Know More BOOKLETS

A KM Team Initiative
EXPORTS & COASTAL SHIPMENT
Supply Chain Management Team, Mithapur

KNOW MORE DISSEMINATION BOOKLET

ON
“Supply Chain Management - Export & Coastal Shipment”
TABLE OF CONTENTS
o Preface by KM Team 03
o Foreword by B.L. Samani Head SCM. (Mithapur) 04

o Supply Chain Management - Introduction 05
o Export- an overview 08
o An Interview with Mr. P K Brahma 22
o Knowledge Sharing Session Learning 23
o Photo Gallery – Transportation & Loading at Okha Port 25
o Glossary of Common Terms 27
[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 2

Knowledge Management team at Mithapur is bringing out
functional dissemination booklets. These booklets contain
the broad description of the function and its importance to
the success of the Mithapur unit. This booklet also contains some knowledge sharing
sessions conducted within the department. This initiative, by focusing on each function shall
bring out the understanding on the salient features of each function in a clear, simple form to
all others.
In the first of the series, please find the Functional Dissemination booklet on “Supply Chain
Management – EXPORT and COASTAL SHIPMENT” at Mithapur for your reading. Please also
give your valuable feedback to the KM team so that the future booklets can take care of your
comments for betterment of the content and quality.
Happy Learning,
KM Team.

FOREWORD
At The very outset we would like to put on record of the noble concept of publishing a booklet
on EXPORT and COASTAL SHIPMENT by the K M team at Mithapur.
It has been a maiden venture both for S C M and K M team at Mithapur to come out with this
booklet, in which an in- depth flow of procedures and contemporary functionality have been
described lucidly.
The thoughts which have been drifting aimlessly throughout got manifested & could see the
light of reality in the form of this booklet and we cherish that this would disseminate
knowledge across.
The concept captured in this booklet bears the eloquent testimony of activities carried out in
SCM. Needless to mention, the activities embarked upon by SCM has been a quantum leap
towards perfection, compared to the earlier SC&F.
There has been a win-win situation both for the customer perspective and cost coefficient.
The robust and dynamic process undertook by SCM, could navigate the smooth sailing,
even in odds and earned the bundle of confidence.
Our appreciation goes to Ms. Malvika for putting her efforts to collate snips for this booklet.
Suffice it to say, the energy and perseverance that mingled together for jotting down the
concept, by Mr. P.K. Brahma is very much praise worthy and remind us the connotation “dare
to dream”.
Happy learning,
B.L. Samani
Head Supply Chain Management.

Supply Chain Management ‐ Introduction
zA snap shot of Supply Chain Management:

Supply Chain management is the nerve centre of any business organizations. A structured S
C M process plays a pivotal role in focusing logistic issues vis-a-vis imparting solutions
based on thread bare and break through analysis.
Since S C M being a cross functional approach to streamline the process for finished goods
evacuation in general and to meet the customer requirement in particular, needs a robust
process. The success story of Supply Chain Management is based on three important pillars
viz a) Innovation b) adaptability c) agility.
From the stand point of Tata Chemicals Mithapur scenario- here Supply Chain Management
encompasses the activities of out bound logistics of finished goods. The broad functions of
SCM is rest with Planning & Logistic Management through all the three modes of
transportation i.e. Rail, Road and Sea of all products like Soda Ash , Salt and Cement.
SEA CHANGE: A Journey from S C & F (Stock Clearing & Forwarding) to S C M (Supply
Chain Management)
There has been a sea change of activities of SCM now and then. The concept of SCM came
into being in the year 19002. Prior to that SCM was known as S C & F (stock Clearing &
Forwarding), merely engaged in low profile activities, compared to the present gigantic task
of holistic approach to the logistic management under the fold of S C M.
The core activities of the then S C & F was confined to the (a) keeping of stocks of finished
product and arrange for loading of trucks and wagons. Road and Coastal shipment was
under To Pay category and placement of truck and vessel was under the purview of the
customer. In a nutshell, a drudgery and monotonous activities. In the case of Rail movement
there has been no much difference between now and then in the case of documentation.
• SCM we see now
Since the inception of SCM, a volley of activities undergoes its fold, and there had been a
paradigm shift of concept i.e. primitive style of working to multifarious open house and wide
spectrum to cover. The dimension of SCM activities could be analyzed under two broad
categories:

