hand machinery is imported, a declaration as per the export-import Policy
(xvii) Any other relevant documents
While filing bill of entry and giving various particulars as prescribed therein, the correctness of
information given has also to be certified by the importer in the form a declaration at the foot of bill
of entry. Any wrong declaration/incorrect declaration has legal consequences and due precautions
should be taken by importer, while signing these declarations. The import license must be valid and
cover the goods imported. The appraising officer scrutinizes documents. If documents submitted are
adequate for acceptance to the declared value, the rate of duty is noted on the Bill of Entry. The
Appraising officer gives ‘Examination order’. Once the Appraising office completes the Bill of Entry,
the Assistant Collector of Customs countersigns it.

6. Payment of Duty
The customs assessed Bill of Entry is given to the importer for deposit of import duty. After deposit
of duty, the original copy is detached for record and rest of documents is returned to the importer.

51
7. Physical Examination as per Examination Order
The importer presents the documents to Dock Appraiser for physical examination of goods. If the
goods are in order, the dock appraiser gives “Out of Charge” order. This procedure is known as the
‘Second Check Procedure’, under which 80-90% of consignments are cleared. In this procedure, first
the documents are examined and later goods are checked. When the appraising officer is not able to
identify the goods properly or there is insufficient information about the composition / functions /
classification of goods in question, the appraising officer marks the papers to the Dock Superintendent
for physical examination. After the physical examination, the Bill of Entry is returned to Scrutinizing
Appraiser for completion and license debit. This procedure is known ‘First Check Procedure’.

8. Release Order
The clearing agent presents the documents to the Port Manager who ensures payment of any charges
including demurrage. After the importer deposits the same, the port manager issues the release order.
On the basis of release order, the goods are taken out of customs area.

9. Confiscation of Goods
If customs authorities find that the intended goods of import are prohibited or import is in
contravention of the provisions of any Act, import goods can be confiscated. The authority lies with
the Adjudicating authority to release goods on payment of fine or confiscate them.

 Export procedures

For clearance of export goods, the export or his agents have to undertake the following
formalities:

Registration

The exporters have to obtain PAN based Business Identification Number (BIN) from the

Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export
goods. Under the EDI System, PAN based BIN is received by the Customs System from the
DGFT online. The exporters are also required to register authorised foreign exchange dealer
code (through which export proceeds are expected to be realised) and open a current account
in the designated bank for credit of any drawback incentive.

52
Whenever a new Airline, Shipping Line, Steamer Agent, port or airport comes into operation,
they are required to be registered into the Customs System. Whenever, electronic processing
of shipping bill etc. is held up on account of non-registration of these entities, the same is to
be brought to the notice of Assistant/Deputy Commissioner in-charge of EDI System for
registering the new entity in the system.

Registration in the case of export under export promotion schemes:

All the exporters intending to export under the export promotion scheme need to get their
licences/DEEC book etc. registered at the Customs Station. For such registration, original
documents are required.

Processing of Shipping Bill – Non-EDI:

Under manual system, shipping bills or, as the case may be, bills of export are required to be
filed in format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991.
The bills of export are being used if clearance of export goods is taken at the Land Customs
Stations. Different forms of shipping bill/bill of export have been prescribed for export of
duty free goods, export of dutiable goods and export under drawback etc.

Shipping Bills are required to be filed along with all original documents such as invoice,
AR4, packing list etc. The assessing officer in the Export Department checks the value of the
goods, classification under Drawback schedule in case of Drawback Shipping Bills, rate of
duty/cess where applicable, exportability of goods under EXIM policy and other laws in
force. The DEEC/DEPB Shipping bills are processed in the DEEC group. In case of DEEC
Shipping bills, the assessing officer verifies that the description of the goods declared in the
shipping bill and invoice match with the description of the resultant product as given in the
DEEC book. If the assessing officer has any doubts regarding value, description of goods, he
may call for samples of the goods from the docks. He may also call for any other information
required by him for processing of shipping bill. He may assess the shipping bill after visual
inspection of the sample or may send it for test and pass the shipping bill provisionally.

Once, the shipping bill is passed by the Export Department, the exporter or his agent present
the goods to the shed appraiser (export) in docks for examination. The shed appraiser may

53
mark the document to a Custom officer (usually an examiner) for examining the goods. The
examination is carried out under the supervision of the shed appraiser (export). If the
description and other particulars of the goods are found to be as declared, the shed appraiser
gives a ‘let export’ order, after which the exporter may contact the preventive superintendent
for supervising the loading of goods on to the vessel.

In case the examining staff in the docks finds some discrepancy in the goods, they may mark
the shipping bill back to export department/DEEC group with their observations as well as
sample of goods, if needed. The export department re-considers the case and decide whether
export can be allowed, or amendment in description, value etc. is required before export and
whether any other action is required to be taken under the Customs Act, 1962 for
misdeclaration of description of value etc.

Processing of Shipping Bill – EDI:

Under EDI System, declarations in prescribed format are to be filed through the Service

Centers of Customs. A checklist is generated for verification of data by the exporter/CHA.

After verification, the data is submitted to the System by the Service Center operator and the
System generates a Shipping Bill Number, which is endorsed on the printed checklist and
returned to the exporter/CHA. For export items which are subject to export cess, the TR-6
challans for cess is printed and given by the Service Center to the exporter/CHA immediately
after submission of shipping bill. The cess can be paid on the strength of the challan at the
designated bank. No copy of shipping bill is made available to exporter/CHA at this stage.

Octroi procedure, Quota Allocation and Other certification for Export Goods:

The quota allocation label is required to be pasted on the export invoice. The allocation
number of AEPC is to be entered in the system at the time of shipping bill entry. The quota
certification of export invoice needs to be submitted to Customs along-with other original
documents at the time of examination of the export cargo. For determining the validity date
of the quota, the relevant date needs to be the date on which the full consignment is presented
to the Customs for examination and duly recorded in the Computer System. In EDI System at

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Delhi Air cargo, the quota information is automatically verified from the
AEPC/TEXPROCIL system.

Since the shipping bill is generated only after the ‘let export order’ is given by Customs, the
exporter may make use of export invoice or such other document as required by the Octroi
authorities for the purpose of Octroi exemption.

Arrival of Goods at Docks:

The goods brought for the purpose of examination and subsequent ‘let export’ is allowed
entry to the Dock on the strength of the checklist and other declarations filed by the exporter
in the Service Center. The Port authorities have to endorse the quantity of goods actually
received on the reverse of the Check List.

System Appraisal of Shipping Bills:

In many cases the Shipping Bill is processed by the system on the basis of declarations made
by the exporters without any human intervention. In other cases where the Shipping Bill is
processed on screen by the Customs Officer, he may call for the samples, if required for
confirming the declared value or for checking classification under the Drawback Schedule.
He may also give any special instructions for examination of goods, if felt necessary.

Status of Shipping Bill:

The exporter/CHA can check up with the query counter at the Service Center whether the
Shipping Bill submitted by them in the system has been cleared or not, before the goods are
brought into the Docks for examination and export. In case any query is raised, the same is
required to be replied through the service center or in case of CHAs having EDI connectivity
through their respective terminals. The Customs officer may pass the Shipping Bill after all
the queries have been satisfactorily replied to.

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Customs Examination of Export Cargo:

After the receipt of the goods in the dock, the exporter/CHA may contact the Customs Officer
designated for the purpose present the check list with the endorsement of Port Authority and
other declarations as aforesaid along with all original documents such as, Invoice and
Packing list, AR-4, etc. Customs Officer may verify the quantity of the goods actually
received and enter into the system and thereafter mark the Electronic Shipping Bill and also
hand over all original documents to the Dock Appraiser of the Dock who many assign a
Customs Officer for the examination and intimate the officers’ name and the packages to be
examined, if any, on the check list and return it to the exporter or his agent.

The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The

Customs Officer enters the examination report in the system. He then marks the Electronic

Bill along with all original documents and check list to the Dock Appraiser. If the Dock
Appraiser is satisfied that the particulars entered in the system conform to the description
given in the original documents and as seen in the physical examination, he may proceed to
allow "let export" for the shipment and inform the exporter or his agent.

Variation Between the Declaration & Physical Examination:

The check list and the declaration along with all original documents is 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). He may
also forward the physical documents to Assistant Commissioner/Deputy Commissioner of
Customs (Exports) 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 principles of
natural justice is required to be followed before finalisation of the issue.

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Stuffing / Loading of Goods in Containers

The exporter or his agent should hand over the exporter copy of the shipping bill duly signed
by the Appraiser permitting “Let Export” to the steamer agent who may then approach the
proper officer (Preventive Officer) for allowing the shipment. In case of container cargo the
stuffing of container at Dock is dome under Preventive Supervision. Loading of both
containerized and bulk cargo is done under Preventive Supervision. The Customs Preventive
Superintendent (Docks) may enter the particulars of packages actually stuffed in to the
container, the bottle seal number particulars of loading of cargo container on board into the
system and endorse these details on the exporter copy of the shipping bill presented to him by
the steamer agent. 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 system and that shipping bill requires amendment or changed quantity.
Such shipping bill also may not be taken up for the purpose of sanction of Drawback/DEEC
logging, till the shipping bill is suitably amended for the changed quantity. The Customs
Preventive Officer supervising the loading of container and general cargo in to the vessel may
give “Shipped on Board” endorsement on the exporters copy of the shipping bill.

Drawal 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/E system. There is no separate
register for recording dates of samples drawn. Three copies of the test memo are prepared by
the Customs Officer and are signed by the Customs Officer and Appraising Officer on behalf
of Customs and the exporter or his agent. The disposal of the three copies of the test memo
are as follows:-

Original – to be sent along with the sample to the test agency.

Duplicate – Customs copy to be retained with the 2nd sample.

Triplicate – Exporter’s copy.

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

Amendments:

Any correction/amendments in the check list generated after filing of declaration can be made
at the service center, provided, the documents have not yet been submitted in the system and
the shipping bill number has not been generated. Where corrections are required to be made
after the generation of the shipping bill No. or after the goods have been brought into the
Export Dock, amendments is carried out in the following manners.

If the goods have not yet been allowed “let export” amendments may be permitted by the
Assistant Commissioner (Exports).

Where the “Let Export” order has already been given, amendments may be permitted only by
the Additional/Joint Commissioner, Custom House, in charge of export section.

In both the cases, after the permission for amendments has been granted, the Assistant
Commissioner/Deputy Commissioner (Export) may approve the amendments on the system
on behalf of the Additional /Joint Commissioner. Where the print out of the 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.

Export of Goods Under Claim for Drawback:

After actual export of the goods, the Drawback claim is processed through EDI system by the
officers of Drawback Branch on first come first served basis. There is no need for filing
separate drawback claims. The status of the shipping bills and sanction of DBK claim can be
ascertained from the query counter set up at the service center. If any query has been raised or
deficiency noticed, the same is shown on the terminal. A print out of the query/deficiency
may be obtained by the authorized person of the exporter from the service center. The
exporters are required to reply to such queries through the service center. The claim will
come in queue of the EDI system only after reply to queries/deficiencies are entered by the
Service Center.

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All the claims sanctioned on a particular day are enumerated in a scroll and transferred to the
Bank through the system. The bank credits the drawback amount in the respective accounts
of the exporters. Bank may send a fortnightly statement to the exporters of such credits made
in their accounts.

The Steamer Agent/Shipping Line may transfer electronically the EGM to the Customs EDI
system so that the physical export of the goods is confirmed, to enable the Customs to
sanction the drawback claims.

Generation of Shipping Bills:

After the “let export” order is given on the system by the Appraiser, the Shipping Bill is
generated by the system in two copies i.e., one Customs copy, one exporter’s copy (E.P. copy
is generated after submission of EGM). After obtaining the print out the appraiser obtains the
signatures of the Customs Officer on the examination report and the representative of the
CHA on both copies of the shipping bill and examination report. The Appraiser thereafter
signs & stamps both the copies of the shipping bill at the specified place.

The Appraiser also signs and stamps the original & duplicate copy of SDF. Customs copy of
shipping bill and original copy of the SDF is retained along with the original declarations by
the Appraiser and forwarded to Export Department of the Custom House. He may return the
exporter copy and the second copy of the SDF to the exporter or his agent.

As regards the AEPC quota and other certifications, these are retained along with the
shipping bill in the dock after the shipping bill is generated by the system. At the time of
examination, apart from checking that the goods are covered by the quota certifications, the
details of the quota entered into the system needs to be checked.

