Escolar Documentos
Profissional Documentos
Cultura Documentos
By
CHOPRA CHIRAG A.
BARI PRASHANT S.
(PGDBM)
ENTREPRENEURSHIP AND MANAGEMENT PROCESSES INTERNATIONAL
NEW DELHI-74
JULY 2010
SUMMER PROJECT REPORT ON
By
CHOPRA CHIRAG A.
BARI PRASHANT S.
(PGDBM)
I would like to thank Mr. Sandip Kulkarni (Head, HR Essar Steel Ltd.)
Ms. Sini George (Section officer, HR Essar Steel Ltd) for providing a
wonderful opportunity to work with Essar Steel Ltd., Pune facility.
I would also like to thank Mr. Jayesh Vora – (Head logistics, Essar Steel), my
project guide at Essar Steel Mr. Madhav Gore – (Deputy Superintendent,
logistics) and Mr. Hemant More – (Sr. Section engineer, logistics) for their
selfless support and encouragement during my entire training program.
This project would not been possible without the untiring support provided
by my family and friends. The input and guidance provided by my seniors have
been invaluable.
We would like to extend our gratitude to all the present employees of Essar Steel, who by their
patience and cooperation, have made our project rewarding and fun filled experience.
A. Excise Invoice
B. ARE1
C. Packing List
D. Custom invoice or Pre-shipment Invoice
E. Shipment copy – EP Copy
F. Letter of Credit (L/C)
G. Shipment Advice
H. Beneficiaries Certificate
I. Preferential Certificate of Origin
J. Non-Preferential Certificate of Origin
K. Bill of Exchange
L. Commercial Invoice
M. Mill Test Certificate
N. Fumigation Certificate
O. Bill of Lading (Draft and First print)
P. Weight Note
Q. Covering letter
R. Delivery order
S. Vessel and other important detail
T. FG Status
U. Mate Receipt
V. Export Vehicles in plant
W. Container placement Slip
X. Glossary
Y. Form 13
FIGURE INDEX
Logistics in the 21st century touches every aspect of the company's daily operations and has
grown into a business specialty of its own. Logistics is essential for the company's competitive
strategy and survival. No marketing, manufacturing or project execution can succeed without
logistics support.
On the other hand Documentation is the engine of exports in global trade. Documentation
facilitates the movement of freight, transfer of title, processing of payment, and customs
clearance. Without documentation, the shipment is at a standstill. Even with the continuing
advances in technology playing a greater role in international business, documentation is still
required by all parties involved in global trade.
So understanding the impact of effective logistics system and export documentation is very
important. This project details that how logistics and documentation process is going on
effectively in Essar Steel, Pune facility.
CHAPTER 1
INTRODUCTION
1.1 HISTORY
Brothers Shri Shashi Ruia and Shri Ravi Ruia founded the Essar Group in 1969. Ruia family
originates from Rajasthan. Sometime in the 19th century, they moved to Mumbai and set up
their own business.
The name of Essar is derived from the first letter of the two brothers ‘Sashi’ and ‘Ravi’
‘S’ as ‘ESS’ & ‘R’ as ‘AR’ thus the combination of them makes “ESSAR”.
In 1990s, Essar began its steel making business by setting up India’s first sponge iron
plant in Hazira, a coastal town in the western Indian state of Gujarat. The group went on to
build a pellet plant in Visakhapatnam and eventually a fully integrated steel plant in Hazira.
Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized
every opportunity that came its way. It diversified its shipping fleet, started oil & gas
exploration and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set
up a power plant near the steel complex in Hazira. The Construction business helped the Group
build most of its business assets. Essar also entered the GSM telephony business, establishing
India’s first mobile phone service in Delhi (branded Essar Cell phone) with Swiss PTT as the
joint venture partner.
Vision - We will be a respected global entrepreneur, through the power of Positive Action.
Mission - We are committed to innovative growth, through our personal passion, reinforced by
a professional mindset, creating value for all those we touch.
The Essar Group is a multinational conglomerate and a leading player in the sectors of Steel,
Oil & Gas, Power, Communications, Shipping Ports & Logistics, Construction and Minerals.
With operations in more than 20 countries across five continents, the group employs 60,000
people, with revenues of about USD 15 billion in FY08-09.
1.2.1 STEEL
• A global steel producer with 14 million tonnes per annum of current capacity, with an aim
to achieve a global capacity of 20-25 million tonnes.
• Presence in key markets in Asia and North America.
• Fully integrated from mining to retail: Essar owns a global portfolio of coal and iron ore
mines and has access to all key raw materials, ensuring steady supply to its plants.
• Strong downstream capability with service centers and customer care centers, as well as
global network of retail outlets branded Essar Hypermart.
• Specialized plants for value-added steel products, like pipes and plates.
• Leadership position in the cold rolling, galvanizing and pre-coated segments.
Major Competitors:
A) CURRENT OPERATIONS
1. Hazira, Gujarat, India: 10-million tonnes steel plant at Hazira, largest in Western India.
The plant is supported by a complete infrastructure setup, including a captive port, power
plant, lime plant and oxygen plant.
Downstream facilities.
Cold Rolling plant: 1.4 million tonnes.
Galvanizing plant: 0.5 million tonnes.
A 1.5-million tonnes extra wide plate mill.
A 600,000-tonne pipe mill.
B) UNDER EXECUTION
1. Paradip, Orissa, India:
12-million tonnes pellet plant at Paradip close to the port.
4. Minnesota, USA:
A 6-million tonnes pellet plant, a concentration plant and a direct reduced iron plant.
• A comprehensive sea logistics company with presence in sea transportation, ports &
terminals, logistics and oilfields services.
• Shipping fleet of 25 vessels, with 12 new ships on order at an investment of more than
USD 0.6 billion.
• One of India’s largest operators of ports.
• Building a cargo handling capacity (both dry and bulk cargo) of over 150 million tonnes.
• Contract drilling services to global oil majors, with a fleet of 12 onshore rigs and one
semisubmersible offshore rig; two new jack-up rigs on order.
A) CURRENT OPERATIONS
• Sea transportation:
• Ports and Terminals: Among India’s largest owners and operators of ports.
1. Vadinar (Gujarat, India): A 46-million tonnes port and terminal facility to provide
handling, storage and terminalling services for crude oil and petroleum products to refineries
and traders.
• Logistics: Provides end-to-end logistics services – from ships to ports, lighterage services
to plants, intra-plant logistics and dispatching finished products to the final customer.
Owns transhipment assets to provide lighterage support services, onshore & offshore
logistics services.
Manages a fleet of 4,200 trucks for inland transportation of steel and petroleum
products.
• Oilfields services:
Provides contract drilling and related services to oil and gas companies worldwide,
operating both offshore and onshore.
Owns a fleet of 13 rigs, which includes one semi submersible rig and 12 onshore rigs.
B) UNDER EXECUTION
• Ports & Terminals:
1. Vadinar, Gujarat, India:
Oil terminal capacity to increase to 58 million tonnes.
2. Hazira, Gujarat, India:
A 50-million tonnes all-weather deep draft port & jetty for import of iron ore, pellets,
coal, limestone and export of finished steel products.
3. Salaya, Gujarat, India:
A 20-million tonnes integrated terminal facility for handling coal and pet coke used in
power plants.
4. Paradip, Orissa, India:
14-million tonnes deep draught coal berth, as part of an agreement with the Paradip Port
Trust to execute a BOT (build-operate-transfer) project, with rights to operate the berth
for 30 years.
Developing Central Quay–3 for handling 16 million tonnes of pellets annually.
• Sea transportation: Order Book of 12 new building vessels.
• Oilfields services: Two new jack-up rigs on order.
• A fully integrated oil & gas company of international scale with strong presence across the
Hydrocarbon value chain from exploration & production to oil retail.
• Global portfolio of onshore and offshore oil & gas blocks, with about 70,000 sq km
available for exploration.
• Over 300,000 bpd (barrels per day) of crude refining capacity that is being expanded to
750,000 bpd, with a goal to reach a global refining capacity of 1 million bpd.
• Fifty percent stake in Kenya Petroleum Refineries Ltd, which operates a refinery in
Mombasa, Kenya, with a capacity of 80,000 bpd.
• Over 1,300 Essar-branded oil retail outlets in various parts of India, with plans to open over
2,500 outlets countrywide.
A) CURRENT OPERATIONS
Asia, Africa & Australia: Diverse portfolio of offshore and onshore Oil & Gas blocks as
well as Coal Bed Methane blocks.
1. Ratna and R-series fields, with reserves of 161 million barrels of oil equivalent, near the
Mumbai High field in the Mumbai offshore basin.
2. 50 percent interest in one shallow water offshore exploration block MB-OSN-2005/3, near
the Mumbai High field in the Mumbai offshore basin.
3. 70 percent operating interest in Mehsana oil and gas block that has started crude
production.
4. 100 percent interest in 1 CBM block in Durgapur, West Bengal, which has started
production.
5. 100 percent interest in 2 exploration blocks in Assam.
6. 100 percent interest in 1 exploratory block in Nigeria shallow offshore.
7. 100 percent interest in 2 exploratory blocks in Madagascar.
8. 100 percent rights in 2 exploration blocks in Northern Territory, Australia offshore.
9. 49.5 percent interest in 1 on-land exploration South East Tungkal block in Indonesia.
• Refining:
1. Vadinar, Gujarat, India: World-class 10.5-million tonnes or 220,000-bpd refinery
(operating at 300,000 bpd) producing fuels compliant with latest emission standards; being
progressively expanded to 18 million tonnes (380,000 bpd) and to 36 million tonnes (750,000
bpd).
Major units:
Crude Distillation Unit: Current potential capacity of 14 million tonnes.
Vacuum Distillation Unit: Current potential capacity of 7.2 million tonnes.
Vis Breaker Unit: Current potential capacity of 2.3 million tonnes (Axens, France).
Continuous Catalytic Regenerator: Current potential capacity of 1 million tonnes
(Axens, France).
Fluid Catalytic Cracking Unit: Current potential capacity of 3.5 million tonnes (Stone
& Webster).
Diesel Hydro Desulphurization unit: Current potential capacity of 4.5-million tonnes
(Axens, France).
Naphtha Hydro Treater: Current potential capacity of 1.7 million tonnes.
Dedicated infrastructure includes a captive power plant (currently 120MW, being
expanded to 1,110 MW), dispatch facilities by rail, road, sea and pipeline, associated
tankages, pipelines, water intake facilities, and a single point mooring system, which can
accommodate Very Large Crude Carriers, to receive crude.
2. Mombassa, Kenya: 50 percent stake in a 80,000 bpd refinery run by the Kenya Petroleum
Refineries Ltd (KPRL); the remaining 50 percent is owned by the Kenyan government.
• Retailing
Marketing network of over 1,300 operational retail outlets, with plans to reach 2,500
outlets countrywide.
Tie-ups with oil marketing firms that give Essar Oil access to product and right to use
their terminals and facilities to place and market products, giving it pan-India presence
with over 30 supply points.
B) UNDER EXECUTION
1.2.4 POWER
A) CURRENT OPERATIONS
B) UNDER EXECUTION
1. Gujarat, India:
Salaya: 1,200 MW, imported coal based.
Vadinar: 890 MW power equivalent co-generation plant of equivalent capacity, oil-
fired; captive to Essar Oil and will supply power and steam to the expanded refinery.
Hazira: 270 MW multifuel plants.
2. Madhya Pradesh, India:
Mahan: 1,200 MW, pit head coal based.
3. Jharkhand, India:
Tori: 1,200 MW, pit head coal based.
4. Orissa, India:
Paradip: 120 MW coal-based plants to supply power to Essar’s upcoming pellet plant in
that location.
1.2.5 COMMUNICATIONS
• A global player in the communications sector with presence in telecom services, telecom
• Tower infrastructure, telecom retail and business process outsourcing services.
• Telecom services in India and Africa.
• Partnership with Vodafone PLC, with 33 percent stake in Vodafone Essar Ltd.
• Majority stake in the telecom assets of the Dhabi Group in Uganda and the Republic of
Congo.
• 14 percent stake in Indus Towers.
• Business Process Outsourcing services.
A) CURRENT OPERATIONS
• Telecom Services:
Vodafone-Essar: Joint venture of Essar Group and the UK-based Vodafone Group, with
over 100 million subscribers.
“yu”: A GSM-based mobile services brand in Kenya with close to a million subscribers.
Telecom Retail: Operates over 1,300 The Mobile Store outlets across India.
Telecom Tower Infrastructure: 14 percent stake in Indus Towers, India’s largest tower
company with over 100,000 towers.
• Telecom-enabled Services:
Aegis, a global leader in business process outsourcing (BPO), employs over 40,000
employees with expertise in the telecom, insurance, banking and healthcare domains, as well
as engineering services, serving several Fortune 500 companies from 40 delivery centers
across India, Sri Lanka, the Philippines, USA, UK, Costa Rica, Australia, Kenya and South
Africa.
To describe the terms of access, trade and the different types of export documentation
required in global marketing.
To know whether the customers are satisfied with the existing range of service pattern.
Essar Steel products are world-class, meeting the highest international standards. The
company's extensive marketing network and after sales service ensure high levels of customer
satisfaction.
2.1.1 Coils
Used for
• Transport Industry.
• Welded Steel Tubes and Pipes.
• Cold - Rolling and Drawing.
• Line Pipe.
• Corrosion Resistance.
• Boiler Quality Plates.
• Tin Mill Black Plate.
• Pressure Vessels.
2.1.2 Plates
Essar Steel's high precision shearing line (SMS-USA) produces top quality steel plates that
meet demanding international standards. Essar Steel is the only Indian company to receive the
prestigious TUV Rhineland certificate for quality plates.
Essar caters to the plates demand from the following broad market segments:
Used for
• Boiler & Pressure Vessels.
• Ship Building.
• Railways.
• Heat Exchangers.
10
• Oil & Petrochemicals.
• Marine Containers.
• Oil & Petrochemicals.
• Coal & Mining.
• General & Heavy Engineering.
2.1.3 Sheets
Essar Steel's high precision shearing line (Bronx-UK) turns out top quality steel sheets
meeting demanding international standards.
Essar caters to the sheets demand from the following broad market segments:
Used for
• LPG Cylinder Fabricators.
• Railways.
• Automobiles.
• Marine Freight Containers.
• General and Heavy Engineering.
11
• Drums & Barrels.
• White Goods.
• Pipes & Tubes.
• Furniture & Office Equipment.
• General Engineering Application.
12
CHAPTER 3
LOGISTICS
Logistics is the process of planning, implementing and controlling the efficient, effective flow
of goods from the point of origin to the point of consumption for meeting the customer
requirements.
Logistics accounts for one of the highest costs of doing business. Logistics expenditure
normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics
even though very important for any business success is expensive.
• Logistic management encompasses all materials flows management; from the inflow of
purchased materials into works (i.e. materials planning of raw materials components and
other products, transport of materials from suppliers to works, receiving and inspection and
storage of materials) materials flow through manufacturing processes (i.e. materials issues
and materials handling) and material flow to customers (i.e. physical distribution).
• The management (i.e. the planning, execution and control) of all factors that affect the
material flow and the information about it, seen from the perspective of customer’s
requirements for the purpose of achieving a high reliability, a high degree of completeness
and a short delivery time.
• Logistics is the concept which seeks provide for the management and co-ordination of the
activities within the supply chain from sourcing and acquisition through production, where
appropriate, and on through distribution channels to the customer. The goal of logistics is
the creation of competitive advantages through the simultaneous achievement of high
customer service levels, optimum investment and value for money.
Logistics management covers both physical flows of products as well as information flow
covering reports and documentation relating to goods movement.
Logistics management evolves procedures that meet customer service at the minimum cost.
Logistic management achieves cost reduction by speeding the flow of materials, work-in-
progress and finished product.
13
3.1 Structure of logistics management
A) Physical Structure: A logistics system’s physical structure consists of two things:
• Stationary Facilities.
• Transportation.
Stationary Facilities:
Logistics jargon further distinguishes those facilities that are:
Outside the system (such as drug manufacturers) from which commodities are supplied;
these are called “sources”.
Facilities that receive supplies from a source (such as a central medical store) are called
“primary supply points”.
Facilities that dispense commodities to end-users are called “outlets”.
Whatever names are used, there are six important things to know about the facilities:
1. Where is the facility located?
2. How is it staffed?
3. What is the actual need for each commodity at the facility and how does this need vary
over time?
4. What is the facility’s storage capacity?
5. What are the storage conditions, and are they suitable for the items being stored?
6. How is the inventory controlled, and is it secure?
In describing the physical structure of the logistics system, it is important to note the
number of links into each facility. The more links there are, the more confused the system is
likely to be. At the top, the primary supply points probably will receive commodities from a
number of sources. At lower levels of the system, however, it is usually desirable to limit each
facility to receiving supplies through only one link (possibly with a different link for
emergency backup).
Transportation:
There are five important things to know about transportation links:
1. What types of transportation are available?
2. What size batches of commodities are cost-effective to transport?
3. How long does it take to get from one facility to the next?
4. How often can shipments be made?
5. Are the answers to these questions different during different seasons of the year?
14
With this basic information in hand, the logistics system’s management structure can be
designed.
B) Management Structure:
The essential questions in understanding the management structure of a logistics system are:
• Who decides what and when and how many commodities move through a link from one
facility to the next?
• How does he/she decide?
There are two general types of logistics systems:
This management structure may differ at different levels of the system; higher levels
may requisition and then allocate to lower levels. Even at a single level, the system may be
mixed. A regional warehouse might allocate stock to a health center every three months, but
the health center may be able to request additional supplies, if needed, in the interim. Also, it
15
may be desirable to use different procedures for equipment, which is essentially a one-time
problem, than for supplies, which must be restocked on a continuing basis.
In addition to the question of who makes the decisions to move commodities, there is the
question of how the decision is made. It already has been stated that the decision should be
based on a projection of actual need; such an assessment is called forecasting or
quantification. A full discussion of forecasting is beyond the scope of these few pages; here it
is only important to note that an adequate forecasting process must consider three things:
1. Historical data: The decision maker must consider the actual past use of commodities and
how that use pattern has changed over time; simply graphing the data can do this.
2. Future program plans: The decision maker must know what the future plans for the
program are and have some way of realistically estimating the effect of those plans on the
demand for commodities.
3. Underlying assumptions: The decision maker must use proper assumptions about how
demand varies over time; for example, in a new program, demand is usually slow at first,
then increases rapidly, and finally levels off.
16
3.2 Function of Logistics
17
Fig 3.2: Function of Logistics
Order processing
"Order processing" is the term generally used to describe the process or the workflow
associated with the picking, packing and delivery of the packed item(s) to a shipping
carrier.
Transport management
Transportation involves
Firm’s own transport (if goods are to be collected).
Hiring of transport (if services of external firm are to be used).
Routing and load planning.
Selection of the most suitable of transport (i.e. rail, road, sea or air).
Packaging needed (i.e. loose, pallets or special).
Documentation required (especially if goods are arriving from overseas).
Inventory management
Inventories require to be maintained to take care of needs between the time of demand and
time of supply. Inventory management involved decisions concerning
Buffer stocks.
Lead-time.
Replenishment of stocks.
Warehousing
Is concerned with management of space to hold inventories and it involves such problems
as
Site selection.
Space determination.
Layout and design.
Receipts and issues and storage.
Preservation.
Material handling
Materials handling is concerned with movement of product at the stocking point and it
involves such decision as
Smoothening of materials flow.
Selection of materials handling equipment.
Maintenance of materials handling equipment.
18
Packaging
Is concerned with design of packing of the product that ensures damage free movement of
the product and is conducive to efficient handling and storage.
Production scheduling
Is concerned with preparation of aggregate quantities to be produced in accordance with
demands, actual as well as projected. Product scheduling, however, dose not include day-
to-day detailed scheduling carried out by production planner.
Information system
Is a must for the successful implementation of logistics function. Database on customer
location, sales volume, inventory levels, lead times etc. must be maintained.
3.3 INCOTERMS
3.3.1 General Information
Incoterms are reviewed and published by the International Chamber of Commerce.
Internationally accepted commercial terms that clearly allocate transportation and other costs,
risks, customs, and insurance responsibilities between seller and buyer.
• First developed by the International Chamber of Commerce.
• INternational COmmercial TERMS.
• Clarify when the ownership of the merchandise takes place.
• Used in conjunction with a sales agreement or other method of transacting the sales.
• Independent of contract for carriage of goods.
• There are total 13 terms.
19
3.3.3 Types of INCOTERM
Incoterms consist of 4 groups (E, F, C, D) and are listed below in order of increasing
risk/liability to the exporter. Some Incoterms only apply to ocean/inland, not air,
transportation modes.
1. Group “E” - Risk and expenses are borne by the buyer
1.1 EXW - Ex Works -- The only Incoterm in Group E represents the minimum liability to
the seller. Risk and expenses are borne by the buyer, including payment of all transportation
and insurance costs from the seller's door. EXW is used for any mode of transportation.
2. GROUP “F” - Seller pays for pre-carriage at origin but does not pay for main
carriage.
2.1 FCA - Free Carrier -- Risk passes to buyer, including transportation and insurance costs
on the buyer's collecting vehicle; it is the buyer's obligation to receive the seller's arriving
vehicle unloaded.
2.2 FAS - Free Alongside Ship -- Risk passes to buyer, including payment of all
transportation and insurance costs, once delivered alongside ship by the seller. Used for sea or
inland waterway transportation. The export clearance obligation rests with the seller.
2.3 FOB - Free On Board -- Risk passes to buyer, including payment of all transportation
and insurance costs, once delivered on board the ship by the seller. Used for sea or inland
waterway transportation (Most commonly used of F Group).
3. GROUP “C” - Seller arranges and pays for main carriage but does not assume risk.
3.1 CFR - Cost and Freight -- Risk and insurance cost pass to buyer when delivered on board
the ship by seller, who pays the transportation costs to the destination port. Used for sea or
inland waterway transportation.
3.2 CIF - Cost, Insurance and Freight -- Risk passes to buyer when delivered on board the
ship by seller, who pays transportation and insurance costs to destination port. Used for sea or
inland waterway transportation.
3.3 CPT - Carriage Paid To -- Risk and insurance costs pass to buyer when delivered to
carrier by seller, who pays transportation costs to destination. Used for any mode of
transportation.
3.4 CIP - Carriage and Insurance Paid To -- Risk passes to buyer when delivered to carrier
by seller, who pays transportation and insurance costs to destination. Used for any mode of
transportation.
20
4. GROUP “D” - Seller assumes the most cost/risk because goods must be made available
upon arrival at agreed destination.
4.1 DAF - Delivered at Frontier -- Risk and responsibility for import clearance passes to
buyer when delivered to named border point by seller. Used for any mode of transportation.
4.2 DES - Delivered Ex Ship -- Risk and responsibility for vessel discharge and import
clearance pass to buyer when seller delivers goods on board the ship to destination port. Used
for sea or inland waterway transportation.
4.3 DEQ - Delivered Ex Quay (Duty Paid) -- Risk passes to buyer when delivered on board
the ship at the destination point by the seller, who delivers goods on dock at destination point
cleared for import. Used for sea or inland waterway transportation.
4.4 DDU - Delivered Duty Unpaid -- Risk and responsibility of import clearance pass to
buyer when seller delivers goods to named destination point. Buyer is obligated to import
clearance. Seller fulfills their obligation when goods have been made available at the named
place in the country of importation. Used for any mode of transportation.
4.5 DDP - Delivered Duty Paid -- Risk passes to buyer when seller delivers goods to named
destination point cleared for import. Used for any mode of transportation.
21
CHAPTER 4
ESPF - LOGISTICS
22
49. POLAND 64. SYRIA
50. PORTUGAL 65. TANZANIA
51. PUERTO RICO 66. THAILAND
52. QABOOS 67. TOGO
23
24
4.1 Workflow of ESPF
The workflow of Essar Steel Ltd., Pune facility is given below:
Step 1 - 2
Customer places the order to the marketing department about their requirements and last date
of delivery or last date of shipment (in case of export).
Step 3
As the detail, requirements of product receive by marketing department they contact with
Production planning and control department (PPC).
Step 4
The next step is of order preparation and execution i.e. they analyze complete set of process to
develop the required product.
Step 5
Now the production work starts and production department produces finished good.
Step 6
Now the work of dispatch department is to load the finished good i.e. coils or sheets to proper
container.
Step 7
Container is ready to move towards the final destination.
- If the delivery of goods is in foreign then shipping line is used to send the goods to its final
destination.
- If the delivery of goods is domestic then loaded truck is send directly to its destination.
Step 8
Excise and documentation department completes finally invoicing part.
In the complete process Logistics department coordinate with Dispatch, Excise and
Documentation department to complete the process effectively. In the complete process the
other department like Customer Service department (CSD), Commercial department and
material department play important role in the process.
25
4.2 Overview of Logistics in Essar
Logistics Department of Essar Steel, Pune facility consist of following Sub Departments:
A. Internal Structure of Logistics Department
These 3-department work in connection with logistics department and that completely make
the logistics system of ESSAR Steel, Pune facility.
26
Logistics department externally communicate with Shipping Line, Freight Forwarder,
Transporter, Custom House agent.
To understand the complete workflow first we have to understand some basic terms of
logistics and important details about Essar Steel, Logistics Pune facility. They are:
Customs House Agent (CHA) - is a person who is licensed to act as an agent for transaction
of any business relating to the entry or departure of conveyances or the import or export of
goods at any Customs station.
• A CHA is required to clear goods for import or export only against specific authorization
from the principal and must produce it whenever required by the Deputy/Assistant
Commissioner.
• The CHA is duty-bound to advise the client to comply with the provisions of the Act and
the regulations. If there is non-compliance of provisions by any client, he is required to
bring it to the knowledge of the Deputy/Assistant Commissioner.
• The CHA has a duty to promptly pay to Government all money received from client for
payment of duties and taxes. Similarly, any money received by him from the Government
should be promptly and fully accounted to the client.
Freight Forwarder (FF) - is a person or company that organizes shipments for individuals or
other companies. A forwarder acts as an agent, in other words as a third-party
logistics provider that dispatches shipments via asset-based carriers and that books or
otherwise arranges space for these shipments. Carrier types include ships, airplanes, trucks,
and railroads.
27
• Custom clearance - forwarders can complete customs paperwork on your behalf, and pay
any taxes or duties owed.
• Other documentation issues – E.g.: Bills of Lading, or any documents required by banks
before payment is released.
Port - is a location on a coast or shore containing one or more harbors where ships can dock
and transfer people or cargo to or from land.
Bill of lading - is document that establishes the terms of contract between a shipper and a
transportation company. It serves as a document of title, a contract of carriage, and a receipt
for goods.
A bill of lading (sometimes referred to as a BOL or B/L) is a document issued by a carrier to a
shipper, acknowledging that specified goods have been received on board as cargo
for conveyance to a named place for delivery to the consignee who is usually identified.
Note:
This is very important document and to understand B/L flow in system ( refer 4.3.3 - O
B/L Draft of documentatation department and Appendix - O for B/l draft and First print).
28
Delivery order – D/O flow in the System
29
Step 7
Transporter shows that D/O to the Shipping yard to get the respective container.
Now the container is taken from Shipping Yard and truck comes to the Essar Steel,
Pune for Loading of product i.e. coil.
Finished Goods Status (FGS) – Status that shows the how much amount of final product is
available in Inventory.
Letter of Credit (L/C) – Letters of credit used in international transactions are governed by
the International Chamber of Commerce.
A commercial letter of credit is a contractual agreement between a bank, known as the issuing
bank, on behalf of one of its customers, authorizing another bank, known as the advising or
confirming bank, to make payment to the beneficiary. The issuing bank, on the request of its
customer, opens the letter of credit. The issuing bank makes a commitment to honor drawings
made under the credit. The beneficiary is normally the provider of goods and/or services.
Essentially, the issuing bank replaces the bank's customer as the payee.
Note: This is very important document and to understand L/C flow in system refer (4.3.3 - F
documentatation department).
Freight Forwarders
1. OM Freight Forwarders Pvt. Ltd.
2. Rushabh Sealink Pvt. Ltd.
3. DAMANI Shipping Pvt. Ltd.
4. Vadiyawala Logistics Pvt. Ltd.
Transporter
IDEAL Transporter.
30
CHA
Safe Clearing & Forwarding Pvt. Ltd.
Shipping Lines
• MAERKS.
• SAFMARINE.
• DELMAS.
• EMIRATES LINE.
• MSC: Mediterranean Shipping Company.
• CMA CGM: Compagnie Maritime d'Affretement Compagnie Generale Maritime.
• CSAV: Compania Sud Americana de Vapores.
• HAPAG: Hamburg-Amerikanische Packetfahrt-Aktien-Gesellschaft.
• HDS: Hafiz Darya Shipping.
• MISC: Malaysia International Shipping Corporation.
• PIL: Pacific International Lines, and many more.
Nhava Sheva is the largest port in India, handling close to 50% of the country's port traffic.
The main goods exported are cotton shirts, knitted t-shirts, sporting goods, carpets, other
textile articles like embroidery machines and etc., boneless meat, and medicaments. The main
imports are chemicals, machinery, plastics, electrical machinery, vegetable oils and aluminum
and other non-ferrous metals. It is located south east of Mumbai.
It has three terminals:
31
ESPF - Essar steel Pune Facility
MARKETING
approved order
1. L/C & OA detail
3.1 Not approved
1. OA Details
3. Request
for
approval
PPC CSD
2. FG Status
(Production Planning & (Customer Service COMMERCIAL
Control) Department
Department)
Approval
Dispatch
approval
3.1 Approved
5.2 D.O.
for D.O.
5.1 Ask
6. Vessel Detail
11
5. Container Request
Freight
Instruction
6. Vessel Detail/D.O.
Forwarder
Freight & Loading
7. Vessel details,
instruction
6.1 D.O.
Transporter 11
11
9. invoices CHA
8.Loading Custom House
Documentation Despatch Advise Excise Agent
13. B/L Draft > first print > B/L correction > b/L final
9. Send container
Bank
12. Not Clear/Gate Close OFF 12. Clear/Gate Open
LOAD
Buffer
PORT
Marketing department gives OA (order Acceptance detail) to the PPC so that PPC department
starts manufacturing the product as per the order given by marketing department.
Marketing department at the same time also gives OA detail and L/C (Letter of Credit) to the
CSD for further use.
Note: To understand the Letter of credit and its flow in the system refer the (4.3.3
documentation department, F-Letter of Credit, Appendix-F).
Marketing department at the same time also gives L/C and remittance detail through bank and
finance to the Commercial department for their further use.
Step 2
PPC department always provides the FG (Finished Goods) status to the CSD department so
they can keep track on that which product is ready for dispatch. (Refer Appendix –T. FG
Status).
Step 3
CSD department request for order approval from commercial department then commercial
department send the approval detail i.e. order is approved or not.
Go to Step-4
33
CSD send container request (in the form of D.O., which includes the dispatchable material
quantity) to Logistics Department.
Step 3.1
CSD send detail to marketing Department about the problem why order is not approved.
(Their may be reason for not approval like L/C is not proper or Payment is due etc.)
Marketing department resolve that matter with their customer and again contact with
commercial department (3.1(a)).
Step 4
After receiving the request for container from the CSD department, Logistics department
work is to arrange the truck and container, so there are two possible cases:
Step 5
To get the container, Logistics department ask for Delivery order from shipping line.
As per the requirements send by logistics department, shipping line sends the D.O. and vessel
detail to the logistics department.
Note: Now the D.O. and vessel detail is with logistics department.
Step 5
34
After receiving the request,
Step 5.1 Freight Forwarder asks Shipping Line for D.O. or booking, so that they get
container detail and vessel detail.
Step 5.2 After receiving request Shipping Line gives the D.O. and vessel detail to the Freight
Forwarder.
Step 6
Freight Forwarder gives that D.O. and Vessel details to the Logistics department.
Note: Now the D.O. and vessel detail is with logistics department.
Step 6.1
Now Logistics send that D.O. to the Transporter so that transporter send the Empty truck to
the Shipping Yard to collect container. After receiving the container the vehicle comes to
Essar Steel, Pune.
To understand the process diagrammatically about how the delivery order to get the container
and vessel detail flow in the system: (Refer 4.2.1 Basic terms of Logistics, page no: 28 and
Appendix R)
Step 7
As the vehicles come to Essar Steel, Pune in above step now the Transporter gives the vessel
and container details to the Dispatch department.
At the same time when vehicles come to ESPF one document is prepare i.e. Vehicles In Plant
for their internal use. (Refer Appendix – V. Export Vehicles in Plant).
35
Between Logistics department and Documentation department
Logistics department provides the vessel detail, Freight and loading instruction, other
important detail to documentation department so that they can use this detail to prepare all
document required in whole process.
Logistics department also provides the vessel detail, Freight and loading instruction and other
important detail to dispatch department so that they can prepare loading cum check list.
Logistics department also provides the vessel detail, Freight and loading instruction and other
important detail to Excise department so that they can prepare their documents like custom
invoice, packing list etc.
Step 8
Dispatch department give the Loading advice i.e. Loading slip cum checklist to excise
department for their internal use. (Refer Loading slip cum checklist from 4.3.1 Dispatch
department, Page no:40).
Step 9
Excise department sends the custom invoice to the CHA in Pdf format, so that CHA prepare
the Shipping bill before the vehicle reaches to the port.
At the same time Dispatch department send the loaded container and original custom invoice
with that and also prepare one document i.e. Container Placement Slip which contain detail
like Booking no., Destination, Shipping Line, Sub contractor, Vehicle no., Container no. Seal
no., Pickup time and Pickup date etc for their use. (Refer Appendix-W, Container Placement
Slip).
As the vehicles reaches to the port driver shows the original copy of custom invoice signed
by local custom officer of Pune.
36
Step 10
Logistics department send the dispatch detail i.e. (Coil details loaded in container) and offload
instruction i.e. (port and vessel detail, Gate-In instruction or keep the coil in buffer etc.) for
further use.
Excise department sends the invoice instruction i.e. Custom invoice to the Documentation
department so that they prepare commercial invoice using that custom invoice.
Step 11
Shipping line compare the original custom invoice given to that of Pdf given in step 9 and if
details matches then handover the shipping bill to CHA. Shipping Line also gives the FORM-
13 to the CHA to Get-In Container. (Refer form 13 from Appendix Y).
Step 12
37
If the condition is Gate-In or clear then container loaded in vessel for shipment.
If the condition is Gate-Close or not clear then container is unloading in buffer till the Gate-In
allowed.
Step 13
Documentation department prepare the B/L draft and send it Shipping line via freight
forwarder then Shipping Line compare the B/L draft with shipping bill and prepare the B/L
first print and send it to Documentation department via Freight Forwarder.
Documentation department recheck the complete B/L first print and if there is no correction
then give the information to the shipping line that prepare the B/L final print.
Now finally shipping line prepare the B/L final and send it to Documentation department.
Note: To understand B/L flows diagrammatically (Refer page 57 B/L flow in system and App-
endix O for document).
Step 14
Documentation department Uses all the information and prepare the set of all the documents
as per mentioned in L/C i.e. Letter of credit.
This complete set of documents is now send to the Exporter bank i.e. Beneficiaries bank.
This completes the complete work of Logistics department with their own internal
department (like Dispatch department, Excise department, Documentation department,
Marketing department, Commercial department and PPC department) as well as external
entities like (Freight Forwarders, Shipping line, CHA, Transporter).
38
Fig 4.3.1: workflow of Dispatch Department 39
4.3.1 Dispatch Department
Step-1
Dispatch department get the vessel detail, freight and loading instructions from logistics
department (flowchart step-7) and vehicle and container number from transporter (flowchart
step-7).
Step-2
They start preparing Loading slip (LS) cum checklist.
40
41
Step-3
By using the detail of loading slip, Loading is done with the help of crane. There are two
ways for Shipment:
Containerized shipment
Breakbulk shipment
As per the shipment detail given the dispatch department starts process. If the requirement is
of Containerized shipment then the process is:
C. Once the loading is over, it is ready for seal and dispatch. Essar Steel Ltd. has rights to do
the factory stuffing i.e. rights to seal the export container at factory.
42
D. After Sealed container is ready to move towards its destination i.e. the Mumbai Nhava
sheva Port.
C. After this loaded truck is ready to move towards its destination i.e. the Mumbai Nhava
sheva Port.
43
Step 4
Dispatch Department sends the delivery number and billing document to Excise Department.
Here the work of dispatch department gets over.
Logistics management not only covers physical flows of products but also information flow
i.e. covering reports and documentation relating to goods movement.
The work of Excise department and Documentation department is to prepare the
documents that are require by the customer and custom department as well as for internal use
of company.
Excise department of Essar steel, Pune Facility working on the following documents require
for export of products and claim for rebate on excisable goods.
44
A. Excise Invoice (See APPENDIX - A)
It contains information relating to goods movements and taxes. It is a business documents that
supplier of goods (vendor or supplying plant) sends along with deliveries of excisable goods.
It lists the goods and states, quantity and how much excise duty applies on them.
Types of excise invoice:
1. Excise invoice outgoing: 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.
A business document, in India, that your vendor sends you when it delivers excisable goods.
It lists the goods and states how much excise duty applies on them. You use the excise invoice
to claim back the excise that you have paid from the excise authorities, if the goods is going to
be export in future than only.
Excise invoice created by reference document: an invoice, a pro forma excise invoice, or a
billing document.
ARE1 is the export document for export clearance, which shall be prepared in 5 copies
quintuplicate. This document shall bear running serial number beginning from the first day
of the financial year. During this year, for the sake of continuity, the serial number, as
started from 1.4.2001, may continue. On A.R.E.1, certain declarations are required to be
given by the exporter. The exporter or his authorized agent should sign these. The different
45
copies of A.R.E.1 forms should be of different colors indicated below:
Triplicate: Pink
1. Original (First Copy): The said Superintendent or Inspector of Central Excise shall return
to the exporter immediately after endorsements and signature.
2. Duplicate (Second Copy): The said Superintendent or Inspector of Central Excise shall
return to the exporter immediately after endorsements and signature.
3. Triplicate (Third Copy): Sent to the bond sanctioning authority, either by post or by
handing over to the exporter in a tamper proof sealed cover after posting the particulars in
official records.
4. Quadruplicate (Fourth Copy): Retain for official records.
46
E. Shipping bill (See APPENDIX - E)
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for
allowing shipment. A shipping bill is issued by the shipping agent and represents some kind
of certificate for all parties, included ship's owner, seller, buyer and some other parties. For
each one represents a kind of certificate document.
EP Copy: Export Promotion, it simply defines to promote the export of some specific articles
(metals, etc.). Government pays some subsidy at a prespecified rate on different metals known
as Drawback.
It is prepared only if we have to claim the drawback on any specified invoice or export bill.
If we are sending the good to the buyer without claiming for Drawback then there is no need
of EP Copy.
Firstly Documentation department receive the custom invoice and with the help of that they
prepare commercial invoice. Then they follow the instruction mentioned in Letter of credit
(L/C) to prepare all the documents.
They also uses Bill of lading, Packing list, Shipping bill attach with all above document to
prepare complete set as per customer requirement.
47
F) Letter of Credit (See APPENDIX – F)
Definition:
This is very important document: If payment is to be by L/C the following should be borne in
mind when examining the L/C:
a) Confirmation of the L/C.
b) Documents stipulated in the L/C will be submitted by the exporter's bank.
c) Draft to be drawn against the L/C is for the period set out in terms of the contract, "sight
draft" is payment by the recipient or "usance draft" if credit has been allowed in the contract.
d) The credit validity period allowed in the L/C.
e) Payment against the L/C is permissible according to requirements of foreign exchange
control regulations.
Purpose of L/C:
The main purpose of letter of credit is to facilitate international trade.
It is because of this that the exporter and importer can come along because the bank serves
as a major guarantor thus facilitating the whole trading process and the chances of default
and risk is low.
It is because of this letter of credit that the exporter gets prompt payment for his goods.
On the other hand the importer remains satisfied that the exporter cannot breech the
contract because he has a strong guarantor, which allows the trust of the exporter in the
business as well.
Process of L/C:
A letter of credit arrangement will be agreed upon in the contract of sale. The buyer instructs
a bank in his own country (the issuing bank) to open a credit with a bank in the seller's
country (the advicing bank) in favors of the seller, specifying the documents, which the seller
has to deliver to the bank for him to receive payment.
If the seller tenders the correct documents during the currency of the letter of credit
arrangement, the advising bank pays him the purchase price or accepts his bill of exchange
drawn on it, or negotiates his bill of exchange, which is drawn on the buyer. Whichever
method used is pre-arranged between the seller and the buyer.
48
Types of letters of credit:
Letters of credit can be revocable or irrevocable, confirmed or unconfirmed. Whether the
credit is revocable or irrevocable depends on the commitment of the issuing bank. Whether it
is confirmed or unconfirmed depends on the commitment of the advising bank. These
commitments are undertaken to the seller, who is the beneficiary under the credit.
There are four main types of letters of credit, namely, the revocable and unconfirmed letter of
credit, the irrevocable and unconfirmed letter of credit, the irrevocable and confirmed letter of
credit, and the transferable letter of credit.
4. Transferable
The parties to a contract of sale may agree that the credit is transferable. The seller can use
such credit to finance the supply transaction. The buyer opens the credit in favor of the seller
49
and the seller (who in the supply transaction is the buyer) transfers the same credit to the
supplier (who in the supply transaction is the seller). This type of credit is used when a person
buys goods for immediate resale and wishes to use the proceeds of resale to pay the original
seller.
50
: 39B Maximum credit amount
: 39C Additional amounts covered Additional amounts covered
: 40A Form of doc credit Irrevocable and/or transferable
: 41A Available With …By
: 41D Available With/By Bank the Credit is available to be paid
by
51
credit
: 50 Ordering customer Ordering customer
: 51A Applicant bank
: 51D Sending institution Sending Institution
: 53A Reimbursement bank Paying bank to negotiating bank
: 53D Reimbursement -
: 57A “Advise Through” bank
: 57D Account with bank Issuing bank’s account relationship
: 59 Beneficiary The beneficiary (usually the seller)
of the credit
: 71B Charges Applicant and beneficiary
responsible charges
: 72 Sender to receiver information Send and receive information
: 78 Instructions to Pay/ Accept/ -
Negotiating bank
: 79 Narrative
I/O Instead Of
52
Letter of Credit – L/C Flow in System
53
Description:
Step 1
Customer contact with his bank (Issuing bank) who issue L/C for him as per the requirement
given.
Note: As in figure Customer belong from coutry A and his bank is ABC.
Step 2
Issuing bank issue the L/C and send to the other branch of their bank in the country where the
supplier or sellers company is.
Note: As in figure branch of bank ABC in country B i.e. supplier’s country who receive the
L/C from their own bank of country A.
In case the branch of their bank is not available in that country than the Issuing bank establish
the contract with the other bank.
Note: As in figure bank PQR is the bank in contract with bank ABC for their work of L/C.
Step 3
Now the Issuing bank branch send that L/C to the bank of supplier or Exporter i.e.
Beneficiaries’ s bank.
Note: In figure bank XYZ is the Beneficiaries’ s bank that receives the L/C from Issuing bank
branch.
Step 4
Beneficiaries’ s bank handover that L/C to the Exporter so that they start processing
requirement mentioned in the L/C.
Step A
Some times it also happens that Issuing bank of customer is same as exporter bank, it means
common bank is there between customer and supplier.
54
Note: In figure Essar Steel is the Beneficiary who finally receives the L/C and starts their
process of manufacturing the product and process all documents as per the terms and
condition mentioned in the L/C.
Step B
Some time it happens that Issuing bank don’t have their branch in exporter’s country.
In this case they made contract with other bank (Like PQR in figure) so that on behalf of
issuing bank they deal with exporter/Beneficiary’s bank.
55
goods are actually made. This raises a definition problem in cases where less than 100% of
the raw materials and processes and added value are not all from one country. An often used
practice is that if more than 50% of the sales price of the goods originate from one country,
that country is acceptable as the country of origin (then the "national content" is more than
50%).
The document may be informal, i.e. issued for example by the exporter, but often the
importing country may require a formal document, often to be confirmed by an official body
in the exporting country. The CO is primarily important for classifying the goods in the
customs regulations of the importing country, thus defining how much duty shall be paid.
Bills of exchange are used primarily in international trade, and are written orders by
one person to his bank to pay the bearer a specific sum on a specific date. Prior to the advent
of paper currency, bills of exchange were a common means of exchange.
A bill of exchange requires in its inception three parties--the drawer, the drawee, and
the payee. The person who draws the bill is called the drawer. He gives the order to pay
money to third party. The party upon whom the bill is drawn is called the drawee. He is the
56
person to whom the bill is addressed and who is ordered to pay. he becomes an acceptor when
he indicates his willingness to pay the bill. The party in whose favor the bill is drawn or is
payable is called the payee like bank.
57
board as cargo for conveyance to a named place for delivery to the consignee who is usually
identified.
Step 1
Step 2
Documentation department on the request of Logistics department prepare the B/L draft and
send it to the Freight Forwarder.
Step 3 Freight Forwarder gives that B/L draft to Shipping Line. On the basis of that B/L draft
Shipping Line prepares the B/L first print and send it to the documentation department via FF.
Step 4
Now, Documentation department check the B/L first print and if there is any correction than
that corrected B/L is again send it to the Shipping Line via Freight Forwarder.
58
Shipping Line finally prepares Final B/L and again sends it to the Documentation department
via Freight Forwarder.
Step A
There are some cases in which Documentation department directly deals with Shipping Line
for complete B/L process (like some time in FOB cases).
Note:
B/L Draft: As specified in purpose it is a temporary copy about the details require by
shipping line to prepare B/L first print. (See Appendix – O. B/L Draft)
B/L First Print: Shipping Line uses that B/L Draft and prepares first print of that in their
standard format. (See Appendix – O. B/L First print)
Final B/L: It is a copy prepared by shipping Line after complete correction done by
Documentation department.
59
CHAPTER 5
BILLING, LICENSE AND INSURANCE
5.1 BILLING
ESSAR has contact with Ideal transportation. Whenever any product has to be send to the
source port ESSAR deals with Ideal transportation. There are mainly two kinds of transport
facility available from Ideal:
Containerize.
Break-bulk.
And bills are generated as per transport facility.
I. Normal Billing: This is applied when company complete it’s task through 3PL and in case
of ESSAR it is Rushabh, Damani, OM and Vadiawala are the main freight forwarders who
works for them.
II. FOB (Freight on Board) Billing: This is applies if the customer has selected it’s own
freight forwarder but difference from the above one is only that it does not consider freight
charges.
Custom House Agent is the person who clears the custom related task for the company and
company pays the charges for it.
60
Note: We are not able to show the billing documents in appendix because it confidential part
of ESPF.
5.2 LICENSE
License is one of the important documents. It provide company to export their products in
foreign countries with different type of scheme like remission scheme, EPCG scheme, ECGC
scheme, DEPB Scheme and many more define by Ministry of commerce and industry. Which
is beneficial for duty exemption and many other benefits in terms of money and to import
other products.
Note: We are not able to provide much detail about license and its document in appendix
because it confidential part of ESPF.
5.3 INSURANCE
Insurance is also one of important document because it covers physical damage to, or loss of
your goods whilst transit by land, sea and air.
Note: We are not able to provide much detail about insurance and its document in appendix
because it confidential part of ESPF.
61
CHAPTER 6
CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion
The Indian steel industry is among the upcoming industries of the world. It has a number of
iron ores, which means that it has plenty of resources from which to draw its raw material.
The rate of production of steel in India has been going up at a steady rate in the last few
years.
Global marketing logistics, referred to earlier in chapters can present to the unwary and
uninitiated an enormously formidable barrier. Having the correct documentation internally
and externally is vital or goods and services just simply cannot be exported.
Marketers or their agents must be familiar with Terms of Access, contracts, trade terms,
commercial documents including insurance and financial documents, and the consequences of
breaking any of the terms and conditions.
In many products, the more familiar the distribution network players are with each other and
their individual systems, the easier the documentation process becomes to set up and operate.
This reduction of transaction risk is a bonus and may involve the use of specialist agencies
like freight forwarders and shippers.
