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A SUMMER TRAINING REPORT

ON “A Study of Customer Satisfaction Regarding

Custom Clearance Service” (With Special Reference to Om Freight Forwarders)

SUBMITTED IN THE PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

(TWO YEAR FULL TIME PROGRAME) 2015-2017

SUBMITTED TO: - SUBMITTED BY: - Mr. Chandan Gupta Manish Kr. Chaurasia (Assistant Professor) MBA 3rd Semester

QUANTAM GLOBAL CAMPUS

Mandawar (22km milestone), Roorkee-Dehradun Highway (NH-73), Roorkee

Uttarakhand

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CONTENTS

Certificate from Organization 3 Acknowledgement 4 Preface 5 Executive Summery 6 Objectives of the study 7

1. About Company/ Introduction 8-20 2. About Topic 21-45 3. Research Methodology 46-50

a. Primary Data : Sampling design a) Sample area b) Sample size c) Sample unit d) Sampling Technique e) Sampling instrument

b. Secondary Data

4. Analysis & findings 51-61 5. Recommendations 62-63 6. Conclusions 64-65 7. Limitations and Scope of the Study 66

Bibliography - will list all the references 67

Annexure: will list all the graph, tables etc. as

Questionnaire Reports etc

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CERTIFICATE

This is to certify that the summer project report titled “Study of Custom Clearance

Procedure of Om Freight Forwarders” has been accomplished by Manish Kumar

Chaurasia MBA 3rd Semester under my guidance and supervision. This project is

being submitted by him in the partial fulfilment of requirements for award of the MBA Degree from Quantum School of Business, Roorkee (Uttarakhand)

This work has not been submitted by him anywhere else for the award of any degree

or diploma. All sources of information and help have been duly mentioned and acknowledged.

Mr. Chandan Gupta Dr. Sachin Chauhan

(Project Mentor) (Head of Department)

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ACKNOWLEDGEMENT

I acknowledge here Mr. Kewal Joshi Sir (Branch Manager) and Mr. Samarth

Singhal Sir (Marketing Head) who have been instrumental in preparation of my

project.

I acknowledge my gratitude to my parents whose support, dedication and honest

efforts have given me an immense help in doing this project.

I take the opportunity to thanks to Mr. Chandan Gupta Sir Assistant Professor of

Quantum School of Business, Roorkee for motivating, encouraging, guiding and

supporting at every step and sparing their valuable time for me.

I would be failing in my duty if I do not acknowledge the gratitude to Professor

Dr.Rohit Kushwaha Sir Director of Quantum School of Business, who motivated us a lot in carrying out this project.

Last but not the least I record my sincere thanks to all beloved and respectable

persons who helped me and could find any separate mention.

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PREFACE

Summer Training is the Bridge for a student that takes his theoretical knowledge

world to practical industry world, the main purpose of industrial visit to expose for

industrial and business environment, which cannot be possible in the classroom.

The advantages of this sort of Integration which promotes guided to corporate

culture, functional, social and norms along with formal teaching are numerous.

1) To bridge the gap between theory and practical.

2) To install the feeling of belongingness and acceptance.

3) To help the student to develop the better understanding of the concept and

questions already raised or to be raised subsequently during their research period.

The prevent report gives a detailed view of the Customer satisfaction regarding

Custom Clearance service and Custom Clearance Procedure of Om Freight

Forwarders. The research is definitely going to play an important role in developing

an aptitude for hard self-confidence.

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Executive Summary

A freight forwarder – often referred to as a forwarder – is a professional logistics

provider. Freight forwarders are third parties and their objective is to dispatch

shipments via asset based carriers such as ships, airplanes or trucks. The main

purpose of turning to the services of freight forwarders is arranging cargo movement to an international destination quickly and easily.

Custom Clearance services are typically used by companies that deal with

international Custom Clearance of Goods on import and export activities. The freight

forwarding company is a third party – it doesn’t ship the cargo itself. Shipping various

products between countries and territories usually involves a multitude of carriers, requirements and legal documentation.

Major companies and corporations greatly depend on professional freight forwarders in their import and export activities.

As we scale the chronological ladder of time, we find a number of industries that

have assumed significance in Indian Economy. With the rapid globalization this growth is likely to accelerate in future.

The purpose of this project is to study the services provided by Om Freight

Forwarders Pvt. Ltd. and public sector to the customers. The object was to study

about that the customer’s preference regarding Custom Clearance Service of Om Freight

It is all done by my self-study and with the help of employees and by the customers

and the services are provided by Om Freight Forwarders.

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Objective of the Study

To Study the Procedure of Custom Clearance.

To Study customer Preference Regarding Custom Clearance Service with

Special Reference to Om Freight Forwarders.

To Identify the Factors Affecting Customer Satisfaction Regarding Custom

Clearance.

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Company Profile

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Introduction

Om Freight Forwarders Pvt Ltd. is a Third generation international logistics and

freight forwarding company with over four decades of domain expertise.

Headquartered at Mumbai, India and with offices & associates across 5 continents,

we cater to over 700 unique national and international locations.

Our branches are located at major cities, commercial hubs, airports and seaports

across India. In order to meet the growing demand for a reliable global logistics

partner, we have setup our overseas offices at China, Hong Kong, UK (Europe) and

Singapore.

Om Freight Forwarders Pvt Ltd. ranks amongst India's most versatile logistics

solutions companies, adhering to stipulated custom compliances and accreditations

such as MTO, IATA and FIATA. Our strategic association with international freight

forwarders and customs brokerages allows our clients to avail a wide range of state-

of-the-art, tailor-made freight services in a timely and cost effective manner.

We can develop a detailed understanding of our clients businesses and partner them by offering end-to-end logistic, legal, and warehousing and distribution solutions.

“Empowered by a highly trained and experienced team of over 400 professionals worldwide, we constantly work towards achieving customer delight!”

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Mission To forge long-term alliances by developing a thorough understanding of our clients

businesses, their goals and aspirations and employing cutting edge technology

solutions that can enable us to be a logistics partner of choice.

Vision

Delivering Value-Customers are the life line for any business and we

constantly work towards strengthening our customer relationships and

developing newer ones. We strive to meet and exceed customer expectations

by developing and delivering highly attractive and innovative products and

services.

Quality Policy

Our Company- Om Freight Forwarders Pvt Ltd. is a rapidly expanding clearing,

freight forwarding and shipping company. Our customer-centric and people-friendly

policies are the key to our success.

We Strive Towards

Customer Satisfaction and Delight- To continuously improve our processes

and offerings so as to enable us to deliver products and services that meet

our customers' expectations.

Accountability- To take responsibility to meet our commitments, individually

collectively.

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Innovation- To encourage, recognize and reward sustainable innovation that

can help us service our clients better.

