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ACKNOWLEDGEMENT
I thank The Almighty for showering his choicest blessings on me for the successful
completion of project work undertaken by me.
I express my sincere thanks and gratitude to Mr. John George, Manager GAC Logistics
(India) Pvt Ltd for his constant encouragement, profound advice and supervision for project.
My sincere thanks are also due to Mr. Joseph Biju and Mr. Binoy, officers of GAC
Logistics (India) Pvt Ltd. for their expert counsel on studies and support.
And above all, I remember with reverence my parents & Almighty God who inspired my
mind & strengthen my hands to make this study a successful one
DECLARATION
I hereby declare that the internship report entitled A STUDY ON MARKET
POTENTIAL OF FREIGHT FORWARDING BUSINESS submitted to Amet
University, Chennai in partial fulfilment of the requirement for the award of the degree
Master of Business Administration as a record of original Internship report done by
SANGEETH S MENON (Roll no: MBA/664/13) during the period of study in AMET
UNIVERSITY (2013-2015), Chennai.
SANGEETH S MENON
Signature of candidate:
MBA (S&LM)
Date:
Place: CHENNAI
Signature of Guide
ASSISTANT PROFESSOR
AMET UNIVERSITY
Date:
Place: CHENNAI
CERTIFICATION OF APPROVAL
This is to certify that the project work entitled A STUDY ON MARKET POTENTIAL
OF FREIGHT FORWARDING BUSINESS is bonafide research work carried out
independently by SANGEETH S MENON (Roll no: MBA\664) during the period of study
in AMET UNIVERSITY (2013-2015) in partial fulfilment of the requirement for the award
of the Degree of Master of Business Administration and that this project work has not
formed the basis for the award of any Degree/Diploma/Associate ship/fellowship or similar
title to any candidate of any University.
Date:
Place: CHENNAI
Internal Examiner
External Examiner
CONTENTS
CHAPTER.
CONTENTS
PAGE NO.
1.
INTRODUCTION
1.1
8-9
2.
COMPANY PROFILE
10
2.1
ABOUT GAC
11-13
2.2
13-15
2.3
GAC INDIA
15-16
3.
17
3.1
FREIHT FORWARDING
18-20
4.
21
NO.
ORGANISATION
4.1
21-24
4.2
INCOTERMS
24-29
4.3
30-35
4.4
35-39
4.5
FACTORY STUFFING
40-42
4.6
42-43
5.
44
5.1
SUGGESTIONS
45
5.2
CONCLUSIONS
46
6.
REFRENCES
47-48
CHAPTER 1
INTRODUCTION
INTRODUCTION
This project says about an analysis of impact on Market Potential On Freight Forwarding
Business. Todays rapidly changing business environment is creating intense competition
among corporations markets are changing faster now than in any other time in history.
Product life cycles are shortening and businesses must compete globally.
Freight forwarders perform a key role in any trade. The freight forwarder is the architect of
the international transport and plays an important role in the growth of the international trade
in India by facilitating exporters, shippers, importers, customs/ports authorities etc.
The freight forwarding industry will continue to benefit from growth in trade and certain
structural advantages over carriers. Value is driven by financial performance is driven
strategic position. Strategic position must assessed in a disciplined manner , which examines
the discrete and interrelated activities within a forwarder value chain to understand sources of
synergy and options to increase value.
1.1.
CHAPTER 2
COMPANY PROFILE
10
11
Shipping was GACs first business unit, dating back to when their first office opened in
Kuwait, to provide lightering and ship agency services, in 1956. Today, GAC Shipping is one
of the worlds biggest providers of services to ship owners and operators.
GACs Logistics operation originated from their forwarding, warehousing and distribution
operations in Dubai. Today, GAC Logistics has grown into a global network providing a rich
array of general and specialist logistics services.
GACs Marine operation centers around our modern and expanding fleet of supply craft and
barges that provide vital support for offshore exploration, construction and production, heavy
lift cargo towage, etc. GAC Marine operates in key locations in the Middle East Gulf, West
Africa and Caspian Sea.
