MBA IB Nujum Marine Export

A CASE STUDY ON EXPORT OF MARINE PRODUCTS
CAPITHAN EXPORTING COMPANY 2011
A CASE STUDY ON
“PROCEDURE FOR EXPORT OF MARINE PRODUCTS”
AT
CAPITHAN EXPORTING COMPANY, KOLLAM
PROJECT REPORT
(A Report Submitted in Partial Fulfillment of the Requirements for the
Degree of Master of Business Administration in Pondicherry University)
Submitted By
Nujum Giyaz .T
Enrollment No. 1309380004
MBA-IB
DIRECTORATE OF DISTANCE EDUCATION

PONDICHERRY UNIVERSITY
PONDICHERRY – 605 014
May 2011
CAPITAL COLLEGE, BANGALORE Page No. 1

ACKNOWLEDGEMENT
I wish to express my heartfelt gratitude in all earnestness to the following persons

without whose support and guidance this study would not have been a success.
I would like to offer my sincere thanks to Mr.Sheka, Dean (Pondicherry
University), MBA Department, Capital College, Bangalore for giving me an
opportunity to do the project work.
I sincerely take this opportunity to express my profound gratitude to Faculty.

Miss. Chaya, for her continuous encouragement and guidance in the completion
of this Dissertation Project.
I record my profound thanks to management and staff of CAPITHAN

EXPORTING COMPANY, KOLLAM for granting me permission to do this study
at their kind support through out my project.
And Mr. Alphonse Joseph, Managing Director, CAPITHAN EXPORTING

COMPANY, KOLLAM. Without whose support and persuasion I would not have
been able to complete this Dissertation Project.
I also thank my beloved parents & friends for giving me their full support and
encouragement for completing this project report.
Above all, I thank God Almighty who gave me the courage to successfully
complete this project.
Place: Nujum Giyaz .T

Date: Enrollment No. 1309380004

CERTIFICATE OF THE GUIDE
This is to certify that the Project Work titled ” PROCEDURE FOR EXPORT OF MARINE
PRODUCTS” is a bonafide work of Mr. Nujum Giyaz .T, Enrollment No.
1309380004,carried out in partial fulfillment for the award of degree of MBA-IB of
Pondicherry University under my guidance. This project work is original and not
submitted earlier for the award of any degree / diploma or associateship of any
other University / Institution.
Signature of the Guide
Name and Official Address of the Guide
Prof. Sheka
DEAN (Pondicherry University),
MBA DEPARTMENT,
CAPITAL COLLEGE,
BANAGALORE.
Guide’s Academic Qualifications,

Designation and Experience
Place: Bangalore
Date :

STUDENTS DECLARATION
I Mr. Nujum Giyaz .T here by declare that the Project Work titled
“PROCEDURE FOR EXPORT OF MARINE PRODUCTS” is the
original work done by me and submitted to the DIRECTORATE OF
DISTANCE EDUCATION, PONDICHERRY UNIVERSITY,
PONDICHERRY – 605 014 in partial fulfillment of requirements for
the award of Master of Business Administration in International
Business (MBA- IB) is a record of original work done by me under
the supervision of Prof. Sheka, Dean of MBA Pondicherry
University, Capital College, Bangalore
Enrollment No.: 1309380004

Date:
Signature of the Student

TABLE OF CONTENTS
OBJECTIVE........................................................................................................................6
RATIONALE......................................................................................................................7
SCOPE.................................................................................................................................7
...............................................................................................................8
INTRODUCTION...............................................................................................................8
RESEARCH METHODOLOGY........................................................................................9
LIMITATIONS..................................................................................................................11
REGISTRATION OF EXPORTERS................................................................................14
REGISTRATION WITH EXCISE AUTHORITIES........................................................16
OBTAINING AN EXPORT LICENSE............................................................................17
OBTAINING EXPORT CREDIT INSURANCE.............................................................18
ARRANGING FINANCE FOR THE EXPORTS.............................................................20
EXTERNAL COMMERCIAL BORROWINGS..............................................................21
EXIM POLICY 2003-07 MARINE PRODUCT EXPORT..............................................23
MARINE PRODUCT EXPORT DEVELOPMENT AUTHORITY (MPEDA)...............27
WORLD TRADE ORGANSATION AND ENVIRONMENTAL ISSUES.....................29
MARKET STRUCTURE OF MARINE PRODUCTS EXPORT.....................................33
PERFORMANCE OF THE SEAPORTS/AIRPORTS.....................................................37
STATISTICAL DATA PERTAINING TO MARINE EXPORT.....................................38
PRODUCT SPECIFICATION..........................................................................................45
PROCEDURE....................................................................................................................47
DOCUMENTATION........................................................................................................48
Preparing export documents......................................................................................48
EXPORT OF MARINE PRODUCTS FISCAL 2010-11..................................................51
CONCLUSION..................................................................................................................52
BIBLIOGRAPHY..............................................................................................................53
QUESTIONNAIRE...........................................................................................................54

OBJECTIVE
The objective of doing this project is to gain practical knowledge about PROCEDURE
FOR EXPORT OF MARINE PRODUCTS. This will enable us in having an extra edge
over our competitors.
The other objectives can be listed as below:
1. To find out the legal procedures required in starting a business in marine product
export.
2. To estimate the cost as well as the earning in this business.
3. To find out the ways of financing for this business.
4. To find out what government aids are available.
5. To find out the other strategies and requirements for this business to make it a
success.

RATIONALE
In view of the vast potential of the ever-growing fisheries market of India and looking into
the vast coastline of 8129 kms and also due to the reason that I am immensely
interested in pursuing my career as business leader or entrepreneur I am interested to
do this project. The project will enable me to know more about the industry and the
scenario of Marine Export. This project may also enable me get a placement into Export
Houses to gain a practical hand of the subject and as well, serve as a stepping-stone to
give shape to my dream of becoming entrepreneurs.
SCOPE
In the wake of this blue revolution have emerged a number of seafood superpowers and
as far as India is concerned, has vast seafood resources and is one of the emerging
global leader in seafood resources.

I being Entrepreneur would like to explore the vast seafood resource, which lies with
India, and explore its potential to the fullest.
The scope of this project includes the current scenario, factors affecting the Marine
export and other factors such as the legal aspect, process involved in export, market
potential, international laws governing export. Apart from these I am also evaluating the
cost involved to accomplish my goal.
INTRODUCTION
The population of global food resources has resulted in a worldwide blue revolution-the
seas are being increasingly tapped for their largely unexploited rich diversity of living
resources. The world’s oceans a mammoth wilderness. They are, in some ways, like a
virgin equatorial jungle, chock full of living resources and largely unexploited. Much of
this watery world is uncultivated and essentially wild. Amidst all the richness of the

marine environment occur special, as yet uncommon, situations where its potential is
being exploited.
Before 1960, the markets for Indian marine products were largely confined to
neighboring countries like Sri Lanka, Myanmar, and Singapore etc. This position
continued as long as dried items dominated exports from India. When the frozen and
canned items increasingly figured in our exports, the sophisticated affluent markets like
USA, France, Australia, Canada, Japan etc. became important buyers. Processing units
with modern machinery for freezing and canning came up at important centers to
process and pack for exports.
Over the years, the frozen seafood markets for Indian marine products have witnessed
changes. The USA was the principal buyer for our frozen shrimp for a long time but after
1977, Japan emerged as the principal buyer for frozen shrimp followed by the Western
European countries. While Japan continued to be the single largest buyer of our marine
products accounting for 15.29% in volume and 30.56% in value during 2001-02. USA
accounted for 11.55% of volume and 23.86% of the value during the same period China
accounted for 31.75% in volume and 10.03% in value of the total export of Marine
Products from India.
RESEARCH METHODOLOGY
In the process of finding out the relevant information related to this project the research
would be dependent on the secondary data being the major part however the primary
data will also include some portion of this research data.
For gathering the primary data help of some exporters will be taken and questionnaire
would be presented before them whereas the source of the secondary data would be the

government reports as well as the internet, also the manuals and the magazines will be
taken help of, to gather the information.
The techniques of sampling will also be used to select the exporters and all the relevant
sources will be contacted for developing the knowledge regarding the subject.
Primary data: questionnaire, asking the exporters and the government authorities and
officials of export promotion council, sales tax authority, ITC etc.
Secondary data: magazines, government reports on marine product export, manuals &
government records and Internet.