Team Work- A commitment from every employee to contribute towards the

overall success of the company and all fellow employees.

The Om Freight Family- A cohesive effort in the continuous improvement of

our Quality Management Systems and in achieving greater milestones in the

times to come.

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From the Founder Desk

Chairman- (Jagannath V. Joshi)

As an organization, our values and morals have been the guiding light for our

actions. We have been through a constant phase of transformation right from

inception. Germination to growth and growth to branching out, ours has been a

journey.

Starting off with custom clearance, we have swiftly moved across domains,

geographies and industries to offer a gamut of services for the logistics industry. Our

sustained growth has been fuelled by the undying passion of our people.

Our clients are our friends and allies and we believe in growing together by offering

them careful guidance and services through the experience we have gathered over

the past four decades.

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Managing Director-(Rahul J. Joshi)

Under the table guidance and mentorship of our visionary chairman, Om Freight has

grown from strength to strength over the years. We started off as a customs clearing

agency over four decades ago and have gradually blossomed into a full-fledged

international logistic company

our clients have been our greatest motivators and our pillars of strength. We respect

our relationship with each one of them and try to strive for a little extra in everything

we do for them.

Our dedicated staff members are the backbone of our successes and none of the

milestones would have been possible without immense contribution and dedication

on their part.

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About Us/ Group Companies

In order to efficiently service the varied demands of our industry and our customers,

we have established the following group companies under the aegis of Om Freight

Forwarders Pvt. Ltd.

Oscar Freight Pvt. Ltd.

Oscar Infrastructure Logistics Pvt. Ltd.

Om Freight Forwarders Infrastructure Logistics Pvt. Ltd.

Together, we offer end-to-end legal, logistical, warehousing and distribution solutions for our distinguished clientele.

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The Services of Om freight forwarders-

Customs House (India Agent)

Freight Forwarding International - Air and Sea

Charter Services

Project Logistics

Nominated Cargo

Bonded Trucking and Trans Shipping

Domestic Transportation - Road Transportation

Inventory Warehousing and Distribution

Third Country Export (Cross Trade)

Post Shipment Activities

Export Import License - DGFT Licensing

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Custom House Agent (India Agent)

Om Freight Forwarder Pvt. Ltd. is your India agent offering complete Import and

Export customs clearance services at all major air and sea ports in India.

With over four decades of operation & Handling expertise, we combine extensive

customs clearing and forwarding experience with the latest in information

technology.

We adhere to strict customs compliance and quality policy for all our operations;

thereby eliminating delays and providing reliable service to our customers worldwide.

We are hands-on with the latest in customs compliances, regulations and

procedures and offer clearance of import and export consignments by sea, air and

road.

Our Services in Customs Clearing Include

Guidance for preparing import and export related documents as per customs

compliance

Completion of appraisement and examination procedures and payments

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As Your India Agent, We Provide the Following Services Import Services

Routine shipment, Home consumption (Duty paid)

In-Bond/Ex-Bond shipment

Project import clearance

Direct delivery for perishable & specific cargo

Re-import after repairs / exhibition

Third country export clearance

High seas sale shipment clearance

Second hand capital goods

Free-of-charges shipments

Courier clearance

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Export Services

Under free shipping bill

Under claim for duty drawback. (All industry rate / brand rate) of dutiable

goods

Under DEPB shipping bill (duty exemption pass book)

Under EPCG (export promotion capital goods)

Co-ordination with various authorities such as inspection agencies,

consulates, quota authorities insurance companies etc.

Securing export benefits on behalf of shippers.

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Freight Forwarding International - Air and Sea Clearing and Forwarding (C&F) Om Freight moves more than 8000 TEU's of cargo for over 50 corporate clients

worldwide. Our C&F services spell ease, flexibility and professionalism. A robust

process and service model ensure continuous information exchange between our

international and local associates.

We guarantee the best standards in customer service with cost effectiveness and

time bound deliveries. Our door-to-door services for all C&F assignments add to

overall customer satisfaction.

Our long term service contracts with many freight forwarding - shipping lines and

freight forwarding international airlines ensure confirm shipments on pre-confirmed

dates and at reduce cost.

Rely on Om Freight Forwarders Pvt Ltd.

Complete documentation and customs house brokerage services under one

roof

Warehousing and distribution throughout India

Expedited delivery services

Total cargo monitoring with complete vessel detail

DDU and DDP processing

Worldwide network of agents servicing every major airport / seaport in the

world

Single source clearance for all your transportation, customs and delivery

requirements

Efficient customer support

Competitive rates

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Flight details/ pre-arrival notice

Confirmed free time at seaports

Container unloading, pollicisation and trucking to any destination in India

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Introduction to the Topic

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Custom Clearance

Meaning and Definition

Customs clearance work involves preparation and submission of documentations

required to facilitate export or imports into the country, representing client

during customs examination, assessment, payment of duty and co taking delivery of cargo from customs after clearance along with documents

Customs Departments are the government designated authority to implement the

policies related to import and export, collect customs duties and facilitate movement of people, goods, and cargo into and out of the country.

Area of Operations and Authority

Customs departments have offices at all seaports, airports and border gateways that

are essentially the exit and entry points for people and cargo movements into and

out of the country.

Customs agencies are empowered to make arrests, confiscate goods and enjoy

powers similar to that of police departments.

Customs and Trade Logistics

Every country annually publishes its policy for Foreign Trade, which stipulates the

conditions under which goods and services are eligible to be exported or imported.

Customs departments implement the provisions of the policy under customs rules,

regulations and tariffs.

Imports in many countries may be allowed freely, or some categories may be

permitted with due licenses. Many items are also published as banned for import and

not allowed entry into the country.

All of the items imported into the country have to be custom cleared. This applies to

the items brought in as personal effects and also imported by trade and business

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establishments including governmental and defense agencies. Necessary stipulated

duties would have to be paid before the goods are released by Customs.

Cargo imported into the country from any point of entry is warehoused at Customs

bonded area under customs jurisdiction until it is released after clearance

Imports and Customs Clearance

Freight Forwarders who coordinate the international transportation also provide

customs clearance services to the clients. The activity is called customs brokerage.

Customs clearance work involves preparation and submission of documentations

required to facilitate export or imports into the country, representing client during

customs examination, assessment, payment of duty and co taking delivery of cargo

from customs after clearance along with documents.

Some of the documents involved in customs clearance are:

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Exports Documentation:

Purchase order from Buyer

A purchase order is a commercial document and first official offer issued by

a buyer to a seller, indicating types, quantities, and agreed prices for products or

services. It is used to control the purchasing of products and services from external

suppliers. Acceptance of a purchase order by a seller forms a contract between the

buyer and seller, and no contract exists until the purchase order is accepted.