GAC takes full advantage of the diversity of their portfolio of services, Their worldwide
infrastructure, resources and expertise to deliver integrated solutions that result in time and
cost efficiency. Sectors such as the oil & gas industry, in particular, benefit from GACs
unique ability to offer a tailor-made service package covering ship agency, bunker fuels,
project logistics, offshore logistics and more. Other sectors that can benefit from GACs wide
range of services include cruise, dry bulk, automotive, FMCG, retail, technology, healthcare,
sports, entertainment/events, projects, offshore, etc.
We know that you must first sow before you can reap. Thats why GAC has always believed
in investment: in long-term relationships with their clients, partners, brand ambassadors and
suppliers; in the technology and equipment to get the job done - and done well; and in
training our people, as evidenced by the establishment of the GAC Corporate Academy in
2007.
Individual GAC companies operate with a high degree of autonomy, giving them the
flexibility to act in accordance with local conditions and specific customer needs whilst
maintaining the global outlook and standards of the Group.
QUALITY ASSURANCE
GAC is global service organization dedicated to providing efficient and competitively priced
shipping, logistics and marine services. GACs mission is to offer their customers a
consistently high level of service that exceeds their requirement and expectation. All GAC
offices are certified under the Quality Management System ISO 9002: 1994 standard. They
12
are now actively working towards full implementation of the ISO 9002: 2000 standards
within GAC. GACS approach to quality goes well beyond the certain set of ISO standards. It
also involves continues improvement and development of their services. Through the GAC
Quality Management System(QMS), they control and monitor their performance to ensure
continuous improvement in their service quality level.
2.2.
VISION
To provide leadership and innovation in global business and community life by delivering a
flexible portfolio of services built on quality, safety, honesty, vigor and a commitment to long
term business relationships.
MISSION
GAC is a worldwide service provider dedicated to building long-term relationships with
customers, staff and suppliers. We are committed to delivering integrated services to the
Shipping, Logistics, Marine and related markets at the highest levels of quality and safety.
GAC SHIPPING
GAC shipping is leading provider of global and hub agency services. In addition to ship
agency, GAC shipping offers an extensive range of specialized services such as Ship
Supplier, Global Hub Agency and Canal Transit. GAC shipping also acts as correspondents
for most International Groups and P&I club.
GAC shipping today represent the interest of more than 3,500 principles worldwide and
attends to over 26,000 vessels annually, of which one-third are regular line and dry cargo
vessels, while two-third are tankers.
GAC MARINE
GAC Shipping provides marine transportation and associated engineering services such as
Anchor Handling, Offshore Supply, Towage, Barge Operation and Ship-to-Ship Transfer to
Offshore and Shipping industry. They own and operate fleets of OSVs, tugs, barges and
landing craft. Vessels can be customized according to client requirement.
13
P&I COORESPONDENT
One service include 24/7 claims handling, marine surveys and damage report etc. GACs
team of claims staffs has the knowledge and experience for efficient management of all P&I
incidents claims on behalf of their clubs and ships owner member. GAC India represent
Skuld at Mumbai and other intermediary ports near Mumbai and acts as the sole
correspondent for Swedish clubs in Mumbai, Kandla, Goa, Cochin, Chennai and Vizag.
AIR FREIGHT
GACs worldwide freight management capability ensures their customers cargo reaches any
city, country or continent wherever they need. Their global partnership agreement with major
air carrier means their customers get priority and have access to competitive rates and
capacity. Goods are collected at the point of origin, cleared through customs and delivered to
the end consignees using the most cost efficient and expedient route. They monitor and
provide progress report every step of the via. their global IT system (GAC Freight), giving
clients complete visibility of the move and peace of mind.
14
For LCL Shipment (Less than Full Container Load), Cargo Gulf operates weekly
consolidation to destination around the world, which is widely known for its time bound
delivery. Cargo Gulf also assist customer for FCL (Full Container Load) shipments. Issuing
its own carrier Bill Of Lading means cargo gulf is in a position to control the cargo door todoor. As one of the largest NVOCC freight buyers in the world, GAC are able to pass on
competitive rates to clients.
