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268 APPENDIX I Questionnaire for Pilot Study Please identify the issues and challenges in context of outbound logistics activities of Indian Apparel Exports. Stage I Section 1: Customs Clearance Issues and Challenges Yes/No Remarks, if any Technical challenges in EDI systems Number of staff/officers/resources at customs Wrong declaration by shipper Corruption/ bureaucracy/non-cooperation of customs officers Understanding of valuation and supporting procedures/policies of customs officials Missing documents/error in documents or in registered data at customs Manual /physical inspection at customs Heightened security initiative like CSI, CTPAT at customs Appeal process against decisions at customs Product/tariff classification issues at customs Limited working hours of customs officials Please add if any other issue or challenge Section 2: Export Documentation Issues and Challenges Yes/No Remarks, if any Partial automation/integration of systems for export documentation at various export related agencies Level of clarity in export sales contract/ international practices and guidelines Clerical errors in export related documents Number of documents required in existing process Level of complication involved in export documentation Please add if any other issue or challenge

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Page 1: APPENDIX I Questionnaire for Pilot Studyshodhganga.inflibnet.ac.in/bitstream/10603/72458/16/16_appendix.pdf · Section 7: Export Packaging (Containerisation) Issues and Challenges

268

APPENDIX I

Questionnaire for Pilot Study

Please identify the issues and challenges in context of outbound logistics activities of

Indian Apparel Exports.

Stage I

Section 1: Customs Clearance

Issues and Challenges Yes/No Remarks, if any

Technical challenges in EDI systems

Number of staff/officers/resources at customs

Wrong declaration by shipper

Corruption/ bureaucracy/non-cooperation of

customs officers

Understanding of valuation and supporting

procedures/policies of customs officials

Missing documents/error in documents or in

registered data at customs

Manual /physical inspection at customs

Heightened security initiative like CSI, CTPAT

at customs

Appeal process against decisions at customs

Product/tariff classification issues at customs

Limited working hours of customs officials

Please add if any other issue or challenge

Section 2: Export Documentation

Issues and Challenges Yes/No Remarks, if any

Partial automation/integration of systems for

export documentation at various export related

agencies

Level of clarity in export sales contract/

international practices and guidelines

Clerical errors in export related documents

Number of documents required in existing

process

Level of complication involved in export

documentation

Please add if any other issue or challenge

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269

Section 3: Port warehousing and material handling

Issues and Challenges Yes/No Remarks, if any

Space for seaport operations/storage/internal

movement

Berthing space and quay infrastructure

Seaport information technology (IT) system

Number of cargo handling equipment at sea port

Number of vehicle entry points at seaport

Bureaucratic issues at seaport operations

Labour related issues at seaport

Coordination between various parties involved at

seaport operations

Increased security regulations at seaport

Level of maintenance practices at seaport

Unfavourable weather conditions / acts of God at

port

Please add if any other issue or challenge

Section 4: ICD/CFS warehousing and material handling

Issues and Challenges Yes/No Remarks, if any

Number of cargo handling equipment at

ICD/CFS

Number of vehicle entry points at ICD/CFS

Availability of storage space at ICD/CFS

Number of rail sidings at ICD/CFS

Technology level of warehousing systems at

ICD/CFS

Level of training and experience of people at

ICD/CFS

Coordination between various intermodal

players involved at ICD/CFS

Level of maintenance practices at ICD/CFS

Increased security regulations at ICD/CFS

Please add if any other issue or challenge

Section 5: Road Transportation

Issues and Challenges Yes/No Remarks, if any

Quality /condition of roads

Availability of trucks/trailers for road transit

Level of efficiency /technology (GPS, etc.)

inbuilt in trucks /trailers for road transit

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270

Level of expansion of road network

Level of professionalism/skills of truck driver

Time involved in interstate regulatory check

points

Waiting time due to vehicle entry restrictions in

cities

Level of maintenance practices of trucks/trailers

Unfavourable weather conditions / acts of God

during road transit

Please add if any other issue or challenge

Section 6: Rail Transportation

Issues and Challenges Yes/No Remarks, if any

Availability of rakes/wagons for rail

transportation

Number of dedicated tracks for container rail

transportation

Frequency of container rail services due to

evacuation constraints

Level of planning and coordination in cargo rail

services

Level of priority to passenger trains over

container trains

Unfavourable weather conditions / acts of God

Please add if any other issue or challenge

Section 7: Export Packaging (Containerisation)

Issues and Challenges Yes/No Remarks, if any

Availability of containers for garment stuffing

Time involved in LCL consolidation

Please add if any other issue or challenge

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271

Please identify the cost implication factors to Indian apparel exporters due to delay

in apparel export shipments caused by logistics issues and challenges.

Cost Implication factors Yes/No Remarks, if any

Increase administration workload and costs

Increase transport costs

Affect sales and promotion plans (Company’s

image)

Inventory costs

Account receivable and cash flow

Custom-port costs (inspection, storage,

clearance, etc.)

Please add if any other issue or challenge

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272

Stage II

Please advise gateway seaports for following apparel clusters

Delhi NCR Jaipur Ludhiana Bangalore Tirupur

Seaports

Please advise cycle time (in number of days) for below logistics activities in no

delay scenario (The cycle time of an activity is defined as elapsed time span from

start till end of activity)

Please consider FOB Sea mode for apparel export shipments (from ex-factory till ex-

county node)

Delhi NCR Jaipur Ludhiana Bangalore Tirupur

Export

Documentation

(with external

agencies)

Export Packaging

(Containerisation)

Customs

Clearance

ICD/CFS related

activities

Road

Transportation

Rail

Transportation

Seaport related

activities

Please suggest number of days of delay which can be managed for loading of

apparel shipments on the planned vessel.

No. of days…………………………..

Please add

remarks………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

Please validate below identified issue during first stage

Issues and Challenges Yes/No

Lack of availability of Garment on Hanger (GOH) containers

Remarks, if any:

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273

Stage III

Please validate below mentioned cycle time (in number of days) of logistics

activities for apparel clusters. Please answer as Yes or No.

Destination ports for North India Apparel Cluster: JNPT Mumbai, Mundra, Pipavav

Destination ports for South India Apparel Cluster: Chennai, Tuticorin

Document-

ation

Customs

Clearance

Container-

isation

ICD/CFS

related

activities

Road

Trans.

Rail

Trans.

Seaport

Related

activities

Total

time

Delhi

NCR 1 0.5- 1 0.5- 1 1 3-4 2-3 1 6-7

Please

validate

Jaipur 1 0.5- 1 0.5- 1 1 2-3 2 1 6-7

Please

validate

LDH 1 0.5- 1 0.5- 1 1 3 4-6 1 7-8

Please

validate

BLR 1 0.5- 1 0.5- 1 0.5- 1 0.5 0.5- 1 1 4-5

Please

validate

Tirupur 1 0.5- 1 0.5- 1 0.5- 1 0.5 1 4-5

Please

validate

Please give your remarks if any

Please validate number of days of delay which can be managed for loading of

apparel shipments on the planned vessel.

No. of days which can be managed for catching the

planned vessel

Please

validate in

Yes or No

North India Cluster 1-3 days (but not certain)

South India Cluster

(Mother Vessel from

Colombo)

1-3 days (but not certain)

Please validate the below remark Please

validate in

Yes or No

If delay exceeds for more than three days then it is highly improbable to

load the cargo on the same vessel unless exporter bears extra transportation

cost (to send the cargo from landlocked origin) till the gateway port

through air mode or with express road services) and other kinds of costs.

Although there is no surety that cargo will certainly get loaded on the

planned vessel

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274

APPENDIX II

Questionnaire for Phase II- Stage I study

Name of the organization: _____________________________

Location of your office: _______________________________

Respondent Name: ___________________________________

Designation: ________________________________________

Please rank below outbound logistics activities of Indian Apparel exports in terms of

their severity level of affecting delivery lead time.

(Please rank 1 being most severe)

Section 1: Outbound Logistics activities

Rank

Export Documentation (with external agencies)

Export Packaging (Containerisation)

Customs Clearance

ICD/CFS warehousing and material handling

Road Transportation

Rail Transportation

Seaport warehousing and material handling

Please rank below of issues & challenges involved in outbound logistics activities of

Indian Apparel exports in terms of their severity level of affecting delivery lead

time.

(Please rank 1 being most severe)

Section 2: Customs Clearance

Issues and Challenges Rank

Technical challenges in EDI systems

Number of staff/officers/resources at customs

Wrong declaration by shipper

Corruption/ bureaucracy/non-cooperation of customs officers

Understanding of valuation and supporting procedures/policies of

customs officials

Missing documents/error in documents or in registered data at

customs

Manual /physical inspection at customs

Heightened security initiative like CSI, CTPAT at customs

Appeal process against decisions at customs

Product/tariff classification issues at customs

Limited working hours of customs officials

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275

Section 3: Export Documentation

Issues and Challenges Rank

Partial automation/integration of systems for export documentation

at various export related agencies

Level of clarity in export sales contract/ international practices and

guidelines

Clerical errors in export related documents

Number of documents required in existing process

Level of complication involved in export documentation

Section 4: Port warehousing and material handling

Issues and Challenges Rank

Space for seaport operations/storage/internal movement

Berthing space and quay infrastructure

Seaport information technology (IT) system

Number of cargo handling equipment at sea port

Number of vehicle entry points at seaport

Bureaucratic issues at seaport operations

Labour related issues at seaport

Coordination between various parties involved at seaport operations

Increased security regulations at seaport

Level of maintenance practices at seaport

Unfavourable weather conditions / acts of God at port

Section 5: ICD/CFS warehousing and material handling

Issues and Challenges Rank

Number of cargo handling equipment at ICD/CFS

Number of vehicle entry points at ICD/CFS

Availability of storage space at ICD/CFS

Number of rail sidings at ICD/CFS

Technology level of warehousing systems at ICD/CFS

Level of training and experience of people at ICD/CFS

Coordination between various intermodal players involved at

ICD/CFS

Level of maintenance practices at ICD/CFS

Increased security regulations at ICD/CFS

Section 6: Road Transportation

Issues and Challenges Rank

Quality /condition of roads

Availability of trucks/trailers for road transit

Level of efficiency /technology (GPS, etc.) inbuilt in trucks /trailers

for road transit

Level of expansion of road network

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276

Level of professionalism/skills of truck driver

Time involved in interstate regulatory check points

Waiting time due to vehicle entry restrictions in cities

Level of maintenance practices of trucks/trailers

Unfavourable weather conditions / acts of God during road transit

Section 7: Rail Transportation

Issues and Challenges Rank

Availability of rakes/wagons for rail transportation

Number of dedicated tracks for container rail transportation

Frequency of container rail services due to evacuation constraints

Level of planning and coordination in cargo rail services

Level of priority to passenger trains over container trains

Unfavourable weather conditions / acts of God

Section 8: Export Packaging (Containerisation)

Issues and Challenges Rank

Availability of containers for garment stuffing

Availability of containers for hanging garment stuffing

Time involved in LCL consolidation

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APPENDIX III

Questionnaire for Phase II- Stage II study

Name of the organization: _____________________________

Location of your office: _______________________________

Respondent Name: ___________________________________

Designation: ________________________________________

Please rate below outbound logistics activities of Indian Apparel exports (Scale 1-5)

in terms of their severity level of affecting delivery lead time.

