SUMMER TRAINING PROJECT REPORT ON

EXPORT & IMPORT PROCEDURE & DOCUMENTATION

ROCKS FOREVER INC. , INDIA

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF
MASTERS IN BUSINESS MANAGEMENT

SUBMITTED BY
ASHISH SHARMA
MBA- I.B

UNDER THE GUIDANCE OF:

DR. SHIKHA SHARMA

AMITY UNIVERSITY, RAJASTHAN

CERTIFICATE BY FACULTY GUIDE

This to certify that Ashish Sharma a student of Master Of Business Administration (MBAI.B) , class of 2013-15, Amity Business School, Amity University Rajasthan has done the
Summer Internship Project under my guidance for the project Title EXPORT IMPORT
PROCEDURE & DOCUMENTATION. This project report is prepared in partial
fulfilment of Master of Business Administration (MBA) to be awarded by Amity Business
School, Amity University Rajasthan.

Date :
Place :

Mrs. Shikha Sharma

ABS Jaipur

Faculty
Amity Business School
Amity University Rajasthan

ACKNOWLEDGEMANT

The training will be incomplete without giving my sincere gratitude to all persons who have
helped me in the preparation of this report.
I feel privileged in expressing profound sense of gratitude and indebtness of Mr. Rajesh
Kumar General Manager Rocks Forever Inc. , Ongole who gave me excellent opportunity to
work with Rocks Forever family.
Im thankful to Mrs. Shikha Sharma , MBA Program Coordinator who gave me my project
title and guided me to complete my project. Her valuable guidance, constant encouragement
and inspiration were instrumental in the completion of this report. She always allowed me to
encroach upon her precious time and showed her generosity with ideas.

Ashish Sharma
MBA I.B

DECLARATION

I hereby declare that the Report which is being presented here is my own work carried out
during my Summer Internship at ROCKS FOREVER INC., ONGOLE in 3rd Semester
(Session: 2013-2015) for the partial fulfillment of the requirement for the Award of Degree
of Masters in Business Administration and has not been presented elsewhere for the
completion of any other Course. I understand that detection of any copying is liable to be
punished in any way.

ASHISH SHARMA
MBA (I.B)
3rd Semester

ABSTRACT
This SIP report is a study of Import and Export procedure and its Documentation . The
study work is done in collaboration with Rocks Forever Inc. to assess the overall Import and
Export procedure & documentation. On concentrating the objective of project, the maximum
information is summed up sequentially.
In the basic terms Export means selling things abroad or outflow of goods and services &
inflow of foreign exchange. .The government also provides various promotional schemes to
the exporters for earning valuable foreign exchange for the country and for meeting their
requirements for importing modern technology and essential inputs. Besides this, the income
from export business is also exempted to the specified extent under the Income Tax Act,
1961, Refund of Central Excise and Custom Duty on export is also made under the Duty
Drawback Scheme of the Government. There is no Sales Tax on products meant for exports.
Exports can be of goods which can be moved physically from one country to another or can
be of service rendered. Detailed list of services are given in the Foreign Trade Policy
covering more than 160 items e.g. Insurance, Hospital, Postal and Telecommunication etc.
While the Import means a good or service brought into one country from another. Along with
exports, imports form the backbone of international trade. The higher the value of imports
entering a country, compared to the value of exports, the more negative that country's balance
of trade becomes and vice-versa. Therefore to keep a balance among the two is very
important for every country.
Export/ Import procedure consists of several commercial and regulatory formalities, which an
Exporter/Importer is required to complete during the course of Export/Import trade
transactions. These formalities are very complex and time-consuming and involve
considerable documentation. Hence, the Exporters/Importers must possess adequate
knowledge of such formalities. At the same time, it should be ensured that the rules and
regulations of not only exporting country but also of importing country are duly complied
with. Last but not the least, it should be ensured that all the required documents, whether
commercial or regulatory, are prepared and filed with the appropriate authorities.
Therefore appointment of C&F agent (Clearing & Forwarding agent) is required as C & F
agent facilitate the smooth and trouble free passage of cargo from the point of manufacture to
the destination. He possess all the knowledge regarding the export documentation work &
other rules and regulations which saves time of the exporter.
The objective of this study is to know about the Export-Import procedure and custom process
in detail. This report describes that which documents are useful for CHA (Custom House
Agent), IMPORTER and EXPORTER, and describes the various cost incurred while
exporting and importing goods from one country to another, types of risk associated with
exports/imports.

TABLE OF CONTENTS

INTRODUCTION

ROCKS FOREVER INC.

An ISO 9001:2008 company

Established at Udaipur, Rajasthan in 2006

Manufacturers & Exporters of various stones like Marbles, Granites, Limestones, and
Sandstones etc.
Having 5 manufacturing units in UDAIPUR, KARIM NAGAR, HYDERABAD,
ONGOLE, VIZAG (VISHAKAPATNAM)
Having experience of more than 7 years

CORPORATE OFFICE:
OFFICE :
Plot No. B436, Road No. 18A
Bhamashah RIICO Industrial Area
Kaldwas,
UDAIPUR 313001

REGISTERED

Plot No. 98
Vivekanand Nagar
Kukatpally,
HYDERABAD - 500072

Incorporated in 2006, ROCKS FOREVER INC., INDIA is a Flagship company having

other group companies namely as ROCKS FOREVER, ROCKS FOREVER

INTERNATIONAL, ROCKS FOREVER LTD, UK, ROCKS FOREVER INC.,U.S.A.
Among these 4 group companies Rocks Forever International is domestic bound company i.e
dedicated to Indian market, whereas other 4 companies are internationally bound i.e.
dedicated to international market.
The turnover of the company is approx. 110crores.
ROCKS Forever Inc. has consolidated its position in Indian Stone Industry as a manufacturer
of a wide range of stones like Marbles, Granites, Sandstones, Limestones etc. which
conform to the quality expectations of both domestic and international market and is
exporting the same to other parts of the world as a result contributing towards the growth of
the economy by bringing the valuable foreign exchange in India.
Hyderabad.. the joint capital of the state of Andhra Pradesh and Telangana is the 5th largest
city in India with its thrilling History & Culture. Now a days the city is hoisting its flag with
the success story of IT industry as well as for its rich treasure of Granites & other stones.
The Registered Office of the company is situated here along with a factory.
Udaipur.. The city of lakes, showers a fascinating blend of inspiration and imagination for
poets, painters, & writers. Thats the magic of this beautiful land which is full of lakes as well
as with its lush green Aravali Mountains in the background. Here they have their Corporate
office along with their factory.
Other manufacturing units of the company is situated at Ongole, Karim nagar, Vizag.
Ongole is best known for the presence of abundance source of rocks specially Granites and
enjoys the benefit of cost as the port of Chennai and Krishnapatam port is near to the city
saving lot of cost of transportation.
Vizag is the largest city in the state of Andhra Pradesh and the third largest city on the east
coast of India. It is a port city on the southeast coast of Bay of Bengal and often called as The
Jewel of the East Coast and the City of Destiny. This location of the company manufacturing
unit enjoys the cost advantage as the port for exporting their products is near from the unit
which saves the cost of transportation of products on the Dock.
Added to this, companys certification as an ISO 9001:2008 company and Star Export
House has enabled the company to expand its clients list which has reached to an
international level also. Company has an export business to over 15 countries like U.K ,
NETHERLANDS, TURKEY, U.SA, KAZAKHSTAN, LITHUANIA etc. and some leading
Asian and African market.

Experience is an endless journey in itself and further the most precious treasure of any
organisation.
Although the company have just begun their journey (year of establishment 2006) and they
are already on their path of creating new milestones. And the credit for this confidence is of
course to the Rocks Forever team which has joined the journey with their more than seven
years rich background of Indian Stone Industry. The blend of rich experience with the
flavour of continuous improvement is the biggest asset while combating any competitive
world.
At Rocks Forever they have that passion and dedication to keep themselves on the road of
continuous improvement.

VISION
The vision is a most beautiful word to aspire and inspire any organisation. Vision acts as the
growth engine of any organisations journey.
At Rocks Forever they have strong philosophy to cherish and grow continuously at the Road
to Success of course not alone but along with their family members i.e. their Teammates,
Customers, Suppliers & Vendors. At the same time not forgetting the planet Earth at the
journey.

MISSION
The mission of the company is * Lead as business domain

* Lead as corporate culture

-Natural Stones

-Lean
-Entrepreneurial
-Global family
-Agile

* Lead as a function

* Lead as corporate ethics

-Marketing
-Processing, Procurement
-Digital
-Added value & Development

-Legality
-Ethics
-Accountability
-Disclosure

CORPORATE PHILOSOPHY
The corporate philosophy of the company is to promote prosperity for human soul,
communities and the Earth.
Based on this philosophy they conduct their corporate activities openly and fairly.
Their aim is to earn the appreciation from people worldwide thereby creating added value for
their stakeholders.

BUSINESS UNITS IN DIFFERENT PLACES

1. Ongole : Ongole is a city in Prakasam district in the state of Andhra Pradesh, India. The
city is known for the availability of various stones in abundance, and as its location is near
the sea ports so it provides cost benefit to the company. The features of the manufacturing
unit of the company which is situated here are :
Machines

4 Gaspari Gangsaw , 1 Gaspari Epoxy Resin Line, 1 Brasanri Line

Polishing

Thickness

2cm , 3cm , 4cm & upto 10cm.

Finishes

Polish, Hone, Flame, Leather & many other finishes antique

Specialization :

Black Galaxy, Warangal Black, Bengal Black, Black Pearl, Steel grey,
Tan Brown, Vizag Blue.

2. karim nagar : Karim nagar is a city in the state of Telangana, India. One of the
manufacturing unit of the company is located here. Features of the manufacturing unit which
is situated here are as :
Machines

11 Circular Saws, Processing upto 100cm i.e. 65-100*180-340cm

Thickness

2cm, 3cm, 4cm & upto 8cm.

Finishes

Polish, Honed, Flame, Leather & many other finishes

Specialisation :

Tan Brown

3. Hyderabad : Hyderabad.. the joint capital of the state of Andhra Pradesh and Telangana is
the 5th largest city in India with its thrilling History & Culture. Now a days the city is hoisting
its flag with the success story of IT industry as well as for its rich treasure of Granites & other
stones.
The Registered Office of the company is situated here along with a factory. The features of
the factory i.e. the manufacturing unit located here are as follows :
Machines

6 Circular saws, Processing upto 100cm i.e. 65-100*180-340cm.

Thickness

2cm, 3cm, 4cm, and upto 8cm.

Finishes

polish, Honed, Flame, Leather and many other finishes.

Specialisation :

Tan Brown, Coffee Brown

4. Vizag : Vizag or Vishakapatnam is the largest city in the state of Andhra Pradesh and the
third largest city on the east coast of India. It is a port city on the southeast coast of Bay of
Bengal and often called as The Jewel of the East Coast and the City of Destiny. This location
of the company manufacturing unit enjoys the cost advantage as the port for exporting their
products is near from the unit which saves the cost of transportation of products to the Dock.
Features of the unit located here are as follows :
Machines

4 Circular Saws, Processing upto 100cm i.e. 65-100*180-340cm

1 Circular Saw, Processing upto 100cm i.e. 100-125*240-340cm.

Thickness

2cm,3cm, 4cm and upto 8cm.

Finishes

Polish, Honed, Flame, Leather and many other finishes.

Specialisation :

Pearl White, Designer Brown, Vizag Blue, Orissa Green.

5. Udaipur : The city of lakes, showers a fascinating blend of inspiration and imagination
for poets, painters, & writers. Thats the magic of this beautiful land which is full of lakes as
well as with its lush green Aravali Mountains in the background. Here they have their
Corporate office along with their factory. Features of the manufacturing unit located here are
as follows :
Machines

4Circular Saws & 1 Multi Disc

Processing upto 100cm i.e. 65 100**180 340

Thickness

2cm, 3cm, 4cm and upto 10cm.

Finishes

Polish, Honed, Flame, Leather and many other finishes.

Specialisation :

New Imperial Red, Desert Black, Rosy Pink, Crystal Red, Crystal
Yellow, Cherry Brown, Jhansi Red, Madagascar White.

VARIOUS DEPARTMENTS IN ROCKS FOREVER INC.

FINANCE

PRODUCTION

MARKETING

TECHNICAL

HUMAN
RESOURCE
QUALITY
CONTROL

1. FINANCE - The finance department of the company is responsible for all day to day
transactional accounting of the company. They are responsible for the management of the
organisations cash flows and ensuring there are enough funds available to meet the day to day
payments. This department is responsible for paying taxes on behalf of company and
estimating the working capital required and making arrangement of the same. Its their duty to
make sure that employees are paid on time.
2. MARKETING - The marketing department of the company is concerned with finding out
what consumers want, and then providing it for them and ultimately generating the sales for
the company. It is concerned with providing right products at right place and at right price to
the customers. Marketing department of the company keeps an eye on the competitors
strategies and rectify and develops their strategy so as to remain competitive in the market.
This department is concerned with advertising, promotion about their products so that they
can attract more customers and transporting the products to the market.
3. PRODUCTION - The production department of the company is responsible for
transforming the raw material into finished goods through various production process. Other
functions of this department in the company are to set the standards and targets for each stage
of the production process. The production department includes various other small
departments like (a) purchasing department which provides the materials, components and
equipment required, to make sure that the stock arrives on time. (b) Stores department which
is responsible for stocking all the necessary tools, raw material etc. (c) works department
which is concerned with manufacture of products which includes maintenance and repairs of
the product line.
4. TECHNICAL The technical department of the company is concerned with giving
suggestion as to how the working conditions can be improved. It is also responsible for
providing technical support to the production department n other departments, like technical
support in case any machine broke down etc.
5. QUALITY CONTROL The quality control department of the company is concerned
with setting the quality standards in the company and it is concerned with taking the
measurement of the slabs of granites, marbles and noting them on the buyers marking list
sheet. This department makes sure that wastage of the material can be lowered down to
minimum and is concerned with implementing procedures that controls quality.
6. HUMAN RESOURCE - It is the most important department in the company. It recruits
and selects the best available personnel as without good human resource no company can
grow. So HR department plays a vital role. The department does the manpower planning as to
what number and skills of the workforce would be required in the future as failure to do so
could lead them with too few or too many staff which is never desired in any company.

PROMOTERS
The dedication and sincere efforts of the promoters has today created a new milestone. The
promoters of the company consists of experienced & qualified professionals taking all the
strategic decisions and contributing towards the overall growth of the company.
Rocks Forever Inc. was incorporated with the sincere efforts of the following who are called
as the promoters :-

CHINMAY VARDHMAN : Chinmay Vardhman is the Managing Director of

Rocks Forever Inc. India. A management graduate who did his Master in Business
Administration in Marketing field. He looks after the International Business activities of
the company specially the marketing part of the company and is having more than 15
years experience of the Stone Industry.

SRINIVAS PAMIDI : Srinivas Pamidi is the Managing Director of Rocks Forever

Inc., India. An Engineering Graduate, he is a Mechanical Engineer by profession. He
looks after the Production related activities of the company and is having more than
20years experience of the Stone Industry.

LOKESH TRIVEDI : Lokesh Trivedi is the Managing Director of Rocks Forever

Inc. India. A Management Graduate who did his Master in Business Administration in
International Business. He looks after the Finance field of the company and other
commercial activities like government liasoning etc. and takes care of the operations of
the company in Northern region of the country. He is having experience of more than 14
years of the Stone Industry.

RAJESH RAYUDU : Rajesh Rayudu is also the Managing Director of Rocks

Forever Inc. India. A Management Graduate who did his Master in Business
Administration in Marketing. He looks after the finance, outsourcing activities & various
projects of the manufacturing units of the company in Southern part of the country. He is
having more than 10years experience of Stone Industry.
It is due to the efforts of these experienced and qualified professionals and the other
Rocks Forever Family members that the company is heading towards growth and already
on the road to make new milestones in the coming years.

PRODUCTLINE OF COMPANY :
GRANITE :

SOUTH GRANITE

NORTH GRANITE

INDAIN PORINO

-BALTIC RED

CRYSATAL YELLOW

-ANTARTICA PEARL

DESERT BLACK

-CHIMA PINK

PLATINUM WHITE

-ARGENTINA WHITE

CHERRY BROWN

-ROCKING BLUE

KASHMIR WHITE

-APPLE GREEN

LADY DREAM

-RANIWADA YELLOW

MAPLE RED

-RAYMOND BLUE

BLACK PEARL

-ROYAL GREEN

STEEL GREY

-LAKHA RED

VIZAG BLUE
ORISSA GREEN
TAN BROWN
COFFEE BROWN

MARBLE :
-

FOREST GREEN

-BLACK GOLD

EMERALD GREEN

-INDIAN BLACK

INDIAN GREEN

-ONYX GREEN

INDIAN PINK

-RAINFOREST BROWN

RAINFOREST GREEN

-RAINFOREST GOLD

RAINFOREST GREEN(ANTIQUE)

-ONYX PINK

 SANDSTONE :
-

RAINBOW

-TEAK

AUTUMN BROWN

-RAVINA

MANDANA PANTHER

-MINT

AGRA RED

-KANDLA GREY

BIJOLIYA PINK

-LALITPUR GREY

JET BLACK

-RUSTIC

RAJ GREEN

-MODAK

MINT FOSSIL

-RUSTIC GREY

TERA RED

-SILVER GREY

WALL STONE :
-

DEOLI GREEN

-COPPER

MINT

-SILVER SHINE

KUND MULTI

-SILVER GREY

LIMESTONE :
-

KOTA BLUE

-KOTA BROWN

C BLACK

-KOTA HONEY

LIME GREEN

-LIME BLACK

LIME PEACOCK

-LIME PINK

MILESTONES OF THE COMPANY

* Annual Participation at Marmomac , Verona Italy

* Annual Participation at Xiamen Stone Fair , China
* Annual Participation at Izmir Stone Show , Turkey
* Biannual Participation at Stona Show Bangalore , India
* Annual Participation at Kaimen Stone Show , Poland
* CAPEXIL Award 2006-07
* CAPEXIL Award 2007-08

MANUFACTURING EXPERTISE
Manufacturing and that too near to the quarry areas of the respective materials always make
sure to have competitive cost dynamics.
Thats why the company have setup their 5 factories in different parts of India.
Indeed, it is their ISO accreditation for their Business Process (ISO 9001:2008 Reg No. RI
91/6587) and for Environment Friendliness (ISO 14001:2008 Reg No. 91/6587) make sure
that they always remain on the path of continuous improvement.
Further their ISO certification for Ethical Business Approach (which is very rare in world
Stone Industry) make sure that they keep sharing Human Touch to their whole Business
Process System including Manufacturing.

COMPETITORS
Generally all the Stone Companies in the vicinity of the company and its manufacturing units
are the competitors.
As per the survey and the news articles following are some of the competitors of the company
:

DOMESTIC

INTERNATIONAL

OBJECTIVE OF THE STUDY

To know the Export procedure in detail

To know the documentation part in Exports
To know the Import procedure in detail
To know the documentation part in Imports
To know the cost involved in import, export of products
The role of CHA (Custom House Agent) in exports
Documentation done by CHA
To know about the Stone Industry and the opportunities in it
To know about various types of shipping containers
To find the problems which the company usually faces in export business

TYPES OF CONTAINERS
There are different types of containers. The popular types are as follows:
1. Standard Containers:
These are the most common type of containers and are the ones with which most people are
familiar of. Each general-purpose container is fully closed and has width doors at one end for
access. Both liquid and solid substances can be loaded in these containers. Based on length of
the container, the container is generally known as a 20ft. container or 40ft. container, in
practice. Hazardous or dangerous cargo cannot be loaded into general-purpose containers.
2. Refrigerated Containers:
These play an important role in exports of perishable products, and are designed to carry
cargos at temperatures reading down to deep frozen. For refrigeration, they are fitted with
electrical equipment for supply of necessary electricity. Refrigerated containers are mainly
available in 20ft. and 40ft. containers.
3. Dry Bulk Containers:
These are built especially for the carriage of dry powders and granular substances in bulk.
Bulk containers are used in particular for transporting bulk cargo, such as grain, feedstuffs,
and spices. However, they may also be used for transporting general cargo. They are similar
to regular containers, except that on the roof of the bulk containers there are three hatches for
loading, and a hinged letter box opening on the end wall for emptying.
4. Open top containers:
These are built for heavy pieces of cargo. These containers are useful where height of the
cargo is in excess of height of the standard general purpose containers (Standard Containers).
These are the containers with a convertible top that can be completely removed to make an
open top so that materials of any height can be shipped easily.
5. Hanger containers:
They are used for the shipment of garments on hangers.
6. Tank Containers:
Tank containers are used for liquid cargos such as fruit juices, spirits, sweet oils, other
hazardous substances such as fuels, toxic substances. Tank containers must be at least 80%
full, to prevent dangerous surging of the liquids in transit. On the other hand, they must not
be filled over 95%.

EXPORT PROCEDURE

Export procedure consists of several commercial and regulatory formalities, which an

exporter is required to complete during the course of export trade transactions. These
formalities are very complex and time-consuming and involve considerable documentation.
Therefore the exporters must possess adequate knowledge of such formalities. At the same
time, it should be ensured that the rules and regulations of not only exporting country but also
of importing country are duly complied with. It should also be ensured that all the required
documents, whether commercial or regulatory, are prepared and filed with the appropriate
authorities.
Since this procedure is quite complex, time consuming and require adequate knowledge so
its better to appoint to appoint CHA i.e. Custom House Agent who can look after all the
formalities which are required to be fulfilled at the port on companys behalf which will not
only save exporters time but they will get benefitted from his expertise and knowledge in this
field.
An export procedure can be studied under the following heads:1. Registration Stage
2. Pre- Shipment Stage
3. Shipment Stage
4. Post- Shipment Stage

1. Registration Stage
The exporter is required to register his organization with a number of institutions and
authorities, which directly or indirectly help him in the smooth conduct of export trade. The
registration stage includes:
a) Registration of the Organization
The form of organization selected by the exporter must be registered under the
appropriate Act of the country.
A joint stock company under the Companies Act, 1956
A partnership firm under the Indian Partnership Act, 1932
A sole trader should seek permission from the local authorities, as required.
b) Opening Bank Account
The exporter should open a current account in the name of the firm or company with a
commercial bank which is authorized by the Reserve Bank Of India (RBI) to deal in

foreign exchange. Such bank also serves as a source of pre-shipment and post-shipment
finance for the exporter.

c) Obtaining Importer-Exporter Code Number (IEC No.)

Prior to 1.1.1997, it was obligatory for every exporter to obtain CNX number from the
RBI. However, since then, the CNX number has been replaced by IEC number issued by
the Director General for Foreign Trade (DGFT). The application form for obtaining IEC
number should be accompanied by fee of Rs.1000.
d) Obtaining Permanent Account Number (PAN)
Export income is subject to a number of exemption and deductions under different
sections of the Income Tax Act. For claiming such exemptions and deductions, the
exporter should register his organization with the Income Tax Authorities and obtain the
Permanent Account Number (PAN).
e) Obtaining Sales Tax Number
Exportable goods are exempted from sales tax, provided the exporter or his firm is
registered with the Sales Tax Authorities. For this purpose, the exporter is required to
make an application in the prescribed form to the Sales Tax Office (STO) in whose
jurisdiction his (exporters) office is situated.
f) Registration with Export Promotion Council (EPC)
It is compulsory for every exporter to register with the appropriate Export Promotion
Council (EPC) and obtain the Registration-cum-Membership Certificate (RCMC). The
benefits provided in the current EXIM Policy are extended only to the registered
exporters having valid RCMC.
g) Registration with ECGC
The exporter should also register with the Export Credit and Guarantee Corporation of
India (ECGC) in order to secure overseas payments against political and commercial
risks. It also helps the exporters in obtaining the financial assistance from commercial
banks and other financial institutions.

2. Pre-Shipment Stage
Pre- shipment stage consists of the following steps:a) Approaching Foreign Buyers
In order to get an export order, a new exporter can make use of one or more of these
techniques, such as, advertising in international media, sales promotion, public selling,
publicity and participation in trade fairs and exhibitions.
b) Inquiry And Offer

An inquiry is a request from a importer about the description of goods, their standard or
grade, size, weight or quantity, terms of payments, etc. On getting an inquiry, the exporter
must process it immediately by making an offer in the form of a proforma invoice.

c) Confirmation of Order
Once the negotiations are completed and the terms and conditions are finalized; the
exporter sends three copies of proforma invoice to the importer for the confirmation of
order. The importer signs these copies and sends back two back copies to the exporter.
d) Opening Letter of Credit
The documentary credit or letter of credit is the most appropriate and secured method of
payment adopted to settle international transactions. On the finalization of the export
contract, the importer opens a letter of credit in favour of the exporter, if agreed upon in
the contract.
e) Arrangement of Pre-shipment finance
On securing the letter of credit the exporter procures a pre-shipment finance from his
bank for procuring raw materials and other components, processing and packing of goods
and transfer of goods to the port of shipment.
f) Production or Procurement of goods
On securing the pre-shipment finance from the bank, the exporter either arranges for the
production of the required goods or procures them from the domestic market as per the
specification of the importer.
g) Packing and Marking
Then the goods should be properly packed and marked with necessary details such as port
of shipment and destination, country of origin, gross and net weight, fumigation stamp
etc.
h) Pre-shipment Inspection
If the goods to be exported are subject to compulsory quality control and pre-shipment
inspection then the exporter should contact the export inspection agency (EIA) for
obtaining the inspection certificate. For the companies which are located in SEZ are
relieved from pre-shipment inspection.
i) Central Excise Clearance
The exporter is totally exempted from the payment of central excise duty. However, the
exemption should be claimed in one of the following ways:
- Export under rebate
- Export under bond
j) Obtaining Insurance Cover:
The exporter must take appropriate policies in order to ensure risks.
- ECGC policy in order to cover credit risk.

Marine insurance policy, if the price quotation agreed upon is CIF.

k) Appointment of CHA:
Since exporting is a complex and time-consuming process, the exporter should appoint a
Custom House Agent (CHA) for the smooth clearance of goods from the Customs and
preparation and submission of various export documents. CHA coordinates with the
clearing & forwarding agent on the docks and takes care of all the formalities required
there on behalf of the company.

3. Shipment Stage
Export cargo can be exported to the overseas buyer by sea, air or land. However,
shipment by sea is the most popular and generally used as it is comparatively cheaper.
Besides, the ships capacity is far greater than other modes of transportation.
Nevertheless, transportation by air is utilized for export of expensive items like,
diamonds, gold, etc. the shipment stage includes the following steps:
a) Reservation of Shipping space
Once the export contract is finalized, the exporter reserves the required space in the vessel
for shipment. On accepting the exporters request, the shipping company issues a
shipping order. The original copy of the shipping order is given to the exporter and a
duplicate is sent to the commanding officer of the ship. The shipping order is an
instruction by the shipping company to the commanding officer of the ship that the goods
are as per the details given and should be received on board.
b) Arrangement of transportation up to the port of shipment
The exporter makes necessary arrangements for transportation of goods to the port either
by road or railways. On loading goods into the railway wagon, the railway authorities
issue a railway receipt, which may be either freight paid or freight to pay. It serves as
a title to the goods. The exporter endorses the railway receipt in favour of his agent to
enable him to take delivery of the goods at the port of shipment.
c) Preparation and Processing of Shipping documents
As the goods reaches the port of shipment, the exporter should issue the detailed
instructions to the CHA (Custom House Agent) for the shipment of cargo along with a
complete set of documents listed below.
- Letter of credit along with the export contract or export order.
- Commercial invoice
- Packing list or packing note
- Certificate of Origin
- GR Form / EDF
- ARE- 1 form
- Certificate of Inspection, where necessary (original copy)
- Marine insurance policy.

d) Customs Clearance
The cargo must be cleared from the customs before it is loaded on the ship. For this, the
above mentioned documents along with the five copies of shipping bill, are to be
submitted to the customs officer at the customs house. The customs officer ensures that
all the formalities relating to exchange control, quality control, pre-shipment inspection
and licensing have been complied with by the exporter. After verification, all the
documents, except the original GR, original copy of shipping bill and one copy of
commercial invoice, are returned to the C&F agent.
e) Obtaining Carting Order from the port trust authorities
The C&F agent then approach the superintendent of concerned Port Trust for obtaining
the Carting Order for moving the cargo inside the dock. After obtaining the Carting
Order the cargo is physically moved into the port area and stores in the appropriate shed/
warehouse.
f) Customs Examination and Issue of Let Export Order
The Customs Examiner at the port of shipment physically examines the goods and seals
the packages in his presence. The same can be arranged at the factory or warehouse of the
exporter by making an application to the assistance collector of Customs. The Custom
examiner, if satisfies, issues a formal permission for the loading of cargo on the ship in
the form of a Let Export Order.
g) Obtaining Shipping Order from the Customs Preventive Officer
Let Export Order, must be supplemented by a Shipping Order issued by the customs
preventive officer. The C&G agent submits the duplicate copy of shipping bill, duly given
by the Customs Examiner, to the Customs Preventive Officer who endorse it with the
Shipping Order.
h) Obtaining Mates Receipt and Bill Of Lading:
The goods are then loaded on-board of the ship for which the mate or the captain of the
ship issues mates receipt to the port superintendent. The port superintendent on receipt of
port duties, hands over the mates receipt to the C&F agent, the C&F agent surrenders the
mates receipt to the shipping company for obtaining the bill of lading. Document signed
by an officer of a vessel evidencing receipt of a shipment on-board of the vessel. It is not
a document of title and is issued as an interim measure until a proper bill of lading can be
issued
The shipping company issues three negotiable copies of bill of lading to the C&F agent
along with their seal on it and then the C&F agent forwards them back to the exporter.
i)

Filing the EGM or Export Report:

EGM stands for Export General Manifest. Export General Manifest is a legal document
mandatory to be filed by carrier of goods with custom department. This document is used
by government authorities as a proof of export. The custom officials certify proof of
export on shipping documents to the exporters on basis of EGM. With such certificate,
exporters claim export benefits based on such document along with other documents like
bill of lading as a proof of exports.

4. Post-Shipment Stage
The post-shipment stage consists of the following steps:a) Submission of Documents by the C&F agent to the Exporter
On the completion of the shipping procedure, the C&F agent submits the following
documents to the exporter:
- A copy of invoice duly attested by the Customs
- Copy of the shipping bill
- A full set of negotiable copies of bill of lading
- The original L/C, export order or contract.
- Duplicate copy of the ARE-1 form
b) Shipment Advice to Importer
After the shipment of goods, the exporter intimates the importer about the shipment of
goods giving him details about the date of shipment, the name of the vessel, the
destination, etc. he should also send one copy of non-negotiable bill of lading to the
importer.
c) Presentation of Documents to Bank for Negotiation
Submission of relevant documents to the bank and the process of getting the payment
from the bank is called Negotiation of the Documents and the documents are called
Negotiable Set of the Documents. The set normally contains:
- Full set of Bill of Lading or Airway Bill
- Original letter of credit
- Customs Invoice
- Commercial Invoice including one copy duly certified by the Customs
- Packing List
- Foreign exchange declaration forms, GR/SOFTEX/PP/ EDF forms in duplicate
- Exchange control copy of the Shipping Bill
- Certificate of Origin
- Marine Insurance Policy, in duplicate
d) Dispatch Of Documents
The bank negotiates these documents to the importers bank in the manner as specified in
the L/C. Before negotiating documents, the exporters bank scrutinizes them in order to
ensure that all formalities have been complied with and all documents are in order. The
bank then sends the Bank Certificate and attested copies of commercial invoice to the
exporter.
e) Acceptance of the Bill of Exchange

Bill of Exchange accompanied by the above documents is known as the Documentary

Bill of Exchange. It is of two types: Documents against Payment (Sight Drafts): In case of sight draft, the drawer
instructs the bank to hand over the relevant documents to the importer only against
payment.
Documents against Acceptance (Usance Draft): In case of usance draft, the drawer
instructs the bank to hand over the relevant documents to the importer against his
acceptance of the bill of exchange.
f) Letter of Indemnity
The exporter can get immediate payment from his bank on the submission of documents
by signing a letter of indemnity. By signing the letter of indemnity the exporter
undertakes to indemnify the bank in the event of non-receipt of payment from the
importer along with accrued interests.
g) Realization of Export Proceeds
On receiving the documentary bill of exchange, the importer releases payment in case of
sight draft or accepts the usance draft undertaking to pay on maturity of the bill of
exchange. The exporters bank receives the payment through importers bank and is
credited to the exporters account.
h) Processing of EDF Form
On receiving the export proceeds, the exporters bank intimates the same to RBI by
recording the fact on the duplicate copy of EDF. The RBI verifies the details in duplicate
copy of EDF with the original copy of EDF received from the Customs, if the details are
found to be in order then the export trans action is treated to be completed.
i) Realization of Export Incentives
If the exporter is eligible for export incentives, then he should submit claim for the same
accompanied by the bank certificate to the appropriate authority.

Lists of documents required to be submitted by the exporter to various

authorities, organizations, and agencies.
1) To the custom authority:-

Commercial invoice
GR Form/ EDF
Shippers Declaration Form
Copy of the Export Contract /L/c/Export Order
Inspection certificate
Export license

Weighment Certificate
Shipping bill
Packing list
Certificate of origin

2) To the port authorities:-

Port Trust Copy of the Shipping Bill

Wharfage application
Insurance certifiacte

3) To the bank:-

Letter of credit
Commercial invoice
Bill of lading
Insurance Policy/Certificate
Bill of exchange
EDF form
Bank certificate
Export Inspection Certificate
Certificate of Origin

Export Promotion Organizations

Ministry of Commerce

Board of Trade

Export Promotion Councils (EPCs)

Export Promotion Council for Services

Commodity Boards (CBs)

Export Inspection Council (EIC)

Indian Trade Promotion Organization (ITPO)

Indian Institute of Foreign Trade (IIFT)

Indian Institute of Packaging (IIP)

Indian Council of Arbitration (ICA)

Federation of Indian Export Organization (FIEO)

Marine Products Exports Development Authority (MPEDA)

Export Processing Zones (EPZs)

100% Export Oriented Units (EQOS)

M. Visvesvaraya Industrial Research and Development Center (MVIRDC)

Chamber of Commerce (COC)

Inter-state Trade Council

IMPORT PROCEDURE
Import means a good or service brought into one country from another. Along with exports,
imports form the backbone of international trade. The higher the value of imports entering a
country, compared to the value of exports, the more negative that country's balance of trade
becomes and vice-versa. Therefore to keep a balance among the two is very important for
every country.
The import procedure is quite different from the export process. It starts with :

1. Obtaining Importer-Exporter Code Number (IEC No.)

Prior to 1.1.1997, it was obligatory for every exporter to obtain CNX number from the RBI.
However, since then, the CNX number has been replaced by IEC number issued by the
Director General for Foreign Trade (DGFT). The application form for obtaining IEC number
should be accompanied by fee of Rs.1000. Every importer is required to register himself with
the Director General for Foreign Trade to obtain IEC number then only he is eligible to
import.
2. Placing the order
After obtaining the IEC no. the importer become eligible to import products. Now he can
place the order of the products as per his requirement with the seller anywhere in the globe.
3. Appointment of CHA
Since exporting is a complex and time-consuming process, the importer should appoint a
Custom House Agent (CHA) for the smooth clearance of goods from the Customs and
preparation and submission of various import documents. CHA coordinates with the clearing
& forwarding agent on the docks and takes care of all the formalities required there on behalf
of the importer.
4. Receipt of shipment advice
The importer receives the shipment advice from the exporter. The shipment advice states the
date on which the goods are loaded on the ship. It helps the importer to make arrangements
for clearance of the goods and after receiving the information he draws the L/C in favour of
the exporter.

5. Despatching letter of credit

After getting the confirmation from the supplier regarding the goods have been dispatched on
the vessel, the importer requests his bank to issue a Letter of credit in favour of supplier. It
can be defined as an undertaking by importer's bank stating that payment will be made to the
exporter if the required documents are presented to the bank.
6. Receipts of the documents
The importers bank receives the documents from the exporters bank. The document includes
bill of exchange, a copy of bill of lading, certificate of origin, packing list and other relevant
documents. The importers make payment to the bank if not paid before and collects the
document.

7. Filing Import General Manifest

Once the cargo arrives in port, carrier of goods files Import General Manifest (IGM) with
customs department. IGM is the details of import of goods to be filed with customs
mandatorily, by all carriers once goods arrives at the importing country as per the specified
format given by customs.

8. Bill of Entry
This is a document required in case of import of goods. It is like shipping bill in case of
exports. A Bill of Entry is the document which contains the fact that goods of the stated value
and description in specified quantity are entering into the country from abroad. The customs
office supplies this form which is prepared in triplicate. One copy is retained by custom
department, other is retained by port trust and the third is kept by the importer.
Types of bill of Entry:1. Bill of entry for home consumption
2. Bill of entry for warehousing
3. Bill of entry for Ex-bond clearance for home consumption

9. Examination and Assessment of cargo

After the arrival of the cargo on the port, it is examined by the customs officer so as to
confirm whether the goods are of the same quality or weight as specified in the bill of lading
and other relevant documents. Assessment of the goods is done like whether the market value
mentioned in the bill of lading, invoice etc. is acceptable or not, calculation of the import
duty of the cargo etc.
10. Clearing of the goods
The clearing agent pays the necessary port trust dues and obtains the port Trust Receipt in
two copies.

He then approaches the Customs House and presents one copy of Port Trust Receipt, and two
copies of Bill of Entry to the customs authorities. The customs officer endorses the Bill of
Entry Forms and one copy of Bill of Entry is given back to the importer. The importer then
pays the customs duty and clears the goods. In case, the customs duty is not paid, then the
goods are stored in the bonded warehouses. As and when the duty is paid, the goods are
cleared from the docks.
Importer or the CHA of the importer is required to present bill of lading, invoice, packing list
and other relevant documents at the port when the goods arrives at the port and then after
examination and assessment only the cargo is cleared and importer is allowed to take the
delivery of the same.

Documents to be used in import:

1. Bill of lading
2. Invoice
3. Certificate of origin
4. Wharf age
5. Bill of entry
6. Packing list
7. NOC (No Objection Certificate)
8. Delivery order
9. Treasury challan
10. Gate pass

EXPORT IMPORT DOCUMENTATION

Aligned Documentation System:
Aligned Documentation System (ADS) is based on the UN layout key. Under this system,
different forms used in the international trade transaction are printed on paper of the same
size and in such way that the common items of information are given the same relative slots
in each of the documents. India follows the Aligned Documentation System for
documentation purpose.
For the purpose of Aligned Documentation System documents have been classified as under:
a) Commercial Documents- Commercial documents are required for effecting physical
transfer of goods and their title from the exporter to the importer and the realization of export
sale proceeds. Out of the 16 commercial documents in the export documentation 14 have
been standardized and aligned to one another. These are proforma invoice, commercial
invoice, packing list, shipping instructions, intimation of inspection, and certification of
inspection of quality control. Insurance declaration, certificate of Insurance, mates receipt,
bill of lading or combined transport document, application for certificate origin, certificate of
origin, shipment advice and letter to the bank for collection or negotiation of documents.

Commercial documents can be further categorised as:

(i) Principal Export Documents
(ii)Auxiliary Export Documents

b) Regulatory Documents- Regulatory pre-shipment export documents are prescribed by the

different government departments in order to comply with various rules and regulations under
the relevant laws governing export trade such as export inspection, foreign exchange
regulation, export trade control. , customs, etc. out of 9 regulatory documents 4 have been
standardized and aligned. These are shipping bill or bills of export, export declaration form
(EDF), export application, dock challan or port trust copy of shipping bill and receipt for
payment of port charges.

Following are the important documents which are required to be prepared for Export/Import :

Proforma Invoice
The starting point of the export contract is in the form of offer made by the exporter to the
customer. The offer made by the exporter is in the form of a proforma invoice. It is a
quotation given as a reply to an inquiry. It normally forms the basis of all trade transactions.

Contents of Proforma Invoice

Name and address of the exporter

Name and address of the importer
Name of country of final destination
Marks and container number
Name of the port of discharge and final destination
Provisional invoice number and date
Exporters reference number
Buyers reference number and date
Name of the country of origin of goods
Number of packing description
Description of goods giving details of quantity, rate n total amount in terms of
international accepted price quotations
Signature of exporter with date.

Commercial Invoice
Commercial invoice is an important and basic export document. It is also known as a
Document of Contents as it contains all the information required for the preparation of other
documents. It is actually a sellers bill of merchandise. It is prepared by the exporter after the
execution of export order giving details about the goods shipped. It is essential that the
invoice is prepared in the name of the buyer or the consignee mentions in the letter of credit.
It is prima facie evidence of the contract of sale or purchase and therefore must be prepared
strictly in accordance within the contract of sale.
Contents of Commercial Invoice:

Name and address of the consignee

Name and address of the exporter
Name and number of vessel of flight
Name of the port of loading
Name of port of discharge n final destination
Invoice number n date
Exporters reference no.
Importers reference number and date

Name of country of origin of goods

Name of the country of final destination
Marks and container number.
No. of packing description
Description of goods giving details of quantity, rate n total amount in terms of
internationally accepted price quotations
Signature of exporter with date.

Packing list
The exporter prepares the packing list to help the buyer to check the shipment. It contains a
detailed description of goods packed in each case, their gross and net weight, etc. the
difference between a packing note and the packing list is that the packing note contains the
particulars of contents of an individual pack. While the packing list is a consolidated
statement of the contents of a number of casesn or packs.

Mates Receipt
Mates receipt is a receipt issued by the commanding officer of the ship when the cargo is
loaded on the ship. The mates receipt is the primer-facie evidence that goods are loaded in
the vessel. The mates receipt is first handed over to the port trust authority. After making
payment of all port dues, the exporter or his agent collects the mates receipt from the port
trust authorities. The mate receipt is freely transferable. It must be handed over to the
shipping company in order to get the bill of lading. Bill of lading is prepared on the basis of
mates receipt.
Contents of Mates Receipt

Name and address of the shipper

Name and logo of the shipping line
Name and the number of the vessel
Name of the port of loading
Name of the discharge and place of delivery
Marks and container number
Packing and container description
Total number of container and packages
Description of goods in terms of quantity
Container status and seal number
Gross weight in kg and volume in terms of cubic meters
Shipping bill number and date
Signature and initials of chief officer

Bill Of Lading

Bill of Lading is a document issued by the shipping company or its agent acknowledging the
receipt of goods on board the vessel, and undertaking to deliver the goods in the like order
and condition as received, to the consignee or his order, provided the freight and other
chargers as specified in the bill have been duly paid. It is also a document of title to the
goods and, as such, is freely transferable by endorsement and delivery.
A bill of lading serves three main purposes:
As a document of title to the goods
As a receipt from the shipping company
As a contract of transportation of goods.
Contents of bill of lading:
Name and logo of shipping line
Name and address of the shipper
Name and the number of the vessel
Name of the port of loading
Name of the discharge and place of delivery
Marks and container number
Packing and container description
Total number of container and packages
Description of goods in terms of quantity
Container status and seal number
Gross weight in kg and volume in terms of cubic meters
Amount of freight paid or payable
Shipping bill number and date
Signature and initials of chief officer.

Certificate of Origin
The importers in several countries require a certificate of origin without which clearance to
import is refused. The certificate of origin states that the goods exported are originally
manufactured in the country whose name is mentioned in the certificate. Certificate of origin
is required when;
a) The goods produced in a particular country are subject to preferential tariff rates in the
foreign market at the time of import.
b) The goods produced in a particular country are banned for import in the foreign
market.
Contents of Certificate of Origin:

Name and logo of chambers of commerce

Name and address of the exporter name and address of the consignee
Name and the number of the vessel of flight

Name of the port of loading

Name of the port of discharge and place of delivery
Marks and container number
Packing and container description
Total number of containers and packages
Description of goods in terms of quantity
Signatures and initials of the concerned officer of the issuing authority
Seal of the issuing authority

Shipping Bill
Shipping bill is the main custom of document, required by the customs authorities for
granting permission for the shipment of goods. The cargo is moved inside the dock area only
after the shipping bill is duly stamped, i.e. certified by the custom. Shipping bill is normally
prepared in 5 copies
Contents of Shipping Bill:
Name and address of the exporter
Name and address of the importer
Name of the vessel, master or agents and flag
Name of the port at which the goods are to be discharged
Country of final destination
Detail of packages, description of goods, marks and numbers, quality and detail of
each case.
FOD price and real value of goods as defined in the sea customs act.
Whether Indian or foreign cargo to be re-exported
Total number of packages with total weight and value.

Certificate of Inspection:
This is the Certificate issued by the Export Inspection Agency after it has conducted the preshipment inspection of goods for export provided the goods fall under the notified category of
goods requiring compulsory shipment of inspection.

Consular Invoice
Consular Invoice is a document required mainly by Latin American countries like Kenya,
Uganda, Tanzania, Burma, Mauritius, New-Zealand, Myanmar, Iraq, Australia, Fiji, Cyprus,
Nigeria, Ghana, Guinea Zanzibar, etc. this Invoice is the most important document, which
needs to be submitted for certification to the embassy of the importing country concern. The

main purpose of the consular invoice is to enable the authorities of the importing countries to
collect accurate information about the volume, value, quality, grade, source, etc., of the goods
imported for the purpose of assessing import duties.
In order to obtain consular invoice, the exporter is required to submit three copies of invoice
to the customs of the importing country concern. The custom officer of the importing country
certifies them in return for fees. One copy of invoice is given to the exporter while the other
two are dispatched to the customs office of the importers country for the calculation of
import duty. The exporter negotiates a copy of a consular invoice to the importer along with
other shipping documents.

Bill of Entry
Bill of Entry is a document, prepared by the importer or his clearing agent in the prescribed
form under bill of entry regulations, 1971, on the basis of which clearance of imported goods
can be made.
When goods are imported in a particular country, the importer has to pay the necessary
import duty. For this purpose, necessary information about the goods imported must be given
to the custom authorities in a prescribed form called bill of entry form. Bill of entry is a
document, which states that the goods of the stated values and description in the specified
quantity have entered into the country from abroad. The bill of entry is drawn in triplicate.
The customs authorities may ask the importer to supply other documents like invoice,
insurance policy, etc. in order to verify the correctness of the information, shown in the bill of
entry form.
For the purpose of giving information in the bill of entry form, goods are classified into three
categories namely:
Free goods: where the goods imported are now subject to custom duty
Goods for home consumption: where the goods are imported for self-consumption
Bonded goods: where the goods imported are subject to custom duty, the goods are kept in
bond till the duty is paid.
The importer has to fill up a separate bill of entry form for different classes of goods. In
India, separate forms are not used but all entries are made in one form. The free goods are
marked as free in the entry form itself. The importer has to pay the duty before taking the
delivery of the goods.
Contents of Bill of entry:

Name and address of the exporter

Name and address of the importer
Import license number of the importer
Name of the port/ dock where goods are to be cleared
Description of goods
Value of goods

Rate and amount of import duty payable

Other relevant documents

Airway Bill:
Airway Bill, also called as Air Consignment Note, is a receipt issued by an airline for the
carriage of goods. As each shipping company has its own bill of lading, so each airline has its
own airway bill.
Airway bill or Air Consignment note is not treated as a document of title and is not issued in
negotiable form.
Contents of Airway Bill:

Name of the airport of departure and destination

The names and addresses of the consigner, consignee and the first carrier
Marks and container number
Packing and container description
Total number of containers and packages
Description of goods in terms of quantity
Containers status and seal number
Amount of freight paid or payable
Signature and initials of the issuing carrier or his agent

GR Form
GR forms (Guaranteed Remittance) are issued by Reserved Bank of India to regulate and
monitor foreign exchange transactions against export of goods under physical forms.
Exporter has to collect blank GR forms from RBI. The forms are in duplicate. Exporter had to
sign both copies and have to deliver to Customs House Agents for filing with customs. While
filing shipping documents by customs house agents, a Xerox true copy of shipping bill to be
attached with the GR form. Once customs formalities are completed, original GR form is kept
with customs and duplicate copy of GR form is send back to the exporter. Exporter submits
duplicate GR form with their bank along with other shipping documents with in 21days from
the date on bill of lading. Exporters bank sends back the said duplicate GR form to RBI for
foreign exchange regulations. Customs department also sends back the original GR copy to
RBI.
The form is submitted to RBI as it ensure that the exporter realise the proceed of exports
within 6 months of the shipment of the goods.

On the account of introduction of electronic data interchange system at certain custom offices
where shipping bills are processed electronically, the existing declaration in GR Form has
been replaced by a declaration in form EDF (Export Declaration Form).
Now a days GR form is not used as mostly all the customs are computerised.

Fumigation Certificate
In most of the cases where in wood materials are used for packing of export goods, the
importer insists exporter to fumigate cargo and asks to produce fumigation certificate along
with other export documents. Fumigation is a legal requirement by the importer in most of
the countries. So fumigation certificate is issued by the fumigator by obtaining approval for
fumigation from the licensing authority. Most of the countries will not allow to import goods
without fumigation certificate, wherever applicable on such goods. Fumigation is done after
completion of stuffing of cargo and closing the door of container. Methyl Bromide is
commonly and widely used as fumigants for fumigation all over world. Other widely used
fumigants are Chloropicrin, Phosphate, Dichloropropene, Methyl isocynate, hydrogen
cyanide, sulfuryl fluoride, formaldehyde etc.

Bank Certificate of Export

This certificate contains the information of export consignment and as to be submitted to the
bank for each and every consignment.
The information required for making bank certificate is obtained by various shipment
documents named as Invoice, Shipping Bill, Bill of Lading, Airway bill, Insurance bill,
Freight Memo etc. Three copies of bank certificate addressed to the joint director of foreign
trade is prepared and submitted to bank. Copies of Export Invoice, custom attested EP
(Export Promotion) copy of Shipping Bill and other relevant documents are also submitted
along with the Bank Certificate
The Bank Certificate is declaration by the exporter that they have forwarded the documentary
export bill to its bank for the collection or negotiation or purchase as per particular given in
Bank Certificate. The bank verifies the information given by the exporter and certifies the
same. The bank passes the original copy with the relevant copy of attested documents to the
exporter and duplicate copy to the Licensing Authority. Bank retains the triplicate copy for its
record.
Contents of Bank Certificate

Invoice No.

Export Promotion Copy of Shipping Bill duly-authenticated by custom

Description of Goods as given in Custom Authenticated-Shipping Bill
Bill of Lading No.
Destination of Goods
Bill Amount
Foreign Exchange used
Freight Amount as per Bill of Lading
Insurance amount as per Bill receipt
Date of Realization of export proceeds
SDF (Statutory Declaration Form) Form No. & Signature of Exporter
EDF (Export Declaration Form)

EDF Form (Export Declaration Form)

As per RBI Circular No. RBI/ 2013 14/ 254 / AP (DIR SERIES) Circular No. 43 Dated
September 13, 2013 which is issued under provisions of Foreign Exchange Management Act,
1999, the requirements relating to submission of GR Form under various provisions of
FEMA and RBI circulars / notifications issued in this regard have been modified and it has
been provided that in case of all export of goods from non EDI (Electronic Data Interchange)
ports, RBI will be informed of the Export Documentation form (EDF)
EDF will replace the existing GR / PP form used for declaration of export of Goods for
shipping bill. According to the revised procedure, exporters will have to declare all the
exports transactions in the new format even if the value of export is less than $25000.

Cost Factor in Export Import of Goods

-

Materials, labour and overhead

Custom packaging
Inspection fees
Licensing fees
Royalties
Buying agent's commissions
Trader's mark-ups
Bank charges and commissions
Overseas agent's commissions
Freight forwarder's charges
Documentation charges
Insurance premiums
Export license fees
Certification fees
Consular fees
Advertising
Road freight
Brokerage fees
Insurance premiums
Air freight
Overtime charges
Warehousing
Loading fees
Wharf age
Ocean freight
Unloading fees
Import duties and taxes
Import license fees
Uninsured damages
Interest charges

RESEARCH METHODOLOGY
1) Sample Design:
Defined as a definite plan for obtaining a sample for a given population, it refers to a
technique or procedure the researcher would adopt in selecting items for the sample as it
may, as well lay down the number of items to be included in the sample, i.e. the sample-size.

Sample size:

The

population under

survey consists

of

44 employees in Rural Electrification

Corporation Ltd for the Questionnaire.

Sampling technique:

The sampling technique used is SRS-the Simple Random Sampling in which the sample is
so drawn that each and every unit in the sample frame under survey has an equal and
independent chance of being included in the sample. (If the unit selected in any draw is
not replaced in the population before making the next draw, then it is known as Simple
Random Sampling, without replacement and if it is replaced back before making the next
draw, then the sampling plan is called Simple Random Sampling with the replacement
always amounting to sampling from an infinite population, even though the population is
finite.)

2) Data collection:

Data Sources : Both Primary & Secondary

Primary Sources:
First- hand data collection by the surveyor himself while conducting employees

survey respectively via structured questionnaire.

Secondary Sources:
Sources of information are journals, magazines, periodicals, books and the Internet.

3) Research types:
The research topic was to find out the problems faced by the export businesses in their day to
day operations. To take the Export readiness test for the research and to find out various
other useful information about the company. Following are the research type used:-

3.1 Primary research:

It is based on the questionnaires being given to the employees of the company in order to be
filled up by them.

3.2 Secondary research:

3.1.1 It is exploratory in nature.
3.1.2 Sources

of information

prospectus,

are journals, magazines, periodicals, company

books and the Internet.

4) Method of collecting the data:

The population under survey consists of 44 e m p l o y e e s o f t h e c o m p a n y . SRS i . e .
Simple random sampling was adopted as the sampling technique.

5) Data Analysis & Interpretation:

Graphical representations such as pie- charts, histograms have been extensively used for
analysis & interpretation of data.