15
2.3.
GAC India
Shipping Services
Established in 1983, GAC Shipping (India) Pvt. Ltd. has grown steadily to offer a truly one
stop shop for all Shipping, Logistics and distribution needs.
GAC India is headquartered in Cochin, Queen of the Arabian Sea, and operates 22 other fully
fledged and ISO 9001:2000 certified offices. They cover all minor and major ports, as well as
inland container depots.
With over two decades of experience, GAC India is one of the leading agents in India. GAC
offers principles round the clock (24/7) comprehensive range of ship agency services for any
type of port calls, including attendance required in connection with vessel demolition and
ship to ship transfer etc.
GLOBAL COVERAGE AND LOCAL EXPERTISE
GAC Cochin head office acts as the Hub Office for all Operations in the country and coordinates all administrative and international financial matters, which helps to streamline
processes. As a part of GAC group, they offer principal the combination of worldwide
coverage with a thorough local knowledge.
FULLY COMPUTERIZED AUTOMATION SYSTEM
Using leading edge technology and computerized operation system, GAC Cochin Shipping
desk controls the shipping activities at Indian ports situated at both East and West Coasts.
Information about any port can be speedily furnished from this office.
HUB AGENCY
GACs Global Hub Services (GHS) offers an integrated service package encompassing the
coverage, experience and expertise of the groups global network, to help its clients control
and save on all their port call related expenses.
GHS is made up of Global Disbursement Center based in Dubai, supported by four regional
HUB Agency Centers located in USA, UK, UAE and Singapore.
16
CHAPTER 3
SECTOR SPECIFIC DETAILS
17
18
FREIGHT FORWARDER
A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating
common carrier (NVOCC), is a person or company that organizes shipments for individuals
or corporations to get goods from the manufacturer or producer to a market, customer or final
point of distribution. Forwarders contract with a carrier to move the goods. A forwarder does
not move the goods but acts as an expert in supply chain management. A forwarder contracts
with carriers to move cargo ranging from raw agricultural products to manufactured goods.
Freight can be booked on a variety of shipping providers, including ships, airplanes, trucks,
and railroads. It is not unusual for a single shipment to move on multiple carrier types.
International freight forwarders typically handle international shipments. International freight
forwarders have additional expertise in preparing and processing customs and other
documentation and performing activities pertaining to international shipments.
Information typically reviewed by a freight forwarder includes the commercial invoice,
shipper's export declaration, bill of lading and other documents required by the carrier or
country of export, import, and/or transshipment. Much of this information is now processed
in a paperless environment.
The FIATA shorthand description of the freight forwarder as the 'Architect of Transport'
illustrates the commercial position of the forwarder relative to his client. In Europe, some
forwarders specialize in 'niche' areas such as rail-freight, and collection and deliveries around
a large port.
Lloyd's Loading List is the freight forwarding industry's journal of record, first published 160
years ago as a UK export directory. Today it provides details of forwarders, NVOCCs and
shipping lines/agents who serve over 10,000 ports globally. Some forwarders handle
domestic shipments only.
An international freight forwarder is an agent for the exporter and can move cargo from
dock-to-door, providing several significant services such as:
Advising on exporting costs including freight costs, port charges, consular fees, costs
of special documentation, insurance costs and freight handling fees;
19
Preparing and filing required export documentation such as the bill of lading and
routing appropriate documents to the seller, the buyer or a paying bank;
Advising on the most appropriate mode of cargo transport and making arrangements
to pack and load the cargo;
Making arrangements with overseas customs brokers to ensure that the goods and
documents comply with customs regulations.
Export freight forwarders are licensed by the International Air Transport Association (IATA)
to handle airfreight and the Federal Maritime Commission to handle ocean freight.
Freight forwarders arrange the best means of transport, taking into account the type of goods
and the customers' delivery requirements. They use the services of shipping lines, airlines and
road and rail freight operators. In some cases, the freight forwarding company itself provides
the service. Companies vary in size and type, from those operating on a national and
international basis to smaller, more specialized firms, who deal with particular types of goods
or operate within particular geographical areas.
