CHAPTER I

INTRODUCTION AND DESIGN

OF THE STUDY

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 CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY
1.1 INTRODUCTION
To move large quantities of goods across the country and around the world, Nations
depend on their freight transportation system—a vast network of roads, bridges, rail tracks,
airports, seaports, navigable waterways, pipelines, and equipment. A freight forwarder is an
individual or company that dispatches shipments via asset based carriers and books or
otherwise arranges space for those shipments. Common carrier types could include waterborne
vessels, airplanes, trucks or railroads.

The movement of international freight among nations relies on a complex array of long
distance transportation services. The process involves many participants, including shippers,
commercial for-hire carriers, third-party logistics providers, and consignees. Moreover, global
trade depends on seaport and airport services to move large volumes of merchandise over long
distances via a variety of transportation modes. The interaction of these services and
participants is vital to successful global trade.

Freight forwarders typically arrange cargo movement to an international destination.

Also referred to as international freight forwarders, they have the expertise that allows them to
prepare and process the documentation and also perform related activities pertaining to
international shipments. Some of the typical information reviewed by a freight forwarder is the
commercial invoice, shipper's export declaration, bill of lading and other documents required
by the carrier or country of export, import, or transhipment.

Much of this information is now processed in a paperless environment. As an analogy,

freight forwarders have been called travel agents for freight. In the U.S., a freight forwarder
involved with international ocean shipping is licensed by the Federal Maritime Commission as
an Ocean Transportation Intermediary

1.2 NEED OF THE STUDY

• To identify various procedures involved in import and export.
• To know more about various dry cargos which import and export from India.
• To know about the restriction goods.
• To know the various documents required for import and export
• To know about the different types of container, size of containers.

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 • To know about customs clearance, packing, storage, insurance.

1.3 SCOPE OF THE STUDY

• To find out the role of freight forwarders
• To find out the various customs procedures
• To find out the clearing & forwarding procedure.
• To find out what are the certificates and documents involved in Imports & Exports.

1.4 LIMITATIONS OF THE STUDY

• The study has done only on freight-on-freight forwarders.
• The study has not considered the financial aspects of freight forwarders.
• The study has done in sitra, Coimbatore

1.5 REVIEW OF RELATED STUDY

Review of literature shows the previous studies carried out by the researcher in this
field in order to gain insight into extent of research. The research problem can be more
understood and made specific referring to theories, reports, records and other information made in
similar studies. This will provide the researcher with the knowledge on what lines the study
should proceed and serves tomorrow the problem
Logistics” was originally use as an military term which defined as “a branch of military
science having to do with producing, maintaining and transporting material, personnel and
facilities.” in Oxford English Dictionary. However, with the times goes by, in the modern days,it
is used in a business term. Department of Trade Industry (DTI) and The Chartered Institute of
Logistics and Transport (CILT) mentioned that the objective task of logistics is to distribute right
products with exact quantity and quality and moving it at the proper time to the right place
with the right balance cost (DTI 1993, CITL 2010)
The US-based Council of Supply Chain Management Professionals gives the definition of
logistics management “Logistics management is part of supply chain management that plans,
implements, and controls the efficient, effective, forward and reverse flow and storage of
goods, services, and related information between the point of origin and the point of
consumption in order to meet customers’ requirements.” Magan also stated ‘8Rs’ of logistics
in his book, namely, the right way, the right product, the right quantity, the right quality, the
right place, the right time, the right customer and the right cost (Magan 2008:9)

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 According to above, it is obviously to understand that the procedure of logistic
management is to make distribution more effectiveness, costs down the expenses in
distribution and stock volumes and decrease damage and waste of goods. Furthermore, with
the perfect application on logistics management, it will be much easier to manage the quality
of products, provide better service to customers and also more flexible to deal with a
contingency or emergency.
As we can learn from above, logistics function includes materials planning, purchasing
goods or supplying raw materials, internal transportation, warehouse (storage) and physical
distribution. Materials requirement planning is also known as MRP, it is viewed as a micro
level of managing of inventory (Weele, 2002). It starts with schedule a sales plan in the sales
department and the plan is an estimation of the quantities that will or can be sold in the
forthcoming periods. MRP in logistics management may help organizations to possess
inventory volume and also can assist the manufacturing planning, purchasing and delivering
in the following steps. Purchasing in today is taken a broader view by many researchers as
“managing the supply” of materials, services, and information (Gundlach et al., 2006). In other
words, purchasing is no longer just blindly purchase but need to manage and consider about
the supply.
Babbar & Prasad’s (1998) work, they also mentioned that the production environment,
costs and international business environment are related to purchasing issue. In transportation part,
transport is a main activity in logistics which concern in time and place utility. In logistics,
warehouse operation is also one of an important section which provides a place for storage
products such as raw materials, components, processing goods and finished goods between
origin and consumption points (Lambert et al, 1998 cited in Stefansson, 2005).
In other words, warehousing includes receive, store, ship, and pick up the goods. In
addition, Stefansson’s mentioned that DC (operation of distribution centres) is another term
which usually used in association with warehousing. The difference between warehousing and
operation of DC is that DC focuses on receiving and shipping as an essential activity. Lambert
et al. (1998, cited in Stefansson, 2005) indicated DCs only carry smaller quantity and fast
moving products; however, warehouses hold large ones.

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CHAPTER SCHEME

CHAPTER I: Introduction and design of the study

Deals with an introduction, need of the study, limitation of the study and scope of the
study, review of the study and chapter scheme(arrangement)
CHAPTER II: Profile of the an overview of logistics industry and company
This chapter deals with an overview of logistics industry and the company
CHAPTER III: Freight Forwarding Industry an overview
This chapter deals with the overview of an Freight Forwarding Industry
CHAPTER IV: Export and Import procedure
This chapter deals with an export and import procedure
CHAPTER V: Findings and conclusion
This chapter deals with findings and conclusion of the study.

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 CHAPTER II
LOGISTICS INDUSTRY –AN
OVERVIEW

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 CHAPTER II

2.1 AN OVERVIEW OF LOGISTICS INDUSTRY

Logistics is the backbone of any economy. The Logistics industry in India is growing
rapidly. Logistics is become important as it may lead to reduced operational costs, improved
delivery performance and increased customer satisfaction levels, thereby making an
organization more competitive in terms of cost, quality, delivery and flexibility. Logistics is
important as it is the management of the flow of products from the place of their origin to the
place of their consumption.

Indian Logistics Industry is expected to grow at a CAGR of 8.6 percent between 2015 and
2020.The Indian logistics industry is complex and under developed. Logistics costs are high
due to poor physical and communication infrastructure; high dwell time at ports; low levels of
containerization; and a multi-layered tax system, interstate tax system contributing to significant
delays at state border crossing points.

Demand for logistics

Traditional growth drivers

1. Export, Import cargo

2. Agriculture
3. Manufacturing (Mainly Textile & Automobile)
New growth drivers
1. Organized retail
2. IT & Telecommunication
3. Healthcare

Challenges of logistics industry in India

• Transport related challenge
• over saturated traffic on railway networks
• High Rail freight tariffs
• Poor terminals
• Uncertainty of time
• Poor road qualities
• disintegrated transport sector
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 • Port Issues
• Regular congestion at ports
• High turnaround time
• Inadequate facilities
• Poor state of ICDs & CFS
• Complex tax regime
• Technology related issues
Way Forward
Despite all the challenges & bottlenecks however the ray of hope is that perceptions seem
to be changing. The reason behind the changing perceptions appears to be mainly that government
seems to very aggressive & wants to revive the industry & economy.

Recent Budget shows some government stances on improving infrastructure

which improve India’s logistics sector.
Some of the key measures are:
• Enhance government spending on infrastructure to stimulate economic growth.

• Focus on building roads, highways and rural infrastructure

• Focus on the maritime sector as an important economical route for bulk transport with
initiatives, such as Sagarmala,

• Focus on the development of inland waterways for passenger and freight transport
to decongest existing road traffic

• Expedite development of existing projects in transport infrastructure especially

highways, railways & other new initiatives
Revive government and private investments, the policy measures announced for developing
the transport infrastructure including initiatives such as Bharatmala, Sagarmala, inland waterway
development, schemes for incentivizing coastal shipping besides other initiative and policy.
Impact of GST
Goods and service tax is a colligation of multiple taxes levied by both Central (i.e,
excise duty, countervailing duty and service tax) and state (Value-added tax, Octroi and entry
tax, luxury tax, etc) governments when an end-user purchases goods or services. It means same
level of taxation would be charged on a specific product or service across the entire country

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irrespective of being manufactured and sold in different states. The planned dual GST model
(central GST and state GST) proposes to replace around 29 state and federal taxes and tariffs
for a single tax at the point of sale.

How GST will impact Indian logistics industry

The following table will explain how GST will reduce about 20% of logistics cost &
will make Indian economy more competitive

Conclusion

The Indian logistics sector continues to evolve, improve with the changing business
environment. It is poor as compare to developed & developing countries. In developed
countries like the US, logistics costs comprising transportation costs account for 7% to 9% of
the cost of the final product, warehousing cost accounts for about 1% to 2% and inventory
holding costs account for about 3% to 5%. In developing countries, logistics costs are estimated
to be higher at around 15% to 25% of the final cost of the product due to lack of adequate
logistics system. In India, logistics cost is around 13%, comparatively higher than the
developed & other developing countries.

To stay competitive we need efforts from all the ends from both government & private
sectors. With spending on infrastructure & implementation on GST Indian logistics industry
will surely transform. Also with the use of technology & so many tech based companies
transport industry is also integrating. Which ultimately benefit our logistics sector &
economy The future is bright for logistics industry in India- the expectationis that a tipping
point for the industry will soon be reached which will propel it to greater heights.

I have tried to summarize it in simple language. Please feel free to share/comment

we can discuss more about this in comment section.

Export
Exports are the goods and services produced in one country and purchased by residents
of another country. If it is produced domestically and sold to someone in a foreign country, it
is an export. Exporters one component of international trade.

Import
Import represents the bringing of foreign goods or services in another country, where
the products will be processed, used, sold or exported.

