Monday, August 7, 2017 1

The Process In C&f Section

COL (R) MUHAMMAD KHALIL ZIKRIA TI(M)

 Organogram
C&F Section Karachi

3
 Organogram
C&F Section Karachi

Resident Manager

PROC HO

DM-TS (MATERIALS) M/DM-P (C&F)

GM Col (Retd) Zikria
DM-TS (MATERIALS)
MM
SE-P (Imp)
Mr. Maqbool

SUPERVISOR
I

ST-SS ST-SS SST-SS MST-IS SSR-SS

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Process In C&F Section
 Process In C&F Section

On reciept of PO check, photocopy and file.LC or DD letter

 Process In C&F Section
Import- Air Shipments
Receipt of shipment advice

Authorise Clearing Agent to collect documents from air

line/shipping agent

Forward to Head Office for bank endorsement L/c cases

Chase vendor for invoice if not received

Get Bank Guarantee or Indemnity Bond prepared

 Process In C&F Section
Import- Sea Shipments

Receipt of shipment advice

Collect docs from vendor or proc HO
Contact shipping line to obtain eta
Get shipping docus to CA for clearance
 Process In C&F Section
Export Cases Air & Sea

Obtain invoice from plant & process for export

Get material from plant after docs are prepared

Hand over material to clearing agent for export

Watch for reimport of material within time limit

Get Indemnity Bond released on reimport

 Process in C&F Section
Payment of Custom Duties & Allied Charges

Custom duties and allied charges are verified as per custom

tariff.

RM approval obtained.

Pay order is prep by Fin and handed over to CA same day

No upper limit for payment of duties.

 Process in C&F Section

Clearance of Consignment

Clearance is expedited by constant supervision and rendering

timely advice to Clearing Agent.

Transportation of material to plant

 Process in C&F Section
CA Bills

Scrutinized and corrected bills are forwarded to plant duly

approved by RM along with copies of Bill of entry, IT challans

and shipping documents

Copies of bes to EFU Rwp and complete shipping docus with

bes

To respective unit manager materials.

Original bes are dispatched to H O.

Original IT challans are dispatched to respective Plants.

 Process in C&F Section

STEP-1

Receipt of PO in C&F sec

Checking of PO

Photocopies of PO & related documents

Opening of PO file

Filing of PO & documents

Placing of file in the respective folder

 Process in C&F Section

STEP-2

RECIEPT OF L/C AMMENDMENT

PHOTOCOPY OF L/C

FILING THE COPY OF L/C IN RESPECTIVE FILE

PLACING THE L/C WITH PO DOCUMENTS

 Process in C&F Section

Receipt of shipment advice if air shipment

Issue authority letter to CA for collection of documents from

airline/shipping agent

Check documents in C&F section on receipt

Forward the documents to HO for bank endorsement

Trace out PO if not mentioned in AWB

Issue fax to vendor for Invoice if not received from air line

Prepare the photocopies of documents

Forward the documents to CA with PO & L/C under a covering letter

Carry out entry in Shipment Register

 Process in C&F Section
Receipt of shipment advice-sea shipment

Issue fax to vendor for docs in case the shipment is against advance remittance

Ask vendor through fax to expedite dispatch of original shipping docus for
shipment from Singapore & middle east.

Remind the vendor if no response received

Approach HO for docus

Receive & check the docus

Prepare photocopies of docus

Send the docus to CA under covering letter

Carry out entry in shipment register

Forward the shipping advices to CA received from shipping company

 Process in C&F Section
Shipping guarantees
Obtain the shipping guarantee in lieu of OBL
Forward the shipping guarantee to ho for Bank endorsement
Receive the shipping guarantee duly endorsed
Enter the particulars of shipping guarantee in the register
Receive the OBL
Forward the OBL to CA
Release the Shipping Guarantee
Record the return of the shipping guarantee in the register
Forward the cancelled shipping guarantee to Fin HO
 Process in C&F Section
Payment of custom duties & allied charges