(Please rate 1 being least severe and 5 being most severe)

Please tick for your rating selection

Section 1: Outbound Logistics activities

1 2 3 4 5

Export Documentation (with external agencies)

Export Packaging (Containerisation)

Customs Clearance

ICD/CFS warehousing and material handling

Road Transportation

Rail Transportation

Seaport warehousing and material handling

Please rate below of issues & challenges involved in outbound logistics activities of

Indian Apparel exports (Scale 1-5) in terms of their severity level of affecting

delivery lead time.

(Please rate 1 being least severe and 5 being most severe)

Please tick for your rating selection

Section 2: Customs Clearance

Issues and Challenges 1 2 3 4 5

Technical challenges in EDI systems

Number of staff/officers/resources at customs

Wrong declaration by shipper

Corruption/ bureaucracy/non-cooperation of customs

officers

Understanding of valuation and supporting

procedures/policies of customs officials

Missing documents/error in documents or in

registered data at customs

Manual /physical inspection at customs

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278

Heightened security initiative like CSI, CTPAT at

customs

Appeal process against decisions at customs

Product/tariff classification issues at customs

Limited working hours of customs officials

Section 3: Export Documentation

Issues and Challenges 1 2 3 4 5

Partial automation/integration of systems for export

documentation at various export related agencies

Level of clarity in export sales contract/ international

practices and guidelines

Clerical errors in export related documents

Number of documents required in existing process

Level of complication involved in export

documentation

Section 4: Port warehousing and material handling

Issues and Challenges 1 2 3 4 5

Space for seaport operations/storage/internal

movement

Berthing space and quay infrastructure

Seaport information technology (IT) system

Number of cargo handling equipment at sea port

Number of vehicle entry points at seaport

Bureaucratic issues at seaport operations

Labour related issues at seaport

Coordination between various parties involved at

seaport operations

Increased security regulations at seaport

Level of maintenance practices at seaport

Unfavourable weather conditions / acts of God at port

Section 5: ICD/CFS warehousing and material handling

Issues and Challenges 1 2 3 4 5

Number of cargo handling equipment at ICD/CFS

Number of vehicle entry points at ICD/CFS

Availability of storage space at ICD/CFS

Number of rail sidings at ICD/CFS

Technology level of warehousing systems at

ICD/CFS

Level of training and experience of people at

ICD/CFS

Coordination between various intermodal players

involved at ICD/CFS

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279

Level of maintenance practices at ICD/CFS

Increased security regulations at ICD/CFS

Section 6: Road Transportation

Issues and Challenges 1 2 3 4 5

Quality /condition of roads

Availability of trucks/trailers for road transit

Level of efficiency /technology (GPS, etc.) inbuilt in

trucks /trailers for road transit

Level of expansion of road network

Level of professionalism/skills of truck driver

Time involved in interstate regulatory check points

Waiting time due to vehicle entry restrictions in

cities

Level of maintenance practices of trucks/trailers

Unfavourable weather conditions / acts of God

during road transit

Section 7: Rail Transportation

Issues and Challenges 1 2 3 4 5

Availability of rakes/wagons for rail transportation

Number of dedicated tracks for container rail

transportation

Frequency of container rail services due to

evacuation constraints

Level of planning and coordination in cargo rail

services

Level of priority to passenger trains over container

trains

Unfavourable weather conditions / acts of God

Section 8: Export Packaging (Containerisation)

Issues and Challenges 1 2 3 4 5

Availability of containers for garment stuffing

Availability of containers for hanging garment

stuffing

Time involved in LCL consolidation

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280

APPENDIX IV

Questionnaire for Phase III study

Name of the Organisation ____________________________________

Name of the Respondent_____________________________________

Designation _______________________________________________

Gateway Port______________________________________________

Freight Forwarders you work

with________________________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

________________________________________________________

Rank the below outbound logistics activities in terms of their severity level of

affecting delivery lead time of Indian Apparel Exports

Rank below logistics activities with 1 being most severe

(Please consider only for Sea Mode shipment, INCO Term – FOB, Port)

Documentation Customs

Clearance

Export

Packaging

ICD/CFS

related

activities

Road

Transportation

Rail

Transportation

Seaport

related

activities

Frequency of delays due to issues and challenges in Outbound Logistics activities

(from ex-factory to ex-country)

(Please allocate frequency weightage out of 100, total weightage distributed should

be 100%)

NOTE: For example on an average, an exporter may face no delay (15% times),

delay of 1 day (20% times), 2 days (15% times), 3 days (15% times), 4 days (10%

times), 5 days (10% times), 6 days (5% times) and 5% times more than 7 days due to

problems in documentation, consolidation, trucking, customs, transportation, etc.

Delay in number of days

1 day 2 days 3 days 4 days 5 days 6 days 7 days More than 7

days

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Cost Implication due to Outbound Logistics delays

(Please allocate frequency weightage out of 100, total weightage distributed should

be 100%)

NOTE: For example, on an average an exporter may incur extra cost like increase

administration workload ( 10% of the extra cost), transport costs (30% of extra cost),

affect sales and promotion plans (company’s image)(25% extra cost), inventory

costs (10% of extra cost), account receivable and cash flow (10% of extra cost)

Custom-port costs (15% of extra cost) due to issues and challenges in consolidation,

trucking, documentation, transportation, customs, etc.

Logistics delays related costs

Cost Implication Factors

Increase administration workload and costs

Increase transport costs

Affect sales and promotion plans (Company’s

image)

Inventory costs

Account receivable and cash flow

Custom—port costs (inspection, storage,

clearance, etc.)

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282

APPENDIX V

List of proposed training programs

Export Documentation

Training on customs documentation and compliance procedures

Training on commercial documentation and procedures

Training on shipping document and procedures

Training on document on third country transactions

Training on country specific requirement of documentation

Training on buyer specific requirement of documentation

Customs Clearance

Proposed training programs by AEPC on both apparel and textiles

Training on technical knowledge of apparel and textiles

Valuation Policies of apparel product categories

Duty structure and knowledge of advance licensing (import of raw materials)

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283

APPENDIX VI

INCOTERMS 2010 Guideline

The International Chamber of Commerce has released the table of contents to the

Incoterms 2010. Incoterms 2010 consists of only 11 Incoterms, a reduction from the

13 Incoterms 2000.

The Incoterms 2010 are organized into two categories:

Incoterms for any Mode or Modes of Transport:

EXW - Ex Works

FCA - Free Carrier

CPT - Carriage Paid To

CIP - Carriage and Insurance Paid

DAT - Delivered At Terminal (new)

DAP - Delivered At Place (new)

DDP - Delivered Duty Paid

Incoterms for Sea and Inland Waterway Transport Only:

FAS - Free Alongside Ship

FOB - Free On Board

CFR - Cost and Freight

CIF - Cost, Insurance and Freight

EXW (Ex Works)

The buyer bears all costs and risks involved in

taking the goods from the seller's premises to the

desired destination. The seller's obligation is to

make the goods available at his premises

(works, factory, warehouse). This term

represents minimum obligation for the seller.

This term can be used across all modes of

transport.

FCA (Free Carrier)

The seller's obligation is to hand over the goods,

cleared for export, into the charge of the carrier

named by the buyer at the named place or point.

If no precise point is indicated by the buyer, the

seller may choose within the place or range

stipulated where the carrier shall take the goods

into his charge. When the seller's assistance is

required in making the contract with the carrier

the seller may act at the buyers risk and expense.

This term can be used across all modes of

transport.

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CPT (Carriage Paid To)

The seller pays the freight for the carriage of

goods to the named destination. The risk of loss

or damage to the goods occurring after the

delivery has been made to the carrier is

transferred from the seller to the buyer. This

term requires the seller to clear the goods for

export and can be used across all modes of

transport.

CIP (Carriage & insurance Paid to)

The seller has the same obligations as under

CPT but has the responsibility of obtaining

insurance against the buyer's risk of loss or

damage of goods during the carriage. The seller

is required to clear the goods for export however

is only required to obtain insurance on minimum

coverage. This term requires the seller to clear

the goods for export and can be used across all

modes of transport.

DAT (Delivered At Terminal)

New Term - May be used for all transport

modes

Seller delivers when the goods, once unloaded

from the arriving means of transport, are placed

at the disposal of the buyer at a named terminal

at the named port or place of destination.

"Terminal" includes quay, warehouse, container

yard or road, rail or air terminal. Both parties

should agree the terminal and if possible a point

within the terminal at which point the risks will

transfer from the seller to the buyer of the

goods. If it is intended that the seller is to bear

all the costs and responsibilities from the

terminal to another point, DAP or DDP may

apply.

Responsibilities

Seller is responsible for the costs and

risks to bring the goods to the point

specified in the contract

Seller should ensure that their

forwarding contract mirrors the contract

of sale

Seller is responsible for the export

clearance procedures

Importer is responsible to clear the goods

for import, arrange import customs

formalities, and pay import duty

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285

If the parties intend the seller to bear the

risks and costs of taking the goods from

the terminal to another place then the

DAP term may apply

DAP (Delivered At Place)

New Term - May be used for all transport

modes

Seller delivers the goods when they are placed at

the disposal of the buyer on the arriving means

of transport ready for unloading at the named

place of destination. Parties are advised to

specify as clearly as possible the point within

the agreed place of destination, because risks

transfer at this point from seller to buyer. If the

seller is responsible for clearing the goods,

paying duties etc., consideration should be given

to using the DDP term.

Responsibilities

Seller bears the responsibility and risks

to deliver the goods to the named place

Seller is advised to obtain contracts of

carriage that match the contract of sale

Seller is required to clear the goods for

export

If the seller incurs unloading costs at

place of destination, unless previously

agreed they are not entitled to recover

any such costs

Importer is responsible for effecting

customs clearance, and paying any

customs duties

DDP (Delivered Duty Paid)

The seller is responsible for delivering the goods

to the named place in the country of

importation, including all costs and risks in

bringing the goods to import destination. This

includes duties, taxes and customs formalities.

This term may be used irrespective of the mode

of transport.

FAS (Free Alongside Ship - named

port of shipment)

The seller must place the goods alongside the

ship at the named port. The seller must clear the

goods for export. Suitable only for maritime

transport but NOT for multimodal sea transport

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286

in containers (see Incoterms 2010, ICC

publication 715). This term is typically used for

heavy-lift or bulk cargo.

FOB (Free On Board - named port of

shipment)

The seller must load themselves the goods on

board the vessel nominated by the buyer. Cost

and risk are divided when the goods are actually

on board of the vessel (this rule is new!). The

seller must clear the goods for export. The term

is applicable for maritime and inland waterway

transport only but NOT for multimodal sea

transport in containers (see Incoterms 2010, ICC

publication 715). The buyer must instruct the

seller the details of the vessel and the port where

the goods are to be loaded, and there is no

reference to, or provision for, the use of a carrier

or forwarder. This term has been greatly

misused over the last three decades ever since

Incoterms 1980 explained that FCA should be

used for container shipments.

CFR (Cost and Freight)

The seller must pay the costs and freight

required in bringing the goods to the named port

of destination. The risk of loss or damage is

transferred from seller to buyer when the goods

pass over the ship's rail in the port of shipment.

The seller is required to clear the goods for

export. This term should only be used for sea or

inland waterway transport.

CIF (Cost, Insurance & Freight)

The seller has the same obligations as under

CFR however he is also required to provide

insurance against the buyer's risk of loss or

damage to the goods during transit. The seller is

required to clear the goods for export. This term

should only be used for sea or inland waterway

transport.

Source: http://www.kalgin.net.nz/incoterms.html