Summer Internship Report

Samson Freight Pvt. Ltd.

AT
SAMSON FREIGHT PVT LTD.
In Partial Fulfillment For
PGDIT

SUBMITTED BY:JAIDIP PATIL

POST GRADUATE DIPLOMA IN INTERNATIONAL TRADE I
INSTITUTE OF MANAGEMENT DEVELOPMENT AND RESEARCH
(CENTRE FOR INTERNATIONAL TRADE)
2009-2011

INDEX
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Contents

Page Number

Acknowledgment3

Executive Summary............4

Objective......5

Company Profile.6

Organization Structure..9

Functions of Various Departments..10

My Activities at Samson Freight..............15

Export procedure...17

Check list of documents.........................22

10

Import Procedure..........24

11

Duty calculation.....................27

12

Schemes..28

13

Conclusion..31

Acknowledgement
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The learning process goes on and on throughout your life, this is the one of the many
things I had learnt at SAMSON FREIGHT PVT.LTD.
At the outset I express my deep sense of gratitude to Captain Ashish Samarth, the Managing
Director of Samson Freight Pvt. Ltd for giving me the opportunity to carry out my summer
internship in his organization.
I am extremely indebted and too thankful to my mentor Mr. Jayarajan who had been most cooperative and encouraging throughout this project, and also I am very thankful to Jayrajan Sir
and Nutan Mam for their kind support.
I sincerely thank to Mr. Vivek Samarth, Anthony Santiago, Mr. Deepak Pohare who helped
and encouraged me during my internship.
I express my gratitude to all the working members of SAMSON FREIGHT PVT.LTD. I am
very thankful to all the people in Customs and CWC at CFS, Pimpri for their cooperation
whenever and wherever I required, who extended their ungrudging co-operation in giving
valuable suggestions for the enrichment of this project. Without their co-operation, this project
and my learning would have not been possible.
The internship would not have come my way if the Institute had not groomed us in a specific
way. I thank our Director, Mr Susheel Khandalgaonkar, former Director, Mr Ajay Nagre &
Mrs Vipra Tiwari for engraving on our minds the 'Ground Realities' and providing me with an
opening to the practical experience in the industry.

JAIDIP PATIL

Executive Summary
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It is very difficult to summarize what you have done for 4 weeks in just one page. But I am making an
effort to cover the important features and learning of my summers internship.
The Summer Internship gives us a first hand experience on the ground level work that is required to
complete the whole procedure of Exports and Imports. The Internship gives a practical insight into the
Export Import Procedures and its applications.
I have learnt that in International Trade the service providers play a major role. The Custom House
Agent, Freight Forwarder and the Shipping Company are the service providers in International Trade.
We are required to do our Summer Internship with one of these service providers.
I worked in Samson Freight Pvt Ltd., there I got exposed to the various documents like shipping bill,
invoice, packing list, ARE-1 and understood the practical implementation of them and their use in
International Trade.
Apart from this I also learnt the various Import Export Procedures, and what the various complexities
in executing them successfully. For doing this I had to refer to various books like the Handbook of
Procedures & Foreign Trade Policy, Customs Law Manual, Central Excise Manual, ITC(HS).
I also got exposed to the various other books & documents like the DEPB rate list, Excise Law Times,
EXIM(newsletter) in which I leant the various schemes like DEPB, DFRC, Duty Free, and Duty
Drawback. I learnt when the particular scheme is used and which color is used in the particular
shipping bill.
In SAMSON FREIGHT PVT. LTD., I was in documentation to learn the complete procedure, and
documents involved in the process of import and export. I also visited to the ICD and CFS, where I
was fortunate enough to see the stuffing process and the custom clearance. I was also able to prepare
the Shipping Bill and the Bill of Entry and calculate the relevant duty attached to it. I also came to
know what are the importance of each documents and what is the logical flow of those documents be it
the Imports or the Exports.
Thus, during internship, while working in different departments I was exposed to day-to-day activities
of a business, which includes appropriate communication & follow up with customers, shipping lines
CHAs and CFS.

