Professional Documents
Culture Documents
Finishing work at
Another unit
receipt despatch
Customer
vendor storage production storage Dealer
unit
Warehouse
transport transport
Temporary
storage of
Semi-finished
product
Receipt & Despatch
RECEIPT
Receipt of trucks ,ships, rails etc in a nominated area or
location.
Unloading of individual truck , wagon or ship.
Storage of the goods unloaded.
Weighment of the goods.
Sampling of the materials received.
Documentation for receipt of goods.
Documentation for storage of goods.
Communication to all concerned about the receipt of
goods.
Despatch
Receipt of trucks ,ships, rails etc in a nominated
area or location.
Weighment of the goods.
loading of individual truck , wagon or ship.
Storage of the goods to ensure uninterrupted
loading.
Sampling of the goods that are loaded.
Documentation of despatches, storage,
weighment, & samples.
Communication to all concerned about the
despatch of goods.
Activities performed under material
handling
The loading & unloading of trucks, wagons or
ships.
Waiting space for trucks, wagons or ships.
Adequate storage space.
Weighment facilities.
Sampling facilities.
Documentation & communication system.
Handling Methods
that area
Potential of further expansion
Imported consignments
Indigenous consignments
Marine Insurance Policy
A policy is obtained to cover approximate
value of a consignment to be received by sea,
air and post in a year plus 70% of the value to
cover custom duty , freight and other overhead
expenses.
Monthly statement regarding shipment receipt
are send to the insurance with the following
particulars
Purchase case number and date
Number of packages
The name of vessel
The port of shipment
The sum to be insured in Indian currency
On receiving the monthly statement, the
insurance company calculates the premium
account to be paid and send the bill. On
receiving the payment, certificate is issused
indicating that consignments are insured.
Imported consignments
Carriers are bound to delivered the goods in
condition in which they were tendered for
carrige. They are liable to make the loss or
damage occurring while the consignment is
under their custody.
When cargo is discharge, the consignee must
examine the goods thoroughly. If there is any
loss or damage, an application to the
steamer’s agent must be made for the survey
and this survey must be conducted within 3
days from the date of landing of goods. In
case the steamer survey is not granted by the
steamer agent, the reply to that must be
obtained from the steamer agent by the
consignee.
Filling claims with carriers
As soon as steamer survey report is obtained, the claim
for the loss or damage must be preferred, supported by
the following documents.
Claim bill in triplicate (3 copies).
Invoice and Packing list.
Bill of lading.
steamer survey report .
landing remark certificate from the Port Trust.
claim is to be settled with in one year
from the date of arrival of streamer.
Filling claims with insurance
company
. If the claim is not settled within the 6 months with
the steamer agents then it should be brought in the
notice of insurance company The documents to be
sent to the insurance company are :
1. bill of lading
2. invoice and packing list
3. Correspondence with streamer agents
4. survey reports
If the consignment is landed but missing in docks, a claim must
be put against the Port Trust and Landed But Missing
Certificate should be obtained. The insurance company should
be achieved immediately with the following documents:-
Name of the streamer
Bill of lading (their number and date)
No. of packages missing.
Marks and numbers.
Policy number
Invoice value
Date of discharge
Claims for packages in sound
condition
If consignment is received in sound condition but if
there is a shortage then the consignee must
immediately refer the matter to the supplier to make
proper loss. Such cases should be surveyed if the loss
is to be more than Rs.500. As soon as the liability is
admitted by the supplier, the consignee must
withdraw the claim put with the insurance company.
Consignee must immediately put a claim with the
custom authorities for the refund of appropriate
custom duty. Claim to be put within six months for
refund of appropriate custom duty.
Claims for air consignments
Airlines are responsible for the loss and
damage to the goods under their custodies.
The rest of the steps of the claim are same as
of steamer agent.
Claims for postal consignments
Claim for the loss should be put within one
month from the date of the delivery of the
parcel with the postal authorities at the
destination. In case of non-receipt of parcel,
claim should be put within 3 months from the
date of booking. The monetary claim should
be submitted to the insurance company with
following document:-
Copy of bill of entry.
Customs examine certificate.
Official stamp of survey fee paid.
A copy of the bill of lading.
Invoice and packing list.
Insurance certificate.
Documents showing the exact value of loss.
Payment of claims is made by Indian
Insurance Companies only in Indian currency.
Generally the claim against insurance
company in respect to imported consignments
may be categorised as follows:
1. claim for damages.
2. claim for shortages.
3. claim for short landed consignments.
4. claim for landed but missing consignments.
Indigenous Consignments
In this ,action has to be initiated in the same way as
for imported consignments. The supporting
documents to be furnished to the insurance company
are:
Invoice .