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Why customs are important

Goods are exported and imported from one country to another in order to maintain a
seamless supply chain.

Transportation and shipping of the products happen through various routes like rail,
road, air and water to reach their destination.

But in order to ensure a complete legal and ethical freight shipment, custom clearance
is indispensable. There are agencies in every country who are responsible for ensuring the fact that
all the consignment coming and going out of the country are under the legal purview andthus
safeguards illegal export/import of goods which is out of the permissible limit of the respective
government. Along with this, custom agencies also take care of the taxes, excise duties and
other charges that are levied at the time of shipment.

Enforcement of rules and directions to individuals and organizations lie in the hands of the
custom agencies. Getting custom clearance is extremely important for the smooth shipment of the
freight. It is thus inevitable to have a whole department in the Logistics for the customer clearance
to get the job done in a rather professional and hassle free manner. These people tryto give all
the requisite information to the party and make sure that the shipment meets all thedesignated
rules for the custom clearance. It is equally important to understand the custom clearance rules
as there are lot of legal formalities involved in it.

Companies who deal with huge bulk of freight many hire custom agents because of the
complications involved. The custom agents inspect the goods and the documents attached and
advice the owner accordingly. This helps in clearance of the product well in advanceand
reduces any chances of getting caught in a custom clearance tangle. A custom clearance agent
typically helps you with the following services.

• Tariff and costing concession

• Valuation issues

• Custom Documentation

• International customs clearance rules and laws

• Taxes and Duties and many more

The custom rules and regulations are constantly reviewed and validated so that the
goods and products reach their destination in optimum time. Logistics who house import

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/export specialist along with custom agent are at a better position to expedite the process of
distribution from start to finish. At the same time custom experts also handle the process of
custom documentation which is generally the most crucial aspect of the whole process. Custom
clearance is thus one of the most important aspect of supply chain. Perhaps, this is
indispensable as it vouches the legality of the freight shipment on the whole.

Cargo handling safety measures

Protection Equipment
Wearing the right kind of personal protective equipment is of paramount importance
while moving cargo from one place to another. Equipment like safety harness, safety helmets,
safety shoes and various others must be used at all times while handling cargo on ships.
Working without such equipment puts your life at grave risk. Also make sureyou know the
proper use of all protection equipment in order to optimize its use. Another aspect that must be
considered is the maintenance of this equipment and checking it for damage prior to use.

Securing the Cargo

It’s of paramount importance that all cargo is secured when it arrives on deck and not
piggybacking cargo. A secure cargo is safe cargo and it needs to be secured as soon as it is
placed in the storage area. Loose items of cargo can prove to be dangerous and you don’t want
a situation from hell on your hands, where an unsecured cargo has gone on to seriously injure
some on-board personnel. Something else that one must remember is that any and every cargo
that is not in a containers should be properly secured at all times.

The Right use of Lifting Equipment

Cargo handling on ships requires the use of lifting equipment like wire ropes, wire rope
slings, hooks, forklifts, cranes etc. As somebody working you need to be able to make sure that the
equipment has been tested and maintained according to the relevant rules and regulations. More
importantly, you must be able to use this equipment the way it is supposed to be used. Incorrect
use of lifting equipment can put the lives of people working in and around this equipment in
jeopardy.

No standing under a hoisted cargo

In an environment where cargo is being handled, there is always a danger of being hit
by a load if you’re standing in its path or under it. There have been some tragic accidents all
because a person was standing under a hoisted load. There are two facets to this particular
safety aspect. Firstly, the crane operator must ensure a safe path for the hoisting of the cargo

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and secondly, the on-deck personnel must make sure they are well aware of the loading path
and stay clear of incoming cargo.

Entering Enclosed Spaces

In many cases, the personnel in charge of handling cargo will need to enter an
unventilated cargo hold.

Not adhering to the proper safety procedures might result in them entering or ones that
are packed with toxic gases. As can be imagined this can lead to some serious problems.
Therefore, such spaces must be checked for their oxygen content and thoroughly ventilated
before entry. The use of special equipment allows one to check for oxygen content in such
places.

Importance of Proper Visibility

Do not handle cargo in poor visibility. If you feel visibility is getting affected due to
certain reasons like a change in weather conditions amongst others, take the necessary steps to
improve the lighting on work places. It’s also important that the lighting does not dazzle the
eyes and allows you to see each area of the workplace clearly. Working in improper lighting
is a recipe for disaster and can lead to some serious accidents.

Bulk Cargo

Close supervision is needed to ensure work safety while handling bulk cargoes. There
are plenty of people involved in such operations who are usually in the hatch and are involved
in the process of getting the cargo in and out of the hatch. Proper supervision ensures not only
is this cargo handled safely, but there is also somebody (ideally stationed on the deck above
the hatch) who is closely watching the people working in the hatch at all times. This is
important because the people themselves cannot take good care of their safety, uring this time.

Contact the Supervisor in case of Problems

If you feel, at any point of time, that the safety of the workplace is compromised in any
way or form, it is important to contact the supervisor. You might find that a hatch cover has come
lose or that the load is not being positioned properly on the lifting equipment or you might find
something else that you believe will impact the safety of the In such cases, it’s important that you
discuss your findings with the concerned person.

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2.1 COMPANY PROFILE

Ocean Freight logistics

REGISTERED ADDRESS

No 18, Airport Road, Coimbatore Aerodrome, coimbatore - 641014 (Near to

Aircargo Complex, Ashok Layout)
www.ofllogistics.com
Open Now: Mon – Sat :- 9:00 am - 7:30 pm, Sun:- Closed - Closed

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 ABOUT
Ocean Freight Logistics in Coimbatore Aerodrome, Coimbatore is known to
satisfactorily cater to the demands of its customer base. The business came into existence in 2010
and has, since then, been a known name in its field. It stands located at Door No 18 Ashok Layout,
Near to Aircargo Complex, Airport Road, Aerodrome-641014. Near to Aircargo Complex is a
prominent landmark in the area and this establishment is in close proximity to the same. It has
earned stamps like Jd Verified, Jd Pay substantiating the credentials of the business.The business
strives to make for a positive experience through its offerings. The accepted modes of payment
such as Cash make every business transaction easy and seamless, contributing to making the
entire process even more effective.
Customer centricity is at the core of Ocean Freight Logistics in Coimbatore Aerodrome,
Coimbatore and it is this belief that has led the business to build long-term relationships. Ensuring
a positive customer experience, making available goods and/or services that are of top-notch
quality is given prime importance.
India’s leading B2B market place, Jd Mart ensures engaging in business activities is a seamless
process for small and medium enterprises as well as large businesses. In a wake to enable these
businesses to reach their audience, this portal lets them showcase their offerings in terms of the
products and/or services through a digital catalogue. This business has a wide range of product
offerings and the product/catalogue list includes Air Cargo Agents, Air Cargo Agents Services,
Air Cargo Management Services, Air Cargo Operations, Air Custom Clearance Services etc.
Kindly scroll up for the address and contact details of Ocean Freight Logistics in Coimbatore

Ocean Freight Logistics established as a Firm in 2010, Objectives of Ocean Freight Logistics. is
to meet its customers needs in the field of logistics, forwarding and customs services in a flexible,
high quality and professional way.Philosophy of our company is to aim fully at meeting the
present and future needs of our customers, to improve quality of work and to enlarge service
portfolio.Definite emphasis is placed on long-term cooperation with customers and solution of
their requirements by individual approach to achieve loyalty of such customers.
Objectives :

Ocean Freight Logistics Ethical principles and observance of all legal rules is a matter of course
and an integral part of all procedures and processes in our company. We always render services
based on perfect knowledge of an individual client´s needs so that we managed to meet them with

14
a maximum efficiency. Teamwork performed by qualified and loyal employees leading to a
satisfied customer is the keystone of our business and success.
Mission :

Mission of Ocean Freight Logistics is to render services at the level offering such serviceability
to the customer that it becomes an integral part of their business.
Vision :

Vision of Ocean Freight Logistics . is to become a choice preferred by the customers and
employees so that in any moment of their cooperation it is rather a partnership than “just” a
business.

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AIR FREIGHT

As The Industry's Emerging Global Air Freight Forwarder With A Global

Network, SEL Offers Indian Businesses A Wide Range Of International Air Cargo
Solutions And Efficient Levels Of Customer Service. We Fulfil Our Responsibility Of
Transporting Your Cargo To The Desired Destinations Safely. Our Superior Transit
Times, Choice Of Flight Routes, Highly Competitive Rates And Speedy Solutions Are
The Keys To Our Success And Our Clients’ Delight. Ranging From Time Critical
Specimens To Heavy Cargo Regardless Of Size And Weight. We Specialize In
Handling Air Freight Forwarding Services In The Most Professed, Dependable And
Prompt Way. This Is The Fastest Method Availab le Compared To The Sea Freight &
Road Transport, If You Want To Reach The Destination Quickly. Like All Our Other
Services, We Assure Full Quality Of Service Here Too.
OCEAN FREIGHT

Send Easy Logistics Offers You Flexible, Reliable And Secure Ocea n Freight
Solutions. This is Our Another Transportation Service Via Ocean Route Freight
Forwarding, A Unique Service Platform That’s Unmatched, Reliable And Cost -
Effective. For Centuries Ocean Freight Is The Most Common Mode Of Transport That
Importers And Exporters Use. In Fact, Around 80% Of Goods Is Shipped By Ocean
Freight Either Through FCL Or LCL. Our Strength And Expertise Is Your Gain. In
Close Partnership With Leading Shipping Companies We Can Offer You A Very Wide
Range Of Services. We Guarantee. The Best Standards In Customer Service With Cost
Effectiveness And Time Bound Deliveries.

ROAD FREIGHT

SENDEASY Specializes In Providing Inland And Local Transportation For

Both Domestic And International Shipments. We Perform Less Than Truck Load
(LTC) / Less Than Container Load (LCL).

