Projetc On Export Import

CHAPTER 1

RATIONALE FOR THE STUDY

1

RATIONALE FOR THE STUDY Today’s rapidly changing business environment is creating intense competition among corporations markets are changing faster now than in any other time in history. Product life cycles are shortening and businesses must compete globally. Freight forwarders perform a key role in any trade. The freight forwarder is the architect of the international transport and plays an important role in the growth of the international trade in India by facilitating exporters, shippers, importers, customs/ports authorities etc. The freight forwarding industry will continue to benefit from growth in trade and certain structural advantages over carriers . Value is driven by financial performance is driven strategic position. Strategic position must assessed in a disciplined manner , which examines the discrete and interrelated activities within a forwarder value chain to understand sources of synergy and options to increase value.

The Indian economy is one of the fastest growing in the world, but the boom is not without its stops, starts, and bottlenecks, all of which also make themselves felt in the country’s freight transport sector. In fact, according a recent study by the Confederation of Indian Industry, the country needs US$330bn in infrastructure investment over the next five years to sustain its economy’s growth at 8% annually. Inadequate port facilities, poor road infrastructure and frequent power cuts prevent Indian industries from operating efficiently and expanding sales. India needs to increase its spending on infrastructure projects to 8% of the country’s gross domestic product from 4.6% now. In fact, despite these obstacles, its India Freight Transport Report concludes the country will reach average annual freight traffic growth of 10.2% in the 2007-2011 periods.

2

Strong economic and foreign trade growth is underpinning the freight upturn. In the road freight sector, demand is boosted by door-to-door logistics, the move to higher value/lower bulk shipments, the rising size of the vehicle fleet and the new impetus to improve and extend the network, using private sector highway operators and build-transfer-operate (BOT) schemes. Rail will experience steady but less spectacular growth given the predominance of the state-controlled Indian Railways. All other transport modes should experience faster growth, with international air cargo turnover performing strongly as more private airlines join the market. Sea transport through India’s major ports will also perform well. A major factor over the next few years driving change will be the rising competitive pressures from cargo operators among India’s immediate neighbours and main trading partners. For the 2007-2011 forecast period we expect the transport and communications sector to continue outpacing the economy as a whole. It will achieve average annual growth of 7.7%, versus 7.4% for overall GDP. The total value of transport and communications GDP will rise to US$91.8bn in nominal terms by 2011, representing 7.6% of India’s GDP. India has an ability to improve the freight forwarding due to his better quality of product. We improve the skill development in labour. To huge investment in research and development . We revise the market strategy for the expending for freight forwarding. Government of India provides better facilities for its freight forwarder. Last few years this seek industry of India we improve the technology for the production of better quality of product. I hope India improve its freight forwarding for its policies.

3

CHAPTER 2

OBJECTIVE OF THE STUDY

• TITLE • OBJECTIVE OF THE STUDY • SCOPE

4

TITLE I have chosen my project title ‘MARKET POTENTIAL OF FREIGHT

FORWARDING BUSINESS, because this study gives me a wide exposure of areas like Industry awareness, company, competitions, Market position, customer expectations and market demands in Freight Forwarding.

OBJECTIVE OF THE STUDY ♦ To analyze the market potential for providing the services related with import export to the customers. ♦ To know Import & Export industry very well. ♦ To know the requirement of the customers ♦ To know the Documentation part. ♦ To analyze the current situation of Abhi Impact Logistics ♦ To set up brand image of Abhi Impact Logistics in segmented market. ♦ To know about market movement ♦ To analyze the current services and their application

5

SCOPE The study gives me a wide exposure of areas like Industry awareness, company, competitions, Market position, customer expectations and market demands in Freight Forwarding. •

What are the current trends and their application and also scope of improvement in it?

.

It also gives me a deep understanding of the logistics industry about

both domestic as well as foreign market.

6

CHAPTER 3

COMPANY PROFILE • INTRODUCTION • COMPANY PROFILE •

OUR CORE TEAM

• MISSION • VISION • BASIC KONWLEDGE FOR FREIGHT FORWARDING • CONTAINERS INFORMATION • EXIM PROCESS • CUSTOMERS • OUR SERVICES

7

INTRODUCTION Freight forwarding is a service used by companies that deal in international or multi-national import and export. While the freight forwarder doesn't actually move the freight itself, it acts as an intermediary between the client and various transportation services. Sending products from one international destination to another can involve a multitude of carriers, requirements and legalities. A freight forwarding service handles the considerable logistics of this task for the client, relieving what would otherwise be a formidable burden. Freight forwarding services guarantee that products will get to the proper destination by an agreed upon date, and in good condition. The freight forwarding service utilizes established relationships with carriers of all kinds, from air freighters and trucking companies, to rail freighters and ocean liners. Freight forwarding services negotiate the best possible price to move the product along the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability. Freight forwarding plays an important role in facilitating international trade, fulfilling a number of distinct functions. In basic terms they act on behalf of exporters to buy and manage transportation services. These usually include air or sea freight , as well as land transportation services to move goods from the shipper to the port . Freight forwarding has become an increasingly complex and specialized service in the current context of globalization, tight security regulations and skills shortages.Maintaining a competitive advantage in such an environment requires 8

strategic planning and action, and it’s going to become more challenging as complexity grows.