Sales Invoice

A sales invoice can be simply defined as the request of payment by the customer for

goods sold or services provided the seller. An invoice generally lists the description

and the quantity of the item sold or service provided. The document is also a record

of the sale for both the seller and the buyer.

Packing List

A packing list is a document that includes details about the contents of a package.

The packing list is intended to let transport agencies, government authorities, and

customers know the contents of the package. These details help each of these

parties handle the package accordingly.

Bill of Lading or Airway Bill

Airway bill is a transport Documents associated with Airfreight Is serves as receipt of

goods and an evidence of the contract of the carriage

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Imports Documentation:

Purchase Order from Buyer

A purchase order (PO) is a commercial document and first official offer issued by a

buyer to a seller, indicating types, quantities, and agreed prices for products or

services. It is used to control the purchasing of products and services from external

suppliers.

Sales Invoice of supplier

An invoice, bill or tab is a commercial document issued by a seller to a buyer,

relating to a sale transaction and indicating the products, quantities, and agreed

prices for products or services the seller had provided the buyer. Payment terms are

usually stated on the invoice.

Bill of Entry

An account of goods entered at a customs house, of imports and exports, detailing

the merchant, quantity of goods, their type, and place of origin or destination. It is

issued by the customs presenting the total assigned value and the corresponding

duty charged on the cargo.

Bill of Lading or Airway bill

Bill of lading under sea shipment or Airway bill under air shipment is carrier’s

document required to be submitted with customs for import customs clearance

purpose. Bill of lading or Airway bill issued by carrier provides the details of cargo

with terms of delivery.

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Packing List

A packing list is a document that includes details about the contents of a package.

The packing list is intended to let transport agencies, government authorities, and

customers know the contents of the package. These details help each of these

parties handle the package accordingly.

Certificate of Origin

A Certificate of Origin (CO) is an important international trade document attesting

that goods in a particular export shipment are wholly obtained, produced,

manufactured or processed in a particular country. COs also constitute a declaration

by the exporter.

Customs Agents prepare the document of Shipping Bills in the house for

submission while rests of the documents are obtained from the client.

Preparing shipping bill involves Classification of cargo under specific

classification that is a critical activity in the entire process.

Customs clearance agents are also called Carrying and Forwarding agents. They

are registered and licensed by Customs to operate. Their role is limited to acting on

behalf of and representing clients as third party agencies engaged in customs

clearance.

Customs Agents are linked through EDI with customs in most of the countries and

use documentation software to facilitate entire process.

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Procedure for Clearance of Import and Export of Goods

Import:

Bill of Entry – Cargo Declaration: Goods imported in a vessel/aircraft attract customs duty and unless these are not

meant for customs clearance at the port/airport of arrival by particular vessel/aircraft

and are intended for transit by the same vessel/aircraft or transhipment to another

customs station or to any place outside India, detailed customs clearance formalities

of the landed goods have to be followed by the importers. In regard to the transit

goods, so long as these are mentioned in import report/IGM for transit to any place

outside India, Customs allows transit without payment of duty. Similarly for goods

brought in by particular vessel aircraft for transhipment to another customs station

detailed customs clearance formalities at the port/airport of landing are not

prescribed and simple transhipment procedure has to be followed by the carrier and

the concerned agencies. The customs clearance formalities have to be complied

with by the importer after arrival of the goods at the other customs station. There

could also be cases of transhipment of the goods after unloading to a port outside

India.

Assessment Section 17 provides that assessment of goods will be made after Bill of Entry is filed.

Date stamp of receipt is put on the ‘Bill of Entry’ and then it sent to appraising

department either manually or electrically.

There are various Appraising groups for different chapter heading. Each group is

under an Assistant/Deputy commissioner. Group consists of “Examiners and

Appraiser”

EDI Assessment Examination of Goods

Green Channel facility

Payment of Duty

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Amendment of Bill of Entry

Prior Entry for Bill of Entry

After the goods are unloaded, these have to be cleared within stipulated time usually

three working days. If these are not so removed, demurrage is charged by port

trust/airport authorities, which is very high. Hence, importer wants to complete as

many formalities as possible before ship arrives. Provision to section 46(3) of custom

act allows importer to present bill of entry up to 30 Days before expected date of

arrival of vessel. in such case, duty will be payable at the rate applicable on the date

on which Entry inward is granted to vessel and not the date of presentation of Bill of

Entry, but the rate of Exchange will be as prevalent on date of submission of bill of

entry.

Specialised Schemes

Bill of Entry for Bond/Warehousing For other goods, which are offloaded importers, have the option to clear the goods

for home consumption after payment of the duties liveable or to clear them for

warehousing without immediate discharge of the duties liveable in terms of the

warehousing provisions built in the Customs Act. Every importer is required to file in

terms of the Section 46 an entry (which is called Bill of entry) for home consumption

or warehousing in the form, as prescribed by regulations.

If the goods are cleared through the EDI system no formal Bill of Entry is filed as it is

generated in the computer system, but the importer is required to file a cargo

declaration having prescribed particulars required for processing of the entry for

customs clearance.

The Bill of entry, where filed, is to be submitted in a set, different copies meant for

different purposes and also given different colour scheme, and on the body of the bill

of entry the purpose for which it will be used is generally mentioned in the non-EDI

declaration.

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The importer clearing the goods for domestic consumption has to file bill of entry in

four copies; original and duplicate are meant for customs, third copy for the importer

and the fourth copy is meant for the bank for making remittances.

In the non-EDI system along with the bill of entry filed by the importer or his

representative the following documents are also generally required: -

Signed invoice

Packing list

Bill of Lading or Delivery Order/Airway Bill

GATT declaration form duly filled in

Importers/CHA’s declaration

License wherever necessary

Letter of Credit/Bank Draft/wherever necessary

Insurance document

Import license

Industrial License, if required

Test report in case of chemicals

Adhoc exemption order

DEEC Book/DEPB in original

Catalogue, Technical write up, Literature in case of machineries, spares or

chemicals as may be applicable

Separately split up value of spares, components machineries

Certificate of Origin, if preferential rate of duty is claimed

No Commission declaration

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Import Procedure: Import trade refers to the purchase of goods from a foreign country. The procedure

for import trade differs from country to country depending upon the import policy,

statutory requirements and customs policies of different countries. In almost all

countries of the world import trade is controlled by the government. The objectives of

these controls are proper use of foreign exchange restrictions, protection of

indigenous industries etc. The imports of goods have to follow a procedure. This

procedure involves a number of steps.

The steps taken in import procedure are discussed as follows:

Trade Enquiry:

The first stage in an import transaction, like any other transaction of purchase and

sale relates to making trade enquiries. An enquiry is a written request from the

intending buyer or his agent for information regarding the price and the terms on

which the exporter will be able to supply goods.