Planning (production & distribution) & Logistic Management

The above two functionality could further be drilled down as
1. Supply Chain Planning and performance management
2. Execution of delivery and service to the customers / end users
3. Manage logistic and warehousing.
4. Responsible care.
There has been a routine cross functional approach with the operations, sales and marketing
team on regular basis. Information and concerns are captured and action plans are chalked
out. Apart from that there has been monthly sales operation meet, review of sales order
status, review of production plan, interact with Corporate supply chain to update and seek
guidance, participate in Key account workshop etc.
For marshalling the inherent skills and efforts of team , SCM has also extended its arena of
operation towards establishing C & F operations at various sensitive pockets across, so as
to tap the benefit from upcoming scattered market.
The effectiveness of S C M operations could be measured through key performance indicator

(performance measurement attributes) like (i) dispatch CLIP (ii) transit CLIP & (iii) OTIF
(here CLIP stands for Critical Line Item performance and OTIF stands for On Time In Full.)
A periodical review is done and corrective steps are initiated to set the process on rail. A
series of scientific approaches are in place to serve the customer at optimum cost. To this
end in view, the introduction of solver solutions to optimize the distribution cost and
installation of swipe card, en route for on line tracking of vehicles got applaused. Alike every
renowned business houses, we also conducted reverse auction of our own, for our out bound
traffic and got a quantum benefit. In last occasion the reverse auction was done by M
junction, where in a considerable benefit we could reap.
The last but not least, in the arena of responsible care ,the SCM comes in the forefront to
design develop and implement a chain of activities, to safeguard the interest of the
community as a whole, which echo the cardinal principle set forth by the management, to
that effect.

A comparative analysis of export and coastal shipment during the regime of SC&F and SCM
could be sketched here.
During the SC&F regime, export and coastal activities was at low ebb, using primitive method
of cargo handling equipment and moreover it was labor intensive. We were not focused
oriented on our performance rather we opted a casual look and approach to our endeavor.
During the passage of time, the concept of S C M emerged and rejuvenated the old habits and
practices. The usage of mechanical handling devices came into being for Jumbo bag
operation, which could be visualized through the attached snap shot (photographs). There
have been far reaching effect of introducing mechanical handling device for ship loading. By
the dint of using (spreader) multiple tackles, as shown in the photograph, we could achieve a
breakthrough in the performance ship loading rate . The mile stone we have achieved in
ship loading rate is as high as 3502 mt in 24 hrs. Compared to 800 to 1000 in erstwhile regime
( SC&F).
Moreover, Okha port loading operations was under the clutches of port labour union. The
dilly-dally attitude of port laborers, caused a great hardship both for cargo movement and
ship performance. That perennial problem got a severe jolt by inducting local laborers,
prone to enhance output. Thus performance of SCM got a sea change and gaining momentum
day by day.
Since SCM has been doing the multifarious activities as enumerated above, the Export and
Coastal shipment forms a part of such activities. To showcase the activities ushered towards
export and coastal shipment, a write up has been prepared on KSS and penned here.
Sea borne traffic has two segments (a) Export (b) Coastal shipment
Therefore, KSS covered the aspect of EXPORT and Coastal Shipment.

Export‐ an overview
In order to combat the dependency on Indian market and to get a foot-hold in the foreign
market it has become all the more essential to go in for exporting of our products.
With the globalization of Indian economy and to have a comfortable balance of payment
Exports & coastal shipment
position the govt. of India has taken multiple drives to boost export. The govt. has also come
up with the incentive scheme like Duty Draw Back, DEPB scheme, DFIA & EPCG scheme.
Among the most important Acts / publications which should be referred by an exporter in
connection with the processing of an export order, its execution and its fulfillment are the:
• Customs Act
• Carriage of Goods by Sea Act.
• Schedule of Charges of Goods in respect of the port of shipment.
The export activities could be bifurcated in three segments.
a) Regulatory, b) Mandatory c) Statutory
Regulatory:
1. Obtaining the Reserve Bank Code No.
2. Registration with Export Promotion Council
3. Obtaining and Import-Export Code Number.
Mandatory:
1. Export order from the foreign buyers
2. Letter of Credit (L C) will be opened by the foreign buyers in favor of the beneficiary
3. The L.C will specify
(a) qty. of goods to be purchased Per unit price,
(c) Amount,
(d) Port of loading,
(e) Port of discharge,
(f) Date of shipment etc. etc.