OBJECTIVE

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The 8 weeks summer internship program is an essential part of the 2-year PGDIT curriculum.
The main objective of this program is to interlink the theoretical knowledge, which we get in
the first year of our PGDIT program with practical experience of the service industry like
Custom House Agents, Freight Forwarders or Shipping Companies, which basically deal in
clearing the goods from customs.
I received an opportunity to conduct my summer internship program in SAMSON
FREIGHT PVT.LTD., which is a Custom House Agent.
Some of the objectives that I carried in my mind while starting my summer internship
program are as follows: THE INSTITUTES OBJECTIVE

To understand the whole mechanics of the operations involved in

International Trade,

To observe the problems that arises in those particular operations, to analyze

the causes of the problem.
To experience the organizational realities of work.
To appreciate the value of the right work habits.
PERSONAL OBJECTIVE
To learn the activities that under go to make an Export/Import transaction
happens.
To have a firsthand experience of working in an organization related to
international trade.
To apply the theoretical aspects of the PGDIT-1 practically in working.
To experience the realities and the problems at the grass root level of an organization.
To learn the intricacies involved in Import Export and its processes.
To get a feel of operations in the International Trade with a sense of practical
approach.

COMPANY PROFILE
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The company was founded in 1987 with a view to service the industries in and around Pune
in the field of Freight Forwarding and Shipping. It was incorporated as a Pvt. Ltd. Company
in the year 1986-87, when it started operating as forwarders.
In 1990, Pune became a dry port and the company obtained its custom house agents license.
Since then Samson Freight has been a front-runner in the fields of forwarding, shipping,
custom clearance and now represents large business houses. It has its Registered Office
located in Kasarwadi, Pune, and a liaison officer in Mumbai. The company also has a branch
in Vapi in Gujarat and Aurangabad in Maharashtra.
Today, it affects customs clearances on behalf of quite a few importers and exporters located
in and around Pune and provide information about administration and other formalities when
required. It also has the sole agency of the Shipping Line called Maersk.
The company has two Directors
1. Mr. A.V. Samarth
2. Mr. V.Samarth
The company has three major shareholders and two minor shareholders.
Company Policy
Company strives to achieve excellence in its fields of activity with honor, integrity,
perseverance and professionalism.
Company Objectives
The objectives of the company are to provide a comprehensive service in all fields related to
International Transportation. To learn, understand, teach and execute the skills of the
profession to perfection.
In order to achieve these ends:
- Our employees are qualified and trained.
- Their integrity unimpeachable.
- Their work attitude positive with full knowledge
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Company Achievements:
1. First company to successfully bring in import cargo by rail to Pune for Customs
Clearance.
2. First company to bring in a full load for clearance of import cargo.
3. In the year 1995, was appointed handling agents for Maersk in Pune.
4. In the year 2000, was appointed handling agents for Maersk in Aurangabad.
5. In the year 2002, was appointed handling agents for Maersk in Vapi.
6. Containers handled during 2004-2005 approximately 3800 TEUs.
Services Offered:
1. Freight forwarding and Import consolidation.
2. Custom Clearance.
3. Transportation
4. Air Cargo
5. Sales and purchases of licenses
6. Freight booking
Multimodal transport arrangements using worldwide network of agents for
cargo movement
Major clients of the company
1) Bajaj Auto Ltd.
2) BUI Industries Ltd.
3) Dana India Pvt. Ltd.
4) Emitec
5) K. K. Nag Ltd
6) Oriental Rubber Industries Ltd.
7) Foseco India Ltd.
8) Trans Engineers Ltd.
9) Trent Ltd.
10) Union Exports
11) Union Batteries
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12) Tarini steel

