CENTRAL ASIAN JOURNAL OF INNOVATIONS ON TOURISM

MANAGEMENT AND FINANCE

Volume: 04 Issue: 10 | 2023 ISSN: 2660-454X

https://cajitmf.centralasianstudies.org

A Study on Export Documentation and Clearance

Process at Logistics Company

Abstract: The term "export" is commonly used to describe the

1
Shaik Maideen M. G process of sending products and services abroad in exchange
2 for foreign currency. Foreign trade is governed by a variety of
P. Sudha
3 rules and regulations that vary from country to country. A
V. Pradeep
business that exports must keep and submit various documents
to satisfy the laws and regulations of each country it ships to.
Received 16th Aug 2023,
The paperwork process differs for each product, manufacturing
Accepted 19th Sep 2023, method, industry, and export destination. Maximizing the
Online 30th Oct 2023 contribution of trade and other economic policies to
1
development requires that these policies be coherent and
Department of Master of Business
consistent with one another. Thus, it is vital to move much
Administration, Dhaanish Ahmed College of
Engineering, Chennai, Tamil Nadu, India beyond the current practise of enunciating a yearly EXIM
2,3 Policy and take an integrated approach to the developmental
Assistant Professor, Department of Master
of Business Administration, Dhaanish Ahmed
needs of India's Foreign trade. Every five years, the Export-
College of Engineering, Chennai, Tamil Nadu, Import Policy is released by the Government of India's Ministry
India of Commerce and Industry. The goals of EXIM policy are to
increase export capacity, boost export performance, promote
international trade, and improve the country's overall balance of
payments. Industrial training introduces students to both the
company and the field in which it operates. The goal of this
work is to learn all there is to know about export paperwork and
clearance. The first part of the essay is an introductory
paragraph. The logistics sector that the company operates in is
introduced here.
Key words: Export Documentation, Clearance Process,
Logistics Company, Commerce and Industry.
Introduction
This is a chance to work on a project for Logistics Private Limited, a logistics firm that facilitates the
transshipment of commodities for foreign companies and domestic producers. Documentation for
projects intended for export is unusual [4-9]. We all know that in today's fast-paced global economy,
exporting is a difficult task since it requires carrying out activities that gauge both current and future
market need. An important part of the export process is becoming familiar with the detailed processes and

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procedures that must be adhered to in an export contract. Therefore, deciding on an export technique and
documentation project is a natural and crucial step [10-16]. Export documentation and processes are the
focus of this work. Initial sections include the company's history, mission, scope, and aims [17-22].
Transport via ship is generally the most affordable option. Seventy percent of the Earth is covered by
water, and shipping accounts for more than 90 percent of international trade. Shipping has many benefits
over other modes of transportation. Since multiple large items can be transported at once, the emissions
per ton-kilometer are lower than those of road transports. Since our customers' unused tonnage capacity
can be used by others to boost capacity and lower transport costs, shipping with us is also budget-friendly
[23-29]. Cargo ships have an advantage because they are often the only means of importing and exporting
for certain regions of the world. If you live in a country surrounded by water, you know how important
water transport is. Ships are a fast and efficient way to transport large quantities of material over
enormous distances [30-35]. It is more cost-effective to transport bulky products like coal, grain, and fuel
oils in large quantities [36-41].
In order to make educated judgments, management must have access to data regarding customers'
preferences. Whether the results of a survey of the market's potential are positive or negative, they are
nonetheless useful to management. The results of this research reveal what consumers anticipate [42-47].
The results of this research provide valuable insight into what keeps customers coming back for more.
Management works hard to meet the needs of existing clients and win over potential new ones by
developing innovative marketing plans [48-52].
Research Methodology
Applying reason to scientific inquiry is the core tenet of research methodology. Its focus is on how
studies are structured to produce results that accurately reflect the scientific understanding of the
processes that produced them. A research technique is a methodical and evidence-based approach to
investigating a question. The researcher is responsible for developing his own approach [53-61].
Research is the systematic and methodical pursuit of new knowledge using analytical and evaluative
techniques. Fred. W. Kerlinger defines research as the "Systematic, controlled, empirical, and critical
exploration of hypothetical hypotheses about the present relationships among natural phenomena [62-
75]."
To "do research" is to actively seek for information. It's also used to describe the methodical investigation
of a topic in order to unearth relevant data. Scientific knowledge is the fine skill of research. Some people
view research as a progression, a journey from the familiar to the unfamiliar [76]. This is an exploratory
trip. The methodology section of a research paper is where the researcher explains the methods by which
they gathered and analysed their data. Descriptive research is an inquiry into observable phenomena that
includes appropriate interpretation. Focusing on subsets of the issue space, it is more narrow in scope
than exploratory research. Its purpose is to collect descriptive data that can then be used to inform the
design of more in-depth research [77-82]. The framework of a study's research design is its conceptual
framework. It serves as the basis for the descriptive research [83-85].
Statistical Tools
To examine the data and develop conclusions, the researcher employed five statistical methods: For this
data analysis, we utilised the following tests and methods. The term "percentage" is shorthand for the
ratio used to compare two or more sets of numbers. Percentage comparisons between multiple datasets
are possible as well. To evaluate the similarity in the item distribution of many data series, percentages
might be utilised [86-91].
The primary application of this methodology is comparative research. Data is typically presented using
percentages, which are a measure of central tendency. To facilitate relative comparison, the data are
transformed into the standard form with a base of 100 [92-101].

