Avinash Project on Air Export Origional

8/6/2019 Avinash Project on Air Export Origional

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Indian Institute of Tourism and Travel Management

Summer Project Report

Air export and documentation

At

Image logistic and pvt.ltd.

By

Mr .Avinash kumar singh

Registration

No:_______________of____________________

Program-««««««_PGDM (TT)

Roll No:_______________________



CONTENTS

y GENERAL PROVISION FOR IMPORT AND

EXPORT

y IMPORT PROCEDURES

y ASSESSMENT OF DUTY AND CUSTOMERCLEARENCE

y EXPORT PROCEDURES

y DOCUMENTS REQUARED FOR EXPORT

y OTHER CUSTOM PROCEDURES

y TRANSESHIPMENT OF GOODS

y AIR EXPORT PROCEDURES

y CONCLUSION

y BIBILIOGRAPHY



ACKNOWLAGEMENT

I M

R AVI

NASHK

UM

AR SINGH STUDENT

OFII

TTM

BHUBANESHWAR HEREBY DECLARES THAT THIS

PROJECT IS SUCCESFULY CONSTRUCTED BY MYSELF.

I SOLELY DECLARE THAT THIS PROJECT IS UNDERTAKEN

IN THE SUPERVISION OF -

MR. AMIT CHKRABORTY (DIRECTOR IMAGE LOGISTICSAND PVT LIMITED)

WITH THE HELP OF MY EXTERNAL GUIDE -

MR. AMRENDER KUMAR





CHAPTER -1

COMPONY PROFILE-

ADDRESS- 867/1

VASANTKUNJ MARG

MAHIPALPUR ,NEW DELHI

DIRECTOR MR. AMIT CHAKRBORTYs.The factor that makes ILPL unique and distinct from its peers isits complet openness and its functionality to operate as atransparent organization.

We are enjoying good relationship with our Businesspartners, Airlines & Carriers

Our strength also lies in the fact that we have a global allianceof Networking Partners to complement on our strengths WorldWide.

Import consolidations being a nascent area of expansion, isspearheaded by an experienced and professional team. Withoffices across India complimented with vast network of partners across the globe we manage import logistic intoIndia from any where in the world.

We also offer customized solutions based on specificrequirements.

In the era of speed, reliability and information we extend our



door-to-door products by various modes like Ocean (LCL,FCL), Air, Sea-Air, Land-air,

air charters and various other multi- modal combinations tosuit our customer's needs. Such services are complimented

by door delivering the goods customs cleared. Warehousingand distribution are offered as extended services.Our primary focus has been on Far East, Europe and US TradeLanes.

Information and customer relation being vital in the supplychain each an account manager services account supportedwith state of art IT tools with exceptional reporting facilities for

each leg of the supply chain.

LOGISTIC COMPONY IS FORWARD GOODS FROM THEFROM THE EXPORTER THROUGH ANY SHIPPING LINE OR AIRLINE.(ONLY SCHEDULED AIR LINE)



CHAPTER -2

THE PROJECT

THE PROJECT IS BASED ON THE KNOW HOW OF THE AIR

EXPORT AND AIR IMPORT IN WORLD SCINARIO.THIS

PROJCT ELUCIDATE THE EXPORT IMPORT BUSINESS AS

WELL.

THE PROJECT CONCLUDES THE CONSTRAINTS AND

LIMITATIONS OF THE FRIEGHT FORWORDING INDUSTRY.

ANY LOGISTIC COMPONY IS BASICALY A FORWERDER OF

AIR AND SEA FRIEGHT.

THIS IS VERY NESSECORY TO HAVE THEIR

COUNTERPARTS IN THE TARGET DESTINATION.

LOGISTIC COMPONY COMPRISE THESE ESSENSIOLS-

y AIR EXPORT DEPARTMENTy AIR IMPORT DEPARMENT

y SEA EXPORT DEPARTMENT

y SEA IMPORT DEPARTMENT

y ACCOUNTS AND FINANCE DEPARTMENT

y SALES DEPARTMENT

.



PROCESS OF FORWARDING OF GOODS

ANY LOGISTIC COMPONY FUNCTION IN THE BELOW

FORMATE-

EXPORTER

CHA (CU

STOMH

OU

SE AGENT)

FORWARDER(LOGISTIC COMPANY)

AIRLINE/SHIPPING LINE

OVERSEAS AGENT

IMPOTER





GENERAL PROVISON FOR EXPORT

IMPORT Goods are imported in India or exported from India through sea,air or land. Goods can come through post parcel or as baggagewith passengers. Procedures naturally vary depending on modeof import or export. Procedures discussed in this Chapter areapplicable for imports by sea, air or land, but not as baggage or postal dispatch.

COMPUTERISATION OF CUSTOMS WORK - Work of customsat Delhi airport has been computerized. Work at Mumbai port isalso computerized. Whenever the work is computerized,documents like IGM and Bill of Entry have to be filedelectronically. Procedure in computerized environment has beenspecified in CC, New Delhi PN 22/98 dated 8.5.1998. Guidelinesfor preparing data file for Bill of Entry and shipping bills for Mumbai Customs House has been prescribed vide PN 108/99dated 30-9-1999 and PN 10/2001 dated 30.1.2001.

ENTRY ± µEntry¶ in relation to goods means an entry made in aBill of Entry, Shipping Bill or Bill of Export. It includes (a) label or declaration accompanying the goods which contains description,quantity and value of the goods, in case of postal articles u/s 82(b) Entry to be made in case of goods to be exported (c) Entry inrespect of goods imported which are not accompanied by label or declaration made as per provisions of section 84.

AMENDMENT TO DOCUMENTS - Importer, exporter or 'PersonIn charge' have to submit various documents to customsauthorities like Bill of Entry, Import Manifest, Export Manifest etc.Some times, it may become necessary to amend the documentdue to various reasons like change in classification, clerical



mistake in document, change in unloading / loading plan of vesseletc. In such case, permission to amend these documents have tobe obtained from customs authorities. Such permission can begiven if there are no fraudulent intentions.

In case of bill of entry, shipping bill or bill of export, it can beamended after clearance only on the basis of documentaryevidence which was in existence at the time the goods werecleared, warehoused or exported, and not on basis of anysubsequent document.

Customs Station - Imported goods are permitted to be unloadedonly at specified places. Similarly, goods can be exported onlyfrom specified area. In view of this, definitions of µCustomsStation¶ are important.

Customs area means all area of Customs Station and includesany area where imported goods or export goods are ordinarilykept pending clearance by Customs authorities. Thus, µCustoms Area¶ could include some area even outside the µCustomsStation¶. Customs Station means (a) customs port (b) inland

container depot (c ) customs airport and (d ) land customs station.

Section 7 of Customs Act empowers CBEC (Board) to appoint *Customs ports * Customs airports * Places for inland container depots * Coastal ports. These are appointed by issuing anotification. Section 8 authorizes Commissioner of Customs toapprove proper places in any customs port, customs airport or costal port for unloading and loading of goods or for any class of goods and specify the limits of customs area. Thus, the place

(city / town / village etc.) is approved by CBEC, while exactlocation within that city / town / village is approved byCommissioner of Customs.



Import Procedures

Procedures have to be followed by µperson-in-charge of conveyance¶ as well as the importer.

WHO IS 'PERSON IN CHARGE' - As per section 2(31), 'person incharge' means

(a) In case of vessel - its master

(b) In case of aircraft - its commander or pilot-in-charge

(c) In case of train - its conductor or guard and

(d) In case of vehicle or other conveyance - its driver or other person in charge.

The significance of this definition is -

He is responsible for submitting Import Manifest and ExportManifest He is responsible to ensure that the conveyance comes through

approved route and lands at approved place only.He has to ensure that goods are unloaded after written order, atproper place. Loading also has to be only after permission. He has to ensure that conveyance does not leave withoutwritten order of Customs authorities. He can be penalized for (a) Giving false declaration andstatement (b) shortages or non-accounting of goods inconveyance

Procedure to be followed by the Carrier - The 'person incharge of conveyance' (carrier of goods) has to follow prescribedprocedure.

Arriv al at customs por t/air por t only - Section 29 provides thatperson-in-charge of a vessel or an aircraft entering India shall call



or land at customs port or customs airport only . It can land atother place only if compelled by accident, stress of weather or other unavoidable cause. In such case, he should report tonearest police station or Customs Officer. While arriving by land

route, the vehicle should come by approved route to µlandcustoms station¶ only.

Import Manifest / Report

- Person-in-charge of vessel, aircraft or vehicle has to submitImport Manifest / Report. [Also termed as IGM - Import GeneralManifest]. (In case of a vessel or aircraft, it is called import

manifest, while in case of vehicle, it is called import report.) Theimport manifest in case of vessel or aircraft is required to besubmitted pri or to arrival of a vessel or aircraft. Import report (incase of vehicle) has to be submitted within 12 hours of arrival atthe customs station. If the report / manifest could not besubmitted within prescribed time, person-in-charge or any personspecified as responsible by a notification is liable to penalty up toRs 50,000. Such penalty will not be imposed if the excise officer is satisfied that there was sufficient cause for the delay. IGM can

be submitted electronically through floppy where EDI facility isavailable.

IMPORT MANIFEST IS REQUIRED TO BE SUBMITTEDBEFORE ARRIVAL OF AIRCRAFT OR VESSEL - Section 30(1)of Customs Act provides that Import Manifest should be filedbefore arrival of ship or aircraft. Normally, the Agents submit theImport Manifest before arrival, so that maximum possible

formalities are completed before vessel or aircraft arrives. Thisalso enables importers to file µBill of Entry¶ in advance.



Grant of Entry Inwards by Customs Officer ±

Unloading of cargo can start only after Customs Officer grantµEntry Inwards¶. Such entry inwards can be granted only when

berthing accommodation is granted to a vessel. If there is heavycongestion at port, shipping berth may not be available and insuch case, µEntry Inwards¶ cannot be granted. This date is highlyrelevant for determining rate of customs duty applicable.

C arrier responsi bl e for shor tag es duri ng unload i ng - If the goodsare short landed, the carrier is liable to pay penalty upto twice theamount of duty payable on such short landed goods. It has been

held that tally sheet prepared by Port Trust authorities onunloading of goods is a statutory document and should beaccepted in preference to steamer survey - Scand i a St eamNavi gat i on v. CC - 1988 (33) ELT (CEGAT) followed in re Ind i aSt eamshi p C o. Ltd. - 1992 (57) ELT 510 (GOI).

Procedure by Importer - The importer importing the goodshas to follow prescribed procedures for import by ship/air/road.(There is separate procedure for goods imported as a baggage or

by post.)

Bi ll of Ent r y - This is a very vital and important document whichevery importer has to submit under section 46. The Bill of Entryshould be in prescribed form. The standard size of Bill of Entry is16" × 13". However, for computerization purposes, 15" × 12" sizeis permitted. (Mumbai Customs Public Notice No. 142/93 dated 3-11-93).

Bill of Entry should be submitted in quadruplicate ± original andduplicate for customs, triplicate for the importer and fourth copy ismeant for bank for making remittances.

Under EDI system, Bill of Entry is actually printed on computer intriplicate only after µout of charge¶ order is given. Duplicate copy is



given to importer.

Types of Bill of Entry - Bills of Entry should be of one of threetypes. Out of these, two types are for clearance from customs

while third is for clearance from warehouse.

BILL OF ENTRY FOR HOME CONSUMPTION - This form,called µBill of Entry for Home Consumption¶, is used when theimported goods are to be cleared on payment of full duty. H ome consumpt i on means use w i thi n Ind i a. It is white colored andhence often called µwhite bill of entry¶.

BILL OF ENTRY FOR WAREHOUSING - If the imported goods

are not required immediately, importer may like to store the goodsin a warehouse without payment of duty under a bond and thenclear from warehouse when required on payment of duty. This willenable him to defer payment of customs duty till goods areactually required by him. This Bill of Entry is printed on yellowpaper and often called µYellow Bill of Entry¶. It is also called µIntoBond Bill of Entry¶ as bond is executed for transfer of goods inwarehouse without payment of duty.

BILL OF ENTRY FOR EX-BOND CLEARANCE - The thirdtype is for Ex-Bond clearance. This is used for clearance from thewarehouse on payment of duty and is printed on green paper.The goods are classified and value is assessed at the time of clearance from customs port. Thus, value and classification is notrequired to be determined in this bill of entry. The columns in thisbill of entry are similar to other bills of entry. However, declarationby importer is not required as the goods are already assessed.

RATE OF DUTY FOR CLEARANCE FROM WAREHOUSE - Itmay be noted that rate of duty applicable is as prevalent on dateof removal f r om warehouse. Thus, if rate has changed after goods are cleared from customs port, customs duty as assessedon yellow bill of entry and as paid on green bill of entry will not be



same.

Mention of BIN on Bill of Entry ± A BIN (Business IdentificationNumber) is allotted to each importer and exporter w.e.f. 1.4.2001.

It is a 15 digit code based on PAN of Income Tax (PAN is a 10digit code). [Earlier an EC (Import Export code) number issued byDGFT was required to be mentioned on Bill of Entry].

F i l i ng of Bi ll of Ent r y - Normally, Bill of Entry is filed by CHA onbehalf of the importer. Customs work at some ports has beencomputerized. In that case, the Bill of Entry has to be filedelectronically, i.e. through Customs EDI system throughcomputerization of work. Procedure for the same has beenprescribed vides Bill of Entry (Electronic Declaration) Regulations,1995.

Documents to be submitted by Importer -Documents required by customs authorities are required to besubmitted to enable them to

(a) check the goods

(b) decide value and classification of goods and

(c ) to ensure that the import is legally permitted. The documentsthat are essent i ally required are :

(i) Invoice

(ii) Packing List

(iii) Bill of Lading / Delivery Order

(iv) GATT declaration form duly filled in



(v) Importers / CHAs declaration duly signed

(vi) Import License or attested photocopy when clearance isunder license

(vii) Letter of Credit / Bank Draft wherever necessary

(vii) Insurance memo or insurance policy

(viii) Industrial License if required

(ix) Certificate of country of origin, if preferential rate is claimed.

(x) Technical literature.

(xi) Test report in case of chemicals

(xii) Advance License / DEPB in original, where applicable

(xiii) Split up of value of spares, components and machinery

(xiv) No commission declaration. ± A declaration in prescribedform about correctness of information should be submitted. ±.

The Noting is now done electronically in large ports, while it isdone manually in small ports. Thoka Number (Serial Number) isgiven while noting the Bill of Entry.

Electronic submission under EDI system ±

Where EDI system is implemented, formal submission of Bill of Entry is not required, as it is generated in computer system.

Importer should submit declaration in electronic format to µServiceCentre¶. A signed paper copy of declaration for non-repudiabilityshould be submitted. Bill of Entry number is generated by systemwhich is endorsed on printed check list. Original documents are tobe submitted only at the stage of examination.



Assessment of Duty and Clearance

The documents submitted by importer are checked and assessedby Customs authorities and then goods are cleared. Section 2(2)

defines µassessment¶ as follows ± µAssessment¶ includesprovisional assessment, reassessment and any order of assessment in which the duty assessed is Nil. Thus, µassessment¶includes µNil¶ assessment.

Noting of Bill of Entry ±

Bill of Entry submitted by importer or Customs House Agent iscross-checked with µImport Manifest¶ submitted by person incharge of vessel / carrier. It is noted if the description tallies.µNoting¶ really means taking on record by customs officer. Thisdate is relevant for determining rate of customs duty. Thokanumber (serial number) is given in the import section. Otherwise,it is returned for clarifications. In case of EDI system, noting isdone by the system itself which also generates bill of entrynumber.

Date of presentation of bill of entry is highly relevant and the rateof duty as applicable on this date will be considered for calculating the duty payable. Bill of Entry is accepted only after proper scrutiny vi s-a-vi s import manifest and various declarationsgiven in bill of entry and attached documents like invoice, bill of lading etc. If such documents are not attached, the authoritiescan refuse to accept the Bill of Entry, and hence submission of such incomplete Bill of Entry cannot be taken as date of presentation of Bill of Entry ±

Prior Entry of Bill of Entry ±

After the goods are unloaded, these have to be cleared withinstipulated time - usually three working days. If these are not soremoved, demurrage is charged by port trust/airport authorities,



which is very high. Hence, importer wants to complete as manyformalities as possible before ship arrives. Proviso to Section46(3) of Customs Act allows importer to present bill of entry upto30 days before ex pect ed dat e of arriv al of vessel. In such case,

duty will be payable at the rate applicable on the date on whichµEntry Inward¶ is granted to vessel and not the date of presentation of Bill of Entry, but r at e of ex chang e w i ll be as prev al ent on dat e of submi ssi on of bi ll of ent r y . ±

Assessment of Customs duty ±

Section 17 provides that assessment of goods will be made after Bill of Entry is filed. Date stamp of receipt is put on the µBill of Entry¶ and then it is sent to appraising department either manuallyor electronically

There are various Appraising groups for different Chapter headings. Each group is under an Assistant/DeputyCommissioner. Group consists of µExaminers¶ and µAppraisers¶.

APPRAISING THE GOODS ±

Appraiser has to

(a) correctly classify the goods

(b) decide the Value for purpose of Customs duty

(c ) find out rate of duty applicable as per any exemptionnotification and

(d ) Verify that goods are not imported in violation of any law. Hecan call for any further documents that may be required for assessment. If he is of the opinion that goods have to beexamined for appraisal, he will issue an examination order,usually on the reverse of Bill of Entry. If such order is issued, theBill of Entry is presented to appraising staff at docks / air cargo



complexes, where the goods are examined in presence of importer¶s representative. Assessment is finalized after gettingthe report of examination. ±

VALUATION OF GOODS - As per rule 10 of CustomsValuation Rules, the importer has to file declaration about full'value' of goods. If the assessing officer has doubts about thetruth and accuracy of 'value' as declared, he can ask importer tosubmit further information, details and documents. If the doubtpersists, the assessing officer can reject the value declared byimporter.If the importer requests, the assessing officer has to givereasons for doubting the value declared by importer. If the value

declared by importer is rejected, the assessing officer can valueimported goods on other basis e.g. value of identical goods, valueof similar goods etc. as provided in Customs Valuation Rules. Assessing Officer should not arbitrarily reject the declared valueand increase the assessable value. He should follow due processof law and issue appealable order.

APPROVAL OF ASSESSMENT ±

The assessment has to be approved by Assistant Commissioner,if the value is more than Rs one lakh. (in cases covered under µfast track clearance for imports¶, appraiser is also authorised toapprove valuation). After the approval, duty payable is typed by a³pin-point typewriter´ so that it cannot be tampered with., Assessing Officer should sign in full in Bill of Entry followed by hisname, preferably by rubber stamp.

EDI ASSESSMENT ±

In the EDI system, the cargo declaration is transferred toassessing officer in the groups electronically. Processing is doneon the screen itself. All calculations are done by the system itself.



If assessing officer needs clarification, he can raise a query. Thequery is printed at service centre and importer replies throughservice centre. Facility of tale-enquiry about status of documentsis provided in major customs stations. Under EDI, normally,

documents are inspected only after assessment. After assessment, copy of Bill of Entry is printed at service centre. FinalBill of Entry is printed only after µOut of Charge¶ order is given bycustoms officer. ±

PAYMENT OF CUSTOMS DUTY - After assessment of duty,necessary duty is paid. Regular importers and Custom House Agents keep current account with Customs department. The duty

can be debited to such current account, or it can be paid incash/DD through TR-6 challan in designated banks.

After payment of duty, if goods were already examined, deliveryof goods can be taken from custodians (port trust) after payingtheir dues. If goods were not examined before assessment, thesehave to be submitted for examination in import shed to theexamining staff. After shed appraiser gives µout of charge¶ order,delivery of goods can be taken from custodian.

First and second system of assessment - There are twosystems of assessment. Section 17(2) provides for assessmentafter examination of goods and section 17(4) provides for assessment on basis of documents, followed by inspection andtesting of goods.

³F ir st appr ai sement syst em´ or 'f ir st check pr oc edure' is followedif the appraiser is not able to make assessment on the basis of documents submitted and deems that inspection is necessary.Goods are examined first and then these are assessed. Thismethod is followed only if assessment is not possible on basis of documents. - - The importer himself may also request 'first checkprocedure', if he cannot give all required details regardingdescription / value of goods. He has to make request for first



check examination at the time of filing of Bill of Entry or at dataentry stage in case of EDI. He has to give reason for seeking firstappraisement. The examination order is recorded on Bill of Entryand then returned to importer / CHA. It is then presented to import

shed for examination. The shed appraiser / Dock examiner examines the goods as per examination order and records hisfindings. If samples are required, they are taken out. In case of EDI system, the report of examination is given in the computer itself. The goods are then assessed to duty by appraiser. - In³S econd A ppr ai sement Syst em´ or 'second check pr oc edur e',which is normally followed, assessment is done on basis of documents and then goods are examined. Such examination is

not mandatory. It is done on selective basis on the basis of µriskassessment¶ or specific intelligence report. Section 17(4) of Customs Act specifically provides that if initially assessment isdone on basis of documents, re-assessment can be done after examination or testing of goods or otherwise, if it is foundsubsequent to examination or testing or otherwise, that anystatement made on Bill of Entry or any information supplied is nottrue in respect of matter relevant to assessment of duty.

First appraisement is generally carried out in following cases - * If complete documents are not submitted * Goods are to be testedfor correct classification * Goods are re-imported * Goods aredamaged or deteriorated and abatement is claimed * Goods areabandoned and remission of duty is applied for * When goods areprovisionally assessed * When importer himself requests for examination of goods before payment of duty.

EXAMINATION OF GOODS ±

Examiners carry out physical examination and quantitativechecking like weighing, measuring etc. Selected packages areopened and examined on sample basis in µCustoms Examination



Yard¶. Examination report is prepared by the examiner.

Acc el er at ed C l ear anc e of Impor ts and E x por ts Scheme ( AC S) ±Finance Minister, in his budget speech on 28-2-2003, had

announced a µself assessment scheme¶ for importers andexporters. As per the scheme, importer will himself determineclassification of goods including claim for exemption benefits.Computer System will calculate the duty based on his declaration.Physical inspection of imported goods will be done by risk-assessment and management techniques on a computer basedsystem and not on the orders of customs examining staff. Audit of import documents will not be by existing system of concurrent

audit but will be done by post-clearance audit, as prevalent indeveloped countries.

Subsequently, a Accelerated Clearance of Import and ExportScheme (ACS) has been announced vide MF(DR) circular No.30/2003-Cus dated 4-4-2003. The scheme is announced throughadministrative instructions, without making any change instatutory provisions. Hence, the scheme is not same as µself removal¶ under Central Excise. Presently, the scheme is

introduced on trial basis at Air Customs, Sahar (Mumbai), ICD,New Delhi and Chennai Sea Customs.

In case of imports, the scheme will be open to all status holdersunder EXIM policy, Central and State Government PSUs andother importers who have been importing for at least two yearsand have filed at least 25 Bills of Entry in preceding year. - - Incase of exports, the scheme will be open to all status holdersunder EXIM policy, EOU/STP/EHTP units whose goods havebeen sealed in presence of customs/excise officers, Central andState Government PSUs, manufacturer-exporters who have beenexporting for at least two years and have filed at least 25Shipping Bills in preceding year and bulk exporters. - - Certainsensitive items have been excluded from the provisions.



Importer/exporter intending to avail this facility has to makeapplication to Commissioner. The clearances will be subject topost clearance audit.

Provisional Assessment ±

Section 18 of Customs Act, 1962 provide that provisionalassessment can be done in following cases

(a) when Customs Officer is satisfied that importer or exporter isunable to produce document or furnish information required for assessment

(b) it is deemed necessary to carry out chemical or other tests of goods

(c ) When importer/exporter has produced all documents, butCustoms Officer still deems it necessary to make further enquiry.In such cases, assessment is done on provisional basis. Theimporter/exporter has to furnish guarantee/security as required byCustoms Officer for payment of difference if any. Goods can becleared after payment of duty provisionally assessed and after providing the security. After final assessment, difference is paidby importer or refunded to him as the case may be. If theimported goods were warehoused after provisional assessment,the Customs Officer may require importer to execute a bond for twice the difference in duty, if duty finally assessed is higher [section 18(2)(a)]. The bond is called as 'P D Bond' (ProvisionalDuty Bond). The bond is with security or surety. Bank guaranteecan also be given as a security.



Checking of duty drawback / license documents - Documents in respect of Duty Entitlement Pass Book (DEPB),advance license, duty drawback etc. will be checked.

Execution of bond and payment of duty ±

Once the duty is assessed, the bill of entry is returned toimporter. The Bill of Entry should be presented to comptist for calculation and pinpointing of the duty. If bond has to beexecuted, it will be taken in bond section.

Payment of duty ±

If goods are to be removed to a warehouse, duty payment is notrequired. The goods can be taken to a warehouse under bond,without payment of duty. However, if goods are to be removed for home consumption, payment of customs duty is required. CHA or the importer can take it for payment of customs duty. Largeimporters and CHA have P.D. accounts with customs. Duty canbe paid either in cash or through P.D. account. P. D. accountmeans provisional duty account. This is a current account, similar

to PLA in central excise. The importer or CHA pays lumpsumamount in the account and gets credit on the amount paid. Hecan pay customs duty by debiting the amount in P.D. (ProvisionalDuty) account. If the importer does not have an account, he canpay duty by cash using TR-6 challan. Of course, payment throughPD account is very convenient and quick.

The duty should be paid within five working days (i.e. within fivedays excluding holidays) after the µBill of Entry¶ is returned to the

importer for payment of duty. [section 47(2)]. (Till 11-5-2002, theperiod allowed was only 2 days).

Int erest for lat e payment - If duty is not paid within 5 working daysas aforesaid, interest is payable. Such interest can be between10% to 36% as may be notified by Central Government. Di sposal



i f goods are not cl eared w i thi n 30 days - As per section 48 of Customs Act, goods must be cleared within 30 days after unloading. Customs Officer can grant extension. Otherwise,goods can be sold after giving notice to importer. However,

animals, perishable goods and hazardous goods can be sold anytime - even before 30 days. Arms & ammunition can be sold onlywith permission of Central Government.

Out of Customs Charge Order ±

After goods are examined, it is verified that import is notprohibited and after customs duty is paid, Customs Officer willissue µOut of Customs Charge¶ order under section 47. Goodscan be cleared from customs area only on receipt of such order.This is an µadjudicating order¶ within the meaning of Customs Act,even if it is passed by Appraiser and not by AssistantCommissioner.

Demurrage if goods not cleared - Heavy demurrage ispayable if goods are not cleared from port within three days.

Import of software through data communication ±

Import of software through data communication / tele-communication is permitted. Since such imports are not availablefor physical verification, proper accountal in books should bemaintained. Unit intending to import software through data link isrequired to inform estimated annual requirement to DevelopmentCommissioner of EOU / Director of STP. This should be approvedby him. [what for ?]. After import of software through internet,written information should be submitted to Director of STP /Development Commissioner of EOU and importer shall get acertificate. This certificate should be submitted to Assistant / DyCommissioner of Customs within 48 hours, along with Bill of Entryand certificate from Development Commissioner of EOU /Director of STP. He will issue 'out of charge' order. The



documents such as invoice etc. will be routed through bank. -MF(DR) circular No. 58/2000-Cus dated 10-7-2000.

Relevant Date for Rate and Valuation of Customs Duty

-Section 15 of Customs Act prescribes that rate of duty and tariff valuation applicable to imported goods shall be the rate andvaluation in force at one of the following dates. (a) if the goodsare entered for home consumption, the date on which bill of entryis presented (b) in case of warehoused goods, when Bill of Entryfor home consumption is presented u/s 68 for clearance fromwarehouse and (c ) in other cases, date of payment of duty.

CONCEPT OF TERRITORIAL WATERS NOT RELEVANT ±

It may be noted that concept of µ date of entering into territorialwaters¶ is not relevant for purposes of determination of rate of customs duty.

Export Procedures

Procedures have to be followed by (a) µperson-in-charge of conveyance¶ and (b) the exporter. The procedures are similar toprocedures for import, of course, in reverse direction.

NO STOPPAGE OF EXPORT CONSIGNMENT ±

Exports are vital for our economy. Any stoppage in export

consignment means loss of export orders to the exporter and lossof foreign exchange to the country. Hence, it has been providedthat movement of export consignment will not be interrupted andno export consignment shall be withheld for any reasonwhatsoever. In case of any doubt, customs authorities may askfor an undertaking that the export is on sole responsibility of the



exporter. [Highlights of EXIM policy 1997-2002 as amended on13.4.1998].

Procedures by person in charge of conveyance ± Any

new airline, shipping line, steamer agent should be registered inCustoms Systems for electronic processing of shipping bills etc.

The µperson in charge of conveyance¶ has to follow prescribedprocedures.

Entry Outward - The vessel should be granted µEntry Outward¶.Loading can start only after entry outward is granted. Steamer Agents can file µapplication for entry outwards¶ 14 days in

advance so that intending exporters can start submittingµShipping Bills¶. This ensures that formalities are completed asquickly as possible and loading in ship starts quickly.

LOADING WITH PERMISSION - Export goods can be loadedonly after Shipping Bill or Bill of Export, duly passed by CustomsOfficer is handed over by Exporter to the person-in-charge of conveyance. In case of baggage and mail bags, shipping bill is

not necessary, but permission of Customs Officer is required(section 40).

Export Manifest ±

As per section 41, an Export Manifest/Export Report inprescribed form should be submitted before departure. [Thereport is popularly called as µExport General Manifest¶ - EGM].The details required are similar to import manifest. Such

manifest/report can be amended or supplemented withpermission, if there was no fraudulent intention. Such reportshould be declared as true by the person-in-charge signing theexport manifest. This report is not required if the conveyance iscarrying only luggage of occupants.



Procedures to be followed by Exporter ± Exportprocedures have been summarized in Chapter 3 Part II of CBE&C¶s Customs Manual, 2001.

Every exporter should take following initial steps -±

1. Obtain BIN (Business Identification Number) from DGFT. Itis a PAN based number

2. Open current account with designated bank for credit of dutydrawback claims

3. Register licenses / advance license / DEPB etc. at thecustoms station, if exports are under Export PromotionSchemes

Exporter has to submit µshipping bill¶ for export by sea or air andµbill of export¶ for export by road. Goods have to be assessed for duty; even if no duty is payable for most of exports, as µNil Duty¶assessment is also an assessment.

Shipping Bill to be submitted by Exporter ±

Shipping Bill and Bill of Export Regulations prescribe form of shipping bills. It should be submitted in quadruplicate. If drawbackclaim is to be made, one additional copy should be submitted.There are five forms : (a) Shipping Bill for export of goods under claim for duty drawback - these should be in Green colour (b)Shipping Bill for export of dutiable goods - this should be yellowcolour (c ) shipping bill for export of duty free goods - it should bewhite colour (d ) shipping bill for export of duty free goods ex-bond- i.e. from bonded store room - it should be pink colour (e)

Shipping Bill for export under DEPB scheme - Blue colour.

The shipping bill form requires details like name of exporter,consignee, Invoice Number, details of packing, description of goods, quantity, FOB Value etc. Appropriate form of shipping bill



should be used.

Relevant documents i.e. copies of packing list, invoices, exportcontract, letter of credit etc. are also to be submitted. In case of

excisable goods, from ARE-1 prepared at the time of clearancefrom factory should also be submitted.

Customs authorities give serial number (called ' Thoka Number ')to shipping bill, when it is presented.

Excise formalities at the time of Export ±

If the goods are cleared by manufacturer for export, the goods

are accompanied by ARE-1 (earlier AR-4). This form should besubmitted to customs authorities. The Customs Officer certifiesthat the goods under this form have indeed been exported. Thisform has then to be submitted to Maritime Commissioner for obtaining µproof of export¶. The bond executed by Manufacturer-exporter with excise authorities is released only when µproof of export¶ is accepted by Maritime Commissioner or AssistantCommissioner, where bond was executed.

Duty drawback formalities ±

If the exporter intends to claim duty drawback on his exports, hehas to follow prescribed procedures and submit necessarypapers. The procedures are discussed in the chapter on µExportIncentives'. He has to make endorsement of shipping bill thatclaim for duty drawback is being made. If he fails to do so due togenuine reasons, Commissioner of Customs can grant exemption

from this provision. G R / SDF / SOFTEX For m und er FEM A -Reserve Bank of India has prescribed GR / SDF form under FEMA. ³G R´ stands for µGuaranteed Receipt¶ form, while SDFstands for 'Statutory Declaration Form¶). SDF form is to be usedwhere shipping bills are processed electronically in customshouse, while GR form is used when shipping bills are processed



manually in customs house.

Other documents required for export ±

Exporter also has to prepare other documents like

(a) Four copies of Commercial Invoice

(b) Four copies of Packing List

(c ) Certificate of Origin or pre-shipment inspection where required

(d ) Insurance policy.

(e) Letter of Credit

(f) Declaration of Value

(g) Excise ARE-1/ARE-2 form as applicable

(h) GR / SDF form prescribed by RBI in duplicate

(i) Letter showing BIN Number.

RCMC certificate from Export Promotion Council -

Various Export Promotion Councils have been set up to promoteand develop exports. (e.g. Engineering Export Promotion Council, Apparel Export Promotion Council, etc.) Exporter has to becomemember of the concerned Export Promotion Council and obtainRCMC - Registration cum membership Certificate.

Check in customs ±

Document submitted is processed by customs authorities, and



following are checked -

Value and classification of goods under drawback schedule incase of drawback shipping bills Export duty / cess if applicable Advance License shipping bills are checked to ensure thatdescription in invoice and final product specified in AdvanceLicense matches. If necessary, samples may be drawn andassessment may be done after visual inspection or testingExportability of goods under EXIM policy and other laws - Someexports are totally prohibited under various Acts e.g. itemsrestricted or prohibited under Foreign Trade (Regulation) Act;

antiques; art treasures; Arms; narcotics etc. Some items liketea, coffee and coir products can be exported only againstauthorization/license under respective Acts.

Examination of goods before export ±

After shipping bill is passed by export department, the goods arepresented to shed appraiser (exports) in dock for examination.Goods will be examined by examiner. This inspection is

necessary (a) to ensure that prohibited goods are not exported(b) goods tally with description and invoice (c ) duty drawback,where applicable, is correctly claimed.

Let Export Order by Customs Authorities ±

Customs Officer will verify the contents and after he is satisfiedthat goods are not prohibited for exports and that export duty, if applicable is paid, will permit clearance. (section 51) by giving µlet

ship¶ or µlet export¶ order.

GR-1, ARE-1, octroi papers, quota certification for export etc. arealso signed. Exporter¶s copy of shipping Bill, GR-1, ARE-1 etc.duly certified are handed over to exporter or CHA. Drawbackclaims papers are also processed. - C hapt er 3 Par a 43 and 60 of



CBE&C¶ s C ustoms Manual, 2001.

Processing under EDI system ±

Under EDI system, declarations in prescribed form are to be filedthrough µService Centre¶ of customs. After verification, shippingbill number is generated by the system, which is endorsed onprinted checklist generated for verification of data. Goods areinspected at docks on the basis of printed check list. Alldocuments are submitted to Customs Officer along with checklist.If goods and documents are found in order, µlet export¶ order is

issued. Then two copies of Shipping Bill are generated ± onecustoms and other exporter¶s copy. Exporter¶s copy is generatedonly after EGM (Export General Manifest) is submitted byshipping agent. These are signed by CHA and customs officer and then by Appraiser. SDF, ARE-1, octroi papers, quotacertification for export etc. are also signed. Exporter¶s copy of Shipping Bill, SDF, ARE-1 etc. duly signed are handed over toexporter or CHA.

.Conveyance to leave on written order ±

The vessel or aircraft which has brought imported goods or which carry export goods cannot leave that customs stationunless a written order is given by Customs Officer. Such order isgiven only after (a) export manifest is submitted (b) shipping billsor bills of export, bills of transshipment etc. are submitted (c )duties on stores consumed are paid or payment of the same is

secured (d ) no penalty is livable (e) export duty, if applicable, ispaid. - - Such permission is not required if the conveyance iscarrying only luggage of occupants.



Other Customs Procedures

Besides the aforesaid procedures, various other procedures havebeen prescribed. These are mainly to be followed by the personin charge of conveyance.

Boat N otes ±

If the vessel has to unload only a small cargo, it may not spendtime in having berth in the port. If the small cargo is to be sent toshore, it may be loaded in a small boat and sent to shore. As per

section 35, such small boat must be accompanied by a µBoatNote¶. Boat Notes Regulations provide that such Boat Notes willbe issued by Customs Officer. It will be maintained in duplicateand should be serially numbered. Boat Note should be inprescribed form.

In case of export, if small export cargo is to be loaded in shipthrough small boat, no Boat Note is required if the cargo isaccompanied by the µShipping Bill¶, otherwise, Boat Note isrequired. Boat Note is also required for transshipment of cargo,i.e. transfer from one ship to another or for re-shipment.

Tr ansit G oods ±

Section 53 provide that any goods imported in any conveyancewill be allowed to remain on the conveyance and to be transitedwithout payment of customs duty, to any place out of India or any

customs station. However, all these goods must be mentioned inimport manifest or import report submitted by person in charge of conveyance. Such goods should not be µprohibited goods¶ under section 11 of Customs Act. [The conveyance may be vehicle, shipor aircraft]. After transit, the goods may go to another customsstation.



On arrival at customs station, the goods will be liable to customsduty as if it is first importation in India. - section 55.

Transshipment of Goods ±

Goods imported in any customs station can be transshippedwithout payment of duty, u/s 54 of Customs Act. Transshipmentmeans transfer from one conveyance to another. [Theconveyance may be vehicle, ship or aircraft]. Such transshipmentmay be to any major port or airport in India. The goods can betransshipped to any other customs station in India if customs

officer is satisfied that the goods are bonaf i d e intended for transshipment to any customs station. The facility is available atall customs ports and Inland Container Depots (ICDs). Goods tobe transshipped must be specified in Import Manifest or Importreport and a µBill of Transshipment¶ should be submitted toCustoms Officer. In case of goods being transshipped under aninternational treaty or bilateral agreement between Governmentof India and Government of a foreign country, a Declaration of

Transshipment shall be submitted instead of Bill of Transshipment. Such goods should not be µprohibited goods¶under section 11 of Customs Act. The goods should be sealedduring transshipment by customs officer. A bond has to beexecuted for the purpose. After execution of bond, a certificatefrom customs officer has to be submitted within one month thatgoods have been properly transferred. [Goods Imported(Conditions of Transshipment) Regulations, 1995]. On arrival at

customs station, they will be liable to customs duty as if it is firstimportation in India. ±

TRANSIT AND TRANSHIP - Distinction between transit andtransshipment is that in 'transit' goods continue to be on same



vessel, while in transshipment, goods are transferred to another vessel / vehicle. Hence, procedures are also different.

Coastal goods ±

Coastal goods means goods transported from one port in India toanother port in India, but do not i nclud e i mpor t ed goods. Thus,coastal goods mean goods taken by ship from one Indian port toanother. No export or import is involved, but control is necessaryto ensure that coastal goods are not diverted illegally for export.

LOADING OF COASTAL GOODS ±

The Consignor should submit bill of coastal goods to CustomsOfficer (section 93). Form of the bill has been prescribed. Thesewill be loaded by master of vessel only after µbill of coastal goods¶is passed (section 93). Master of Vessel will carry an µAdviceBook¶ where entries will be made by Customs Officer. ThisµAdvice Book¶ has to be presented for inspection of CustomsOfficers, if called for. After loading, the vessel can leave only after obtaining written order from Customs Officer. As per notificationNo 15/98-NT dated 27.2.1998, exemption has been granted for delivery of 'Advice Book' at each port of call. However, the'Advice Book' will have to be submitted for inspection on board of vessel, when called for.

UNLOADING OF

COASTAL GOODS ±

Unloading of coastal goods should be done only at Customs Portor coastal port appointed by CBEC under section 7 of Customs Act. On arrival, all bills relating to goods which are to be unloadedwill be delivered to Customs Officer. Unloading can be done onlyafter obtaining permission from Customs Officer. Customs Officer



can inspect goods and ask for questions and documents relatingto goods. Goods will be unloaded at approved place under supervision of Customs Officer. The following documents are commonly used in exporting; butwhich of them are necessary in a particular transaction dependson the requirements of the U.S. government and the governmentof the importing country.

Shipper¶s Export Declaration (SED or form 7525-V)

The SED is available through the Government Printing Office anda number of other commercial outlets. It can be electronically filed

using AESDirect.

A NAFTA Certificate of Origin is needed for shipments toMexico and Canada. This tool can help you through the processof filing this certification.

CE Mark requirements must be met to market goods in theEuropean Union. Once a manufacturer has earned a CE mark for its product, it may affix the CE Mark to its product, and then theproduct may be marketed throughout the EU without having toundergo further modifications in each EU member country.

Export license - a U.S. Government document required for ³dualuse´ exports (commercial items which could have militaryapplications), or exports to embargoed countries. Most exporttransactions do not require specific approval from the U.S.Government. Before shipping your product, make sure you

understand the concept of dual use and the basic export controlregulations.

Commercial invoice - a bill for the goods from the seller to thebuyer. These invoices are often used by governments todetermine the true value of goods when assessing customs



duties. Governments that use the commercial invoice to controlimports will often specify its form, content, number of copies,language to be used, and other characteristics.

Certificate of origin - The Certificate of Origin is only required bysome countries. In many cases, a statement of origin printed oncompany letterhead will suffice. Special certificates are neededfor countries with which the United States has special tradeagreements, such as Mexico, Canada and Israel. Moreinformation about filling out these special certificates is availablefrom the TIC.

Bill of lading is a contract between the owner of the goods andthe carrier (as with domestic shipments). For vessels, there aretwo types: a straight bill of lading which is non-negotiable and anegotiable or shipper¶s order bill of lading. The latter can bebought, sold, or traded while the goods are in transit. Thecustomer usually needs an original as proof of ownership to takepossession of the goods.

Insurance certificate - is used to assure the consignee that

insurance will cover the loss of or damage to the cargo duringtransit. These can be obtained from your freight forwarder.

Export packing list - considerably more detailed and informativethan a standard domestic packing list, it itemizes the material ineach individual package and indicates the type of package, suchas a box, crate, drum, or carton. Both commercial stationers andfreight forwarders carry packing list forms.

Import License ± Import licenses are the responsibility of theimporter. Including a copy with the rest of your documentation,however, can sometimes help avoid problems with customs in thedestination country.



Consular invoice - Required in some countries, it describes theshipment of goods and shows information such as the consignor,consignee, and value of the shipment. If required, copies areavailable from the destination country¶s Embassy or Consulate in

the U.S.

Air way bills - Air freight shipments are handled by air waybills, which can never be made in negotiable form.

Inspection certification is required by some purchasers andcountries in order to attest to the specifications of the goodsshipped. This is usually performed by a third party and often

obtained from independent testing organizations. A dock receipt and a warehouse receipt are used to transfer accountability when the export item is moved by the domesticcarrier to the port of embarkation and left with the ship line for export.

A destination control statement appears on the commercialinvoice, and ocean or air waybill of lading to notify the carrier and

all foreign parties that the item can be exported only to certaindestinations.

Documentations



The documents used in mushrooms import business with us areimportant. There are three basic documents you must

understand and use correctly: air waybill or bill of lading,commercial invoice and packing list.

Air waybill

The air waybill is used for the air shipment which serves as:

y documentary evidence of the conclusion of a contract of

carriagey proof of receipt of the goods for shipmenty an invoice for the freighty a certificate of insurancey guide to airline staff for the handling, dispatch and delivery

of the consignment.

The air waybill is usually completed by our freight forwarder. Thedocument consists of three originals and nine copies. The first

original is intended for the carrier and is signed by our state-owned export agent; the second original, the consignee's copy,is signed by our export agent and accompanies the goods; thethird original is signed by the carrier and is handed to our exportagent as a receipt for the goods after they have been acceptedfor carriage.

Since it is sent with the air shipment by the same plane, the air

waybill is usually associated with wire transfer advancepayment. With air waybill number given, you can track theshipment online. We usually sent you Air Waybill 2 originals.



Bill of lading

A bill of lading is used for the sea shipment. It is:

A certificate of ownership to the goods.

As such, it must be produced at the port of final destination bythe importer (you) in order to claim the goods. As a document of title, the bill of lading is also a negotiable document and you maysell the goods by endorsing or handing over the bill of lading toanother authorized party, even while the goods are still at sea. Although negotiable bills of lading are in common use, some

countries do not allow them or make it difficult to be used. So,you have to be sure that negotiable B/L is accepted in your country. Otherwise, non-negotiable B/L is issued.

A contract between the shipper (our export agent and us) andthe shipping line which defines in detail the terms for thecarriage of goods from the sea port (Guangzhou) to your destination sea port.

A formal, signed receipt for a specified number of packs whichis given to the export agent by the shipping line when theshipping line receives the consignment. If the cargo isapparently in good order and properly packed when received bythe shipping line, the bill of lading which the shipping line issues,is termed 'clean'. The ship-owner thus admits full liability for thecargo described in the bill. In most cases, clean bill of lading isrequired.

Clean bill of lading is usually associated with letter of credittransaction. With the B/L number or container number given, youcan track the shipment online. Click here to see an example.Clean B/L in 2 originals are sent to you.



Commercial invoice

The commercial invoice indicates the quantity and description of the goods, the loading port and destination port, the mode of

transportation, the country of origin, the price per unit and totalcost of the goods. The commercial invoice is provided by our export agent. Click here to see an example. Commercial invoice3 originals are sent to you.

Packing list

The packing list indicates the number of packs involved, the

contents of each pack and the individual weights anddimensions. This list enables you to check that the correctnumber of units has been received. Customs authorities canalso easily identify a specific pack they wish to inspect. Thecommercial invoice is provided by our export agent. Packing list3 originals are sent to you.

Apart from these three documents, to some countries, there areseveral other documents that are often used.

Performa Invoice

After receiving a quotation from us, the importer (you) mayrequest a Performa invoice which is a preliminary invoice and isprepared prior to shipment or even before a firm order has beenreceived. The purpose is to enable you to obtain an importlicense (if required) or a letter of credit. In some countries,Performa invoice is a required document for customs clearance.The Performa invoice is provided by our export agent.

Fumigation certificate



Fumigation certificate is required as proof that the packingmaterials e.g. wooden crates, wood, wool etc), have beenfumigated or sterilized. Certificates contain details such as

purpose of treatment, articles concerned, temperature rangeused, chemicals and concentration used etc.

In our case, we often use pallets to bundle the packs of binoculars and we find it's the best measure taken for protectingbinoculars from being out of collimation. We'll ask ChineseCommodity Inspection Bureau (CCIB) to apply the treatment tothe wood pallets to ensure that the pallets used are free of insect

or fungus infestation.

Please note that in some countries like Australia, fumigationtreatment is not required for air shipment, but required for seashipment. So, please check with your customs broker or thelocal customs service.The fumigation certificate is issued by CCIB and costs USD90$/shipment.

Certificate of Origin, GSP certificate or Origin (Form A)

In some countries, optical instruments claiming preferentialtreatment in respect of tariffs require proof of origin. Certificate of origin is provided by CCIB or CCPIT, GSP certificate of origin isprovided by CCIB. Click here to see an example. GSP form A in1 original and 1 copy (optional) are sent to you.

Phytosanitary certificate

Issued by CCIB, optional. 1 original and 1 copy are sent to thecustomer.



AIR EXPORT PROCEDURES

y The Shipping Bill along with other documents are with the

Admission Clerk of Customs at the first floor of old Airport in

case of manual processing. In case of EDI, Export

Annexure-I along with invoice and packing list are to be

presented to the Service Centre, situated opposite to import

heavy cargo shed. Once the data is fed in the system, a

check list is generated and the same is given to

exporter/CHA for verification and signature. After verification

and signature Shipping Bill No. is generated and passed for

assessment, processing etc.,

y After the assessment of the Shipping Bill, the Exporter/Agent

is required to get the Airway Bill cut/prepared by the

concerned Carrier/IATA Agent and shall obtain Carting

Order on the reverse of the Original copy of the AWB. TheCarting Order will be generally valid for the day of issuance.

y The Exporter or his authorized agent shall obtain advance

Terminal Charges Receipt for payment of the relevant

charges at the Bank counter or computer counter on

production of following documents

1. Duly processed custom shipping bill

2. Copy of air way bill

3. Valid catering order endorsement of the air lines on the

back of air way bill:



y The Vehicle along with the ³Ready for Carriage´ cargo is

allowed to pass through the Security Barriers on the production

of TC Receipt to the Security Personnel for off-loading the

cargo on the ramp area by the loaders of exporter/agent.

y After off-loading the goods, the representative of the

Exporter/Agent shall inform the AAI staff positioned at the

respective off-loading platforms, who after verification of

Documents and Cargo would give endorsement on the relevant

TC Copies as a token of admittance of export cargo.

Verification of weight of shipments are carried out randomly

and in case of difference of weight + _2% variation penalty is

to be paid by the exporter or agent apart from amendments in

all the AWB copies & SB copies.

y The agent/shipper should thereafter selects packages, out of

the total packages for customs examination and remaining

packages shall be forwarded to Bonded area for storage and

then the cargo is examined by the Customs Appraising staff

posted at the shed and obtain the ³Let Export Order´ from the

Customs Appraising Officers (Aos) on the SB as well as

endorsement on the relevant TCs. Opening and repacking

works are carried out by AAI packers.

y After the ³Let Export Order´ the remaining cargo along with the

documents is handed over to the Airlines at the Bonded Area



Gate and an endorsement on the green TC receipt is obtained

from the Carrier as a token of receipt of the shipment.

y The Green copy of the Terminal Charges Receipt duly signedby the Customs and Airlines officials is required to be submitted

back to the AAI office for its further necessary action. However

TC receipts for export cargo of Airlines handled by AAI is taken

over by AAI Staff at the time of the receipt of cargo.

y In regard to the delivery details or on carriage of export cargo,

the exporter/agent may contact the first carrier for the same.

Conclusions

As with deregulation, weak airlines were unable to compete



with the major air carriers causing fallout of small carriers. In

time, we will see a comparable transition in the air cargo

industry. Air carriers and forwarders alike will realize the benefit

in their collective strength. They will begin to formulate strongpartnerships to capitalize on their own networks. Once these

alliances are formulated, services for shippers and consignees

will become unmatched. Major developments are going to be

that forwarders' interactions with shippers will become much

more automated, leading to more web-based solutions to

provide real time order information and better customer

relationship management across the entire supply chain. Air carriers will be motivated to align with forwarding groups to

better manage shipper to shipper relationships, allowing them

to enhance customer interaction and provide a larger base of

services. Eventually, other carriers and forwarders will follow

suit. Those who fail to do so will most likely not survive.

Ultimately, successful companies will make the right decisions

and investments to overcome these strategic hurdles. Carriers

will be more focused on creating alliances with their best

customers, which are freight forwarders. Freight forwarders will

be eager to align with the air carriers, so they can gain more

control over available belly space to move product for shippers.

Major benefits realized by all including the shippers (air

carriers, forwarders, integrators, trucking companies) will be the

sharing of supply chain information. Advances in IT solutions

will make tracking, tracing and hand-offs much .

BIBILIOGRAPH Y



PRIMARY DATA

1. PRMARY DATA HAS BEEN COLLECTED FROM THE

DISCUSSION FROM MY MENTOR.2. HAS BEEN COLLECTED FROM THE DISCUSSION WITHIN

MY PEER GROUP.

3. HAS BEEN COLLECTED FROM THE DISCUSSION FROM

DEPARTMENTAL ASSOCIATES HEAD.

4. DATA HAS BEEN COLLECTED FROM MY EXTERNAL

GUIDE MR. AMRENDAR KUMAR.

5.

SECONDARY DATA

SECONDARY DATA ARE BASICALY THE DATA OR CONCLUSION

DROWNS FROM THE SECONDARY SOURCES.

SECONDARY DATA HAS BEEN COLLECTED FROM SOURCES

BELOW-FOLLOWING DOCUMENTS ARE THE SOURCE FOR THE

SECONDARY DATA ±

1. EXPORT IMPORT WEB PORTAL.

2. COMPANY BROCEURS.

3. AIR EXPORT DOCUMENTS.

4. INCOTERMS DOCUMENTS.