COMPANY PROFILE-

Abhi Impact Logistics Solutions Private Limited is incorporated under 'The Companies Act, 1956' & is having corporate office in Pune, India. Our logistics services are at the forefront, offering state-of-the-art 3rd party / 4th party logistics solutions to all customers. Abhi Impact Logistics is structured to provide logistics and supply chain solutions to the growing global industry. Our comprehensive solutions comprises of services like Logistics Consultancy, Warehousing, Transportation, Packaging, International Freight Forwarding, Projects and Reverse Logistics. ABHI IMPACT LOGISTICS SOLUTIONS PVT LTD was established in . 7 October 2007.founded by Mr. Jitendra Joshi

9

Our

core

team

TABLE 3.1

Name

Designation Profile

Mr.

CEO

BE Electronics having over 13 years experience in logistics as

Jitendra

Operation head Dynamic Logistics, (Tata Motors, Ford spare part

Joshi

division) Logistics Country head for Vishay Components & Atlas Copco,.

Mr. V.R.

Logistics

BE Mechanical having over 30 years of experience in logistics as

Fadnavis

Consultant

VP TVS logistics, Divisional head Tata Motors, undertaken various projects in many engg. Industries like Tata, Thermax, Greaves, Escorts. Lead speaker for CII/MCCI seminars

Mr. Pankaj CFO

BE Civil having undertaken several infrastructure projects in last 7

Chhajed

years in constructing state of the art Warehouses. Currently looking after the proposed 350,000 Sq.Ft. warehouse in Chakan.

Mr.

GM Operations Logistics expert having over 16 years of experience in defense, 3PL

Balkrishna

& MNCs such as Dynamic Logistics, Vishay Components, Atlas

Gawade

Copco.

Mr. Dhiraj Director

BE Mechanical having done Masters in Logistics from UK.

Chhajed

Handled various projects for Tata Motors & Thermax.

Operations

10

Mission To provide cost effective, efficient and value added services to our esteemed clients and to establish creative impact on their supply chain management.

Vision To be the world class logistics solution providing company to meet growing demands of global industry.

11

Basic Knowledge for Freight forwarding INCOTERMS Inco terms are ICC's standard definitions of trade terms and are internationally recognized as indispensable evidence of the buyer's and seller's responsibilities for delivery under a sales contract.

TABLE

3.2 EXW

SERVICES

Ex Works

FCA Free Carrier

FAS

FOB

Free

Free

Alongside Onboard Ship

Vessel

CFR Cost & Freight

CIF Cost Insurance & Freight

CPT Carriage Paid To

Warehouse Storage

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Warehouse Labor

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Loading Charges

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Inland Freight

Buyer

Seller

Seller

Seller

Seller

Seller

Terminal Charges

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Forwarder’s Fees

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Loading On Vessel

Buyer

Buyer

Buyer

Seller

Seller

Seller

Seller

Ocean/Air Freight

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Charges On Arrival At Destination

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Duty, Taxes & Customs Clearance

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Delivery To Destination

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer/ Seller*1

*1. There are actually two FCA terms:

12

FCA Seller's Premises where the seller is responsible only for loading the goods and not

responsible

for

inland

freight;

and

FCA Named Place (International Carrier) where the seller is responsible for inland freight.

TABLE 3.3 CIP

DAF

Carriage Delivered

DES

DEQ Delivered

Delivered Ex Quay

DDU Delivered

Delivered

Insurance

At

Paid To

Frontier

Warehouse Storage

Seller

Seller

Seller

Seller

Seller

Seller

Warehouse Labor

Seller

Seller

Seller

Seller

Seller

Seller

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Loading Charges

Seller

Seller

Seller

Seller

Seller

Seller

Inland Freight

Seller

Seller

Seller

Seller

Seller

Seller

Terminal Charges

Seller

Seller

Seller

Seller

Seller

Seller

Forwarder’s Fees

Seller

Seller

Seller

Seller

Seller

Seller

Loading On Vessel

Seller

Seller

Seller

Seller

Seller

Seller

Ocean/Air Freight

Seller

Seller

Seller

Seller

Seller

Seller

Charges On Arrival At Destination

Seller

Buyer

Buyer

Seller

Seller

Seller

Duty, Taxes & Customs Clearance

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Delivery To Destination

Buyer

Buyer

Buyer

Buyer

Seller

Seller

SERVICES

The 13 INCOTERMS What are INCOTERMS?

13

Ex Ship

Duty Unpaid

Duty

DDP

Unpaid

Duty Paid

Inco terms are a set of simple three letter codes which represent the different ways international shipments may be organized. They allow sellers and buyers from different cultures and legal systems to decide at what point the ownership and paying for freight, insurance and customs costs transfer from one to the other. Who decides what INCOTERMS mean? The International Chamber of Commerce has set up strict definitions for each incoterm. Choosing a suitable incoterm allows the buyer and seller to negotiate a price best suited to their needs and to be confident that there will be no confusion over who pays the costs. To ensure that the latest version is being used shipping contracts should refer to "INCOTERMS 2000". When should INCOTERMS be used? It is not compulsory to use incoterms. However when things go wrong and disputes arise it is much easier to sort out who is responsible for what if incoterms have been written into the shipping contract. To be safe, incoterms should be decided upon in the negotiation phase of any international purchasing contract. How do INCOTERMS work? Each INCOTERM is a three letter acronym related to where the seller's responsibility ends. They should be written into the purchasing or shipping contracts. Some incoterms require the changeover point to be named. As well as buyer and sellers there are "carriers". They are the people who have a contract to transport the goods by land, sea, air or a combination of modes. A seller will be given a bill of lading, way bill or carrier's receipt, that document can be used to prove that the goods have been taken on by the carrier. There are four groups of INCOTERMS - "E", "F", "C" & "D"

14

Group:E used where the seller does not want to arrange transport. EXW - "Ex-Works" means the seller's only responsibility is to make the goods available at the seller's premises, i.e., the works or factory. The seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears the full costs and risk involved in bringing the goods from there to the desired destination. "Ex works" represents the minimum obligation of the seller.

Group:Fused where the seller can arrange some transport within his/her own country.

FCA - Free Carrier, This term has been designed to meet the requirements of multi-modal transport, such as container or roll-on, roll-off traffic by trailers and ferries. The seller fulfils his/her obligations when the goods are delivered to the custody of the carrier at a named point. If no precise point can be named at the time of the contract of sale, the parties should refer to the place where the carrier should take the goods into its charge. The risk of loss or damage to the goods is transferred from seller to buyer at that time. FAS - Free alongside Ship, requires the seller to deliver the goods alongside the ship on the quay. From that point on, the buyer bears all costs and risks of loss and damage to the goods. F.A.S. requires the buyer to clear the goods for export and pay the cost of loading the goods.

FOB

-

Free

On

Board

vessel,

named

ocean

port

of

shipment.

The goods are placed on board the ship by the seller at a port of shipment named in the 15

sales agreement. The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship's rail (i.e., off the dock and placed on the ship). The seller pays the cost of loading the goods. – Group:Cused where the seller can arrange and pay for most of the freight charges up to the foreign country. CFR

-

(or

C&F)

Cost

and

Freight,

Named

ocean

port

of

destination,

requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility. CIF

-

Cost,

Insurance

and

Freight,

named

ocean

port

of

destination.

This is CFR with the additional requirement that the seller procure transport insurance against the risk of loss or damage to goods. The seller must contract with the insurer and pay the insurance premium. Insurance is generally important in international shipping because transport companies have restricted liability for loss or damage. CPT

-

freight/Carriage

paid

to,

named

place

or

port

of

destination.

This term means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the final carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries. When the seller is required to furnish a bill of lading, way bill, or carrier receipt, the seller duly fulfils its obligation by presenting such a document issued by the person contracted with for carriage to the main destination. CIP - Carriage and Insurance Paid To named place or port of destination. This term (also abbreviated CIP) is the same as "freight/carriage paid to" but with the 16

additional requirement that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium. Group:Dused where the seller can pay for most of the delivery charges to the destination country. DAF - Delivered at Frontier, named place of destination, by land, not unloaded. This term means that the seller's obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract. The term is primarily used when goods are carried by rail or truck. The seller bears the full cost and risk in delivering the goods up to this point, but the buyer must arrange and pay for the goods to clear customs. DES

-

Delivered

Ex-Ship,

named

port

of

destination,

not

unloaded.

This term means the seller makes the goods available to the buyer on board the ship at the destination named in the sales contract. The seller bears the full cost and risk involved in bringing the goods there. The cost of unloading the goods and any customs duties must be paid by the buyer. DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared. This term means the seller has agreed to make the goods available to the buyer on the quay or the wharf at the destination named in the sales contract. The seller bears the full cost and risks in delivering the goods to that point including unloading. There are two variations of ex quay contracts: "ex quay duty paid" and "ex quay duty on buyers account." In the first, the duty is paid by the seller. In the second, the duty also is paid by the seller, but the buyer must reimburse the seller.

17

DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared. This term Delivered duty paid or under these terms, the seller fulfils his obligation to deliver when the goods have been available to the buyer nucleated for import at the point or place of the named destination. The seller bears all costs and risks involved in bringing the goods to the point or place of named destination. There is no obligation for import clearance.

DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared. This term represents the seller's maximum obligation. The term "DDP." is generally followed by words indicating the buyer's premises. It notes that the seller bears all risks and all costs until the goods are delivered. This term can be used irrespective of the mode of transport. If the parties wish to make clear that the seller is not responsible for certain costs, additional word should be added (for example, "delivered duty paid exclusive of VAT and/or taxes").

Figur e 3.1

18

TYPES OF

TYPES O 40' Dry Freight

40' CollapsibleFlat Rack 19

CONTAIN

40 FT. ST

Dimensions:

Length

Overall

TABLE 3.4

40' = 12192 mm Figur e

Internal

TYPES 39' 5.25" = OF 1202 3.2

Door Opening Weights: TABLE

Max. Gross

672003.5 lbs = 3048

Tare

8600 lbs = 3900 20

Max. Payload 20' Dry Freight

58600 lbs = 2658

CON

D im e n sion s: O ve ra ll

L

40' = 12 TABLE 3.6

In te rn a l

3 9 ' 3 .25

D oor O pe n in g 21

Exim Process Approach Client for Exim inquiry Inquiry raised by Client for Import/Export (Sea/Air)

Make Entry in Inquiry Register Request for quote (RFQ) to Suppliers Supplier to quote at best rates with negotiations Prepare Comparison Statement for Quotations received from suppliers

Select the supplier on the basis of Statement Prepare Quote for Client and Submit to the Client Negotiations with Client Approve d

Revision

Approval of Quote from Client

Forward the Customer Confirmation to Operation Team.

TABLE 3.7

22

Received Customer Confirmation from AGM

Get Shippers Contact Details with Order Confirmation / PO from Client and inform the same to supplier and get overseas agent details Give our overseas agents details to Shipper as well as client Get Scan Document from Client / Shipper Get Shipment Pickup Confirmation from Supplier/ Suppliers agent and inform it to client Get Booking status of shipment from Supplier and forward it to client Get Pre-Alert from Supplier and submit it to Client Get suppliers Bill along with CAN (ensure AILSPL name appears) and submit CAN with AISPL Invoice to Client Ensure Supplier files B/E and sends the checklist. Forward it to client for approval. Collect the delivery address details from client & gives to supplier. Upon checklist approval, AILSPL submits the DD details to the client collect the DD and hand it over to supplier.

Follows up with the supplier for customs clearance and delivery.

Collect Octroi amount from the client (if applicable) and follows up with the supplier for confirmation of delivery.

Get set of Bill of Entry/ documents from supplier and forward it to client.

CUSTOMERS23

IMPACT EXPERTISE NETWORK

Figure 3.3

1. Engineering 2. Automotive 3. FMCG 4. Retail 5. Electronics 6. Perishable 7. Jewellary 8. Agricultural 9. Textile 10. Chemicals 11. Petroleum 12. Fertilizers 13. Pharmaceutical 14. Construction 15. Sports 16. Power 17. Information Technology 18. Telecommunication

Our

Major

customers:

Figure 3.4 24

-handle the Warehouse

25

Our servicesServices offered by us♦

International freight forwarding

♦ Warehouse

♦ 3PL &4PL ♦ Custom Clearance ♦ Transportation ♦ Logistics consultancy •

Value added serviceKitting ♦ MIS Reports ♦ Procurement ♦ Sub Assembly ♦ Gas Handling ♦ Shrink wrapping ♦ Order management

26

INTERNATIONAL FREIGHT FORWARDING

 Air Freight Our airfreight services help you to ship your cargo to almost every destination worldwide. Our specialists have many years of experience in the area of air cargo shipments. And with our good connection with major world wire carriers, we are able to offer the best solution to compete with time, safety, cost and space.

Our focus is on prompt and timely delivery of your shipments along with constant communications so that you are in control of your cargo at all times.

 Export Cargo Handling  Import Cargo Handling  Import and Export Cargo Consolidation  Door to Door Services

 Sea freight Through our network of experienced professionals, strong world shipping connections and extreme flexibility, we are able to specifically respond to whatever your shipping needs may be.27

 Warehouse

CHAPTER 4

REVIEW OF LITERATURE

•

INTERNATIONAL FREIGHT FORWARDING

•

FREIGHT FORWARDING

•

CUSTOM CLEARANCE

•

TRANSPORTATION-

•

DOCUMENTS REQUIREMENT FOR AIR / SEA FREIGHT IMPORT

28

INTERNATIONAL FREIGHT FORWARDING INTERNATIONAL FREIGHT FORWARDING

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 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 transshipment. Much of this information is now processed in a paperless environment. The original function of the forwarder, or speedier, was to arrange for the carriage of his customers' good by contracting with various carriers. His responsibilities included advice on all documentation and customs requirements in the country of destination. His correspondent agent in far-away lands looked after his customers' interests and kept him informed about matters that would affect movement of goods. In modern times the forwarder still carries out those same responsibilities for his client. He still operates either with a corresponding agent overseas or with his own company branchoffice. In many instances, the freight forwarder also acts as a carrier for part of a movement it can happen that in a single transaction the forwarder may be acting either as a carrier (principal) or as an agent for his customer On the first day in my company, I came across the knowledge of Export and Import. To understand well about the condition of the current market, the company management decided to have a marketing research for one week. While doing marketing research, initially we collected / gathered the list of industry in and around Pune and started sending them our company profile via e-mail. At the beginning our focus was to reach at B & C cadre customers who are in need of a perfect logistics service provider.

29

We identified the exact need of such customers through our extensive market research and discussions with our internal team. We found that C & D category customers do not get the up to mark and cost effective services from the reputed Logistics companies or reputed freight forwarders. The main reason identified is the volume of their export or import shipment is very less; as a result the giant players in freight forwarding are seems to have less focus on such clients because they generally look for the / interested in the clients who are having huge activities / more volume of export or import shipments. And hence, identifying this exact need of C & D category customers, I have started targeting these customers because of which these customers would be getting the same excellent service level as “A” category customers get from giant freight forwarders and at the same time my company would also be getting a good business. If more number of customers, more number of shipments. Like-wise, I had started focusing on these customers. I met with many clients and by discussing the queries I got to know the requirement of people and what kind of services is required. I was visiting 5-6 clients everyday and giving company presentation about our services. The queries I collected from client about what kind of services they want, got discussed in evening with impact logistics AGM (Assistant General Manager).

After solving the Queries, I tried to tap the client. As I knew the clients requirement or services they want, accordingly I mailed the competitive Quotes to the clients and kept following up with them till I convert them into business. I with my Project Guide was giving the services to existing clients as well as focusing on new customer. To be a good and “go getter” marketing person in International Freight Forwarding / EXIM field, the person should be well versed / aware of the international trade and activities carried out on day to day basis. While marketing / selling of products of International Freight Forwarding / EXIM, any type / kind of queries or questions are expected from a customer. Similarly there are also few customers who are unaware of the activities but they are in urgent need to export or import their product. In such situation, the marketing & sales person must be in a position to provide a proper and fare guidance to the customer. Below are the basic and important knowledge

30

path ways that not only a marketing & sales person but any person in International Trade / Logistics should be aware of.

Freight forwardingA freight forwarder is a third party logistics provider. A third party logistics forwarder dispatches shipments via asset-based carriers and books or otherwise arranges space for those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads. 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 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 transshipment. Much of this information is now processed in a paperless environment. Custom clearanceIt is a procedural activity which is performed by government personnel. The shipment has to clear all the norms of custom clearance. Custom clearance differs from country to country. Tariff classifications, value declaration, and duty management can increase costs. Customs and security initiatives have imposed new regulations on companies that make it more challenging than ever to trade internationally TransportationIt is the movement of people and goods from one location to another. Transport is performed by various modes, such as air, rail, road, water, cable, pipeline and space.

31

Infrastructure consists of the fixed installations necessary for transport, and may be roads, railways, airways, waterways, canals and pipelines, and terminals such as airports, railway stations, bus stations, warehouses and seaports.

Documents requirement for air / sea freight import Documents

TABLE 4.1

No. of copies

P. O.

1

Shipping Instructions

1

Commercial Invoice

2

Packing List / Packing Slip

2

HAWB / HBL

2

M.S.D.S. (in case of D.G. / Non D.G., chemical products)

2

In case of D.G. : to obtain UN class number from shipper and accordingly make the shipment booking with airline / shipping line

1

Documents

No. of copies

HAWB / HBL

1

Commercial Invoice

1

Packing List / Packing Slip

1

Copy of P. O.

1

Original Certificate of Origin

1

Drawing / Product catalogue / Technical write-up

1

M.S.D.S. (in case of D.G. / Non D.G., chemical products)

1

In case of D.G. : UN class number from shipper.

1

32

TABLE 4.2

Documents requirement for export by air - clearance and forwarding Documents

No. of copies

Shipping Instructions

1

Commercial Invoice

5

Packing List / Packing Slip

5

SDF form

2

ARE1 / ARE4, C. Excise gate pass

2

N Form

4

M.S.D.S. (in case of D.G. / Non D.G., chemical products)

2

In case of D.G. : to obtain UN class number from shipper and accordingly make the shipment booking with airline / shipping line

1

TABLE 4.3

Documents requirement for export by sea - FCL (factory stuffing) - clearance and forwarding 2

SDF form 33

ARE1 / ARE4, C. Excise gate pass

4

N Form (if applicable)

2

M.S.D.S. (in case of D.G. / Non D.G., chemical products)

2

C. Excise examination report on back of invoice. (in case of LCL, the same is not required)

5

Packing List / Packing Slip

2

Note : Ensure that customer holds the valid Factory Stuffing Permission for FCL factory stuffed containers Post shipment export documents Original set of Bill of Lading OR sea waybill / AWB (as the case may be)

1

Customs attested Invoice and Packing List

1

Customs attested SDF form

1

Original copy of Shipping Bill

1

Customs attested ARE1 / ARE4

1

EP copy of shipping bill

1

CHAPTER 5

RESEARCH METHODOLOGY 34

• RESEARCH METHODOLOGY • OBJECTIVE` • TYPES OF RESEARCH •

ANALYSIS OF INDIAN TRADE

•

FREIGHT FORWARDING-

•

CUSTOM CLEARANCE-

• SHARE OF INDIA IN WORLD EXPORT • INDIA’S EXPORT DURING LAST 8 YEARS • OBJECTIVE• MARKET RESEARCH • PRIMARY DATA • SECONDARY DATA

Research Methodology Meaning of research

35

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learner’s dictionary of current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Objective` The purpose of research is to discover answers to questions through the application of scientific procedures. Though each research study has its own scientific purpose, we may think of research objectives as falling into a number of following groups: 1. To gain familiarity with a phenomenon or to achieve new insights 2. To portray accurately the characteristics of a particular individual, situation or a group 3. To determine the frequency with which something occurs or with which it is associated with something else.

Types of research  Descriptive research  Analytical research  Applied research  Fundamental research  Quantitative research  Qualitative research

The above mentioned are the various types of research which a researcher can apply in order to achieve one desired objective. Therefore to achieve the objectives of my research I have used descriptive research. 36

This is based on proper research design to meet the objectives of the study.

ANALYSIS OF INDIAN TRADE

A review of India’s foreign trade since the commencement of planning reveals the following important points: 1. Both exports and imports have grown considerably. 2. Except for two years (1972-73) and (1966-77), in all years since 1951 imports were larger than exports. 3. Until about the mid 1980sthe export performance of India was very poor in Comparison with other countries in general; it was very poor even in comparison with several other developing countries. This is clear from the following facts: a)

The share of India in the total world exports fell from about 2 per cent in 1950 to 0.4 per cent in 1980. Since the mid eighties, there has, however, been some improvement. In 2002 it was 0.8 per cent and the target set by the Ministry of Commerce is one per cent by 2007.

b)

India the 13th largest exporter in 1950 but there were 28 countries above India in 2005. This marks a slight improvement over the recent past.

c)

India’s merchandise exports as a percentage of GDP had been stagnating around 5 per cent. Although it has improved since the liberalization, it is still very low (little above 13 per cent) even in comparison with many other developing countries.

SHARE OF INDIA IN WORLD EXPORT

37

TABLE 5.1

Year

Share (%)

1950

2.0

1960

1.2

1970

0.7

1980

0.4

1990

0.5

2000

0.7

2006

1.0

2007

1.0

2008

1.0

4) The terms of trade have, on the whole, been favorable to India, although there was deterioration in a number of years. 5) There has been a very significant change in composition of India’s exports. Manufactured products one account for over three-fourths of the exports as against the dominance of primary commodities in the early period.

6) They have been significant changes in the direction (i.e. the source of imports and destination of exports) of India ‘s foreign trade.

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TABLE 5.2

INDIA’S EXPORT DURING LAST 8 YEARS

Years

Export (in millions)

Growth Rate

2000

44560

21.0

2001

43627

-1.6

2002

52719

20.3

2003

63843

21.1

2004

83563

30.8

2005

103091

23.4

2006

115849

26.29

2007

1241600

28.27

2008

On X-Axis 1cm = Year

39

Figure 5.1 Merchandise export of the country nearly doubled to US$ 124.6 billion in the ending 2007-08 from 63.84$ billion from 2004 an annual compounded growth of 25 per cent compared to 12.73 present in the previous years during 2007-08. ObjectiveOn the first day in my company, I came across the knowledge of Export and Import. To understand well about the condition of the current market, the company management decided to have a marketing research for one week. While doing marketing research, initially we collected / gathered the list of industry in and around Pune and started sending them our company profile via e-mail. At the beginning our focus was to reach at B & C cadre customers who are in need of a perfect logistics service provider. We identified the exact need of such customers through our extensive market research and discussions with our internal team. We found that C & D category customers do not get the up to mark and cost effective services from the reputed Logistics companies or reputed freight forwarders.

40

The main reason identified Is the volume of their export or import shipment is very less; as a result the giant players in freight forwarding are seems to have less focus on such clients because they generally look for the / interested in the clients who are having huge activities / more volume of export or import shipments. And hence, identifying this exact need of C & D category customers, I have started targeting these customers because of which these customers would be getting the same excellent service level as “A” category customers get from giant freight forwarders and at the same time my company would also be getting a good business. If more number of customers, more number of shipments. Like-wise, I had started focusing on these customers. I met with many clients and by discussing the queries I got to know the requirement of people and what kind of services is required. I was visiting 5-6 clients everyday and giving company presentation about our services. The queries I collected from client about what kind of services they want, got discussed in evening with impact logistics AGM (Assistant General Manager).

After solving the Queries, I tried to tap the client. As I knew the clients requirement or services they want, accordingly I mailed the competitive Quotes to the clients and kept following up with them till I convert them into business. I with my Project Guide was giving the services to existing clients as well as focusing on new customer. To be a good and “go getter” marketing person in International Freight Forwarding / EXIM field, the person should be well versed / aware of the international trade and activities carried out on day to day basis. While marketing / selling of products of International Freight Forwarding / EXIM, any type / kind of queries or questions are expected from a customer. Similarly there are also few customers who are unaware of the activities but they are in urgent need to export or import their product. In such situation, the marketing & sales person must be in a position to provide a proper and fare guidance to the customer. Below are the basic and important knowledge path ways that not only a marketing & sales 41

person but any person in International Trade / Logistics should be aware of.

Freight forwardingA freight forwarder is a third party logistics provider. A third party logistics forwarder dispatches shipments via asset-based carriers and books or otherwise arranges space for those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads. 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 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 transshipment. Much of this information is now processed in a paperless environment. Custom clearanceIt is procedural activities which are performed by government personnel. The shipment has to clear all the norms of custom clearance. Custom clearance differs from country to country. Tariff classifications, value declaration, and duty management can increase costs. Customs and security initiatives have imposed new regulations on companies that make it more challenging than ever to trade internationally.

TransportationIt is the movement of people and goods from one location to another. Transport is performed by various modes, such as air, rail, road, water, cable, pipeline and space. Infrastructure consists of the fixed installations necessary for transport, and may be roads, 42

railways, airways, waterways, canals and pipelines, and terminals such as airports, railway stations, bus stations, warehouses and seaports. Market Research I did work for Business Development through Market Research. Firstly I collected data of companies that are producing goods and doing deal in Import and Export. For collection of data I prepare questionnaire of 3rd party, 4th party, warehouse and freight Forwarding. So that I could know that whom are doing work in this segment.

Then I divide market in segments.

Like:- Type A, Type B, and Type C Type A:- For big industries Type B:- For medium industries Type C:- For small industries After this I search the market that where are situated this type of industries around Pune

City. I got the right way to do work in some MIDC area like Chakan, Aundh, Hadapsar, Hinjewadi, & Wagohli, Kothrud Industrial area, Paud road, Mundwa, M.G. road, Peth area, perengut, pashan, solapur road, pune Mumbai road, shivaji nager, ranger hills.

43

Primary Data MIDC in Pune

1. Chakan

2. Hinjewadi 3. Hadapsar

These are the main industrial area where companies have their industrial plant. In this area 40% companies are belonging to the SSI. They basically produce through import some goods like: 1. Agriculture 2. Manufacturing goods from imported chemicals. 3. Handicrafts 4. Handlooms 5. Gems & jewels 6. Leather & Footwear 7. Bio – technology 8. Engineering products 9. Information Technology 10. Ready made products 55% companies have activity of import and export with mostly by sea.

44

Secondary Data Pune Business & Industries – Categories Agriculture (27) Automotive(43) Chemicals(13) Computers(154) Construction(38) Electrical & Electronic(80) Financial Services(41) Industrial Goods(117) Medical & Hospital(16) Plant & Machinery (83) Scientific Instruments (16) Services (23) Tools & Equipment (29) Transportation & Logistics (12)

45

CHAPTER 6

DATA ANALYSIS AND 46

REPRESENTATION

• DATA ANALYSIS AND REPRESENTATION

DATA ANALYSIS AND REPRESENTATION Queuing which industry you are coming under?

TABLE 6.1

There are 6 main MIDC are in pune they follows. 1) Chakan 4)

Hadapsar

2) Bhosari

3) Hingewadi

5) Pirangut & Pashan

6) Pimpri & Chinchwad .

Industries

No of companies

Agriculture

27

Automotive

43

Chemicals

13

Computers & It

154

Construction

38 47

Electronics & Electricals

80

Financial services

41

Industrial goods

117

Medical & hospital

16

Plant & Machinery

83

Scientific instrument

16

Services

23

Tools & equipment

29

Transportation & logistics

12

Figure 6.1

No of companies

48

This particular pie chart is showing that Out of 6 MIDC area in pune diffirent categaries company over there.

Are you doing Import Export activity?

TABLE 6.2

Exim unit

Non Exim unit

55%

45% 49

Figure 6.2 Pie chart showing that 55% company are dealing Export , Import activities and 45% are not dealing .

50

Which type of cargo’s deal?

TABLE 6.3

Normal

Perishable

Hazardous

60%

12%

28%

Figure 6.3 Basicaly chemical industries produces hazardous goods and dooing exim that are 28%. Normal goods are 60% 51

Perishable goods are 12%

TABLE 6.4

Using FCL or LCL cargo. ? FCL

LCL

60%

40%

Figure 6.4

60% companies are use FCL (Full Container Load ) these are the large scale companies and seal the containner in company premises. Remaining 40% are mainly SSI unit these are seal in port. 52

TABLE 6.5

Over all requirments of Exports .

Current

Future requirment Not requirment

Own forwarder

12%

18%

requirment 55%

15%

Figure 6.5 Current requirment of companies 55% Future requirment is 12% Not requirment is 15% Own Forwarder 18% .

53

CHAPTER 7

FINDINGS

54

FINDINGS

From the analysis of the data I collected during the study I present following Findings:



Awareness level about Abhi Impact Logistics Solutions Pvt Ltd among the existing customers is high.



Most customers compared Abhi Impact Logistics Solutions Pvt ltd with DHL and secondly with Fed Ex.

 Satisfaction level of existing customers is satisfactory, however for the future prospects more changes and efforts have to be taken. 

Location of Abhi Impact Logistics Solutions Pvt Ltd is good as targeted B & C customer.

 There is almost 50% retention of customers visited the store before as per the analysis. 55



Well awareness Abhi Impact Logistics Solutions Pvt Ltd in customer.

CHAPTER 8

LIMITATION OF PROJECT 56

LIMITATION OF PROJECT

There was some limitation during the project.

1. My Business Development scheme was limited to only the customers who are based in Small Industries area.

57

2.

When I was filling the Questionnaire most of customers did not interested to give information to me.

3. Sometime permission was restricted in the company. 4. For filling questionnaire nobody was free without appointment. 5.

Some persons did not give answers of some secret questions.

6. Our selection of Industries was random so it can be biased. 7. Difficulty in lack of about functioning proved as a hurdle in our research

CHATER 9

58

SUGGETION

SUGGETION 59

From the Internship I found some new techniques that are applicable for better Improvements.

1. Company should establish back office for internal support. 2. Company should start some sales promotional activity for better attraction in

customer’s memory. 3. Company should focus on the transportation services. 4. Company should focus on B & C type customers for better profit. 5. Company should increase marketing executive team. 6. To concentrate on advertisement. 7.

Above can be done by expanding its expertise network, also by improving quality of services at a competitive price.

8. Also impact should make effort to make aware to customers about new trends in

3pl /4pl also telling them benefit of outsourcing. 9. .Last but not least impact should focus on slowly to big customers so that it can

expand the size of business and can create Brand name in market for itself

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CHAPTER 10

BIBLEOGRAPHY

61

BIBLEOGRAPHY Reference books 1) International Logistics By Devid Pierre 2) International Trade and Export Management By Francis Cherunilam 3) Export Import Procedures and Documentation Dr.khushpat S.Jain

Referred website

1) www .impact-logistics.in 2) www.indiamart.com

3) www.google.com 4) Wikipedia.com 5) Yahoo.com 62

CHAPTER 11

ANNEXURE • Questionnaire-

63

Annexure Questionnaire-

64

Questionnaire / Sales Report for Freight Forwarding and or customs clearance Mktg / Sales coordinator's name Date of Visit Company Name Address

Telephone / Mobile Fax E-mail Website Contact Person Designation Mobile No. Person to whom visited Designation Mobile No. Nature of business

Imports : If the company has any imports ? If yes, from which countries ? Please specify the ports of loading. What is the mode of transport ? (By air or by sea or both) What are the items that they import ? (material / commodity) What is the volume of imports in terms of number of shipments per month ? (sector / port wise) Please state the sectors / ports here ==>

65 By Air

By Sea

By Air

By Sea

By Air

By Sea

By Air

By Sea