LIMITATIONS
Although utmost care will be taken in making this report a complete information
regarding the subject, however changing scenario, changing government policies as well
as the limited data available with the sources, moreover the methods used in gathering
the data are the factors on which the report depends. These factors affect the report and
so limit its scope on matter of the 100% coverage. It is also important to add that in such
case the reports of the magazines and above it the latest government policies should be
approached.

RESEARCH, PRODUCT DEVELOPMENT, VALUE ADDITION AND QUALITY
Government has been taking steps for promotion of export of value added products for
the last several years through the Marine Products Export Development Authority
(MPEDA). As a result, several products, including IQF shrimps, cooked shrimp, fish
fillets, squid rings, cuttlefish fillets etc. are being exported in value added forms. Latest
on the anvil are Bread and battered Cutlet, Seafood mix in tray pack, Shrimp ring, Clam
meat and Squid tentacles, Stuffed crab, Shrimp skewered, Breaded battered butterfly
shrimp etc. Instant fish curry in retort pouches developed with the technical assistance of
CIFT was test marketed through super market chains in Middle East.
The dietary habits of the people are changing fast and India is gearing itself to produce
value added products in convenience packs by adopting latest post harvest techniques
in seafood handling and processing. A lot of Research and Development work is
required within the country to develop new products for export. Technology is imported
in several areas for processing new products to make use of India's unexploited and
under exploited fishery resources.
Several importing countries are stipulating stringent quality control for marine products.
Introduction of the concept of HACCP by USFDA, ISO 9000 and European Community
directive demand very high hygienic standards in the production and processing
facilities. Modernization of processing facilities to meet international standards is of
primary importance for the industry in the coming years.
The seafood industry in India is currently in a transitional stage from the traditional block
freezing on the production of Individually Quick Frozen (IQF) and other value added
frozen items for export to the major overseas markets. Revised standard are also
prepared for the processing, pre-processing, and cold storage’s. Steps are being taken

for bringing in more processing plant for export to EU countries. MPEDA is organizing
training programs on HACCP and a number of processor were issued certificate of
scrutiny of HACCP compliance.
Indian exporters of shrimps to the USA had to face a major crisis recently when the USA
stipulated that it would not import any shrimp from India, if during the process of catching
the fish, the endangered species of sea turtles are in any way harmed. Many Indian
exporters have now been forced to use marine vessels fitted with Turtle Extruder
Devices at considerable extra cost in order to gain access to or retain a foothold in the
US market. In addition to the measures, which are being introduced in response to the
pressures being exerted by the developed countries, some action has been taken on
India’s own initiative.
For example, aquaculture industry emerged as an important source of foreign exchange
in the recent past. However, it can cause environmental damage in the coastal areas of
Andhra Pradesh and Tamilnadu where aquaculture industry is mostly concentrated.
Through a judicial verdict, further growth of aquaculture has been brought to a halt.
Tamilnadu Government has passed an act, which stipulates that all new fisheries
projects will have to be cleared by a district council, comprising the District Collector,
pollution control board representative as well as other concerned officials. Similarly, a
large number of tanneries in Tamilnadu have been closed down through a court order
because of environmental damage being caused by them.

REGISTRATION OF EXPORTERS
An exporter is primarily required to register himself with the Import Export Authorities,
Export Promotion Council, Sales Tax Authorities and Central Excise Authorities.
1. REGISTRATION WITH REGIONAL LICENSING AUTHORITIES (OBTAINING IEC
NUMBER)
The Custom Authorities will not allow to import or export goods into or from India unless
one hold a valid Importer Exporter Code number. The Importer Exporter Code Number
is issued under the Import Export Policy and Handbook of Procedures issued by the
Ministry of Commerce. The IEC number is required to be filled in the Bill of Entry (in
case of imports) or Shipping Bill (in case of exports) prescribed by rules made under the
Foreign Trade (Development and Regulation) Act or the Customs Act 1962.For obtaining
/IEC registration, the Registered or Head Office of the exporter should apply to the
Licensing Authorities concerned: The Joint Director General of Foreign Trade, 4,
Esplanade East, Kolkata- 700069. Before applying for IEC number, it is necessary to
open a bank account in the name of the company with any commercial bank authorized
to deal in foreign exchange. The application form should be supported by the following
documents:
Covering letter.
Bank Receipt/Demand Draft for payment of the fee of Rs. 1,000/-
Certificate from the Banker of the applicant firm.
Two copies of Passport size photograph of the Applicants, duly attested by the
banker to the applicant(s). One photo extra attached with the Application.

A photocopy of partnership deed duly attested, list of partners with Father’s name and
residential address, and NOC certificate
Copy of Income-tax Permanent Account Number.
Declaration by the Applicant that the Proprietor/Partner/Directors of the applicant firm
are not associated with Proprietor/Partner/Directors with any other company/firm, which
has been caution, listed by the RBI.
Exporters profile as per the form given in Appendix 16 III. The Regional Licensing
Authority concerned will grant EIC Number to the Applicant.
2.REGISTRATION WITH EXPORT PROMOTION CONCILS
If the application of Registration is granted, the Registration authority issues the
Registration-cum-Membership Certificate indicating the status of the Applicant as
Merchant or Manufacturer-Exporter in the form given at Appendix 16 VII.
Any person applying for a license to import-export is required to furnish a Registration-
cum-Membership Certificate (RCMC) granted by the Export Promotion council (MPEDA,
for marine products). If the application for registration is granted, The Registering
authority issues the Registration-cum-Membership Certificate indicating the status of the
applicant as Merchant or Manufacturer-Exporter. The RCMC is deemed to be valid from
1st April of the licensing year in which it was issued and shall be valid for five years
ending 31st March of the licensing year.
3.REGISTRATION WITH SALES TAX AUTHORITIES
Goods, which are to be shipped out of country for exports, are eligible for exemption
from both Sales and Central Sales tax. For this purpose the export firm should be

registered with Sales tax authorities of the concerned State after following the
procedures prescribed under the Sales Tax Act applicable to the concerned state.
General procedures for Registration are-
Since registration applies to the Sales Tax Officer under whose jurisdiction your
head/registered office is located. Thereafter a Sales Tax Officer may visit my office to
check:
Account books showing sales/purchase transactions
House rent/Tax receipt
Partnership deed
Ration card etc.
Report is sent to the STO for registration or otherwise
On receipt of the report, the STO may call exporter for further clarification, and if
satisfied,
Acceptance of Registration.
REGISTRATION WITH EXCISE AUTHORITIES
Goods meant for export are exempt from Excise duty. For this purpose the manufacturer
and merchant exporters have two options. Either they can deposit excise duty at the tie
of clearance from the factory and later on take refund or can establish a bond with
maritime collector of central excise. A running bond account is maintained which is
credited after proof of export including Bill of Lading, Shipping Bill and AR-4 are
submitted with Excise Authorities.

OBTAINING AN EXPORT LICENSE
The current Export Licensing policy of the Government of India is contained in the New
Export Import Policy and Procedures, 2002-2007, April 2002. However it ay be stated
that the Prospective Exporter, all his goods may be exported without any restriction
except to the extent such exports are regulated by the ITC(HS) classification of Export
Import items or any other provisions of this policy or any other law for the time being in
force. The Director General Of Foreign Trade may, however, specify through a Public
Notice such terms and conditions according to which any goods, not included in the ITC
(HS) classification of Export and Import items may be exported without a
license/certificate/permission.
APPLICATION FOR AN EXPORT LICENCE
An application for grant of export license in respect of it is mentioned in Schedule II of
ITC (HS) Classification of Export and Import items may be made in the form given in
Appendix-16 of Handbook or 16A of Handbook of procedures, as the case may be, to
the Director General Of Foreign Trade and shall be accompanied by the documents
prescribed therein. The Export facilitation Committee shall consider such application on
merit for issue of Export license/certificate/permissions.
An Inter-Ministerial working group in Director General Of Foreign Trade shall consider
application for export of special chemical, organism, Materials, Equipments and
Technologies (SCOMET) as specified in schedule 2 Appendix-3 of ITC (HS) on the basis
of guide lines issued in this regard from time to time.

OBTAINING EXPORT CREDIT INSURANCE
Export Credit Insurance can be issued by the ECGC (Export Credit and Guarantee
Corporation of India Limited), for the following covers:
Standard policies to protect you against the risk of not receiving payment while trading
with overseas buyers in short term credit.
Specific policies designed to protect you against risk of not receiving payment in respect
of
Export on deferred payment terms
Services rendered to foreign parties, and
Construction work
Financial guarantee issued to banks against risk involved in providing credit or
guarantee facilities to the exporter, both at the pre-shipment or post-shipment stages
and
Special schemes such as transfer guarantee issued to protect banks which add
confirmation to Letters of Credit, Overseas Investment Insurance and Exchange
Fluctuation Risk Insurance.
For obtaining a policy, an exporter should apply to the nearest office of the ECGC in the
prescribed form. The exporter should confirm the acceptance of the premium rates,
which is intimated during the time of obtaining the prescribed proposal form from the
ECGC office. He is also required to remit a premium of Rs. 7,500.
Credit limit is the limit upto which claims can be paid under the policy for losses on
account of commercial risks. If no application for credit limit on a buyer has been made,
ECGC accepts liability for commercial risks upto a maximum of Rs. 500000 for DP/CAD

transaction on a particular buyer subject to the condition that the claims will be limited to
two buyers during the currency of policy or commercial risks upto a maximum of Rs.
300000 for DA transactions and Rs. 10,00,000 for DP/CAD transactions provided that at
least three shipments have been affected to the buyer during the preceding two years on
similar payment terms and at least one of them was not less than the discretionary limit
availed of by the exporter and the buyer had made payment on the due dates.

ARRANGING FINANCE FOR THE EXPORTS
Financial assistance to the exporter is generally provided by the commercial bank before
shipment as well as after shipments of the goods. Pre-shipment finance is given for
working capital for purchase of raw material, processing, packing, transportation, ware-
housing etc. of the goods meant for export. Post-shipment finance is provided for
bridging the gap between the shipment of goods and realization of export proceeds. The
banks do the later by purchasing or negotiating the export documents or by extending
advance against export bills accepted on collection basis.
I. PRE-SHIPMENT FINANCE
An exporter is supposed to make an application for Pre-Shipment Advance along with
the following documents:
Confirmed export order/contract or L/C etc.
An undertaking that the advance will be utilized for the specific purpose of procuring
/manufacturing/shipping etc., of the goods meant for export only,
Copies of Income Tax/Wealth Tax Assessment order for the last 2/3 year in the case of
sole proprietary and partnership firm.
Copy of Importer’s, Exporter Code Number.
Copy of a Valid RCMC held by the exporter and/or the Export the Export/Trading/Star
Trading House Certificate.
Appropriate policy/guarantee of the ECGC
Any other document required by the Bank.

II. POST-SHIPMENT FINANCE
Post-shipping finance is provided against shipping documents. It is also provided against
duty drawback claims.
III. FORFAITING FINANCE BY AUTHORISED DEALERS
RBI has now permitted the authorized dealers (Banks) to arrange forfeiting of medium
term export receivables on the same lines as per the schemes of EXIM Bank. Forfeiting
is a form of trade finance involving discounting of mid-term export receivables with or
without recourse to the exporter. Forfeiting may be usually employed as an additional
window of export finance particularly for exports to those countries for which normal
export credit is not intended by the commercial bank.
EXTERNAL COMMERCIAL BORROWINGS
Proposals for raising foreign currency loans/credit viz Buyer’s credits, Supplier’s credit or
lines of credits by firms/companies/lending institutions, banks, etc., for financing costs of
import goods, technology or for any other purpose, other than short-term loans/credits
maturing within one year should first be submitted to Government of India, Ministry of
Finance (Department of Economic Affairs), ECB division, New Delhi for necessary
clearance.

EXIM BANK FINANCE
Export finance is also made available by the EXIM Bank. They provide direct financial
assistance, overseas investment finance, term finance for export for export
development, pre-shipping credit, buyer’s credit, re-lending facility, export bill re-
discounting, refinance to commercial banks, etc. to promote Indian Exports.
The EXIM Bank also extends non-funded facility to Indian exporter in the form of
guarantees. The diversified lending programs of the EXIM Bank now covers various
stages of export, i.e. from the development of markets to expansion of production
capacity for exports.
SALIENT FEATURES OF THE EXIM POLICY 2002- 07
Customs Adoption and harmonization of the 8 digits ITC (The International Trade
Commission)(HS) code. The percentage of physical examination of export cargo has
already been reduced to less than 10 percent except for few sensitive destinations.
Banks Direct negotiation of export documents to be permitted. This will help the
exporters to save bank charges.100 percent retention EEFC accounts (Exchange
Earners Foreign Currency Accounts)
The repatriation period for realization of export proceeds extended from 180 days to 360
days. The facility is already available to units in SEZ and exporters exporting to Latin
American countries.

EXIM POLICY 2003-07 MARINE PRODUCT EXPORT
ITEMS PERMITTED
(i) No Quantitative restrictions on export.
(ii) License under EXIM policy not required for import of 125 species/groups of fish,
crustaceans, molluscus and other aquatic invertebrates covered under FREE Policy in
Chapter 3 of ITC (HS) classification of Export &Import items under the EXIM policy.
2. PROMOTIONAL MEASURES
(i) Central assistance to States for development of critical infrastructure for export
such as roads, inland container depots, container freight stations, Export Promotion
Industrial Parks and for equity participation in infrastructure projects.
(ii) Encouragement’s to State Governments for setting up Export Zones.
(iii) Declaration of Towns of Export Excellence to encourage setting up of critical
infrastructure for export production, encourage common service providers and facilitate
availability of better technological services and integrate benefits under the other
schemes of EXIM Policy for the units in such towns.
(iv) Market Access Initiative Schemes for encouraging increased marketing efforts by
exporters/Brand promotion
(v) Schemes to promote the Concept of Total Quality Management.
3. IMPORTS FOR EXPORT PRODUCTION

(i) Advance license for duty free import of inputs for export production.
(ii) Duty free import of raw material for jobbing for export/re export.
(iii) Manufacturer exporters, merchant exporters tied to supporting manufacturers and
service providers eligible for import of capital goods at 5% Customs duty linked to
fulfillment of export obligation in 8 to12 years under EPCG Scheme.
4. EOU/EPZ/SEZ
(i) Scheme of 100% EOU/Export Processing Zone/Special Economic Zone for export
production continues. No trading units permitted under the scheme.
AVAILING FACILITIES UNDER EXIM POLICY, 2002-07
In order to promote exports from India, the government has framed following special
schemes
100% EXPORT ORIENTED UNITS AND UNITS IB EPZs/STPs/EHTPs
Units undertaking to export their entire production of goods and services may be set up
under the Export Oriented Unit (EOU) Scheme, Export processing zone (EPZ) schemes,
Electronic Hardware Technology Park (EHTP) schemes or Software Technology Park
(STP) schemes. The unit established here may export any product except restricted and
prohibited items of exports in ITC (HS).
Facilities to 100% EOUs/EPZ/STP/EHTP units
Are eligible for concessions in respect of payment of Income Tax

Full freedom to sub-contract part of the production and production process in the
domestic area
Are exempted from industrial licensing for manufacture of items reserved for Small Scale
Industry Sector
Are permitted 100% Foreign Direct Investment through automatic approval route except
for few sectors
The unit set up in EPZ will be charged concessional rate for lease of industrial plot,
building allotted.
EOUs and EPZ units can also obtain indigenous capital goods, raw materials,
components etc, from the domestic tariff area (DTA). Such supplies should be exempted
from Central Excise Duty.
EPZ units will be automatically given green card by Development Commissioner of the
EPZ, after execution of legal undertaking.
SPECIAL ECONOMIC ZONES (SEZs)
Special Economic Zones (SEZs) is a specially delineated duty free enclave and shall be
deemed to be foreign territory for the purpose of trade operations and duties and tariffs.
EXPORT PROCESSING/FREE TRADE ZONES
Export Processing Zones have emerged as effective instruments to boost exports of
manufactured products. The Zones, set up as enclaves separated from the Domestic
Tariff Area by physical barriers, are intended to provide an internationally competitive
duty free environment for export production, at low costs. This enables the products to
be competitive, both quality-wise and price-wise in the international market.

The first Free Trade Zone was established at Kandla in 1965, followed SEEPZ
(Mumbai), Falta (Calcutta), Noida (U.P.), Chennai, Cochin, Vishakhapatnam (Andhra
Pradesh) and Surat. All these Free Trade Zones except SEEPZ is the Electronics
Exports Processing Zone at Santa Cruz, Mumbai. The Govt. has also permitted setting
up of EPZs in private/joint sector.
So far, the following seven free trade and export processing zones have been
established in the public sector –
Cochin Export Processing Zone, Kerala.
Falta Export Processing Zone, W.B.
Chennai Export Processing Zone, Tamil Nadu
Kandla Free Trade Zone, Gujarat
Noida Export Processing Zone, U.P.
Santacurz Electronics Export Processing Zone, Mumbai
Vishakhapatnam Export Processing Zone, Andhra Pradesh.

MARINE PRODUCT EXPORT DEVELOPMENT

AUTHORITY (MPEDA)
The Marine Products Export Development Authority (MPEDA) was constituted in 1972
under the Marine Products Export Development Authority Act 1972. The role envisaged
for the MPEDA under the statute is comprehensive - covering fisheries of all kinds,
increasing exports, specifying standards, processing, marketing, extension and training
in various aspects of the industry.
MPEDA functions under the Ministry of Commerce, Government of India and acts as a
coordinating agency with different Central and State Government establishments
engaged in fishery production and allied activities.
The plan schemes of the Authority are implemented under four major heads:
Export production - Capture Fisheries
Export production - Culture Fisheries
Induction of New Technology and Modernization of Processing Facilities
Market Promotion
MPEDA also carries out the following functions:
Registration of infrastructure facilities for seafood Export trade,
Collection and dissemination of trade information
Projection of Indian marine products in overseas markets by participation in overseas
fairs and organizing international seafood fairs in India.
Implementation of development measures vital to the industry like distribution of
insulated fish boxes, putting up fish landing platforms, improvement of peeling sheds,

modernization of industry such as upgrading of plate freezers, installation of IQF
machine. Promotion of brackish water aquaculture for production of prawn for export.
Promotion of deep sea fishing projects through test fishing, joint venture and equity
participation.
MPEDA plays an advisory role in formulation of various rules and regulations connected
with fishery and aquaculture.
MPEDA acts as a liaison agency between various stakeholders in shrimp/prawn culture
such as banks and other financial Institutions; Insurance agencies etc.; State Fisheries
Departments; Research institutions and the farmers and entrepreneurs. Etc.
MPEDA implements for providing the techno-economic viability for culture of diversified
variety of exportable fish and shellfishes by utilizing technology developed indigenously
or importing the same from overseas.
MPEDA strives to ensure sustainability of aquaculture and make it environmentally
friendly. As a member of Aquaculture Authority MPEDA is involved in regulation of
shrimp culture. Shrimps forms a major part of Indian export, also Indian shrimps are
highly popular in the global market.

WORLD TRADE ORGANSATION AND

ENVIRONMENTAL ISSUES
THE WORLD TRADE ORGANISATION
The WTO is the principal international body concerned with solving trade problems
between countries and with negotiating trade-liberalizing agreements. WTO takes the
place of the former General Agreement on Tariff and trade (GATT) and is the
embodiment of the results of the 1986-1994 Uruguay Round of trade negotiations
conducted under the GATT.
An international organization, WTO has a cooperative relationship with the United Nation
but it is not a UN specialized agency. It was established on January 1, 1995 as a result
of the implementation of the Uruguay round. The WTO encompasses previous GATT
legal instrument, it also extends new disciplines to economic and trade sectors no
covered in the past. It now covers trade in service, including such sector as banking,
insurance, transport, tourism, and telecommunications sectors as well as the provision of
labor. In addition, the WTO covers all aspects of trade related intellectual property rights.
Furthermore, while GATT had a relatively ambiguous status as a multilateral agreement
without any institutional provisions, the WTO is an international organization with a
stature commensurate with the World Bank or International Monetary Fund (IMF).
TRADE AND ENVIRONMENT

The difference in environmental standards across borders could lead distortion in
international competition. Higher standards could discourage imports and protect
domestic producers. High standards in industrialized countries would make it difficult for
developing country manufacture o compete.
With the adoption of the Uruguay Round final act, government adopted a decision on
trade and environment, which called for the establishment of a WTO committee on trade
and environment. Its main purpose is to analyze the relationship between trade and
environmental measures. It can make any recommendation should any modification of
the multilateral trading system be required. The committee’s work however is restricted
by two parameters. One is that WTO competence for policy coordination is limited to
trade, and the second is that problems of policy coordination must be resolved in a way
that upholds the principle of multilateral trading system.
Recent news of huge consignment being rejected by foreign importers mainly due to the
reason that Indian marine products were not as per the standard of the importer
particularly in the USA, EU and Japan.
WTO AGREEMENT ON AGRICULTURE
The WTO Agreement on Agriculture was signed as part of the Uruguay Round
Agreement in April 1994. The Uruguay Round of Multilateral Trade Negotiations took
place during the period 1986 to1993.
The WTO Agreement on Agriculture came into force with effect from 1 January 1995. It
has a 10-year implementation period from 1995 to 2004, for developing countries.
The WTO Agreement on Agriculture covers three broad areas of agriculture and trade
policy: market access, domestic support and export subsidies.

India is under no obligation to reduce domestic support or subsidies currently extended
to agriculture as the support being given is well below the permissible level of 10 per
cent of the value of its agricultural output.
In the Budget 03-04, the Finance Minister Mr. Jaswant Singh, in order to promote Marine
Industry, has proposed to reduce the customs duty on Shrimp Larvae feed from 15% to
5% and exempt it from CVD.
Reduction commitments on export subsidies do not apply to India, as export subsidies
as are subjected to reduction commitments under the Agreement, are not practiced in
India.
The Uruguay Round of Trade Negotiations did not bring about trade liberalization in
agriculture, as expected. There has been no significant reduction in domestic as well as
export subsidies given by the developed countries to their agriculture. The anticipated
increase in exports of agricultural products from developing countries, therefore, has not
materialized.
Continuation of high domestic support to agriculture in many developed countries is a
cause for concern as it leads to low international prices for farm produce.
Implementation of the WTO Agreement on Agriculture since 1995 has brought out the
inadequacies inherent in the Agreement. The ongoing negotiations in the WTO on the
Agreement on Agriculture present an opportunity for us to rectify these inadequacies and
inequalities.
Government have taken a series of measures to safeguard our agriculture sector in the
context of phase-out of QRs -- i.e., import duties on a large number of agro and other
items have been substantially increased and import of 131 products have been made
subject to compliance of Indian quality standards as applicable to domestic goods;
Although maintenance of QRs on imports are not permitted, the government can, if the
situation so warrants, raise the applied tariffs within the bound levels and also take

measures such as anti-dumping action, safeguard action, levy of countervailing duties
under certain circumstances as permitted under the WTO Agreement.
Government has consulted all stakeholders in preparing proposals for the WTO
negotiations on agriculture. Extensive consultations have been held with the State
Governments, farmers' organizations, political parties, NGOs, agricultural universities,
experts & academicians and all other stakeholders in formulating the proposals and
these consultations will be a continuing process.
India has submitted its proposals to the WTO for the current negotiations on the
Agreement on Agriculture in the areas of market access, domestic support, export
competition and food security.
Food & livelihood security of our people, protection of the interest of domestic farmers
and maximizing export opportunities for Indian agricultural products are the guiding
principles of India's proposals at the WTO negotiations on agriculture.

MARKET STRUCTURE OF MARINE PRODUCTS

EXPORT
Till the close of 1960 the export of Indian marine products mainly consisted of dried
items like dried fish, dried shrimp, shark fins, fish maws etc. The frozen items entered in
the export basket in 1953 in negligible quantities. From 1961 the export of dried marine
products was on decline and exports of processed items were making steady progress.
With the devaluation of Indian currency in 1966 the frozen and canned items registered
a significant rise. These items continued to dominate the trade. Markets for Indian
products spread fast to developed countries from the traditional buyers in developing
countries.
Over the years, the frozen seafood markets for Indian marine products have witnessed
changes. The USA was the principal buyer for our frozen shrimp for a long time but after
1977, Japan emerged as the principal buyer for frozen shrimp followed by the Western
European countries. While Japan continued to be the single largest buyer of our marine
products accounting for 15.29% in volume and 30.56% in value during 2001-02. USA
accounted for 11.55% of volume and 23.86% of the value during the same period. Share
of USA is increasing steadily.
China is one of the leading markets for fish items like Ribbonfish, Crocker etc. China
accounted for 31.75% in volume and 10.03% in value of the total export of Marine
Products from India.
EXPORT TREND

The export of marine products had grown to greater proportion as one of the important
item of India's export from a few million US$ in 1961-62 to US$ 1106.9 million in 1997-
98, accounting for approximately 3.32 % of the total export from India. Dried fish was the
prominent item exported during the fifties and sixties but in the seventies it gave way to
frozen and canned products.
During eighties, the canned items slowly disappeared and frozen items become the
prominent one in India's seafood trade. Amongst the frozen items also, there was
changes in the demand from various countries. While Japan showed their preference to
Headless shell on shrimp, the USA demanded peeled shrimp meat while the European
countries preferred the IQF shrimp in frozen and cooked form. The European market
also absorbed the major share of cephalopods while Japan had taken a small share of it.
Due to introduction of new deep sea fishing vessels and modification of the existing
trawlers to suit deep sea fishing, a large quantity of fish become available for export.
These frozen fish items had greater demand in the South East Asian countries as well
as in the Middle East.
In the seventies, the export was depending mainly on shrimp but due to the export
promotional measures, it become possible to diversify the products in eighties adding
Cephalopods (Cuttlefish, squid and octopus) and frozen fish (such as Pomfret, Ribbon
fish, Seer fish, Mackerel, Reef cod, Croakers, Snapper etc. While all these items hold
good prospects, live fish, chilled fresh water fish etc. are promising items for the future.
Due to the introduction of scientific prawn farming, the export of frozen value added
shrimp is continuing as the major foreign exchange earner among marine products and
the volume of frozen shrimp exported during 1998-99 had exceeded 102484 metric tons.
Export of item like Breaded and Battered Shrimp, Double skinned cuttlefish, Fish
burgers, Sea food mix, Squid fillets etc. have made its presence felt and is expected to
increase in leaps and bounds by the turn of the century.

MARINE PRODUCTS EXPORT 2008-09
Export of marine products in 2008-09 showed a marginal decline in volume terms but a
substantial decline in value terms because of recessionary trends in the global economy
and sharp fall in prices of India’s prime marine product for exports – Black Tiger Shrimp.
During 2008-09 India’s exports were to the tune of 42,4470 MT valued at Rs. 5,957.05
crore equivalent to US $ 1,253.35 million registering a decline of 3.63% in quantity and
7.56% in rupee realization and 11.51% in US $ realization. The unit value realization
was declined to Rs140.34 (US$2.95) from Rs. 146.29 (US$3.22).
MAJOR ITEMS OF EXPORT
Frozen shrimp continued to be the largest item in terms of value. Shrimp contributed
3.09% in volume and 69.50% in value of the total export of marine products from India.
The share of shrimp in export in terms of quantity has increased to 30.09% from 25.40%
during the previous year. However the share on value terms remained static. This is
mainly due to the decline in international price for Black Tiger Shrimp owing to various
reasons like global economic recession increase in Aquaculture production, Shrimp
disease and subsequent early harvest in many competing countries etc.
Share of Fr. Fish declined both in terms of volume and value. However, it continued to
be the largest item of export in terms of volume. The share of Fr. Fish declined from
48.33% to 41.22% in volume and from 13.58% to 11.97% in value. The decline is
mainly attributed to the low landing of Ribbonfish, share of cephalopods remaining
almost static. However, export of live items like Aquarium fish, Live Lobster and Live

shrimp showed a positive growth. New items like Live Baigai (Whelk) were exported
from Thiruvanthapuram airport for the first time. Export of Chilled items also showed a
declining trend.
MAJOR INTERNATIONAL MARKETS FOR INDIAN MARINE PRODUCTS
Japan continued to be the largest market for Indian Marine products. Its share in volume
remained almost static but the value wise share has declined to 30.56% from 39.73%.
This may be due to fall price for our major item Black Tiger.
In spite of the terrorist attack on 11th September 2001, export to USA has registered a
substantial increase in the share from 9.48% to 11.55% in volume and 18.07% to
23.86% in value. The share of EU also increased from 15.63% to 19.53% in volume and
15.91% to 19.31% in value. Export to China has declined considerably both in volume
and value. The share of China declined from 41.49% to 31.75% in volume and 12.84%
to 10.03% in value. The share of South East Asia also increased from 9.25% in volume
to 12.35% and from 7.18% to 9.04% in value. Even though the share of Middle East
market has increased in terms of quantity it registered a decline in rupee realization by
3.85% and US $ realization by 7.97% when compared to last year. Other markets like
Australia, Israel, Mauritius etc. registered a positive growth. New markets like
Mozambique, Tunisia, Nigeria & Algeria have emerged during this year.

PERFORMANCE OF THE SEAPORTS/AIRPORTS
Chennai continued to be the largest port for exports with a share of 26.36% in value and
9.78% in volume. The share of volume has increased from 8.12% to 9.78% however the
value wise share declined due to low realization. Share of Kochi decline to 16.97% from
20.06% in volume and to 15.63% from 16.04% in value. The decline in volume was
mainly due to the decrease in export of Ribbon Fish owing to poor landings. Share of
Vizag in volume terms remained static but in value terms it declined to 12.96% from
15.09%. The share of Pipavavu increased to 18.40% from 11.86% in volume and to 6%
from 3.80% in value. The shares of Tuticori, Karwar, Kolkata, etc. remained almost
static. The share of exports from Mumbai, Porbandar, and Kandla etc. also declined. A
new port, Kakinada emerged with exports of Rs. 184.72 crore during this year. Exports
from Paradeep also started during this year. The exports from Mangalore, Goa and
Trivandrum showed growth when compared to the previous year.

STATISTICAL DATA PERTAINING TO MARINE

EXPORT
(1) Details of export for the last 5 years are furnished below:
Q: Quantity in MT, V: Value Rs. Crore, $: US Dollar Million
Export Variation (%) U.V.
1998-99 Q 302934 - 82884 - 21.48

V 4626.87 - 70.61 - 01.50 152.73
$ 1106.91 - 188.95 - 14.58 3.65
1999-00 Q 340003 + 37069 + 12.24
V 5095.73 + 468.87 + 10.13 149.87
$ 1184.23 + 77.32 + 06.99 3.49
2000-01 Q 440473 +97443 +28.41
V 6443.89 +1327.22 +19.12 146.29
$ 1416.32 +227.31 +19.12 3.22
2001-02 Q 424470 -16003 -3.63
V 5957.05 -486.84 -7.56 140.36
$ 1253.35 -16297 -11.51 2.95
2002-03 Q 467297 +42827 +10.09
V 6881.31 +924.26 +15.52 147.26
$ 1424.90 +171.55 +13.69 3.05

ITEM WISE EXPORT OF MARINE PRODUCTS
Q: QUANTIY IN MT, V: IN RS. CRORE, $: US$ IN MILLION, UV$: UNIT VALUE
IN US$/KG
ITEMS % APR-MAR APR-MAR VARIATIO (%)
Share 2002-03 2001-02 N
to
Total
Frozen Shrimp 28.85 Q 134815 127709 7106 5.56
66.97 V 4608.31 4139.92 468.39 11.31
66.91 $ 953.44 871.03 82.41 9.46
UV$ 7.07 6.82 0.25 3.67

Frozen Fin Fish 42.10 Q 196322 174976 21346 12.20
12.23 V 841.65 713.11 128.54 18.03
12.26 $ 174.63 150.04 24.59 16.39
UV$ 0.89 0.86 0.03 3.49

Frozen Cuttle 8.85 Q 41381 30568 10813 35.37
Fish 6.06 V 417.09 280.07 137.02 48.92
6.06 $ 86.09 58.93 27.44 46.56
UV$ 2.09 1.93 0.16 8.29

Frozen Squid 8.10 Q 37838 39790 -1952 -4.91
5.59 V 384.37 329.67 54.70 16.59
5.60 $ 79.83 69.36 10.47 15.10
UV$ 2.11 1.74 0.37 21.26

Dried items 1.75 Q 8178 * 8307 -129 -1.55
1.22 V 84.23 67.96 16.27 23.94
1.23 $ 17.46 14.30 3.16 22.10
UV$ 2.13 1.72 0.41 23.84

Live items 0.45 Q 2115 1628 487 29.91
0.78 V 53.66 40.57 13.09 32.27

0.78 $ 11.12 8.54 2.58 30.21
UV$ 5.26 5.24 0.02 0.38

Chilled items 0.72 Q 3350 3284 66 2.01
0.86 V 59.14 63.66 -4.52 -7.10
0.86 $ 12.27 13.39 -1.12 -8.36
UV$ 3.66 4.08 -0.42 -10.29

Others 9.27 Q 43298 * 38208 5090 13.32
6.29 V 432.86 322.09 110.77 34.39
6.30 $ 89.78 67.76 22.02 32.50
UV$ 2.07 1.77 0.30 16.95

TOTAL 100 Q 467297 424470 42827 10.09
100 V 6881.31 5957.05 924.26 15.52
100 $ 1424.90 1253.35 171.55 13.69
UV$ 3.05 2.95 0.10 3.39

(*) Salted Jellyfish is included under Dried Items.

COUNTRY WISE EXPORT OF MARINE PRODUCTS
Q:Quantity in M T, V: Value in Rs. Crore, $: US Dollar Million
COUNTRY % share APR-MAR APR-MAR VARIATION %
to Total 2002-03 2001-02
JAPAN 11.75 Q 64905 -9989 -15.39

54916
22.30 V 1820.69 -285.93 -15.70
1534.76
22.26 $ 383.07 -65.90 -17.20
317.17
USA 13.21 Q 49041 12662 25.82
61703
29.81 V 1421.38 629.74 44.30
2051.12
29.79 $ 299.05 125.46 41.95
424.51
European 20.23
Union Q * 82572 11969 14.50

94541
20.18 V 1145.49 242.98 21.21
1388.47
20.20 $ 241.01 46.83 19.43
287.84
CHINA 36.55 Q 134767 36044 26.75
170811
11.08 V 597.23 165.25 27.67
762.48
11.10 $ 125.66 32.57 25.92
158.23
South East 9.44
Asia Q 44097 52424 -8327 -15.88
9.33 V 538.75 103.63 19.24

642.38
9.35 $ 113.35 19.80 17.47
133.15
Middle East 4.21 Q 19159 509 2.66
19668
2.98 V 181.06 23.68 13.08
204.74
2.98 $ 38.1 4.30 11.29
42.40
OTHERS 4.61 Q * 21602 -41 -0.19
21561
4.32 V 252.45 44.91 17.79
297.36
4.32 $ 53.11 8.49 15.99
61.60
TOTAL 100.00 Q 424470 42827 10.09
467297

100.00 V 5957.05 924.26 15.52

6881.31
100.00 $ 1253.35 171.55 13.69
1424.90

PORT WISE EXPORT OF MARINE PRODUCTS
Q: QUANTITY IN M T, V: IN RS. CRORE, $: US$ IN MILLION
Ports % share APR- MAR APR- MAR VARIATION (%)
to total 2002-03 2001-02
CHENNAI Q 41517 11361 27.37

11.32 52877
V 1570.13 500.92 31.90
30.10 2071.05
$ 330.35 98.12 29.70
30.07 428.47
KOCHI Q 72035 8338 11.57
17.20 80373
V 930.87 91.35 9.81
14.85 1022.22
$ 195.85 15.84 8.09
14.86 211.69
JNP Q 91483 16489 18.02
23.10 107972
V 699.19 217.10 31.05
13.31 916.29
$ 147.11 43.01 29.24
13.34 190.12
VIZAG Q 22154 3417 15.42
5.47 25571
V 771.81 114.70 14.86
12.88 886.51
$ 162.39 20.88 12.86
12.86 183.27
CALCUTTA Q 17692 -306 -1.73
3.72 17386
V 523.94 33.49 6.39
8.10 557.43
$ 110.24 5.05 4.58
8.09 115.29
PIPAVAV Q 78097 20973 26.86
21.20 99070
V 357.38 170.21 47.63
7.67 527.59
$ 75.19 34.48 45.86
7.70 109.67
TUTICORIN Q 16966 304 1.79
3.70 17270
V 446.27 -9.45 -2.12
6.35 436.82
$ 93.89 -3.46 -3.69
6.35 90.43
KANDLA Q 28143 -10493 -37.28
3.78 17650
V 163.55 -27.41 -16.76
1.98 136.14

$ 34.41 -9.28 -18.25

1.97 28.13
PORBANDAR Q 25935 -8608 -33.19
3.71 17327
V 104.79 -8.16 -7.79
1.40 96.63
$ 22.05 -1.99 -9.02
1.41 20.05
MUMBAI Q 5803 -1498 -25.81
0.92 4305
V 85.54 -17.57 -20.54
0.99 67.97
$ 18 -3.91 -21.72
0.99 14.09
MANGALORE/ICD Q 7423 2573 34.66
2.14 9996
V 55.42 9.34 16.85
0.94 64.76
$ 11.66 1.78 15.27
0.94 13.44
GOA Q 9979 5416 54.27
3.29 15395
V 34.48 15.63 45.33
0.73 50.11
$ 7.26 3.12 43.03
0.73 10.37
TRIVANDRUM Q 721 299 41.47
0.22 1020
V 19.69 3.92 19.92
0.34 23.60
$ 4.14 0.75 18.12
0.34 4.89
KAKINADA Q 4477 -4248 -94.91
0.05 228
V 184.72 -175.04 -94.76
0.14 9.68
$ 38.87 -36.88 -94.90
0.14 1.98
PARADEEP Q 40 584 1460
0.13 624
V 1.32 7.96 603.03
0.14 9.28
$ 0.28 1.64 585.71
0.13 1.92
HALDIA Q 0 233 ***
0.05 233
V 0 5.23 ***
0.08 5.23
$ 0 1.08 ***
0.08 1.08
KARWAR Q 2007 -2007 -100.00
0.00 0
V 7.96 -7.96 -100.00
0.00 0
$ 1.68 -1.68 -100.00
0.00 0
100 467297
Total Q 424470 42827 10.09

V 5957.05 924.26 15.52

100 6881.31
$ 1253.35 171.55 13.69
100 1424.90
Seafood Export Crosses One Billion dollar Mark Once Again
The marine product export from the country have crossed US $1 billion for the fourth consecutive
time. The export touched 3,02,934 tonnes valued Rs. 4626.87 crores during 1998-99 registering
an increase of 21.48% in terms of volume and 1.50% by value. During the previous year, it was
3,85,818 tonnes valued Rs. 4697.48 crores.
The export mainly consisted of low valued fin fish varieties (35.83%) followed by frozen Shrimp
(33.83%), frozen Cephalopods (22.88%) and dried seafood items (2.07%). Japan continues to be
the top most importer of Indian Seafood shared close to 22.21% of our export in terms of volume
and 49.61% by value. The major change noticed in the export trend, during the year is the
emergence of South East Asia who continued to be the top most importer of marine products in
terms of volume. The other individual markets which increased their shares during 1998-99 are
Canada, Mauritius, Australia, Switzerland, Maldive, Newzeland, Reunion, Panama, Venuzuela,
Taiwan, Bangladesh, Philippines, Turkey and Malta.
PRODUCT SPECIFICATION
BLACK TIGER SHRIMP

Frozen Black Tiger Shrimp: Peeled Deveined tail-on
Size: 8/10, 10/15, 16/20, 21/25, 26/30
Frozen Black Tiger Shrimp:
Peeled Deveined tail-off
Size: 16/20, 21/25, 26/30, 31/40, 41/50, 51/60, 61/70.
Cooked Then Peeled Shrimp
Size: 60/90, 90/120, 100/200, 150/300, 300/500
Peeled Undeveined Shrimp
Size: 31/40, 41/50, 51/60, 61/70, 71/90, 91/120, 121/200, 200/300, 300/500.
Packaging:
The product is shipped with a special container, which can freeze the product at –23
degree Celsius. It can freeze the product for one and a half month. All the specification is
being written on the pack in both English and Japanese language.

PROCEDURE
Organizational Setup: Our firm will bear the name, Sidhu International in which will be
registered in the State of West Bengal.
Current A/C in Indian Overseas Bank, which is the Authorized Dealer in Foreign
Exchange. RCMC (Registration Cum Membership Certificate) from Export Promotion
Council (EPC) An application for IEC number from DGFT has taken to undertake the
business of import and export. After registration of name, our letterheads will include
Complete name and address including country’s name, Banker’s name, and some other
information, which are essential. Buyer Search: We have our market in Japan, which
had demand for marine products(black tiger shrimp) of different forms and quality which
has been out from different sources such as National Export Trade Statistics, Ministry of
Commerce, EPC etc.
Supplier search/ binding the supplier: as we are sourcing the marine product form
different producers located at Digha and Diamond herbour, West Bengal. These
producers have bind to supply goods or products as and when order.
Performa Invoice: A proforma invoice (offer) is sent to the buyer in Japan after getting
the inquiry from that side . A test sample will also be sent if required by the importer.
The value of the sample depends on the requirement.
Issue of letter of Credit: A L/C is being issued for the security of the payment. The
importer’s bank assures the exporter that the payment will be made if all the conditions
are met as mentioned in the purchase order. The L/C includes the nature of the
transaction amount to be paid
--L/ C can be amended if required 9.Feedback and control of goods.

DOCUMENTATION
Preparing export documents
Export documents have to be prepared for various purposes viz.
1) Declaration of export as per exchange control regulation of the country
2) Transportation of goods
3) Custom of the goods
4) Other purpose
DECLARATION of export as per exchange control regulation of the country
Bill of lading
TRANSPORTATION OF GOODS
DOCUMENTS for transportation of goods
1) Letter of credit
2) Shipping Documents
3) Bank Documents
REVENUE MODEL
Capital Expenses
Particulars Amount in Rs.

Building at rent (5,000 sq-ft) 50,000
Machines:
i) Packaging 6,00,000
ii) Producing ice 12,00,000

Furniture 30,000

One Computer 40,000

Total 19,20,000
Revenue Expenses
Wages to 10 labors 20,000

Salary of 4 guards 10,000
Wages of 2 supervisors 8,000
Total 38,000
Cost of Export of Fish to Japan
Cost of Fish
Black tiger shrimps (1000kg) 450 * 1000 = 4,50,000
Ornamental fish (500kg) 300 * 500 = 1,50,000

Freight
i) From 24 Parganas to Kolkata 12,000
ii) From Assam to Kolkata 28,000

Loading charge at 24 Parganas & Assam 15,000
Unloading charge at Kolkata 13,000
Commission to agents 12,000
Processing cost 50,000
Packaging cost 50,000
Other raw materials (packaging &
processing) 25,000
Freight up to Japan 2,70,000
($2700* 2 = Rs 2700*50*2)
Container charges (Rs 600/kg ave.) 9,00,000
1 % cess duty 6,000
Other miscellaneous expenses (including 11,000
insurance and registration charges)

Total 19,92,000
Total expense for export of fish= Rs. 39,50,000
Profit @5% on cost =Rs. 1,97,500

Selling price =Rs. 41,47,500
EBDIT Model
EBDIT Rs 1,97,500
Less: Dep.
@2% on machine (24% yearly) 36,000
@5% on computer (60% yearly) 2,000
@1% on furniture (12% yearly) 3,000
41,000
Less: Interest
@14.5% on 30 lakhs 36,250
PBT Rs. 1,20,250
Less: Tax@ 35% Rs. 42,087.25
PAT Rs 78,162.5

EXPORT OF MARINE PRODUCTS FISCAL 2010-11
Export of marine products from the country touched USD 2.67 billion mark during the
fiscal 2010-11 by registering a growth of 10.96 per cent in quantity, over the year-ago
period. This is 20.42 per cent in rupee value and 25.55 per cent in USD realisation
compared to the previous fiscal, according to the provisional export figures.
This was the first time in the history of Marine Products Industry, that India had crossed
the USD 2.5billion mark. Average unit value realisation had also gone up by 13 per cent,
Marine Products Export Development Authority (MPEDA) said.
A total quantity of 75,2791 tonnes of marine products were exported during April-March
2010-11 valued at Rs 12,100.48 crore against 67,8436 tonnes valued at Rs 10,048.53
crore over the year-ago period, MPEDA said in a press release here.
In US dollar terms the value was 2,677.74 million in April-March 2010-11 against
2,132.84 million in the same period previous year.
The achievement is despite the after effects of recession in the international market,
rupee becoming stronger, vis-a-vis the Euro and the dollar, the impact of the collapse of
economies in Greece, Spain and Portuguese in the EU causing the depreciation of Euro
value against USD.
There was considerable increase in export of frozen shrimp and Frozen Squid during the
period. Large scale production of vannamei in addition to high productivity of black tiger
shrimp and increased landing of squid might be attributed for the increase.
According to the provisional figures, Frozen Shrimp continued to be the major export
item accounting 46 per cent of the total USD earnings. Shrimp exports during the period
increased by 13 per cent, 35 per cent and 41 per cent in quantity, rupee value and USD
value respectively.

CONCLUSION
There lies vast potential for growth in the Marine export industry, particularly in exploring
unexplored resource that lies with India. Indian marine products are highly preferred in
the global market. We would also like to diversify in the near future in other fields such
as capture marine fishery, processing and manufacturing processed marine products
and developing the ornamental fishery sector, which is unexplored as told to us by Mr.
Alphonse Joseph , Managing director, Kollam. Also WTO will play a very important role
as this will affect the Export-Import industry as a whole in a Qualitative manner.

BIBLIOGRAPHY
Books: 1. Marketing management by Philip Kotler
2. Innovation and Entrepreneurship by peter Drucker
3. Project appraisal for SSI, HPH 1990
4. Planning of small scale industry a guide to Entrepreneurship by Rajiv Jain
5. Project appraisal techniques Oxford Publishers Mumbai
6. Mercantile law by Avtar singh
7. Business law by N. D. Kapur
8. Marine Export by Oxford Press Mumbai
9. Sea food and its export report by marine export development
authority of India
Reports: by government of India, W.T.O., department for development of
small scale industries.
Websites: www.mpeda.com
Store.wmjmarine.com
Timesofindia.indiatimes.com/articleshow/443413.cms
www.ubd.co.nz
www.dti.gov.ph etc.

QUESTIONNAIRE
Following questions were asked to the people related to this business and Govt.
authorities.
Name:
Age:
Sex:
Location:
Business:
1. Why did you select this business only?
2. What are the specific products you are dealing in?
3. Where do you get the supplies from?
4. What are the specific areas best for which type of sea product according to your
knowledge?
5. What is the turnover of this business (approx.) on national as well as on local
level?
6. What is the expected cost in your business including the shipment and other
formalities?
7. What are the government aids available for this business?
8. What are the specific authorities which we have to deal with and which control
the export as well as the development of this business?
9. What is the demand in the west world regarding the Indian sea food?
10. What are the countries you deal with?

11. What are the authorities that help you acquire funds for development of your
business?
12. What is the demand in the international market and how is it going to get affected
in the future?
13. What are the specific governing departments and the authorities that control this
business and development?
14. Where else can we look for the expansion of this business
15. What future do you see for this business?
16. What particular complications did you face while going for the export?
17. What is the government doing for the development of this business and what
else do you expect?
18. What researches are being done in this regard and what other opportunities can
we see?
19. What is the Price of the particular products in the international market?
20. What other opportunities do you see?

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MBA IB Nujum Marine Export

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A CASE STUDY ON EXPORT OF MARINE PRODUCTS

CAPITHAN EXPORTING COMPANY 2011

DIRECTORATE OF DISTANCE EDUCATION

CAPITAL COLLEGE, BANGALORE Page No. 1

I wish to express my heartfelt gratitude in all earnestness to the following persons

I sincerely take this opportunity to express my profound gratitude to Faculty.

I record my profound thanks to management and staff of CAPITHAN

And Mr. Alphonse Joseph, Managing Director, CAPITHAN EXPORTING

Place: Nujum Giyaz .T

CAPITAL COLLEGE, BANGALORE Page No. 2

CERTIFICATE OF THE GUIDE

Signature of the Guide

Name and Official Address of the Guide

Guide’s Academic Qualifications,

CAPITAL COLLEGE, BANGALORE Page No. 3

Enrollment No.: 1309380004

Signature of the Student

CAPITAL COLLEGE, BANGALORE Page No. 4

CAPITAL COLLEGE, BANGALORE Page No. 5

over our competitors.

The other objectives can be listed as below:

2. To estimate the cost as well as the earning in this business.

3. To find out the ways of financing for this business.

4. To find out what government aids are available.

CAPITAL COLLEGE, BANGALORE Page No. 6

interested in pursuing my career as business leader or entrepreneur I am interested to

give shape to my dream of becoming entrepreneurs.

global leader in seafood resources.

CAPITAL COLLEGE, BANGALORE Page No. 7

India, and explore its potential to the fullest.

cost involved to accomplish my goal.

CAPITAL COLLEGE, BANGALORE Page No. 8

process and pack for exports.

Products from India.

data will also include some portion of this research data.

CAPITAL COLLEGE, BANGALORE Page No. 9

taken help of, to gather the information.

officials of export promotion council, sales tax authority, ITC etc.

government records and Internet.

CAPITAL COLLEGE, BANGALORE Page No. 10

CAPITAL COLLEGE, BANGALORE Page No. 11

RESEARCH, PRODUCT DEVELOPMENT, VALUE ADDITION AND QUALITY

in seafood handling and processing. A lot of Research and Development work is

under exploited fishery resources.

facilities. Modernization of processing facilities to meet international standards is of

primary importance for the industry in the coming years.

CAPITAL COLLEGE, BANGALORE Page No. 12

training programs on HACCP and a number of processor were issued certificate of

scrutiny of HACCP compliance.

India’s own initiative.

For example, aquaculture industry emerged as an important source of foreign exchange

Andhra Pradesh and Tamilnadu where aquaculture industry is mostly concentrated.

pollution control board representative as well as other concerned officials. Similarly, a

because of environmental damage being caused by them.

CAPITAL COLLEGE, BANGALORE Page No. 13

1. REGISTRATION WITH REGIONAL LICENSING AUTHORITIES (OBTAINING IEC

Licensing Authorities concerned: The Joint Director General of Foreign Trade, 4,

Bank Receipt/Demand Draft for payment of the fee of Rs. 1,000/-

Certificate from the Banker of the applicant firm.

CAPITAL COLLEGE, BANGALORE Page No. 14

residential address, and NOC certificate

Copy of Income-tax Permanent Account Number.

Declaration by the Applicant that the Proprietor/Partner/Directors of the applicant firm