The services of a freight forwarder can vary between different companies but the main
function of the freight forwarder is to act as an intermediary between the client who is hiring
them and various transportation services that are involved in getting the product overseas to
the customer. Depending on the final destination and the nature of the items shipped, there
may be many transportation companies involved in the movement of the items from the
supplier to the customer. The freight forwarder may have to deal with many export and
import issues that could be involved in the movement of the goods.
The freight forwarder is hired to get the product to the customer by a specific date and in an
undamaged state. The freight forwarder will provide the client insurance services to make
sure that if the items do arrive damaged, they will be reimbursed and not liable for the
damages.
20
CHAPTER 4
LEARNING FROM THE ORGANISATION
21
ROLE OF NVOCC
As the name indicates, NVOCC operators do not own a vessel. Their function is that of
principal to the shipper and they ultimately become the customer for a Liner who carries their
box. Few of them may have own containers and they will be issuing their own Bill of Lading
and they will be having a wide network in the sector they operate.
They issue their House Bill of Lading to the Shippers and them upon handing over the
container to the Liner, get Liner Bill of Lading. This Original Bill of Lading will be
forwarded to the counter party of the NVOCC operator at the destination end and they
surrender this to the Liner. Alternatively, to avoid the delay in sending the original document
to the destination end, the same will be surrendered at the load port Liner / agents office
itself. The Liner / Agent at the load port will send an electronic message to the discharge port
about the surrendering of original bill of lading at the load port and to release the delivery
order based on the endorsement of the freight forwarder / NVOCC operator itself. NVOCC
Operators issue House-to-House Bill of Lading or Combined Transport Document to the
shipper since they undertake the movement from the Shippers ware house and taking the
responsibility of reaching the cargo till the buyers warehouse.
22
It is not the same pattern of working for all the operators but in the present days, the amount
of significance given to Logistics Providers are of immense importance and this type of
functioning is gaining greater acceptance among the shippers as well as buyers since the
entire activity is under single point control.
Few other operators just function as freight forwarders and their role of play are limited to
the extent of the contacting the shippers and booking the cargo through a particular Liner.
They will have a contracted freight charges with the Liner and depending upon their strength
to offer volume of business to a particular line and to a particular sector, they enjoy good
discounts on the tariff. When they get the rates based on a committed volume, they hunt
around shippers and they book the cargo through them to a Liner wherein they have a better
freight charges. The difference in booking the price would be their profit i.e., the difference
between the buying rate and the selling rate to the customer. In this case, the bill of lading
will directly be given to the customer from the Liner office and there is no involvement of
house bill of lading and the related surrendering formalities at the destination counter.
ROLE OF CONSIGNEE
Party, who is to receive goods, usually is the buyer. One to whom a consignment is made.
When the goods consigned to him are his own and they have been ordered to be sent they are
at his risk the moment the consignment is made according to his direction; and the persons
employed in the transmission of the goods are his agents. When the goods are not his own, if
he accept the consignment he is bound to pursue the instructions of the consignor; as if the
goods be consigned upon condition that the consignee will accept the consignor's bills, he is
bound to accept them.
It is usual in bills of lading to state that the goods are to be delivered to the consignee or his
assigns, him or them paying freight; in such case the consignee or his assigns, by accepting
23
the goods, by implication become bound to pay the freight. When a person acts publicly as a
consignee there is an implied engagement on his part that he will be vigilant in receiving
goods consigned to his care, so as to make him responsible for any loss which the owner may
sustain in consequence of his neglect.
4.2. INCOTERMS
Inco terms are ICCs standard definitions of trade term s and are internationally recognized as
indispensable evidence of the buyers and sellers responsibilities for delivery under a sales
contract.