Statutory:
1) Execution of one time Bond, for removal of goods from the factory to port for exports
2) Pre-shipment and Post-shipment documentation.
Export may be done in two ways
(a) Export without payment of duty.
(b) Export under claim for rebate.
There are two categories of export without payment of duty-
(i) Export of finished goods without payment of duty under Bond or Undertaking.
(ii) Export of manufactured/process goods after procuring raw material without payment of
duty under bond.
Some important changes have been introduced under the present procedures, which are
mentioned below:
(i) The concept of furnishing of a `Letter of Undertaking` by a manufacturer exporter has been
introduced. The clearances for export by a manufacturer-exporter will be effected similar to
clearances for home consumption after furnishes the Letter of Undertaking. This is valid for
one year and to be renewed every year.
(ii) The merchant exporters are required to file `bond` in specified format & CT-1 has to be
obtained.
(iii) Under bond procedure, the concept of `self debit by the assessee has been introduced.
(iv)The procedure of `acceptance of proof of export` has been simplified. The concept of `self
credit` based on the copy of ARE1 duly certified by customs authorities at the place of export
has been introduced.
The goods shall be exported within six months from the date on which these were cleared for
export from the factory. ARE 1 form (application for removal of excisable goods) is prepared
in 5 copies for clearance of these goods. Goods may be dispatches by self-sealing and self
certification

zSelf-sealing and self-certification procedure:
Self-sealing and self-certification is a procedure by which the exporter who is a manufacturer

or owner of a warehouse, may remove the goods for export from his factory or warehouse
without examination by a Central Excise Officer. This procedure will also be permitted in the
cases where a merchant-exporter procures the goods directly from a factory or warehouse. In
both cases, the manufacturer of the export goods or owner of the warehouse shall take the
responsibility of sealing and certification. For this purpose the owner, the working partner,
the Managing Director or the Company Secretary, of the manufacturing unit of the goods or
the owner of warehouse or a person (who should be permanent employee of the said
manufacturer or owner of the warehouse holding reasonably high position) duly authorized
by such owner, working partner or the Board of Directors of such Company, as the case may
be, shall certify on all the copies of the application (A.R.E. 1) that the goods have been sealed
in his presence. The exporter shall distribute of the copies of A.R.E. 1 in the following
manner:
Original (First copy) and Send to the place of export along with the goods
Duplicate (Second copy)
Triplicate (Third copy) Superintendent or Inspector of Central Excise

and Quadruplicate having jurisdiction over the factory or
(Fourth copy) warehouse within twenty four hours of removal
of the goods
Quintuplicate (Fifth copy) Optional copy - Send to the place of export

along with the goods
Documents are processed through Customs and `let the export` is obtained. Cargo is
inspected by the Customs. Third party quality and quantity inspection is organized. The ship
is loaded. Mate receipt and B/L is obtained.
Pre-shipment: a) preparation of packing list. b) Performa invoice c) shipping bill d) DFRC

declarations e) G.R form f) ARE 1 form (five copies) Excise Challans are prepared whilst the
material is moved from the works.

Post -shipment: After sailing of the ship, the documents as mentioned above are
authenticated & sealed by the customs officials and hand over the same to us. The above
documents are submitted to the Bank for negotiating the payment from the foreign buyers.
Moreover, on completion of export, proof of export is submitted to the maritime

Commissioner with the all the relevant post shipment documents like certified copy of ARE 1,
certified copy of shipping bill, commercial invoice, Bill of lading and in some cases bank
realization certificate.
The above procedures are hold good for all excisable products; we intend to export, except
for salt. For salt, execution of Bond is not required but instead, we have to inform to the
Assistant Salt Commissioner Jamnagar to that effect. In some cases, export worthy certificate
has to be obtained from the office of the Assistant Salt Commissioner, Jamnagar
zExport to Nepal and Bhutan without payment of duty:
Export under bond to Nepal & Bhutan can be made where payment is in freely convertible
currency and subject to following conditions.
1) The importer in Nepal of Bhutan shall open an irrevocable letter of credit in favor of
exporter in India, before export takes place.
2) The exporter shall furnish a bond in specified form before the Deputy/Assistant
Commissioner of Central Excise.
3) The goods may be exported under Nepal Invoice prepared in six copies.
Rest of the procedure remains the same.
zExport under Claim of rebate:
It is essential that the excisable goods shall be exported after payment of duty, directly from a
factory or warehouse. ARE 1 is the export document, which shall be prepared in
Quintuplicate, similar to export under bond.
The following documents shall be required for filing claim of rebate.
a) A request on the letterhead of the exporter containing the claim of rebate.

b) Original copy of ARE 1
c) Invoice issue under Rule 11
d) Self attested copy of shipping bill

e) Self attested copy of bill of lading.