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Calculating a percentage involves multiplying the number of responses divided by the total number of
respondents. The chi-square test is a common statistical method for analysing variations across sets of
categories. Several aspects of the social environment (religion, political leanings, etc.) are described using
categorical variables [102-109]. The chi-square test can be used to test hypotheses involving such
variables [110-115].
The chi-square test is used to estimate whether or not two random variables are independent, and it also
serves a second, related purpose of determining how well the observed distribution fits the expected
distribution (the goodness-of-fit test) [116-121].
The chi-square goodness-of-fit test procedure entails the following steps:
 Establish hypotheses.
 Calculate the chi-square statistic.
 We calculate the chi-square statistic as follows:

Determine the level of relevance. Degrees of freedom information is necessary for this. At this point, you
must settle on whether you'll accept or reject the null. Tabulation is used for analysis of the questionnaire
data after it has been gathered. Tabulation is the process of organising data into structured tables [122-
127]. The resulting tables were evaluated using percentages and pie graphs to ensure exact and
straightforward interpretation [128].
The two-way ANOVA allows for the comparison of group means based on two different independent
factors (factors). To determine whether or not there is an interaction between the two independent factors
and the dependent variable is the fundamental goal of a two-way ANOVA. A two-way ANOVA, in
which gender (males/females) and education level (undergraduate/postgraduate) are independent
variables and test anxiety is the dependent variable, could be used to investigate the possible interaction
between these two factors [129-132]. You may also examine the relationship between children's low,
moderate, and high levels of physical activity and their serum cholesterol levels by treating these three
categories as independent variables and using the serum cholesterol level as your dependent variable
[133].
Research Review
To get a feel for how much research has already been done in a given area, one can look at the
researcher's own previous studies. By referencing theories, reports, records, and other information in
related studies, the study problem can be better understood and specified. This will help the researcher
zero in on the core of the issue and determine the best direction for the investigation [134-137].
Many would-be exporters hold back for fear of the hassles that come with export paperwork. Despite the
process's complexity and high learning curve, it is possible to overcome its inherent hurdles with the help
of the correct approach and a variety of available resources. The invoice, packing list, export declaration,
and bill of lading are the most important documents needed for an international trade [138-141].
Documents such as letters of credit, sight draughts, certificates of origin, export and import licences, SGS
inspection certificates, carnets (customs passes), certificates of insurance, and certificates of origin may
also be necessary for import. The exporter must be familiar with the documents' language, quantity of
copies, required signatories, format, notarization, consularization, and shipping instructions [142-145].

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 Verifies that you successfully filed your export papers by providing a confirmation number.
 Errors are fixed instantly, so you can make adjustments whenever necessary.
 No more waiting around while paperwork is reviewed.
 AES maintains compliance with current trade agreements such as NAFTA and GATT, which
facilitates international trade.
Freight forwarders, according to Cui and Hertz [1], serve as a link between the carrier and its clients. R.
& S. [2]: Reuvid and the Sherlocks. Companies like export manufacturers, exporter merchants, and
buying, confirming, and indent houses are all examples of the types of shippers we refer to in this thesis.
Transport options include water, air, road, and train (fig.1).

Figure 1: Freight Forwarder

Freight forwarders might vary widely in terms of the specific services they offer, but they all share the
trait of typically being non-asset based, meaning that they do not own any trucks, warehouses, or
handling equipment. Instead, they put their money into information technologies that help the business
run and help their staff learn new skills [3].
Freight forwarders are useful since they are well-versed in the logistics industry and can offer guidance to
clients in a variety of related fields besides just shipping. The majority of freight forwarders focus on one
or two types of shipping and cargo. They have formal and informal links within these sectors (e.g.,
carriers, warehouses, customs, and authorities) to promptly find answers to their questions and concerns
[2].
For these reasons, hiring a freight forwarder is a practical option for the customer, who can instead focus
on what they do best while the logistics are taken care of. However, some exporters believe that hiring
freight forwarders is a bad idea because they fear losing control of their shipments if they do so. These
companies prefer to handle logistics in-house, including warehousing and transportation. This is an
expensive method of maintaining order, but using a reliable freight forwarder will undoubtedly save
down on logistics expenses [2].
Research Gap
Historically, logistics has been primarily used by the military to move troops and supply them with food,
clothing, supplies, and equipment. In 1991, during the Gulf War, civilians were exposed to the horrors of
war for the first time.
To get ready for the war, we had to move massive amounts of people and supplies over long distances
quickly; in just one month, we airlifted half a million people and more than half a million tonnes of
material and supplies across 12,000 kilometres, and we shipped another 2.3 million tonnes of equipment
by sea.