Management
Managing Director

: Capt. Aashish Samarth

Marketing Head

Mr. Vivek Samarth

Documentation Head

Mr. Jayarajan

Operations Head

: Mr. Deepak Pohare

Co-ordination Head

: Mr. Anthony Santiago

Overview of Departments at Samson Freight

The different departments at Samson freight Pvt. Ltd. are:

Marketing Department

Documentation

Operations

Co-ordination

Finance

Organization Structure

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Managing
Managing
Director
Director

Managing
Managing
Director
Director
(Marketing)
(Marketing)

ManagerManagerMarketing
Marketing

ManagerManagerOperations
Operations

Jr.at
atICD
ICD
Jr.

Jr.CFS
CFS&&
Jr.
CWC
CWC

ManagerManagerAccounts
Accounts

Manager
Manager
Coordination
Coordination

Jr.Import
Import
Jr.

Jr.Import
Import
Jr.

Jr.Export
Export
Jr.

Jr.Export
Export
Jr.

ManagerManagerDocumentatio
Documentatio
nn

Jr.(Export)
(Export)
Jr.

Functions performed by different departments

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Functions:
1. Client Servicing
2. Quotations
3. Payment Follow up
4. Arranging Shipping line and Forwarder as per client requirements

OperationsFunctions:
1. Custom Clearance
2. Obtaining all the necessary permissions for import and export of cargo
3. Cargo stuffing and de-stuffing

AccountsFunctions:
1. Accounts
2. Billing

DocumentationFunctions:
1. Preparing Shipping Bill and Bill of Entry
2. Preparing and collecting all the documents for cargo clearance

CoordinationThis department is the link between all the internal departments. It helps to coordinate
various operations required for cargo clearance.

Functions:
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1. Coordinate all the operations involved in cargo (Import/ Export) clearance.

2. Maintaining inward and outward registers.
3. Tracking container movement.
4. Tracking documents.
5. Maintaining files.

STANDARD OPERATION PROCEDURE

Marketing
Factory stuffing format is provided to the exporters by marketing department
Forms and application obtained from exporter

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Coordination
Submit for inward entry-factory stuffing given to operations with factory stuffing format.

Operations
Obtain factory stuffing permission

Coordination

1 copy to be filed and 1 copy under cover letter to be forwarded to supplier

Export booking receivedEnter into job order register
All details entered
Request for written bookings
Freight and line if not known inform marketing

Marketing
Marketing to get freight and line approval
if marketing decides the liner then marketing to obtain RO and give vessel details.

Coordination
If freight predecided then coordination would follow up for release order and give vessel
details.
Finance
Performa disbursement is prepared and sent to the clients for estimated expenses

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Coordination
Place the job order to appropriate icd /cfs
If no release order, send mail to client informing that job order would be placed
the next day
Follow up for entry
-If entries not in factory within 24 hours of request time send mail to transporter informing him
no detention etc would be entertained.
-If entry delayed at factory send mail regarding probable detention that would be incurred
Receive export documents and send it to the documentation department

Documentation

Prepare shipping bills/customs file.

MD/GM to check and sign the shipping bill
-Check all details closely
-Vessel details
-Declaration

Coordination
Dispatch icd/cfs to reach before cut off time

Operation
Note asses and dispatch

Coordination

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Dispatch mail
GSP to be sent and submitted
Insurance notice sent (on arrival of cargo)
Prepare bill of lading
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GR/are customs attested invoice/packing list

-DEPB, DEEC, DFRC copies
Check n gate of entry, document submission
Dispatch and pass copy to accept
Enter export register updation
Follow up for bill of lading release
Follow up for export promotion copy
Follow up for mate receipt

Finance
Prepare invoice and send
Documentation
DGFT application

Coordination
Follow up for payment

Documentation

Billing of license
Follow up for payment
Coordination
Follow up for payment

My Activities at Samson Freight

My training started on 15th March 2010, and on the very first day I was asked to work in
documentation department under guidance of Mr. Jayarajan and the very first day I was going through
the SOP(Exports)
And terms related to EXIM. in the same week I covered the types of shipping bill which are as
follows:
S/B for export of duty free goods(WHITE)
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S/B for export of dutiable goods(YELLOW)