f) Disclaimer Certificate.
Export incentive: Hitherto, we have been claiming the DFRC benefit but henceforth DFRC is
replaced by DFIA claims. We are availing the scheme of EPCG and DFIA scheme.
EPCG: Export promotion of capital goods.
DFIA: Duty Free import authority.
z A short description of EPCG scheme:
The scheme allows import of new capital goods including CKD/SKD thereof as well as
computer software system at 5% customs duty subject to export obligation equivalent to 5
times CIF value of capital goods to be fulfilled over a period of 8 years reckoned from the date
of issuance of license over a period of 8 years. However, in respect of EPCG license for 100
crore or more, the same export obligation shall be required to be fulfilled over a period of 12
years. The capital goods shall include jigs, fixtures, dies and moulds. Spares may also be
imported under the scheme upto 20% of the CIF value of capital goods.
The scheme covers manufacturer exporters with or without supporting

manufacturer(s)/vendor(s), merchant exporters tied to supporting manufacturer(s) and
service providers. The export obligation under the scheme shall, be in addition to any other
export obligation undertaken by the importer, except the export obligation for the same
product under Advance License, DFRC,DEPB or Drawback scheme. The export obligation
under the scheme shall be, over and above the average level of exports achieved by him in
the preceding three licensing years for same and similar products.
A person holding an EPCG license may source the capital goods from a domestic
manufacturer instead of importing them. The domestic manufacturer supplying capital goods
to EPCG license holders shall be eligible for deemed export benefit under paragraph 8.3 of
the policy.
In the event of a firm contract between the EPCG license holder and domestic manufacturer
for such sourcing, the domestic manufacturer may apply for the issuance of Advance License
for deemed exports for the import of inputs including components required for the
manufacturer of said capital goods.

• DFIA benefit- Soda Ash
Coke 0.140 mt
Coal 0.440 mt
Lime stone 0.137 mt
Ammonia 0.003 mt
Corrosion Inhibitor 0.003 mt
Chemical for treatment of boiler water process water 0.010 mt
and cooling water
HDPE/LDPE/PP GRANULES Tare wt plus 5%
• DFIA benefit- Bicarb
Soda Ash 0.708 mt
HDPE/LDPE/PP/PLASTIC GRANULES packing Mat. Tare wt plus 5%
• Basics of Export
Why to export: To earn the foreign exchange
How to export: By self or through third party.
When to export: When the domestic demand crushed & surplus goods available.
What to export- The product which has competitive advantage in the foreign market.
Export is done under L C or Purchase order.
• Documentary credit of letter of credit:
Commitment of the bank to pay the seller of goods and services a specified amount, against
stipulated documents evidencing the shipment of goods within a prescribed of time.
There have been following types of LC
1. L C Revocable- canceled or modified without intimation.

2. Irrevocable- Payment cannot be withdrawn without the prior approval.
3. Confirmed LC
4. unconfirmed LC
With recourse- The beneficiary is bound to refund the money to the bank which has
negotiated the bill in the event of refusal by the buyer or opening bank to honor the bill,
where the buyer fails to pay after the specified period of undue delay his payment, the bank
can have recourse to the exporter for payment not only the bill amount but also expenses.
Without recourse- The liability of sellers ends after the bill is negotiated.

The most secured method of payment – Irrevocable confirmed and without recourse LC.
Parties in the L C
a) The buyer
b) Issuing or opening bank
c) Reimbursing bank
d) The seller or exporter
e) Advising / confirmation bank
f) Paying bank
g) Negotiating bank
Three agencies are involved for export
a) Excise b) Customs c) Port
There are 5 types of shipping bill (in quadruplicate form)
1. Claim of duty draw back = Green color.

2. Dutiable goods = Yellow color
3. Duty Free = White color
4. Duty free ex-bond = Pink color
5. Export under DEPB scheme = Blue color
Prohibited export items: Antique, Art treasure, Armed, narcotics etc.
Other products like Coffee, tea, Coir products can be exported against authorization/ licence
under respective acts.
Followings are the INCO terms used in export.

Ex works Tea, Coffee
FOR / FOT = Free on Rail / Free on Truck, FAS = Free along side
FOB = Free on Board, C&F = Cost & Freight
CIF = Cost Insurance & Freight DDP = Delivery duty paid.

Franco or Franco Domicile means free to the importer premises. This is perhaps the most
convenient of all possible terms for the buyers because seller undertakes all cost including
duties paid to deliver the goods to importer places.
z Export pricing:

Some coding is selected consisted of 10 separate letters and each letter to represent a
numerical figure.
For example: C R A Z Y M O U T H
1234567890
Example- the price is quoted Rs. 276 pmt; hence it could be read as ROM
While selling to abroad we may undergo the following risk
(a) Credit risk (b) Currency risk (c) Carriage risk (d) Country risk
z How to address:
For (a) Irrevocable, confirmed & without recourse L/C
For (b) (i) Forward cover from Bank authorized to deal in foreign exchange.
(ii)Export under Indian rupee.
For (c) Marine insurance policy.
For (d) Approach to ECGC
z Dumping:
Dumping refers to the selling in the foreign market at a price below the home market price.
According to some economists, dumping means selling in the foreign market at a price below
the cost of production. If the foreign price is above the home market price is called as reverse
dumping.
Dumping may be of three types – Sporadic, intermittent & long term.
Sporadic dumping is resorted mostly to sell the excess stock that may arise occasionally.
Firms indulging in sporadic dumping may not have any great interest or commitment in the
foreign market, their main interest may be to liquidate the excess stock.
Intermittent dumping refers to the periodic sale abroad of goods at prices below the home
market price. It is resorted to get foot hold in the foreign market.
Long period dumping may be resorted to facilitate the utilization of the full capacity to lower
the average cost and increase profit in the home market. The foreign market price must be at
least to cover the marginal cost of the product & his home market price must be above the
average cost.

Dumping is generally condemned. Most nation take measures to combat dumping by

imposing anti dumping import duty.
• Coastal shipment vis-à-vis Okha Port operation:
Gujarat `the jewel of the west` is a maritime state with the longest coast line (1290 km) in the
country. In view of the same, Gujarat has always been a significant maritime state due to its
long coastline and geographical location. The hinterland of the Gujarat ports includes large
part of Northern and Central India, including the states of Rajasthan, Haryana, Punjab,
Madhya Pradesh and Uttar Pradesh.
The GMB has 40 ports under its charge, which can be classified as under:-
Ten all weather ports.5 direct berthing for Ocean going ships (Okha, sikka, Muldwarka, Dahej
and Porbandar) 3 direct erthing for coastal vessels (Jafrabad, Bhavnagar and Magdalla) 2
lighterage ports ( Navlakhi and Bedi ) Thirty fair weather ports 7 lighterage ports and 23 ports
for sailing and fishing vessels.
There are Direct berthing facilities at Pipavav ( GPPL) and Mundra GAPL) are developed by
private /Joint venture company. At present, except for Okha, Sikka, Muldwarka, Dahej,
Pipavav, Mundra and Porbandar the remaining ports handle the cargo through lighterage
services.
• Philosophy of coastal shipment:
Coastal shipping is a very cost-effective method of transportation. It is by far the cheapest

mode of the comparative unit cost of transportation being Rs.1/- as against Rs.2/- by Rail,
Rs.5/- by Road.
It is also the most energy–efficient means of transportation, gifted by nature and does not
need any capital intensive for infrastructure development.
Low cost ports which having multi modal connectivity can offer quick and efficient
connections to the hinterland, will be able to leverage the cost advantage than other forms of
transportation.All over the world, what is called the short sea shipping, is given the highest
priority in transport policy formulation, not because of any ideological bias, but precisely
because it is seen as the best way of de-congestion roads, eliminating pollution and accident
on overcrowded highways and reducing the enormous costs of constructing and maintaining
these highways.

It is ironical that whilst rail transport accounts for nearly 57 percent of traffic moved and the
share of road ways is 41.5 percent, coastal shipping carries barely 1.5 percent of tonnage
with in the country.
We are hopeful that the coastal shipping in India which has a dismal growth all these years
despite its potential, is now gaining a significant boost.
Okha Port is termed as all weather port with direct berthing facilities and is situated on the
north-west coast of Saurashtra Peninsula at the mouth of Gulf of Kutch, on the west coast of
India. Okha is connected to the rest of India by broad gauge railway system. It is connected
by road to Jamnagar and then by National High way. Nearest airport is Jamnagar, which is
160 kms.
There are two berthing facilities available (a) Sayaji Pier and (b) Dry Cargo berth, which can
accommodate ships of around 10000 MT of bagged cargo and around 20000 to 25000 MT of
coal cargo at the jetty.
The length of jetty – Sayaji Pier – 180 mtrs (East) 110 mtrs, (West) and DCB Pier – 158 mtrs.
The coal is procured and shipped in various capacity of vessels ranging from 40000 MT to
50000 mt per vessel. The available draft at Okha port is 7.5 mtrs to 8.5 mtrs and it varies
during monsoon. Due to the draft restriction, coal is lightered to 50% at the anchor point in
mid sea. The self propelled and dumb barges are used for lightering operation. The coal is
unloaded from barges at Govind Ghat. Draft availability at Govind ghat is 3.5 mtrs. Max.
Currently only one barge is unloaded round the clock and second barge can be unloaded in
tide only. The Govind ghat has a bottleneck of discharging 10000 MT/day.
Anchorage is about 2.4 kms offshore. Vessels up to 9 mtrs. Draft and of any length can work.
Pilotage is compulsory. Two buoys about 360 mtrs. from shore, act as a navigational aids for
channel At channel point the depth is 4.2 mtrs and channel is surrounded by hard rock. Upto
10 mtrs. Dredzing could be possible near the jetty of Sayaji & DCB. As informed by Port
authorities, last dredzing was carried out in the year 2001 and they have a plan to carry out
dredzing this year also. The siltation problem mostly encountered at Govind ghat at regular
interval, where coal barges are unloaded. This siltation is cleared by the port authorities by
mechanical device. In view of the narrow entrance channel max. breadth of vessel is
restricted to 30.00 mtrs. Another steel jetty (V.K group) for lighterage, opposite to DCB pier
has remained incomplete since long.