Receive the demands for payment

Check the demands

Verify the ITC codes

Get the demands approved by RM

Forward the demands to finance

Receive the Pay Orders

Check the Pay Orders

Forward the Pay Orders to CA

Get the survey of shipment in case of Short Shipment

 Process in C&F Section
Payment of container security deposits

Pay the container security deposit

Record the transaction in a register

Try for an early release of security deposit after return of

containers to shipping company

Receive the pay orders of security deposit

Forward the pay orders to Finance for cancellation

Record the entry in register

 Process in C&F Section
Clearance of consignment

Follow up of case for speedy clearance

Obtain the clearance report from CA

Fax the particular of shipments dispatched to GM / MM

Close the case file

File the copies of dispatch report in respective file

 Process in C&F Section
EXPORT OF MATERIAL
Prepare The Export Documentation

Open The Export File

Forward The Documents To Clearing Agent

Forward The Indemnity Bond To Clearing Agent

Receive The Material From Plant

Handover The Material To Clearing Agent

Enter The Particulars Of I/B In Export Register

 Process in C&F Section

EXPORT OF MATERIAL
Obtain the shipping documents from Clearing Agent

Inform the shipment details to vendor through fax

DIspatch of documents to vendor

Watch the re-import of materials

Release the I/B from customs on re-import of material

 Process in C&F Section
Clearance of Clearing Agents bills

Receive the bills

Separation of I/T Challans and B/E

Checking of amount paid with payment receipts

Photo copies of I/T challans

Photo copies of B/ES

Despatch Of B/Es To Efu Rwp under covering letter

Despatch of IT challans to ho under covering letter

Despatch Of B/E to HO under Covering Letter

 Process in C&F Section
Checking of bills

To check all payment vouchers

Ensure that all advance has been adjusted

Ensure / check that all claims are as per agreement

Check / verify demmurage reasons

Verification and approval by SE/ DMP (C&F) /RM

 Process in C&F Section

Dispatch of bills

Preparation of letter and details of bills to be dispatched

Preparation of 2 sets photo copies of Shipping Documents

Preparation of set of bill i.e. Bill Vouchers, I/T Challans, B/E &
Shipping Docus

Dispatch of bills

Dispatch of shipping documents to MM , GM

Filing of photo copies of bill and vouchers in the respective file

for record
 Process in C&F Section
Maintain files record

Arrange files serial wise

Keep the files in store

Place the files at its respective serial numbers for reference at

later stage
 Process in C&F Section
Bill of Lading Checklist
Shippers name

Consignees name

Notify party

Vessel name

B/L number & date

Delivery agents name & address

 Process in C&F Section

Bill of Lading Checklist

Port of loading

Port of discharge

Mark & numbers

No of packages & description of goods

Gross weight & measurement

Freight status
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Commercial Invoice Checklist

Consignees name

Invoice number & date

General description of goods in ref to PO & L/C

Item vise value

Freight charges

Total value with INCOTERMS

H.S code number

 Process in C&F Section

PACKING LIST CHECKLIST

Consignees name
Packing list no & date
General description of goods
Quantity against each item
No of packages
Gross weight
Net weight
Dimensions
Process in C&F Section
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Customs Duty
Import custom duty rates in Pakistan vary from 0% to 100%,
Some Goods such as laptops, other electronic & meat of sheep
or goats etc.. Can be imported free of import duty.

Additional Custom Duty

1% additional customs duty also apply on all dutiable goods in
Pakistan for imported goods.
 Process in C&F Section

Sales Tax
All goods imported into Pakistan are liable to sales tax
at the time of import, except goods specifically exempted
under section 13, if exported by a manufacturer as
mentioned in SIXTH SCHEDULE The Sales Tax Act,
1990 (Start From Page No.105). When applicable, the
standard GST rate is 17% and the reduced rate is 5%,
calculated on the sum of the CIF value.
 Process in C&F Section

Additional Sales Tax

Here in Pakistan Commercial importer will have to pay extra
3% additional sales tax for imported goods.

Income Tax

There is a 6 % income tax in Pakistan for imported goods.

