Pacific Institute of Management & Technology

A Summer Training Project Report on

CUSTOM CLEARANCE OF EXPORT CARGO

(K.C. CONSULTANCY, SEZ SURAT)

Name of Guide Ms. Khushboo Sharma

Submitted by Mr. Kailash Nagda ( International Business)

Company Profile
K.C. Consultancy is working as a CHA service provider. Company provides Custom Clearance of Export and Import cargos, logistics facilities, supply chain mgt., SEZ Consultancy, Port Clearing, Freight Forwarding, Transportation, Man power Supply, Third Party Logistic, Warehousing Distributions. K.C. Consultancy provide these facilities to the 30 -35 Companies. There are some companies:Repro India ltd. Nisa fabrics. grace ltd. Zota Health Care. Invent bio med. aayush India.

Objectives of the Study

To do a comparative study of the nature of custom procedure of SEZ and DTA. To do a comparative study of export documents required by SEZ and DTA. To identify the time taken for custom clearance from SEZ and DTA. Whether the Indian laws favorable for exporters in SEZ and DTA or not. To find out how much incentives given by Govt. to DTA and SEZs exporters.

Topic Review
Custom Clearance for Export
Consignment to be shipped arrives at the port The clearing agent is engaged Preparation of shipping bill Machine number allotted Case marked to the gate Case number entered Consignment is allowed to enter the port gate Case is marked by D.S. to inspector for examination Following documents provided: a) Packing List b) Invoice c) Letter of credit (Contract) d) Certificate of Origin If exporting for the first time: a) Sales Tax Registration b) Export Registration

Upon inspection case marked to D.S. for approval

Case marked to Superintendent for approval

Case marked to the D.C. for Out of Charge

Loading program is obtained and space is secured on the next available ship for desired port.

The container is sealed for shipment

Custom duties are deducted directly from exporters a/c

Research Methodology

1)Research period: 45 days (25th may to 10th july) 2)Types of research: Exploratory research Investigation into a problem or situation which provides insights to the researcher. 3)Location: K.C. Consultancy, SEZ Sachin, Surat. 4)Sample: 20 Exporters(10 DTA and 10 SEZ exporters)

5)Type of sampling: Random sampling 6)Data Collection Through

Primary Observation Interview Group discussion Secondary Wikipedia www.eximguru.com www.custom.gov.in www.indiandata.com

Analysis comparative study of the nature of custom procedure.

SEZ exporter DTA exporter No. of sample Tough Easy 10 3 7 10 8 2 SEZ % 100% 30% 70% DTA% 100% 80% 20%

SEZs exporters

100% 80% 60% 40% 20% 0% Tough Easy

DTAs exporters

According to SEZ exporter these custom procedure is easy as compared to DTA.

A comparative study of export documents are required from SEZ and DTA. SEZ exporter DTA exporter SEZ % DTA%
No. of sample Too much Adequate Too low 10 7 2 1 10 8 2 0 100% 70% 20% 10% 100% 80% 20% 0%

100%
80% 60% 40% 20% 0% Too Much Adequate Too low According to SEZ and DTA exporters in these custom procedure too much documents are required.

SEZs exporters
DTAs exporters

To identify the time taken for custom clearance from SEZ and DTA.
SEZ exporter DTA exporter No. of sample Very high High Adequate Low 10 4 3 2 1 10 7 2 1 0 SEZ % 100% 40% 30% 20% 10% DTA% 100% 70% 20% 10% 0%

80%
60% 40% 20% 0% Very high High Adequate Low According to SEZ and DTA, exporters these custom procedure is time consuming process.

SEZs exporters
DTAs exporters

Whether the Indian laws favorable for exporters in SEZ and DTA.
SEZ exporter No. of sample Yes No 10 7 3 DTA exporter 10 6 4 SEZ % 100% 70% 30% DTA% 100% 60% 40%

80% 60% 40% 20% 0% Yes No SEZs exporters DTAs exporters

According to SEZs 70% exporter says yes, the Indian law is favorable and rest of the says no. According to DTAs 60% exporters says yes, and rest of the says no.

To find out how much incentives given by Govt. to DTA and SEZs exporters.
SEZ exporter DTA exporter No. of sample Yes No 10 8 2 10 6 4 SEZ % 100% 80% 20% DTA% 100% 60% 40%

100%
80% 60% 40% 20% 0% DTAs exporters SEZs exporters

Yes No According to SEZs 80% exporters, tariffs and incentives provided by govt. and rest of the says no. According to DTAs 60% exporters are agreed and rest of the refused.

Conclusion
Nature of custom procedure is easy as compare to DTAs exporters. Documents are more required from DTA exports as compare to SEZ exports. In SEZ exports, custom procedure consume less time as compare to DTAs custom procedure. Indian laws are more flexible for SEZ as compare to DTA. Government provides more incentives and exemption to SEZs unit so export and foreign trade will increase.

Suggestion
The custom clearance for export cargo is such a long procedure for DTAs Exporter so it takes time to clear, so it should be easy. Government should provide more incentives, exemption and benefits to DTA , so export will be increase. Laws should be favorable for DTAs exporters. Custom procedure required more documents , so it should be more easier.