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CUSTOMS CLEARANCE

We Understand The Necessity Of Smooth Customs Clearance For You And

Your Business. We Are Well Versed In The Art Of Handling Customs. Our Experienced
Team Keeps Abreast Of Every Legal Development As Well As Changes In
Administrative Regulations. SENDEASY LOGISTICS Handles Customs Regulations
And Schedules Including-Cargo-Handling, Customs Documents Appraisement And
Tackling Regulations Related To Customs Procedures For Inbound And Outbound
Shipments. All Duties And Regular Levies Are Paid And Managed For Your Business
Under Strict Tra de Guidelines. Our Keen Interest on Keeping up with Complex and Ever
Changing Regulations Means You’ll Never Have to Worry about Clearing Your Goods
and Always Have Your Cargo as Planned. Our Customized solutions Help You Take
Informed Decisions, Reduce Le ad Time, Optimize Cash Flow, And Keep Taxes to a
Minimum.

WAREHOUSING

Because Of Our Capability In This Field, We Are Exhibiting Warehouse And

Distribution Services To Our Customers. Offered Services Are Very Much Arranged
And Rendered On Time According To The Necessities By Our Honored Customers.
Not Just This, Our Group Of Skillful Personnel Offers These Services At Budget - Friendly
Rates For Our Customers As Per Their Requirements And Necessities. Our Goal Is To
Upgrade And Streamline Our Clients' Warehousing And Distribution Needs.

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 CHAPTER III
OCEAN FREIGHT LOGISTICS
AN OVERVIEW

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 CHAPTER III
OCEAN FREIGHT LOGISTICS –AN OVERVIEW

3.1 OCEAN FREIGHT LOGISTICS

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT services at OFL LOGISTICS is an effective chain that
interconnects different links or modes of transport -air, sea, and land- into one complete
process that ensures an efficient and cost-effective door-to-door movement of goods under
a single roof.

Our comprehensive and high-capacity network allows us to provide you with a fast and flexible
service.

Our rail, road and sea links allows us to fully serve customers with tailor made solutions to fit
their specific door-to-door transportation needs, whether it is smaller consignments, part-loads or
full-loads. By using rail to cover the longer distances, we can offer transportation solutions.

Our SUPPLY CHAIN MANAGEMENT works as a vital connecting link in our wide arena of
Supply chain Management System. We have a wide array of Trucks, Trailers and other inland
transportation vehicles which carry your Cargo from the Place of Origin till the Port of dispatch
and from the port of landing to the place of Delivery in an economical and Time bound manner.

We work relentlessly to ensure that any problems that may arise are dealt with in a logical manner
and in line with your requirements. We are often seen as a shipping company, but that's just part
of the picture.

The most far reaching impact of containerization on our part is our involvement in multimodal
transport; we have a proven track of carriage of goods by more than one mode of transport under
a single contract. As a multimodal transport operator, we assume responsibility for the execution
of the multimodal transport contract, and of the carriers participating in the multimodal transport
operations.

We have excellent business links with individual transport operators and provide the best of
services. Our Multimodal transport, which is planned and coordinated as a single operation,
minimizes the loss of time and the risk of loss, pilferage and damage to cargo at trans-shipment
points. We maintain excellent communication links and coordinate interchange and onward
carriage smoothly at trans-shipment points.

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Major Benefits :

• Our efficient and well spread network ensures Faster Transit of Cargo
• Our well established information network reduces burden of documentation and other
formalities
• Our Route planning and perfect execution Saves you cost
• Our well organized resourcing establishes a single point of contact
• Our efficient agent network spread across the globe minimizes time loss at Trans-
shipment points

CUSTOMS BROKING
We Offer unparalleled Custom Broking Services. Since our inception, we have been
growing day by day as a trustworthy and popular Custom Broking Agents, offering world
class Custom Clearing Servicesfrom India as well as China.

It is our endeavor to enhance our customer's delight by offering them right solution at right time.

We can gather many types of intelligence not only in India but also among foreign countries. We
provide our clients with fine-tuned service in transportation, warehousing, cargo tracing and etc.
OFL LOGISTICS company is one of the licensed custom clearing agent of Chennai. We place
our experts in trading procedures, international transportation, and custom clearance at company-
owned import-export cargo handling facilities in major ports and airports in India.

Thus, import-export cargo forwarding is carried out utilizing land, sea and air as well as quick
custom clearance work. The distribution related to trading is not only transportation and storage
of commodities, but also various processes such as custom clearance, documentation, authority
procedures and banking.

We possess much knowledge in trading, fostered by many years' experience. We save time and
energy through integrated services that match user needs, and offer optimum distribution to
international businesses.
Our services include :

• » Documentation for custom clearance.

• » Carting / Receiving Goods.
• » Examination of Shipments.
• » Registration of the contract with customs for the project clearance.
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 • » Custom clearance of the import cargo at the port of entry.
• » Port handling.
• » Reconciliation of the contract after completion of import.
• » Port handling and arranging bonded warehouse as and when required by the client.
• » Providing suggestion to the customer on documentation of purchase order, contract,
invoice and packing list to make the document compatible with the Indian customs for
appropriate classification in customs for easy clearance.
• » Suggestion for effective packing for economic handling and safety.
• » Handling of stuffing & de-stuffing at Ports, ICD's and Customers warehouse.

FRIEGHT FORWARDING
Our Air Freight solutions don’t stop at transport but go beyond conventional offerings from
air freight forwarders. Our flexibility and personalized services makes our Air transport
customer friendly.

Thanks to our wide networking, we are able to reach a wide gamut of locations any where across
the globe. Our out-of-box innovative thinking makes us updated enough to air transport your
consignments to any remote location.

Our personalized Air Freight Forwarding services, lets you to have a cost effective solution to
freight forward your goods. We take extra care and meticulousness to transport your goods and
comply with all the aviation and safety regulations, having expert knowledge of customs
regulations, and a maintaining worldwide expertise of import/export restrictions.AS a
international logistics company we provides expedited air freight services arround the world. Our
air freight service handles consignment of any size and shape.

Our network of international air transportation allows as handling with a range of international
logistics issues easily. This ensures that the consignment moves without delay from end to end.
Also the government regulations across which the batch is forwarded is also assiduously complied
with and we take care of the shipping documentation like Commercial Invoices, Certificates of
Origin, Shipper Export Declaration filing etc. We assist our air forwarders in the post shipment
documentation, documents transfer, order follow-up, temporary warehousing, marking,
numbering insurance brokerage etc.
Some of the salient features :

• Worldwide Consolidation Services.

• Cargo pick up from warehouse of the shippers.
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 • Expediting / Vendor Management.
• Export clearance at the country of origin.
• Import clearance of cargo at the port of discharge.
• Export packing in-house.
• Documentation specialists.
• Track and Trace System.
• Safe handling of General cargo / Perishable cargo.
• Door-to-Door Express Products.

FUMIGATION SERVICES
Third party logistics providers typically specialize in integrated operation, warehousing
and transportation services that can be scaled and customized to customer’s needs based
on market conditions and the demands and delivery service requirements for their products
and materials.

We offer complete 3PL (Third-party logistics) services (commonly referred as C&F Agency in
India). Various processes come into play in 3PL Services from Warehousing, Fulfillment,
Transportation Solutions and Logistics Consultancy.

OFL LOGISTICS is able to provide 3PL Services at highly competitive rates on various pricing
models. This enables you to concentrate on your core business, which will surely improve your
business performance, and save costs that might be spent between each process. Enjoy a
customized combination of warehouse management, operations and distribution system that best
suits your needs, a service backed up by advanced technologies but at reasonable charges.

We can provide innovative 3PL services thanks to our advanced information systems and our
efforts on standardizing operations through our information systems and a review of operation
processes. These innovative 3PL services can locate wasteful processes, and find and remove the
cause, which enhances the quality of logistics services.

OFL LOGISTICS being a 4PL provider gives a distinctive business model that extends supply
chain management and logistics outsourcing to new levels. We combine the best capabilities and
technologies from logistics companies and other service organizations to deliver value throughout
the entire supply chain.

OFL LOGISTICS thrives to emerge as a path to achieve more than one-time operating cost
reductions and asset transfers of a traditional outsourcing relationship.

22
Our 4PL services excel at providing intra or inter-company process management, engineering
redesign, and ongoing performance management as well as continuous improvement because we
manage the entire supply chain.

TRANSPORTATION
We provide standardized surface transportation services, with an assurance of safe
handling of the goods. We aim to deliver the goods in flawless condition, thereby providing
absolute satisfaction to our clients.

We serve our clients with utmost sincerity and dedication, thereby rendering efficient and reliable
services.

Our Cargo transportation services are widely appreciated by our clients and we have also received
several positive responses for our timely services. We use the best vehicles for transporting the
goods from one place to the other. As a result, we are reckoned as one of the best providers of
road transport services in India.

Our service standards for land transport are also precisely coordinated with the growing needs of
industry and commerce. Cargo Services with clearly defined transit times give our customers the
security they need in order to budget reliably and keep an exact control of the flow of goods.

With our own fleet of container trailers, we specialize in transporting our customer's goods from
place to place with an assurance of total safety. Operating on the principle of care and perfection,
we offer fast and reliable services.

We stand apart and take pride in being the most customer-oriented company. The safety and the
timely delivery are the supreme goals of the company. We have been serving the customers with
reliable, efficient and professional services.

OFL LOGISTICS company strives to deliver perfection in everything, we perform. Our quality
services match the international standards, as we believe in maintaining long term business
relationships with our customers.
We Offer :

• Transportation of general cargo.

• Transportation of heavy and over dimensional consignment.
• Arranging all clearance from PWD / RTO / Police / Forest dept. etc.
• Feasibility study for the port and road for transportation of heavy and over-
dimensional cargo.
23
 • Multi-modal transportation by road / rail / barge etc.
• Specialized transportation of very heavy consignments by hydraulic axle trailers.
• Civil engineering and structural engineering.
• Design and fabrication of special structure.
• Unloading of cargo at site.
• Placement of foundation / erection of heavy and over dimensional consignment.

LCL CONSOLE
We at OFL LOGISTICS provide an import consolidation program for those consignees
with multiple suppliers. Rather than small shipments, LCL shipments, we can
consolidateyour vendor’s cargo into a full container for maximum container utilisation.

This also allows for pre-sorting, according to destination and possible distribution options
through our de-consolidation program.

In addition to our FCL services, OFL LOGISTICS also provides an export consolidation program
for those shippers with multiple suppliers from India. Rather than small shipments - LCL
shipments - we consolidate cargo into a full container for maximum container utilization.

This also allows for pre-sorting, according to destination and possible distribution options. Our
consolidation service offers the advantages of competitive freight rates, reduced risk of pilferage
and reduced packing costs.

We make all arrangements for combining of goods at origin. We offer weekly consolidation
service for all LCL shipments from India. Worldwide destinations are covered through the Hub
Ports of Far East, Middle East, Europe and U.S. We continuously endeavor to consolidate direct
containers to individual ports thereby reducing transit time and cost.

We also offer volume shipment discounts, charter and part charter rates for air movement of your
cargo. Also provides for logistics consultations. We keep track of constantly changing rules &
regulations of the Customs, Bank & Other Government department for our customers benefit.

Our consolidation service offers the advantages of competitive freight rates, competitive
insurance premiums, reduced risk of pilferage and reduced packing costs. We make all
arrangements for combining of goods at origin, and separation of cargo at destination. This means
that you can enjoy the economic benefits of consolidated shipment, without the concerns of
separating your goods at destination.

We can save your time and money while systematizing your transportation and logistics program
in the process. We consolidate multiple pieces of freight destined for the same locations at our

24
cross-dock facility, then load the freight on trucks to be sent to destinations in the India and
abroad.

In coordination with our vendor management efforts, we will work closely with both you and
your shipper to ensure that we maximize the container utilization, as per the defined and agreed
upon shipping guidelines. This will help to effectively minimize your transportation costs.

25
 CHAPTER IV

EXPORTS AND IMPORT

PROCEDURE

26
 CHAPTER-IV
4.1 EXPORTS AND IMPORT PROCEDURE
EXPORT PROCEDURES
1. Exporter gets a request from the potential buyer asking for data with respect to cost,
standard and different terms & conditions for transportation of merchandise. The
exporter answers with a citation known as a proforma invoice.
2. In the event that the purchaser approves of the parts of terms and conditions, he puts
in the request or ‘indent’ for the merchandise.
3. In the wake of getting the request or indent, the exporter attempts an inquiry with
respect to the financial soundness of the importer to evaluate the danger of non-
payment by the importer.
4. As indicated by customs laws, the exporter or the export firm should have a fare
permit before continuing with export. The following steps are taken after for
acquiring the export license.
5. opening record in any approved bank
6. To acquire import export code (IEC) number from Directorate General Foreign
Trade (DGFT) or Regional Import Export Licensing Authority (RIELA).
7. Register with suitable export promoting committee.
8. To get enrolled with Export Credit and Guarantee Corporation (ECGC). After
getting the export license the exporter meets with his banker to get pre-dispatch
finance for carrying out production.
9. Exporter, after getting the pre-shipment fund from the bank, looks at to prepare the
merchandise according to the importer.
10. The law of India ensures that very selective and incredible quality products are
exported out of India. The exporter needs to introduce pre-shipment examination
report along with various papers at the time of dispatch
11. As demonstrated by the Central Excise Tariff Act, excise duty on the material used
as a part of creating the merchandise is to be paid. For a similar cause, exporter
applies to the concerned Excise Commissioner in the area with are cent
12. Remembering the ultimate objective to get Tariff concessions or diverse exclusions
the importer may ask for the exporter to send an authentication of origin.
13. The exporter applies to the logistics organization for the plan of transportation space.
He needs to give full information as for the merchandise to be dispatched,
conceivable date of shipment and port of destination. The logistics organization

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 issues a transportation course of action. Which is a guideline to the captain of the
ship, after accepting an application for dispatching.
14. The merchandise is stuffed and set apart with crucial data like name and addressof
the importing person, gross and net weight, port of shipment and destination etc.
After this, the exporter makes the strategy for the transportation of merchandise to
the port.
15. To protect the merchandise amid the ocean travel, the exporter gets great guaranteed
with the insurance agency.
16. Before stacking the merchandise on the ship they must be cleared by the client. For
this reason, the exporter makes the bill and submits 5 duplicates of the bill along with
17. Presenting the mentioned documents, the director of the concerned port trust
approaches to obtain to be sent order which is the guideline to the staff at the
entryway of the port to allow the cargo within the dock.
18. After the merchandise have been stacked on the ship, the captain issues mate’s
receipt to the port administrator which contains data with respect to the vessel, bill,
information about the merchandise, date of shipment denotes, the state of the
merchandise.
19. The clearing and forwarding specialist (C&F operator) hands over the mate’s receiptto
the transportation organization for analysing the cargo. On accepting the cargo the
transportation organization issues a bill of lading.
20. The exporter readies a receipt for the outgoing merchandises. The receipt contains
data with respect to the quantity of merchandise sent and the sum to be paid by the
importer. It is properly confirmed by the customs.
21. After dispatching the merchandise, the importer is given details by the exporter.
Different reports like an attested duplicate of the receipt, bill of lading packing list,
Insurance arrangement, certificate of origin, and letter of credit are sent by the
exporter through his bank. These records are required by the importing merchant for
getting the products cleared from customs.
DOCUMENTS USED IN EXPORT TRANSACTIONS
A. DOCUMENTS RELATED TO GOODS

• Seller Bill:- It is a seller’s bill data about products like amount, a number of
packages, blemishes on packing, the name of the ship, port of destination, terms of
delivery and payment and so on.

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 • Certificate of Inspection:- For guaranteeing quality, the government has made an
inspection of specific products necessary by some approved organization like trade
Inspection board of India (EICI) and so forth. In the wake of reviewing the
merchandise, the organization issues a certificate of inspection that the merchandise
has been reviewed as required under the export (Quality Control and Inspection)
Act, 1963.
• Packing List:- This document is with respect to the number of cases or packs and
the details of products contained in these packs. It gives finish insights with respect
to the products sent out and the condition in which they are being sent.
• Testament of Origin:- This authentication indicates the nation in which the
• merchandise is being produced. This authentication empowers the importer to claim
levy concessions or different exemption. This declaration is likewise required in the
event that when there is a prohibition on imports of a few products in specific
nations.
B. DOCUMENTS RELATED TO SHIPMENT

o Transportation Bill: It is the basic document based on which consent is allowed for
the export of merchandise by the customs office. It contains details of as to whom
the merchandise being sent, the name of the vessel, exporter’s name and address, a
nation of definite goal and so on.
o Mate’s Receipt:- This receipt is issued by the captain or mate of the ship to the
exporter after the merchandise are stacked on board the ship. It contains the name
of the vessel, quantity, marks, condition of the freight at the time of receipt on board
the ship and so on.
o Bill of lading – It is a record issued by the shipping organization. It goes about as a
proof with respect to the acknowledgment of the delivery organization to convey
the merchandise to the port of destination. It is additionally referred to as the title
to the merchandise and is openly transferable by underwriting and delivery.
o Airway Bill: Similar to a shipping bill, it is a record issued by the airline
organization on getting the products on board.
o Cart Ticket:- Also known as cart chit or gate pass, it is established by the exporter.
It contains insights with respect to sending out payload like a number of items,
shipping charge number, port of destination and so forth.
o Marine Insurance Policy: It is a document containing contract between the exporter and
the Insurance Company to reimbursement the safeguarded against the

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 misfortune brought in regard to products presented to the risks of the ocean travel
in light of an instalment called premium
C. DOCUMENT RELATED TO PAYMENT

• Letter of credit:- It is an assurance letter issued by the importer’s bank expressing

that it will respect the export bills to the bank of the exporter up to a specificsum.
• In export and import exchange, exporter draws the bill on the importer requesting
that he pay a predefined money to someone in particular or the ownerof the
instrument. The records required by the importer for guaranteeing the title of
exported merchandise are passed on to him just when the importer acknowledges this
bill.
• Bank Certificate of Payment:- It is a declaration that the required documents
identifying with the specific export deal have been arranged and payment has been
gotten related with the exchange control regulation.
4.2 IMPORT PROCEDURE
Import trade refers to the purchase of goods from a foreign country. The procedure
for import trade differs from country to country depending upon the import policy,
statutory requirements and customs policies of different countries. In almost all countries of
the world import trade is controlled by the government. The objectives of these controls
are proper use of foreign exchange restrictions, protection of indigenous industries etc.
The imports of goods have to follow a procedure. This procedure involves a number of
steps.

• Import trade refers to the purchase of goods from a foreign country. The procedure for
import trade differs from country to country depending upon the import policy, statutory
requirements and customs policies of different countries. In almost all countries of the
world import trade is controlled by the government. The objectives of these controls are
proper use of foreign exchange restrictions, protection of indigenous industries etc. The
imports of goods have to follow a procedure. This procedure involves a number of steps.
• The steps taken in import procedure are discussed as follows:

Trade enquiry
• The first stage in an import transaction, like any other transaction of purchase and
sale relates to making trade enquiries. An enquiry is a written request from the

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 intending buyer or his agent for information regarding the price and the terms on
which the exporter will be able to supply goods.
• The importer should mention in the enquiry all the details such as the goods
required, their description, catalogue number or grade, size, weight and the quantity
required. Similarly, the time and method of delivery, method of packing, terms and
conditions in regard to payment should also be indicated.
• In reply to this enquiry, the importer will receive a quotation from the exporter. The
quotation contains the details as to the goods available, their quality etc., the price
at which the goods will be supplied and the terms and conditions of the sale.
• The import trade in India is controlled under the Imports and Exports (Control) Act,
1947. A person or a firm cannot import goods into India without a valid import
license. An import license may be either general license or specific license. Under
a general license goods can be imported from any country, whereas a specific or
individual license authorities to import only from specific countries.
• The Government of India declares its import policy in the Import Trade Control
Policy Book called the Red Book. Every importer must first find out whether he
can import the goods he wants or not, and how much of a certain class of goods he
can import during the period covered by the relevant Red Book.
• For the purpose of issuing license, the importers are divided into three categories:

o Established importer,
o Actual users, and
o Registered exporters, i.e., those import under any of the export promotion
schemes.
• In order to obtain an import license, the intending importer has to make an
application in the prescribed form to the licensing authority. If the person imported
goods of the class in which he is interested now during the basic period prescribed
for such class, he is treated as an established importer.
• An established importer can make an application to secure a Quota Certificate. The
certificate specifies the quantity and value of goods which the importer can import. For
this, he furnishes details of the goods imported in any one year in basic period
prescribed for the goods together with documentary evidence for the same,
including a certificate from a chartered accountant in the prescribed form certifying the
c.i.f. value of the goods imported in the selected year.

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 • The c.i.f. value includes the invoice price of the goods and the freight and insurance
paid for the goods in transit. The quota certificate entitles the established importer
to import up to the value indicated therein (called Quota) which is calculated on the
basis of past imports. If the importer is an actual user, that is, he wants to import
goods for his own use in industrial manufacturing process he has to obtain license
through the prescribed sponsoring authority.
• The sponsoring authority certifies his requirements and recommends the grant of
license. In case of small industries having a capital of less than Rs. 5 lakhs, they
have to apply for licenses through the Director of Industries of the state where the
industry is located or some other authority expressly prescribed by the Government.
• Registered exporter importing against exports made under a scheme of export
promotion and others have to obtain license from the Chief Controller of Exports and
Imports. The Government issues from time to time a list of commodities and productswhich
can be imported by obtaining a general permission only. This is called as O.G.L. or Open
General License list.
Obtaining Foreign Exchange
• After obtaining the license (or quota, in case of an established importer), the
importer has to make arrangement for obtaining necessary foreign exchange since the
importer has to make payment for the imports in the currency of the exporting
country.
• The foreign exchange reserves in many countries are controlled by the
Government and are released through its central bank. In India, the Exchange
Control Department of the Reserve Bank of India deals with the foreign exchange.
For this the importer has to submit an application in the prescribed form along-
with the import license to any exchange bank as per the provisions of Exchange
Control Act.
• The exchange bank endorses and forwards the applications to the Exchange
Control Department of the Reserve Bank of India. The Reserve Bank of India
sanctions the release of foreign exchange after scrutinizing the application on the
basis of exchange policy of the Government of India in force at the time of
application.
• The importer gets the necessary foreign exchange from the exchange bank
concerned. It is to be noted that whereas import license is issued for a particular
period, exchange is released only for a specific transaction. With liberalization of

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 economy, most of the restrictions have been removed as rupee has become
convertible on current account.
• Placing the Indent or Order:
• After the initial formalities are over and the importer has obtained the license quota
and the necessary amount of foreign exchange, the next step in the import of goods
is that of placing the order. This order is known as Indent. An indent is an order
placed by an importer with an exporter for the supply of certain goods.
• It contains the instructions from the importer as to the quantity and quality of goods
required, method of forwarding them, nature of packing, mode of settling payment
and the price etc. An indent is usually prepared in duplicate or triplicate. The indent
may be of several types like open indent, closed indent and Confirmatory indent.
• In open indent, all the necessary particulars of goods, price, etc. are not mentioned
in the indent, the exporter has the discretion to complete the formalities, at his own
end. On the other hand, if full particulars of goods, the price, the brand, packing,
shipping, insurance etc. are mentioned clearly, it is called a closed indent. A
confirmatory indent is one where an order is placed subject to the confirmation by the
importer’s agent.
Dispatching a Letter of Credit
• Generally, foreign traders are not acquainted to each other and so the exporter
before shipping the goods wants to be sure about the creditworthiness of the
importer.
• The exporter wants to be sure that there is no risk of non-payment. Usually, for
this purpose he asks the importers to send a letter of credit to him.
• A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by its issuer
(usually importer’s bank) that the bills of exchange drawn by the foreign dealer,
on the importer will be honoured on presentation up to a specified amount
Obtaining Necessary Documents
• After dispatching a letter of credit, the importer has not to do much. On receipt of
the letter of credit, the exporter arranges for the shipment of goods and sends
Advice Note to the importer immediately after the shipment of goods. An Advice
Note is a document sent to a purchaser of goods to inform him that goods have
been dispatched. It may also indicate the probable date on which the ship is
expected to reach the port of destination.

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 • The exporter then draws a bill of exchange on the importer for the invoice value
of goods. The shipping documents such as the bill of lading, invoice, insurance
policy, certificate of origin, consumer invoice etc., are also attached to the bill of
exchange. Such bill of exchange with all these attached documents is called
Documentary Bill. Documentary bill of exchange is forwarded to the importer
through a foreign exchange bank which has a branch or an agent in the importer’s
country for collecting the payment of the bill.
• There are two types of documentary bills:
• D/P, D.P. (or Documents against payment) bills.
• D/A, D.A. (or Document against acceptance) bills.
• If the bill of exchange is a D/P bill, then the documents of title of goods are
delivered to the drawee (i.e., importer) only on the payment of the bill in full. D/P bill
may be sight bill or usance bill. In case of sight bill, the payment has to be made
immediately on the presentation of the bill. But usually a grace period of 24 hours is
granted.
• Usance bill is to be paid within a particular period after sight. If the bill is a D/A
bill, then the documents of title of goods are released to the drawee on his
acceptance of the bill and it is retained by the banker till the date of maturity.
Usually 30 to 90 days are provided for the payment of the bill.

Customs Formalities and Clearing of Goods

After receiving the documents of title of the goods, the importer’s only concern
is to take delivery of the goods, when the ship arrives at the port and to bring them to his own
place of business. The importer has to comply with many formalities for taking Delivery of
goods. Unless the following mentioned formalities are complied with, the goods lie in the
custody of the Custom House.

To obtain endorsement for delivery or delivery order

• When the ship carrying the goods arrives at the port, the importer, first of all, has
to obtain the endorsement on the back of the bill of lading by the shipping
company. Sometimes the shipping company, instead of endorsing the bill in his
favour, issues a delivery order to him. This endorsement of delivery order will
entitle the importer to take the delivery of the goods.

34
 • The shipping company makes this endorsement or issues the delivery order only
after the payment of freight. If the exporter has not paid the freight, i.e., when the
bill, of lading is marked freight forward, the importer has to pay the freight in order
to get green signal for the delivery of goods. To pay Dock dues and obtain Port
Trust Dues Receipts:

• The importer has to submit two copies of a form known as ‘Application to import’

duly filled in to the ‘Lading and Shipping Dues Office’. This office levies a charge on
all imported goods for services rendered by the dock authorities in connectionwith
lading of goods. After paying the necessary charges, the importer receive back
one copy of the application to import as a receipt ‘Port Trust Dues Receipt’.

Bill of Entry
o The importer will then fill in form called Bill of Entry. This is a form supplied by the
custom office and is to be filled in triplicate. The bill of entry contains the
particulars regarding the name and address of the importer, the name of the ship,
packages number, marks, quantity, value, description of goods, the name of the
country wherefrom goods have been imported and custom duty payable.

o The bill of entry forms are of three types and are printed in three colours-Black,
Blue and Violet. A black form is used for non-dutiable or free goods, the blue
form is used for goods to be sold within the country and the violet form is used
for re-exportable goods, i.e., goods meant for re-export. The importer has to
submit three forms of bill of entry along-with Port Trust Dues Receipt to the
customs office.
Bill of Sight
If the importer is not is a position to supply the detailed particulars of goods
because of insufficiency of information supplied to him by the exporter, he has to
prepare a statement called a bill of sight. The bill of sight contains only the information
possessed by the importer along-with a remark that he is not in a position to give
complete information about the goods. The bill of sight enables him to open the
package and examine the goods in the presence of custom officer so as to complete the
bill of entry.

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To pay Customs or Import Duty

There are three types of imported goods

Non dutiable or free goods,

• Goods which are to be sold within the country or which are for home
consumption, and
• Re-exportable goods i.e. goods meant for re-export. If the goods are duty free,
no import duty is to be paid at the custom office.
• Custom authorities will permit the delivery of such goods after usual
examination of the goods. But if the goods are liable for duty, the importer has
to pay custom or import duty which may be based on weight or measurement of
goods, called Specific Duty or on the value of imported goods Ad-valorem Ditty.
• There are three types of import duties. On some goods quite low duties are levied
and they are called revenue duties. On some others, quite high duties are charged to
give protection to home industries against foreign competition. While goods
imported from certain nations are given preferential treatment for the levy of
import duties and in their case full protective duties are not charged.

Bonded and Duty paid Warehouses

• The port trust and custom authorities maintain two types of warehouses-Bonded and
Duty paid. These warehouses are situated near the dock and are very useful to
importers who do not have godown of their own to store the imported goods or
who, for business reasons, do not wish to carry them to their own godowns.
• The goods on which the duty has already been paid by the importer can be kept
in the duty paid warehouses for which a receipt called ‘warehouse receipt’ is
issued to him. This receipt is a document of title and is transferable.
• The bonded warehouses are meant for goods on which duty has been paid by the
importer. If the importer cannot pay the duty, he may keep the goods in Bonded
warehouses for which he is issued a receipt, called ‘Dock Warrant’. Dock
Warrant, also like warehouses receipt, is a document of title and is answerable.
• The bonded warehouses are used by the importer when:
• He has no godown of his own.
• He cannot pay the duty immediately.

36
 • He wants to re-export the goods and thereby does not want to pay the duty.
• He wants to pay the duty in instalments.
• A nominal rent is charged for the use of these warehouses. One special advantage of
these warehouses is that the importer can sell the goods and transfer the title of
goods merely by endorsing warehouse receipt or dock-warrant. This will save the
importer from the trouble and expenses of carrying the goods from the
warehouses to his godown
Appointment of clearing Agents
• By now we understand that the importer has to fulfil many legal formalities
before he can take delivery of goods. The importer may take the delivery of the
goods himself at the port. But it involves much of time, expenses and difficulty.
Thus, to save himself from the botheration of complying with all the complicated
formalities, the importer may appoint clearing agents for taking the delivery of
the goods for him. Clearing agents are the specialized persons engaged in the
work of performing various formalities required for taking the delivery of goods on
behalf of others. They charge some remuneration on performing these valuable
services.
• The mode and time of making payment is determined according to the terms and
conditions as agreed to earlier between the importer and the exporter. In case of a
D/P bill the documents of title are released to the importer only on the payment of
the bill in full. If the bill is a D/A bill, the documents of title of the goods are released
to the importer on his acceptance of the bill. The bill is retained by the banker till the
date of maturity. Usually, 30 to 90 days are allowed to the importer for making the
payment of such bills.
• The last step in the import trade procedure is closing the transaction. If the goods are
to the satisfaction of the importer, the transaction is closed. But if he is not
satisfied with the quality of goods or if there is any shortage, he will write to the
exporter and settle the matter. In case the goods have been damaged in transit, he
will claim compensation from the insurance Company. The insurance company
will pay him the compensation under an advice to the exporter.
ROLE OF LOGISTICS IN EXPORT AND IMPORT
Over the last few years, grain production has increased across the globe. The United
States, Canada, Argentina, Ukraine, Russia and Australia have been looking ways to have a
bigger share in the grain market; thus, the competition has intensified. Because of the increase

37
in grain supply, as price goes down, the profit goes down as well. As the production goes up,
storage and delivery of grain cause problems for companies that have involved in the grain
trade. This is because the most cost-effective way of storage and delivery of grain at this time
of decreasing profit rates is the main way in which a company can hold it in a competitive
market.

Recently, logistics stands out as a dynamic sector that develops rapidly on a global
scale. The volume of international trade has risen due to lifting barriers to international trade,
increasing foreign investors and technological developments. Barriers such as customs taxes,
quotas and capital controls that separate national economies have gone down; services, or force
and capital become faster and easier to move between countries.

In parallel with the increase in international trade volume, the loss of the borders
between countries and the development of the concept of globalization, the logistics sector has
recently gained importance. Now, logistics has become one of the most important, largest nd
most dynamic sectors in the world. Goods and services are designed in any geographical area
of the world, produced in a different land and demanded elsewhere. Thus, in order to stand out and
have advantages, quick and timely delivery has become important for service and commodity
producing companies.

The logistics sector enters into the picture from this perspective; it plays a role in
product delivery from any point in the world, storage in required points, package, and the
customs clearance and so on. Logistics is an important competition power for companies that
are in deadly rivalry to survive among others, look ways to produce quality products cheaper
and to market these products and gained new successes from quality and cost perspective.

38
 The logistics which is defined as “the delivery of the right product in the right place
and time with an acceptable cost to customers” is a promising sector. However, in order to stay
alive, expand and compete in this promising sector, one has to take right and long-term steps.
When we say logistics, one should not think of only delivery and storage. For sustainable
supply chain, a good logistic strategy should be devised. The supply chain management
includes all processes such as purchasing, resource use, production planning, and flow
management, marketing, after sales support, service and logistics among others.

Without logistics, it is impossible to be successful in marketing, production, and

international trade. In advanced industrial societies, logistics competence is of great
importance and customers expect products they bought will be delivered as promised. In
extraordinary events, the necessity of logistics competence is understood better. The party that
makes the planning in the best way has great advantages in this field.

The logistics sector is continuously improving all over the world and the competition
level in this sector is increasing. Hence, companies should develop themselves continuously
on cost, human resources, quality of activities and management process, their efficiencies and
technology.

SUPPLY CHAIN MANAGEMENT

Logistic costs consist of transportation, storage, stocking and management expenses.

The transportation costs are caused by road, rail, sea, airway, customs and insurance expenses while
the storage costs are caused by rent/amortization, energy, handling, packaging and value- added
service costs; carrying and not-carrying costs cause the stock expenses; and the management
costs are caused by office personnel and general management expenses.

The proper planning of supply chain process is compulsory to lower the cost of
transportation and storage, the main cost items in the logistic, mitigating risks and reduction of
losses to a minimum level. For this reason, site selection and transportation for logistic
activities play an important role. In terms of raw material, production and logistic activities,
some regions are at the forefront. For this reason, important transportation ways and routes
gain strategic importance. That’s why companies should take geographical conditions and
logistic means into consideration while building their facilities. We can define logistics
strategy as a set of principles that help to generate plans, targets, and policies between different
actors in any supply chain. The logistics strategy plays a key role in boosting supply chain
performance.

39
 Since the supply chain which is affected by many factors and has a variable structure,
the logistics structure should be shaped accordingly. A logistics company should have a
dynami structure that will adapt to the changes that may occur in the supply chain. Therefore,
the logistics strategy must be flexible enough to respond to emergency situations.

UNINTERRUPTED COMMUNICATION

The logistics strategy should be designed to ensure an uninterrupted connection to

suppliers, companies and manufacturers located at different points across the world. For this
reason, you need to have the technology to keep you in constant contact with the whole world
in real time. Regardless of where they are, they must have channels of communication with
which you can connect with all the actors in your supply chain. If you can access the data in
real time, you can take precautions to help your company reach maximum potential in a Short
term.

Another important aspect of the logistics strategy is the correct use and analysis of data. At
this point, the keywords “innovation” and “digitalization” come into play. It is necessary to use
automation systems to reach the right data. In the logistics sector where the rivalry is high,the
profit margin is low and the number of transactions is at the highest level, companies that can
make use of IT technologies will stand out.

With mobile vehicle tracking systems companies now are able to monitor the location
of vehicles easily from their headquarters; the automation is utilized in the movement planning,
preparation of documents, shipment and delivery information. For example, warehouses of
future are managed with voice technology. This technology is in use particularly in the
collection of orders and products in storage applications and it ensures productivity and proper
guidance. Thanks to portable computers with headphone and microphone, operators can
receive orders from this voice system and can direct the order with verbal notification. Such
systems reduce the operational costs of logistics companies and increase productivity and help
to build a competitive structure.

The rise in export and imports of agricultural products in international trade is at a

remarkable level. Agriculture has become a strategic sector thanks to developments such as
agricultural products’ matchless role in nutrition, processing of foods for long shelf life, turning
into an international commodity in international trade and food security. Industrialization,
urbanization and increase in income rate changed consumption habits and caused people to
demand more for new and different quality agricultural products.

40
 Logistics costs became an important item for the agricultural sector as production
activities and consumption activities drifted away from each other. In this context, the supply
chain and logistics operation, that are important parts of this chain, have become just as
important as the quantity and quality of production.

Over the last few years, grain production has increased across the globe. For example,
Russia and Ukraine are breaking successive records. The United States, Canada, Argentina,
Ukraine, Russia and Australia have been looking ways to have a bigger share in the grain
market; thus, the competition has intensified. Because of the increase in grain supply, as price
goes down, the profit goes down as well. As the production goes up, storage and delivery of
grain cause problems for companies that have involved in the grain trade. This is because the
most cost- effective way of storage and delivery of grain at this time of decreasing profit rates
is the main way in which a company can hold it in a competitive market. Some companies,
particularly the ones that do wheat business on the global scale, are enlarging their grain intake
stations while some others are making investments for on- farm storage.

4.3 EXPORT, IMPORT SHIPPING DOCUMENTS

Documents:

• Import

• Export

DOCUMENTS ARE USED TO IMPORTS:

• Cargo Arrival Notice (C.A.N).

• Letter of Authority, in favor of INTERPORT CLEARING
SERVICES for collection of documents / Delivery Order (Take
Prints).
• Bank Delivery Order - in case A.W.B / C.A.N is in favor of the
Bank. o Commercial Invoice
• Packing List.
• Proforma Inv. / Purchase Order o Copy of L/ C.
• Insurance Certificate or Insurance Premium Memo (Required only if terms are C
& F / F.O.B).
• Certificate of Origin.
• I.E.C. Code No. (D.G.F.T. has now issued P.A.N based
certificates) o Income Tax P.A.N No.
• Factory license
• Freight Certificate (If freight Payable in India).

41
DOCUMENTS ARE USED TO EXPORTS
• R. B. I. Code no. (Original certificate needed for first shipment).
• I.E.C. code no. (Original certificate needed for first shipment).
• Invoice (5 copies) (original).
• Packing list.
• Copy of L/C.
• Contract / Purchase Order.
• G. R. form / I. E. P form duly signed with name and address of the bankers through
whom the documents are to be negotiated and the name of banker through whom
letter of Credit is received (As per R. B. I prescribed format).
• Declaration forms.
• Your bankers name and address with your bank account number to enable customs
to forward the drawback cheques directly to the said bank.
• R. 4 form.
• Technical details / Catalogues (first shipment)

These are the standard documents required to be submitted to customs for any export
shipment. However, depending on the nature of Export shipment / Scheme, the customs
authorities will require additional documents to be submitted at the time of assessment.

Exporter gets a request from the potential buyer asking for the data with respect to cost,
standard -and different terms &conditions for transportation of merchandise. The exporter
answers with a citation known as perfoma invoice.

I E C CODE

As per foreign trade policy it is mandatory to obtain I E C for export / import from
India.

INVOICE

Invoices indicates the buyer and seller of the goods, a description of the items ,their
value and the terms or proposed terms of the sale. Many governments use invoices for
calculating and assessing customs duties and taxes.

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PACKIG LIST
An export packing list is an detailed document that states all of the product and
packaging details contained in each shipment. Shippers must create a compliant packing list
document to be used by parties along the supply chain.

LETTER OF CREDIT

An export documentary letter of credit is a document where by your buyer instructs

their bank to pay you , assuming that the agreed conditions specified in the original
documentary credit, are met. It is a internationally accepted method of settling trade payments.

PURCHASING ORDER
A purchase order is a commercial document and first official offer issued by a buyer to
a seller indicating types, quantities, and agreed prices for products or services. It is used to
control the purchasing of products and services from external suppliers. Purchase orders can
be an essential part of enterprise resource planning system orders.

CERTIFICATE OF ORGIN
A certificate of origin (CO) is a document declaring in which country a commodity or
good was manufactured. The certificate of origin contains information regarding the product,
its destination, and the country of export. Required by many treaty agreements for cross-border
trade, the CO is an important form because it can help determine whether certain goods are
eligible for import, or whether goods are subject to duties.

43
BILL OF LADING
A bill of lading is a legal document issued by a carrier to a shipper that details the type,
quantity, and destination of the goods being carried. A bill of lading also serves as a shipment
receipt when the carrier delivers the goods at a predetermined destination. This document must
accompany the shipped products, no matter the form of transportation, and must be signed by
an authorized representative from the carrier, shipper, and receiver.

BILL OF LADING:

SHIPPING BILL
An exporter, while sending goods from one country to another as to go through various
formalities including submitting various applications, acquiring licenses, paying duties and so

44
on. To acquire a clearance for export from the customs, an exporter, will have to submit an
application called the shipping bill. Once cannot load the goods unless the files the shipping
bill. The export may be by air, vehicle or vessel.

PRO FORMA INVOICE

A pro forma invoice is an invoice prepared by the exporter before shipping the goods,
informing the buyer of the goods to be sent, their value, and other key specifications. It also
can be used as an offering of sale or price quotation.

INSURANCE CERTIFICATE
Insurance certificates are used to assure the consignee that insurance will cover the loss
of or damage to the cargo during transit. These can be obtained from your freight forwarder or
publishing house. Note: an airway bill can serve as an insurance certificate for a shipment by
air. Some countries may require certification or notification.

CERTIFICATE OF MAUFACTURER
Authenticated document certifying that the goods ordered have been produced by the
manufacturer, and are being held for the account and risk of the buyer.

QUALITY CERTIFICATE

Product certification or product qualification is the process of certifying that a certain

product has passed performance tests and quality assurance tests, and meets qualification
criteria stipulated in contracts.

SHIPPER’S LETTER OF INSTRUCTION

A Shipper's Letter of Instruction is a letter from the exporter instructing the freight
forwarder on how and where to handle the export shipment. The exporter is granting permission to
the forwarder to act as the authorized forwarding agent for U.S. export control and customs.

CERTIFICATE OF ANALYSIS
A certificate of analysis can be required for seeds, grain, health foods, dietary
supplements, fruits and vegetables, and pharmaceutical products.

DANGEROUS GOODS CERTIFICATE

A certificate of analysis can be required for seeds, grain, health foods, dietary
supplements, fruits and vegetables, and pharmaceutical products.

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CERTIFICATE OF FREE SALE
Certificate of free sale may be issued for biologics, food, drugs, medical devices and
veterinary medicine. More information is available from the Food and Drug Administration.
Health authorities in some states as well as some trade associations also issue Certificates of
Free Sale.

HEALTH CERTIFICATE

For shipment of live animals and animal products (processed foodstuffs, poultry, meat,
fish, seafood, dairy products, and eggs and egg products). Note: some countries require that
health certificates be notarized or certified by a chamber and legalized by a consulate. Health
certificates are issued by the U.S. Department of Agriculture’s Animal and Plant Health
Inspection Service.

FUMIGATION CERTIFICATE

The Fumigation Certificate provides evidence of the fumigation of exported goods

(especially agricultural products, used clothing, etc.). This form assists in the quarantine
clearance of any goods of plant or animal origin. The seller is typically required to fumigate
the commodity at his or her expense a maximum of 15 days prior to loading.

RADIATION CERTIFICATE
Some counties including Saudi Arabia may require this certificate for some plant and
animal imports. The certificate states that the products are not contaminated by radioactivity.

DOCK RECEIT AND WAREHOUSE RECEIPT

A dock receipt and warehouse receipt are used to transfer accountability when the
export item is moved by the domestic carrier to the port of embarkation and left with the ship
line for export.

INSPECTION CERTIFICATE
Weight and Quality certificates should be provided in accordance with governing
USDA/GIPSA regulations for loading at port and loading at source/mill site as appropriate. A
certificate of origin certified by the local chamber of commerce at the load port and a
phytosanitary certificate issued by APHIS/USDA and fumigation certificate are to be provided
to the buyer. Costs of all inspection, as well as certificates/documents at the load port, are
usually the responsibility of the seller. Independent inspection certificates may require in some
instances.

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PHYTOSANITATY CERTIFICATE

All shipments of fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber,
plants, and plant materials require a federal phytosanitary certificate. The certificate must
verify that the product is free from specified epidemics and/or agricultural diseases. Additional
information and forms are available from Animal and Plant Health Inspection Service.

PACKING LIST

47
CERTIFACTE OF ORGIN

48
DOCUMETS ARE USED IN IMPORT
• Bill of entry
• Import license
• Commercial invoice
• Insurance certificate
• Bill of lading
• Letter of credit
• Freight certificate
• Original documents(bank attested)
• Certificate of origin
• Delivery order
• Packing list
• Blank letter heads
• Movant declaration(if applicable)
• Technical write up
BILL OF ENTRY
An account of goods entered at a customhouse, of imports and exports, detailing the
merchant, quantity of goods, their type, and place of origin or destination. It is issued by the
customs presenting the total assigned value and the corosponding duty charged on the cargo.

IMPORT LICENsE
It is a document issued by a national government authorizing the importation of certain
goods into its territory. Import licenses are considered to be non –tariff barriers to trade when
used as a way to discriminate against another country's goods in order to protect a domestic
industry from foreign competition. A person and a firm cannot import goods in to India with
out a valid import license.

COMMERCIAL INVOICE
A commercial invoice is a customs document. It is used as a customs declaration
provided by the person or corporation that is exporting an item across international borders.
Although there is no standard format, the document must include a few specific pieces of
information such as the parties involved in the shipping transaction, the goods being
transported, the country of manufacture, and the Harmonized System codes for those goods. A

49
commercial invoice must often include a statement certifying that the invoice is true, and a
signature.

INSURANCE CERTIFICATE
Some countries may require that the import and/or export shipments be insured with
their national insurance companies. Under the open policy the insurer usually knows only of
the shipments made by the exporter after the receipt of the insurance declaration form and/or
the copy of the insurance certificates.

BILL OF LADING
A Bill of Lading is a document that is issued by the Carrier of goods to the Shipper of
the goods. It's a document to provide evidence or proof of shipment. . The Bill of Lading acts
as evidence of Contract of Carriage, receipt of goods and document of Title to the goods.

LETTER OF CREDIT

Import Letters of Credit are the most common method of import financing. They are
versatile, secure and can be used to finance any import transaction. An Import Letter of Credit
is a financial instrument issued by a bank that represents the commitment of the bank, on behalf of
an importer that guarantees payment will be made to the exporter provided the terms and
conditions specified in the Letter of Credit have been met. Conditions specified in Import
Letters of Credit are typically evidenced by the presentation of documents. Since they are credit
instruments, issuing banks rely on the credit-worthiness of importers when issuing Import
Letters of Credit.Exporter wants to be sure that there is no risk of non-payment .usually for this
purpose he asks the importer to send a letter of credit to him.

FREIGHT CERTIFICATE

Freight certificate is a document where in the freight forwarder is going to issue a

certification that they have been paid by an individual or company to move their products or
goods to another place or country. All the freight forwarders should be strict in following
regulations.

CERTIFICATE OF ORIGIN
A certificate of origin (often abbreviated to C/O or CO) is a document widely used in
international trade transactions which attests that the product listed therein has met certain
criteria to be considered as originating in a particular country. A certificate of origin is
generally prepared and completed by the exporter or the manufacturer, and may be subject to

50
official certification by an authorized third party. It is often submitted to a customs authority
of the importing country to justify the product's eligibility for entry and/or its entitlement to
preferential treatment.

DELIVERY ORDER

A delivery order is a document from a consignee, or an owner or his agent of freight

carrier which orders the release of the transportation of cargo to another party. Usually the
written order permits the direct delivery of goods to a warehouseman, carrier or other person
who in the course of their ordinary business issues warehouse receipts or bills of lading.

PACKING LIST

A packing list is a document that includes details about the contents of a package. The
packing list is intended to let transport agencies, government authorities, and customers know
the contents of the package. These details help each of these parties handle the package
accordingly. A packing list is expresses the contents of a package, along with details about the
quantity, description, and weight of these contents. Content pricing is not include A packing
list is created by the seller and sent to where the goods are located in order to have an accurate
tally of the sent goods. Once the goods have been tallied and packed, the list is sent along with
them to their destination.

MODVAT DECLARATION
MODVAT(Modified Value Added Tax) is a unique system under Central Excise Rules
that permits manufacturers of excisable goods to avail credit of duty paid on the notified inputs
received and used in or in relation to the manufacture of final products and to utilize such credit
towards the duty liability.

TECHNICAL WRITE UP
Technical write up, literature of imported goods or any other similar documents may
be required as one of the documents for import clearance under some specific goods. For
example, if a machinery is imported, a technical write up or literature explaining the function
can be attached along with importing documents. This document helps customs official to
derive exact market value of such imported machinery in turn helps for value assessment.

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 CHAPTER V

FINDINGS, SUGGESTIONS AND

CONCLUSION

52
 CHAPTER-V
FINDINGS, SUGGESTIONS AND CONCLUSION
INTRODUCTION
This chapter deals with the summary of findings, suggestions and conclusions of the
study. Findings refer to findings on profile of the respondents and related information.
Suggestions are given to the Logistic Company.

Arrival notice

An advice that the carrier sends to the consignee advising of goods coming forward for
delivery. Pertinent information such as BL number, container number and total charges due
from consignee etc, are included and sent to consignee prior to vessel arrival. This is done
gratuitously by the carrier to ensure smooth delivery but there is no obligation by the carrier to
do so. The responsibility to monitor the transit and present himself to take timely delivery still
rests with the consignee.

Bill of lading (B/L)

Official legal document representing ownership of cargo, a negotiable document to

receive cargo, and the contract for cargo between the shipper and the carrier.

Break-bulk cargo

Goods shipped loose in the vessel hold and not in a container.

Bulk carriers

A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is
loaded without marks & number or count.