• Details of Port charges
Port dues USD 0.12 per grt.

Pilotage USD 0.16 per grt.
Tug for berthing / unberthing USD 0.16 per grt.
Berth hire USD 0.04 per grt per 24 hrs or part there of
Wharefage charges
Soda Ash RS. 36.00 / PMT
Coal & coke RS. 40.00 / PMT
Godown rent RS. 135 per 10 sq. mtrs.

• Analysis of Okha Port traffic & Lay out:
1 Port lay out Available
2 Infrastructure Sayajee Pier: D C B (Dry Cargo Berth)

alongside berths & Length- 180 mtr. Width- 20 mtr. Length- 147 mtr Width- 20 mtr. a)
Products handled DCB berth, mostly handle bagged
a) Sayajee berth, mostly handle Bulk
at each jetty cargo
cargo.
b) When DCB berth is occupied, bagged b) When Sayajee berth is occupied,
cargo also handle at this jetty. Bulk cargo also handled at this jetty.
Infrastructure- Infrastructure-
No infrastructure available. Bulk cargo is No infrastructure available. Bulk
handled with the help of pay loader / Trex, cargo is handled with the help of pay
deploying trucks loader / Trex, deploying trucks
Products Handle Products Handle

Bulk cargo. Bulk cargo.
Coal, Coke, Lime stone, Bauxite, Clinker. Coal, Coke, Lime stone, Bauxite,
Clinker.
Bagged cargo
Bagged cargo
Soda Ash , Bicarb, Salt
Soda Ash , Bicarb, Salt
3 Berge jetties and Berge jetty`s name is Govindghat. It is Unfinished berge jetty- Length 120
other products opposite to Sayajee Jetty. One berge mtr. Draught- 2.0 mtr low tide.
handled at each could be handled at a time Draught- 2.0
jetty mtr. Low tide
Products handle-
Products handle-
Nil
Coal, Coke, Lime Stone, Clinker, Bauxite.

4 Godown space Godown No. Capacity ( mt )
and utilisation 17 3000
16 A 1300
16 B 1500
16 C 1300
10 1700
9 1400
6 800
Total 11000
5 Storage yards Storage Capacity :- 3 lakh tonnes
capacity and Utilization :- 2 lakh tonnes
utilisation
6 Barge Capacity & No. of Bsarge Capacity ( mt )

discharge can be 1. 1000
achieved 2. 1000
3. 1200
4. 1200
5. 1500
6. 2000
7 Charter 600
Discharge can be achieved: - 15000 to
18000 mt in 24 hours, depending on
Grab size utilized, sea condition, low
tide, high tide& distance.
7 Draughts at Berths Draught- Draught-

& Jetties (design & Design 9 mtr Design 9 mtr
existing ) Existing 8 mtr Existing 7.5 mtr
8 Additional Depth at Channel- 4.2 mtr at low tide
Information Depth at anchorage 15 mtr at low tide
9 Ref. no. of BA 0673 - Port Okha

Admiralty Chart

z Product wise dispatches Export & Coastal from Okha Port:

Year Product Export Coastal (mt) Analysis- Growth Analysis- Growth or down
or down fall fall
April -
March Export Coastal
2003-2004 Soda 120313 56876

Ash
Bicarb 3600 1620
Ind. Salt 4950 1880
IVSD 0 0
TOTAL 128863 60376
2004-2005 Soda 146523 41033 There was a growth There was a short fall in
Ash at all the segments growth of 9.41% compared
of the product, and to 03-04 However salt cargo
Bicarb 4600 1961 growth rate was was added in the port folio
18.96% compared Reason- poor market
Ind. Salt 7900 2295 to 03-04 growth.
IVSD 0 9890
TOTAL 159023 55179
2005-2006 Soda 107080 57573 There was a growth There was a substantial
Ash at all the segments overall growth of 39.09%
of the product, and compared to 04-05 Salt
Bicarb 1570 4150 growth rate was dispatches was alone
38% compared to increased by 63.30%
Ind. Salt 6550 1924 04-05. compared to 04-05
IVSD 0 26949
TOTAL 115200 90596 Reason- Export

