Final Report SOHAM

A project report on Study of Export-Import procedure & documentation
In Partial Fulfillment of the Requirements In PGDM Programme
Guided By: Submitted By: Prof. Rajsee Joshi (Internal) Submitted By: Soham Patel
(P1033)
BATCH: PGDM 2010-12
N.R. Institute of Business Management, GLS Campus, Ahmedabad 380006
Project Report On Import-Export
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PREFACE:I did my summer training WINDSOR MACHINES LIMITED, AHMEDABAD. I completed my summer training for 60 days. I got training in the study of Import-export. Hence I am presenting the training report of Import-export. All the mistakes and
problems had been carefully removed with the help of all the managers. So I am thankful to all the managers of WINDSOR MACHINES LIMITED. The demand for managements professionals is increasing day by day. In such a competitive nearby it becomes a requirement to have an edge over others and PGDM is such a course, which helps and assists students in doing that. The practical studies are emphasized in PGDM, which helps the students in practically applying their theoretical knowledge. It helps us to face competition, builds up our confidence and also add something to our personality. Over and above in this fast moving economy, here practical studies play an important role in our carriers. The Import-Export Project I undertook was of great help to me attract my practical knowledge about analyzing a companys Import-Export documents. Thus, this project helped me a lot learning new concepts thus enhancing my practical knowledge.
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ACKNOWLEDGMENT:After I complete my 2nd semester curriculum. I went for summer training for 60 days duration. I would like to give heartily thanks to my college N.R INSTIUTE OF BUSINESS MANAGEMENT. I am extremely thanks to Guided by Prof. Rajsee Joshi (Internal) for his helpful co-operation, inspiration, interest and valuable guidance in preparing this project who have given us an opportunity to learn something practical apart from books by including the in our PGDM Programme. I would like to express my most sincere thanks and gratitude to External guide Mr. V. Sudhagar (Assistant Manager EXIM)who has given a good support to grab the external exposure and to complete a project in WINDSOR MACHINES LIMITED, AHMEDABAD. I give my sincere token of thanks other staff member in company who has gathered me the wisdom of knowledge in my project.
Thanking you, Soham M Patel PGDM
Date: Signature:
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EXECUTIVE SUMMARY:The Grand project that we have chosen is to study of Import-Export procedure & documentation In that when the company receives the order, the production departments made the production department made the production according to design send by the purchaser and complete the order. After that when production is completed, I have to make some preshipment documents and post shipment documents and submit it to the bank for conforming the payment from purchaser. And these all documents I have to prepare before the date that is mentioned in order. In export when we receive the order from any party, we have to complete the order before the date that is mentioned in order. And for completing this order if it requires importing some spare parts to make the final production, I have to prepare documents for taking credit and paying it to the party. And these all will be completed before the time. The import and export transactions which have been place currently through LC and forward contract, buyers credit were identified, analyzed and interpreted.
Abstract or summary My project is related to export and import, so basically the below mention task: About export procedure .i.e. How to make export? How to prepare export documents? What documents is required for export? How to keep the export records? How to import the spare parts and material? Which documents need to be prepared for import? How to keep import records? How to prepare import documents?
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TABLE OF CONTENTS:Sr. no Chapter-1 Particular RESEARCH METHDOLOGY 1.1 Need of research 1.2 Scope of research 1.3 Significance of research 1.4 Research methodology Chapter-2 Industry Profile 2.1 Introduction 2.2 Analysis Chapter-3 Company profile 3.1 Basic Information 3.2 Company History 3.3 Company History 3.2 3.4 Milestone of the company 3.5 Three state of art production 3.6 About products Chapter-4 Introduction to Import-Export 4.1 What is Export? 4.2 What is Import? 4.3 Objectives 4.4 Risk Involment In Export & Import:4.5 Regulatory bodies:4.6 Details 4.7 Export-Import Policy Page no. 7 7 8 9 10 11 11 12 16 16 18 19 20 22 23 25 25 25 26 27 28 29 30
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4.8 Manufacturing cycle Chapter-5 Export Procedure 5.1 How to generate the export inquiry? 5.2 How to export? 5.3 Pre-order activity 5.4 Post-order activity Chapter-6 Export Documentation 6.1 Which documents are necessary for making export? 6.2 Export figure and data interpretation Chapter-7 Import Procedure 7.1 Import of machines/ materials 7.2 How to make import? Chapter-8 Import documentation 8.1 Import figure and data interpretation Chapter-9 Export-Import 9.1 In case of export or import, how to make the payment 9.2 Comparison between Import and Export for the year 2009 9.3 Comparison between Import and Export for the year 2010 Chapet-10 Conclusion / Suggestion
21 24 24 27 29 41 42 42 47 51 51 52 54 54 57 57 59 61 63
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Chapter -1 RESEARCH METHODOLOGY:-
1.1 Need of research:Imports and exports form part of a countries' international trade, and international trade is an important means by which countries build up its reserves of foreign currency.
Generally speaking, countries import goods primarily to satisfy a demand for the good that is not produced within it self. For example, an industrialised country may import agricultural products, while an industrializing country may import high-value consumer electronics. Countries may also import goods in order to provide consumers with greater variety, and increase competition in the local market.
From an economic standpoint, increased competition is usually favorable as it tends to improve the quality of goods and services, while lowering its market price.
A country's exports allow the goods produced in the country to be delivered to a larger market. The ability to tap into greater demands allows for expansion of the scale of production. A larger scale of production then allows the suppliers to tap in favorable economies of scale that lowers the per unit cost of production, lowering market prices, ceteris paribus.
Additionally, the sale of exported goods is often an important source of national income for the exporting country.
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1.2 Scope of research:-
There is enough scope in import-export management. Present globalization encourage this business. Every nation have to do this for their consumers. No country produces all goods / services they need. There are many fields in this management say shipping, supply chain, C&F etc involved with this.
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1.3 Significance of research:-
Import and export has been an integral part of our lives for a very long time. Even before the United States was in existence, Europe was implementing the import and export of goods between them and other countries, which eventually led to the early stages of global sourcing and multinational purchasing on a smaller scale.
Global sourcing in import and export practices is just as important as the multinational purchasing that comes with it. Without global sourcing, multinational purchasing would not be possible since global sourcing involves the identifying of alternate supplier choices and taking advantage of the different kinds of talent that are out there on the market.
Multinational purchasing, on the other hand, entails that products are acquired from various international import and export practices. One company may have import and export agreements with several different international corporations in order to assemble products that will be distributed to consumers of other business. This makes import and export practices as a result of multinational purchasing an integral part of a global economy.
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1.4 Research methodology:In order to collect the reliable information, the necessary data will be collected with the help of different sources of Primary data Secondary data
Primary data: - A primary source of information is the source of information through which information is obtained is first hand i.e. from interviewing the officials at WINDSOR MACHINES VATVA, various reports. Secondary data: - Secondary source of information provides the information which is used by some other researcher but still it is useful as a reference for the study in some other research work. Under this source, text books, past project reports, published journals, websites, etc will be used.
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Chapter-2 Industry profile:-
2.1 Introduction:Plastic products are made from polymers such as polyethylene (PE), polypropylene (PP), polystyrene (PS) and polyvinyl chloride (PVC). They are widely used in household items, pipes, packaging films, bottles and containers, woven sacks, plastic furniture, moulded luggage, wire and cable insulations, and electronic and electrical items. Plastic products are classified into four segments: extrusion (71 per cent), injection moulding (20 per cent), blow moulding and roto moulding (together 9 per cent). Currently, there are about 35,000-40,000 plastic processing units in India, most of which have only 2-3 machines each. The plastic processing industry`s consumption of virgin polymers (PE, PP, PS and PVC), in 2009-10 was estimated at 6.67 million tonnes. Domestic demand for plastic products, during 2009-10, witnessed a robust growth of 15 per cent mainly driven by strong demand from end-user industries like packaging, construction and automobiles. The government`s support in the form of tax sops, antidumping duty and lower customs and excise duty on polymers has been a positive for the industry, However, laws such as the Jute Packaging Materials Act (JPMA), which encourage the use of jute in packaging, have affected the demand for plastics.
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2.2 Analysis:-
A. Industry Structure and Development.
The Industry for Plastic Processing Machinery in India has shown a growth of 12%. This Company is engaged in manufacturing of Plastic Extrusion Machinery, Injection Moulding & Blow Moulding Machinery.
In the field of Extrusion Machines 2009-2010 has continued to be a good year. During this year newly launched models have given an edge in the competitive market and this Company has ended with an excellent market share. Our strength in film plants technology from Germany which has been absorbed with license from Kuhne.
In Injection Moulding Machinery the increased demand for bigger machines continued fromthe moulded luggage, furniture and white goods industry. The Company will be launching energy efficient machines in the coming year which is expected to give tremendous turnover growth.
The developments in the industry are marked by manufacturing of more sophisticated machines this year also and emphasis on aesthetics and energy conservation.
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B. Opportunities and threats:
The application of plastics is increasing manifold to include various packaging, pipe fittings, white goods, automobile etc. In Injection moulding, the market generally for the consumption of plastic products in the house hold and furniture segments are fuelling the increase in newer capacities. Further, anti dumping duty on Chinese machines will augment the business for Indian manufacturers. In Extrusion Machinery also the demand is growing particularly due to Governments thrust on agriculture, telecom, construction etc.
Indian Plastic manufacturers have shown their competency to manufacture goods of Global acceptance thereby increasing the need to expand capacities. This has resulted in high demand for the Plastic Processing Machinery. The Companys focused action on manufacturing will enable it to further increase its market share.
The products of your Company have also been well accepted by the customers due to its performance and energy conservation capabilities. This Company has taken appropriate steps to incorporate new technology in the machines giving edge over competition in terms of lower operating costs.
Due to continued focus in Exports, we expect significant market share in over seas markets in coming years. This year, your Company participated in RIYADH Exhibition and made an outstanding impression and has received tremendous enquiries from prospective customers.
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C. Product-wise performance:
Rs. Crores Product Net Sales 2009-2010 2008-2009 (9 Months) Injection Moulding Machines Extrusion Machinery TOTAL 100.31 106.26 206.57 37.44 55.67 93.11
Previous periods figures are not comparable with the current years figures,as previous period is of 9 months, due to change of accounting year.
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D. Outlook :
As regards to Thane labour issues the High Court of Mumbai passed an order on 06thSeptember, 2010 endorsing the Industrial Tribunal order dated 22nd September,2005 and as per High Court order the Company had paid all the legal dues. The futureprospects will be to a large extent dependent on the overall economic scenario. On itspart the Company is taking necessary steps to ensure that its products are well acceptedby the customers in terms of performance and price competitiveness.
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Chapter-3 Company profile:-
3.1 Basic Information:Company Name Country Province/State City Street Address1 Street Address2 Business Type Windsor Machine Limited India Gujarat Ahmedabad 5403 Phase-Iv Gidc Vatva Supplier and Manufacturers
Windsor Machine Limited is one of the Indias largest plastic processing machinery manufacturer and exporter since 1964. Its a part of $180 million conglomerate The priamal Group of companies, having diversified interests into branded luggage modeling, branded toys and automobile component sector apart from plastic processing machinery manufacturing division having annual turnover of $34 million. Windsor has strong organizational back up of the flagship group companies like VIP INDUSTRIES, BLOW PLAST, HINODAY INDUSTRIES, etc. The company set up operations at Thane (near Mumbai) in 1964 under collaboration with R.H. Windsor of U.K in 1984, Klockner-Werke of germany made the company a part of its worldwide operations and renamed it Klokckner Windsor India Limited. Subsequent to the disinvestment of equity by klockner to Mr. Dilip G. Piramal in 1964, the company Project Report On Import-Export Page 16
acquired the status of being member of one of Indias business houses, the DGP group, and was initially named as DGP Windsor India Limited, year 2005 been renamed as Windsor Machine Limited.
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3.2 Company details:Director: Kishor Chandrakant Gupte Prakash Chadra Kunndalia Mahendra Kumar Arora
Additional director: Jayant Mahiendra Thakur Pushp Raj Singhvi
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3.3
Milestone of the company:-
1964 1984 1985 1988 1994
Commenced operations at Thane (near Mumbai) in collaboration with RH Windsor of UK Klockner Werke of Germany takes over and renames as Klockner Windsor India Limited Extrusion Business started at Vatva (Ahmedabad) Second plant for Injection Molding machinery started at Chhatral (Ahmedabad) Klockner disinvests equity to Mr.Dilip Piramal and company renamed as DGP Windsor India Limited
2005 2008
Renamed as Windsor Machines Limited Mr.Prakash Kundalia comes on board & sets the course for the future with a new vision and dynamic leadership
2009 2010
Participation in Plast India 2009, Delhi Turnaround of the company with more than 100% growth, crossing 200 crores mark and becoming profitable
2010-11
Poised for exponential growth - Technology Transfer Agreement signed with Italtech (Italy) for higher tonnage machines - Relationship with Kuhne strengthened, with manufacturing of First Hybrid machine - Participation in K-Show 2010, Dusseldorf, Germany
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3.4 Company History:The company was incorporated on 4th May 1963 as a private limited company under the name of Windsor Engineering Pvt. Ltd. It became a public ltd. company by virtue of section 43-A of the company's act, 1956 on 16th March 1964. The name was changed to R.H. Windsor (India) Ltd., on 14th, April 1964 & again to Klockner Windsor India Ltd. on 7th March, 1986.
The company signed on 26th February 1964 a commercial and technical collaboration agreement with R.H.Windsor Ltd of U.K pursuant to which the latter subscribed 51% of the paid up capital of the company. The factory at Thane commenced production in November 1964. The company manufactures plastics processing machinery viz. injection moulding machines, extrusion lines and blow moulding lines.
The collaborator company was taken over by Klockner Werke Group of Companies of West Germany in Sept. 1982. It is presently known as Klockner Ferromatik Desma GmbH which belongs to Klockner Werke Group.
The factory at Thane commenced production in November 1964. The factory at Vatva (Gujarat) started production of extrusion lines in November 1985 and the sale of machines commenced from Febraury 1986.
The company exports to several countries.
The company purchased from Klockner Ferromatik Desma GmbH the knowhow for the manufacture of ferromatik range of plastic processing injection moulding machines with solid state electronics and microprocessor controls for a lump sum payment of DM 250,000 (Rs 10 lakhs).
The company also signed a collaboration agreement with Klockner Ferromatik Desma GmbH for manufacrture of the DESMA range of machines suitable for processing rubber,
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PVC, and polyurethane (PU) materials with major applications in the area of manufature of shoe soles, boots and other rubber and PU articles. During 1987, the company negotiated with Klockner Ferromatik Desma GmbH for closed loop microprocessor control machines. Technology for integrated extrusion systems was imported and its production was established at Vatva factory.
With effect from 7-3-1986, the name of the company was changed from RH Windsor (India) Ltd. to Klockner Windsor India Ltd.
The company's proposal to manufacture packaging machinery in collaboration with an associates company of Klockner-werke AG was Still under negotiation.
In 1993-94, Klockner Ferromatik Desma GmbH sold their holding in Klockner Ferromatik Desma Ltd (KFDL) , UK, the promoters of the company The name of Klockner Ferromatik Desma Ltd, UK, has been changed to `DGP Windsor Ltd' Similarly, the name of the company is now changed to DGP Windsor India Ltd
2003 -Mr. D L Shah has resigned as Director and Mr. Alok M Tibrewala has been appointed as Additional Director. 2007 -Windsor Machines Ltd has appointed Mr. M K Arora as an Additional Director on the Board with effect from September 29, 2007. 2008 -Windsor Machines Limited has informed that The Committee at its meeting held on July 14, 2008 has appointed Mr. Anil Pareek, Chief Financial Officer, of the Company, as the Compliance Officer.
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3.5 Three state of art production:-
Thane Works Super built Area: 2200 sq.m
Vatva Works Super built Area: 29625 sq.m
Chhatral Works Super built Area: 34800 sq.m
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3.6 About products:Extrusion Machinery
Blow Moulding Machine
Injection Moulding Machine
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Our product address following application Monolayer and multi layer blown film plants and polypropylene film plants: For producing packaging films for polybags, snacks, milk, edible oil, water pouches and packaging, heavy duty films, agriculture films, silage film, heat shrink films and stretch cling films. Twin screw RPVC pipe plants and single screw HDPE pipe plants: For pipes for agriculture, irrigation, potable water supply, electrical conduits, construction and specialty pipes. Segmented Twin screw co rotating compounding lines: For manufacturing of master batches, colour plastic furniture compounds and electrical conduits, construction and specialty pipes. Extrusion coating and lamination plants: For lamination of woven sack packaging for bulk packaging for cement, fertilizer, food grain, agro sacks and tarpaulins, rain sheeting etc. lamination of paper and aluminum. Single & two colour pen barrel lines & two colour straw lines: For pen refills and small sizes tubes etc. Extrusion palletizing lines: For recycling of and making pellets/granules of the same from waste of injection and extrusion of all types of plastic. Blow Moulding machines: Fully automatic with PLC and MMI, high output, and with online neck bottom trimming of containers for finished bottles/containers. Range includes machines from 100ml to 100 liters bottles/ jerry cans/ container.
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Chapter-4 Introduction to Export-Import:-
4.1 What is Export?:The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an exporter who is based in the country of export whereas the overseas based buyer is referred to as an importer. In International Trade, an export refers to selling goods and services produced in home country to other markets.
4.2 What is Import?:The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an importer who is based in the country of import whereas the overseas based seller is referred to as an exporter. Thus an import is any good or service brought in from one country to another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country.
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4.3 OBJECTIVES:-
The objective of the project that is assigned to me is as follows: To know about export import process. To know what are the documents required before and after sailing the machines. To know different type of document used in Export-Import. To know the export figure and compare it with the last year. To know the import figure and compare it with the last year.
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4.4 Risk Involment In Export & Import: Price risk Time limit and payment system Fluctuation of exchange rate Multi model transportation( Sea / Air / Road / Railway) Packing / Labeling Legal formalities
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4.5 Details:-
The exports and imports activities contribute significantly towards the healthy growth of any economy. Imports imply bringing of goods into the country to fulfill the domestic need and when the country supplies surplus goods to foreign countries, it is termed as exports. When a wide gap between the exports and imports rate arises then serious economic problems like inflation and BoP (Balance of Payments) weakens the integrity of the existing economy. Thus to maintaining appropriate balance of trade between exports and imports the state authority has forged various types of legal frameworks in terms of different Acts and policies.
In India, there are several Acts and policies enacted to have a uniform practice in export & import trade practices. Among those Acts, Imports and Exports (Control) Act, 1947, Foreign Trade (Development and Regulation) Act, 1992 and ImportExport (EXIM) Policy 1997-2002 are few significant Acts and policies. The Imports and Exports (Control) Act, 1947 has been replaced by Foreign Trade (Development and Regulation) Act, 1992 to empower the central government to have more control on exports and imports activities.
The Foreign Trade (Development and Regulation) Act, 1992 has empowered the Government to: Enact provisions related to development and regulation of trades for domestic as well as international market. Restrict and regulate all forms of exports and imports in case of requirements and declare tariff exemption by accessing special needs. Announce an EXIM policy and its episodic amendment by notification. Authorize the concerned officials to issue 'Importer Exporter Code Number' (IEC) to the exporters and importers.
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4.6 Export-Import Policy:1. To facilitate sustained growth in exports from India and import in India. 2. To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, consumables and capital goods scheme required for augmenting production and providing services. 3. To enhance the technological strength and efficiency of Industry Agriculture industry and services, thereby improving their competitive strength while generating new employment opportunities, and to encourage the attainment of internationally accepted standards of quality. 4. To provide clients with high-quality goods and services at globally competitive rates. Canalization is an important feature of Exim Policy under which certain goods can be imported only by designated agencies. For an example, an item like gold, in bulk, can be imported only by specified banks like SBI and some foreign banks or designated agencies. 5. Additional benefit of 2% bonus, over and above the existing benefits of 5% / 2% under Focus Product Scheme, allowed for about 135 existing products. 6. Concessional Export Credit: Interest subvention of 2% for pre-shipment credit for export sectors namely, Handloom, Handicraft, Carpet and SMEs for all export sectors. 7. Exporters shall now have the flexibility to get a high value EPCG authorization by filing their EPCG application on Annual basis. 8. Finished Leather export shall be entitled for Duty Credit Scrip @ 2% under FPS. 9. Duty free import of specified trimmings, embellishments etc. shall be available on Handloom made-ups exports @ 5% of FOB value of exports.
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4.7 Regulatory bodies:1. Directorate General of Foreign Trade (DGFT) 2. Engineering Export Council of India 3. Forward Markets Commission M/o Consumer Affairs, D/o Consumer Affairs 4. Insurance Regulatory and Development Authority M/o Finance 5. The Competition Commission of India M/o Company Affairs
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4.8 Manufacturing cycle:RELEASE OF SJO/ SBOM FROM DESIGN TESTING
PLANNINGG
G
RELEASE MTO ENSURE MACHINE SPECS &ORDER FOR TESTING
MACHINE SHOP/ DIE SHOP
CHECK RAW MATERIAL
RELEASE WOS
PURCHASE-RELEASE PO EXISTING/NEW VENDOR RELEASE WOS & ISSUE PRINT PROCESS CONTROL AT VENDORS/FOLLOW-UP
PROCESS MATERIAL S STAGE ISPECTION/ FINAL INSPECTION
SJO-SALES JOB ORDER SBOM-SPECIFIC BILL OF MATERIAL MTO-MADE TO ORDER
ISSUE MATERIALS TO ASSEMBLY
BUILDS AS PER ASSEMBLY SEQUENCE ENSURE QUALITY BY WORKMEN/ SUPERVISOR OFFER FOR TESTING
WO-WORK ORDER GRN-GOODS RECEIPT NOTE PPR-PART PRODUCTION REPORT
REWORK NO
ENSURE SPECIFICATION AS PER SBOM

RELEASE FOR DESPATCH FROM SALES DESPATECH ADVICE PACKING DISTPATCH
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Manufacturing Cycle: When the company receives the order, they release the SJO (Sales Job Order) and also SBOM (Specific Bill of material) from design. After that they made a planning and they release MTO (Made of Order) and they also ensure machine space and also test the order release that order will be carried out by available machine or not. Then they check that how many materials they have in their store, so that they come to know that how many stock they have and they can make their purchase planning on that basis. So that material should not be wasted and properly utilized and idle investment are not made. And before releasing the purchase order they wail for week, because in that week they may receive some more order and for completing that order again they have to purchase the materials from outside. But as we have mentioned that before releasing the purchase order they wait for a week. And finally they combine their previous require and current require for materials and purchase the materials in a bulk, so that they get the benefit of bulk with a large discount. And for purchase the materials they go for more vendors, and finally they select one. And from them they purchase their required materials because their terms and conditions are favorable. Finally when they purchase the materials, before taking into use they verify that materials are according to their requirement or not. If materials are not according to their requirement or not. If materials are not according to their requirement they reject it and send it back to the suppliers. And if they find materials to be a good quality and according to their requirement they complete their final inspection have processed materials and send it to assembly. Than they build as per assemble sequence and ensure quality by supervisor and workmen. When they complete the order they offer for testing. If they ensure specification as per SBOM (Specific Bill if material) and they test the machine and conform to SJO (Sales Job Order). But if machine are not according to SJO or SBOM, they go for redesign and again verify. Until and unless machines are not made according to SJO and SBOM they work on that and complete it. A than they release for dispatch from sales dispatch advice. And at last machines are packed. And than it is dispatched to the respected party. And at last machines are packed. And than it is dispatched to the respected party. And than the process of production department comes to an end. And. Work of finance department includes giving after sale service. And finance
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department and sales and distribution department starts. The sales and distribution department includes giving after sale service. And finance department will have to collect the bill amount and maintain the books of account of each party and made the balance sheet at the end of the year.
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Chapter-5 Export Procedure:5.1 How to generate the export inquiry?:INQUIRY GENERATION
REFERENCE
ALL READY OUR CUSTOMER
EXPORT HOUSE
AGENTS/ CONSULTAN T
IDEBTYFY THE NEEDS
SENDING DATA
E-MAIL
FAX
PHONE
PERSONAL VISIT
CUSTOMER REPLY
SUPPORT TO CONVERT INQUORY IN ORDER
CUSTOMER REPLY
CUSTOMER REPLY
CUSTOMER REPLY
CUSTOMER REPLY
ORDER
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Before making the export, we need to have exported order and that is never possible without generating inquiry. And inquiry can be generating from following sources. Reference: Inquiry can be generated from references. Suppose we are in search of market where we can sale our product and from our past customers we get the references. And we can arrange the meeting with them and may create export order. All ready our customer: All ready into the field means they are all ready our customers and we have to make permanent deal with them. We have to retain them for a longer period of time so that we can develop our business. So, in that way inquiry can be generated. Export house: If we want to have complete information about export, we can get it from export house. In export house there are complete information about each and every transaction, about sender, about receiver, about product, about product, about country etc. so, by export house we can create export inquiry. Agent/consultant: For export promotion, company hired or keeps the contact with export agent or export consultant. From them company generate the export inquiry by giving commission or fees to them and develop the business. Identify the needs: After identify their requirement. What they will actually want or need, so that we can sale our products to them according to their requirement. Until and unless if we dont able to identify their requirements, how can we approach them. Sending the data: After identify their requirement, we have to select the suitable module to them. So that they can easily take the decision and able to give proper response to us. And if we dont send proper response to us. And if we dont send proper module to them it indicates our failure in identify their requirements. So we have to be very careful about it. We can send the data from the following mention criteria.
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E-mail Fax Phone Personal visit So, we can send them data by above-mentioned resources. Customer reply: When we send our information to any party, they get the idea about our products and in future if they will require the products and in future if they will require the products that we produce, than it may possible that they contact us and ask for quotation. And we can also do the following activity to convert the inquiry in order. Support to convert inquiry in order: While sending the information to any part, we make them confidence that we have enough employees, enough raw materials, enough raw materials , enough technical support and expert to complete the order. And we can also do the following activity to convert the inquiry in order. Test/ trial report Demonstration of machine Organization image Technical comparison with competitors We can also get the order by doing above mention activity. Order: After negotiation, the purchasing party gives the order to us. And now its our responsibility to care out the order in time and send to respected party. And according to order we start our production and when productions are complete, we made an export.
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5.2 How to export?:Marketing Across The National Boundaries
FIND THE MARKET
PROSPECT
ALL READY INTO THE FIELD
NEW ENTERANT
LESS AWERNESS
COMPLETE THE TARGET TO FIND THE CUSTOMERS
PRE-ORDER ACTIVITY INTRODUCTION ESTABLISH THE CONTACT UNDERSTANDING THE REQUIRMENT SELECTION OF SUITABLE MODULE SUBMITTION OF TECHNICAL AND COMMERCIAL OFFER FOLLOW UP NEGOTIATION ORDER INSPECTION ADVANCE RECEIPT ORDER RELEASE FOR MANUFACTURING TIMILY UPDATE TO CUSTOMER
POST-ORDER ACTIVITY
TRAIL
BALANCE PAYMENT COLLECTION
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Export means to sale goods or machines outside the country For export first of all we have to identify the market we can sale our products so that we can capture the international market. For that there are three prospects: All ready into the field New element Enough money but no idea All ready into field means they are all ready our customers and we have to make permanent deal with them. We have to retain them for a longer period of time so that we cam develop our business. New entrant means we havent made any deal with them in past because they are just run there business, they dont know anything about our products. So we have to make them aware about our products and introduce us with them. And slowly and gradually we make the good relation with them and develop our business. Enough money but no idea mean company running their business and earned handsome profit out of them but they dont have any idea about our products. So we make them aware that instead of purchasing the packaging and they can reduce their cost of production and earn handsome profit. For e.g. if AMUL DAIRY produce the milk and for packaging purpose they purchase polythene from outside, they can produce their own packaging by purchasing our polythene makes machine. When the target of finding the prospect comes to an end, we have to do certain pre-order activity and post-order activity.
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5.3 Pre-order activity: Before starting of our business with them we have to do certain pre-order activity as below. Introduction : This is the first stage of starting the business with any one. At these stage we have to introduce us, our products, our capability etc. and give the complete information to the party. Establishment the contact After introducing, we have to contact them and ask weather they interested in our products or not. Because if we dont even make any contact to them, how can we know about there interest. So until and unless we dont receive any proper response from them we keep on contact them. Understanding the requirement: After make the contact to them, we have to identify their interested their requirements. What they will actually want or need, so that we can sale our products to them according to their requirement. Until and unless if we dont able to identify their requirements, how can we approach them. Selection of suitable module: After identify their requirement, we have to select suitable module to them. So that they can easily take the decision and able to give proper response to us. And if we dont send proper module to them it indicates our failure in identify their requirements. So we have to be very careful about it. Follow up: Once we send them suitable module to them, we have to give enough time to them to think and after that we have to approach them in such a manner that they can easily deal with us, because it is a very crucial stage. If we dont follow them in a proper manner. Negotiation: Negotiation means two or more party agreed at a point, where there are win-win situations. This is very important stage before receiving the order, because after
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this stage the deal is going to be signed. So we have to negotiation with the party and convince them.
Order: After negotiation, the purchasing party gives the order, and now its our responsibility to carry out the order in time and send to respected party.
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5.4 Post-order activity:After receiving the order we have to do certain post-order activity as below. Advance receipt: After receiving the order, first of all we have to collect the advance payment from the party before starting of production. If we start the production before receiving the advance, it may possible to have a loss because of cancellation of order. So we have a loss because of cancellation of order. So we have to be a very careful about it. Order release for manufacturing: When we have received the advance from the respected party, we release the order for manufacturing, so that the production will be complete on time. Timely update to customer: Once we release the order for manufacturing, we have to watch on that because we have to watch on that because we have to inform to the party. Its our responsibility to timely updating to the customer. And we must keep in touch to the customer. Trial: When the production department completes the target of production and machine or order is ready according to the order, we have to trial that machines because if it is not according to the order, we have to bare the loss of rework. So we have to be a very careful about it. Balance payment collection: After testing the machine, we have to information to the purchasing party that your order is ready and inform to pay balance payment of their order. And we must collect the balance payment before sending the goods. Inspection: After collecting the balance payment, we have to make the inspection and at last we send the machine to the purchasing party. And after that we have to give after sales services for making the long-term relation with them.
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Chapter-6 Export Documentation:-
6.1 Which documents are necessary for making export?:Types of documents required for making the export as follow: Pre-shipment documents : they are as follow Custom invoice:Extended form of commercial invoice required by customs(often in a specified format) in which the exporter states the description quantity and selling price, freight, insurance, and packing cost, terms of delivery and payment, weight and/or volume of the goods for the purpose of determining customs import value at the port of destination. Custom packing list:Considerably more detailed and informative than a standard domestic packing list, it lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list forms. A packing list may serve as conforming document. It is not a substitute for a commercial invoice. A.R.E.-1form :It is essential that the excisable goods shall be exported after payment of duty, directly from a factory or warehouse. The condition of "payment of duty" is satisfied once the exporter records the details of removals in the Daily Stock Account maintained under rule 10 of the said Rules, whereas the duty may be discharged in the manner specified under rule 8 of the said Rules, i.e. on fortnightly or monthly basis, as the case may be. Project Report On Import-Export Page 42
Excise invoice cum challan:A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example: To be sold to a customer To be transferred to another of your plants
The excise invoice lists the goods that you have issued and states how much excise duty applies. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities. Export value declaration:Customs form completed and submitted by an exporter at the port of export, it is meant t serve two major purposes: (1) to provide information on amount, nature and value of the exports to the statistical office for compilation of foreign trade data, and (2) to serves as an export control document. In some cases, an export license and/or a certificate of origin is also required to be attached. Shipping bills:Customs document used where drawback is claimed, such as on goods exported or on dutiable goods transshipped or re-exported from a bonded warehouse. It serves basically as a statistical record. SDF (self declaration form):The self declaration form is a form in which we ask you to declare any criminal warnings, cautions and convictions that you may have and to agree to keep us informed of any subsequent warnings, cautions or convictions. Certificate of analysis / Test Report:An authenticated document, issued by an appropriate authority, that certifies the quality and purity of pharmaceuticals, and animal and plant products being exported. Letter of credit:L/C. A binding document that a buyer can request fro his bank in order to guarantee that the payment for goods will be tranferred to the seller. Basically, a letter of credit gives the seller reassurance that he will receive the payment for the goods. In order for the payment to occur, the seller has Project Report On Import-Export Page 43
to present the bank with the necessary shipping documents confirming the shipment of goods within a given time frame. It is often used in international trade to eliminate risks such as unfamiliarity with the foreign country, customs, or political instability. Proforma Invoice:An abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. Pro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importation. They differ from a normal invoice in not being a demand or request for payment. Purchase order:A buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties. A purchase order sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller.