EXW
SERVICES
Ex Works
FCA
Free
Carrier
FAS
FOB
Free
Free
Alongside Onboard
Ship
Vessel
CFR
Cost &
Freight
CIF
Cost
Insurance
& Freight
CPT
Carriage
Paid To
Warehouse Storage
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Warehouse Labor
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Export Packing
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Loading Charges
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
Inland Freight
Buyer
Seller
Seller
Seller
Seller
Seller
Terminal Charges
Buyer
Buyer
Seller
Seller
Seller
Seller
Seller
Forwarders Fees
Buyer
Buyer
Buyer
Buyer
Seller
Seller
Seller
Loading On Vessel
Buyer
Buyer
Buyer
Seller
Seller
Seller
Seller
Ocean/Air Freight
Buyer
Buyer
Buyer
Buyer
Seller
Seller
Seller
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Seller
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Charges On Arrival At
Destination
Duty, Taxes & Customs
Clearance
Buyer/
Seller*1
24
Delivery To Destination
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
DAF
Carriage Delivered
DES
DEQ
Delivered
Delivered Ex Quay
DDU
Delivered
Delivered
Insurance
At
Paid To
Frontier
Warehouse Storage
Seller
Seller
Seller
Seller
Seller
Seller
Warehouse Labor
Seller
Seller
Seller
Seller
Seller
Seller
Export Packing
Seller
Seller
Seller
Seller
Seller
Seller
Loading Charges
Seller
Seller
Seller
Seller
Seller
Seller
Inland Freight
Seller
Seller
Seller
Seller
Seller
Seller
Terminal Charges
Seller
Seller
Seller
Seller
Seller
Seller
Forwarders Fees
Seller
Seller
Seller
Seller
Seller
Seller
Loading On Vessel
Seller
Seller
Seller
Seller
Seller
Seller
Ocean/Air Freight
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Buyer
Buyer
Seller
Seller
Seller
Buyer
Buyer
Buyer
Buyer
Buyer
Seller
Delivery To Destination
Buyer
Buyer
Buyer
Buyer
Seller
Seller
SERVICES
Ex Ship
Duty
Unpaid
Duty
DDP
Unpaid
Duty Paid
25
The 13 INCOTERMS
26
There are four groups of INCOTERMS - "E", "F", "C" & "D"
Group:E
used where the seller does not want to arrange transport.
EXW - "Ex-Works" means the seller's only responsibility is to make the goods available at
the seller's premises, i.e., the works or factory. The seller is not responsible for loading the
goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears the full
costs and risk involved in bringing the goods from there to the desired destination.
"Ex works" represents the minimum obligation of the seller.
Group:Fused where the seller can arrange some transport within his/her own country.
FCA - Free Carrier, This term has been designed to meet the requirements of multi-modal
transport, such as container or roll-on, roll-off traffic by trailers and ferries. The seller fulfils
his/her obligations when the goods are delivered to the custody of the carrier at a named
point. If no precise point can be named at the time of the contract of sale, the parties should
refer to the place where the carrier should take the goods into its charge. The risk of loss or
damage to the goods is transferred from seller to buyer at that time.
FAS - Free alongside Ship, requires the seller to deliver the goods alongside the ship on the
quay. From that point on, the buyer bears all costs and risks of loss and damage to the goods.
F.A.S. requires the buyer to clear the goods for export and pay the cost of loading the goods.
FOB
Free
On
Board
vessel,
named
ocean
port
of
shipment.
The goods are placed on board the ship by the seller at a port of shipment named in the sales
agreement. The risk of loss of or damage to the goods is transferred to the buyer when the
goods
pass
the
ship's
rail
(i.e.,
off
the
dock
and
placed
on
the
ship).
27
CFR
(or
C&F)
Cost
and
Freight,
Named
ocean
port
of
destination,
requires the seller to pay the costs and freight necessary to bring the goods to the named
destination, but the risk of loss or damage to the goods, as well as any cost increases, are
transferred from the seller to the buyer when the goods pass the ship's rail in the port of
shipment. Insurance is the buyer's responsibility.
CIF
Cost,
Insurance
and
Freight,
named
ocean
port
of
destination.
This is CFR with the additional requirement that the seller procure transport insurance against
the risk of loss or damage to goods. The seller must contract with the insurer and pay the
insurance premium. Insurance is generally important in international shipping because
transport companies have restricted liability for loss or damage.
CPT
freight/Carriage
paid
to,
named
place
or
port
of
destination.
