A STUDY ON

A STUDY ON

EXPORT PROCEDURE AND DOCUMENTATION

With reference to

KAKINADA SEA PORTS LIMITED. KAKINADAA Project Report submitted in partial fulfillment of the requirement for the award of the degree of

5 Year Integrated MASTER OF BUSINESS ADMINISTRATION

Department Of INTERNATIONAL BUSINESS STUDIES

ACHARYA NAGARJUNA UNIVERSITY

(A recognized institute and given B++ rank by NACC)

SUBMITTED BY

K.VENKATA SHYAM BABU (Roll No: Y12IB20045)

UNDER THE GUIDANCE OF

Dr. R. SIVA RAM PRASAD M.B.A.,M.COM,M.C.A.,P.G.D.C.A.,B.L.,Ph.D Declaration

I K.VENKATA SHYAM BABU hereby declare that the project report entitled A Study on export procedure & documentation in KAKINADA SEA PORTS LIMITED. KAKINADA prepared based on the information collected during 30TH OCT 2013 TO 29TH NOV 2013for partial fulfillment of the award of INTEGRATED M.B.A(International business studies). III/I SEMESTER, Acharya Nagarjuna University, Nagarjuna Nagar.

It is an original work done by me and to the best of my knowledge and belief, it has not been published earlier elsewhere or presented to any University or Institution for award of any degree, diploma or other similar title.

DATE:

PLACE:

(K.VENKATA SHYAM BABU)

CERTIFICATE

This is to certify that the project Report titled A Study on export procedure & documentation in KAKINADA SEA PORTS LIMITED. KAKINADA is an original work carried out by K.VENKATA SHYAM BABU (Enrollment No Y12IB20045), under my guidance and supervision, in partial fulfillment for the award of the degree of 5 Year integrated M.B.A to the department of international Business, Acharya Nagarjuna University, Nagarjuna Nagar, Guntur during the Academic year 2011-16. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

SIGNATURE OF THE GUIDE

Name and Address of the Guide:

Name of Guide:

Designation:

ACKNOWLEDGEMENT

I wish to acknowledge my sincere gratitude to all persons who whole-heartedly contributed their sincere support that helped me for the successful completion of my project work.

I take much pleasure to express my deep sense of gratitude and thankfulness to the Department of International Business, Acharya Nagarjuna University, and Guntur.

It is indeed my great pleasure to profoundly thank to my project guide Dr. R. SIVA RAM PRASAD, for his valuable and sincere guidance throughout my Project. I am duty-bound to sincerely thank SRI.M.MURALI KRISHNA, GENERAL MANAGER(BUSINESS DEVELOPMENT & LOGISTICS) for his valuable guidance and support for the successful completion of the project, and also thank to all the employees of KAKINADA SEA PORTS LIMITED. KAKINADA, for their valuable co-operation, co-ordination and assistance in my project work.

K.VENKATA SHYAM BABU CONTENTS

Chapter -1 IntroductionNeed for exports & importsExport incentives.

International business.

International marketing.

Chapter 2 2.1 Objectives.

2.2 scope

2.3 Research methodology

2.4 Limitations

Chapter- 3 Profile of sea port industry Chapter 4 Company profile

Chapter 5 Export procedure documentation and procedures Chapter-6 Export procedure documentation and procedures analysis Chapter 7 INCOTERMS

Chapter - 8 Suggestions and conclusion

Chapter -9 . Bibliography 1.INTRODUCTIONINTRODUCTION Imports and Exports of goods dominate the interdependence of countries in the world economy. Exports are the part of a countrys domestic production that is sold to residents of other countries. Imports are the part of a countrys domestic consumption and/or investment that is purchased from foreign producers.

An export and import is very much necessary for a country. Because if a country had no import or export, they wouldn't be able support themselves. Import is when a country brings things in that they can't supply. And export is when a country gets paid to give away extra stuff they have. Without import and export, a country would only have what they could supply on their own.

In order to develop countrys economy, it has to import what it doesnt produce. The payment for all these imports can be done only through exporting the products and earnings through valuable foreign exchange.

NEED OF IMPORTS IN INDIA

On the imports side, India has been in a disadvantageous position, advanced countries which are capable of producing and selling almost every commodity at low prices. This meant that India could not develop any industry without protecting it from foreign competition.

Imports are essential to protect domestic industries and to promote industrial development.

Since independence, the government of India has broadly restricted foreign competition through a judicious use of import licensing, import quotas, import duties and in extreme cases, even banning import of specific goods.

NEED OF EXPORTS IN INDIA

To pay for its imports and to minimize dependence on foreign countries, expansion of exports was very essential. There are many good reasons for exporting:

The first and the primary reason for exporting are to earn foreign exchange. The foreign exchange not only brings profit for the exporter but also improves the economic condition of the country.

The companies that export their goods are believed to be more reliable than their counterpart domestic companies assuming that exporting company has survive the test in meeting international standards.

Free exchange of ideas and cultural knowledge opens up immense business and trade opportunities for a company.

One starts visiting customers to sell ones goods; he has an opportunity to start exploring for newer customers, state-of-the-art machines and vendors in foreign lands.

EXPORT INCENTIVES

The government of India has framed several schemes to promote exports and to obtain foreign exchange. These schemes grants incentive and other benefits. The few important export incentives, from the point of view of indirect taxes are briefed below:

Free Trade Zones (FTZ).

Electronic Hardware Technology Park/ software technology parks.

Advance License / Duty exception Entitlement scheme(DEFC)

Export Promotion Capital Goods Scheme (EPCG).

INDIAN EXPORTS Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed faster export growth than others. Some of the main Indians exports are

Software

Tobacco

Cotton

Textiles

Jute good tea

Coffee

Cocoa products

Rice

Wheat

Jams

Juices & preserved vegetables etc.

India exports its goods to some of the leading countries of the world such UK

USA

BELGIUM

RUSSIA

CHINA etc.

RESERVES OF FOREX

The foreign exchange market (FOREX) is a worldwide decentralized financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

The primary purpose of the foreign exchange market is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import European goods and pay Euros, even though the businesss income is in US dollars. It also supports speculation, and facilities the carry trade in which investors borrow low-yielding currencies and lend (invest in) high-yielding currencies and which may lead to loss of competitiveness in some countries.

INTERNATIONAL TRADE:-

International trade is exchange of capital, goods, and services across international borders or territories.[1] In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

International trade is in principle not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture.

Another difference between domestic and international trade is that factors of production such as capital and labour are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Then trade in goods and services can serve as a substitute for trade in factors of production.

Instead of importing a factor of production, a country can import goods that make intensive use of the factor of production and are thus embodying the respective factor. An example is the import of labor-intensive goods by the United States from China. Instead of importing Chinese labor the United States is importing goods from China that were produced with Chinese labor.International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.

New Trade TheoryNew Trade Theory tries to explain empirical elements of trade that comparative advantage-based models above have difficulty with. These include the fact that most trade is between countries with similar factor endowment and productivity levels, and the large amount of multinational production (i.e. foreign direct investment) which exists. New Trade theories are often based on assumptions like monopolistic competition and increasing returns to scale. One result of these theories is the home-market effect, which asserts that, if an industry tends to cluster in one location because of returns to scale and if that industry has high transportation costs, the industry will be located in the country with most of its demand to minimize.

Regulation of international tradeTraditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century, especially in the United Kingdom, a belief in free trade became paramount. This belief became the dominant thinking among western nations since then. In the years since the Second World War, controversial multilateral treaties like the General Agreement on Tariffs and Trade (GATT) and World Trade Organization have attempted to promote free trade while creating a globally regulated trade structure. These trade agreements have often resulted in discontent and protest with claims of unfair trade that is not beneficial to developing countries.

Free trade is usually most strongly supported by the most economically powerful nations, though they often engage in selective protectionism for those industries which are strategically important such as the protective tariffs applied to agriculture by the United States and Europe. The Netherlands and the United Kingdom were both strong advocates of free trade when they were economically dominant, today the United States, the United Kingdom, Australia and Japan are its greatest proponents. However, many other countries (such as India, China and Russia) are increasingly becoming advocates of free trade as they become more economically powerful themselves. As tariff levels fall there is also an increasing willingness to negotiate non tariff measures, including foreign direct investment, procurement and trade facilitation. The latter looks at the transaction cost associated with meeting trade and customs procedures.

Traditionally agricultural interests are usually in favour of free trade while manufacturing sectors often support protectionism. This has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly in the United States, Europe and Japan, are chiefly responsible for particular rules in the major international trade treaties which allow for more protectionist measures in agriculture than for most other goods and services.

During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This occurred around the world during the Great Depression. Many economists have attempted to portray tariffs as the underlining reason behind the collapse in world trade that many believe seriously deepened the depression.