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Post-shipment documents : Commercial invoice:A bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties. Governments that use the commercial invoice to control imports will often specify its form, content, number of copies, language to be used, and other characteristics. Packing list:Considerably more detailed and informative than a standard domestic packing list, it lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list forms. A packing list may serve as conforming document. It is not a substitute for a commercial invoice. Bill of lading:A contract between the owner of the goods and the carrier (as with domestic shipments). For vessels, there are two types: a straight bill of lading, which is non-negotiable, and a negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The customer usually needs an original as proof of ownership to take possession of the goods. Certificate of origin:The Certificate of Origin (CO) is required by some countries for all or only certain products. In many cases, a statement of origin printed on company letterhead will suffice. The exporter should verify whether a CO is required with the buyer and/or an experienced shipper/freight forwarder or the Trade Information center. Freight invoice:Alternative term for freight bill. Carrier's invoice for freight charges applicable to a shipment.
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Inspection certificate:Weight and Quality certificates should be provided in accordance with governing USDA/GIPSA regulations for loading at port and loading at source/mill site as appropriate. A certificate of origin certified by local chamber of commerce at load port and a Phytosanitary certificate issued by APHIS/USDA and Fumigation certificate are to be provided to buyer. Costs of all inspection, certificates/ documents at the load port are usually the responsibility of the seller.
Bank realization certificate:It is issued by the bank to the exporter through which can be realized its export proceeds in orderly manner.
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6.2 Export figure and data interpretation: Year wise domestic as well as export figure for the year 2009-2010 and 2010-2011. (In lacks) EXP.10-11 228.46 137.06 241.53 301.09 193.63 359.60 463.89 254.21 449.02 217.94 167.18 99.43 3113.04
Month April May June July August September October November December January February March Total
DOM.09-10 835.90 490.63 505.36 525.19 459.55 510.31 602.47 402.30 854.33 879.18 661.60 709.52 7436.34
DOM.10-11 826.12 751.91 575.15 727.49 753.67 641.80 613.27 411.98 478.68 578.10 688.82 965.27 8012.26
EXP.09-10 111.13 197.74 443.76 367.17 514.08 214.87 247.02 433.68 135.56 200.85 167.20 260.48 3293.54
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9000
8000
7000
6000
5000 DOM.09-10 4000 DOM.10-11 EXP.09-10 EXP.10-11 3000
2000
1000
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Total sales for the export year 2009-10 and 2010-11 including sales of domestic as well as export:
MONTH
DOM. SALES FOR 09-10
EXP. SALES FOR 09-10 3293.54
AMT. IN LAKHS 7436.34
8000 7000 6000 5000 4000 3000 2000 1000 0 DOM. SALES FOR 09-10 EXP. SALES FOR 09-10 AMT. IN LAKHS
MONTH
EXP. SALES FOR 10-11 8012.26
9000 8000 7000 6000 5000 4000 3000 2000 1000 0 DOM. SALES FOR 10-11 EXP. SALES FOR 10-11
AMT. IN LAKHS
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MONTH
DOM. SALES FOR 10-11 8012.26
8100 8000 7900 7800 7700 7600 7500 7400 7300 7200 7100 DOM. SALES FOR 09-10 DOM. SALES FOR 10-11
AMT. IN LAKHS
MONTH
EXP. SALES FOR 09-10
EXP. SALES FOR 10-11 3113.04
3300 3250 3200 3150 3100 3050 3000 EXP. SALES FOR 09-10 EXP. SALES FOR 10-11 AMT. IN LAKHS
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Chapter-7 Import Procedure:7.1 Import of machines/ materials:Ask for quotation from suppliers Quotation sends by supplier Send the order
Made of payment Remitted the necessary document to the bank
Shippers Performa invoice
Purchase order
Insurance certificate
From A-1 for import payment
Fund send by I.T
Send the shipment through Airport of shipper country to Airport of importer country with above documents
Send the documents to C.H.A for custom clearance Send the goods to factory with following documents
Bill of entry
Import invoice
Airway bills
Clearance bill
Send the tropical copy of B.E to bank against advance remittance Use the imported machines or materials
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7.2 How to make import?:Import means to purchase the goods or machines outside the country For making the import we have to do the following steps. Ask the quotation from suppliers These is the first step of import the spares, material, equipment etc. and at this stage we like to have more than one quotations for bargaining. If we have more quotation than we easily bargain with suppliers. And also we can purchase the higher quality goods reasonable price. Quotation send by supplier: When we ask the quotation from supplier by giving our Performa invoice, on that basis supplier send the quotation to us for getting the order from us. And stage we have to study all the quotation and finally select any one of them. Negotiation: Negotiation means two or more party agreed at a point, where there are win-win situations. This is very important stage before giving the order, because after this stage the deal is going to be signed. So we have to negotiation with the party and give order at reasonable price. Send the order After negotiating, we have to give the order to the supplier on the agreed price and terms. In that we have to mention the require quantity with its specification and also the time limit. Mode of payment: After giving the order, we have to make the full payment or advance payment for the starting of production. Until and unless we are not giving the advance to the supplier, they are not starting our order. So we have to make the payment to them and also submit them and also submit the following documents. Shippers Performa invoice Purchase order Insurance certificate
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Form A-1 for import payment Fund send by T.T or L/C After receiving the above mention certificate, they start the production and complete it before the date mentioned in order. Than they inform us about completion of our order and also ask about balance payment if any. Send the shipment: When we give the balance payment they send the shipment through their airport or ship to our airport or ship with above document. Document clearance: Suppliers send the goods to us with above mention documents for clearance from C.H.A (custom House Agent). Where C.H.A clear all the documents. Send the goods to factory: After clearing the documents by C.H.A., they send the goods to the factory with the following documents. Bill of entry Import invoice Airway bills or shipper bills Clearance bill Now, we receive our ordered goods with the above mention documents and we have to send the triplicate copy of B.E to bank advance against advance remittance and proof of import. Use the machine: After receiving the goods with the necessary documents, we can use the imported machine as per our requirement.
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Chapter-8 Import Documentation:-
8.1 Import figure and data interpretation: Year wise import figure for the year 2009-2010 and 2010-2011. (In lacks) Month April May June July August September October November December January February March Total 2009-2010 44.12 29.70 21.80 40.22 11.40 8.67 24.37 64.10 38.76 46.85 47.82 38.60 416.41 2010-2011 29.67 35.97 48.79 29.91 33.85 32.55 27.79 80.94 20.63 64.05 68.57 78.88 551.6
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2009-2010
450 400 350 300 250 200 150 100 50 0
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2010-2011
600 500 400 300 200 100 0
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Chapter-9 Import-Export:-
9.1 In case of export or import, how to make the payment:-
MODE OF PAYMENT
TELEGRAPHIC TRANSFER
LETTER OF CREDIT
Information required: Beneficiary s name and address Beneficiary s bank Beneficiarys a/c no. Beneficiarys swift code no. Payable at sight Usance L.C.
Including interest
Without interest
Information required
Beneficiary s name and address Beneficiary s bank Beneficiarys a/c no. Beneficiarys swift code no.
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In case of export or import, the payment is made by two ways as follows. Telegraphic transfer: In case of I.T (Telegraphic transfer), the total payment is made before receiving the goods. Letter of credit: In case of L.C (Letter of credit), the payment is made after receiving the goods.
What is include in I.T:

What is include in L.C:

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9.2 Comparison between Import and Export for the year 2009-10:-
IMP.09-2010 44.12 29.70 21.80 40.22 11.40 8.67 24.37 64.10 38.76 46.85 47.82 38.60 416.41
EXP.09-10 111.13 197.74 443.76 367.17 514.08 214.87 247.02 433.68 135.56 200.85 167.20 260.48 3293.54
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4000 3500 3000 2500 2000 1500 1000 500 0
EXP.09-10 IMP.09-10
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9.3 Comparison between Import and Export for the year 2010-11:-
IMP.10-11 29.67 35.97 48.79 29.91 33.85 32.55 27.79 80.94 20.63 64.05 68.57 78.88 551.6
EXP.10-11 228.46 137.06 241.53 301.09 193.63 359.60 463.89 254.21 449.02 217.94 167.18 99.43 3113.04
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4000 3500 3000 2500 2000 1500 1000 500 0 EXP.10-11 IMP.10-11
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Chapter-10 Conclusion / Suggestion:-
I have made my Project of export and import of WINDSHOR MACHINES. And I find it really tuff but very interesting because these would be totally new for me and also very large subject for me. There is no doubt about that WINDSHOR MACHINES LTD. Is totally concentrate in export of machines because to technically competitive in international market as a prime market place is the goal for them. And for that they are giving their more and more efforts and expansion. And I believe that within a coming year they will achieve it and become one of the largest plastic manufacturing processor international market.
After analyze everything about export and import, I find that they are going well with their export business. They have enough experts of export and international marketing and also a large number of workers to carry out the order in time. And to complete the any task in time is the indication of success. I have gone through all the details of export and import in depth including document, procedure, and month wise figure. And I find it all vary strong and enough for future growth and expansion. While going through the statistic and comparative study of export and import, I find that our company is exporting 110 times of import. And also I find that export figure is well in comparison of domestic sales.
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Final Report SOHAM