This term means the seller pays the freight for the carriage of the goods to the named
destination. The risk of loss or damage to the goods and any cost increases transfers from the
seller to the buyer when the goods have been delivered to the custody of the final carrier, and
not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for all modes of
transportation, including container or roll-on roll-off traffic by trailers and ferries. When the
seller is required to furnish a bill of lading, way bill, or carrier receipt, the seller duly fulfils
its obligation by presenting such a document issued by the person contracted with for carriage
to the main destination.
CIP - Carriage and Insurance Paid To named place or port of destination.
This term (also abbreviated CIP) is the same as "freight/carriage paid to" but with the
additional requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage. The seller contracts with the insurer and pays
the insurance premium.
Group:Dused where the seller can pay for most of the delivery charges to the destination
country.
DAF - Delivered at Frontier, named place of destination, by land, not unloaded.
This term means that the seller's obligations are fulfilled when the goods have arrived at the
frontier but before the customs border of the country named in the sales contract. The term is
28
primarily used when goods are carried by rail or truck. The seller bears the full cost and risk
in delivering the goods up to this point, but the buyer must arrange and pay for the goods to
clear customs.
DES
Delivered
Ex-Ship,
named
port
of
destination,
not
unloaded.
This term means the seller makes the goods available to the buyer on board the ship at the
destination named in the sales contract. The seller bears the full cost and risk involved in
bringing the goods there. The cost of unloading the goods and any customs duties must be
paid by the buyer.
DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.
This term means the seller has agreed to make the goods available to the buyer on the quay or
the wharf at the destination named in the sales contract. The seller bears the full cost and risks
in delivering the goods to that point including unloading. There are two variations of ex quay
contracts: "ex quay duty paid" and "ex quay duty on buyers account." In the first, the duty is
paid by the seller. In the second, the duty also is paid by the seller, but the buyer must
reimburse the seller.
DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.
This term Delivered duty paid or under these terms, the seller fulfils his obligation to deliver
when the goods have been available to the buyer nucleated for import at the point or place of
the named destination. The seller bears all costs and risks involved in bringing the goods to
the point or place of named destination. There is no obligation for import clearance.
DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.
This term represents the seller's maximum obligation. The term "DDP." is generally followed
by words indicating the buyer's premises. It notes that the seller bears all risks and all costs
until the goods are delivered. This term can be used irrespective of the mode of transport. If
the parties wish to make clear that the seller is not responsible for certain costs, additional
word should be added (for example, "delivered duty paid exclusive of VAT and/or taxes").
29
UPDATE
QUOTATION
CUSTOMS
REQUIRED
YES
CUSTOMS PROCEDURES
ENTER DATA IN
SYSTEM
BOOK CARGO
ARRANGE
TRANSPORTATION
RECEIVE CARGO
30
STUFF CARGO
SHIPPER/FORWARDER
CONFIRMS B/L
VESSEL ARRIVAL
CONFIRMATION
31
CUSTOMS PROCEDURES
RECEIVE
AUTHORIZATION
FROM SHIPPER
RECIEVE DOCUMENTS
INVOICE
PACKING LIST
DOCUMENTS REQUIRED BY
SHIPPER
CERTIFICATE OF ORIGIN
PQ CERTIFICATE
INSURANCE CERTIFICATE
BOOK CARGO
DELIVERY ORDER
32
ARRANGE
RECEIVE CARGO
STUFF CARGO
EXPORT PROCEDDURE
When the exporter approaches custom house agent (CHA), CHA makes an offer in the form
of quotation as per the requirements of the exporter, addressing the exporter stating all the
shipment expenses with competitive rates of shipment. Then the CHA demands for the
invoice, packing list etc. After the submission of the documents, agent files for the shipping
bill.
The agent will get necessary information about the sailing from the shipping times of EXIM
to which they subscribe. C&F will assist the exporters for space booking. Depending upon
the availability, GAC will book the desired space and issue. The cargo shipped is insured
either by the exporter or GAC agent on the behalf of the exporter to cover the loss of goods
from accidents, loss or damage.