market scenario
2006-2007 Soda 103150 54342 There was a There was a short fall in
Ash shortfall in soda ash growth compared to 05-06.
& salt dispatches
Bicarb 1600 2965 compared to
corresponding last
Ind. Salt 150 1505 year
IVSD 0 26968
TOTAL 104900 85780 Reason - Export Reason - Product

market scenario availability

2007-2008 Soda 68350 41247 There was a drastic There was a shortfall of
Ash shortfall in soda ash growth Compared to 06-07
and bicarb owing to discontinuance of
Bicarb 750 3522 dispatches coastal shipment to Mumbai
compared to & Haldia
Ind. Salt 0 830 corresponding last
year
IVSD 0 0
TOTAL 69100 45599 Reason-There was Reason: - cargo was moved

a substantial by Rail and road.
increase in export
through Kandla port
2008-2009 Soda 71150 55694 Situation marginally There was an improvement

Ash improved. compared to 07-08, owing
to the reason of using rail
Bicarb 500 6518 movement exclusive for salt,
barring a few occasion.
Ind. Salt 0 1101
IVSD 0 447
TOTAL 71650 63760 Reason-There was Reason:- Preferred mode

a substantial was coastal.
increase in export
through Kandla &
Mundra port.

Interview with Mr. P K Brahma

Deputy Manager – Supply Chain Management
Contact Details:
O) 02892 66 5328,
M) 09227882179
a) What are your views on the export function - relevance/importance/use/significance in the

current scenario in Tata Chemicals?
Well, any activities, we embark upon, requires a lots of tenacity and passion. Likewise,
Export related activities also calls for spontaneous and rigorous discipline to accomplish the
task at the appointed time.
In the present scenario of Tata chemicals Ltd which is widely acclaimed a global entity, calls
for strong footage in the foreign market. To this end in view we have segmented the market as
(s) Global (b) Non Global and (c) Spot. We could cater the requirement of all the three
segments in a phased manner.
However, since there have been a decent flow of demand from the domestic customers, we
need to have a draw a line and set a balance both for domestic and export supplies. Hence a
judicious call is always taken befitted to the exchequer.
b) Your views on major areas of concern related to the export (if any) and probable
innovative ideas of pro-active innovative thoughts to improve processes and prevent failure
incidences.
We have been exporting our cargo mainly through three ports (a) Okha (b) Kandla & (c)
Mundra. Exporting through Kandla and Mundra is almost done through container shipment
and cargo is containerized at quay. Since most of the abroad customers intend to have
containerized cargo, has necessitated us to comply with their requirement and to that effect
all necessary compliance is addressed at the respective port itself. Since Works does not
equipped with the facility to palletize the cargo, we need to take the help of stevedore at the
respective ports. However we have initiated a process to acquire dock leveler to facilitate
loading of Jumbo bag with the help of Fork Lift. This would eliminate the requirement of crane
and benefited to the exchequer.

c) Your experiences about working in export related areas – successes and failures, new
learning’s, best practices etc or anything related that you might want to share about.
I embarked my journey to familiar with Excise & Export related activities long back and even
before joining Tata Chemicals. I viewed the work more interesting, thought provoking and
graceful and allured me profoundly to plunge into that.
I started my carrier In TCL with MHY Dept. I was really thrilled when I got an opportunity to
work in Excise & Export related areas. It has been a rewarding experience for me & I got a
sigh of relief to get an entry to the work of my likings. No doubt, though export work is a
challenging one but a small patience, perseverance and aptitude can make a big difference.
I owed a lot to my all mentors for their kind support & guidance in the nick of time. There has
been no dearth of learning in TCL and if incumbent has a passion for learning and growth the
TCL paves the platform to soar.
Suffice it to say, there is no substitute for learning and no age bar even.
• Key Learning’s from KSS
Filled with passion, commitment & enthusiasm Mr. P. K. Brahma had lots in store to exude in
the Knowledge sharing session. Kudos to him as he had given a phenomenal session to all of
us. He was adjudged the most knowledgeable person where his impeccable work soothes the
complicated procedure of exports.

In KSS he had a rich basket of knowledge offerings, wherein our key learning’s were:
1. Knowledge about pre shipment & post shipment activities related to exports.
2. Knowledge about customs, port authority.
3. Pre shipment Documents.
4. Port rules & regulation
5. Infrastructure of the Okha port
6. Port Handling
The Knowledge of exports passed to all of us will eventually help us in shaping our learning
process, & enrich us with the process related to shipping during our stint in TCL.