S/B for export of duty drawback(GREEN)
S/B for export of duty free goods ex-bond(PINK)
S/B for DEPB scheme(BLUE)
In the same week I have observed that for DEPB verification the following documents are send to the
customs:
Original DEPB license
Envelope of DGFT
Bank realization certificate
Original DEPB S/B
Custom attested invoice and packing list.
Xerox copy of S/B (EPcopy)
Xerox of ARE-1
Xerox of B/L
Also I learned that the certificate of origin is provided by following authorities DGFT, FIEO, CII,
Textile committee and its all 31 offices in India.
Also I went to all the important data which are entered into the shipping bill and made one shipping
bill.
With that I come to know that for preparation of shipping bill what essential documents are to be
required from the exporter and I come to know that for that INVOICE, PACKING LIST, and I if the
FOB value Is more than 25000USD than along with all the above mentioned documents GR form is
also required to be filled by the CHA.
The shipping bill has total of 6 copies and 7 in case of S/B of DEPB, DUTYDRAWBACK wherein 1st
two copies is for custom purpose,3rd copy is export promotion copy,4th& 5th copy is port trust copy
(original and duplicate).
I also come across factory stuffing format wherein customs instruct the excise for stuffing this is
prepared by the CHA and given to customs for approval that format has total of 5 copies.

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In the first week while learning all the essential documents related to the exports I come to know that in
the all export documents are divided into PRE and POST EXPORT DOCUMENTS which can be
classified as
PRE EXPORT DOCUMENTS

POST EXPORT DOCUMENTS

>PURCHASE ORDER
>FRIEGHT BILL
>IEC CERTIFICATE
>INSURANCE POLICY/MEMO
>LETTER OF CREDIT
>BILL OF LADING
>ORDER ACCEPTANCE
>BANK REALISATION STATEMENT
>INVOICE
>PACKING LIST
>ARE/EXCEMTION CERTIFICATE
>DECLARATION (DEPB, DEEC)
>VALUE DECLARATION
>GR FORM
>ISO CERTIFICATE
>IN HOUSE TEST REPORT
>CE CERTIFICATE
>COPY OF LICENCE (DEEC,EPCG)
>FACTORY STUFFING PERMISSION
>SHIPPING BILL
>CERTIFICATE OF ORIGIN (GSP)
>CHA AUTHORISATION
In the second week I was involved in learning of various documents related with imports such as bank
realization certificate, GSP, delivery order, CHA Authorization etc, wherein I went through the details
of mentioned documents and the importance of these documents in the export procedure. Then I went
through the checklist of all the export and import documents which is mentioned in the coming
reports.

EXPORT PROCEDURE
The Exporter sends Invoice + Packing List to the CHA
Communication with the consignor, about the Vessel details.
Obtaining Delivery Order for the release of the container from the container yard.
Preparing Shipping Bill depending upon the type of Export Incentive available.
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The sets of Shipping Bill +4copies of Declaration +Relevant Rate list are sent to CFS/ICD.
Goods taken to ICD/CFS and gets the gate pass--this is called Carting.
NOTING is done by the Customs.
Assessment is carried out are carried out; either first or second check.
After examination Custom report is made, which is signed by DC.
The Custom gives the LEO (Let Export Order)
Documents handed over to the Shipping Company for cargo load.
The Shipping Co. issues EGM in accordance to the cargo Manifest that is given to
Customs.
Mate Receipt received
Based on the Mate Receipt, Bill Of Lading is issued by Shipping Co.
The Exporter is handed over the Bill of Lading +Customs Invoice + Customs P/L + SDF/GR +
Exchange Control Copy of Shipping Bill.
After 15 days of dept. of vessel exporter submits EP Copy to DGFT for availing the Export
incentive.