The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements such as MERCOSUR in South America, the North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico, and the European Union between 27 independent states. The 2005 Buenos Aires talks on the planned establishment of the Free Trade Area of the Americas (FTAA) failed largely because of opposition from the populations of Latin American nations. Similar agreements such as the Multilateral Agreement on Investment (MAI) have also failed in recent years.

Risk in international tradeCompanies doing business across international borders face many of the same risks as would normally be evident in strictly domestic transactions. For example,

Buyer insolvency (purchaser cannot pay);

Non-acceptance (buyer rejects goods as different from the agreed upon specifications);

Credit risk (allowing the buyer to take possession of goods prior to payment);

Regulatory risk (e.g., a change in rules that prevents the transaction);

Intervention (governmental action to prevent a transaction being completed);

Political risk (change in leadership interfering with transactions or prices); and

War and other uncontrollable events.

In addition, international trade also faces the risk of unfavorable exchange rate movements (and, the potential benefit of favorable movements).Top traded commodities (exports)RankCommodityValue in US$('000) Date ofinformation

1Mineral fuels, oils, distillation products, etc$1,658,851,4562009

2Electrical, electronic equipment$1,605,700,8642009

3Machinery, nuclear reactors, boilers, etc$1,520,199,6802009

4Vehicles other than railway, tramway$841,412,9922009

5Pharmaceutical products$416,039,8402009

6Optical, photo, technical, medical, etc apparatus$396,337,6962009

7Plastics and articles there of$386,628,0642009

8Pearls, precious stones, metals, coins, etc$320,174,0802009

9Organic chemicals$310,106,4322009

10Iron and steel$273,024,4162009

Top trading nationsList of countries by exports and List of countries by importsRankCountryExports + ImportsDate ofinformation

-European Union (Extra-EU27)$3,197,000,000,0002009 [26]

1United States$2,439,700,000,0002009 est.

2People's Republic of China$2,208,000,000,0002009 est.

3Germany$2,052,000,000,0002009 est.

4Japan$1,006,900,000,0002009 est.

5France$989,000,000,0002009 est.

6United Kingdom$824,900,000,0002009 est.

7Netherlands$756,500,000,0002009 est.

8Italy$727,700,000,0002009 est.

-Hong Kong$672,600,000,0002009 est.

9South Korea$668,500,000,0002009 est.

10Belgium$611,100,000,0002009 est.

11Canada$603,700,000,0002009 est.

12Spain$508,900,000,0002009 est.

13Russia$492,400,000,0002009 est.

14Mexico$458,200,000,0002009 est.

15Singapore$454,800,000,0002009 est.

16India$387,300,000,0002009 est.

17Taiwan (Republic of China)$371,400,000,0002009 est.

18Switzerland$367,300,000,0002009 est.

19Australia$322,400,000,0002009 est.

20United Arab Emirates$315,000,000,0002009 est.

International Marketing:-

International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets. According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." In contrast to the definition of marketing only the word multinational has been added. In simple words international marketing is the application of marketing principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term.

The intersection is the result of the process of internationalization. Many American and European authors see international marketing as a simple extension of exporting, whereby the marketing mix 4P's is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardized approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments.

According to Kotabe, the following topics cover the micro-context of international marketing. Organizational and consumer behaviour:organizational buying behaviour;

international negotiations;

consumer behaviour;

country of origin.

Marketing entry decisions:initial mode of entry

specific modes of entry

exporting;

Joint ventures.

Local market expansion: marketing mix decisions:global standardization vs. local responsiveness

Marketing mix:

product policy;

advertising;

pricing;

Distribution.

Global strategy: Competitive strategy:

conceptual development;

competitive advantage vs. competitive positioning;

Sources of competitive advantage and performance implications.

Strategic alliances:

learning and trust;

recipes for alliance success;

Performance of different types of alliance.

Global sourcing:

global sourcing in a service context;

benefits of global sourcing;

Country of origin issues in global sourcing.

Multinational performance:

determinants of performance;

a different interpretation of performance.

Analytical techniques in cross-national research: measurement issues;

Reliability and validity issuesDifferences between domestic marketing and international marketingThere are various differences between domestic marketing and international marketing. Due to a language barrier it is more difficult to obtain and interpret research data in international marketing. Promotional messages need to consider numerous cultural differences between different countries. This includes the differences in languages, expressions, habits, gestures, ideologies and more. For example, in the United States the round O sign made with thumb and first finger means "okay" while in Mediterranean countries the same gesture means "zero" or "the worst". In Tunisia it is understood as "I'll kill you" meanwhile for a Japan consumer it implies "money". Even among the 74 English-speaking nations a word with the same meaning can differ greatly from the English which is spoken in the United States as the following example shows:

Police: bobby (Britain), garda (Ireland), Mountie (Canada), police wallah (South Africa)

Porch: stoep (South Africa), gallery (Caribbean)

Bar: pub (Britain), hotel (Australia), boozer (Australia, Britain, New Zealand)

Bathroom: loo (Britain), dunny (Australia)

Ghost or monster: wendigo (Canada), duppy (Caribbean), taniwha (New Zealand)

Barbecue: braai (South Africa), barbie (Australia)

Truck: lorry (Britain and Australia)

Festival: feis (Ireland)

Sweater: jumper (England)

French fries: chips (Britain)

Soccer: football (the rest of the world)

Soccer field: pitch (England)

Three recent international examples of misinterpretation are:

On a sign in a Bucharest hotel lobby: The lift is being fixed for the next day. During that time, we regret that you will be unbearable.

From a Japanese information booklet about using a hotel air conditioner: Cooles and Heates:

If you want just condition of warmin your room, please control yourself.

In an Acapulco hotel: The manager has personally passed all the water served here. Mode of engagement in foreign marketsAfter the decision to invest has been made, the exact mode of operation has to be determined. The risks concerning operating in foreign markets is often dependent on the level of control a firm has, coupled with the level of capital expenditure outlayed. The principal modes of engagement are listed below:

Exporting (which is further divided into direct and indirect exporting).

Joint ventures.

Direct investment (split into assembly and manufacturing). IMPORTANCE OF GLOBAL TRADE

