final report soham
DESCRIPTION
SIP ReportTRANSCRIPT
A project report on
“Study of Export-Import procedure & documentation”
In Partial Fulfillment of the Requirements
In PGDM Programme
Guided By: Submitted By:
Prof. Rajsee Joshi (Internal)
Submitted By:
Soham Patel
(P1033)
BATCH: PGDM 2010-12
N.R. Institute of Business Management,
GLS Campus,
Ahmedabad – 380006
PREFACE:-
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I did my summer training WINDSOR MACHINES LIMITED, AHMEDABAD. I
completed my summer training for 60 days. I got training in the study of Import-export.
Hence I am presenting the training report of Import-export. All the mistakes and
problems had been carefully removed with the help of all the managers.
So I am thankful to all the managers of WINDSOR MACHINES LIMITED.
The demand for management’s professionals is increasing day by day. In such a
competitive nearby it becomes a requirement to have an edge over others and PGDM is
such a course, which helps and assists students in doing that.
The practical studies are emphasized in PGDM, which helps the students in practically
applying their theoretical knowledge. It helps us to face competition, builds up our
confidence and also add something to our personality. Over and above in this fast moving
economy, here practical studies play an important role in our carriers.
The Import-Export Project I undertook was of great help to me attract my practical
knowledge about analyzing a company’s Import-Export documents.
Thus, this project helped me a lot learning new concepts thus enhancing my practical
knowledge.
ACKNOWLEDGMENT:-
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After I complete my 2nd semester curriculum. I went for summer training for 60 days
duration.
I would like to give heartily thanks to my college N.R INSTIUTE OF BUSINESS
MANAGEMENT. I am extremely thanks to Guided by Prof. Rajsee Joshi (Internal) for
his helpful co-operation, inspiration, interest and valuable guidance in preparing this
project who have given us an opportunity to learn something practical apart from books by
including the in our PGDM Programme.
I would like to express my most sincere thanks and gratitude to External guide Mr. V.
Sudhagar (Assistant Manager – EXIM)who has given a good support to grab the external
exposure and to complete a project in WINDSOR MACHINES LIMITED,
AHMEDABAD. I give my sincere token of thanks other staff member in company who
has gathered me the wisdom of knowledge in my project.
Thanking you, Date:
Soham M Patel Signature:
PGDM
EXECUTIVE SUMMARY:-
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The Grand project that we have chosen is to study of Import-Export procedure &
documentation
In that when the company receives the order, the production departments made the
production department made the production according to design send by the purchaser and
complete the order. After that when production is completed, I have to make some pre-
shipment documents and post shipment documents and submit it to the bank for
conforming the payment from purchaser. And these all documents I have to prepare before
the date that is mentioned in order.
In export when we receive the order from any party, we have to complete the order before
the date that is mentioned in order. And for completing this order if it requires importing
some spare parts to make the final production, I have to prepare documents for taking
credit and paying it to the party. And these all will be completed before the time.
The import and export transactions which have been place currently through LC and
forward contract, buyer’s credit were identified, analyzed and interpreted.
Abstract or summary
My project is related to export and import, so basically the below mention task:
About export procedure .i.e.
How to make export?
How to prepare export documents?
What documents is required for export?
How to keep the export records?
How to import the spare parts and material?
Which documents need to be prepared for import?
How to keep import records?
How to prepare import documents?
TABLE OF CONTENTS:-
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Sr. no Particular Page no.
Chapter-1 RESEARCH METHDOLOGY 7
1.1 Need of research 7
1.2 Scope of research 8
1.3 Significance of research 9
1.4 Research methodology 10
Chapter-2 Industry Profile 11
2.1 Introduction 11
2.2 Analysis 12
Chapter-3 Company profile 16
3.1 Basic Information 16
3.2 Company History 18
3.3 Company History 19
3.2 3.4 Milestone of the company 20
3.5 Three state of art production 22
3.6 About products 23
Chapter-4 Introduction to Import-Export 25
4.1 What is Export? 25
4.2 What is Import? 25
4.3 Objectives 26
4.4 Risk Involment In Export & Import:- 27
4.5 Regulatory bodies:- 28
4.6 Details 29
4.7 Export-Import Policy 30
4.8 Manufacturing cycle 21
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Chapter-5 Export Procedure 24
5.1 How to generate the export inquiry? 24
5.2 How to export? 27
5.3 Pre-order activity 29
5.4 Post-order activity 41
Chapter-6 Export Documentation 42
6.1 Which documents are necessary for making export? 42
6.2 Export figure and data interpretation 47
Chapter-7 Import Procedure 51
7.1 Import of machines/ materials 51
7.2 How to make import? 52
Chapter-8 Import documentation 54
8.1 Import figure and data interpretation 54
Chapter-9 Export-Import 57
9.1 In case of export or import, how to make the payment 57
9.2 Comparison between Import and Export for the year 2009 59
9.3 Comparison between Import and Export for the year 2010 61
Chapet-10 Conclusion / Suggestion 63
Chapter -1
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RESEARCH METHODOLOGY:-
1.1 Need of research:-
Imports and exports form part of a countries' international trade, and international trade is
an important means by which countries build up its reserves of foreign currency.
Generally speaking, countries import goods primarily to satisfy a demand for the good
that is not produced within it self. For example, an industrialised country may import
agricultural products, while an industrializing country may import high-value consumer
electronics. Countries may also import goods in order to provide consumers with greater
variety, and increase competition in the local market.
From an economic standpoint, increased competition is usually favorable as it tends to
improve the quality of goods and services, while lowering its market price.
A country's exports allow the goods produced in the country to be delivered to a larger
market. The ability to tap into greater demands allows for expansion of the scale of
production. A larger scale of production then allows the suppliers to tap in favorable
economies of scale that lowers the per unit cost of production, lowering market prices,
ceteris paribus.
Additionally, the sale of exported goods is often an important source of national income
for the exporting country.
1.2 Scope of research:-
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There is enough scope in import-export management. Present globalization encourage this
business. Every nation have to do this for their consumers. No country produces all goods
/ services they need. There are many fields in this management say shipping, supply
chain, C&F etc involved with this.