Export General Manifest:

All the shipping lines/agents need to furnish the Export General Manifests, Shipping Bill
wise, to the Customs electronically within 7 days from the date of sailing of the vessel. 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 as per the present practice in the

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export department. The manual EGMs need to be entered in the register at the Export
Department and the Shipping lines may obtain acknowledgements indicating the date and
time at which the EGMs were received by the Export Department. The above is the general
procedure for export under EDI Systems. However special procedures exist for specified
schemes, details of which may be obtained from the Public Notice/Standing Orders issued by
the respective Commissionerate’s.

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SWOT ANALYSIS

Strengths:

1. One of the world's leading transport and logistics companies with a broad range of services.
2. Experienced and qualified staff with a long-term commitment to providing quality services.
3. Strong relationships with customers and suppliers in the region.
4. A comprehensive network of offices, warehouses, and partnerships in the region.
5. A wide range of services that can be tailored to meet the needs of the customer.

Weaknesses:

1. Limited resources
2. Limited Technology
3. Increased competition from local and international companies.
4. Reliance on third party partners for some services.

Opportunities:
1. Growth in the Indian market and potential to expand services.
2. Increased outsourcing of logistics services by local companies.
3. Use of technology to improve operational efficiency.
4. Expansion into new markets.

Threats:

1. Political instability and economic uncertainty.

2. Increasing competition from local and international companies.
3. Increased regulations and compliance requirements.
4. Rising costs of labour and materials

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FINDINGS, SUGGESTIONS, CONCLUSIONS.

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FINDINGS

The HR management system in DB Schenker is similar to THE HARVARD APPROACH.

This approach turn lead to 4 ‘C’; Commitment, Congruence, Competence and Cost
effectiveness. Employees are self-responsible and creative and can be used to achieve
organizational objectives through motivation.

 DB Schenker offers a wide range of ocean freight forwarding services, including full container
load (FCL) and less-than-container load (LCL) services.
 DB Schenker has a global network of offices and agents that allows them to provide
customers with reliable, cost-effective ocean freight forwarding services.
 DB Schenker offers a variety of value-added services to help customers to manage their
ocean freight forwarding needs, such as customs clearance, documentation, and cargo
tracking.
 DB Schenker is committed to provide customers with a high level of customer service
and satisfaction.
 DB Schenker has a strong commitment to safety and security, and is compliance with
all international regulations and standards.
 DB Schenker has a strong track record of successful ocean freight forwarding
operations, with a focus on providing customers with reliable and cost-effective
services.
 There’s a good coordination & work relationship between employees & management
throughout the company.
 The software used in ocean dept. (Tango) are getting too slow.
 Lot of bugs and errors found in the software.
 Experienced and Skilled employees.
 Employees are very friendly.
 Good & clean canteen facility.
 Clean & hygiene restrooms.
 Lot of unnecessary steps in TMS for a small task

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SUGGESTIONS

 DB Schenker should continue to focus on providing customers with the timely and cost-
effective ocean freight forwarding services.

 Can create an integrated software for booking and further process.

 Make TMS more user-friendly

 Software can be updated to a better version.

 Company can improve softwares to faster versions.
 Can use automation
 Can expand more operations to neighbour states & countries

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CONCLUSION

This internship was a great learning experience in the freight forwarding industry. Now I have
a better picture of what is required for freight forwarding documentation & procedures. The
numerous documents, the container requirements, who is involved in the import export process,
what terms are the importers and exporters using for trade, how the import and export is done,
what type of vehicles are used in commercial transportation, etc. - these questions can be
answered better, because I have a good understanding of how the process works at the DB
Schenker. This internship is my first experience in the freight forwarding industry. Working
with DB Schenker helps me to understand the general way of imports and exports are carried
out. This internship experience compliments the certification in Logistics and Supply Chain
Management that I am pursuing this semester. Overall, this internship is going to have a great
impact on my career as DB Schenker India Pvt Ltd is an international company and if I was to
follow my career goals of working internationally, having an internship at DB Schenker is a
great asset.

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BIBLIOGRAPHY

66
 BIBLIOGRAPHY

• DB SCHENKER. Retrieved from https://www.dbschenker.com/global

• DB SCHENKER Standard operating procedure (SOP)
• DB SCHENKER information retrieved from https://www.dbschenker.com/in-en
• Logistics management, book by
Prof. D. ILANGOVAN & Dr. S. SOOSAI JOHN ROSARIO
• Retrieved information from https://en.wikipedia.org/wiki/DB_Schenker

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