33
Once the goods are ready, shipper or agent should do the necessary packing and markings.
The exporter should tell the C&F agent the details of the cargo, name of the vessel etc. and
the documents which is being sent to the agent.
On applying for the container for the shipper line, the line will issue the delivery order for the
containers from the yard. On applying for the container, the agent may demand for inspection
of the container before loading. After certifying the container, the liner issues the line seal.
Once the container is released from the transport company, vehicles take the container to the
premises or to the warehouse of the exporter or agent for stuffing.
The trailer when reaches the gateway of the wharf will require the wharf ticket, on paying
necessary dues of vehicle entry, container enters the port. The agent must apply to the shed
superintendent for permitting the cargo into the port and also for the shed to keep the
containers before loading. Customer examiner examines the document and appraises the
value. On assessing the value of the cargo, the custom authorities assess the duty to be paid
for the goods for shipment. Then the forwarding agent presents the documents to the shed
department of the port and obtains Carting order for bringing the export cargo to the transit
shed for physical examination by the dock appraiser and for the shipment. The dock appraiser
records the examination report and makes Let Export endorsement on the duplicate copies
of the shipping bill and handover it to the forwarding agents along with the other document to
be presented to the preventive officer of the customs department and the officer issues
Allowed for Shipment if satisfied.
The customs on receiving the request from the agent for shipping bill, initially issues the
Checklist with reference to the documents submitted for CHAs certification. The shipping
bill is issued by the appraiser. After the goods are loaded on board of the vessel, the
forwarding agent makes the payment of the port charges and takes delivery of the documents.
The master finally loads the container to the vessel.
34
The endorsed documents are presented to the GAC for the issue of Bill Of Lading. The CHA
prepares a format of the B/L and submits to the line. The line on the basis of the format
presented, issues the original and endorses the other documents. After the shipment of the
goods, CHA has to apply for the Certificate of Origin at the Chamber of Commerce. The
CHA prepares the Export General Manifest to the concerned line.
Terms of shipment include FOB, C&F, CIF etc. of the freight is not received even after the
goods reaches the destination port, GAC informs the delivery agents not to take the delivery
of the goods.
PREPARE QUOTATION
FCL
SHIPMENT
NO
FILE IGM
FREIGHT
COLLECT
35
FREIGHT CERTIFICATE
CUSTOMS
CLEARANCE
REQUIRED
YES
CUSTOMS
CLEARANCE
PROCEDURE
NO
ENDORSE BILL OF
LADING
RAISE INVOICE
UPDATE SUPPLIER IN
SYSTEM
APPROVE JOB
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UPDATE
DOCUMENTS IN
THE SYSTEM
RECEIVE DOCUMENTS
INVOICE
PACKING LIST
CERTIFICATE OF
ORIGIN
ENDORSE
ORIGINAL B/L
VESSEL ARRIVAL
NOTIFICATION
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RECEIVE DELIVERY
ORDER
CUSTOMS
EXAMINATON
RECIVE DUTY
AMOUNT
ARRANGE
TRANSPORTATION
DELIVER CARGO
SIGN DELIVERY
RECIEPT
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IMPORT PROCEDURES
After making necessary enquiry, consignee contacts GAC for the clearing and documentation
process. Cargo arrival notice is issued by the shipping line at the destination to GAC
requesting to present the original B/L after payment of all relevant duty and charges and to
arrange the clearance of cargo, storage charges etc. will be charged on the importer. GAC
informs the consignee through the importer quotation. If the bill of lading has not arrived,
GAC, who is the shipping agent, issues the Letter for undertaking to the shipment line
requesting to issue the goods to the prescribed consignee without showing the original B/L.
After the customs inspection and assessment of duty, validity of the cargo is certified. On
issue of the delivery order. GAC has to ensure that freight charges are paid.
The customs import duty payment is made to Cochin Port Trust Branch. Before discharging
the goods to private bonded warehouse, GAC requests the permission of Asst, Commissioner
of Customs to post an officer to escort the cargo to the bonded warehouse for custom
inspection for de stuffing the goods. GAC also makes request the Terminal Manager for
examination and discharge of the containers for de stuffing, permitting the custom inspection
outside the terminal.