PHOTO GALLERY:
Loading of jumbo bags at Okha port Lifting of material in jumbo bags at okha port
Lifting of material in jumbo bags at okha port Transportation and lifting of material in jumbo bags

Cargo ship ready to leave Okha port after
Material arranged in cargo ship loading of material

Glossary:
PAN = permanent a/c no. 10 digits
BIN = Business Identification No 15 digit.
GR = Guaranteed receipt
SDF = Statutory Declaration Form
FEMA = Foreign Exchange Monetary Act.
RCMC= Registration cum Membership Certificate.
EDI = Electronic data Interchange.
ECGC = Export Credit and Guaranteed Corporation India Ltd.
FEDI = Foreign Exchange Dealers Association of India.
DEPB = Duty Entitlement Pass Book.
DFIA = Duty Free Import authority
EPCG = Export Promotion of Capital Goods.
ARE = Application for Removal of Excisable goods.
DFRC = Duty Free Replenishment Certificate.
CKD= Complete Knocked Down
SKD= Semi Knocked Down
HDPE = High Density Poly Ethylene
LDPE = Low Density Poly Ethylene
PP = Poly Poplin
INCO = International Commercial term
MARPOL = Marine Pollution Act
P & I club =Protection & Indemnity Club
ISM = International Safety Management
I S PS= International Ship & Port Facility Security Code
TEUS = Twenty feet equivalent units.
FCL = Full Container load
LCL l = Less container load.
IMO = International Maritime Organization.
Trim = the difference between F & Aft draft or vice versa is called trim by stern or head.
List = The tilt of vessel from mean vertical line to sides,measured in degrees is called list.
1 nautical mile = 6080 feet or 1853 meters.

“Excellence is an art won by training and habituation. We do not act rightly because we have virtue or
excellence, but we rather have those because we have acted rightly.
We are what we repeatedly do. Excellence, then, is not an act but a habit.”
Aristotle (Ancient Greek Philosopher, Scientist and Physician, 384 BC-322 BC)

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A KM Team Initiative

EXPORTS & COASTAL SHIPMENT

Supply Chain Management Team, Mithapur

KNOW MORE DISSEMINATION BOOKLET

“Supply Chain Management - Export & Coastal Shipment”

o Foreword by B.L. Samani Head SCM. (Mithapur) 04

o An Interview with Mr. P K Brahma 22

o Knowledge Sharing Session Learning 23

o Photo Gallery – Transportation & Loading at Okha Port 25

o Glossary of Common Terms 27

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 2

Knowledge Management team at Mithapur is bringing out

functional dissemination booklets. These booklets contain

the broad description of the function and its importance to

comments for betterment of the content and quality.

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 3

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 4

Supply Chain Management ‐ Introduction

zA snap shot of Supply Chain Management:

• SCM we see now

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 5

Planning (production & distribution) & Logistic Management

1. Supply Chain Planning and performance management

2. Execution of delivery and service to the customers / end users

3. Manage logistic and warehousing.

The effectiveness of S C M operations could be measured through key performance indicator

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 6

Therefore, KSS covered the aspect of EXPORT and Coastal Shipment.

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 7

1. Obtaining the Reserve Bank Code No.

2. Registration with Export Promotion Council

3. Obtaining and Import-Export Code Number.

1. Export order from the foreign buyers

3. The L.C will specify

(a) qty. of goods to be purchased Per unit price,

(d) Port of loading,

(e) Port of discharge,

(f) Date of shipment etc. etc.

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 8

2) Pre-shipment and Post-shipment documentation.

Export may be done in two ways

(a) Export without payment of duty.

(b) Export under claim for rebate.

There are two categories of export without payment of duty-

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 9

zSelf-sealing and self-certification procedure:

Self-sealing and self-certification is a procedure by which the exporter who is a manufacturer

Triplicate (Third copy) Superintendent or Inspector of Central Excise

Quintuplicate (Fifth copy) Optional copy - Send to the place of export

Pre-shipment: a) preparation of packing list. b) Performa invoice c) shipping bill d) DFRC

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 10

Moreover, on completion of export, proof of export is submitted to the maritime

zExport to Nepal and Bhutan without payment of duty:

Rest of the procedure remains the same.

zExport under Claim of rebate:

The following documents shall be required for filing claim of rebate.

a) A request on the letterhead of the exporter containing the claim of rebate.

[ Know More BOOKLETS – A KM Team Initiative @ Tata Chemicals Ltd. Page 11

e) Self attested copy of bill of lading.

EPCG: Export promotion of capital goods.

DFIA: Duty Free import authority.

z A short description of EPCG scheme: