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CHAPTER I INTRODUCTION 1.1 INTRODUCTON Definitions of logistics The American Council of Logistics Management defines logistics as “the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, inprocess inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers‟ requirements”. Philip Kotler defines logistics as “planning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer‟s need at a profit”. Objectives of logistics Logistics has the following objectives: Reduction of inventory: Inventory is one of the key factors, which can affect the profit of an enterprise to a great extent. In the traditional system, firms had to carry lot of inventory for satisfying the customer and to ensure excellent customer service. But, when funds are blocked in inventory, they cannot be used for other productive purposes. These costs will drain the enterprise‟s profit. Logistics helps in maintaining inventory at the lowest level, and thus achieving the customer goal. This is done through small, but frequent supplies. Economy of freight: Freight is a major source of cost in logistics. This can be reduced by following measures like selecting the proper mode of transport, consolidation of freight, route planning, long distance shipments etc. Reliability and consistency in delivery performance: Material required by the customer must be delivered on time, not ahead of the schedule or behind the schedule. Proper planning of the transportation modes, with availability of inventory will ensure this.

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Minimum damage to products: Sometimes products may be damaged due to improper packing, frequent handling of consignment, and other reasons. This damage adds to the logistics cost. The use of proper logistical packaging, mechanized material handling equipment, etc. will reduce this damage. Quicker and faster response: A firm must have the capability to extend service to the customer in the shortest time frame. By utilizing the latest technologies in processing information and communication will improve the decision making, and thus enable the enterprise to be flexible enough so that the firm can fulfil customer requirements, in the shortest possible time frame. The various functions of logistics are as follows •

Order Processing: Processing the orders received from the customers is an activity, which is very important by itself and also consumes a lot of time and paperwork. It involves steps like checking the order for any deviations in the agreed or negotiated terms, price, payment and delivery terms, checking if the materials is available in stock, producing and scheduling the material for shortages, and also giving acknowledgement to the owner, by indicating any deviations.

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Inventory Planning and management: Planning the inventory can help an organization in maintaining an optimal level of inventory which will also help in satisfying the customer. Activities like inventory forecasting, engineering the order quantity, optimization the level of service, proper deployment of inventory etc. are involved in this.

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Warehousing: This serves as the place where the finished goods are stored before they are sold to the customers finally. This is a major cost center and improper warehouse management will create a host of problems.

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Transportation: Helps in physical movement of the goods to the customers place. This is done through various modes like rail, road, air, sea etc.

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Packaging: A critical element in the physical distribution of the product, which also influences the efficiency of the logistical system.

Logistics delivers value to the customer through three main phases •

Inbound logistics: These are the operations, which precede manufacturing. These include the movement of raw materials, and components for processing from suppliers. 2

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Process logistics: These are the operations, which are directly related to processing. These include activities like storage and movement of raw materials, components within the manufacturing premises.

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Outbound logistics: These are the operations, which follow the production process. These include activities like warehousing, transportation, and inventory management of finished goods.

Logistics Solution Generally, the in-house logistics departments in manufacturing organizations take care of all aspects of logistics. But this is not an area of core competency of manufacturing or trading organizations. Today, a lot of successful business corporations across the world are outsourcing logistics to the third party logistics providers, who are having the necessary infrastructure and expertise to do the job in a better manner. Complete logistics solutions to manufacturers and traders is provided by the third party logistics providers, and they help in integrating various logistics operations, thus ensuring speedy and uniform movement of materials across the supply chain. Logistics is nowadays widely used in virtually every area. The success of a logistics service providing company depends on how they conceptualize and implement the logistics solution, and also tune to the requirements of the customer. Future of Logistics Nowadays corporations look only for sustainable competitive advantage, not only for growth, but also to survive. There is so much killing competition that corporations are compelled to review their business process while they deliver the products and services to customers, who are looking for more and more value for the money that they are spending. The focus of competition has shifted from the product to the supply chain. Today, logistics management is based on the system concept and cost approach. Transportation, warehousing, handling of material, inventory management and order processing are the major logistics activities, which impact the customer cost and operation. Integrated logistics helps in taking the cost out of the supply chain and also enhance the customer service level. When looking at the macro level, a growth of a country‟s economy depends on the availability of excellent logistics infrastructure. The speed of the movement of goods depends to a great extent on the various modes of transportation like rail, road, air, 3

and sea. Logistics has a bright future, especially in India, but certain pressing issues like abolition of octroi levy, rationalization of customs formalities, improvement in road and rail infrastructure, creation of modern warehouse facilities etc., have to be taken care of. The geographical position of India also is well positioned to emerge as an excellent hub for a variety of products.

This project is all about to know the export/import and documentation procedure of shipment. this project puts more focus on to know customs clearance, documentation, ,to make import/export invoice ,to get shipping bill number from custom department etc. this project will also find out how INDEV logistics could sustain in the competitive world by providing vast range of cargo handling through all instruments which flexible prompt and innovative in meeting the requirements of the customer the purpose of the study was to know about import/ export and documentation procedure of air and seaway in the INDEV logistics. INDEV logistics is an Indian organization that offers years of specialist experience within the freight forwarding, customs clearance, warehousing, logistics and commercial storage factors. Our portfolio of professional services includes international air, freight, ocean freight, customs clearance, documentation procedures insurance, packing and storage. The creation of integrated forwarding solution has enabled INDEV logistics to provide market sector specific, standardized client services, sectors that currently take advantage of their specialist solutions include from sole traders to multinational with varied industry interest from automobiles to garments steel industry ,power industry, details, chemicals ,cement industry ,telecommunication industry ,manufacturer and fabrication of raw materials ,steel electronics etc., INDEV logistics power with an aggressive team is able to allow our business partners to be ahead their competitors. INDEV logistics is Bangalore based company and our offices and by locations around the word represents an international networks that helps you save time and money, whether you are doing business around the world ,we have the resources flexibility and know how to meet your needs quickly and cost effectively.

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This manual is intended to provide a clear and concise explanation of the procedures to be followed by persons involved in importing and exporting goods into and out of St. Kitts and Nevis. It will outline the steps to be followed in order to comply with the numerous administrative and statutory requirements of the various government departments which exercise control over the movement of goods through the various ports of entry. The manual also includes a series of illustrations that map out the processes of the various agencies in a simplified user friendly format. The procedural requirements of the major stakeholders involved in trade is presented in a logical sequence and is written in simple language which focuses on the trader‟s perspective of the processes. Great care is taken to use terms which are commonly known and to avoid the use of jargon used within the respective agencies. References are made to the legislative instruments or statues which authorize the use the measures and a glossary is included to explain some of the technical terms which cannot be avoided. Users of this manual must be mindful that the procedures represented here are intended as a general guide and should not be used as the authoritative source for making commercial decisions. All legal matters should be considered within the context of the provisions of the relevant legislation or based on independent professional advice. The technical assistance and resources necessary to accomplish this task was made possible by International Finance Cooperation (IFC) - the private sector arm of the World Bank Group. This initiative is intended to contribute towards improving the institutional and regulatory framework in which trade transactions are conducted by the private sector within St. Kitts and Nevis. An import is a good brought into a jurisdiction, especially across a national border, from an external source. The party bringing in the good is called an importer. An import in the receiving country is an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority. The importing and exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions.

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"Imports" consist of transactions in goods and services to a resident of a jurisdiction (such as a nation) from non-residents. The exact definition of imports in national accounts includes and excludes specific "borderline" cases.[4] A general delimitation of imports in national accounts is given below: •

An import of a good occurs when there is a change of ownership from a non-resident to a resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownership takes place (e.g. cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair). Also smuggled goods must be included in the import measurement.

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Imports of services consist of all services rendered by non-residents to residents. In national accounts any direct purchases by residents outside the economic territory of a country are recorded as imports of services; therefore all expenditure by tourists in the economic territory of another country are considered part of the imports of services. Also international flows of illegal services must be included. Basic trade statistics often differ in terms of definition and coverage from the requirements in the national accounts:

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Data on international trade in goods are mostly obtained through declarations to custom services. If a country applies the general trade system, all goods entering the country are recorded as imports. If the special trade system (e.g. extra-EU trade statistics) is applied goods which are received into customs warehouses are not recorded in external trade statistics unless they subsequently go into free circulation of the importing country.

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A special case is the intra-EU trade statistics. Since goods move freely between the member states of the EU without customs controls, statistics on trade in goods between the member states must be obtained through surveys. To reduce the statistical burden on the respondents small scale traders are excluded from the reporting obligation.

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Statistical recording of trade in services is based on declarations by banks to their central banks or by surveys of the main operators. In a globalized economy where services can be rendered via electronic means (e.g. internet) the related international flows of services are difficult to identify. 6

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Basic statistics on international trade normally do not record smuggled goods or international flows of illegal services. A small fraction of the smuggled goods and illegal services may nevertheless be included in official trade statistics through dummy shipments or dummy declarations that serve to conceal the illegal nature of the activities.

Balance of trade represents a difference in value for import and export for a country. A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied, or when the price of the good (or service) on the world market is less than the price on the domestic market. The balance of trade, usually denoted, is the difference between the value of the goods (and services) a country exports and the value of the goods the country imports or equivalently A trade deficit occurs when imports are large relative to exports. Imports are impacted principally by a country's income and its productive resources. For example, the US imports oil from Canada even though the US has oil and Canada uses oil. However, consumers in the US are willing to pay more for the marginal barrel of oil than Canadian consumers are, because there is more oil demanded in the US than there is oil produced. In macroeconomic theory, the value of imports can be modeled as a function of the domestic absorption and the real exchange rate. These are the two largest factors of imports and they both affect imports positively. There are two basic types of import: 1.

Industrial and consumer goods

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Intermediate goods and services

Companies import goods and services to supply to the domestic market at a cheaper price and better quality than competing goods manufactured in the domestic market. Companies import products that are not available in the local market. There are three broad types of importers: 1.

Looking for any product around the world to import and sell.

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Looking for foreign sourcing to get their products at the cheapest price.

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Using foreign sourcing as part of their global supply chain. 7

Direct-import refers to a type of business importation involving a major retailer (e.g. Wal-Mart) and an overseas manufacturer. A retailer typically purchases products designed by local companies that can be manufactured overseas. In a direct-import program, the retailer bypasses the local supplier (colloquial middle-man) and buys the final product directly from the manufacturer, possibly saving in added cost data on the value of imports and their quantities often broken down by detailed lists of products are available in statistical collections on international trade published by the statistical services of intergovernmental organisations (e.g. UNSTAT, FAOSTAT, OECD), supranational statistical institutes (e.g. Eurostat) and national statistical institutes. The term export means shipping in the goods and services out of the jurisdiction of a country. The seller of such goods and services is referred to as an "exporter" and is based in the country of export whereas the overseas based buyer is referred to as an "importer". In international trade, "exports" refers to selling goods and services produced in the home country to other markets. Export of commercial quantities of goods normally requires involvement of the customs authorities in both the country of export and the country of import. The advent of small trades over the internet such as through Amazon and eBay have largely bypassed the involvement of Customs in many countries because of the low individual values of these trades.[citation needed]Nonetheless, these small exports are still subject to legal restrictions applied by the country of export. An export's counterpart is an import. The theory of international trade and commercial policy is one of the oldest branches of economic thought. Exporting is a major component of international trade, and the macroeconomic risks and benefits of exporting are regularly discussed and disputed by economists and others. Two views concerning international trade present different perspectives. The first recognizes the benefits of international trade. The second concerns itself with the possibility that certain domestic industries (or laborers, or culture) could be harmed by foreign competition. Methods of export include a product or good or information being mailed, handdelivered, shipped by air, shipped by vessel, uploaded to an internet site, or downloaded from an internet site. Exports also include the distribution of information that can be sent in the form of 8

an email, an email attachment, a fax or can be shared during a telephone conversation. A tariff is a tax placed on a specific good or set of goods exported from or imported to a country, creating an economic barrier to trade. Usually the tactic is used when a country's domestic output of the good is falling and imports from foreign competitors are rising, particularly if there exists strategic reasons for retaining a domestic production capability. Some failing industries receive a protection with an effect similar to subsidies in that by placing the tariff on the industry, the industry is less enticed to produce goods in a quicker, cheaper, and more productive fashion. The third reason for a tariff involves addressing the issue of dumping. Dumping involves a country producing highly excessive amounts of goods and dumping the goods on another foreign country, producing the effect of prices that are "too low". Too low can refer to either pricing the good from the foreign market at a price lower than charged in the domestic market of the country of origin. The other reference to dumping relates or refers to the producer selling the product at a price in which there is no profit or a loss. The purpose and expected outcome of the tariff is to encourage spending on domestic goods and services. Protective tariffs sometimes protect what are known as infant industries that are in the phase of expansive growth. A tariff is used temporarily to allow the industry to succeed in spite of strong competition. Protective tariffs are considered valid if the resources are more productive in their new use than they would be if the industry had not been started. The infant industry eventually must incorporate itself into a market without the protection of government subsidies. Tariffs can create tension between countries. Examples include the United States steel tariff of 2002 and when China placed a 14% tariff on imported auto parts. Such tariffs usually lead to filing a complaint with the World Trade Organization (WTO) and, if that fails, could eventually head toward the country placing a tariff against the other nation in spite, to impress pressure to remove the tariff. 1.2 INDUSTRY PROFILE The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and 60s, military was the only organization which used logistics. The scope of logistics has been extended beyond the army, as it has been recognized as one of the important tools for developing competitiveness. Competitive advantage means the company has the ability to differentiate itself, in the customer‟s eyes, and also is operating at a lower cost and greater 9

profit. Logistics facilitates in getting products and services as and when they are needed and desired to the customer. It also helps in economic transactions, serving as a major enabler of growth of trade and commerce in an economy. Logistics has come to be recognized as a distinct function with the rise of mass production systems. Production and distribution were earlier viewed as a sequential chain of extremely specialized activities. The role of logistics is to ensure availability of all the required materials before every step in this chain. Obviously inventory of raw materials, semi-finished and finished goods is a must across this chain to ensure its smooth functioning. The concept of logistics has its base upon the systems approach. There is a single chain, with flow of materials starting from the supplier, then to the plant and finally to the end customer, and also these activities are done sequentially in order to achieve customer satisfaction at low cost. For this to be successful there has to be co-ordination in the activities of the department. With reference to an organization, an organization gets a concrete shape due to its structure. In the earlier times, the suppliers in distribution activities were spread across the entire structure, thus resulting in an overlapping of activities and finally in unaccountable authority and responsibility. In today‟s process driven organization, where the focus has shifted from functions to process, logistics has become an essential part of the process. 1.3 COMPANY PROFILE We introduce our self as a Customs Clearing Agent and International Freight Forwarders and can provide better Freight rates on Air & Sea shipments to worldwide destinations and clearance activities. We provide the following services to our customers in a cost effective ways. 