A.Current status of maritime transport industry in india

IndiaTable 1. Total Ca Capacity Traffic Handled (Per cent)1984-85 132.7 107.8 81

1985-86 141.9 119.5 841986-87 141.9 124.4 881987-88 141.9 133.7 941988-89 141.9 146.4 1031989-90 162.8 148.4 911990-91 162.8 152.9 941991-92 169.2 157.6 931992-93 170.2 166.6 981993-94 170.2 179.3 1051994-95 174.0 197.2 1131995-96 181.2 215.3 1191996-97 219.5 227.3 1041997-98 239.5 251.4 1051998-99 254.4 251.7 1051999-00 254.4 272 1072000-01 291.0 281 91B. Existing policies/laws/regulations1. Market access and restrictions on specific tradesMarket access, i.e. access to the carriage of cargo traffic assumes a great significance so far asshipping services are concerned. The dearth or denial of opportunity to carry cargo, both bulk as well asbreak-bulk, even originating in their own countries or belonging to them is one of the most importantfactors inhibiting participation of mercantile fleet of developing countries. This is primarily due to theterms of trade being used by the major trading partners of the developing countries which are morefavourable to them, i.e., buying on FOB/FAS and selling on CIF/CFR basis.Imposition of restrictions on maritime transport services can adversely affect the price, reliabilityand quality of these services. These are in fact barriers that limit maritime service suppliers fromentering or operating in a market. Such restrictions are imposed by some governments through legislationand regulation. Such restrictions may be discriminatory or non-discriminatory against foreign servicesuppliers.Cargo support in favour of national shipping is nearly universal, since reservation of national cargoesfor national bottoms provides the national fleet with a certain degree of stability in an otherwise violentlycyclical market. This stability has an extremely positive impact on the eventual financial strength ofnational shipping companies and their ability to raise capital competitively. In case of Indian shipping aswell, cargo support was made a cardinal principle of national policy which proved to be a great source ofstrength in promoting the growth of the national fleet. Since the key to cargo support is provided bycontrolling the terms of shipment to buy on FOB and sell on CIF basis, the Government of India alsoformulated a policy of FOB/FAS imports and CIF exports in 1957.The policy of buying on FOB/FAS and selling on CFR/CIF basis in respect of Government cargoeson account of Central Ministries and the Departments/State Governments and its Departments, PublicSector.Undertakings and Projects under them was felt necessary due to a host of factors. For example:(i) Retaining control over shipping,(ii) Providing cargo support to Indian shipping,(iii) Saving outgo of valuable foreign exchange and earning foreign exchange in cross trades,(iv) Controlling freight level and commodity price in national interest, etc. Under this arrangement,the government owned/controlled cargo is channeled by the charting wing of the Ministry ofShipping, called Transchart. As per this policy the first right of refusal for carriage of suchcargo was given to Indian vessels.However, pursuant to the policy of trade liberalization in mid-1991 resulting in decanalization ofvarious items, like rock phosphate, sulphur, ammonia, phosphorus acid, DAP, MOP, etc. and entry ofprivate trade in import of these items, Transcharts role for making shipments arrangements for thecargoes under reference has been marginalized and the same is likely to further go down in the nearfuture due to the changing pattern of trade in which private sector will be having a greater role to play.Moreover, the declining share of national carriers in the total overseas trade of the country andremaining within a range of 28 per cent to 35 per cent especially in the post liberalization era clearlyreflects that India has not been following strictly any cargo support policy even in respect of cargo beingimported or exported by the Public Sector Undertakings, since lately they have been demanding relaxationin the policy of going through Transchart for making the shipment arrangements due to the growingcompetitive business environment in which now they have to operate.In the context of market access, it may also be highlighted that the lower share of Indian shipping inthe carriage of countrys overseas trade is due to the terms of trade used by Indias trading partners, who,by and large, have been buying and selling goods on terms more favourable to them. Thus from Indiaspoint of view, there is no protection as such for the national carriers and no restrictions for the ships ofother countries to carry cargo from Indian ports.The carriage of coastal trade is governed under the cabotage principle in many countries, developedas well as developing. India too, has a scheme of 100 per cent reservation of coastal trade for the nationalcarriers, since the movement of traffic within a countrys ocean territory has always been considered aspart of the internal transport system. However, any dispensation permitting the foreign flag in the coastaltrade is given on voyage to voyage basis.2. Bilateral/unilateral cargo reservation schemesBilateral shipping arrangements are considered to be an effective tool to ensure cargo support tothe national bottoms and is reportedly used by some of the countries in the world.Initially, India used to have bilateral trade and shipping agreements with some of the Eastern BlocCountries and UAE, according to which there was parity (50:50) in terms of sailings and the carriage oftrade by the carriers of the respective trading partners. This system proved quite effective in ensuringcargo support for the national carriers and thereby better utilization of ships in the liner trade, especially incase of India. However, due to the changes that have taken place in the economies of those countries, overthe period, no such agreements or schemes are currently in force.3. SubsidiesSome of the developed countries are reportedly extending the facilities of operational and constructionsubsidies, concessional credits, registration of vessels in open registry countries, tax incentives or assis-tance for shipbuilding or operation costs aiming at the development of shipping activities or sometimes atthe maintenance of already established position of their national merchant fleet. For the carriage ofdonation cargo, not only preference is given to the national ships, but there is also scheme of subsidizingthe carriage of such cargo. Non-financial support include measures like cargo reservations and cargopreferences for national carriers.In India, grant of soft loan funding assistance for ship acquisitions was one of measures taken by theGovernment for the development of national shipping and for this Shipping Development Fund Committee(SDFC) was set up in 1958. SDFC disbursed large amounts at very attractive rates of interest varyingfrom 3 per cent during 1959 to 1971 to 7.5 per cent from 1980 to 1986. However, SDFC was abolished in1987 and now no one financial institute has been given an exclusive mandate for financing the shippingsector. Similarly adoption of certain fiscal measures, e.g. additional 1 per cent REP license in case ofutilization of national carrier for the carriage, were also directed towards the development of shippingfleet. All schemes have been removed during the past one and a half decades, especially after theintroduction of the policy of liberalization. Since the financial support to the shipping industry is almostnon-existent, the same has been left with no option but to take care of its requirement through ECBs orsuch other instruments so far as the raising of funds for acquisition of ships is concerned.Further, there exists no scheme for subsidizing the national carriers in the carriage of cargo andthere is also no cargo preference for them and the trade is thus open for being carried by the ships offeringcompetitive freight rates. Even in case of shipments of Government controlled cargoes or the cargoestraded by the Public Sector Undertakings for which the fixation of ships by Transchart is done, Indianbottoms do not get any price preference, they have to match the lowest price.4. Access to port facilities/services for overseas vesselsIndian ports, from the very beginning, have been following the principle of non-discrimination inproviding the facilities and services to the ships calling at ports irrespective of their flags. Likewise, thereis uniformity in levying charges for the port related facilities or services for all the ships.Ports being the lifeline for the economy as a whole and foreign trade in particular, the need forefficient services has been well recognized universally. To bring about improvement in this sector, theGovernment has deviated from its erstwhile socio-economic policy and has accepted privatization conceptof construction, development and operation in ports. The objective of privatization is in terms of techno-logy, better equipment availability, management, funding, marketing, shift of operation and related risks tothe private entrepreneurs who can have better inputs, commercial practice and flexibility required forensuring the needed competition.Private sector is permitted to construct its own cargo handling facilities at the ports, under Build-Operate-Transfer format. There is no distinction between foreign and Indian companies. 100 per centForeign Direct Investment is permitted without specific approvals from the Government authorities. Inorder to provide incentives to the projects to enhance their viability/profitability, corporate tax exemptionhas been provided for 10 years and the import of project and its component is permitted on concessionalimport duty bases. In the maritime auxiliary services, there are no limitations on market access, nor arethere any limitations on national treatment in the commercial presence in the areas of Maritime CargoHandling services; Storage and Warehousing services in ports; Container Station and Depot Services;Maritime Agency services; Maritime Freight Forwarding services and maintenance and repairs of seagoing vessels.C. National (plan/policy) towards liberalization1. Policy towards liberalization of maritimetransport servicesIn case of shipping and port sectors, especially, the policy has been towards encouraging openness.For example, foreign direct investment (FDI) is permissible up to 100 per cent. Various measures towardsliberalization of shipping sector include automatic approval for acquisition of all categories of ships (exceptcrude tankers and OSVs) by private shipping companies, sale of ships for further trading/scrapping toIndian companies within India or abroad, acquisition of replacement tonnage, permitting shipping compa-nies to retain sale proceeds of Indian ships abroad and utilization of the same for fresh acquisition andfreedom to charter out Indian ships to foreign shipping companies for employment in international crosstrade, on case to case basis.D. Indias participation at the 4WTO MinisterialthConference held in DohaIndia participated at the 4WTO Ministerial Conference in Doha from 9-13 November 2001. Thet hMinisterial Declaration adopted at Doha reaffirms the Guidelines and Procedures for the Negotiationsadopted by the Council for Trade in services on 28March 2001 as the basis for continuing the negotia-t htions, with a view of achieving the objectives of the General Agreement on Trade in services as stipulatedin the Preamble, Article IV and Article XIX of that Agreement. The Doha agreement stipulates that theparticipants shall submit their initial requests for specific commitments by 30 June 2002 and initial offersby 31 March 2003.India is sensitive to the needs of the developing countries and is in the process of examining the matterin order to finalize its stand with regard to the forthcoming negotiations on Maritime Transport Services.E. Preparation for negotiations1. Expectations from the forthcoming negotiations on MaritimeTransport Services (MTS) through WTOMandated Negotiations under the General Agreement on Trade in Services (GATS) commenced atthe WTO on 1January 2000. The main objective of GATS is the expansion of trade in services,stprogressive liberalization of such trade through negotiations, transparency of rules and regulations andincreasing participation of developing countries. Since MTS is governed by the GATS under the WTOregime, it is expected that this sector will witness significant liberalization through multilateral tradenegotiations.In the past, the shipping interests of developing countries like India have been adversely affectedbecause of the policies and practices of the developed countries and their shipping companies. Therefore,the burden of making the maritime transport services transparent, non-discriminatory and providingmarket access to the shipping industry of the developing countries on a fair and equitable basis liessquarely on developed countries. The developing countries may hope that with the removal of protectionistpolicies and practices followed by the developed maritime countries, the former will be having a betteropportunity of improving their shipping fleet as also the share in the carriage of trade. The participation oftheir fleet in cross trade with equal opportunity of carriage of global trade would further result in betterearnings in foreign exchange, besides utilization of increased capacity for carriage of national trade wouldgive the advantage in terms of savings in the outgo of foreign exchange. The improvement in shipping fleetas also in the port sector is expected to bring in better results for the countrys economy as a whole.F. The most important limitation expected to be eliminatedor reduced through such negotiationsServices trade has emerged as an important and growing part of the world economy accountingfor increasing shares of production, employment and international transactions. The share of servicesin the world trade as well as the majority of domestic activities in most economies is reportedly around20 per cent.Developing and transition economies can expect to compete effectively in the services sectorscovered by GATS. The range of services currently being exported by some of the countries falling underthe above group includes the transport services.Currently the most important limitation for the maritime transport services of the developingmaritime nations is the market access, i.e., the denial of opportunity to carry even the national trade.Though the cargo may originate in the developing countries, their national shipping has no claim on thecarriage of the same, since the carriage of cargo is very much dependent on the terms of trade used by theoverseas buyers, especially buyers from developed countries. In case of India, it has been observed that,barring strategic cargo like crude and petroleum products, the requirement of which is mostly met throughimports, majority of the cargo in bulk and break-bulk trade is being carried by the ships belonging either tothe importing countries or FOC (Flag of Convenience) countries, where again the ownership is with theleading maritime countries. The ships registered with FOC countries are offering competitive freightcharges due to their inherent advantage in terms of lower operating costs. In the interest of providingopportunities for a fair share in their trades, the issue of market access has to be considered based onGATS rules. The negotiations would hopefully do away with the limitation in this regard and themaritime transport services of developing countries like India might benefit from such a move. CHAPTER-2

OBJECTIVES

SCOPE

RESEARCH METHODOGY

( DATA ANALYSIS)

LIMITATIONS

THE present study is a comprehensive study of EXPORT DOCUMENTATION AND PROCEDURE . The research work is done in collaboration with KAKINDA SEA PORT LTDTo assess the overall export procedure & documentation. On concentrating the OBJECTIVE Of the project of maximum information is summed up sequentially. The Executive Summary of the project describes...ObjectiveThe main objective of the study is to formulate the overall procedure of export orders say howto export, documentation, modes of payment & incentives from KAINADA SEA PORT LTD.Research MethodologyResearch comprises defining and redefining problems. Research purpose is to discover answer toquestion through the procedure of scientific procedure. Interviews and discussion With thesupervisors and officials to get the root of the pre-determined objective and in order to outlinethe a to z steps of processing export order.

Findings & RecommendationsOn the execution of the objective of study, it might be conclude that processing of export ordercan be a tedious and costly activity. A careful planning and implementation of appropriateprocedure can reduce time and cost drastically. A fair documentation not only reduces the threatsof frauds, bottlenecks and risks but also enhances the business relationship between Exporters,Importers & Governments in the whole world. Statement of objectives

The complexity of business operations greatly accentuate as businessmen cross thenational boundaries. A lot of formalities and modalities of several organizations have to becompiled to and as error can create bottle necks in the free flow of goods, documents,information and payments.Documentation is definitely one of the prime specialized functions of internationalbusiness. The documents safeguard the interests ofExporter, Importer, Banks, Governments,Transport Agencies, Insurance Agencies and Inspection Agencies.Main Objective of the StudyThe main objective of the training was to study the systematic export procedure &documentation of a reputed export house say KAKINADA SEA PORT LTD to overcome any kind of error,bottleneck, frauds and mistake for the awareness and implementation of standardized rule-regulations & documentation to contribute the integration of International Business up to anyextent.Sub Objectives of the StudyThe sub objectives of the study were:To study the department wise functions & sequential documentation for variousoperations in export orders adopted by KAKINADA SEA PORT LTD.To study the standard modes of payment in export-import.To identify the incentives, discounts & duty drawbacks to exporters by theGovernment.FOCUS OF THE STUDY

The focus of the study was the formulation the multifunction procedure of an export unitnamed KAKINADA SEA PORT LTD. The focus of the study was on identifying the activities of different divisions and departments of KAKINADA SEAPORT LTDhaving an impact on the export p procedureOf this unit. Focus was to outline the standard modes of payment for export houses. Research on analyzed the pre-export formalities and necessities for exportation. The project is an attempt to national and international economy & business contributionformulate the how to export concept finally to contribute to national and in METHODS

METHODS OF COLLECTING DATA

THE Data collection has involved in two steps

PRIMARY DATA:-

The Primary data is collected by interacting with the General manager ,asst.General manager and employees of kakinada sea port LTD.

S ECONDARY DATA:-

The secondary data is collected from the internet , journals and books

SCOPE AND LIMITATIONS OF THE PROJECT

SCOPE:-

This project work is focussed and confined to understanding activities involved in the tobacco export process and related export documentation.This project work is focussed and confined to understanding activities involved in the tobacco export process and related export documentationLIMITATIONS:-

PARTIALinformation of negotiable documents because of securities reasons..All the findings are based on the information from Seller/Exporter side only.Export Rules, Regulations & Compliances are too wide to cover thoroughly in short termproject.Primary data is analyzed though interview of executives and they may not be availableand may not be part of research.Less sufficient response of executives & supervisors in respect to information related to securities and related matters

Due to insufficient time , information about the project is limited because of project time is one month

CHAPTER-3

INDUSTRY PROFILE

INDUSTRY PROFILE

Seaports and sea-borne trade are an important economic asset for the Gulf Coast region, directly and indirectly supporting significant numbers of jobs. The region is home to four major seaports, those of Houston, Texas City, Freeport and Galveston.

The Port of Houston is one of the worlds largest cargo ports. In 2007, the port ranked first in Texas, second in the U.S., and 16th In the world in to tal cargo volume handled.32 It is also the states second-largest cruise port and is expanding those operations th the opening of a new cruise terminal.

The Port of Houston is a 25-mile-long complex administered by the Port of Houston Authority and hosts more than 150 private industrial companies along the Houston Ship Channel. More than 225 million tons of cargo moved through the port in 2007 and 8,053 vessel calls were recorded at the Port of Houston in 2008. 33International trade partners of the port include Mexico and countries in the Middle East, South America and Europe. Principal products handled at the Port of Houston include crude fertilizers, petroleum, organic chemicals, cereal, iron and steel, machinery, plastics and vehicles.

A recent study by the University of Texas at Austins Center for Transportation Research found that the Port of Houston directly or indirectly accounted for 785,049 jobs, $39.3 billion in personal income and $117.6 billion in economic impact on the area, while providing $3.7 billion in tax revenue for local, state and federal governments in 2006.34The Port of Texas City is the states fourthlargest, 13th in the nation and 87th in the world for total cargo volume.35 It is located about 10 miles northwest of Galveston and has the significant advantage of a highly integrated railway system.

The railway facilitates the movement of liquid cargoes including crude petroleum oil and refined petroleum products. The Texas City Terminal Railway Company handles more than 25,000 rail car loads annually. Both the Union Pacific and Burlington Northern Santa Fe rail companies have a significant presence in the area, with 32 miles of connecting rail lines that serve different facilities at the port. The Port of Texas City includes 1,500 acres of land leased to various industrial entities that operate petrochemical plants and refineries and tank and terminal facilities, making it a vital national hub for the petroleum industry.36The Port of Texas City directly or indirectly accounted for 15,050 jobs and $919.5 million in personal income in 2004. In that year, it generated $667.6 million in economic activity in the area and contributed $248.3 million in tax revenue to local, state and federal governments.

In 2007, the port handled nearly 52 million tons of cargo. Its principal import is crude oil, while its principal exports are gasoline, diesel, jet fuel, intermediate chemicals and petroleum coke. The port serves customers throughout the U.S., as well as numerous countries around the world.37The Port of Freeport, located about 50 miles south of Houston in Brazoria County, is the fifth-largest port in Texas and the 27th-largest in the nation for total cargo volume.38 Its principal imports include crude petroleum, fruit, textiles, aggregate, paper goods and plastics. Its primary exported commodities include automobiles, chemicals, clothing, food, paper goods and plastics.

The port serves customers throughout the U.S. and from Nigeria, Saudi Arabia, South Africa, Brazil, Colombia, the Dominican Republic, Guatemala, Honduras, Mexico, Venezuela and Costa Rica. The port directly or indirectly accounted for 25,795 jobs, $1.8 billion in personal income and $1.6 billion in economic activity, while contributing $169.9 million in tax revenue for local, state and federal governments in 2003. The Port of Freeport handled about 29.6 million tons of cargo in 2007.39In 2007, the Port of Galveston was the eighth-largest port in the state and 53rd-largest in the nation for total cargo volume.40 The port, located at the mouth of Galveston Bay along the Upper Texas Coast, handles imports including containers, agricultural equipment, machinery, vehicles, fertilizer products, lumber products and military-related cargoes. Its principal exports include bulk grains, containers, machinery, vehicles, linerboard and paper, carbon black and light fuels. In 2007, the port handled 9.8 million tons of cargo.41The Port of Galveston is also Texas number-one passenger port. In 2006, nearly 617,000 people embarked from the port on cruise ships.

The port serves customers throughout the state as well as Texas neighboring states and the Midwestern U.S. Its international trading partners include Mexico, Guatemala, Panama, Colombia, Venezuela, Brazil, Dominican Republic, Spain, Italy, Egypt, Israel, Turkey, Bulgaria, Belgium, England, Germany, Saudi Arabia, United Arab Emirates, Kuwait, Singapore and China.The Port of Galveston directly or indirectly accounted for 13,367 jobs, $727.5 million in personal income, and $2.2 billion in economic activity, while contributing $190.4 million in tax revenue to local, state and federal governments in 2006.42 CHAPTER 4

COMPANY PROFILE

KAKINADA SEAPORTS LIMITED a dynamic gateway port on East Coast of India which is ideally located between Visakhapatnam and Chennai Ports.Hope Island, a natural formation offers protection as natural breakwater for Kakinada Port and 1.2 Km breakwater of tetra pods provides tranquil bay conditions round the year for vessels to operate in sheltered waters of Kakinada Deep Water Port.

The vantagious position of Port gives a unique opportunity to handle a mix of bulk, liquid, break bulk, containers, project cargoes & service offshore Oil & Gas exploration activities of Krishna Godavari Basin. KSPL team is truly committed to Customer needs, safe working practices, supply chain management and environment protection.KAKINADA PORT is located at Kakinada off the east coast of India. It is 170 km (106 mi) south of Visakhapatnam Port.

Kakinada Port is a large complex comprising Kakinada Anchorage Port, Kakinada Deep Water Port, Kakinada Fishing Harbour and Ship-Breaking Unit. Kakinada Anchorage Port has a century-long tradition.

Kakinada Deep Water Port is an all-weather deep water port, and the channel has a depth of 12 metres (39 ft). The port can handle vessels up to 50,000 DWT. The port handled 10.81 million tonnes of cargo in 20102011.Recently AP Govt has developed Kakinada beach and it has 100 acres of land covered from port to uppada area.KAKINADA ANCHORAGE PORT

Department, Government of Andhra Pradesh.

Located at:-

Lat :- 16 .56 N

Long :- 82 .15 E

Located on theEast Coastof A.P, East Godavari District , India and the port is in operation departmentally since long time by A.P.Ports

Kakinada Port is the main gateway port for the rich agricultural belt of East Godavari, West Godavari and Krishna Districts ofAndhra Pradesh.

Kakinada Port comprises of Kakinada Anchorage Port, Kakinada Deep Water Port, Kakinada Fishing Harbour.

Kakinada Anchorage Port has a hundred yearsold historymanaged by the Government of Andhra Pradesh.

Kakinada Anchorage Port handled a cargo of 1.14M.tons during the year 2010-11 and 2.55 M.Tons during the year 2011-2012 (up to 01/2012)

Kakinada Anchorage Port Infrastructure

Land: 1959.69 Acres

Wharf: 922 Mts length

Open Stocking Area: 1,00,000 Tonnes

Transitsheds for storageof Cargo: 50,000 MT (Govt) 3,00,000 MT (Private)

KAKINADA DEEP WATER PORTKakinada Sea Ports Limited is a Special Purpose Company set up in 1999 as a part of its privatization initiatives by the government.It is promoted by Kakinada Infrastructure Moldings Pvt. Ltd., group and Konsortium Logistic Berhad of Malaysia with an objective of developing and operating a trulyworld classHub.This deep-water port is located on theeast coastof India with a graphical position of

Located at:-North:- Latitude 17 05.8 N and longitude of 82 31.5 E.South:- Latitude 16 55.9 N and longitude of 82 30.0 E.East :- (A) Latitude 17 05.8 N and longitude of 82 31.5 E.(B) Latitude 17 00.0 N and longitude of 82 31.5 E.(C) Latitude 16 55.9 N and longitude of 82 30.0 E.It is situated 170 km south of Visakhapatnam and 650 km north of Chennai. Kakinada forms the main gateway port for the rich agricultural belt of East Godavari, West Godavari and Krishna Districts ofAndhra Pradesh.Conservancy powers vested with Kakinada SeaportsCompany Limited.The port is developed with the land to an extent of Ac.302 THE KEY FEATURESAll weather, deep water.It has a channel depth of 12 metres.The berth waiting time is the minimum in the country of 0.31 hours as against 5.0 hours in major port.The vessel turnround time is one day as against 3.5 days in major ports.It has secured warehouses and spacious storage yards.It is blessed with an efficient evacuation corridor and rail/road linkage.It is an ISO and ISPS certified port.PRESENT STAGE:Commercial operations are commenced from 1-4-1999Berths availability: 4 Berths are in operationCargo Berth 910 MtsMulti cargo berth 635 MtsOffshore supplyvessels BerthCoast GuardBerthThe 5th and 6th Berths are under construction stageDraft Depth of the channel availability is 14.00 Mts.Vessel handling capacity is 50,000 DWT.Cargo of 10.81 Million Tons was handled during 2010-11.Ship to ship transport facility is available COMPANY ORGANISATION STRUCTURE

MANAGING DIRECTOR : KV RAO

DIRECTORS : MIRZAN BIN MAHATHIR

NAVATHA KARANTI

VIJAYA SEKHAR VELLANI

SATYA NARAYANA MURTHY PYDI

VIBHA JAIN

GENERAL MANAGER : MURALI KRISHNA

ASST. GENERAL MANAGER : N.PRABHAKAR

::ROLE OF PORT DEPARTMENT

Providing facilities for theexport and importof various commodities.Safe Entry and berthing of vesselDischarging of CargoWarning the ships of all imminent dangers such as cyclones depressions, etc.Issue of instructions and guidelines to mariners forsafe passageof ships.

Benefits to the Nation:-

Derive the revenue to the nation such ascustoms duty, excise duty, etc.Reduce pressure on road and rail.Saving the consumption of fuel.Avoidtraffic congestionReduction ofair pollutionReduction ofEnvironmental problemsIncrease in employment.

::DUTIES OF OFFICERS OF THE PORT DEPARTMENT

1. Director of State Ports.

Director of State Ports is the Head of the Port Department and the Marine Advisor to the Government of Andhra Pradesh and exercises administrative control over the conservancy of all the Minor and Intermediate Ports in the State. The Director of State Ports is the Intermediate Authority to control the Conservators of Ports appointed in G.O.Ms.No. 132, P.W.D., dated 28-1-1970. He is also the Agent forAndhra Pradesh GovernmentConsignments and Government Surveyor. The Development and Improvement works at all the State Ports, consistent with need and trade at the Ports, is the responsibility of the Director.

2. Port Officers

Port Officers are the Conservators of the Ports as per Section 7 of Indian Ports Act, 1908.The Main functions and duties attached to the Port Officers are as follows: -They shall be the registering officers under the Andhra Pradesh State Ports Harbour Craft Rules, 1980.They shall be the inspecting officers under sub-section (1) of section 238 and 287 of the IndianMerchant ShippingAct, 1958.They shall be the Shipping Masters as per the provisions of the Indian Merchant Shipping Act, 1958 and the instructions received from time to time from the Merchantile Marine Department shall be followed.They shall be the Inspectors under section (6) of the Employment of Children Act, 1938.They shall be the Agents to the receiver of the Wrecks.They shall be the drawing, disbursing and Controlling Officers for the Staff working under them and the Staff of the Ports under their jurisdiction. (Vide G.O.Ms.No. 345, P.W.D., dated 22-3-1969 and G.O.Ms.No. 679, P.W.D., dated 12-6-1975.They shall be the Chairman of the PortAdvisory Committeeoriginally created in G.O.Ms.No. 1646, P.W.D. dated 26-9-1970 and extended from time to time.They are required to frequently examine the light apparatus andnavigational aidsat the Ports and be responsible for their efficient up-keep and maintenance. They are also required to make annual inspection of the Ports under their jurisdiction as well as the light houses of the Port Department situated therein and be responsible for their efficient up-keep.They shall inspect the V.H.F/R.T. Stations at the Ports frequently and be responsible for its maintenance.They are responsible for looking in to the dredging requirements at the Ports. TheMechanical Engineerand Dredging Superintendent shall carry out of the dredging work in close coordination with the Port Officers. A dredging programme shall be drawn up annually by the Port Officers and Mechanical Engineer and Dredging Superintendent and implemented as per requirements and availability of funds.They shall allot the departmental launches and tugs at the Ports to the Shipping interests upon their requisition and collect revenues thereon at the prescribed rates.They shall control and regulate all the boat traffic within the Port limits in accordance with the Harbour craft rules and ensures safe navigation.They shall allot the Port lands on annual licence system for Marine Purposes collecting the prescribed rate of revenues thereon.They shall allot the Port godowns and transit sheds to the Shipping interests for Marine purposes upon requisition by them and collects the revenues thereon at the prescribed rates.They shall attend to pilotage duties as and when introduced and whenever specially ordered to do so by the Director of State Ports.They are responsible to collect revenues, various items of Port Charges, as per the rules and regulations in force, from time to time and shall ensure that the revenues so collected are remitted into the Treasury promptly and within the time limits prescribed under rules to the appropriate heads of account of State Government and also to see the proper accounts for collection as well as remittances etc., are maintained and proper receipts are issued to the parties from whom revenues are collected and be responsible for the regular maintenance of the Cash Book.3. The Port Officers shall be the subject to the control of the Intermediate Authority,who is the Director of State Ports, Andhra Pradesh Kakinada asper G.O.Ms.No. 82, P.W.D., dated 20-1-1971 made under rule 7 (iv) of the Indian Ports Act, 1908.3. Superintending Engineer (Marine)

He is responsible for the administrative control of the Engineering wing of the Andhra Pradesh Port Department and maintaining the Port Infrastructure with the assistance of 3 Executive Engineers.4.Executive Engineer (Marine) Kakinada and Machilipatnam

He is responsible for the Administrative Control of the Division and the Sub-Divisions at Kakinada and Machilipatnam ports. The Executive Engineer (Marine) is responsible for the execution of all Civil Works both Capital and maintenance at all the Minor and Intermediate Ports of Andhra Pradesh State unless ordered otherwise by the Director of State Ports.