Certificate of the loss obtained from the carrier.
Survey report.
Official stamps receipt from the surveyors .
Insurance particulars such as policy number.
Documents showing the exact value of loss.
In case of the claims with the railways it
should be put within the 6 months from the
date of railway receipt as laid down in section
78 B of Indian Railways Act. If the entire
consignment is not receipt at the destination
from over 2 months after the date of booking,
the consignee should write to the railways
under whose zone the destination station is
situated.
If the consignment is received in damage or in
open condition, the consignee should asked
for the open delivery assessment to the Chief
Commercial Superintendent of the destination
railway for the survey. The Chief Commercial
Superintendent will have to give the survey
report with the 3 days.
Freight Rate Structure
Freight rates for any mode of transport are
based on the following principles:
Fixed cost.
Variable cost
Public use (material for public daily use will be
carried at lower rates than others)
Government policy
Reasonable profit
Booking of goods by Road
Forwarding note : This contain the information on
the consignor & consignee,
packing condition
The carrier is supposed to examine the
forwarding note and the nature of goods
offered for despatch , work out the distance he
would have to cover to deliver the goods and
quote a freight rate for transport. If this rate
and other conditions given by carrier are
accepatable to the owner of the goods, the
forwarding note is accepted by the carrier and
a contract is deemed to have been arrived at.
Goods Consignment Note : this note is
issued by carrier. It gives the details of the
goods accepted for despatch , the rate of
transport charge, the total freight. It also
mentions whether transport charges are pre-
paid or payable at destination. On the back of
this note terms and conditions are printed ,
taken from Common Carrier Act 1880
Selection of a Carrier
Constitution of the carrier firm.
Carrier’s business turnover.
Carrier’s area of operation.
Carrier’s branch offices.
Number of truck owned by Carrier.
The name of clients currently served by Carrier.
Normal transit time.
References from other companies.
Expedition with which claims for damages/shortages etc are settled.
The nature and value of the contracts with other companies
Setting Claims with road transport
A claim must be filled in writing within 7 days after taking the
delivery of goods. The claim may be filled with the carrier
issuing G.C. note.
In case of non-delivery the claim must be filled within 60
days after a reasonable time for delivery has been closed.
Suits for the claims must be filled in the appropriate court
with in 9 months and 1 day from the day a notice in writing is
given by the carrier that the claim has been disallowed.
A claim must be filled with in 6 months of booking. No suit
lies against the carrier in respect of consignment without a
claim in writing have been filled first.
In deciding the claim for damages, a carrier gets the
benefits of any insurance that may have been taken
by the owner of goods.
The value of goods to be paid is equals to actual
value of the goods or their invoiced value, or that
written in the dispatch documents.
The storage of the goods in Transporter’s warehouse
is at the owner’s cost expect when the negligence of
the carrier is proved. The carrier is authorized to
recover the cost of repairs, expect when the
negligence of the carrier is proved.
Freight rate Structure
(Rail transport)
1.Class Rates:- In this commodities are classified
into different classes. The class rates per quintal for
certain distances are fixed These rates are less for the
longer distances.
2.Special rates:- These are the subsidy rates for
defense material, exist at subsided rates.
3.Station to Station rates:- They are fixed rates to
meet the competition from other sources of
transportation. There is no reduction in the first 150
km. Also there is no reduction in the rates for
petroleum and other hydrocarbons oils.
Freight rate Structure
(Air transport)
General Cargo Rates (GCR):- These are the rates
which are fixed or weight upto 45 kgs.
Class rates :- discounted rates for certain classified
items. E.g. valuable cargo, live animals etc.
Specify commodity rates:- These are the heavily
discounted rates applicable directly between two points
for e.g. Delhi to Frankfurt , Delhi to Sri Lanka.
Govt. Mandatory Rates:- These rates offer incentives
to export of certain commodities. For e.g. Indian Govt.
has directed low rates for the export of leather from India
to various countries in Europe and for USA also.
Freight rate Structure
(Sea transport)
Factors while making tariff structure
character of cargo.
Volume of cargo
Availability of cargo
Competition from other carriers
distance
fix charges
Insurance
port charges/facilities
Factors that must be considered
before Exporting goods by Sea
1. Packaging : following things should be in
mind :
Packaging to be of minimum dimensions
There should be optimum utilization of space
within the package.
Goods with different freight rate should not be
packed together in a one package.
Marking :
company name .
location to send
quantity
number .
Import/export licence number.
DTO will issue the permit under the form 32/33 that is
Certificate of Insurance
Certificate of Registration
National Permit
Taxation