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Export Documentation
Knowledge of the numerous processes involved in international trade is essential for anyone working in
the field. Exporting is a business that relies largely on paperwork, so it's important to know what you're
doing. Loss of funds is possible if the necessary documentation is not provided.
There are a number of key differences between an export trade transaction and a domestic one. One of the
most noticeable distinctions is the significantly increased amount of paperwork involved in documenting
the process. Below, we'll go over the paperwork that needs to be completed before and after a shipment:
The exporter creates the invoice and sends it to the importer to be accepted. The buyer will ask for an
invoice when he is ready to make a purchase. There are three distinct varieties of invoices:
Invoice for business use: A document issued by a seller to a purchaser that asserts the seller's right to
payment for the products listed therein. Such a document typically includes such details as the goods'
description, quantity, unit price, and total price. In most cases, the invoice is made first, and then further
paperwork is made using data taken directly from the invoice.
An foreign shipment of goods requires a consular invoice, which is certification from a consul or
government authority. It verifies that the exporter has filed the necessary trade documents and that the
transported items do not contravene any regulations.
A customs invoice is an invoice that follows the guidelines established by the authorities of the country
doing the importing.
A packing list specifies what is included in each shipment. Unlike a basic domestic packing list, this one
specifies the contents of each box, crate, drum, or carton as well as their respective weights and
dimensions. Packing lists can be found at freight forwarders and office supply stores.
Proof of Inspection Certificate: - It is proof that the items have been inspected and their condition has
been documented. Some buyers and countries necessitate this to ensure the exported items meet their
requirements. This is typically carried out by an impartial party and received from impartial testing
agencies [146-149].
Clearance to import is denied to importers in the absence of a certificate of origin in a number of nations.
The exporter can show that the goods they are sending overseas were produced in the country named on
the certificate of origin. Instances where an origin certificate is needed include:
The International Chamber of Commerce (Inco) terminology give a standard set of guidelines for
understanding the language of international trade. Differing countries may have different interpretations
of such phrases, but this can be avoided or at least mitigated. Inco terms are applicable only to the
delivery of products and the rights and obligations of the parties to the contract of sale. The number and
nature of the parties' responsibilities, as well as the allocation of risk, are significant issues in inco terms.
Ex-Works: "from" in Latin. The seller's works, often known as a factory, mill, or warehouse. For items
that can only be picked up from the seller's location, EXW is the appropriate term. At the seller's location,
the buyer must load the products onto a truck or container and bear all associated costs and hazards. In
most cases, sellers will load items onto a truck or container at their location without incurring a loading
fee. While EXW is often used between manufacturers and export traders, export traders typically resell to
international purchasers on different trade conditions. Ex-Factory is another word for "Ex Works" that
some manufacturers may use.
The buyer assumes all risks and costs associated with transportation when the terms of sale are "FOB
Origin." When products are sold "FOB Destination," the seller is on the hook for all transportation
expenses and hazards up until the point of delivery to the buyer's facility. This may or may not include

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the import customs clearance and payment of import customs duties and taxes at the buyer's country.
Since they are not recognised by the International Chamber of Commerce (ICC), the shipping words FOB
Origin and FOB Destination should be avoided in international trade (International Commercial Terms)
Cost and Freight means that the seller is responsible for transporting the items to the specified port of
discharge. The buyer is liable for all fees and risks associated with the shipment's cargo. Historically,
C&F was the preferred spelling of CFR. The word "C&F" is still widely used in the international trade
community.
The seller must cover the expense of shipping and insuring the goods until they reach the agreed upon
discharge point. The importer is responsible for all costs and risks incurred during international shipping
and customs clearance.
Terms "E," "F," "C," and "D": Incoterms 2000, like its immediate predecessor, divides the three-letter
abbreviation into four groups, with the initial letter indicating which group the abbreviation belongs to.
The seller only makes the items available to the buyer at the seller's premises under the "E"-TERM
(EXW). It's the only thing of its kind.
The "F"-TERM (FCA, FAS, & FOB) requires the seller to ship the items to the buyer's designated carrier.
The obligations of both the seller and the purchaser are specified. Each party's responsibilities are broken
down into up to ten subheadings that "mirror" their counterparts on the other side. The terms "delivery,"
"transfer of risks," and "cost allocation" are all good examples. The user can easily compare the
obligations of each party under each Incoterms with this format (figures 2 to 4).

