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:-

Project Report On Import-Export Page 1

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:-

Project Report On Import-Export Page 2

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:-

Project Report On Import-Export Page 3

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:-

Project Report On Import-Export Page 4

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

Project Report On Import-Export Page 5

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

Project Report On Import-Export Page 6

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:-

Project Report On Import-Export Page 7

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:-

Project Report On Import-Export Page 8

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:-

Project Report On Import-Export Page 9

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.

Project Report On Import-Export Page 10

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.

Project Report On Import-Export Page 11

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.

Project Report On Import-Export Page 12

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.

Project Report On Import-Export Page 13

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.

Project Report On Import-Export Page 14

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.

Project Report On Import-Export Page 15

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

Project Report On Import-Export Page 16

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.

Project Report On Import-Export Page 17

3.2 Company details :-

Director:-

Kishor Chandrakant Gupte

Prakash Chadra Kunndalia

Mahendra Kumar Arora

Additional director:-

Jayant Mahiendra Thakur

Pushp Raj Singhvi

Project Report On Import-Export Page 18

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 :-

Project Report On Import-Export Page 19

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,

Project Report On Import-Export Page 20

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:-

Project Report On Import-Export Page 21

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:-

Project Report On Import-Export Page 22

Extrusion Machinery

Blow Moulding Machine

Injection Moulding Machine

Our product address following application

Project Report On Import-Export Page 23

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.

Project Report On Import-Export Page 24

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.

Project Report On Import-Export Page 25

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.

Project Report On Import-Export Page 26

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

Project Report On Import-Export Page 27

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.

Project Report On Import-Export Page 28

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.

Project Report On Import-Export Page 29

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

Project Report On Import-Export Page 30

4.8 Manufacturing cycle:-

NO

Project Report On Import-Export Page 31

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

Project Report On Import-Export Page 32

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.

Project Report On Import-Export Page 33

Chapter-5

Export Procedure:-

5.1 How to generate the export inquiry?:-

Project Report On Import-Export Page 34

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.

E-mail

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”

Project Report On Import-Export Page 37

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

Project Report On Import-Export Page 41

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 :-

Project Report On Import-Export Page 44

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 :-

Project Report On Import-Export Page 45

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.

Project Report On Import-Export Page 46

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.

Project Report On Import-Export Page 53

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

Project Report On Import-Export Page 54

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

Project Report On Import-Export Page 59

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

Project Report On Import-Export Page 61

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

Project Report On Import-Export Page 62

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