The importer should mention in the enquiry all the details such as the goods

required, their description, catalogue number or grade, size, weight and the quantity

required. Similarly, the time and method of delivery, method of packing, terms and

conditions in regard to payment should also be indicated.

In reply to this enquiry, the importer will receive a quotation from the exporter. The

quotation contains the details as to the goods available, their quality etc., the price at

which the goods will be supplied and the terms and conditions of the sale.

Procurement of Import License and Quota:

The import trade in India is controlled under the Imports and Exports (Control) Act,

1947. A person or a firm cannot import goods into India without a valid import

license. An import license may be either general license or specific license. Under a

general license goods can be imported from any country, whereas a specific or

individual license authorizes to import only from specific countries.

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The Government of India declares its import policy in the Import Trade Control Policy

Book called the Red Book. Every importer must first find out whether he can import

the goods he wants or not, and how much of a certain class of goods he can import

during the period covered by the relevant Red Book.

For the purpose of issuing license, the importers are divided into three categories:

Established importer,

Actual users, and

Registered exporters, i.e., those import under any of the export

promotion schemes.

In order to obtain an import license, the intending importer has to make an

application in the prescribed form to the licensing authority. If the person imported

goods of the class in which he is interested now during the basic period prescribed

for such class, he is treated as an established importer.

An established importer can make an application to secure a Quota Certificate. The

certificate specifies the quantity and value of goods which the importer can import.

For this, he furnishes details of the goods imported in any one year in basic period

prescribed for the goods together with documentary evidence for the same, including

a certificate from a chartered accountant in the prescribed form certifying the c.i.f.

value of the goods imported in the selected year.

The c.i.f. value includes the invoice price of the goods and the freight and insurance

paid for the goods in transit. The quota certificate entitles the established importer to

import up to the value indicated therein (called Quota) which is calculated on the

basis of past imports. If the importer is an actual user, that is, he wants to import

goods for his own use in industrial manufacturing process he has to obtain license

through the prescribed sponsoring authority.

The sponsoring authority certifies his requirements and recommends the grant of

license. In case of small industries having a capital of less than Rs. 5 Lakhs, they

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have to apply for licenses through the Director of Industries of the state where the

industry is located or some other authority expressly prescribed by the Government.

Registered exporter importing against exports made under a scheme of export

promotion and others have to obtain license from the Chief Controller of Exports and

Imports. The Government issues from time to time a list of commodities and

products which can be imported by obtaining a general permission only. This is

called as O.G.L. or Open General License list.

Obtaining Foreign Exchange:

After obtaining the license (or quota, in case of an established importer), the importer

has to make arrangement for obtaining necessary foreign exchange since the

importer has to make payment for the imports in the currency of the exporting

country.

The foreign exchange reserves in many countries are controlled by the Government

and are released through its central bank. In India, the Exchange Control

Department of the Reserve Bank of India deals with the foreign exchange. For this

the importer has to submit an application in the prescribed form along-with the import

license to any exchange bank as per the provisions of Exchange Control Act.

The exchange bank endorses and forwards the applications to the Exchange Control

Department of the Reserve Bank of India. The Reserve Bank of India sanctions the

release of foreign exchange after scrutinizing the application on the basis of

exchange policy of the Government of India in force at the time of application.

The importer gets the necessary foreign exchange from the exchange bank

concerned. It is to be noted that whereas import license is issued for a particular

period, exchange is released only for a specific transaction. With liberalization of

economy, most of the restrictions have been removed as rupee has become

convertible on current account.

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Placing the Indent or Order:

After the initial formalities are over and the importer has obtained the license quota

and the necessary amount of foreign exchange, the next step in the import of goods

is that of placing the order. This order is known as Indent. An indent is an order

placed by an importer with an exporter for the supply of certain goods.

It contains the instructions from the importer as to the quantity and quality of goods

required, method of forwarding them, nature of packing, mode of settling payment

and the price etc. An indent is usually prepared in duplicate or triplicate. The indent

may be of several types like open indent, closed indent and Confirmatory indent.

In open indent, all the necessary particulars of goods, price, etc. are not mentioned

in the indent, the exporter has the discretion to complete the formalities, at his own

end. On the other hand, if full particulars of goods, the price, the brand, packing,

shipping, insurance etc. are mentioned clearly, it is called a closed indent. A

confirmatory indent is one where an order is placed subject to the confirmation by

the importer’s agent.

Dispatching a Letter of Credit:

Generally, foreign traders are not acquainted to each other and so the exporter

before shipping the goods wants to be sure about the creditworthiness of the

importer. The exporter wants to be sure that there is no risk of non-payment. Usually,

for this purpose he asks the importers to send a letter of credit to him.

A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by its issuer

(usually importer’s bank) that the bills of exchange drawn by the foreign dealer, on

the importer will be honored on presentation up to a specified amount.

Obtaining Necessary Documents:

After dispatching a letter of credit, the importer has not to do much. On receipt of the

letter of credit, the exporter arranges for the shipment of goods and sends Advice

Note to the importer immediately after the shipment of goods. An Advice Note is a

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document sent to a purchaser of goods to inform him that goods have been

dispatched. It may also indicate the probable date on which the ship is expected to

reach the port of destination.

The exporter then draws a bill of exchange on the importer for the invoice value of

goods. The shipping documents such as the bill of lading, invoice, insurance policy,

certificate of origin, consumer invoice etc., are also attached to the bill of exchange.

Such bill of exchange with all these attached documents is called Documentary Bill.

Documentary bill of exchange is forwarded to the importer through a foreign

exchange bank which has a branch or an agent in the importer’s country for

collecting the payment of the bill.

There are two types of documentary bills:

D/P, D.P. (or Documents against payment) bills.

D/A, D.A. (or Document against acceptance) bills.

If the bill of exchange is a D/P bill, then the documents of title of goods are delivered

to the drawee (i.e., importer) only on the payment of the bill in full. D/P bill may be

sight bill or usance bill. In case of sight bill, the payment has to be made immediately

on the presentation of the bill. But usually a grace period of 24 hours is granted.

Usance bill is to be paid within a particular period after sight. If the bill is a D/A bill,

then the documents of title of goods are released to the drawee on his acceptance of

the bill and it is retained by the banker till the date of maturity. Usually 30 to 90 days

are provided for the payment of the bill.

Customs Formalities and Clearing of Goods:

After receiving the documents of title of the goods, the importer’s only concern is to

take delivery of the goods, when the ship arrives at the port and to bring them to his

own place of business. The importer has to comply with many formalities for taking

delivery of goods. Unless the following mentioned formalities are complied with, the

goods lie in the custody of the Custom House.

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To obtain endorsement for delivery or delivery order:

When the ship carrying the goods arrives at the port, the importer, first of all, has to

obtain the endorsement on the back of the bill of lading by the shipping company.

Sometimes the shipping company, instead of endorsing the bill in his favor, issues a

delivery order to him. This endorsement of delivery order will entitle the importer to

take the delivery of the goods.

The shipping company makes this endorsement or issues the delivery order only

after the payment of freight. If the exporter has not paid the freight, i.e., when the bill,

of lading is marked freight forward, the importer has to pay the freight in order to get

green signal for the delivery of goods.

To pay Dock dues and obtain Port Trust Dues Receipts:

The importer has to submit two copies of a form known as ‘Application to import’ duly

filled in to the ‘Lading and Shipping Dues Office’. This office levies a charge on all

imported goods for services rendered by the dock authorities in connection with

lading of goods. After paying the necessary charges, the importer receive back one

copy of the application to import as a receipt ‘Port Trust Dues Receipt’.

Bill of Entry:

The importer will then fill in form called Bill of Entry. This is a form supplied by the

custom office and is to be filled in triplicate. The bill of entry contains the particulars

regarding the name and address of the importer, the name of the ship, packages

number, marks, quantity, value, description of goods, the name of the country

wherefrom goods have been imported and custom duty payable.

The bill of entry forms are of three types and are printed in three colours-Black, Blue

and Violet. A black form is used for non-dutiable or free goods, the blue form is used

for goods to be sold within the country and the violet form is used for re-exportable

goods, i.e., goods meant for re-export. The importer has to submit three forms of bill

of entry along-with Port Trust Dues Receipt to the customs office.

36

Bill of Sight:

If the importer is not is a position to supply the detailed particulars of goods because

of insufficiency of information supplied to him by the exporter, he has to prepare a

statement called a bill of sight. The bill of sight contains only the information

possessed by the importer along-with a remark that he is not in a position to give

complete information about the goods. The bill of sight enables him to open the

package and examine the goods in the presence of custom officer so as to complete

the bill of entry.

To pay Customs or Import Duty:

There are three types of imported goods:

Non dutiable or free goods,

Goods which are to be sold within the country or which are for home

consumption, and

Re-exportable goods i.e. goods meant for re-export. If the goods are duty

free, no import duty is to be paid at the custom office.

Custom authorities will permit the delivery of such goods after usual examination of

the goods. But if the goods are liable for duty, the importer has to pay custom or

import duty which may be based on weight or measurement of goods, called Specific

Duty or on the value of imported goods Ad-valorem Ditty.

There are three types of import duties. On some goods quite low duties are levied

and they are called revenue duties. On some others, quite high duties are charged to

give protection to home industries against foreign competition. While goods imported

from certain nations are given preferential treatment for the levy of import duties and

in their case full protective duties are not charged.

37

Bonded and Duty paid Warehouses:

The port trust and custom authorities maintain two types of warehouses-Bonded and

Duty paid. These warehouses are situated near the dock and are very useful to

importers who do not have go down of their own to store the imported goods or who,

for business reasons, do not wish to carry them to their own go downs.

The goods on which the duty has already been paid by the importer can be kept in

the duty paid warehouses for which a receipt called ‘warehouse receipt’ is issued to

him. This receipt is a document of title and is transferable. The bonded warehouses

are meant for goods on which duty has been paid by the importer. If the importer

cannot pay the duty, he may keep the goods in Bonded warehouses for which he is

issued a receipt, called ‘Dock Warrant’. Dock Warrant, also like warehouses receipt,

is a document of title and is transferable.

The bonded warehouses are used by the importer when:

He has no go down of his own.

He cannot pay the duty immediately.

He wants to re-export the goods and thereby does not want to pay the duty.

He wants to pay the duty in installments.

A nominal rent is charged for the use of these warehouses. One special advantage

of these warehouses is that the importer can sell the goods and transfer the title of

goods merely by endorsing warehouse receipt or dock-warrant. This will save the

importer from the trouble and expenses of carrying the goods from the warehouses

to his go down.

Appointment of clearing Agents:

By now we understand that the importer has to fulfill many legal formalities before he

can take delivery of goods. The importer may take the delivery of the goods himself

at the port. But it involves much of time, expenses and difficulty. Thus, to save

himself from the botheration of complying with all the complicated formalities, the

38

importer may appoint clearing agents for taking the delivery of the goods for him.

Clearing agents are the specialized persons engaged in the work of performing

various formalities required for taking the delivery of goods on behalf of others. They

charge some remuneration on performing these valuable services.

Making the Payment:

The mode and time of making payment is determined according to the terms and

conditions as agreed to earlier between the importer and the exporter. In case of a

D/P bill the documents of title are released to the importer only on the payment of the

bill in full. If the bill is a D/A bill, the documents of title of the goods are released to

the importer on his acceptance of the bill. The bill is retained by the banker till the

date of maturity. Usually, 30 to 90 days are allowed to the importer for making the

payment of such bills.

Closing the Transactions:

The last step in the import trade procedure is closing the transaction. If the goods are

to the satisfaction of the importer, the transaction is closed. But if he is not satisfied

with the quality of goods or if there is any shortage, he will write to the exporter and

settle the matter. In case the goods have been damaged in transit, he will claim

compensation from the insurance company. The insurance company will pay him the

compensation under an advice to the exporter.

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39

Multinational Corporations of India Characteristics, Growth and Criticisms

Unemployment in Developing Countries: Causes and Nature

American Merchants, Bengali Banias and Trade in the Bay of Bengal

Foreign Trade Multiplier: Meaning, Working, Assumption, Explanation, Effects and Criticisms

40

Export Procedure For clearance of export goods, the export or his agents have to undertake the

following formalities:

Registration:

The exporters have to obtain PAN based Business Identification Number(BIN) from

the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of

export goods. Under the EDI System, PAN based BIN is received by the Customs

System from the DGFT online. The exporters are also required to register authorised

foreign exchange dealer code (through which export proceeds are expected to be

realised) and open a current account in the designated bank for credit of any

drawback incentive.

Registration in the case of export under export promotion schemes:

All the exporters intending to export under the export promotion scheme need to get

their licences/DEEC book etc. registered at the Customs Station. For such

registration, original documents are required.

Processing of Shipping Bill-Non-EDI:

Under manual system, shipping bills or, as the case may be, bills of export are

required to be filed in format as prescribed in the Shipping Bill and Bill of Export

(Form) regulations, 1991. The bills of export are being used if clearance of export

goods is taken at the Land Customs Stations. Different forms of shipping bill/bill of

export have been prescribed for export of duty free goods, export of dutiable goods

and export under drawback etc.

Processing of Shipping Bill-EDI:

Under EDI System, declarations in prescribed format are to be filed through the

Service Centres of Customs. A checklist is generated for verification of data by the

41

exporter/CHA. After verification, the data is submitted to the System by the Service

Centre operator and the System generates a Shipping Bill Number, which is

endorsed on the printed checklist and returned to the exporter/CHA. For export items

which are subject to export cess, the TR-6 challan for cess is printed and given by

the Service Centre to the exporter/CHA immediately after submission of shipping bill.

The cess can be paid on the strength of the challan at the designated bank. No copy

of shipping bill is made available to exporter/CHA at this stage.

Octroi procedure, Quota Allocation and Other certification for Export

Goods:

The quota allocation label is required to be pasted on the export invoice. The

allocation number of AEPC is to be entered in the system at the time of shipping bill

entry. The quota certification of export invoice needs to be submitted to Customs

along-with other original documents at the time of examination of the export cargo.

For determining the validity date of the quota, the relevant date needs to be the date

on which the full consignment is presented to the Customs for examination and duly

recorded in the Computer System. In EDI System at Delhi Air cargo, the quota

information is automatically verified from the AEPC/TEXPROCIL system.

Arrival of Goods at Docks:

The goods brought for the purpose of examination and subsequent 'let export' is

allowed entry to the Dock on the strength of the checklist and other declarations filed

by the exporter in the Service Centre. The Port authorities have to endorse the

quantity of goods actually received on the reverse of the Check List.

System Appraisal of Shipping Bills:

In many cases the Shipping Bill is processed by the system on the basis of

declarations made by the exporters without any human intervention. In other cases

where the Shipping Bill is processed on screen by the Customs Officer, he may call

for the samples, if required for confirming the declared value or for checking

42

classification under the Drawback Schedule. He may also give any special

instructions for examination of goods, if felt necessary.

Status of Shipping Bill:

The exporter/CHA can check up with the query counter at the Service Centre

whether the Shipping Bill submitted by them in the system has been cleared or not,

before the goods are brought into the Docks for examination and export. In case any

query is raised, the same is required to be replied through the service centre or in

case of CHAs having EDI connectivity through their respective terminals. The

Customs officer may pass the Shipping Bill after all the queries have been

satisfactorily replied to.

Customs Examination of Export Cargo:

After the receipt of the goods in the dock, the exporter/CHA may contact the

Customs Officer designated for the purpose present the check list with the

endorsement of Port Authority and other declarations as aforesaid along with all

original documents such as, Invoice and Packing list, AR-4, etc. Customs Officer

may verify the quantity of the goods actually received and enter into the system and

thereafter mark the Electronic Shipping Bill and also hand over all original

documents to the Dock Appraiser of the Dock who many assign a Customs Officer

for the examination and intimate the officers’ name and the packages to be

examined, if any, on the check list and return it to the exporter or his agent.

Variation between the Declaration & Physical Examination:

The check list and the declaration along with all original documents is retained by the

Appraiser concerned. In case of any variation between the declaration in the

Shipping Bill and physical documents/examination report, the Appraiser may mark

the Electronic Shipping Bill to the Assistant Commissioner/Deputy Commissioner of

Customs (Exports). He may also forward the physical documents to Assistant

Commissioner/Deputy Commissioner of Customs (Exports) and instruct the exporter

or his agent to meet the Assistant Commissioner/Deputy Commissioner of Customs

43

(Exports) for settlement of dispute. In case the exporter agrees with the views of the

Department, the Shipping Bill needs to be processed accordingly. Where, however,

the exporter disputes the view of the Department principles of natural justice is

required to be followed before finalisation of the issue.

Stuffing / Loading of Goods in Containers

The exporter or his agent should hand over the exporter copy of the shipping bill duly

signed by the Appraiser permitting "Let Export" to the steamer agent who may then

approach the proper officer (Preventive Officer) for allowing the shipment. In case of

container cargo the stuffing of container at Dock is dome under Preventive

Supervision. Loading of both containerized and bulk cargo is done under Preventive

Supervision. The Customs Preventive Superintendent (Docks) may enter the

particulars of packages actually stuffed in to the container, the bottle seal number

particulars of loading of cargo container on board into the system and endorse these

details on the exporter copy of the shipping bill presented to him by the steamer

agent. If there is a difference in the quantity/number of packages stuffed in the

containers/goods loaded on vessel the Superintendent (Docks) may put a remark on

the shipping bill in the system and that shipping bill requires amendment or changed

quantity. Such shipping bill also may not be taken up for the purpose of sanction of

Drawback/DEEC logging, till the shipping bill is suitably amended for the changed

quantity. The Customs Preventive Officer supervising the loading of container and

general cargo in to the vessel may give "Shipped on Board" endorsement on the

exporter’s copy of the shipping bill.

Drawal of Samples:

Where the Appraiser Dock (export) orders for samples to be drawn and tested, the

Customs Officer may proceed to draw two samples from the consignment and enter

the particulars thereof along with details of the testing agency in the ICES/E system.

There is no separate register for recording dates of samples drawn. Three copies of

the test memo are prepared by the Customs Officer and are signed by the Customs

44

Officer and Appraising Officer on behalf of Customs and the exporter or his agent.

The disposals of the three copies of the test memo are as follows: -

Original – to be sent along with the sample to the test agency.

Duplicate – Customs copy to be retained with the 2nd sample.

Triplicate – Exporter’s copy.

Amendments:

Any correction/amendments in the checklist generated after filing of declaration can

be made at the service centre, provided, the documents have not yet been submitted

in the system and the shipping bill number has not been generated. Where

corrections are required to be made after the generation of the shipping bill No. or

after the goods have been brought into the Export Dock, amendments is carried out

in the following manners.

If the goods have not yet been allowed "let export" amendments may be

permitted by the Assistant Commissioner (Exports).

Where the "Let Export" order has already been given, amendments may be

permitted only by the Additional/Joint Commissioner, Custom House, in

charge of export section.

Export of Goods under Claim for Drawback:

After actual export of the goods, the Drawback claim is processed through EDI

system by the officers of Drawback Branch on first come first served basis. There is

no need for filing separate drawback claims. The status of the shipping bills and

sanction of DBK claim can be ascertained from the query counter set up at the

service centre. If any query has been raised or deficiency noticed, the same is

shown on the terminal. A print out of the query/deficiency may be obtained by the

authorized person of the exporter from the service centre. The exporters are required

to reply to such queries through the service centre. The claim will come in queue of

the EDI system only after reply to queries/deficiencies is entered by the Service

Centre.