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A project report on Study of Export-Import procedure & documentation

In Partial Fulfillment of the Requirements In PGDM Programme

BATCH: PGDM 2010-12

N.R. Institute of Business Management, GLS Campus, Ahmedabad 380006

Project Report On Import-Export

Project Report On Import-Export

Thanking you, Soham M Patel PGDM

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

Chapter -1 RESEARCH METHODOLOGY:-

Project Report On Import-Export

1.2 Scope of research:-

Project Report On Import-Export

1.3 Significance of research:-

Project Report On Import-Export

Project Report On Import-Export

Chapter-2 Industry profile:-

Project Report On Import-Export

A. Industry Structure and Development.

Project Report On Import-Export

B. Opportunities and threats:

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

Chapter-3 Company profile:-

Project Report On Import-Export

Additional director: Jayant Mahiendra Thakur Pushp Raj Singhvi

Project Report On Import-Export

Milestone of the company:-

1964 1984 1985 1988 1994

Project Report On Import-Export

The company exports to several countries.

Project Report On Import-Export

Project Report On Import-Export

3.5 Three state of art production:-

Thane Works Super built Area: 2200 sq.m

Vatva Works Super built Area: 29625 sq.m

Chhatral Works Super built Area: 34800 sq.m

Project Report On Import-Export

3.6 About products:Extrusion Machinery

Blow Moulding Machine

Injection Moulding Machine

Project Report On Import-Export

Project Report On Import-Export

Chapter-4 Introduction to Export-Import:-

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export

4.8 Manufacturing cycle:RELEASE OF SJO/ SBOM FROM DESIGN TESTING

MACHINE SHOP/ DIE SHOP

CHECK RAW MATERIAL

PROCESS MATERIAL S STAGE ISPECTION/ FINAL INSPECTION

SJO-SALES JOB ORDER SBOM-SPECIFIC BILL OF MATERIAL MTO-MADE TO ORDER

ISSUE MATERIALS TO ASSEMBLY

WO-WORK ORDER GRN-GOODS RECEIPT NOTE PPR-PART PRODUCTION REPORT

ENSURE SPECIFICATION AS PER SBOM

Project Report On Import-Export

Project Report On Import-Export

Project Report On Import-Export