1.3 Significance of research:-
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Import and export has been an integral part of our lives for a very long time. Even before
the United States was in existence, Europe was implementing the import and export of
goods between them and other countries, which eventually led to the early stages of global
sourcing and multinational purchasing on a smaller scale.
Global sourcing in import and export practices is just as important as the multinational
purchasing that comes with it. Without global sourcing, multinational purchasing would
not be possible since global sourcing involves the identifying of alternate supplier choices
and taking advantage of the different kinds of talent that are out there on the market.
Multinational purchasing, on the other hand, entails that products are acquired from
various international import and export practices. One company may have import and
export agreements with several different international corporations in order to assemble
products that will be distributed to consumers of other business. This makes import and
export practices as a result of multinational purchasing an integral part of a global
economy.
1.4 Research methodology:-
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In order to collect the reliable information, the necessary data will be collected with the
help of different sources of
Primary data
Secondary data
Primary data : - A primary source of information is the source of information
through which information is obtained is first hand i.e. from interviewing the
officials at WINDSOR MACHINES VATVA, various reports.
Secondary data : - Secondary source of information provides the information which
is used by some other researcher but still it is useful as a reference for the study in
some other research work. Under this source, text books, past project reports,
published journals, websites, etc will be used.
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Chapter-2
Industry profile:-
2.1 Introduction:-
Plastic products are made from polymers such as polyethylene (PE), polypropylene (PP),
polystyrene (PS) and polyvinyl chloride (PVC). They are widely used in household
items, pipes, packaging films, bottles and containers, woven sacks, plastic furniture,
moulded luggage, wire and cable insulations, and electronic and electrical items. Plastic
products are classified into four segments: extrusion (71 per cent), injection moulding (20
per cent), blow moulding and roto moulding (together 9 per cent). Currently,
there are about 35,000-40,000 plastic processing units in India, most of which have only
2-3 machines each. The plastic processing industry`s consumption of virgin
polymers (PE, PP, PS and PVC), in 2009-10 was estimated at 6.67 million tonnes.
Domestic demand for plastic products, during 2009-10, witnessed a robust growth of 15
per cent mainly driven by strong demand from end-user industries like packaging,
construction and automobiles. The government`s support in the form of tax sops,
antidumping duty and lower customs and excise duty on polymers has been a positive for
the industry, However, laws such as the Jute Packaging Materials Act (JPMA), which
encourage the use of jute in packaging, have affected the demand for plastics.
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2.2 Analysis:-
A. Industry Structure and Development.
The Industry for Plastic Processing Machinery in India has shown a growth of 12%.
This Company is engaged in manufacturing of Plastic Extrusion Machinery, Injection
Moulding & Blow Moulding Machinery.
In the field of Extrusion Machines 2009-2010 has continued to be a good year. During this
year newly launched models have given an edge in the competitive market and this
Company has ended with an excellent market share. Our strength in film plant’s
technology from Germany which has been absorbed with license from Kuhne.
In Injection Moulding Machinery the increased demand for bigger machines continued
fromthe moulded luggage, furniture and white goods industry. The Company will be
launching energy efficient machines in the coming year which is expected to give
tremendous turnover growth.
The developments in the industry are marked by manufacturing of more sophisticated
machines this year also and emphasis on aesthetics and energy conservation.
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B. Opportunities and threats:
The application of plastics is increasing manifold to include various packaging, pipe
fittings, white goods, automobile etc. In Injection moulding, the market generally for the
consumption of plastic products in the house hold and furniture segments are fuelling the
increase in newer capacities. Further, anti dumping duty on Chinese machines will
augment the business for Indian manufacturers. In Extrusion Machinery also the demand
is growing particularly due to Government’s thrust on agriculture, telecom, construction
etc.
Indian Plastic manufacturers have shown their competency to manufacture goods of
Global acceptance thereby increasing the need to expand capacities. This has resulted in
high demand for the Plastic Processing Machinery. The Company’s focused action on
manufacturing will enable it to further increase its market share.
The products of your Company have also been well accepted by the customers due to its
performance and energy conservation capabilities. This Company has taken appropriate
steps to incorporate new technology in the machines giving edge over competition in
terms of lower operating costs.
Due to continued focus in Exports, we expect significant market share in over seas
markets in coming years.
This year, your Company participated in RIYADH Exhibition and made an outstanding
impression and has received tremendous enquiries from prospective customers.
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C. Product-wise performance:
Rs. Crores
Product Net Sales
2009-2010 2008-2009
(9 Months)
Injection Moulding Machines 100.31 37.44
Extrusion Machinery 106.26 55.67
TOTAL 206.57 93.11
Previous period’s figures are not comparable with the current year’s figures,as previous
period is of 9 months, due to change of accounting year.
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D. Outlook :
As regards to Thane labour issues the High Court of Mumbai passed an order on
06thSeptember, 2010 endorsing the Industrial Tribunal order dated 22nd September,2005
and as per High Court order the Company had paid all the legal dues. The futureprospects
will be to a large extent dependent on the overall economic scenario. On itspart the
Company is taking necessary steps to ensure that its products are well acceptedby the
customers in terms of performance and price competitiveness.
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Chapter-3
Company profile:-
3.1 Basic Information:-
Company Name Windsor Machine Limited
Country India
Province/State Gujarat
City Ahmedabad
Street Address1 5403 Phase-Iv
Street Address2 Gidc Vatva
Business Type Supplier and Manufacturers
Windsor Machine Limited is one of the India’s largest plastic processing machinery
manufacturer and exporter since 1964.
It’s a part of $180 million conglomerate – The priamal Group of companies, having
diversified interests into branded luggage modeling, branded toys and automobile
component sector apart from plastic processing machinery manufacturing division having
annual turnover of $34 million. Windsor has strong organizational back up of the flagship
group companies like VIP INDUSTRIES, BLOW PLAST, HINODAY INDUSTRIES,
etc.