45

Generation of Shipping Bills:

After the "let export" order is given on the system by the Appraiser, the Shipping Bill

is generated by the system in two copies i.e., one Customs copy, one exporter’s

copy (E.P. copy is generated after submission of EGM). After obtaining the print out

the appraiser obtains the signatures of the Customs Officer on the examination

report and the representative of the CHA on both copies of the shipping bill and

examination report. The Appraiser thereafter signs & stamps both the copies of the

shipping bill at the specified place.

Export General Manifest:

All the shipping lines/agents need to furnish the Export General Manifests, Shipping

Bill wise, to the Customs electronically within 7 days from the date of sailing of the

vessel.

Apart from lodging the EGM electronically the shipping lines need to continue to file

manual EGMs along with the exporter copy of the shipping bills as per the present

practice in the export department. The manual EGMs need to be entered in the

register at the Export Department and the Shipping lines may obtain

acknowledgements indicating the date and time at which the EGMs were received by

the Export Department.

46

Research Methodology

47

The process used to collect information and data for the purpose of making business

decisions. The methodology may include publication, research, interview, survey and other research techniques, and could include both present and historical information

Methodology is the systematic, theoretical analysis of the methods applied to a field

of study. It comprises the theoretical analysis of the body of methods and principles

associated with a branch of knowledge. Typically, it encompasses concepts such as

philosophical or theoretical frameworks, theoretical model, phases and quantitative or qualitative techniques.

A methodology does not set out to provide solutions - it is, therefore, not the same as

a method. Instead, a methodology offers the theoretical underpinning for

understanding which method, set of methods, or best practices can be applied to specific case, for example, to calculate a specific result

This chapter aims to understand the research methodology establishing a framework

of evaluation and revaluation of primary and secondary research. The techniques

and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results.

The various tasks that I have undertaken in the research design process are:-

Defining the information need

Design the exploratory, descriptive and causal research

Research Process

The research process has four distinct yet interrelated steps for research analysis it has a logical and hierarchical Ordering:

48

Determination of information research problem.

Development of appropriate research design.

Execution of research design.

Communication of results.

Each step is viewed as a separate process that includes a combination of task, step

and specific procedure. The steps undertake are logical, objective, systematic,

reliable, valid, impersonal and ongoing.

Research Objective

To Study the Custom Clearance Procedure.

To Study customer Preference Regarding Custom Clearance Service with

Special Reference to Om Freight Forwarders.

To Identify the Factors Affecting Customer Satisfaction Regarding Custom

Clearance

Descriptive Research

The method I used for Descriptive research was

Primary Data

Secondary Data

Research Design

Manufacturers View, test and preferences through Descriptive research design

49

Primary Data

Primary data are those data which collected by researcher or investor first time and it is newly. It means it is not collected by someone else or that data are not used which is collected by someone else.

Primary data are collected through some techniques:

Questionnaire

In my research I was collected the primary data to using my own Efforts and skill through Questionnaire

Secondary Data

Secondary data are those data which is not collected first time by the researcher which is already have been collected by someone else.

Those data are taken by the researcher for analysis purpose only

Secondary data are collected through using these techniques:

Internet Magazine News Paper Any other Research Report Government Published Report

In my research I was collect secondary information through Internet

Data Presentation

Primary and Secondary data which is collected by me for the completion of my research work is presented in Pie chart.

50

Sample Area

Sample area is Delhi NCR

Sample Size

Sample size was taken by me as 50 Procurement Manager of Manufacturing Unit

Sampling Techniques

There are some sampling techniques are used by me

Convenience Simple Random Sampling

51

Data Analysis & Interpretation

52

Question1. Which kind of Business you have?

Type of Business Frequency Percentage Export 13 26 Import 28 56 Both 9 18

Data Interpretation: From the above data I found that 56% Manufacturer are Doing Import Business, and 26% are Doing Export Business, While 18% Manufacturer Doing Both kind of Business Export and Import.

Export26%

Import56%

Both18%

Which kind of Business you have?Export Import Both

53

Question2. Are you aware with all the service provided by Om freight forwarders?

Awareness about Om freight Frequency Percentage Yes 50 100 No 0 0

Data Interpretation: From Above data I found that 100% Manufacturer are satisfied with the service of Om Freight Forwarders because the sample size is 50 Manufacturer is the Customer of Om Freight Forwarders.

Yes100%

No0%

Are you Aware with the Service of Om Freight Forwarders?

Yes No

54

Question3. From where do you know about our organization and its services?

Source of Information Frequency Percentage Advertising 8 16 Reference 14 28

Cold Calling 28 56

Data Interpretation: From above data I found that 56% Manufacturer are Aware through Cold Calling by Om Freight Executive and 28% are Aware about its by References. 16 % Manufacturers are Aware through Advertising done By Organization

16%

28%56%

From where do you know about our Organization and its Services?

Advertaising Refrances Cold Calling by Om freight executive

55

Question4. Are you satisfied with all the service of Om freight forwarders?

Level Of Service Frequency Percentage Yes 34 68 No 16 32

Data Interpretation: From Above data I found that 68% Customer are satisfied with the service of Om Freight Forwarders and 32% Customer are not satisfied with its services.

Yes68%

No32%

Are you Satisfied with the Service of Om Freight Forwarders?

Yes No

56

Question5. What is the most important factor for Satisfaction Regarding Custom Clearance & Freight Forwarder Services?

Factor for Satisfaction Frequency Percentage Clearance of Goods 18 36 Fast Documentation 10 20

Competitive Rate 5 10 Timely Delivery 7 14

Less Transit Time 6 12 All 4 8

Data Interpretation: From above Data I found that 36% customer are satisfied by Clearance of goods. While 20% are satisfied by the Fast Documentation Process by Om Freight and 14% Customers are satisfied by Timely Delivery of Goods.12% Customer are satisfied by Less Transit time taken by Om Freight and 10% are satisfied by its Competitive Rates, While 8% Customer are satisfied by its All Service provided by Om Freight Forwarders.

Clearance of Goods36%

Fast Documentation

20%

Compatative Rate10%

Timaly Delivery14%

Less Transit Time12%

All8%

What is the most Important factor for Satisfaction Regarding Custom Clearance & Freight Forwarder

Services?

Clearance of Goods Fast documentation ProcessCompetitive Rate Timely DeliveryLess Trasit time All

57

Question6. What is the Problem faced by you regarding Custom Clearance?

Basis of Problem Frequency Percentage Goods broken in transit 19 38 Documentation Problem 11 22

Delay in Clearance 13 26 other 7 14

Data Interpretation: From above data I found that 38% customer of Om freight facing the problem of Goods Broken in transit. While26% Customer are facing the problem of Delay in Custom Clearance of Goods and 22% customer are facing Documentation Problem which takes Long Time and 14% customers are facing the other kind of problem in Exception Case.