Bunkers

Heavy oil used as fuel for ocean vessels. Cargo manifest: A manifest that lists only
cargo, without freight and charges.

Carrier

Any individual, company or corporation engaged in transporting goods.

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Cells

The construction system employed in container vessels; permits below ship containers
to be stowed in a vertical line with each container supporting the one above it.

Cellular vessel

A vessel designed with internal ribbing to permit the support of stacked containers.

Consolidated cargo

Cargo containing shipments of two or more shippers, usually shipped by a firm called
a consolidator. The consolidator takes advantage of lower F.C.L. rates, and savings are passed
on to shippers.

Consolidation

The combination of many small shipments into one container.

Container

A receptacle designed to transport cargo of many types in continuous transportation.

Container freight station (CFS, C.F.S.)

Consolidation depots where parcels of cargo are grouped and loaded into containers.

Container load plan (CLP)

A document prepared to show all details of cargo loaded in a container, e.g. weight
(individual and total), measurement, markings, shippers, consignees, the origin & destination
of goods, and location of cargo within the container.

Container number

The unique identification of a container.

Container size

The length of a container i.e. 20'', 40'' and 45'' (feet).

54
Container terminal

Also refered to as a Container Yard (CY). A facility that receives full export containers
from one shipper to loading the vessel and delivers full import containers to the consignee after; it
is the same location where ocean vessels are loaded & unloaded.

Container type

The purpose of a container of which the code is to be adhered to ISO standard.

Containership

An ocean vessel specifically designed to carry ocean cargo containers. It is fitted with
vertical cells for maximum capacity.

Cut-off time

Latest possible time the cargo may be delivered to the vessel or designated point.

Deadweight Tonnage (D/W)

The number of total weight tons that a vessel can transport of cargo, stores and bunker
fuel. It is the difference between the number of tons of water a vessel displaces "light" and the
number of tons it displaces when submerged to the "load line."

Delivery Order

A document authorizing delivery to a nominated party of goods in the care of a third

party. Can be issued by a carrier on surrender of a bill of lading and then used by the merchant
to transfer title by endorsement.

Depot Container

Container freight station or a designated area where empty containers can be picked up
or dropped off.

Destination

The place where the carrier actually turns over the cargo to consignee or his agent.

Detention Charges

Charges raised for detaining container/trailer at customer premises for longer period
than provided in Tariff.

55
Devanning

The removal of cargo from a container. Also known as unstuffing, unloading or

stripping.

Dock

(a) The water alongside a pier or wharf.

(b) Loading or unloading platform at an industrial location or carrier terminal.

Dry Cargo

Cargo that does not require temperature control.

Dry Dock

An enclosed basin into which a ship is taken for underwater cleaning and repairing. It
is fitted with watertight entrance gates which when closed permit the dock to be pumped dry.

Dry-Bulk Container

A container constructed to carry grain, powder and other free flowing solids in bulk.

Dwell Time

It is expressed in term of no. of day that a container changed from one status to another
e.g. from under inbound load (UIL) to empty available (MTA) to under outbound load (UOL).
The shorter the dwell time, the more efficient the container utilization will be.

Export

Shipment of goods to another country.

F.C.L.

Full Container load

Arrangement whereby shipper utilizes all the space in a container which he packs
himself.

Feeder Vessel

Vessel employed in normally short sea routes to fetch or carry goods and containers to
and from ocean going vessels.

56
FEU

Forty-foot Equivalent Unit (40'' or 2 TEUs)

Freight

(a) The price paid to the carrier for the transportation of goods or merchandise by sea
from one place to another.

(b) Freight is also used to denote goods which are in the process of being transported
from one place to another.

Full Cellular Ship

A ship fitted for container carriage in all available space. The ship is fitted with vertical
cells for container placement both below and above deck. No provisions are available for cargo
other than containers.

General Average

General average is an unwritten, non-statutory, international maritime law which is

universally recognized and applied. It is founded on the principle that vessel and goods are
parties to the same venture and share exposure to the same perils, which may require sacrifice
or the incurring of extraordinary expense on the part of one for the benefit of the whole venture.

Gross Tonnage

Applies to vessels, not to cargo. Determined by dividing by 100 the contents, in cubic
feet, of the vessel's closed-in spaces. A vessel ton is 100 cubic feet.

Gross Weight

Entire weight of goods, packaging and container, ready for shipment.

High Cube

Any container which exceeds 8 feet 6 inches (102 inches) in height, usually 9 feet 6
inches.

Hull

The body of a vessel exclusive of masts, yards, sails, rigging, machinery and equipment.

57
Import

Shipment of goods from a foreign country.

Incoterms

Incoterms are a set of uniform rules codifying the interpretation of trade terms defining the
rights and obligation of both buyer and seller in an international transaction, thereby enabling
another wise complex basis for a sale contract to be accomplished in three letters. Incoterms
are drafted by the International Chamber of Commerce.

Knot

A unit of speed. The term "knot" means velocity in nautical miles per hour whether of
a vessel or current. One nautical mile is roughly equivalent to 1.15 statute miles or 1.85
kilometers.

L.C.L.

Less than Container Load. Cargo in quantity less than required for the application of
a container load rate.

Liner

Vessel plying a regular trade/defined route against a published sailing schedule.

Liner Terms

Freight includes the cost of loading onto and discharging from the vessel.

Manifest

Document that lists in detail all the bills of lading issued by a vessel or its agent or
master, i.e., a detailed summary of the total cargo of a vessel. Used principally for customs
purposes. It is also called summary of Bills of lading.

Maritime

Business pertaining to commerce or navigation transacted upon the sea or in seaports

in such matters as the court of admiralty has jurisdiction over.

Maximum Payload

Maximum cargo that can be loaded into a container either by weight or volume.

58
Net Tonnage

A vessel's gross tonnage minus deductions of space occupied by accommodation for

crew, by machinery, for navigation, by the engine room and fuel. A vessel's net tonnage
expresses the space available for passengers and cargo.

On Board

Cargo has been loaded on board a combined transport mode of conveyance. Used to
satisfy the requirements of a letter of credit, in the absence of an express requirement to the
contrary.

Open-Top Container

A container fitted with a solid removable roof or with a tarpaulin roof that can be loaded
or unloaded from the top.

Port

(a) Harbor with piers or docks;

(b) Left side of a ship when facing the bow;

(c) Opening in a ship's side for handling freight.

Port of arrival

Location where imported merchandise is off loaded from the importing aircraft or
vessel.

Port of Call

Port where a steamer discharges or receives traffic.

Port of Discharge

Port where cargo is unloaded from vessel.

Port of Entry

Port where cargo actually enters a country where the cargo is not part of its commerce.

Port of Loading (POL)

Port where cargo is loaded to vessel.

59
Reefer

In the industry, it is the generic name for a temperature controlled container. The
containers, which are insulated, are specially designed to allow temperature controlled air
circulation within the container Seal (Container): Metal strip and lead fastener used for locking
freight car or truck doors. Seals are numbered for record purposes.

Record

A record of the number, condition and marks of identification on seals made at various
times and places, referring to the movement of the container between origin and destination.

Ship Owner

One of the persons in whom is vested the title of property of a ship or ships.

Shipper

The person for whom the owners of a ship agree to carry goods to a specified destination
and at a specified price. Also called consignor. The conditions under which the transportation
is effected are stipulated in the bill of lading.

Shipper owned container

The container used for cargo shipment is owned by the shipper.

Stevedore

Terminal operator who is designated to facilitate the operation of loading and

discharging vessels and various terminal activities.

Stripping

The unloading of a container.

Stuffing

The loading of a container.

Tank Container

A specially constructed container for transporting liquids and gases in bulk.

60
Tare Weight

The weight of packing material or, in carload shipments, the weight of the empty freight
car.

TEU

Twenty-foot Equivalent Unit (20") .

THC

Terminal Handling Charge. A charge assessed by the terminal for handling FCLs at
ocean terminals.

Tonnage

Generally refers to freight handled.

Transit Cargo

Goods onboard which upon their arrival at a certain port are not to be discharged at that
port.

Transit Port

A port where goods received are merely en route and from which they have to be
transferred and dispatched to their ultimate destination by coasters, barge and so on. Also called
transhipment port.

Vanning

A term sometimes used for stowing cargo in a container.

Ventilated Container

A container designed with openings in the side and/or end walls to permit the ingress
of outside air when the doors are closed.

Vessel's Manifest

Statement of a vessel's cargo (revenue, consignee, marks, etc.).

61
Waybill (WB)

A document prepared by a transportation line at the point of a shipment; shows the point
of the origin, destination, route, consignor, consignee, description of shipment and amount
charged for the transportation service.

A waybill is forwarded with the shipment or sent by mail to the agent at the transfer
point or waybill destination. Abbreviation is WB. Unlike a bill of lading, a waybill is not a
document of title

5.2 FINDINGS
• They undertake to handle export and and FCL of all shipment made both on
air and sea. imports by both air and sea LCL

• Growth of the export and import in India is increasing

• Due to online billings they face more problems

• Documents needed for the shipment

• Customs process on the shipment

• Only the retained firms with their n number of customers can sustain

• They concentrate on LCL FCL

• Their exports destination is USA, Singapore, Malaysia, Dubai etc.

SUGGESTIONS
Relatively inexpensive, cloud-based technology now allows you to have near real- time
awareness of when inbound shipments will arrive, so you can gear up as needed or respond
quickly to delays that off-put customers. Similarly, technology can let you track when an order has
been processed, picked, packed and shipped, and send a tracking number to your customer. "The
end result is a better customer experience, especially when they can manage their own delivery.
Rightsizing packaging is more critical than ever now that dimensional weight is an industry
standard. "With on-demand packaging, a machine die cuts the right size box for eachorder from
rolls of corrugated board," Collins says. The payoffs: Reduced packaging and transportation
costs, as well as enhanced sustainability, an increasingly important consideration for customers.

62
CONCLUSION
In the time of Internship in SEND EASY LOGISTICS learn about shipping documents
producers and process of the import and export duties and real time working experience. The
founder-partner and their team help us to learn many things about shipping terms.

63
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