Sea Freight

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Air Freight

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Customs Brokerage

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Transportation

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EXIM Consultancy services – STPI/SEZ/EOU Customs and Central Excise

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Relocation of goods – Personal Baggage Clearance

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Branches – Chennai, Hyderabad, Bangalore, New Delhi & Vizag

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Logistics started with a view to provide cost effective solutions in the field of Customs Brokerage, AIR & SEA consolidation, Freight and other Ancillary services of EXIM. Promoters and their background, about their professional qualifications, experience etc. S.XAVIER BRITTO, M.com, B.L,M.B.A,A.C.S. CHAIRMAN-INDEV GROUP Highly qualified professional; an innovative visionary; team leader; a powerful man with social &professional ethics and responsibilities despite; a humble human being. INDEV LOGISTICS- started dreaming in the year 1984 and today having realized it with multi logistics units all over globe, celebrating INDEV‟S “silver jubilee” year & healthily supporting over 2000 families in INDEV groups. St.BRITTE‟S ACADEMY is his soul‟s dream made into reality by Mrs.Vimala rani brittocorrespondent of the academy, presently with two states of art and quality educational institutions imparting high quality education with social ethics & responsibilities, national unity & integrity to make every student a happy Indian. Still to add on professional colleges, logistics & shipping institution etc., HOTEL ESTHELL- is the place where a typical indev‟s hospitality is extended & experienced. OUR MISSION: The concept of the business is to provide “Single Window Clearance” services wherein we become an integral part of the company and a perfect match for the option of “outsourcing of services” and be an extension of Customers. This gives the client a clear advantage of single point information source for their international cargo movement and services related to DGFT, STPI, CEX, and CUSTOMS. Our aim is to improve our customer services productivity and quality, operating performance and their customer satisfaction. As a result this brings down the communication cost; employee cost and provides value added services to our clients. 11

OUR SERVICES TO 100% EOU’s under STP Scheme AIR & SEA FREIGHT RATES: We can pick up the shipment from your overseas counter agent and will be delivered to your Hyderabad Office. Whether it can be Air mode, Sea mode (LCL, 20‟ Cntr, 40‟ Cntr& 40 HC Cntr) PERSONAL EFFECT SHIPMENT: If any employee of your company coming on a certain period to Chennai/Hyderabad on Job work, on relocation basis. Their Shipment will be cleared from AIR CARGO/ICD /CFS Chennai / Hyderabad. We can do the corporate Packing of the goods at your site for relocation basis. 100% EOU (Export Oriented Units) Under STP Scheme: 100% EOU Scheme where in the manufacture can process his operations in a Customs Bonded Warehouse. EOU / SEZ / EHTP / STP fall under this category. The manufacturer can bring in the goods duty free subject to export obligation. The services we offer are as follows: 

Registration with STPI / VSEZ;

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Arranging Customs Private Bonded Warehouse license under section 58 and 65 of Indian Customs Act 1962;

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Arranging necessary certificates for procurement of goods duty free (i.e. Import Certificates, Procurement, CT-3 form);

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Providing services in Central Sales Tax Re-imbursement;

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Providing services in Softex forms clearance from STPI;

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Necessary certificates / approvals for inter unit transfers, movement of laptop computers, Re-Export of equipment‟s imported on loan basis;

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Maintaining the Bond Registers and Bond Balance in our database.

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Providing dedicated Manpower to look after the day to day compliance and asset tracking of goods.

OUR SERVICES TO SETTING UP OF A SEZ UNIT: 

Preparation of application

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Submission with VSEZ/UAC

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Arranging necessary permission from DC/UAC;

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Execution of Bond cum legal undertaking with DC/Specified officer

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Arranging exemption certificate from VSEZ;

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Arranging List of Services from UAC;

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Arranging List of goods approval from DC/UAC;

DAY TO DAY CLEARANCE WITH SEZ OFFICERS: 

Arranging necessary customs clearance for import of goods

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Arranging ARE-1 Endorsement from SEZ officers

WE PROVIDE YOU WITH THE FOLLOWING EXIM SEERVICES: 

Obtain NEW IEC from JDGFT

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Branch inclusion in existing IEC with JDGFT

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Modification of IEC

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Obtained new Metrological Certificate from Authority

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EPCG License 13

CHAPTER II REVIEW OF LITERATURE 2.1 THEORTICAL REVIEW 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 to narrow the problem Thomas A. Cook (1994)1 says, “One of the major pitfalls in an international sale is the quality of the documentation supporting the transaction. A mistake in spelling, execution, language or number of copies will cause substantial delays in obtaining clearance and require additional expenditures to complete the process.” Many potential exporters shy away from exporting due to the fear of the potential Headaches caused by export documentation. In reality, while the process is complicated And has a steep learning curve, with the right approach and support from several resources the process can be simplified and the inherent obstacles lifted. Most of the necessary documents required for an export transaction are the invoice, packing list, export declaration and the bill of lading. Other documents that may be required include: payment instruments (letters of credit, sight drafts), health/sanitary certificates, certificates of origin, export/import licenses, SGS inspection certificates, carnets (customs passes), certificates of insurance and required import documents. In addition to knowing the specific documents, the exporter will need to know language, the number of copies, required signatories, format, notarization, consularization, and the shipping instructions.” Laurel Delaney (2006), describes AES Direct, a free online process for filing Shipper's Export Declarations. AES stands for Automated Export System. Here are some highlights: 14

1. Ensures export compliance - It returns a confirmation number to verify that you successfully Filed your export documentation. 2. Corrects errors - Get immediate feedback when data is omitted or incorrect, and correct errors At any time 3. Eliminates paper review - Eliminates time delays of handling paper. 4. stays up-to-date with trade agreements - AES conforms to NAFTA and GATT, making it Easier to do business in multiple countries. 5. Evaluates and measures potential markets - Provides accurate and timely export statistics. Koch and John (2007) say the subsequent need is to reduce the risk of loss to the small business Exporter if and when their foreign customer does not pay the exporter's sales invoice. Again, there are solutions to mitigate these risks of loss, which result from two sets of risk of loss event perils: 1. Foreign "Commercial" Risk of Loss Events This event occurs in the foreign client's inability or failure to pay invoices due to Bankruptcy/Insolvency, Slow-Pay Behaviour (Protracted Default) , Devaluation of Foreign Currency 2. Foreign 'Political' Risk of Loss Events This event occurs when a foreign country's regulations and statutes allow Confiscation of Goods, Suspension of Import Licenses, War, Civil Strife, Rebellion, Currency Inconvertibility Sales made under irrevocable letters of credit (LCs) are a traditional tool used to mitigate risk of loss. An LC places the U.S. exporter's bank and their foreign customer's bank inside the trade 15

transaction, reducing the risk of loss to both parties for failure of either one to live up to the export sales/purchase contract. The exporter's commercial bank will assist with the LCs if the bank provides international banking services, or if the bank uses another correspondent bank that maintains an international banking department. There are some drawbacks to LCs. Not all foreign buyers can pay under an LC because of the high fees, often 2-3% of shipment value. An LC requires a credit relationship between the foreign importer and its bank, which might divert precious working capital from the foreign buyer's other local credit needs.

The Container Revolution: 50 years of Industry Change By P. Jaime Tetrault (Jaime-Tetrault) After a frustrating experience in 1937 having to wait an entire day for his truckload of cotton to be loaded onto a boat bound for Istanbul, a seed was planted for Malcolm McLean – a seed that became the modern marine container that is ubiquitous today! McLean is today credited with implementing the standard container in 1956, which could be lifted up and placed on a ship from a truck – saving time and money. In the decades since, the shipping industry has encountered periods of change as shipping continued to expand and the relative distance between countries continued to shrink. However, one thing has stayed the same – formal sizes of containers, which were established by the International Standards Committee in 1961: the twenty-foot equivalent unit (TEU = 20' length x 8' width x 8.5' height) and the forty-foot equivalent unit (FEU = 40' x 8' x 8.5'). TEU and FEU are often considered the defining capacity unit for all container ships today instead of Dead Weight Tonnage (DWT). The current generation of containerships has pushed the limits of ship design and harbor capabilities. Similar to the super-tankers of the 1970s, containerships are now exceeding original expectations. Containerization and intermodalism have radically altered the movement of cargo. Today's merchant fleet worldwide consists of 3,375 containerships with a capacity of 7.2 million TEUs. Caterpillar is currently supplying engines to Maersk Lines vessels being built today that are capable of carrying up to 10,000 TEUs. 16

Their impact on the world's trade is significant. In 1983 the total US foreign ocean-borne commerce was 694.4 million metric tons; ten years later, this had increased to 884.4. Ten years after that, it had magnified to 1,167.9 million metric tons, nearly doubling in just twenty years. Growth of this magnitude is only possible through the use of containers. "Containerization has allowed businesses around the world to link up in a smooth, very efficient way of transporting goods,” said Chris Koch, president of the World Shipping Council, a Washington trade association representing container ship operators. "Before McLean, the cost of transportation would be prohibitive for many commodities." Without McLean‟s innovative transportation ideas, we would never be able to grow the shipping industry. So as the global economy rebounds, I wonder what the next trend in the shipping industry will be. Of course, Caterpillar Marine Power Systems is there for propulsion and auxiliary power as ships get larger and larger. However, I wonder where the next momentous idea will come from – could it be you? What trends are you seeing in your part of the world? Who knows – you could be the next Malcolm McLean, quietly revolutionizing the world around you PROCEDURE FOR IMPORT AND EXPORT Export Procedure For clearance of export goods, the exporter or his agents have to undertake the following formalities:Registration PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export goods.

which export proceeds are expected to be realized) and open a current account in the designated bank for credit of any drawback incentive.

they are required to be registered into the Customs System.

licences/DEEC book etc., registered at the Customs Station.

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Processing of Shipping Bill In case of export by sea or air, the exporter must submit the 'Shipping Bill', and in case of export by road he must submit 'Bill of Export' in the prescribed form containing the prescribed details such as the name of the exporter, consignee, invoice number, details of packing, description of goods, quantity, FOB value, etc. Along with the Shipping Bill, other documents such as copy of packing list, invoices, export contract, letter of credit, etc. are also to be submitted Export procedure In India, ships transport more than 90 percent of the cargo.it therefore interesting to study the export processed by ship documentation related to it.

Processing of an export order

Exporter operation starts with the receipt of enquiry by the exporter from importer,bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc. After the process negotiations importer sends a purchase to the follow by letter of credit (if applicable) The exporter manufactures the goods according to the specification given in purchase order As soon as the goods are ready the exports invites the representative of export inspections agency (via) for pre shipment inspection and obtain the certificate of inspection After that, the exporter prepared following documents: Invoice Packing list ARE 1 from excise department Marine insurance policy

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Copy of purchase order /L/C Above those documentation sends to cha by exporter. Based on these documents CHA agent completes the other formalities, obtain port permit and prepare shipping bill which is a customs documents. Custom department check the export cargo on the basis of information provided on the shipping bill, it satisfy then cargo allow loading on the board of ship. The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtain the bill of lading B/L from shipping line B/L is a proof of dispatch of cargo and also a negotiable document.

After that. CHA agent send various documents back to exporter which is – Customs attested invoice Copy of shipping bill Full set of non-board bill of lading Copy of purchase order or L/C Copies of ARE1 form Sdf form After that the exporter submitted above these documents for negotiation to the bank which include Commercial invoice Packing list Sdf form Original copy of purchase order Certificate of origin Bill of exchange Shipment advice After, that bank scrutinizes these documents and if found correct make payment to exporter against documentations.

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Export invoice Element of export invoice:Exporter Consignee Invoice no. and date Exporter ref. Buyer order no and date other reference Buyer Country of origin of goods Country of final destination Terms of delivery and payment Pre –carriage by Place of receipt by pre-carrier Vessel/flight no Port of loading Port destination Marks and Nos./No & kind of pkgs Item code Description of goods Net weight Gross weight Quantity Rate cif euro Amount CIF EURO 20

Amount in words Declaration: Authorized signature

Steps involved in export transaction: Step1 In the case of first time exporters-importers, they need to apply to the director general of foreign trade(DGFT) regional office for getting importer-exporter code (IEC) number Step 2 The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government .they need to get registered with sales tax office. And even export credit guarantee corporation. Step 3 The exporter can now go in for procuring orders, by first sending a sample, if required .the importer sends a purchase order once both exporter and importer have agreed upon the terms and conditions of the consumers of the contract like pricing, documents, freight charges, currency etc. Step 4 With export order in hand. the exporter starts manufacturing goods or buying them from other manufacturers. Step 5 The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the goods from inspector of quality control. Step 6 Exportable are then dispatched to ports/airports for transit. Step7 The export firm has to apply to an insurance company for marine/air insurance cover.(the exporter asks the importer to take marine/air insurance under cost and freight, free on board etc., terms of contract.) 21

Step 8 The exporter contracts the clearing and forwarding agent (c&f) for storing the goods in warehouse. A document called shipping bill, required for allowing shipment by customs authority is presented by the forwarding agent.

Step 9 Once the goods are loaded into the ship‟s receipt called mate`s receipt` is issued by the captain to the ship superintendent of the port. Step 10 The superintendent calculates port charges and handover to the exporter/ c&f agent. Step 11 After making the port payments, the c&f agent or exporter gets the bills of lading or airway bill from the official of the shipping company or the airline Step 12 After making the port payments, the C&F agent or exporter gets the bills of lading or airway ,bill from the official agent of the shipping company or the airline. Step 13 The exporter sends a set of documents to the importers, stating the date of shipment, name of vessel etc. Step 14 Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes these documents against the original letter of credit/purchase order. Step 15 The exporter‟s bank sends these documents to the importer s bank which should make the payment on or before the due date. There are 5 types of shipping bills:Shipping Bill for export of duty free goods. This shipping bill is white colored.

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Shipping bill for export of goods under claim for duty drawback. This shipping bill is green colored. Shipping bill for export of duty free goods ex-bond i.e. from bonded warehouse. This shipping bill is pink colour. Shipping Bill for export of dutiable goods. This shipping bill is yellow colored. Shipping bill for export under DEPB scheme. This shipping bill is blue in colour.

The Bills of Export are:Bill of export for goods under claim for duty drawback Bill of export for dutiable goods Bill of export for duty free goods Bill of export for duty free goods ex-bond Let Export Order After the receipt of the goods in the dock, the exporter may contact the Customs Officer designated for the purpose and present the checklist with the endorsement of Port Authority and other declarations along with all original documents. Customs Officer may verify the quantity of the goods actually received and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock Appraiser, who may assign a customs officer for the examination of the goods. If the Dock Appraiser is satisfied that the particulars entered in the system conform to the description given in the original documents, he may proceed to allow "let export" for the shipment.

IMPORT PROCEDURES For clearance of import goods, the importer or his agents have to undertake the following formalities:Bill of Entry It is a document certifying that the goods of specified description and value are entering into the country from abroad. If the goods are cleared through the (Electronic Data Interchange) EDI system no formal Bill of Entry is filed as it is generated in the computer system, but the importer is required to file a cargo 23

declaration having prescribed particulars required for processing of the entry for customs clearance. The Bill of entry, where filed, is to be submitted in a set, different copies meant for different purposes and also given different colour schemes. Bill of Entry are of three types :Bill of Entry for home consumption: is to be submitted when the imported goods are to be cleared on payment of full duty for consumption of the goods in India. It is white colored. Bill of Entry for Warehouses: is to be submitted when the imported goods are not required immediately by the importer but here they are to be stored in a warehouse without payment of duty under a bond and cleared later when required on payment of duty.

Bill of Entry for Ex-Bond Clearance: is used for clearing goods from the warehouse on payment of duty. The goods are classified and valued at the time of clearance from the Customs Port. Value and classification are not determined on such Bill of Entry. In the non-EDI system along with the bill of entry filed by the importer or his representative the following documents are also generally required:•

Signed invoice

•

Packing list

•

Bill of Lading or Delivery Order/Airway Bill

•

GATT declaration form duly filled in

•

Importers declaration

•

License wherever necessary

•

Letter of Credit/Bank Draft/wherever necessary

•

Insurance document

•

Import license

•

Industrial License, if required

•

Test report in case of chemicals

•

Adhoc exemption order

•

DEEC Book/DEPB in original

24

•

Catalogue, technical write up, literature in case of machineries, spares or chemicals as may be applicable

•

Separately split up value of spares, components machineries

•

Certificate of Origin, if preferential rate of duty is claimed

•

No Commission declaration

Green Channel facility Some major importers have been given the green channel clearance facility. It means clearance of goods is done without routine examination of the goods. They have to make a declaration in the declaration form at the time of filing of bill of entry. The appraisement is done as per normal procedure except that there would be no physical examination of the goods. Only marks and number are to be checked in such cases. However, in rare cases, if there are specific doubts regarding description or quantity of the goods, physical examination may be ordered. Export – import documentation Performa invoice: Performa invoice, as the name suggests is a proforma of the invoice. it is prepared by an exporter and sent to the importer for necessary acceptance. it suggests to a buyer what the actual invoice would like and is sent to him when he is ready to purchase the goods. Packing list This statement gives the packing details of goods in a prescribed format.it is a very useful document for customs at the time of examination and for warehouse keeper of the buyer to maintain a record of inventory and to effect delivery. Commercial invoice An invoice is very important as if contains the name of the exporter, importer and the description of goods. it has to be signed by the exporter. Other documents are prepared by deriving information from the invoice. it is required to be presented before authorities for different purposes. Shipping bill/bill of entry It is a requisite for seeking the permission of customs to export goods. it contains a description of export goods by sea /air.it contains a description of goods, number and kind of packages, shipping marks, and number ,value of goods, the name of the vessel, the country of destination .etc. On the other hand, importers have to submit copies of document called bill of entry for customs clearance. Later, a copy has to be given to the bank for verification. 25

ARE 1 This form is an application for the removal of excisable goods from the factory premises for export purposes, the ARE -1 form has multiple copies which are distributed to different authorities, including customs, range office of excise, refund office of excise, etc. Exchange declaration form (GR/SDF FORM) The RBI has prescribed has prescribed a GR form (SDF), a PP form, and SOFTEX forms to declare the export transactions. The GR form contains:

will be realized.

value, giving break up of fob, freight, insurance, discount, and commission, etc.

26

CHAPTER III RESEARCH METHODOLOGY Research Methodology is the process used to collect information and data for the purpose of making decisions. The methodology may include publication research, interviews, surveys and other research techniques and could include both present and historical information. Research Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It comprises the theoretical analysis of the body of methods and principles associated with a branch of knowledge. 3.1 RESEARCH DESIGN •

The research design is the specification of the method and procedure for acquiring the information needed to solve the problem

•

The research design followed for this research study is descriptive research design, where we find a solution to an existing problem. The problem of the study is to find out the export/import and documentation procedure and its clearance of the INDEV logistics

The descriptive research is used to depict the present state of affairs of the business condition. 3.2 STATEMENT OF THE PROBLEM This research is based on to know the problems faced and improve the service and quality level in INDEV logistics , like freight forwarding , documentation , warehousing etc, timely delivery of the cargo , customer requirement and timely delivery of the goods and documents to customers. Each and every forwarding company analysis the process in order to reduce time taken to complete the consignment to attract the customer and to sustain the customer.in freight forwarding company also calculate the time taken to complete the consignment.

27

3.3 NEED OF THE STUDY  To know whether the consignment cleared and delivered on time to the customer  To know the procedure for export/import of goods  To know the export/import customs clearance procedure  To improve the service and quality level of the company  To find which out activities getting delayed during export/import  To find out the total the total volume of export/import of the customers  To find out the problems faced by the company and sort out the problem 3.4 SCOPE OF THE STUDY  Identify the needs of stevedoring in shipping and importance of cargo handling while loading and unloading.  Identify the precaution to handle while handling the cargo by following the precaution that mentioned the act and how the accident we can reduce.  Suggest that the nature of the cargo and reducing the damage which causes by cargo. Identify the importance of equipment‟s and labour to handle the cargo. 3.5 OBJECTIVE OF THE STUDY 3.5.1 Primary Objective: To study the effectiveness in import and export procedure at INDEV logistics. 3.5.2 Secondary Objectives: •

To know what are the documents required for import and export.

•

To know whether the consignment cleared and delivered on time to the customers.

•

To study the opinions about the documents being safely carried by the staff members in INDEV logistics

28

•

To find out which activities getting delayed during export/import.

•

To provide suitable suggestions to improve the import and export procedure at INDEV logistics.

3.6 RESEARCH DESIGN •

The research design is the specification of the method and procedure for acquiring the information needed to solve the problem

•

The research design followed for this research study is descriptive research design, where we find a solution to an existing problem. The problem of the study is to find out the export/import and documentation procedure and its clearance of the INDEV logistics

•

The descriptive research is used to depict the present state of affairs of the business condition.

3.7 METHOD OF DATA COLLECTION The data needed for the research study were collected by two sources primary data and secondary data. 3.7.1 Primary Data The first data is to gather information from the INDEV logistics. This was done by visiting the INDEV logistics. Then a questionnaire was prepared was to gather data from the sample population.

3.7.2 Secondary Data Sources of secondary data include journals, websites, etc. all this helped in authenticating the kind of information obtained from our primary sources and thus helped to get a very objective view of the study. 3.8 Sample size Sample size=163 samples totally, 81 samples from exports and also 82 samples from imports.

29

3.9 SAMPLING METHOD 3.9.1 Random Sampling(lottery method) Random sampling method has been used because the selection of units from the population has been done based easy availability or accessibility.

3.10 LIMITATION OF THE STUDY  The studies were restricted to collect the information as they were busy by shipment.  The time period of the study was restricted to 120 days  The perceptual differences in the minds of the distributors and their bias are a big limitation which affects the final outcome of the study.  Customs and its operations are subjected to vigilant monitoring and control due to security reasons, it is not possible to understand all the aspects involved in export/import process.

30

CHAPTER

IV

DATA ANALYSIS AND INTERPRETATION 4.1 SIMPLE PERCENTAGE ANALYSIS TABLE - 4.1 AGE GROUP AGE

NO

PERCENTAGE

Below 20

14

14

20-30

32

32

30-40

50

50

Above 40

4

4

TOTAL

100

100 CHART - 4.1 AGE GROUP

Age Group 50 40 30 20 10 0 Below 20

20-30

30-40

31

Above 40

INFERENCE From the table it is inferred that 14% of employees are below 20. 32% of employees are 20-30. 50% of employees are 30-40. 4% of employees are above 40.

TABLE 4.2 DESIGNATION

DESIGNATION

NO OF RESPONDENTS

PERCENTAGE

Manager

2

2

Assistant manager

2

2

Senior executive

36

36

Executive

32

32

Others

28

28

TOTAL

100

100

32

CHART 4.2 DESIGNATION

Designation 40 35 30 25 20 15 10 5 0 Manager

Assistant manager

Senior excutive

Executive

Others

INFERENCE From the table it is inferred that 2% are managers, 2% are assistant managers, 36% are senior executives, 32% are executives, 28% are others.

33

TABLE 4.3 EDUCATIONAL QUALIFICATION

EDUCATIONAL QUALIFICATION

NO OF RESPONDENT

PERCENTAGE

PG

16

16

UG

32

32

DIPLOMA

24

24

HSC

18

18

Others

10

10

Total

100

100

CHART 4.3 EDUCATIONAL QUALIFICATION

Educational Qualification 35 30 25 20 15 10 5 0 PG

UG

DIPLOMA

34

HSC

Others

INFERENCE From the table it is inferred that 16% of employees are selected PG. 32% of employees is UG. 24% of employees are selected diploma. 18% of employees are selected HSC. 10% of employees are selected others. TABLE 4.4 EXPERIENCE IN INDEV LOGISTICS

OPTION

NO OF RESPONDENT

PERCENTAGE

Below 5

18

18

5-10

66

66

Above 10

16

16

Total

100

100

CHART4.4 EXPERIENCE IN INDEV LOGISTICS

Experience in INDEV LOGISTICS

Above 10 16%

5 To 10 years 66%

35

Below 5 18%

INFERENCE From the table it is inferred that 18% of employees are in Below 5 experience in INDEV logistics. 66% of employees are 5-10 years‟ experience in INDEV logistics. 16% of employees are above 10 experiences in INDEV logistics.

TABLE4.5 SALARY

OPTION

NO OF RESPONDENT

PERCENTAGE

BELOW 5000

6

6

5000-10000

24

24

10000-15000

54

54

Above 15000

16

16

Total

100

100

36

CHART 4.5 SALARY

Salary Below 5000 Above 15000 6% 16% 5000-10000 24%

10000-15000 54%

INFERENCE From the table it is inferred that 6% of employee salaries are in below 5000. 24% of employee salaries are in 5000-10000. 54% of employee salaries are in 10000-15000. 16% of employee salaries are in above 15000.

37

TABLE 4.6 THE DOCUMENTS ARE BEING CARRIED BY THE STAFF WITH SAFETY

OPTION

NO OF RESPONDENT

PERCENTAGE

Excellent

18

18

Good

54

54

Average

20

20

poor

6

6

Very poor

2

2

Total

100

100

CHART 4.6 THE DOCUMENTS ARE BEING CARRIED BY THE STAFF WITH SAFETY

The Documents are being carried by the Staff with safely 60 50 40 30 20 10 0 Excellent

Good

Avarage

38

Poor

Very Poor

INFERENCE From this table 18% respondents said excellent is the documents are being carried by safety. 54%respondents said good is the documents are being carried by safety. 20% respondents said average is the documents are being carried by safety. 6% respondents said poor is the documents are being carried by safety. 2% respondents said very poor is the documents are being carried by safety.

TABLE 4.7 THE COMPANY HAS A SEPARATE DEPARTMENT THAT DEALS WITH ALL THE WORKS OPTION

NO OF RESPONDENT

PERCENTAGE

Excellent

12

12

Good

52

52

Average

24

24

poor

10

10

Very poor

2

2

Total

100

100

39

CHART - 4.7 THE COMPANY HAS A SEPARATE DEPARTMENT THAT DEALS WITH ALL THE WORKS

The company has a separate department that deals with all the works 60 50 40 30 20 10 0 Excellent

Good

Average

Poor

Very Poor

INFERENCE From this table 12% respondents said excellent is the documents are being carried by safety. 52%respondents said good is the documents are being carried by safety. 24% respondents said average is the documents are being carried by safety. 10% respondents said poor is the documents are being carried by safety. 2% respondents said very poor is the documents are being carried by safety.

40

TABLE 4.8

WORK EXPERIENCE IN LOGISTICS FIELD

OPTION

NO OF RESPONDENT

PERCENTAGE

0-5

16

16

5-10

68

68

Above 10

16

16

Total

100

100

CHART 4.8 WORK EXPERIENCE IN LOGISTICS FIELD

Work Experience in Logistcs Field 80 70 60 50 40 30 20 10 0 0-5

5-10 years

Above 10

INFERENCE From this table 16% respondents said 0-5 years having work experience in logistics field. 68% respondents said 5-10 years having work experience in logistics field.16% above respondents said 10 years above having work experience in logistics field.

41

TABLE 4.9

TYPE OF CARGO HANDLE

OPTION

NO OF RESPONDENT

PERCENTAGE

Bulk

30

30

Break bulk

44

44

containerized

26

26

Total

100

100

CHART 4.9 TYPES OF CARGO HANDLE

Type of Cargo Handle 50 40 30 20 10 0 Bulk

Break Bulk

Containerized

INFERENCE From the table it is inferred that 30% of employees are said handling in bulk cargo. 44% of employees are said handling in break bulk cargo. 26% of employees are said handling in containerized cargo. 42

TABLE 4.10 MODE COMMUNICATION

OPTION

NO OF RESPONDENT

PERCENTAGE

Mail

34

34

Phone

44

44

verbal

22

22

Total

100

100

CHART 4.10 MODES OF COMMUNICATION

Modes of Communication 50 40 30 20 10 0 Mail

Phone

Vervble

INFERENCE From the table it is inferred that 34% of employees are said communication through mail. 44% of employees are said communication through phone. 22% of employees are said communication through verbal. 43

TABLE 4.11

ACTIVITIES GETTING DELAYED DURING EXPORT/IMPORT

OPTION

NO OF RESPONDENT

PERCENTAGE

Documentation

42

42

Customs clearance

42

42

Transportation

16

16

Total

100

100

CHART 4.11 ACTIVITIES GETTING DELAYED DURING EXPORT/IMPORT

Activities getting delayed during export/import Transportation 16%

Documentation 42% Customs clearance 42%

INFERENCE From this table 42% respondents said documentation activities getting delayed during export/import. 42% respondents said customs clearance activities getting delayed during

44

export/import. 16% respondents said transportation activities getting delayed during export/import.

TABLE 4.12

VOLUME DO YOU IMPORT LAST YEAR

OPTION

NO OF RESPONDENT

PERCENTAGE

<100TEU

18

18

100-200 TEU

46

46

200-300 TEU

18

18

ABOVE 300 TEU

8

8

Total

100

100

CHART 4.12

VOLUME DO YOU IMPORT LAST YEAR

Volume do you import last year 50 45 40 35 30 25 20 15 10 5 0 <100 TEU

100-200 TEU

200-300 TEU

45

Above 300 TEU

INFERENCE From this table 18% respondents said <100 TEU volume import last year. 46% respondents said 100-200 TEU volume import last year. 18% respondents said 200-300 TEU volume import last year. 8% respondents said above 300 TEU volume import last year.

TABLE 4.13

VOLUME DID YOU EXPORT LAST YEAR

OPTION

NO OF RESPONDENT

PERCENTAGE

<100TEU

28

28

100-200 TEU

38

38

200-300 TEU

30

30

ABOVE 300 TEU

4

4

Total

100

100

46

CHART 4.13

VOLUME DO YOU EXPORT LAST YEAR

Volume do you export last year 40 35 30 25 20 15 10 5 0 <100 TEU

100-200 TEU

200-300 TEU

Above 300 TEU

INFERENCE From this table 28% respondents said <100 TEU volume export last year. 38% respondents said 100-200 TEU volume export last year 30% respondents said 200-300 TEU volume export last year. 4% respondents said above 300 TEU volume export last year.

47

TABLE 4.14

THE MATERIAL HAS BEEN DELIVERED ON TIME TO THE CUSTOMER OPTION

NO OF RESPONDENT

PERCENTAGE

Excellent

18

18

Good

44

44

Average

28

28

poor

8

8

Very poor

2

2

Total

100

100

CHART 4.14

THE MATERIAL HAS BEEN DELIVERED ON TIME TO THE CUSTOMER

The material has been delivered on the time to the customer 50 40 30 20 10 0 Excellent

Good

Average

48

Poor

Very Poor

INFERENCE From this table 18% respondents said excellent the material has been delivered on time to the customer. 44% respondents said good the material has been delivered on time to the customer. 28% respondents said average the material has been delivered on time to the customer. 8% respondents said poor the material has been delivered on time to the customer. 2% respondents said very poor the material has been delivered on time to the customer.

TABLE 4.15

TYPE OF WORKS DO YOU FEEL DIFFICULTY

OPTION

NO OF RESPONDENT

PERCENTAGE

Documentation

24

24

Customs clearance

46

46

Bill filling

30

30

Total

100

100

49

CHART 4.15

TYPE OF WORKS DO YOU FEEL DIFFICULTY

Type of works do you feel difficulty 50 45 40 35 30 25 20 15 10 5 0 Documentation

Customs clearance

Bill FILLING

INFERENCE From this table 24% respondents said documentation type of works feel difficulty. 46% respondents said customs clearance type of works feel difficulty. 30% respondents said transportation type of works feel difficulty.

TABLE 4.16 TYPE OF CONTAINER SHIPMENT IS MORE PROFITABLE

OPTION

NO OF RESPONDENT

PERCENTAGE

LCL

24

24

20 FEET

48

48

40 FEET

28

28

Total

100

100

50

CHART 4.16 TYPE OF CONTAINER SHIPMENT IS MORE PROFITABLE

Type of container shipment is more profitable 60 50 40 30 20 10 0 LCL

20 Feet

40 Feet

INFERENCE From this table 24% respondents said LCL type of container shipment is more profitable. 48% respondents said 20FEET type of container shipment is more profitable. 28% respondents said 40 FEET type of container shipment is more profitable. TABLE 4.17 TYPE OF SERVICES DID MOSTLY AT LAST YEAR

OPTION

NO OF RESPONDENT

PERCENTAGE

EXPORT

26

26

IMPORT

38

38

BOTH

36

36

Total

100

100

51

CHART - 4.17 TYPE OF SERVICES DID MOSTLY AT LAST YEAR

Type of services did mostly at last year

Export 26%

Both 36%

Import 38%

INFERENCE From this table 26% respondents said export type of services did mostly at last year. 38% respondents said import type of services did mostly at last year. 36% respondents said both type of services did mostly at last year.

TABLE 4.18 TYPES OF SERVICES GET MORE PROFITABLE AT LAST YEAR

OPTION

NO OF RESPONDENT

PERCENTAGE

EXPORT

28

28

IMPORT

44

44

BOTH

28

28

Total

100

100

52

CHART 4.18 TYPES OF SERVICES GET MORE PROFITABLE AT LAST YEAR

Type of service get more profitable at last year 50 40 30 20 10 0 Export

Import

Both

INFERENCE From this table 28% respondents said export types of services get more profitable at last year. 44% respondents said import types of services get more profitable at last year. 28% respondents said both types of services get more profitable at last year

53

TABLE 4.19 ITEM YOU EXPORT/IMPORT THE MOST

OPTION

NO OF RESPONDENT

PERCENTAGE

Food

20

20

Garments

20

20

Telecom parts

32

32

Others

28

28

Total

100

100

CHART 4.19 ITEM YOU EXPORT/IMPORT THE MOST

Item you Export/Import the most 35 30 25 20 15 10 5 0 Food

Garments

Telecom parts

Others

INFERENCE From this table 20% respondents said food & textiles item export/import the most. 32% respondents said telecommunication item export/import the most. 28% respondents said others item export/import the most. 54

4.2 STATITICAL ANALYSIS

WEIGHTED AVERAGE METHOD NO-1 TABLE NO 4.20 THE DOCUMENTS ARE BEING CARRIED BY THE STAFF WITH SAFETY

OPTIONS

NO.OF RESPONDENTS

WEIGHT (W)

WEIGHTED MEAN (WX)

EXCELLENT

18

5

90

GOOD

54

4

216

AVERAGE

20

3

60

POOR

6

2

12

VERY POOR

2

1

2

TOTAL

100

380

Weighted average method

∑ WX XW = ∑W 380 = 100 = 3.8 (Average =4) RESULT:This shows that most of respondents have said that the documents are being carried by the staff with safety “WITH GOOD”

55

WEIGHTED AVERAGE METHOD-2 TABLE NO 4.21 VOLUME DO YOU IMPORT LAST YEAR

OPTION

NO. OF RESPONDENTS

WEIGHT (W)

WEIGHT MEAN(WX)

<100TEU

18

4

72

100-200 TEU

46

3

138

200-300 TEU

18

2

36

ABOVE 300 TEU

8

1

8

Total

100

-

254

Weighted average method

∑ WX XW = ∑W 254 = 100 = 2.54 (Average =3) RESULT:This shows that most of respondents have said that the volume import last year “100-200 TEU”

56

WEIGHTED AVERAGE METHOD-3 TABLE NO 4.22 TYPE OF CONTAINER SHIPMENT IS MORE PROFITABLE

OPTION

NO.OF RESPONDENTS

WEIGHTED(W) WEIGHTED MEAN (WX)

LCL

24

3

72

20 FEET

48

2

96

40 FEET

28

1

28

TOTAL

100

196

-

Weighted average method

∑ WX XW = ∑W 196 = 100 = 1.96 (Average =2)

RESULT:This shows that most of respondents have said “20 feet” type of container shipment is more profitable 57

TABLE NO 4.23 CHI-SQUARE TEST

28

38

30

4

1. Null hypothesis: there is no significance difference between volumes of exporting years. 2. Alternative hypothesis: there is significance between the satisfaction levels. 28

38s

66

30

4

34

58

42

100

O 28 38 30 04

E=R.T*C.T/G.T 66x58/100=38.28 66x42/100=27.72 34x58/100=19.72 34x42/100=14.28

[O-E] -10.28 10.28 10.28 -10.28

X= [O-E]2/E Calculated value = 19.31 Degree of freedom: V = [r-1][c-1] V = [2-1][2-1] V=1

