A Project Report On

Export Import Procedure

Submitted to: Mr Sandeep Sharma Senior Manager Ocean Freight

Submitted By: Abhilash MBA 4th Semester Indian Maritime University

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Sandeep Sharma, Senior Manager, Ocean Freight, Yusen Logistics Ltd., Gurgaon for his guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

I would also like to express my gratitude towards Mrs. Yamini Sharma, HR head, Yusen Logistics Ltd, Gurgaon, Mr. Deepak Batra HR Executive, Yusen logistics Ltd., Gurgaon, members of Yusen logistics Ltd., Gurgaon & my family for their kind co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude to and thanks to industry persons for giving me such attention and time.

My thanks and appreciations also go to my colleagues in developing the project and people who have willingly helped me out with their abilities

Declaration

I hereby declare that this project titled EXPORT IMPORT PROCEDURE submitted in the partial requirement for the degree of Master of Business Administration (International Transportation and Logistics Management) is my original work and it has not formed basis for the award of any other degree

Place: New Delhi Date: 11th May

ABHILASH

PREFACE

Research is the feedback, which any organization sought for the purpose of effective policy making. It is the systematic problem Analysis, model building and fact finding for the purpose of important decision making and control in the marketing of all goods and services.

Research is the systematic investigation into existing or new knowledge.[citation needed] It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. A research project may also be an expansion on past work in the field. In order to test the validity of instruments, procedures, or experiments, research may replicate elements of prior projects, or the project as a whole. The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, or the research and development of methods and systems for the

advancement of human knowledge. Approaches to research depend on epistemologies, which vary considerably both within and between humanities and sciences.

Yusen Logistics Yusen logistics was incorporated on 1st Oct 2011 by the merger of Yusen Air & Sea Services co. Ltd and NYK Logistics. It provides three major services Air Freight Forwarding Ocean Freight Forwarding Contract Logistics and Transportation

Air Freight Forwarding Yusen Logistics is able to draw on its proven performance as an air freight forwarder to select the most appropriate routes and the most suitable packing methods and transportation environments for each type of cargo. Yusen Logistics also provides a high-performance of air transportation service for semiconductor equipment and pharmaceutical products, which require a sensitive and special handling of transportation. The major services provided in air freight forwarding are: Transportation Quality To avoid the rising risk of cargo damage, including breakage, theft, or loss, Yusen Logistic offers its Intact ULD* Transportation Service, in which cargo is loaded onto ULDs at our own facilities rather than by the airlines. Preloading the cargo better assures quality, prevents left-off cargo and maintains stable lead times.

 JIT Transportation More and more clients demand JIT (Just In Time) delivery-transporting only what is needed, when needed, and in the amounts needed. At Yusen Logistics, we can ensure JIT transportation through our global logistics network, capabilities in logistics operations, and meticulous cargo management methods using our own logistics information system. Specialized Transportation Specialized expertise is frequently needed for such cargo as large-scale manufacturing equipment, medicines and food products that require specific temperature and humidity controls, or valuable exhibition materials. At Yusen Logistics, our comprehensive know-how enables us to plan and implement the most effective means for getting the job done.

Ocean Freight Forwarding Yusen Logistics is an ideal partner for comprehensive global logistics services offering world-class ocean, land and air transportation expertise. It provides you with a diverse range of integrated solutions fully tailored to meet all your needs. The companys long-term partnerships with numerous carriers, along with sophisticated, cutting-edge information technology and extensive global networks that span over 60 countries, plus unparalleled quality service has today made Yusen Logistics one of the world's leading international ocean freight forwarding service providers. The company ensure the very finest in Full Container Load (FCL) shipments, Less-thanContainer Load (LCL) shipments, Supply Chain management, Temperature-Controlled Container Load shipments and Project Logistics.

The Major services provided in ocean freight forwarding are: Full Container Load (FCL) Yusen Logistics' years of international experience ensures that you'll get the right equipment and best routing options for your FCL cargo to destinations across the globe while at the same time guaranteeing shipping costs that fit your budget need. It is companys strong relationship with global and regional carriers to work for you to create the optimal service solution for all your FCL shipments. Working in close tandem for many years with major world-wide shipping lines has given Yusen Logistic sufficient space allotments at competitive rates and cross-continental routings with fixed and reliable transit times.