The trailers before the CHA takes the container from the port and is carried to either to the
importers private warehouse for house consumption or to the bonded warehouse of the
customs(private) to bond the cargo without payment of the duty, entrusting the B E for
warehouse and the port and line delivery order.
After de stuffing the goods, B E for ex-bond is prepared by CHA and forwarded the customs
for original copy, which has to be produced to take the delivery of goods from the bonded
warehouse.
The import container has to be returned to the line at the container yard. The surveyor
inspects the condition of the container whether any damage have occurred during the transit
and issues the Equipment Interchange report on behalf of the line, showing the position of the
container. In case of any damage, the line will claim damage from the importer.
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Drawl 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/EDI system. There is no separate
40
register for recording dates of samples drawn. Three copies of the test memo shall be
prepared by the Customs Officer and signed by the Customs 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:
(i) Original to be sent along with the sample to the test agency.
(ii) Duplicate Customs copy to be retained with the 2nd sample.
(iii) Triplicate Exporters copy.
24.2 Pollicisation of cargo is done after grant of Let Export Order (LEO). Thus, there is no
need for a separate permission for pollicisation from Customs. However, the permission for
loading in the aircraft/vessel would continue to be obtained.
[Refer Circular No.18/2005-Cus., dated 11-3-2005]
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Amendments:
Any correction/amendments in the check list generated after filing of declaration can be made
at the Service Centre provided the documents have not yet been submitted in the EDI system
and the Shipping Bill number has not been generated. Where corrections are required to be
made after the generation of the Shipping Bill number or after the goods have been brought
into the Export Dock, the amendments will be carried out in the following manner:
(i) If the goods have not yet been allowed Let Export the amendments may be permitted by
the Assistant Commissioner (Exports).
(ii) Where the Let Export order has already been given, amendments may be
Permitted only by the Additional/Joint Commissioner in charge of Export.
In both the cases, after the permission for amendments has been granted, the Assistant
Commissioner/Deputy Commissioner (Export) may approve the amendments on the EDI
system on behalf of the Additional/Joint Commissioner. Where the print out of the
ieport.com - India's Premier Export Import Portal 36
Shipping Bill has already been generated; the exporter may first surrender all copies of the
Shipping Bill to the Dock Appraiser for cancellation before amendment is approved on the
system.
In respect of amendment in AEPC Certificate on receipt of request from the exporter, the
Assistant Commissioner /Deputy Commissioner (Exports) should allow the change of port in
EDI Shipping Bills / invoice to help exporters in getting the goods cleared without waiting
for an amendment of documents by AEPC. The ratification of the port of change would be
done subsequently by AEPC. [Refer Circular No.46/2003-Cus., dated 5-6-2003
42
along with the original declarations to Export Department. The exporter copy and the second
copy of the SDF are returned to the exporter or his agent. ieport.com - India's Premier Export
Import Portal
Shipping bill:
1.
2.
3.
4.
5.
Customs copy
Examination order
Exporter copy
Exchange control copy
Bank copy
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CHAPTER 5
SUGGESTIONS & CONCLUSION
44
5.1.
SUGGESTIONS
Most of the customers are exporters. Hence there should be steps to attract
importers also. Value added services can be provided to attract the importers.
The main source of promotion is through direct marketing; hence the promotional
activities have to be improved. The promotion can be done through advertisement
in newspapers, journals, magazines and also through internet
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5.2.
Conclusion
The study ON Market Potential Of Freight Forwarding Business has paved way to understand
the various process and various functions Freight Forwarding in an organization.
GAC India is one of the leading agents in India. GAC offers principles round the clock (24/7)
comprehensive range of ship agency services for any type of port calls, including attendance
required in connection with vessel demolition and ship to ship transfer etc
Such that I would like to conclude the Study goes in a well manner.
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CHAPTER 6
REFRENCES
47
REFERENCES
www.gacindia.com
www.cochinport.com
www.wikipedia.com
Companys previous files and records
48