The company set up operations at Thane (near Mumbai) in 1964 under collaboration with
R.H. Windsor of U.K in 1984, Klockner-Werke of germany made the company a part of
its worldwide operations and renamed it Klokckner Windsor India Limited. Subsequent to
the disinvestment of equity by klockner to Mr. Dilip G. Piramal in 1964, the company
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acquired the status of being member of one of India’s business houses, the DGP group,
and was initially named as DGP Windsor India Limited, year 2005 been renamed as
Windsor Machine Limited.
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3.2 Company details :-
Director:-
Kishor Chandrakant Gupte
Prakash Chadra Kunndalia
Mahendra Kumar Arora
Additional director:-
Jayant Mahiendra Thakur
Pushp Raj Singhvi
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3.3 Milestone of the company :-
1964 Commenced operations at Thane (near Mumbai) in collaboration with RH Windsor of UK
1984 Klockner Werke of Germany takes over and renames as Klockner Windsor India Limited
1985 Extrusion Business started at Vatva (Ahmedabad)
1988 Second plant for Injection Molding machinery started at Chhatral (Ahmedabad)
1994 Klockner disinvests equity to Mr.Dilip Piramal and company renamed as DGP Windsor
India Limited
2005 Renamed as Windsor Machines Limited
2008 Mr.Prakash Kundalia comes on board & sets the course for the future with a new vision and
dynamic leadership
2009 Participation in Plast India 2009, Delhi
2010 Turnaround of the company with more than 100% growth, crossing 200 crores mark and
becoming profitable
2010-11 Poised for exponential growth
- Technology Transfer Agreement signed with Italtech (Italy) for higher tonnage machines
- Relationship with Kuhne strengthened, with manufacturing of First Hybrid machine
- Participation in K-Show 2010, Dusseldorf, Germany
3.4 Company History :-
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The company was incorporated on 4th May 1963 as a private limited company under the
name of Windsor Engineering Pvt. Ltd. It became a public ltd. company by virtue of
section 43-A of the company's act, 1956 on 16th March 1964. The name was changed to
R.H. Windsor (India) Ltd., on 14th, April 1964 & again to Klockner Windsor India Ltd.
on 7th March, 1986.
The company signed on 26th February 1964 a commercial and technical collaboration
agreement with R.H.Windsor Ltd of U.K pursuant to which the latter subscribed 51% of
the paid up capital of the company. The factory at Thane commenced production in
November 1964. The company manufactures plastics processing machinery viz. injection
moulding machines, extrusion lines and blow moulding lines.
The collaborator company was taken over by Klockner Werke Group of Companies of
West Germany in Sept. 1982. It is presently known as Klockner Ferromatik Desma GmbH
which belongs to Klockner Werke Group.
The factory at Thane commenced production in November 1964. The factory at Vatva
(Gujarat) started production of extrusion lines in November 1985 and the sale of
machines commenced from Febraury 1986.
The company exports to several countries.
The company purchased from Klockner Ferromatik Desma GmbH the knowhow for the
manufacture of ferromatik range of plastic processing injection moulding machines with
solid state electronics and microprocessor controls for a lump sum payment of DM
250,000 (Rs 10
lakhs).
The company also signed a collaboration agreement with Klockner Ferromatik Desma
GmbH for manufacrture of the DESMA range of machines suitable for processing rubber,
PVC, and polyurethane (PU) materials with major applications in the area of manufature
of shoe soles,
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boots and other rubber and PU articles. During 1987, the company negotiated with
Klockner Ferromatik Desma GmbH for closed loop microprocessor control machines.
Technology for integrated extrusion systems was imported and its production was
established at Vatva factory.
With effect from 7-3-1986, the name of the company was changed from RH Windsor
(India) Ltd. to Klockner Windsor India Ltd.
The company's proposal to manufacture packaging machinery in collaboration with an
associates company of Klockner-werke AG was Still under negotiation.
In 1993-94, Klockner Ferromatik Desma GmbH sold their holding in Klockner Ferromatik
Desma Ltd (KFDL) , UK, the promoters of the company The name of Klockner
Ferromatik Desma Ltd, UK, has been changed to `DGP Windsor Ltd' Similarly, the name
of the company is now changed to DGP Windsor India Ltd
2003
-Mr. D L Shah has resigned as Director and Mr. Alok M Tibrewala has
been appointed as Additional Director.
2007
-Windsor Machines Ltd has appointed Mr. M K Arora as an Additional
Director on the Board with effect from September 29, 2007.
2008
-Windsor Machines Limited has informed that The Committee at its
meeting held on July 14, 2008 has appointed Mr. Anil Pareek, Chief
Financial Officer, of the Company, as the Compliance Officer.
3.5 Three state of art production:-
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Thane Works
Super built Area: 2200 sq.m
Vatva Works
Super built Area: 29625 sq.m
Chhatral Works
Super built Area: 34800 sq.m
3.6 About products:-
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Extrusion Machinery
Blow Moulding Machine
Injection Moulding Machine
Our product address following application
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Monolayer and multi layer blown film plants and polypropylene film plants:
For producing packaging films for polybags, snacks, milk, edible oil, water pouches
and packaging, heavy duty films, agriculture films, silage film, heat shrink films and
stretch cling films.
Twin screw RPVC pipe plants and single screw HDPE pipe plants:
For pipes for agriculture, irrigation, potable water supply, electrical conduits,
construction and specialty pipes.
Segmented Twin screw co rotating compounding lines:
For manufacturing of master batches, colour plastic furniture compounds and electrical
conduits, construction and specialty pipes.
Extrusion coating and lamination plants:
For lamination of woven sack packaging for bulk packaging for cement, fertilizer,
food grain, agro sacks and tarpaulins, rain sheeting etc. lamination of paper and
aluminum.
Single & two colour pen barrel lines & two colour straw lines:
For pen refills and small sizes tubes etc.
Extrusion palletizing lines:
For recycling of and making pellets/granules of the same from waste of injection and
extrusion of all types of plastic.
Blow Moulding machines:
Fully automatic with PLC and MMI, high output, and with online neck bottom
trimming of containers for finished bottles/containers. Range includes machines from
100ml to 100 liters bottles/ jerry cans/ container.
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Chapter-4
Introduction to Export-Import:-
4.1 What is Export?:-
The term export is derived from the conceptual meaning as to ship the goods and services
out of the port of a country. The seller of such goods and services is referred to as an
exporter who is based in the country of export whereas the overseas based buyer is
referred to as an importer. In International Trade, an export refers to selling goods and
services produced in home country to other markets.
4.2 What is Import?:-
The term import is derived from the conceptual meaning as to bring in the goods and
services into the port of a country. The buyer of such goods and services is referred to an
importer who is based in the country of import whereas the overseas based seller is
referred to as an exporter. Thus an import is any good or service brought in from one
country to another country in a legitimate fashion, typically for use in trade. It is a good
that is brought in from another country for sale. Import goods or services are provided to
domestic consumers by foreign producers. An import in the receiving country is
an export to the sending country.
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4.3 OBJECTIVES:-
The objective of the project that is assigned to me is as follows:
To know about export import process.
To know what are the documents required before and after sailing the machines.
To know different type of document used in Export-Import.
To know the export figure and compare it with the last year.
To know the import figure and compare it with the last year.
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4.4 Risk Involment In Export & Import:-
Price risk
Time limit and payment system
Fluctuation of exchange rate
Multi model transportation( Sea / Air / Road / Railway)
Packing / Labeling
Legal formalities
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4.5 Details: -
The exports and imports activities contribute significantly towards the healthy growth
of any economy. Imports imply bringing of goods into the country to fulfill the
domestic need and when the country supplies surplus goods to foreign countries, it is
termed as exports. When a wide gap between the exports and imports rate arises then
serious economic problems like inflation and BoP (Balance of Payments) weakens
the integrity of the existing economy. Thus to maintaining appropriate balance of
trade between exports and imports the state authority has forged various types of legal
frameworks in terms of different Acts and policies.
In India, there are several Acts and policies enacted to have a uniform practice in
export & import trade practices. Among those Acts, Imports and Exports (Control)
Act, 1947, Foreign Trade (Development and Regulation) Act, 1992 and Import-
Export (EXIM) Policy 1997-2002 are few significant Acts and policies. The Imports
and Exports (Control) Act, 1947 has been replaced by Foreign Trade (Development
and Regulation) Act, 1992 to empower the central government to have more control
on exports and imports activities.
The Foreign Trade (Development and Regulation) Act, 1992 has empowered the
Government to:
Enact provisions related to development and regulation of trades for domestic
as well as international market.
Restrict and regulate all forms of exports and imports in case of requirements
and declare tariff exemption by accessing special needs.
Announce an EXIM policy and its episodic amendment by notification.
Authorize the concerned officials to issue 'Importer Exporter Code Number'
(IEC) to the exporters and importers.
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4.6 Export-Import Policy :-
1. To facilitate sustained growth in exports from India and import in India.
2. To stimulate sustained economic growth by providing access to essential raw
materials, intermediates, components, consumables and capital goods scheme
required for augmenting production and providing services.
3. To enhance the technological strength and efficiency of Industry Agriculture
industry and services, thereby improving their competitive strength while
generating new employment opportunities, and to encourage the attainment of
internationally accepted standards of quality.
4. To provide clients with high-quality goods and services at globally competitive
rates. Canalization is an important feature of Exim Policy under which certain
goods can be imported only by designated agencies. For an example, an item like
gold, in bulk, can be imported only by specified banks like SBI and some foreign
banks or designated agencies.
5. Additional benefit of 2% bonus, over and above the existing benefits of
5% / 2% under Focus Product Scheme, allowed for about 135 existing products.
6. Concessional Export Credit: Interest subvention of 2% for pre-shipment
credit for export sectors namely, Handloom, Handicraft, Carpet and SMEs for
all export sectors.
7. Exporters shall now have the flexibility to get a high value EPCG
authorization by filing their EPCG application on Annual basis.
8. Finished Leather export shall be entitled for Duty Credit Scrip @ 2%
under FPS.
9. Duty free import of specified trimmings, embellishments etc. shall be
available on Handloom made-ups exports @ 5% of FOB value of exports.
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4.7 Regulatory bodies:-
1. Directorate General of Foreign Trade (DGFT)
2. Engineering Export Council of India
3. Forward Markets Commission M/o Consumer Affairs, D/o Consumer Affairs
4. Insurance Regulatory and Development Authority M/o Finance
5. The Competition Commission of India M/o Company Affairs
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4.8 Manufacturing cycle:-
NO
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RELEASE OF SJO/ SBOM
FROM DESIGN
PLANNIN TESTING
RELEASE MTO
MACHINE SHOP/ DIE SHOP
CHECK RAW MATERIAL
PURCHASE-RELEASE PO EXISTING/NEW VENDOR
ENSURE MACHINE SPECS &ORDER FOR TESTING
RELEASE WO’S & ISSUE PRINT
PROCESS CONTROL AT VENDORS/FOLLOW-UP
STAGE ISPECTION/ FINAL INSPECTION
RELEASE WO’S
PROCESS MATERIALS
ISSUE MATERIALS TO ASSEMBLY
BUILDS AS PER ASSEMBLY SEQUENCE ENSURE QUALITY BY WORKMEN/ SUPERVISOR
OFFER FOR TESTING
ENSURE SPECIFICATION AS PER SBOM
RELEASE FOR DESPATCH FROM SALES DESPATECH ADVICE
PACKING
DISTPATCH
REWORK
SJO-SALES JOB ORDER
SBOM-SPECIFIC BILL OF MATERIAL
MTO-MADE TO ORDER
WO-WORK ORDER
GRN-GOODS RECEIPT NOTE
PPR-PART PRODUCTION REPORT
Manufacturing Cycle:
When the company receives the order, they release the SJO (Sales Job Order) and also
SBOM (Specific Bill of material) from design. After that they made a planning and they
release MTO (Made of Order) and they also ensure machine space and also test the order
release that order will be carried out by available machine or not. Then they check that
how many materials they have in their store, so that they come to know that how many
stock they have and they can make their purchase planning on that basis. So that material
should not be wasted and properly utilized and idle investment are not made. And before
releasing the purchase order they wail for week, because in that week they may receive
some more order and for completing that order again they have to purchase the materials
from outside. But as we have mentioned that before releasing the purchase order they wait
for a week. And finally they combine their previous require and current require for
materials and purchase the materials in a bulk, so that they get the benefit of bulk with a
large discount. And for purchase the materials they go for more vendors, and finally they
select one. And from them they purchase their required materials because their terms and
conditions are favorable. Finally when they purchase the materials, before taking into use
they verify that materials are according to their requirement or not. If materials are not
according to their requirement or not. If materials are not according to their requirement
they reject it and send it back to the suppliers. And if they find materials to be a good
quality and according to their requirement they complete their final inspection have
processed materials and send it to assembly. Than they build as per assemble sequence
and ensure quality by supervisor and workmen. When they complete the order they offer
for testing. If they ensure specification as per SBOM (Specific Bill if material) and they
test the machine and conform to SJO (Sales Job Order). But if machine are not according
to SJO or SBOM, they go for redesign and again verify. Until and unless machines are not
made according to SJO and SBOM they work on that and complete it. A than they release
for dispatch from sales dispatch advice. And at last machines are packed. And than it is
dispatched to the respected party. And at last machines are packed. And than it is
dispatched to the respected party. And than the process of production department comes to
an end. And. Work of finance department includes giving after sale service. And finance
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department and sales and distribution department starts. The sales and distribution
department includes giving after sale service. And finance department will have to collect
the bill amount and maintain the books of account of each party and made the balance
sheet at the end of the year.