6.2 Recommendation
One way of loading the truck very fast is to have multiple loading points instead o having
only one or two. By having more than one loading point one truck does not need to wait for
another one to get loaded, it can also load it’s truck from another loading point simultaneously.
Due to this waiting time will be reduced.
Warehouse management is one of the most important activities in logistics because it is the
place where your final product is being placed so the proper management should be there in
warehouse like:
62
[a] Codes nomenclature:
Product should be placed in such a way that it can be easily found from the large number of
products for that purpose it should have standard specification.
For example:
Here in the above example it shows that product number 876345 resides in A section’s 2nd
row 3rd column.
By following such type of standard rule it is very easy to find the product where it is actually.
The product should not be placed one over another or if it is placed than it should not be more
than 3 levels because it will damage the product reside in bottom and its cost lakhs of rupees.
There should be proper identification mark on the product, which shows whether the product
is being exported at international level or domestic level.
4. SMS Portal:
As the plant is very big, in order to maintain effective logistics in the company a proper
communication should be there among the people and SMS portal would be one of the
services that will keep all the logistics person in contact. Whatever the necessary information
that needs to be delivered timely can be easily forwarded to everyone at a right time. Many a
times there is a need of meeting to be conducted but in case if the management is running
short of time in this case also this service would be helpful.
63
CHAPTER 7
BIBLIOGRAPHY
[1] http://www.essar.com
[2] http://www.essarsteel.com/steel.htm
[3] http://www.iccwbo.org
[4] http://dgft.gov.in
[5] Brodie, Peter. Dictionary of Shipping Terms, Third Edition, 1997.
[6] Sullivan, Eric. The Main Encyclopedic Dictionary, Fifth Edition, 1996.
[7] Keegan, W.J. 1989, "Global Marketing Management", 4th ed., Prentice Hall International
Edition.
[8] Kwelepeta, S.L "Export Documentation", op. cit. pp 89-98.
64
APPENDIX -
A) Excise Invoice.
B) ARE1.
C) Packing List.
D) Custom invoice or Pre-shipment Invoice.
E) Shipping Bill-EP Copy
F) Letter of Credit (L/C).
G) Shipping Advice.
H) Beneficiary Certificate.
I) Preferential Certificate of origin
J) Non-Preferential Certificate of origin
K) Bill of Exchange.
L) Commercial Invoice.
M) Mill Test.
N) Fumigation Certificate.
O) Bill of Lading
P) Weight Note.
Q) Covering Letter.
R) Delivery Order.
S) Vessel and other Important Details.
T) FG Status.
U) Mate receipt.
V) Export vehicles in Plant.
W) Container placement Slip.
X) Glossary.
Y) Form 13.
A. Excise Invoice A
27.670 27.985
CONTAINER NO SEAL NO AND COIL WISE DETAILS AS PER ANNEXURE I For ESSAR STEEL LTD
(PRECOATED FACILITY)-
AUTHORISED SIGNATORY
'(i\iVO I CE DETI',ILS
. ..... r nv o i c e A. "- .
... '
.\ "
~ ., ~
'\ ' .
~ ":"
V l::lo ~. : EH 9 1~Vf ' ErO I~'R . · -{ 8 9 19 . 7 0
.. -" ",<::>. 3~
,\-'~ "'" ··. . 0',' 8 IlrR ' .
! nv. no. : "'000 . ,;:7 1 ..
'l-hv D1: . 15/05/2010
N .;;t, of con .: CF' Cu r.'!' ( i n v ;. : USl'D
·E A r h a n ~ e ra t (; i L Oq. ( U SD) = ~" OO Q (INR i .'
Ra t e cur- r-en c JJ l mo un t
.~ n ~ ; u r a p c e 0 ·10 0.00
i :- '~"':} : i 9 h t: usn 699. 48
D i !:- c o u r t .: 00 o. O. 00
C Dmrn i s s .l o n : 0 .00 c . cc
i'lj- I' '''''
- ... .. - r j-"=d"-
\:: - ,- tl'
. ~on oJ<: '. ....' r,
·/,D ~
..... 'r! O. CO
P a c }: in ~! Charg2s .. -· usn O. 00
N a ~u r e of payme n t :LC P e ri /d of P a y me n t::
n t J ~j e r Na m2 & Ad d re S$ . G U o~ C~rt ificate 5 .
<: :3 ;~r'1E !~ S CON SI GNE E -.
BENEFICIARY'S CERTIFICATE
WE HEREBY STATE THAT COPY OF REQUIRED DOCUMENTS HAVE BEEN SENT DIRECTLY
TO
ASE METALS N.V., DE KEYSERLEI 58, B-2018
ANTWERPEN WITHIN 3 DAYS AFTER B/L DATE
AUTHORISED SIGNATORY
BILL OF EXCHANGE
DRAWN UNDER IRREVOCABLE DOCUMENTARY CREDIT NO. FOBEA1M62165000 DATED
05.02.2010 OF FORTIS BANK S.A./ N.V.BRUSSELS( ALL BELGIAN OFFICES) BRUSSELS)
AT SIGHT
PAY THIS SECOND OF EXCHANGE (FIRST OF THE SAME TENURE AND DATE BEING UNPAID)
TO ORDER OF
TO
FORTIS BANK NV/SA
BELGIUM
SHIPPING MARKS :
ASE METALS
612.0087
CAUCEDO
DOMINICAN REPUBLIC
SIZE
WEIGHT
7 GP10C04698 1.27MM TCT X 1219MM X COIL 275 0.039 0.236 0.010 0.012 OK
AUTHORISED SIGNATORY
N. Fumigation certificate
NOTIFY:
Description of Goods
NET WEIGHT (MT) : 63 COILS
341.000 13 X 20' CONTAINERS SAID TO CONTAIN 63 COILS
Consignee (negotiable only if consigned "to order", "to order of" a named Person or "to order of bearer") Notify Party (see clause 22)
OOO 'SEVMETALLSNAB SPB ' ' VNESHTRANSPORT ' LLC
KAMCHATSKAYA STR, 13, A
192007, SAINT PETERSBURG,
RUSSIA
Vessel (see clause 1 + 19) Voyage No. Place of Receipt. Applicable only when document used as Multimodal Transport B/L. (see clause 1)
MAERSK KALMAR 1006
Port of Loading Port of Discharge Place of Delivery. Applicable only when document used as Multimodal Transport B/L. (see clause 1)
Nhava Sheva Port, India Saint Petersburg Port,Russia Saint Petersburg Port,Russia
VERIFY
COILS
TERMS OF DELIVERY : CFR SAINT
PETERSBURG
PORT, RUSSIA (INCOTERMS 2000)
S. BILL NO.
8369523,8373983,8373979,8377863
IEC NO. 0388147831
COPY
NET WEIGHT (MT) :341.000
GROSS WEIGHT (MT) :346.110
Carrier's Receipt (see clause 1 and 14). Total number Place of Issue of B/L SHIPPED, as far as ascertained by reasonable means of checking, in apparent good order and condition unless otherwise stated herein, the total number
or quantity of Containers or other packages or units indicated in the box entitled "Carrier's Receipt" for carriage from the Port of Loading (or the Place
of containers or packages received by Carrier.
Pune of Receipt, if mentioned above) to the Port of Discharge (or the Place of Delivery, if mentioned above), such carriage being always subject to the terms,
13 containers rights, defences, provisions, conditions, exceptions, limitations, and liberties hereof (INCLUDING ALL THOSE TERMS AND CONDITIONS ON THE REVERSE
HEREOF NUMBERED 1-26 AND THOSE TERMS AND CONDITIONS CONTAINED IN THE CARRIER'S APPLICABLE TARIFF) and the Merchant's attention
is drawn in particular to the Carrier's liberties in respect of on deck stowage (see clause 18) and the carrying vessel (see clause 19). Where the bill of
Number & Sequence of Original B(s)/L Date of Issue of B/L
lading is non-negotiable the Carrier may give delivery of the Goods to the named consignee upon reasonable proof of identity and without requiring
THREE/3 surrender of an original bill of lading. Where the bill of lading is negotiable, the Merchant is obliged to surrender one original, duly endorsed, in exchange
for the Goods. The Carrier accepts a duty of reasonable care to check that any such document which the Merchant surrenders as a bill of lading is
genuine and original. If the Carrier complies with this duty, it will be entitled to deliver the Goods against what it reasonably believes to be a genuine
and original bill of lading, such delivery discharging the Carrier’s delivery obligations. In accepting this bill of lading, any local customs or privileges to
Declared Value (see clause 7.3) Shipped on Board Date ( Local Time ) the contrary notwithstanding, the Merchant agrees to be bound by all Terms and Conditions stated herein whether written, printed, stamped or
incorporated on the face or reverse side hereof, as fully as if they were all signed by the Merchant.