Figure 2: Occupation
Inference: 41% of the respondents are self-employed, 36% are full-time, and 23% are part-time.

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Figure 3: Chart Showing Type of The Company

Inference: 22% of the respondents are merchant exporters, 36% of the respondents are manufacturer
exporters, 23% of them are importers, and the rest 19% are other types of companies.

Figure 4: Chart Showing the Company‘s Shipment Per Annum

Inference: 21% of the respondents said their shipment per annum is 20ft, and the rest 79% said it is a
40ft/40‘ high cube.
Statistical Analysis
For all conceivable groupings, the sum of the squared differences between the actual and predicted data
(or the deviation, d) is equal to the chi-square statistic (fig.5).

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Figure 5: Showing the years of Experience in Export

Degree of Freedom= (r-1) *(c-1)= 3*3= 9
CALCULATED VALUE = 378.324 TABULATED VALUE = 21.026
Z = Z cal>Z tab Z= 378.324>21.026
Hence, the Alternate hypothesis [H1] is accepted
Inference
We accept the alternative hypothesis that there is a correlation between Logistics Private Limited's years
of export experience and the frequency of shipments because the calculated value is larger than the
tabulated value.
Findings of the Study
Twenty-one percent are very satisfied, twenty-five percent are satisfied, twenty-eight percent are
indifferent, sixteen percent are somewhat content, and ten percent are not satisfied. A survey found that
10% of participants reported a 2% increase in shipment volumes over the previous year, 15% reported a
5% increase, 28% reported a 10% increase, 37% reported a 20% increase, and the remaining participants
reported a 0% increase. Ten percent of those polled estimated a twenty percent increase in volume.
Fifteen percent of those surveyed cited infrastructure limitations as the primary obstacle to increasing
export volume. For 22% of respondents, it is a lack of plant capacities, for 16% it is a lack of carrier
options, for 15% it is a lack of logistics players, for 15% it is a lack of labour regulations in the country,
for another 15% it is a lack of human resources, and for 16% it is a lack of port capacity. Long distance
travel time to destination was cited by 9% of respondents. Twenty-four percent of respondents spend less
than $50,000, 25% spend between $50,000 and $1,000,000, 29% spend between $1,000,000 and
$5,000,000 on logistics, 16% spend between $5,000,000 and $10,000,000, and 6% spend more than
$10,000,000. Sixteen percent of respondents have been regulars for more than ten years; twenty-five
percent have been customers for seven to ten years; twenty-one percent have been customers for five to
seven years; twenty-one percent have been customers for three to five years; and eighteen percent have
been customers for less than three years. Only 9% of respondents strongly disagreed, while 16% strongly
agreed, and 34% were neutral.

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Conclusion
The goal of logistics is to have items and services available when and where they are wanted. Neither
marketing nor production is simple without logistical backing. Everything from logistics to storage to
packaging is coordinated seamlessly. Logistics' primary function is the cost-effective relocation of
unfinished goods, semi-finished goods, and finished goods to their final destinations. Planning,
implementing, and regulating the efficient, effective flow and storage of goods, services, and related
information from the point of origin to the point of consumption in a manner consistent with client needs;
this is the official definition of the term "logistics." Before settling on a service provider, exporters who
are not currently utilising Logistics Private Limited should assess their expectations and satisfaction with
regards to critical elements such as safety, timely delivery, etc. These days, prompt delivery is crucial in
virtually every market. That efficacy is a hallmark of Logistics Private Limited. Then it's a good idea to
go for the market for perishable items. More business is readily available for Logistics Private Limited to
seize.
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134. A. Akshaya and K. P. Naachimuthu, "Locavorism to Enhance Environmental, Social, & Economic
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135. F. Shifana and K. P. Naachimuthu, "Elements of Holistic Human Development in
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136. G. Nagarajan and K. P. Naachimuthu, "Positive Emotions and Experiences of Trans Men and Trans
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141. D. Madhumitha and K. P. Naachimuthu, "Emotional Regulation among the Members of LGBTQ+
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Bhagavad Gita & Plutchik Wheel of Emotions," Journal of the Asiatic Society of Mumbai, vol.
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144. A. Anil Kumar and K. P. Naachimuthu, "Market Potential for Shawarma Outlet in Coimbatore – An
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145. P. Aswathi, P. Sangavi, K. P. Naachimuthu, and T. Ragull Krishna, "A Systematic Review on Eco-
anxiety," in Proceedings of the ICSSR Sponsored Webinar on Human Behavior and Environmental
Sustainability, pp. 1-12, 2021.
146. N. S. Priyadarshini and K. P. Naachimuthu, "Ancient and Modern Conception to Virtues: Comparing
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Literature, pp. 1-12, 2020.
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