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Chapter-5
Export Procedure:-
5.1 How to generate the export inquiry?:-
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INQUIRY GENERATION
REFERENCE ALL READY OUR CUSTOMER
EXPORT HOUSE AGENTS/ CONSULTANT
IDEBTYFY THE NEEDS
SENDING DATA
E-MAIL FAX PHONE PERSONAL VISIT
CUSTOMER REPLY
SUPPORT TO CONVERT INQUORY IN ORDER
CUSTOMER REPLY
CUSTOMER REPLY
CUSTOMER REPLY
CUSTOMER REPLY
ORDER
Before making the export, we need to have exported order and that is never possible
without generating inquiry. And inquiry can be generating from following sources.
Reference:
Inquiry can be generated from references. Suppose we are in search of market
where we can sale our product and from our past customers we get the references.
And we can arrange the meeting with them and may create export order.
All ready our customer:
All ready into the field means they are all ready our customers and we have to
make permanent deal with them. We have to retain them for a longer period of
time so that we can develop our business. So, in that way inquiry can be generated.
Export house:
If we want to have complete information about export, we can get it from export
house. In export house there are complete information about each and every
transaction, about sender, about receiver, about product, about product, about
country etc. so, by export house we can create export inquiry.
Agent/consultant:
For export promotion, company hired or keeps the contact with export agent or
export consultant. From them company generate the export inquiry by giving
commission or fees to them and develop the business.
Identify the needs:
After identify their requirement. What they will actually want or need, so that we
can sale our products to them according to their requirement. Until and unless if
we don’t able to identify their requirements, how can we approach them.
Sending the data:
After identify their requirement, we have to select the suitable module to them. So
that they can easily take the decision and able to give proper response to us. And if
we don’t send proper response to us. And if we don’t send proper module to them
it indicates our failure in identify their requirements. So we have to be very careful
about it. We can send the data from the following mention criteria.
Project Report On Import-Export Page 35
Fax
Phone
Personal visit
So, we can send them data by above-mentioned resources.
Customer reply:
When we send our information to any party, they get the idea about our products
and in future if they will require the products and in future if they will require the
products that we produce, than it may possible that they contact us and ask for
quotation. And we can also do the following activity to convert the inquiry in
order.
Support to convert inquiry in order:
While sending the information to any part, we make them confidence that we have
enough employees, enough raw materials, enough raw materials , enough technical
support and expert to complete the order. And we can also do the following
activity to convert the inquiry in order.
Test/ trial report
Demonstration of machine
Organization image
Technical comparison with competitors
We can also get the order by doing above mention activity.
Order:
After negotiation, the purchasing party gives the order to us. And now it’s our
responsibility to care out the order in time and send to respected party. And
according to order we start our production and when productions are complete, we
made an export.
5.2 How to export?:-
Project Report On Import-Export Page 36
“Marketing Across The National Boundaries”
“Export means to sale goods or machines outside the country”
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FIND THE MARKET
PROSPECT
ALL READY INTO THE FIELD
NEW ENTERANT
LESS AWERNESS
COMPLETE THE TARGET TO FIND THE CUSTOMERS
PRE-ORDER ACTIVITY
POST-ORDER ACTIVITY
INTRODUCTION
ESTABLISH THE CONTACT
UNDERSTANDING THE REQUIRMENT
SELECTION OF SUITABLE MODULE
SUBMITTION OF TECHNICAL AND COMMERCIAL OFFER
FOLLOW UP
NEGOTIATION
ORDER
ADVANCE RECEIPT
ORDER RELEASE FOR MANUFACTURING
TIMILY UPDATE TO CUSTOMER
TRAIL
BALANCE PAYMENT COLLECTION
INSPECTION
For export first of all we have to identify the market we can sale our products so that we
can capture the international market. For that there are three prospects:
All ready into the field
New element
Enough money but no idea
All ready into field means they are all ready our customers and we have to make
permanent deal with them. We have to retain them for a longer period of time so that we
cam develop our business.
New entrant means we haven’t made any deal with them in past because they are just run
there business, they don’t know anything about our products. So we have to make them
aware about our products and introduce us with them. And slowly and gradually we make
the good relation with them and develop our business.
Enough money but no idea mean company running their business and earned handsome
profit out of them but they don’t have any idea about our products. So we make them
aware that instead of purchasing the packaging and they can reduce their cost of
production and earn handsome profit. For e.g. if AMUL DAIRY produce the milk and for
packaging purpose they purchase polythene from outside, they can produce their own
packaging by purchasing our polythene makes machine.