Goods broken 38%

Documentation22%

Delay 26%

Other14%

What is the Problem faced by you Regarding Custom Clearance?

Goods broken in transit Documentation problem

Delay in custom clerance Other

58

Question7. Do you find the Custom Clearance Procedure Easy?

Custom Procedure Frequency Percentage Yes 37 74 No 13 26

Data Interpretation: From above data I Found that 74% Customers are feeling Custom clearance procedure are easy by Om Freight Service. While 26% Customer feels it’s Difficult procedure that’s take a long time.

Yes 74%

No 26%

Do you find the Custom Clearance Procedure Easy?

Yes No

59

Question8. Are you satisfied with our Executive & Managers Behaviour?

Satisfied from Frequency Percentage Yes 34 68 No 16 32

Data Interpretation: From above data I found that 68% customer is satisfied with our Executive and Managers Behaviour. While 32% Customer are not satisfied with the Behaviour of Managers

Yes 68%

No 32%

Are you Satisfied with our Executive & Managers Behavior?

Yes No

60

Question9. Would you like to change your Freight forwarder & Custom clearance Agent?

Changes of Agent Frequency Percentage Yes 11 22 No 39 78

Data Interpretation: From above data I found that 78% customers of Om Freight do

not want to change his Custom and Freight Forwarder agent, while 22% Customers

want to change it.

22%

78%

Would you like to change your Freight Forwarder & Custom Clearance Agent?

Yes No

61

Findings

So as for my research work I was analyzed, calculate my whole data to covert it meaningful information for compulsion my research objective and also after using graphical presentation I was found certain things which is as fallow

• 56% Customer are doing the Business of Import.

• 56% of Customer is Aware about Organization and its Services through Cold calling by Om Freight executive.

• 68% Customer are satisfied with the service of Om Freight which is provided by the company

• The Clearance of goods is a factor which satisfied 36% of Customer and somehow Competitive Rates and Fast Documentations is the service of Om Freight that Satisfied Customers.

• Customers are faced Problem of Goods Broken in Transit and some How Documentation Problem.

• 68% Customers are satisfied with the Executive and Managers Behaviors.

• 74% customers Feels Custom Clearance Procedure is Easy.

• Those Customers who already used our service, most of them do not change their Custom house Agent and Freight Forwarders service Agent

62

Recommendations

63

Recommendations As per my research findings and observation I can recommend certain things which may be helpful for the Om Freight Forwarders company in Delhi NCR region.

From the above research and from my findings there is some recommendation to Om Freight Forwarders.

• Company has required doing some Other Promotional method for advertising accept cold calling by Om Freight Executive.

• Company have to add some extra services for the customer benefits

• 32% Customer are not satisfied with all the services provided by Om Freight Forwarders, so company have required to find the reasons and work on that and it is benefits for organization

38% of Customer is facing the problem of goods broken in Transit, so Company Needs to improve their Packaging system and 22% of Customer are faced Documentation problem that affect the customer so company should try to make it easier and simpler.

• 26% of Customer is found that Custom Clearance Procedure difficult, so company required making easier and simpler.

• 32% Customer are not satisfied by Managers and executives Behavior so Company has needs to make Improvement in relation with Customers.

64

Conclusion

65

Conclusion Custom Clearance procedures, regulated by recipient Country government

changes over time and can be quite complex. In The custom clearance

procedure the Indian economy has been growing since Liberalization and

globalization of trade policy. But in the globalised world, cost management and

cost reduction has become priority in international trade to achieve competitive

advantage. The present study makes an attempt to analyse the extent of

efficiency of logistics management activities in international cargo.

Sometimes it failures by importers to master local Customs clearance procedures

or custom clearance that are themselves prone to back downs may cause , long

delivery delays , although the custom related imports problem can be somewhat

generalized, the cause of these problem are likely to be specify to a particular

port of entry. Such problem include poor planning and poor communication by

actors in the clearance process,

Rather than thinking of custom delays as a constraint, donor agencies and

government stakeholder need to engage customs authorities and their own third

party contractors in ongoing performance improvement programmes to identify the problem that can be rightly attributed to the clearance process.

As we have seen, employees who believe their information cares about their

security health and wellbeing are more likely to be loyal in the organization go the

extra mile and stay in their jobs for longer. This can bring huge gains for employer

inthuistics who deliver more effectively through increased the level of service and properly managed the Organization

66

Limitation and Scope of Study:

67

Limitation and Scope of Study:

Procurement Manager of Manufacturing Unit they don’t have enough time to communicate properly.

Manufacturers they do not ready to Response the questionnaire because it takes Long time.

Exploratory research survey take a long time and 45 days not enough for this study

Some of Manufacturers they think me as a company’s employee and they

don’t response

It was a tough to handle a Procurement Manager and take response properly

68

Bibliography

http://en.wikipedia.org/

http://www.businessdictionary.com/difination/Custom-clearance.html

howtoexportimport.com/Documents-required-for-import-customs-clearance-159.aspx

http://www.omfreight.com/

Book of Research Methodology ( C.R. Kothari)

Book of Research Methodology (R.Jayaprakash Reddy)

Book of Research Methodology (Sudhir Sharma & Gautam Bansal)

Book of Research Methodology (Dr. Vijay Upagade & Dr. Arvind Shende)

69

Questionnaire

Questionnaire

Dear Sir/ma’am,

Date................

I am a student of MBA 2nd Semester in Quantum School of Business and currently doing summer internship in Om Freight Forwarders Pvt. Ltd Company and undertaken a Market survey about Customer Preference Regarding Custom Clearance service with special Reference to Om Freight Forwarders requesting you to provide the below given information for completion of my research work.

Name: ……….……………………. Designation: ………………………

Contact No.: …………………….... Company Name: ………………

Company Product: …………........ Company Address: ……………

…………………………………..

1. Which kind of business you have?

Export Import Both

2. Are you aware with all the service provided by Om freight forwarders?

Yes No

3. From where do you know about our organization and its services?

Advertising References Cold calling by Om freight executive Other

70

4. Are you satisfied with the service of Om freight forwarders?

Yes No

5. What is the most important factor for satisfaction regarding Custom Clearance & freight forwarder services?

Clearance of Goods Fast Documentation Process Competitive Rates Timely Delivery Less transit time Above All

6. What is the problem faced by you regarding Custom Clearance?

Goods Broken in Transit. Documentation Problem Delay in Custom Clearance Other………………………

7. Do you find the Custom Clearance Procedure Easy?

Yes No

8. Are you satisfied with our Executive & Managers Behaviour?

Yes No

Reason: …………

9. Would you like to change your Freight Forwarder & Custom Clearance Agent?

Yes No