2010-04-26 IN WITNESS WHEREOF the number of original Bills of Lading stated on this side have been signed and wherever one original Bill of Lading has been
surrendered any others shall be void.
Signed for the Carrier A.P. Møller - Mærsk A/S trading as Maersk Line
This transport document has one or more numbered attachments As Agent(s) for the Carrier
REF : 30000000**
TO,
SUB : EXPORT DOCUMENTS FOR USD **** UNDER L/C NO FOBEA1M621165000 DATED05.02.2010
WITH REFERENCE TO THE ABOVE WE ENCLOSE HEREWITH THE FOLLOWING DOCUMENTS OF OUR EXPORT TO
ASE METALS WE REQUEST YOU TO NEGOTIATE / DISCOUNT THE SAME UNDER L/C & CREDIT THE PROCEEDS TO
OUR C/C/PACKING CREDIT ACCOUNT UNDER INTIMATION TO US
Please acknowledge the receipt of the same and negotiate the document at the earliest.
Thanking You,
AUTHORISED SIGNATORY
NB: We also enclose one set of the documents for negotiating Banks record.
DELIVERY ORDER
The Officer on Duty, (Factory Stuffing)
VIRGO CONTAINER YARD
OPAL ASIA DEPOT (I) PVT. LTD.,
VIRGO YARD, NH-4B, JASAI,
JNP - PANVEL ROAD, Date : 05-MAY-10
NHAVA SHEVA
SR. NO : 363IN363420420510-1
Dear Sirs,
Please deliver, 26 X 20DV Containers to the transporter or M/s. ESSAR STEEL LTD
for stuffing at their factory premises, planned to be loaded on MSC ANTWERP / 7R, NSICT - NHAVA SHEVA INTL. CONTAINE
for the port of ANTWERP of Final Destination PORTBURY,
Container
HEAVY DUTY CONTAINERS
Thanking you,
CC: The Clearing Agents M/s. Tel No: , Broker : DAMANI SHIPPING P LTD
Please ensure that seal numbers are shown against each container on the shipping Bill copy failing which the same
will not be accepted by our stevedores.
This Delivery order is valid Till 08-MAY-10
SPECIAL INSTRUCTIONS:-
1) PLEASE ENSURE NECESSARY IMCO LABLES WHICH ARE SUPPLIED BY OUR OFFICE ARE DULY AFFIXED ON ALL
FOUR SIDES OF THE CONTAINER PRIOR TO RECEIPT AT CY POINT. ANY FINES FOR NON-AFFIXMENT OF IMCO LABLES
WILL BE RECOVERED FROM YOURSELVES.
2) ALL FACTORY/HOUSE PACKED CONTAINERS MUST BE GIVEN CUSTOMS OUT OF CHARGE AND BROUGHT BACK
WITHIN 7 DAYS FROM THE DATE OF PICKUP (INCLUDING SUNDAYS AND HOLIDAYS) FAILING WHICH DETENTION
CHARGES WILL BE RECOVERD AS PER ATTACHED DETENTION TARIFF.
3) IF CONTAINER(S) PICKED UP AGAINST THIS BOOKING IS/ARE INTERCHANGED WITH OTHER BOOKING/FOR ANY OTHER
OR PORT WITHOUT PRIOR INTIMATION TO MSC OFFICE, PENALTY OF USD 50/TEU WILL BE APPLICABLE FOR SAME
4) PLEASE SUBMIT RELEVANT SHIPPING BILL 'OUT OF CHARGE' TO OUR SURVEYORS MASTER MARINE AT DRONAGIRI.
5) CARGO NOT TO EXCEED PAYLOAD AS INDICATED ON CONTAINER. CARRIER WILL NOT BE RESPONSIBLE FOR
STUFFING CARGO OVER RATED CAPACITY.
6) SHIPPER WILL BE RESPONSIBLE FOR ANY CONTAINER DAMAGE IF CAUSED DUE O IMPROPER/ OVERWEIGHT
STUFFING.
7) IN CASE OF OPEN TOPS , SHIPPER TO MAKE SURE BEFORE PICK UP THAT ALL REMOVABLE PARTS SUCH AS
TARPULIN,TIR CORD, ROOF BOWS ETC.. ARE INTACT.
8) PLEASE SUBMIT YOUR PROFORMA B/L WITH FULL ADDRESS, TEL/FAX NO. OF CONSIGNEE
AS SOON AS CARGO/CONTAINER IS GIVEN CUSTOMS OUT OF CHARGE. FAILING WHICH LATE DOCUMENTATION
CHARGES RS. 1000/BL WILL BE APPLICABLE.
9) FOR DOCK STUFFING WE WILL NOT ACCEPT/STUFF CARGO ABOVE 20MT PER CONTR.
10) VERY IMPORTANT - MSC DOES NOT ACCEPT SHIPMENTS WHERE SWITCH B/LS ARE INVOLVED.
ANY REQUEST FOR SWITCH B/L AFTER SHIPMENT IS EFFECTED WILL NOT BE ENTERTAINED.
11) CONTAINERS WHICH HAVE BEEN FUMIGATED ARE REQUIRED TO BE DECLARED AS HAZARDOUS
AND HAZARDOUS CARGO DECLARATION REQUIRES TO BE SUBMITTED.
1 21/17905 SUPE, BRAZIL MSC MSC LIBERTY/38R 30.05.10/1000 HRS 30.05.10/1200 HRS
BEIRA,
2 21/17213 MOZAMBIQUE EMIRATES VIONIA/1017S 01.06.10/1500 HRS 01.06.10/1800 HRS
3 21/15594 CAUCEDO CSAV CSAV APPENNINI / 1021 29.05.0 / 23.59 HRS 28.5.10 /1700 HRS
NEDLLOYD
7 21/16927 MERSIN, TURKEY MAERSK EUROPA/1010 01.06.10/1800 HRS 01.06.10/1200 HRS
8 21/17571 SUAPE, BRAZIL MSC MSC LIBERTY/38R 30.05.10/1000 HRS 30.05.10/1200 HRS
NEDLLOYD
9 21/17525 SOHAR SAFMARINE EUROPA/1010 01.06.10/1800HRS 31.05.10
NEDLLOYD
10 21/18345 VENEZIA MAERSK EUROPA/1010 01.06.10/1800 HRS 01.06.10/1200 HRS
NEDLLOYD
11 21/18174 GIOIA TAURO MAERSK EUROPA/1010 01.06.10/1800 HRS 01.06.10/1200 HRS
Note: For Study purpose only
Contd.
Table:
Vessel
Details
S. VESSEL
AND OTHER IMPORTANT DETAILS
FREIGHT GATE SAILING REMARK SI CUT OFF & TIME POD TRANSIT TIME
$1,639 NSICT 31.05.10 GATE WILL OPEN AFTER 24.05.10 29.05.10/1400 HRS TANGER 32 DAYS
$1,480 NSICT 01.06.10 GATE WILL OPEN ATER 25.05.10 ANTWERP 59 DAYS
$1,110 JNPT 01.06.10 GATE WILL OPEN ON 27/05 MORNING JEBEL ALI 30 DAYS
$1,091 NSICT 03.06.10 GATE WILL OPEN AFTER 27.05.10 01.06.10/1200 HRS PORT SAID 24 DAYS
$609 NSICT 31.05.10 GATE WILL OPEN AFTER 24.05.10 29.05.10/1500HS JEBEL ALI 30 DAYS
GIOIA
$939 NSICT 03.06.10 GATE WILL OPEN AFTER 27.05.10 01.06.10/1200 HRS TAURO 34 DAYS
GIOIA
$1,089 NSICT 03.06.10 GATE WILL OPEN AFTER 27.05.10 01.06.10/1200 HRS TAURO 18 DAYS