When the target of finding the prospect comes to an end, we have to do certain pre-order
activity and post-order activity.
5.3 Pre-order activity:
Project Report On Import-Export Page 38
Before starting of our business with them we have to do certain pre-order activity as
below.
Introduction :
This is the first stage of starting the business with any one. At these stage we
have to introduce us, our products, our capability etc. and give the complete
information to the party.
Establishment the contact
After introducing, we have to contact them and ask weather they interested in
our products or not. Because if we don’t even make any contact to them, how
can we know about there interest. So until and unless we don’t receive any
proper response from them we keep on contact them.
Understanding the requirement:
After make the contact to them, we have to identify their interested their
requirements. What they will actually want or need, so that we can sale our
products to them according to their requirement. Until and unless if we don’t
able to identify their requirements, how can we approach them.
Selection of suitable module:
After identify their requirement, we have to select suitable module to them. So
that they can easily take the decision and able to give proper response to us.
And if we don’t send proper module to them it indicates our failure in identify
their requirements. So we have to be very careful about it.
Follow up:
Once we send them suitable module to them, we have to give enough time to
them to think and after that we have to approach them in such a manner that
they can easily deal with us, because it is a very crucial stage. If we don’t follow
them in a proper manner.
Negotiation:
Negotiation means two or more party agreed at a point, where there are win-win
situations. This is very important stage before receiving the order, because after
this stage the deal is going to be signed. So we have to negotiation with the
party and convince them.
Project Report On Import-Export Page 39
Order:
After negotiation, the purchasing party gives the order, and now it’s our
responsibility to carry out the order in time and send to respected party.
5.4 Post-order activity:-
After receiving the order we have to do certain post-order activity as below.
Project Report On Import-Export Page 40
Advance receipt:
After receiving the order, first of all we have to collect the advance payment
from the party before starting of production. If we start the production before
receiving the advance, it may possible to have a loss because of cancellation of
order. So we have a loss because of cancellation of order. So we have to be a
very careful about it.
Order release for manufacturing:
When we have received the advance from the respected party, we release the
order for manufacturing, so that the production will be complete on time.
Timely update to customer:
Once we release the order for manufacturing, we have to watch on that because
we have to watch on that because we have to inform to the party. It’s our
responsibility to timely updating to the customer. And we must keep in touch to
the customer.
Trial:
When the production department completes the target of production and
machine or order is ready according to the order, we have to trial that machines
because if it is not according to the order, we have to bare the loss of rework. So
we have to be a very careful about it.
Balance payment collection:
After testing the machine, we have to information to the purchasing party that
your order is ready and inform to pay balance payment of their order. And we
must collect the balance payment before sending the goods.
Inspection:
After collecting the balance payment, we have to make the inspection and at last
we send the machine to the purchasing party. And after that we have to give
after sales services for making the long-term relation with them.
Chapter-6
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Export Documentation:-
6.1 Which documents are necessary for making export?:-
Types of documents required for making the export as follow:
Pre-shipment documents : they are as follow
Custom invoice :-
Extended form of commercial invoice required by customs(often in a
specified format) in which the exporter states the description quantity
and selling price, freight, insurance, and packing cost, terms of delivery and
payment, weight and/or volume of the goods for the purpose of determining
customs import value at the port of destination.
Custom packing list :-
Considerably more detailed and informative than a standard domestic packing
list, it lists seller, buyer, shipper, invoice number, date of shipment, mode of
transport, carrier, and itemizes quantity, description, the type of package, such
as a box, crate, drum, or carton, the quantity of packages, total net and gross
weight (in kilograms), package marks, and dimensions, if appropriate. Both
commercial stationers and freight forwarders carry packing list forms. A
packing list may serve as conforming document. It is not a substitute for a
commercial invoice.
A.R.E.-1form :-
It is essential that the excisable goods shall be exported after payment of duty,
directly from a factory or warehouse. The condition of "payment of duty" is
satisfied once the exporter records the details of removals in the Daily Stock
Account maintained under rule 10 of the said Rules, whereas the duty may be
discharged in the manner specified under rule 8 of the said Rules, i.e. on
fortnightly or monthly basis, as the case may be.
Excise invoice cum challan :-
Project Report On Import-Export Page 42
A business document, in India, that you prepare when you issue excisable goods
from a manufacturing plant, for example:
To be sold to a customer
To be transferred to another of your plants
The excise invoice lists the goods that you have issued and states how much
excise duty applies. Your customer uses the excise invoice to claim back the
excise that it has paid from the excise authorities.
Export value declaration :-
Customs form completed and submitted by an exporter at the port of export, it is
meant t serve two major purposes: (1) to provide information on amount, nature
and value of the exports to the statistical office for compilation of foreign
trade data, and (2) to serves as an export control document. In some cases,
an export license and/or a certificate of origin is also required to be attached.
Shipping bills :-
Customs document used where drawback is claimed, such as on goods exported
or on dutiable goods transshipped or re-exported from a bonded warehouse.
It serves basically as a statistical record.
SDF (self declaration form) :-
The self declaration form is a form in which we ask you to declare any criminal
warnings, cautions and convictions that you may have and to agree to keep us
informed of any subsequent warnings, cautions or convictions.
Certificate of analysis / Test Report :-
An authenticated document, issued by an appropriate authority,
that certifies the quality and purity of pharmaceuticals, and animal
and plant products being exported.
Letter of credit :-
L/C. A binding document that a buyer can request fro his bank in
order to guarantee that the payment for goods will be tranferred to the seller.
Basically, a letter of credit gives the seller reassurance that he will receive the
payment for the goods. In order for the payment to occur, the seller has
to present the bank with the necessary shipping documents
confirming the shipment of goods within a given time frame. It is often used
Project Report On Import-Export Page 43
in international trade to eliminate risks such as unfamiliarity with
the foreign country, customs, or political instability.
Proforma Invoice :-
An abridged or estimated invoice sent by a seller to a buyer in advance of
a shipment or delivery of goods. It notes the kind and quantity of goods,
their value, and other important information such as weight and transportation
charges. Pro forma invoices are commonly used as preliminary invoices with
a quotation, or for customs purposes in importation. They differ from a normal
invoice in not being a demand or request for payment.