After 15 days of dept. of vessel exporter submits EP Copy to DGFT for availing the Export
incentive.

Documents Handled During Internship

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Important documents in Exports procedure:

1 Invoice
A Proforma invoice is originated by the exporter and sent to the buyer. The format of the
proforma invoice is very near to the commercial invoice. When negotiations are finalized and
buyer intends to place an order, he normally requests the exporter to send Proforma invoice
incorporating all the details of proposed transaction. This invoice is often used by the importer
to apply for the letter of credit (L/C)
The commercial invoice is exporters bill for sale of goods. It is a prima facie evidence of
contract of sale and purchase. This invoice should be strictly according to the contract of sale
and should be on the paper of the seller and must be signed by the exporter or by the person
acting on his behalf.

2 Packing list
Packing list is a consolidated statement in a prescribed format detailing how the goods are
packed. It shows item-by-item the contents of the container shipped to enable the buyer /
receiver of the shipment to check the shipment. Customs uses packing list as a check-list to
verify the outgoing cargo (in exporting) and the incoming cargo (in importing).

3 Purchase order
An order is a commercial transaction which is not only important to the exporter and importer
but also of concern to their respective countries, since it affects the balance of payment position
of both the countries. Purchase order is also required by the licensing authorities, exchange
control authorities and banks dealing in the foreign exchange.

4 Order Acceptance

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The order acceptance is another important document prepared by the exporter confirming the
acceptance of order placed by the importer. Under this document he commits the shipment of
goods covered at the agreed price during a specified time.

5 GR form
GR (Guaranteed Remittance) form is prescribed by RBI for the purpose of exchange control
with bankers. Purpose of GR form is to enable RBI to ensure that the export proceeds from the
export are received in India through proper banking channels only within prescribed time
limits. Exporter has to file copies of GR form along with the shipping bill. If shipping bill filed
electronically then SDF has to be filed.

6 Shipping bill
Shipping bill is an application filed by exporter for getting permission for exports.Shipping bill
is the main document required by the custom authorities for allowing shipment.
There are five kinds of shipping bills
1. Export of duty free goods: White Shipping Bill
2. Export under claim for duty drawback: Green Shipping Bill
3. Export of dutiable goods: Yellow Shipping Bill
4. Export of duty free goods from bond (Ex-Bond): Pink Shipping Bill
5. Export under DEPB scheme: Blue Shipping Bill

7 Certificate of origin / GSP

Our country is developing country and hence goods exported from India are eligible for duty
rebate in the importing countries which are developed. This duty can be claimed by the
importer only by producing GSP (Generalized System of Preferences) certificate / certificate of
Origin to their customs. Under GSP, certain categories of manufactured and semi-manufactured

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goods are entitled for concessional rates of import duties in the member countries, thereby
giving benefit to importers the GSP countries.

8 Bill of lading
Bill of lading is a document issued by the shipping company or its agents. It serves three
purposes
1. It is the receipt of goods
2. It is an evidence of the contract of affreightment i.e. undertaking to deliver the goods in
the like order and condition as received, to the consignee or his order of assignee,
provided, the freight and other charges specified in the bill of lading have been duly
paid.
3. It is a title of property of goods.

9 Mates receipt
Mates receipt is issued by the chief of vessel after cargo is loaded. The receipt is of transferable
nature and must be presented in due course at the shipping companys office to be exchanged
into Bill of Lading.

10 ARE- 1 form
This is a Central Excise form required in case, when goods which are removed from
manufacturing unit, are subject to the Central Excise. This form is an application for removal
of excisable goods for export purpose claiming rebate on duty.

11 Marine Insurance Policy

Marine insurance is intended to protect the insured against the risk of loss or damage to goods
in transit due to marine perils. Marine insurance policy is a contract whereby the insurer
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(insurance company) in consideration of a payment or premium by the insured agrees to

indemnify the latter against loss incurred by him in respect of goods exposed to perils of the
sea.
12.Fumigation Certificate:
If exporter is moving the container in a wooden box then fumigation is compulsory. After
fumigation exporter gets fumigation certificate.It is the responsibility of the exporter. It is a
preventive measure for avoiding the chemical reaction taking place due to wooden box.
13. Form - N
An export consignment can be exempted from Octroi duty provided that N-Form (in duplicate) is
submitted along with the copy of the shipping bill with the concerned octroi check post. This
procedure pre-supposes that shipping bill is got processed well in advance of shipment
Where the Octroi duty has been paid and its refund is to be claimed, the exporter should fill in Form-C
(Octroi purpose) in duplicate and register it with the Octroi office.

CHECK LIST OF EXPORT DOCUMENTS

Factory stuffing permission
Purchase order
Letter of credit
Order acceptance
Inspection certificate/waiver
Invoice
Packing list
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ARE-1/exemption certificate
GR from
Declaration DBK/DEEC/DEPB
Advance license application/receipt
Advance license/DEEC
DEPB license
Commission agreement If any
Export license
Invoice for bought our material if merchant exporter
ISO certification
In House test report
EPCG license
CE certificate
I went through all the documents mentioned above in which my mentor Mr. Jayarajan Robin,
Ms. Nutan, Mr. Anthony Santiago had helped me to understand each and every documents
with minute details.

CHECK LIST OF IMPORT DOCUMENTS

Invoice
Packing list
Freight bill
Insurance policy/memo
Certificate of origin(GSP)
Purchase order/indent/ proforma invoice
Order acceptance
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Bill of lading
First check letter
Test bond/report
Double duty bond
Undertaking
Transit bond
Bank guarantee
Declaration
CE certificate
DEEC/DEPB License
GATT and small declaration
TR-6 challan
IGM
IEC certificate
CHA authorization
Previous bill of entry and invoice

Import Procedure
Importer gives Invoice +P/L to the CHA.
CHA prepares Bill of Entry with the Customs.
Contact the importer/Shipping Co. for ETA.
CAN Copy is given by F/F to the CHA
CHA goes to the Customs to file Bill Of Entry.
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Customs does noting (Thoka)
First check or second check is done.

Custom gives TR6 Challan with the help of which duty are paid in Custom bank.
CHA on behalf of the Importer pays the duty.
The shed Appraiser checks the goods.
After Examination is over, Out of Charge is given to the cargo (Gate Pass).

If we observe the procedure for Imports, it has a perfect flow. The process is bonded in a specific
manner. Each document in an organization carries a special importance. Every employee has a
specified work to do.
Inward register is utmost important for maintaining database of incoming documents in an
organization. Job order no. is useful for process carrying out inside an organization. In this process
documentation dept. sends letter to the client. Letter specifies remaining documents to be sent by the
client. Accounts dept. prepares Proforma Disbursement, which is an estimated initial expense. Until
and unless expenses mentioned in P.D. dont come, organization holds the process.

Documents Involved in Imports:

1. Invoice
2. Packing list
3. Bill of lading
4. Purchase Order.
5. IGM
6. Bill of Entry
7. Delivery Order
8. Examination Order.
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Bill of entry
Bill of Entry is required to be filed by the importer for custom clearance of the goods. There are 3
Kinds of bill of entry. Import duty is calculated in Bill of Entry.
1.

Home consumption B/E in white colour: this has to be filed when the importer wants to clear
the goods on payment of duty and remove them to his premises immediately.

1.

Into bond or bond to bond B/E in yellow colour: it is also known as Warehousing bill of entry.
This has to be filed when the importer does not want to pay duty immediately but prefers to keep the
goods in a warehouse and pay the duty subsequently and clear the goods for home consumption.

1.

Ex-Bond B/E in green colour: this has to be filed when the importer wants to clear the
warehoused goods for home consumption on payment of duty.

Import General Manifest (IGM)

IGM is a document to be filed with the customs by the carrier of the goods I.e. steamer agents /
airlines. However it issued by customs only. This document indicates the details of all good to be
unloaded at the port from vessel (ship) or aircraft. The IGM has to be filed within 24 hours after arrival
of ship / aircraft. However in case of vessel (ship) the manifest may be delivered even before the
arrival of the vessel. This enables the importer to file bill of entry & get them assessed & pay duty so
that the goods can be taken delivery soon after the unloading.
Freight declaration
Freight declaration is required to be obtained from the overseas supplier, in both cases, when the
importer agrees to pay the freight or the overseas supplier pays the freight.
Import license
This license is required to import of items mentioned in the restricted for import in ITC (HS)
classification. This is important for opening letter of credit and is required by the authorized dealer.
Declaration
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The importer is required to submit a declaration disclosing full and accurate details regarding to the
value of the imported goods and any other statement, information or document including an invoice of
the manufacturer of the imported goods as considered necessary for determination of value of
imported goods. Declaration form in duplicate duly signed by the importer should be attached with
original Bill of Entry.
TR6 challan
The duty can be paid in the designated banks of through TR6 challans. Bank endorses the payment
particulars in challan which is submitted to the customs. TR6 challan is mandatory for examination of
goods.
Delivery Order:
Delivery order is issued against letter of credit/ bill of lading. Delivery order is for factory/ICD
destuffing only. Cargo may be allowed to go out of ICD. Delivery order is issued for the Manager of
ICD. It is issued by the shipping line

Import duty calculation:

1. Amount in FOB, convert it in Rs by multiplying it by exchange rate.
Amount in Rs. + Freight + Insurance = Value in CIF term.
2. CIF value + 1% Landing charges = Assessable value
3. Basic duty = X% of Assessable value.
4. Assessable value + Basic duty = Total amount
5. CVD = Y% of Total amount
6. Educational cess = 2% on CVD
Secondary & Higher Educational cess = 1% on CVD
7. Cumulative Duty = Basic duty + CVD + Edu cess + SHE cess
8. Customs Educational cess = 2% on Cumulative duty.
9. Customs SHE cess = 1% on Cumulative duty.
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10. Additional customs duty = Z% on (7+8+9+Assessable value)

11. Total duty = Cumulative duty + Customs edu cess + customs SHE cess + additional duty =
Step 7 + Step 8 + Step 9 + Step 10

Schemes:
A scheme can be defined as an elaborate and definite plan of action which is beneficial for exporter
and

Importer. Ultimately, scheme supports in the growth of trading.

Different schemes under foreign trade policies

Duty Exemption Schemes enable duty free import of inputs required for export production. A Duty
Remission Scheme enables post export replenishment / remission of duty on inputs used in export
product.

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Duty Exemption
schemes

Duty Remission
Schemes

1. Advance
Authorization

Duty Entitlement Pass

Book scheme (DEPB)
Duty Draw Back (DBK)
scheme.

2. Duty free import

Authorization.

1.

Advance Authorization:

An Advance Authorization is issued to allow duty free import of inputs, which are physically
incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy,
catalysts which are consumed / utilized to obtain export product, may also be allowed. Advance
Authorizations are issued for inputs and export items given under SION. These can also be issued on
the basis of Adhoc norms or self declared norms. Advance Authorizations are exempted from payment
of basic customs duty, additional customs duty, education cess, anti dumping duty and safeguard duty,
if any

2.Duty Free Import Authorization Scheme (DFIA)

This scheme has been evolved by combining the salient features of the Advance Licensing Scheme &
Duty Free Replenishment Certificate Scheme (DFRC). DFIA is issued to allow duty free import of
inputs, fuel, oil, energy sources, catalyst which are required for production of export product. This

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scheme is in force from 1st May, 2006. These Authorizations shall be issued only for products for
which Standard Input and Output Norms (SION) have been notified.