He is in charge of all the Civil structures of the Andhra Pradesh Port Department.It is the duty of the Executive Engineer (Marine) to inspect Civil Works in his Division, to satisfy himself that the system of management is efficient and economical, that the regulations as regards works stock and accounts are strictly observed and that the executive and Administrative work of the division is satisfactorily performed.The Executive Engineer (Marine) is responsible that proper measures are taken to preserve all the Marine structures and works in his Division. He must keep accurate plans for all Port lands in his Division and ensure that his subordinates are acquainted with the boundaries. All lands should be demarcated, wherever it has not been done and this work should be carried-out by the subordinates of the Divisions in consultation with the Port Officers concerned.The Executive Engineer (Marine) should immediately report to the S.E. (Marine), any serious loss of immovable property caused by any accident or unusual occurance.Executive Engineer (Marine) is prohibited from commencing any work or expending any public funds, without the sanction of competent authority or from making any other than trifling deviations from sanction designs in the course of execution, except in case of emergency.Immediately on a work being finished, it will be the duty of the Executive Engineer (Marine) to close the accounts of it and to prepare the completion report.The Executive Engineer (Marine) will submit his accounts punctually to the audit office under the rules in force and will exercise efficient control over his Divisional Account. The Executive Engineer (Marine) is responsible for the correctness of the original records of cash and stores, receipts and expenditure, and for the submission of complete vouchers. The Divisional Accountant is responsible for the correct compilation of the accounts from the data supplied to him.The Executive Engineer (Marine) is responsible that the accounts of his Division are not allowed to fall into arrears, but if arrears or confusion arises which in his opinion can not be cleared without the assistance of Accountant General, he should at once apply for such assistance.The Executive Engineer (Marine) has a right to seek the advices of the Accountant General in all matters connected with the accounts of his division or the application of financial rules and orders concerning which there may be any doubt. It is usually be desirable, however, that he should first obtain the advice of the Divisional Accountant who is specially trained for this duty, and this should be done in writing in all cases of importance.The Executive Engineer (Marine) is responsible that the surveying and mathematical instruments in his division are properly cared for, and will report on their condition to the Director of State Ports at the end of each working season. Any injury to the instruments due to neglect or carelessness should be made good at the expense of the officer or subordinate responsible for the damage.The Executive Engineer (Marine) is the drawing, disbursing and controlling officer for the staff working under him (G.O.Ms.No. 345, P.W.D., dated 22-3-1969 and G.O.Ms.No. 679, dated 12-6-1975).The Executive Engineer (Marine) shall exercise the powers vested with relevant codal provisions as may be amended from time to time. He is vested with the same powers as the Executive Engineers of Public Works Department.5.Executive Engineer (Mechanical) Kakinada.

He is responsible for administrative control of the Mechanical Division and the Sub-Division at Kakinada besides the Electrical staff allotted to this division, and the Port Workshops at Kakinada and Machilipatnam. He is responsible for the execution of all Mechanical works both capital and maintenance of all the Minor and Intermediate Ports of Andhra Pradesh State unless ordered otherwise by the Director of State Ports. He is in-charge of all the floating craft and mechanical installations of the Port Department.He is vested with the same powers as the Executive Engineers of Public Works Department and shall exercise the powers vested within the relevant codal provisions as may be amended from time to time.He has to maintain the floating crafts of the department in good and seaworthy condition.He has to arrange dredging programmes in consultation with the respective Port Officers. He has to ensure that maximum out-put is maintained by the most economical methods.He has to be in-complete charge of the Departmental Port workshops and ensure their proper maintenance etc.He is responsible for purchases and maintenance of the Marine Stores and proper maintenance of accounts etc. within relevant codal provisions.He should immediately report to the S.E. (Marine) any serious loss of moveable and immovable properties caused by any accident or unusual occurrence.He will submit the accounts punctually to the audit office under the rule in force and will exercise efficient control over the Divisional Accountant.He is responsible for the correctness of the original records of cash and stores, receipts and expenditure and submission of complete vouchers. The Divisional Accountant is responsible for correct compilation of accounts from the date supplied to him.He is responsible that the accounts of his division are not allowed to fall into arrears, but if arrears or confusion arises which in his opinion can not be cleared without the assistance of the Accountant General, he should at once apply for such assistance.He has a right to seek the advice of the Accountant General in all matters connected with the accounts of his division or the application of financial rules and orders concerning which there may be any doubt. It will usually be desirable, however, that he should first obtain the advice of the Divisional Accountant who is specially trained for this duty, and this should be done in writing in all cases of importance.He is responsible that the surveying and mathematical instruments in his division are properly cared for, and will report on their condition to the S.E. (Marine) at the end of each working season. Any injury to the instrument due to the neglect and carelessness should be made god at the expense of the officer or sub-ordinate responsible for the damage.He is the drawing, disbursing and controlling officer for the staff working under him. (G.O.Ms.No. 345, P.W.D., dt., 22-3-1969 and G.O.Ms.No. 679 dated12-6-1975.).6.Labour Officer and Personal Assistant to the Director of State Ports.

This Officer is generally deputed from the State Labour Department and of the Cadre of District Labour Officer. He shall be directly under the control of the Director of State Ports and be responsible to him for the administration of Port Department, and assist the Director of State Ports in all matters of administrative nature.He is responsible for attending to all labour problems arising at any of the Minor and Intermediate Ports of Andhra Pradesh and deal with such matters for obtaining amicable settlement, in consultation with the respective Port Officer and if necessary, with the Director of State Ports

:: CARGO HANDLING

CARGO SPECTRUM

Kakinada Anchorage Port:

Imports:

Murate of Potash

Rock Phosphate

Industrial Salt

Urea

Crude Palm Oil

Exports:

Rice

Wheat

Maize

Soya bean Meal

Soya bean Retraction

Rice bran Extraction

Sand

Cement

Kakinada Deep Water Port

Imports:

Edible Oils

POL (Naphthalene, HSD, SKD, Furnace Oil)

Chemicals (Phosphoric Acid, Sulphuric Acid)

Gases (Ammonia)

Dry Cargo (Wood Pulp, Machineries) Project Cargo(ODCS and heavy lifts)

Exports:

Iron Ore

Cement Clinker

Minerals (Bentonite, Feldspar)

Lighterage:

Crude Oil.

CARGO GROWTH

Kakinada Anchorage Port

YearNo. Of ShipsCargo (In Lakh Tonnes)

2000

164

13

2001

92

5

2002

62

8

2003

234

24

2004 - 2005

158

18

2005 - 2006

195

28

2006 - 2007

251

38

2007 - 2008

298

40

2008 - 2009

228

22

2009 - 2010

123

8

2010 - 2011

125

11

Kakinada Deep Water Port

YearNo. Of ShipsCargo (In Lakh Tonnes)

2000

255

15

2001

318

18

2002

508

18

2003

571

35

2004

555

56

2005

1,176

105

2006

1,343

128

2007

1,398

122

2008

2,142

126

2009

3,755

145

2010

2,876

119

2011

2,174

108

::REVENUE EARNINGS

REVENUE DERIVED

Kakinada Anchorage PortYearAmount (In Crores)2000

6.34

2001

4.03

2002

3.01

2003

7.04

2004

4.56

2005

5.66

2006

10.96

2007 - 08

20.00

2008 - 09

16.88

2009 - 10

11.31

2010 - 11

16.37

Kakinada Deep Water PortYearAmount (In Crores)2000

11.00

2001

16.00

2002

4.50

2003

7.75.

2004

14.29

2005

17.03

2006

EXPORTS

1. Aluminium Roofing Sheets

2. Bentonite

3. Cement

4. Cement Clinker

5. Cigarettes

6. Construction Material

7. Cotton Seed Extractions

8. Cotton Seed Meal

9.Crude oil(Coastal)40. Sand

10. Crushe bones, harms, hoofs41. Sesame Cake Extractions

11.Feldspar42. Sesame Seed Extractions

12. Fibre43. Soap Needles

13. Fish Meal44. Sorghum

14. Fruit Jam45.Soya beanExtractions

15.Fruit Juice46. Soya bean Flakes

16.Ground nutExtractions47. Soya bean Meal

17. Ground nut Kernal48. Stone Dust

18. Ground nut Meal49. Steel Pipes (Galvanised)

19. Illepe Extractions50. Sugar

20. Illuminated Sand51. Sunflower Extractions

21. Iron Ore52.Sunflower Seed

22. Machine Tools53. Sunflower Seed Extractions

23. Maize54. Tea

24. Mango Kernal Extractions55. Tipiaca Chips

25. Mango Kernals56. Tobacco

26. Mica57. Topiaca dried Chips

27. Onions58. Turmeric

28. Organic Manure59. Wheat

29. Palm Kernal Extractions60.Wheat Bran

30. Palmyrah Fibre61. Wheat Flour

31. Paper62. Yellow Corn

32. Rape Seed Extractions63. Yellow Maize

33. Rape Seed Meal64. Organic Manure

34. Red Chillies65. Project Material

35. Rice

36. Ricebran Extractions

37. Salseed Extractions

38. Salseed Extractions (Dollet)

39. Salseed Pellets

IMPORTS

1.Ammonium Sulphate

2. Cement

3. CrudePalm Oil

4. D.A.P

5. Fertilizer of all kinds

6. H.P.K

7.Industrial Salt

8. L.P.G

9. M.O.P

10. N.P.K.

11. Palm Kernals

12. Peas

13. Potassium Chloride

14. Rape Seed

15. RawRice Bran

16. RBD Palmolein

17. Rice

18. Rock Phosphate

19. Solar Common Salt

20. S.O.P

21. Soyabean Seed

22. Sugar

23. Sulphate of Potash

24.Sunflower Oil

25. Tea

26. Urea

27. Wheat

::FUTURE DEVELOPMENTS

PROPOSALS FOR DEVELOPMENT OF KAKINADA ANCHORAGE PORTThe Anchorage Port under control of Government of Andhra Pradesh is handling at present about 2.0 Million Tonnes of Cargo per annum. The Port has requisite backup infrastructure such as Wharves/Jetties, Transit Sheds Open stack yards and other amenities likeWater and Powersupply, Road and Rail links.The revenue earnings of the Port are mainly from Port dues, L&S dues. Registration and Renewal fees from steel barges/fishing boats. Rentals on departmental godowns, T. Sheds and Port lands. To enhance the revenue of the Port Department, the existing cargo handling capacity of the Port has to be increased. For this, various measures are to be taken up.To know the exact measures to be taken up for enhancing the cargo handling capacity of the Port and there by its revenue, it is necessary to critically analyse existing infrastructure so as to suggest steps to be taken up.For this a detailed project report on the existing infrastructure and steps to be taken up for enhancing the cargo handling capacity is to 3.5Million tones is presented in detail as below :DEVELOPMENT PROPOSALS FOR ANCHORAGE PORT TO HANDLE 3.5 MILLION TONNES PER ANNUMI.STATUS OF WHARVES:

(A.) BURMAH SHELL WHARF

1. Length of the Wharf: 100 Mts.2. Year of Construction: Not known (Appx. 50 years back)3. Type of Construction: Design particulars not known,R.C.C. piled structures with hard surfaced backup area.4. Status of Wharf: Manual operations5. Type of cargo handled: Exports (baggage):- Rice,Wheat, Maize,Rice bran, Cement, Soya beans, Sugar,6. Present pattern of allotment Wharf to shippers: Allotment is based on first come first serve.7. Problems in Mechanical:Due to pressure from shippers handlingMechanical handlingwas permitted since 1995 by placing steel plates underneath the proclainers for uniform distribution of load up to safe limits. Inspite of all precautions, the area adjacent towharf sunk by about 40Cms. Hence, Mechanical operations stopped and at present manual operations are going on.8. Extent of availability of stacking area behind the Wharf: 3,000 Sq.Mts. of hard surfaced area.9. No. of barges can be andled on this Wharf: 3 Barges of 400 T. capacity can be handled simultaneously.10. Rate of handling - manual: 10 Hours/barge of 400 T.11. How to improve the efficiency: The wharf is used at present for export cargo by manual means. For using the wharf for import cargo, the wharf is to be strengthenedand following measures are to be dopted for mproving cargo fficiency.- By Introducing Mechanical operations.- By Constructing five loading platforms of size 32 Mts. x 8 Mts. each.- By Increasing the backup area for stacking the cargo.If import cargo is permitted the following cargo can be handled :Urea,DAP(Diammonium Phosphate), MOP (Murate of Potash),Industrial Salt, Rock Phosphate.(B).NEW PORTAREA WHARF

1. Length of the Wharf: 613 Mts.2. Year of Construction: The Wharf Constructed in different spells starting from 1970 to 1985 as a part of development scheme under plan grant.3. Type of Construction: The Construction of Wharf comprised driving of continuous RCC interlocking sheet piles driven upto (-) 8.95 Mts. These piles have been anchored by means of anchor piles. The area behind the Wharf is filled up with the sea sand, gravel and hard surfaced at the top.4. Status of Wharf:The Wharf is designed to take a surcharge load of 2 T./M. and thereby its usage is restricted to the manual operations upto 14 Mts. Behind the Wharf. Rest of the area in between the Railway siding and Wharf is to be used for movement of trucks.5. Type of cargo handled: (a) Exports (By Manual) Rice, Maize, Rice bran, Cement, WheaT, Soya bean. At loading platform Sand.(b) Imports - At loading Platforms Urea, MOP ( Murate of Potash) Rock Phosphate, Industrial Salt DAP (Diammonium Phosphate) Potassium Chloride.6. Present pattern of allotment of Wharf to shippers: Based on the availability, on first come first serve basis, and as per shippers requirement.7. Problems in Mechanical handling:As the 14 M. long backup areabehind the wall could not take the load beyond 2 T/M., the facility is restricted to manual operations only nd the proclainers are not permitted because of its limitations to operate heavy machines on it. To overcome this difficulty and to increase the rate of handling the argo by mechanical means, three umber of platforms were onstructed during 12/2002 pposite to T-Sheds A, B & C long the Wharf Wall in New Port rea.8. Stacking area behind the Wharf: Stacking of any materials are not allowed behind the Wharf up to 14 Mts. Beyond 14 Mts. the area available is being used for plying of lorries for loading and unloading of cargo to barges as well as to railway wagons and Transit sheds.9. No. of barges can be loading handled on thisWharf:In the area available for three platforms. 3 Barges can be handled at a time for imports. In the rest of the area, 14 Nos. of barges can be handled at a time for Imports /Exports.10. Rate of handling: (a) Manual - 10 hours / barge of 400 T.(b) Mechanical 5 hours / barge of400 T.11. How to improve the efficiency:- By introducing Mechanical operations.- By constructing three additional loading platforms of size 32 Mts.x 8 Mts. each.12. Limitations:At present most of the cargo handled in New Port Area is export cargo. The export cargo are Rice, Maize, Wheat, Soya Bean, Cement, Rice Bran. These cargoes are baggaged cargoes. The baggaged Crgo are handled by manual. import cargoes such as Rock Phosphate, Industrial Salt, Fertilizers are bulk cargoes, and these cargoes cannot be handled in New Port Area, where already baggaged cargoes are handled so to prevent contamination of ediblecargo.(C). MATTI POOL WHARF

1. Length of the Wharf: Two wharves of length 44 M. and 27 Mts.2. Year of Construction: Not known (Appx. 50 years back)3. Type of Construction:Design particulars not known, R.C.C. piled structures with hard surfaced backup area4. Status of Wharf: Manual operations5. Type of cargo handled:Mostly Import Cargo - Rock phosphate and Industrial Salt.6. Present pattern of allotment of Wharf to shippers: Allotment is based first serve basis7. Problems in Mechanical handling:Wharves were constructed long back, Technical designs are not available. In the absence of technical details, safety of the structure cannot analysed for allowing mechanical operations.8. Stacking area behind the Wharf: 5,000 Sq.Mts. of hard surfaced area.9. No. of barges can be handled on this Wharf:3 Barges of 400 T. capacity can handled simultaneously.10. Rate of handling: 10 Hours/barge11. How to improve the efficiency: - By introducing Mechanical operations.- By constructing three loading platforms of size32 Mts. x 8 Mts.each.12. Limitations:The area falls out side ISPS Compound Wall. For developing this Wharf separate Perimeter Wall is to be constructed.

::OUR VISION

The minor ports ofAndhra PradeshPort Department handled 15 Million Tonnes of Cargo during 2005 and is the 2 nd Highest Cargo handling State in Union India.