Purchase order :-
A buyer-generated document that authorizes a purchase transaction. When
accepted by the seller, it becomes a contract binding on both parties.
A purchase order sets forth the descriptions, quantities, prices, discounts,
payment terms, date of performance or shipment, other associated terms and
conditions, and identifies a specific seller.
Post-shipment documents :
Commercial invoice :-
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A bill for the goods from the seller to the buyer. These invoices are often used
by governments to determine the true value of goods when assessing customs
duties. Governments that use the commercial invoice to control imports will
often specify its form, content, number of copies, language to be used, and other
characteristics.
Packing list :-
Considerably more detailed and informative than a standard domestic packing
list, it lists seller, buyer, shipper, invoice number, date of shipment, mode of
transport, carrier, and itemizes quantity, description, the type of package, such
as a box, crate, drum, or carton, the quantity of packages, total net and gross
weight (in kilograms), package marks, and dimensions, if appropriate. Both
commercial stationers and freight forwarders carry packing list forms. A
packing list may serve as conforming document. It is not a substitute for a
commercial invoice.
Bill of lading :-
A contract between the owner of the goods and the carrier (as with domestic
shipments). For vessels, there are two types: a straight bill of lading, which is
non-negotiable, and a negotiable or shipper's order bill of lading. The latter can
be bought, sold, or traded while the goods are in transit. The customer usually
needs an original as proof of ownership to take possession of the goods.
Certificate of origin :-
The Certificate of Origin (CO) is required by some countries for all or only
certain products. In many cases, a statement of origin printed on company
letterhead will suffice. The exporter should verify whether a CO is required with
the buyer and/or an experienced shipper/freight forwarder or the Trade
Information center.
Freight invoice :-
Alternative term for freight bill.
Carrier's invoice for freight charges applicable to a shipment.
Inspection certificate :-
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Weight and Quality certificates should be provided in accordance with
governing USDA/GIPSA regulations for loading at port and loading at
source/mill site as appropriate. A certificate of origin certified by local chamber
of commerce at load port and a Phytosanitary certificate issued by
APHIS/USDA and Fumigation certificate are to be provided to buyer. Costs of
all inspection, certificates/ documents at the load port are usually the
responsibility of the seller.
Bank realization certificate :-
It is issued by the bank to the exporter through which can be realized its export
proceeds in orderly manner.
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6.2 Export figure and data interpretation:-
Year wise domestic as well as export figure for the year 2009-2010 and 2010-2011.
(In lacks)
Month DOM.09-10 DOM.10-11 EXP.09-10 EXP.10-11April 835.90 826.12 111.13 228.46May 490.63 751.91 197.74 137.06June 505.36 575.15 443.76 241.53July 525.19 727.49 367.17 301.09
August 459.55 753.67 514.08 193.63September 510.31 641.80 214.87 359.60
October 602.47 613.27 247.02 463.89November 402.30 411.98 433.68 254.21December 854.33 478.68 135.56 449.02January 879.18 578.10 200.85 217.94February 661.60 688.82 167.20 167.18
March 709.52 965.27 260.48 99.43Total 7436.34 8012.26 3293.54 3113.04
Project Report On Import-Export Page 47
AprilMay
JuneJuly
August
Septem
ber
October
November
December
January
Febru
aryMarc
hTo
tal0
1000
2000
3000
4000
5000
6000
7000
8000
9000
DOM.09-10DOM.10-11EXP.09-10EXP.10-11
Project Report On Import-Export Page 48
Total sales for the export year 2009-10 and 2010-11 including sales of domestic as
well as export:
MONTH DOM. SALES FOR 09-10 EXP. SALES FOR 09-10
AMT. IN LAKHS 7436.34 3293.54
DOM. SALES FOR 09-10 EXP. SALES FOR 09-100
1000
2000
3000
4000
5000
6000
7000
8000
AMT. IN LAKHS
MONTH DOM. SALES FOR 10-11 EXP. SALES FOR 10-11
AMT. IN LAKHS 3113.04 8012.26
DOM. SALES FOR 10-11 EXP. SALES FOR 10-110
1000
2000
3000
4000
5000
6000
7000
8000
9000
AMT. IN LAKHS
MONTH DOM. SALES FOR 09-10 DOM. SALES FOR 10-11
Project Report On Import-Export Page 49
AMT. IN LAKHS 7436.34 8012.26
DOM. SALES FOR 09-10 DOM. SALES FOR 10-1171007200730074007500760077007800790080008100
AMT. IN LAKHS
MONTH EXP. SALES FOR 09-10 EXP. SALES FOR 10-11
AMT. IN LAKHS 3293.54 3113.04
EXP. SALES FOR 09-10 EXP. SALES FOR 10-113000
3050
3100
3150
3200
3250
3300
AMT. IN LAKHS
Project Report On Import-Export Page 50
Chapter-7
Import Procedure:-
7.1 Import of machines/ materials:-
Project Report On Import-Export Page 51
Ask for quotation from suppliers
Quotation sends by supplier
Send the order
Made of payment
Remitted the necessary document to the bank
Shippers Performa invoice
Purchase order
Insurance certificate
From A-1 for import payment
Fund send by I.T
Send the shipment through Airport of shipper country to Airport of importer country with above documents
Send the documents to C.H.A for custom clearance
Send the goods to factory with following documents
Bill of entry
Import invoice
Airway bills
Clearance bill
Send the tropical copy of B.E to bank against advance remittance
Use the imported machines or materials
7.2 How to make import?:-
“Import means to purchase the goods or machines outside the country”
For making the import we have to do the following steps.
Ask the quotation from suppliers
These is the first step of import the spares, material, equipment etc. and at this
stage we like to have more than one quotations for bargaining. If we have more
quotation than we easily bargain with suppliers. And also we can purchase the
higher quality goods reasonable price.
Quotation send by supplier:
When we ask the quotation from supplier by giving our Performa invoice, on that
basis supplier send the quotation to us for getting the order from us. And stage we
have to study all the quotation and finally select any one of them.