Table value= 3.84(constant value) Calculated value < Table value 58

[O-E]2 105.67 105.67 105.67 105.67

[O-E]2/E 2.76 3.81 5.35 7.39 19.31

It is a significant So alternative hypothesis is accepted

TABLE NO 4.24 CHI-SQUARE TEST

20

20

32

28

3. Null hypothesis : there is no significance difference between the export and import. 4. Alternative hypothesis: there is significance between the satisfaction level. 20

20

40

32

28

60

52

48

100

O 20 20 32 52

E=R.T*C.T/G.T 40x52/100=20.8 40x48/100=19.2 60x52/100=31.2 60x48/100=28.8

[O-E] -0.8 0.8 0.8 -0.8

X= [O-E]2/E Calculated value = 0.105 Degree of freedom: V = [r-1][c-1] V = [2-1][2-1] V=1 59

[O-E]2 0.64 0.64 0.64 0.64

[O-E]2/E 0.030 0.033 0.020 0.022 0.105

Table value= 3.84(constant value) Calculated value < Table value It is a significant So alternative hypothesis is accepted

60

CHAPTER V FINDINGS SUGGESTION AND CONCLUSION 5.1 FINDINGS 

It is observed that 16% respondents said 0-5 years having work experience in logistics field. 68% respondents said 5-10 years having work experience in logistics field.16% above respondents said 10 years above having work experience in logistics field.



It is observed that that 30% of employees are said handling in bulk cargo. 44% of employees are said handling in break bulk cargo. 26% of employees are said handling in containerized cargo.



It is observed that 34% of employees are said communication through mail. 44% of employees are said communication through phone. 22% of employees are said communication through verbal.



It is observed that 42% respondents said documentation activities getting delayed during export/import. 42% respondents said customs clearance activities getting delayed during export/import. 16% respondents said transportation activities getting delayed during export/import.



It is observed that 18% respondents said <100 TEU volume import last year 2016-2017. 46% respondents said 100-200 TEU volume import last year 2016-2017. 18% respondents said 200-300 TEU volume import last year 2016-2017. 8% respondents said above 300 TEU volume import last year 2016-2017.



It is observed that 28% respondents said <100 TEU volume export last year 2016-2017. 38% respondents said 100-200 TEU volume export last year 2016-2017.

30%

respondents said 200-300 TEU volume export last year 2016-2017. 4% respondents said above 300 TEU volume export last year 2016-2017. 

It is observed that 18% respondents said excellent the material has been delivered on time to the customer. 44% respondents said good the material has been delivered on time to the customer. 28% respondents said average the material has been delivered on time to the customer. 8% respondents said poor the material has been delivered on time to the

61

customer. 2% respondents said very poor the material has been delivered on time to the customer. 

It is observed that 24% respondents said documentation type of works feel difficulty. 46% respondents said customs clearance type of works feel difficulty. 30% respondents said transportation type of works feel difficulty.



It is observed that 24% respondents said LCL type of container shipment is more profitable. 48% respondents said 20FEET type of container shipment is more profitable. 28% respondents said 40 FEET type of container shipment is more profitable.



It is observed that 26% respondents said export type of services did mostly at last year 2016-2017. 38% respondents said import type of services did mostly at last year 20162017. 36% respondents said both type of services did mostly at last year 2016-2017.



It is observed that 28% respondents said export types of services get more profitable at last year 2016-2017. 44% respondents said import types of services get more profitable at last year 2016-2017. 28% respondents said both types of services get more profitable at last year 2016-2017.



It is observed that 20% respondents said food & textiles item export/import the most. 32% respondents said telecommunication item export/import the most. 28% respondents said others item export/import the most.

5.2 SUGGESTION 

Company should establish back office for internal support.



Company should focus on the transportation and customs clearance services.



Company should increase marketing executive team.



The communication gap between the customer and INDEV Logistics leads to a problematic issues in customer end.



A separate department person should communicate with every customers of the company to get more shipment.

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5.3 CONCLUSION From the study at INDEV Logistics, I was able to acquire practical knowledge about the functioning of export/import procedure . It also immense help to me in understanding various methods together, how they are properly coordinated to achieve the goals of the company which I had only theoretical knowledge so far. Also the study gave me an idea about the various problems faced by the company and how solutions are arrived at. I am also able to understand the importance of transportation and the follow of information in the right manner within an organization from one department to other and to the customers also. Generally the study helped to fill the gap between theory and practice.

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BIBLIOGRAPHY 

Aitken, Brian, Gordon Hanson and Ann Harrison, 1997, „Spillovers, Foreign Investment and Export Behavior‟, Journal of International Economics.



Bhagwati, Jagdish N, 1990, „Export-promoting Trade Strategy: Issues and Evidence‟, in ExportPromoting Strategies



Boston Consulting Group, 2004, Export Development and Promotion Lessons From FourBenchmark.



Gillespie, Kate and Liesl Riddle, 2004, „Export Promotion Organization Emergence and Development: A Call to Research‟, International Marketing Review,



Richard Kneller, 2007, „Firm Heterogeneity, Exporting and Foreign Direct Investment‟, Economic Journal



Shiv Chaudhry and Steven Batstone, 2001, „An Investigation into the Overseas Expansion of Small Asian-Owned UK Firms‟, Small Business Economics.

WEBSITE REFERENCE 

WWW. INDEV logistics.com

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ANNEXURE QUESTIONNAIRE Dear Sir/Madam, This is MOPIN NAMESH.P doing my MBA specialization in Logistics + Finance at JEPPIAAR ENGINEERING COLLEGE ,CHENNAI. As a part of the Academic requirements of the University, I am doing research on “A Study on Effectiveness of Import & Export

Procedure at INDEV logistics”. So, I request you to spare your valuable time in answering this questionnaire. 1) Name : Age: Below 20

20-30

30 – 40

above 40

2) Designation  Manager

 Assistant manager  Senior executive

 Executive

 Others

3) Education qualification:  PG  UG

 Diploma

 HSC

 Others

4) Experience in INDEV logistics?  Below 5

 5-10



Above10

5) Salary  Below 5000

 5000-1000

10000-15000

 Above15000

6) Opinions about the documents are being safely carried by the staff members in INDEV logistics?  Excellent

 Good

 Average

 Poor

 Very Poor

7) How many years do you have experience in logistics field?  0–5

 5 – 10

 Above 10

8) Does the company have a separate department that deals with all the works? 65

 Excellent  Good

 Average

 Poor

 Very Poor

9) What type of cargo you handle?  Bulk



 containerised

Break bulk

10) Which mode of communication between operation department and clients often happen?  Mail

 Phone

 Verbal

11) Which activities getting delayed during export/import?  Documentation

 Customs Clearance

 Transportation

12) How much volume do you import last year? <100TEU

 100-200TEU

 200 – 300TEU

 Above 300TEU

 200 – 300TEU

 Above 300TEU

13) How much volume do you export last year? <100 TEU

 100-200TEU

14) Opinion about the material has been delivered on time to the customer?  Excellent

 Good

 Average

 Poor

 Very Poor

15) What type of works do you feel difficulty?  Documentation

 Customs Clearance

 Bills Filling

16) What type of container shipment is more profitable?  LCL

 20 FEET

 40 FEET

17) Which type of services did mostly at last year?  Export

 Import

 Both

18) Which types of services get more profitable at last year?  Export

 Import

 Both

19) What is the item you export/import the most?  Food

 Garments

 Telecom Parts

 Others

20) What kind of facilities are you expecting to improve in INDEV logistics regarding export/import and documentation procedure? ____________________________________________________________________

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