 Less-than-Container Load (LCL) Yusen Logistics can consolidate the goods to help reduce total transportation costs while ensuring that the cargo is handled with the utmost care and attention until it reaches its destination on time. The companys comprehensive control, visibility and flexible routing options also create the perfect solution for global shipping service aimed at smaller LCL shipments. The company provides its own dedicated consolidation services to most key worldwide destinations with multiple consolidation hubs and offices. This benefits you through cost-effective and highly efficient loading operations and services.

 Supply Chain Solutions Yusen Logistics provides holistic end-to-end solutions to achieve sustainable improvements, overcoming today's challenges that arise from complex supply chains. These four key components form the basis of its international supply chain solutions: Purchase Orders and Vendor Management Control Tower Lead Logistics Supply Chain Optimisation/ Re-engineering Purchase Order and Vendor Management Purchase Order (PO) and vendor management are key factors in our handling of international supply chains and customer's foreign sourcing strategies. Yusen Logistics' web-based system captures customer shipment information from upstream origins through the supply chain all the way to the destination while still

being able process huge numbers of PO down to the SKU-level.

Control Tower

The company serve as your effective global control tower. Yusen Logistics centrally manages all partners and ensures that they are working according to the scope and level of service that has been clearly communicated, commonly understood and mutually agreed upon. All partners' performance is constantly being monitored against pre-defined standards under a single management centre to create exceptional oversight capabilities which drive continuous service level improvements.

Lead Logistics Provider Yusen Logistics oversees the entire global operations. Its expertise allows us to source key suppliers based on your core process requirements. As your trusted single international point of contact, it effectively manages multiple outsourcing partnerships for your company. Its advanced technology creates new paradigms of flexibility to meet all needs with total visibility that optimises our vast cross-continental logistics networks. Supply Chain Optimisation/ Re-engineering Continuous improvement... That's the only way for you to achieve sustainable growth. Yusen Logistics' analysts help you to optimise your existing supply chain through logistics modelling and simulation. The company is always on top of the latest market trends and best practices, to help you re-engineer your business processes and enhance your supply chain network to attain long-term sustainable improvements.

 Temperature-Controlled Services Yusen Logistics offers you world-class quality and reliable temperature controlled services. Its dedicated vehicle fleet with temperature-control capabilities safely delivers your cargo to the destination in perfect condition. Its strictly monitored cold chain storage facilities also maintain your goods in the best possible condition at all times. Cargo requiring maintenance at specific temperatures must be handled with extra care during every stage of the entire shipping process. For this reason Yusen Logistics has established the industry's finest comprehensive quality check and reporting procedures to avoid any errors, delays or disruptions in the shipment. The company offers a one-stop-shop service with experienced logistics specialists located at the points of origin as well as at the destinations, to

create seamless door-to-door deliveries and full visibility throughout the entire global supply chain. Project Logistics Yusen Logistics customises solutions to handle your cargo in a timely and cost efficient way. Its Special Project Group experts are gearing up to provide you with comprehensive global project consultations as well as planning and implementation. It offer tailor-made solutions along with safe transport of large-scale projects for different industries, including mining, construction and infrastructure, petrochemical and energy, industrial plants, transportation system, forestry and other sectors. With our best practices and innovative proposals, Yusen Logistics helps you overcome challenges and delivers your shipments ahead of schedule. We also provide comprehensive international services for a wide range of heavy lift and oversized cargo:

Project and heavy cargo for petrochemical/energyrelated plants, power plants, and transportation equipment Bulk cargo for steel products, pipelines, nickel, aluminum, salt, iron ore, manganese ore, coal, nonferrous ores, fertilizers, and animal feed Forest products like timber, plywood, pulp, and paper Machinery, vehicles, yachts, and plant equipment Customs Clearance / Brokerage

Yusen Logistics serves as your global customs clearance agent and partner, handling all administrative tasks and formalities for you while offering a wider range of comprehensive customs-related services. Its expertise and experience in the field of international customs clearance has allowed us to nurture excellent solid relationships with customs authorities across the globe. We provide the very best arrangements for your shipment and ensure that it complies with all local regulations and customs requirements. Its in-house

technology also allows complete visibility throughout the supply chain to help speed up the entire customs clearance process Consultancy (Compliance) Today's expanding operational capacity of businesses and their geographical footprints have made supply chains more complex and challenging to manage. Yusen Logistics helps you to properly address all issues that may arise while mitigating all supply chain risks and vulnerabilities throughout the global supply chain. Its experienced supply chain professionals are ready to provide end-to-end solutions from consultancy, planning and strategic development to supply chain execution and monitoring. They customise solutions that best fit your needs to ensure that all compliance requirements are fulfilled. This helps accelerate your company's profitable growth prospects.

Export Procedure

1. Booking & Confirmation In this step, the client comes to the company to book a shipment for freight forwarding. The client can be either shipper or consignee. After finalizing the quotation rates and all other terms, booking will be confirmed after t client provides the required documents (Invoice, Packing list, Certificate of Origin, Measurement Certificate in case of LCL). The invoice should contain following informations about the shipment such as: a) Invoice No. & Date b) Price of the shipment(value) c) Unit Price d) No. Of Packages e) Gross Weight f) Net Weight g) Payment Terms h) Name and contact of the shipper i) Name and contact of the Buyer j) Notify party

k) Transportation Mode l) Description of the cargo m)Marks and Nos

Packing List is a necessary document which is needed in every shipment. Each item must be itemized according to the packing list and purchase order. It should contain the following information a) part description b) part number c) serial number(if applicable) d) quantity e) country of origin f) HS code g) Certificate of analysis Certificate of origin is a document used in international trade. It is a printed form, completed by exporter or its agent and certified by an issuing body, attesting that the goods in the particular shipment have been wholly produced, manufactured or processed in that particular country. Some Preferential treatments are given to the shipment with COO with countries or unions with whom the exporting company has Free Trade Agreement (FTA).

Incoterms play a major role in international shipments all over the globe. The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of commerce. . A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretations of the rules in different countries Rules for Any Mode(s) of Transport

The seven rules defined by Incoterms 2010 for any mode(s) of transportation are: EXW Ex Works (named place of delivery) The seller makes the goods available at its premises. This term places the maximum obligations on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a seller has the goods ready for collection at his premises (works, factory, warehouse, plant) on the date agreed upon. The

buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. The seller doesn't load the goods on collecting vehicles and doesn't clear them for export. If the seller does load the good, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. FCA Free Carrier (named place of delivery) The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier. CPT - Carriage Paid To (named place of destination) The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier. CIP Carriage and Insurance Paid to (named place of destination) The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier. DAT Delivered at Terminal (named terminal at port or place of destination)

Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal. DAP Delivered at Place (named place of destination) Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer. DDP Delivered Duty Paid (named place of destination) Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the buyer. The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are: FAS Free Alongside Ship (named port of shipment) The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. Suitable only for maritime transport but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or bulk cargo. FOB Free on Board (named port of shipment)

The seller must load the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel (this is a new rule). The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (sees Incoterms 2010, ICC publication 715). The buyer must instruct the seller the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three decades ever since Incoterms 1980 explained that FCA should be used for container shipments. CFR Cost and Freight (named port of destination) Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel (this is a new rule). Only Maritime transport and Insurance for the goods are NOT included. This term is formerly known as CNF (C&F). CIF Cost, Insurance and Freight (named port of destination) Exactly the same as CFR except that the seller must in addition procure and pay for the insurance. Maritime transport only.

2. Container pick up & stuffing After the booking with the shipping line, they will hand over us an empty container. Then the stuffing can be done either in a) ICD b) Factory If the container is to be stuffed in factory, then the exporter should be a Custom House Agent to put the custom seal and the transporter will carry the line seal with him and will seal the container after the stuffing is done.

In the other case the shipper will bring the cargo to ICD where the customs will verify all the original documents and physically inspect the goods before sealing the container with line seal and custom seal.

After the custom clearance is done and shipping bill is generated. The documents needed to be enclosed in shipping bill are: a) Invoice b) Purchase Order c) GR Form in duplicate d) Exporters declaration regarding correctness of the value, goods, etc The original shipping bill is kept with the customs and the rest of the copies are returned to the exporter or CHA. While stuffing the goods into the container, some things should be kept in mind like: i. ii. iii. iv. v. vi. vii. Distribute the weight of the cargo evenly over the entire length and width of the floor of the container. Place the heavy goods at the bottom of the container and lighter on the top Fill the spaces between cargo and container sides Secure the cargo at the bottom sides and front of the container Accord block stowage to bagged cargo to protect against shifting Place package containing liquids on a double tier of dunnage to reduce damage due to leakage Use international labels to mark the containers loaded with hazardous cargo

viii. ix. x.