Negotiation:
Negotiation means two or more party agreed at a point, where there are “win-win
situations”. This is very important stage before giving the order, because after this
stage the deal is going to be signed. So we have to negotiation with the party and
give order at reasonable price.
Send the order
After negotiating, we have to give the order to the supplier on the agreed price and
terms. In that we have to mention the require quantity with its specification and
also the time limit.
Mode of payment:
After giving the order, we have to make the full payment or advance payment for
the starting of production. Until and unless we are not giving the advance to the
supplier, they are not starting our order. So we have to make the payment to them
and also submit them and also submit the following documents.
Shipper’s Performa invoice
Purchase order
Insurance certificate
Form A-1 for import payment
Project Report On Import-Export Page 52
Fund send by T.T or L/C
After receiving the above mention certificate, they start the production and
complete it before the date mentioned in order. Than they inform us about
completion of our order and also ask about balance payment if any.
Send the shipment:
When we give the balance payment they send the shipment through their airport or
ship to our airport or ship with above document.
Document clearance:
Suppliers send the goods to us with above mention documents for clearance from
C.H.A (custom House Agent). Where C.H.A clear all the documents.
Send the goods to factory:
After clearing the documents by C.H.A., they send the goods to the factory with
the following documents.
Bill of entry
Import invoice
Airway bills or shipper bills
Clearance bill
Now, we receive our ordered goods with the above mention documents and we
have to send the triplicate copy of B.E to bank advance against advance
remittance and proof of import.
Use the machine:
After receiving the goods with the necessary documents, we can use the imported
machine as per our requirement.
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Chapter-8
Import Documentation:-
8.1 Import figure and data interpretation:-
Year wise import figure for the year 2009-2010 and 2010-2011.
(In lacks)
Month 2009-2010 2010-2011
April 44.12 29.67
May 29.70 35.97
June 21.80 48.79
July 40.22 29.91
August 11.40 33.85
September 8.67 32.55
October 24.37 27.79
November 64.10 80.94
December 38.76 20.63
January 46.85 64.05
February 47.82 68.57
March 38.60 78.88
Total 416.41 551.6
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AprilMay
JuneJuly
August
Septem
ber
October
November
December
January
Febru
aryMarc
hTo
tal0
50
100
150
200
250
300
350
400
450
2009-2010
Project Report On Import-Export Page 55
AprilMay
JuneJuly
August
Septem
ber
October
November
December
January
Febru
aryMarc
hTo
tal0
100
200
300
400
500
600
2010-2011
Chapter-9
Project Report On Import-Export Page 56
Import-Export:-
9.1 In case of export or import, how to make the payment:-
In case of export or import, the payment is made by two ways as follows.
Project Report On Import-Export Page 57
MODE OF PAYMENT
TELEGRAPHIC TRANSFER LETTER OF CREDIT
Information required:
Beneficiary ‘s name and address
Beneficiary ‘s bank Beneficiary‘s a/c no. Beneficiary‘s swift
code no.
Payable at sight
Usance L.C.
Including interest
Without interest
Information required
Beneficiary ‘s name and address
Beneficiary ‘s bank Beneficiary‘s a/c no. Beneficiary‘s swift
code no.
Telegraphic transfer:
In case of I.T (Telegraphic transfer), the total payment is made before
receiving the goods.
Letter of credit:
In case of L.C (Letter of credit), the payment is made after receiving the
goods.
What is include in I.T:
Beneficiary ‘s name and address
Beneficiary ‘s bank
Beneficiary‘s a/c no.
Beneficiary‘s swift code no.
What is include in L.C:
Beneficiary ‘s name and address
Beneficiary ‘s bank
Beneficiary‘s a/c no.
Beneficiary‘s swift code no.
Project Report On Import-Export Page 58
9.2 Comparison between Import and Export for the year 2009-10:-
Month IMP.09-2010 EXP.09-10
April 44.12 111.13
May 29.70 197.74
June 21.80 443.76
July 40.22 367.17
August 11.40 514.08
September 8.67 214.87
October 24.37 247.02
November 64.10 433.68
December 38.76 135.56
January 46.85 200.85
February 47.82 167.20
March 38.60 260.48
Total 416.41 3293.54
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AprilMay
JuneJuly
August
Septem
ber
October
November
December
January
Febru
aryMarc
hTo
tal0
500
1000
1500
2000
2500
3000
3500
4000
EXP.09-10IMP.09-10
9.3 Comparison between Import and Export for the year 2010-11:-
Project Report On Import-Export Page 60
Month IMP.10-11 EXP.10-11
April 29.67 228.46
May 35.97 137.06
June 48.79 241.53
July 29.91 301.09
August 33.85 193.63
September 32.55 359.60
October 27.79 463.89
November 80.94 254.21
December 20.63 449.02
January 64.05 217.94
February 68.57 167.18
March 78.88 99.43
Total 551.6 3113.04
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AprilMay
JuneJuly
August
Septem
ber
October
November
December
January
Febru
aryMarc
hTo
tal0
500
1000
1500
2000
2500
3000
3500
4000
EXP.10-11IMP.10-11
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Chapter-10
Conclusion / Suggestion:-
I have made my Project of export and import of WINDSHOR MACHINES. And I find it
really tuff but very interesting because these would be totally new for me and also very
large subject for me. There is no doubt about that WINDSHOR MACHINES LTD. Is
totally concentrate in export of machines because to technically competitive in
international market as a prime market place is the goal for them. And for that they are
giving their more and more efforts and expansion. And I believe that within a coming year
they will achieve it and become one of the largest plastic manufacturing processor
international market.
After analyze everything about export and import, I find that they are going well with their
export business. They have enough experts of export and international marketing and also
a large number of workers to carry out the order in time. And to complete the any task in
time is the indication of success. I have gone through all the details of export and import
in depth including document, procedure, and month wise figure. And I find it all vary
strong and enough for future growth and expansion. While going through the statistic and
comparative study of export and import, I find that our company is exporting 110 times of
import. And also I find that export figure is well in comparison of domestic sales.
Project Report On Import-Export Page 63