The A.P. State has prepared a perspectivedevelopment planin its vision 2020 document for development of Ports according to which 50 Million Tonnes of Cargo by 2009 and 173 Million Tonnes of Cargo by 2020 is programmed to handle

Granite Blocks

We are query owners' representative in Karimnagar. Karimnagar is world famous for Granite Blocks- Tan Brown Colour, Maple Red Colour, Black Colour. You are most welcome tovisit Indiaalong with your Geologist/ Marker. We offer fresh Granite Blocks infront of you from our mines and friend mines. We also give maximum allowance up to 20 cm in cubic meter. Karimnagar is 150 km from Hyderabad. From Hongong to Hyderabad it is 6 hours journey on flight, If you are interested to buy our blocks, Our representative will come and escort you from Hyderabad airport till Karimanagar hotel. We can also arrange Chinese food, Chinese translation and other facilities. We make your Hotel, mine visit, selection of blocks, transportation from mine to Kakinada port, export formalities, loading on the ship and other work for you. Regular vessels of PUY VASH, GST etc.., are available from Kakinada to Xiamen and Shibu ports. Our rates are cheaper by 10-20% than your local prices of similar Blocks.The southern India holds a majormarket shareofgranite blocks exportsto China, Taiwan, Japan and Italy and out of the total volume china takes about 80%.

Out of 1.5 million tons per year to the far eastern ports, 1.2 million tons are handled by A.S.SHIPPING as break-bulk cargo.Customized infrastructure with all mechanical devices have been created by the company at Ongole in Andhra Pradesh to efficiently handle the orerations.

With regard to Export of Granite Blocks to various destinations, A.S.Shipping AgenciesPrivate Limited, has Stockyards at the following places viz., Surareddy PalemRailway yard, A.P., Numbal Granite Stockyard, Chennai, Dockyard inside Chennai Harbour, Granite Stockyard at Visakhapatnam, A.P. & the Granite Stockyard at Kakinada Deep Sea Port, A.P.Our Customer's can choose their nearest Stockyards, whereby they can cut down on their Transportation, handling and the most important being the time saved with respect to Transportation of Rough Blocks from Quarries to the Stockyards for Export.Movement of Granite Blocks are also carried out through Railway Wagons from Surareddy Palem & Karim Nagar to Chennai & Kakinada Ports.

Total logistic support is provided to our customers from the mines to the final destination.Our services includeloading and unloadingat the mine site, road/rail transportation, loading of cargo into the ship andocean freight forwardingto the destination from chennai.

To destinations like Bangkok, Port Kelang, Shangai, Northern Europe and Australia, where break-bulk serviceis not feasible, granite blocks are containerised and moved.

To containerise the blocks, equipments with exclusive facilities have been created at our chennai CFS and we handle about 600 teus per mont

Break Bulk LinerWe are the Agents in India for GenShipping PacificPte Ltd., based in Singapore.A Fleet of Seven Multipurpose Ships of 18500 DWT are operational and they are Fitted with Heavy Gear to handle up to 120 MT Lifting Capacity.We can handle any Type / Volume of Cargo ranging from Rough Granite Blocks, Crates, Skids, Bales, Bundles, either in Packed or in Unpacked Condition.All the Vessels are fitted with TWEEN-DECK to facilitate the handling of Over Dimension Cargo.

ExportWe Export Granite Blocks on behalf of Shippers in Break Bulk to Far-East Ports like XIAMEN, HONGKONG, SHIHU, etc., Granite Blocks are exported by us through other line vessels also to MARINA DI CARRARA, ANTWERP, HUALIEN, PASAJES, VIGO and other European Ports. More than 90% of Granite Blocks which are exported to Far-East Countries are only through us.Apart from Chennai we are arranging shipments of Granite Blocks from Kakinada & Vizag ports also. At Chennai Port our vessels are available thorough out the year for shipment.On an average 10,00,000 MT of granite blocks are exported as Break Bulk Cargo through us.On an average we handle 6000 containers of Granite Blocks in a year.Apart from the break bulk services, we are also providing C&F agency for shipment of Granite Blocks and Granitefinished Productswhich are containerized & Exported to all destinations of the world.

Granite Yard>

Product Specification

In order to cater to the varied requirements of our valued patrons, we have constructed a capaciousGranite Yard.This yard is constructed in segmented form so as to ensure a safe and categorical arrangement of granite stone. Furthermore, we have installed various hi-tech machines in our yard to load and transport large blocks of stone in an efficient and safe manner. Additionally, ourGranite Yardis constructed in compliance with all set regulations of this field.Features:Highly spaciousSophisticated machinesSegregated construction

Act Stock YardNext >>

Product Specification

We have developed a highly capaciousAct Stock Yard.This yard is constructed in segregated form so as to ensure that sourced act stock is stored in an organized manner. We also make sure that our yard has all required safety guidelines. This is done to make sure that material as well as our working personnel remain in safe condition. Adding to this, we have installed some highly sophisticated machines in ourAct Stock Yardso as to transit the material in safest possible manner.

Graniet LoadingExports are key to the economic survival of a nation. Exports not only help a country earnforeign exchange, they help create jobs, peace, prosperity, and the power to influence.To be successful in exporting and importing, it helps to know why so many export and importbusinesses do not succeed. Success cannot be rushed by high hopes. Rather, it comesincrementally.The success of an export business is often attributed to luck. Work harder and there wilExports l be moreluck. The export success of Taiwan, China, Japan, South Korea, Germany and other exports countries not a miracle, it is the result of hard work. The business miracle will not happenwithout working hard. However, success cannot be rushed by hard work.The events in a large number of export offices worldwide are comparable to the events in afootball game. It is not unusual to see colleagues kicking responsibilities back and forth, just likefootball players do the ball. It is important that employees' responsibilities are clearly spelled outand that systems of operation are flexible in order to accommodate the rapidly changing needs ofworld markets.Dangers of Imbalance in International TradeTrade surplus---favorable balance of trade---is an excess of exports over imports.Tradedeficit---unfavorable balance of trade---is an excess of imports over exports. In layperson'sparlance, the trade surplus means earn more and spend less, while the trade deficit means spendmore and less.The trade surplus and deficit is analogous to one person's fortune is another person's misfortune.The danger is imminent in either situation. A country with a record trade surplus is oftenthreatened with sanctions and trade barriers from a deficit-ridden importing country. A countrywith a record trade deficit is usually faced with the internal social upheaval.The imposition of trade barriers, such as import quotas and higher duties, isnota solution tomeeting the international challenge. The trade barrier will be confronted with a trade retaliation.A trade retaliation will be faced with a counter-retaliation. The conflict will not end if anagreement is not reached. The remedy to beat the trade imbalance is to understand foreigncultures and business practices, and to provide competitive products and services.It is a good practice to diversify export markets. Concentrating exports to only a few marketsposes imminent danger to an exporting country. Too much export concentration in a marketusually invites protectionist trade laws from the importing country. In case the importing countryimposes sanctions, the effect to the economy of the exporting country and the livelihood of itspeople can be devastating.1

:: PORT CHARGES

PORT CHARGES at KAKINADA ANCHORAGE PORT

LANDING FEES

Sl.No.

Commodity

Unit of Charges

Rates Fixed Rs. Ps.

(1)

(2)

(3)

(4)

1

Fertilizers all kinds in bags or bulk

M.Tons

29.00

2

Rock Phosphate in bulk

M.Tons

29.00

3

Cement in bags/Cement Clinker

M.Tons.

23.00

4

Rice in bags or bulk + sugar

M.Tons

29.00

5

Articles or goods not specifically enumerated in the schedule (other than passengers & Seamens baggage, ship provisions and stores)

M.Tons

29.00

6

Canal Borne cargo and/or passengers

Boat load

69.00

7

Timber or Bamboos in rafts (canal borne traffic)

Rft. Of 10 Sq.m or part thereof

69.00

8

Liquified Petroleum Gas

1 CM

132.00

9

Steel Pipes

1 CM

35.00

10

Crude Oil

1000 Lts

69.00

SHIPPING FEES

Sl.No.

Commodity

Unit of Charges

Rate Fixed Rs. Ps.

(1)

(2)

(3)

(4)

1

Iron Ore, Manganese Ore, Ferro Manganese Slag, Barytes Quartz, Gypsum, Pig Iron and all other ores in bulk

M.Tons

23.00

2

Feldspar,

M.Tons

29.00

3

Granite Stones/Blocks

M.Tons

35.00

4

Coal

M.Tons

29.00

5

Coking Coal, Lam Coal, Steam Coal

M.Tons

29.00

6

Thermal Coal

M.Tons

29.00

7

Rice Bran, Crushed bines, Horns, Hoofs, Palmyra Fiber

M.Tons

29.00

8

Groundnut Kernels

M.Tons

29.00

9

Rice in bags or bulk

M.Tons

29.00

10

Articles or goods not specifically enumerated in the schedule (other than passengers & Seamens baggag