3.EPCG
The object of this scheme is enhancement, modernization and technical upgradation of industrial
capacity. Import of capital goods (including second-hand) at 3% concessional rate plus educational
cesses under EPCG scheme, subject to export obligation, is applicable to all sectors and to all capital
goods without any threshold limit. Import of spares is also allowed. No payment of additional duty
(CVD) at the importers option applies.
In the current foreign trade policy, a well intended scheme has been continued for import of capital
goods with a concessional rate 3% with prescribed export obligation. This scheme is precisely known
as Export Promotion Scheme for Import of capital goods.

4.DEPB
The objective of Duty Entitlement Passbook Scheme is to neutralize the incidence of Customs duty on
the import content of the export product. The neutralization shall be provided by way of grant of duty
credit against the export product. Under the Duty Entitlement Passbook Scheme (DEPB), an exporter
may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible
currency. The credit shall be available against such export products and at such rates as may be
specified by the Director General of Foreign Trade by way of public notice issued in this behalf, for
import of raw materials, intermediates, components, parts, packaging material etc. The holder of Duty
Entitlement Passbook Scheme (DEPB) shall have the option to pay additional customs duty, if any, in
cash as well. Under the scheme Exporters are granted duty credits on the basis of pre notified
entitlement rates which will allow them to import input duty free The exporter can export any product
under this scheme provided the same is covered by SION. Goods in the negative list of exim policy
cannot be exported under this scheme. Application form is required to be filled within 12 months from
date of exports.

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5.Duty Drawback Scheme (DBK)

Under the duty drawback scheme the export products get relief in respect of customs and excise duties
and service tax paid on raw material, components and input services used in their production. There
are two types of rate of drawback. (a) All Industry Rates (b) Brand Rates. Here, the excise duty and
customs duty paid on inputs is refunded to the exporter of finished product by way of duty drawback.

What is SION?
The Norms published in the handbook of procedure vol-2 are for the purpose of facilitating the
determination of the proportion of various inputs which can be used or are required in the manufacture
of different resultant products. These norms are of immense importance for the purpose of licenses
under the Duty Exemption Scheme.

Conclusion
Summer internship proved to be a great learning experience. It gave me practical experience of
working in service organization dealing in import and export and gave exposure to the day to day to
difficulties which will always occur in completing even the simplest of the tasks.
Theory is better explained in classrooms whereas to get a firsthand experience of work you need to be
in an organization. All the theory taught in the classroom would not have found its meaning and
implication without these eight weeks of internship.
Work of CHA is very challenging and dynamic. They have to be updated with the changing rules and
regulation. The work of a clearing house agent does not end with the shipment of cargo. They have to
be in constant touch with the shipper regarding the status of the cargo until it reaches it destination.
Import-Export process is a complex process, which cannot be understood until and unless one has had
a practical experience in this field.

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This was my first work experience in the field of International Trade. It has helped me in
understanding various types of documents and procedure involved in international trade. I could
achieve both the academic and personal objectives completely. It gave me practical experience of
working in service organization dealing in import and export and gave a perfect overview of the
complete working of a Custom House Agent. I could learn both, Documentation and Operations.
Working in both these departments has helped me to track the flow of various documents perfectly. I
could see the process right form preparation of the document till finally handing over to customs /
customer. Working in different departments has made me understand how different processes are
internally connected and each cannot function independently. Being in different departments and
working with people at different level has also helped me to understand the way of making
communication and carrying out activities in an organization.
Also, on a personal front it was very exciting experience working with Capt. Ashish Samarth. As he is
the man of discipline, I became punctual. Also I learned the importance of working efficiently &
effectively. He taught me to work with integrity and professionalism
This was all about my experience during the summer training. I feel proud that I got an opportunity to
be a part of SAMSON FREIGHT PVT. LTD.

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