Keep the centre of gravity of the cargo as near as possible to the centre of container, Otherwise notify your carrier Keep within the load limits Close and seal container doors or roof covers

3. Inland Transit After the customs clearance is done and the container is handed over to the shipping line. It makes sure the container reaches the POL through rail before the port cut off. To make the rail out, first a booking is done with CONCOR (Container Corporation of India) which will transport the container to the concerned port before the port cut off. The documents needed for rail out are: i. ii. TR1 Form TR2 Form

4. ACD For certain countries an ACD (Advance Cargo Declaration) has to be filed 72 hrs before vessel is to be sailed out. Only after the ACD is filed the cargo can be loaded on to vessel. Countries like USA have their own system of ACD which they call Advance Manifestation System (AMS) and European Union has their own manifestation system. The compulsion for Advance Cargo Declaration was made compulsory in some countries after the 9/11 attack on USA. It aim was to strengthen the global maritime security.

5. Loading on Vessel After the cargo reaches the port and enters the gateway of port. It is stored in the container yard of the port and then when then the times comes it is loaded onto the vessel. After the containers are loaded and checked. The captain will issue the Mate Receipt to the Liner which then will issue the Bill of Lading Bill of Lading is a legal document which serves as the receipt for shipment between shipper and the carrier. It provides the following information: i. Shippers name and contact

ii. iii. iv. v. vi. vii. viii. ix.

Consignees name and contact Notify Party Description of goods No of Packages Total weight Volume Vessels name and Voyage no. Container No.

The Bill of lading is released as soon as the vessel sails out for the destination.

6. EGM filing Just as the vessel sails out, EGM is filed by the liner to the customs. It contains information like : Shippers name and contact Consignees name and contact Vessel name and voyage no. Waybill No. HBL No. Container No. Description of Cargo

 No of package Gross Weight Volume

Import Procedure

1. Transit Time Transit time is the time taken for the goods to move from one place to another place. There various global routes available to India from major ports all over the world. The Transit times from major ports all over the world to India are: New York to Nhava Sheva: - 22 days Hamburg to Nhava Sheva: - 29 days Rotterdam to Nhava Sheva: -25 days Ningbo to Nhava Sheva: -13 days Ghonzhou to Nhava Sheva: -13 days Kobe to Nhava Sheva: -27 days Gdynia to Nhava Sheva: -27 days Barcelona to Nhava Sheva: -29 days Sao Paulo to Nhava Sheva: -35 days

2. IGM filing Before the vessel arrives at the destination port, Import general manifest is filed by the liner which is matched by the export manifest by the customs. The IGM will contain the information like: i. ii. iii. iv. v. vi. vii. viii. ix. x. Consignee Name and Contact Shipper Name and Contact Vessel Name and Voyage Waybill No. House B/L No Container No. Description of Cargo No of Packages Gross weight Volume

3. Vessel Arrival As soon as the vessel arrives at the gateway of the port, the Gateway Import general Manifest (GIGM) is filed by the customs. As soon as the vessel is berthed the containers are loaded off and kept in container yard of the port. Then Sub Manifest Transhipment Point (SMTP)

4. Rail Out After the SMTP is filed, the container is railed out to the final point of destination (FPD). One of the transhipment copies is given to the railway authorities and the railway authorities will be responsible for the safety of the containers until they hand over the containers to customs at ICD.

5. Custom clearance and destuffing On the arrival of the container in ICD, the railway authorities will present the sealed cover to the custom officer at the ICD. The particulars of the containers, seals etc will be checked up with reference to the transhipment permit received and the transhipment permit shall be suitably endorsed

If the seals of the container are intact at the gateway port and also on the receipt at the ICD, Shipping line or the shipping agent wont be liable in case of shortages or mismatch. But when the container has been moved from the gateway port with seals intact and is found with seals tampered then the Railways will be liable to the shipping line or steamer agent. Before the destuffing of the container, a security is given to the shipping line according to the Factory Destuffing Bond (FDS) and then the Delivery Order (DO) will be released. The containers will be destuffed at the ICD, in the presence of the custom officer, a representative of the steamer agent and representative of the railways. The packages, chests, boxes ,bales would be tallied and marks and numbers would be compared with reference to the manifest any shortages noticed at that time will be recorded and certified by the custom officer on both copies on manifest. The clearance of the goods for home consumption from the ICD will be on the basis of bill of entry to be filed by the importer at the ICD, which will be noted against the copy of the sub-manifest followed up by classification, assessment, payment of duty, and examination etc. 6. Empty Container handover

After the destuffing of the container, the empty container is handed over to the shipping line and the security is refunded if there is no damage done to the container. If some damage is done then that amount is deducted from the security and rest is returned.