CESS Duty (Short form of assess)

Cess Duty on imported goods in Pakistan vary from 0.9% to

0.95% of CIF value of consignment
 Process in C&F Section
Excise duty
Excise duty is applicable on few merchandise such
as liquor and tobacco items. It can be applied ad
valorem calculated on the sum of the CIF value and
applicable duty, or it can be specific, i.e. charged per unit
of measure Import regulatory duty

Import regulatory duty is charged on some products

at a rate between 5% and 50% calculated on the CIF
value.
 Process in C&F Section

1. FOB (Free On Board):

FOB means Free On Board Or Freight On Board. FOB
origin indicates that consignee owns the goods in transit;
The cost of movement of goods on board of Airlines or
on board of ship is borne by the seller. Rest of all
expenses to arrive the goods at buyer's premise has to
be met by the buyer.
 Process in C&F Section

FOB Price
Free on board(freight on board) price means a price
which includes goods plus the services of loading those
goods onto some vehicle or vessel at a named location,
sometimes put in parentheses after the f.o.b.
 Process in C&F Section
CIF And CNF Shipping Terms:

CIF Shipping Term: Under CIF terms of delivery in

export business, Cost Insurance and Freight included in
the selling cost of goods. In Short all delivery expenses
up to predetermine destination is borne by the Seller
(Exporter).

CNF Shipping Term: The term CNF or CFR ( Cost and

Freight shipping terms) mean seller pay for the freight
and cost to the destination port. It means that the seller
pays for transportation to the Port of Loading (POL).
 Process in C&F Section
Let suppose you are a garments seller situated in Pakistan. The buyer is
situated in Los Angeles. You are the seller of goods and you have
contracted with the buyer and agreed to sell the goods on C&F Los Angeles
price of USD 56,000. Here the selling cost of goods is USD 56,000 C&F Los
Angeles. Here the seller(exporter) arrange to carry the goods to port and
meet all expenses including customs clearance and pays the ocean freight
or airfreight up to Los Angeles. In this case, the seller decides the shipping
company or airlines to move goods from Karachi to Los Angeles, as he is
paying freight of consignment. In other words, all delivery expenses up to
Los Angeles is borne by the seller. The buyer takes delivery of cargo after
customs clearance in Los Angeles at his own cost. Insurance of the goods is
met by the buyer in case of C&F transaction.

 FCL AND LCL DIFFERENCE

FCL (Full Container-Load): An ocean-shipping and inter-

modal industry term; a full container(Twenty or Forty-Foot) load
shipment is when a shipper contracts for the transportation of
an entire container. The vast majority of inter-modal and ocean
freight is contracted in this manner. Historically, FCL also
stands for full carload which is the primary business of all
modern rail-roads, and is the rail-road equivalent of TL trucking.
 FCL AND LCL DIFFERENCE

LCL (Less-Than-Container Load): An ocean-shipping

and intermodal industry term; LTL equivalent in container
shipping. Container freight stations at ports serve as
consolidation and deconsolidation terminals. Historically, LCL
also stands for less-than-carload. Before the prominence of
interstate trucking, railroads offered less-than-carload (LCL)
service but this business has largely disappeared.
 COMMERCIAL INVOICE
The International Commercial Invoice is an administrative
document which contains all the information about the international
sale. The item, quantity, price for the products/services sold,
delivery and payment conditions, as well as the taxes and other
expenses that might be included in the sale, are detailed in an
International Commercial Invoice. The importer, with the original of
the International Commercial Invoice, declares to the tax authority
of his country the amount that it must pay, to who it is going to pay
and the agreed means of payment. For the exporter, this document
means a documentary evidence of the sales that it has made in
foreign markets
 PACKING LIST
The Packing List is a more detailed version of the commercial
invoice but without price information. It must include, inter alia,
the following: invoice number, quantity and description of the
goods, weight of the goods, number of packages, and shipping
marks and numbers. A copy of the Packing List is often
attached to the shipment itself and another copy is sent directly
to the consignee to assist in checking the shipment when
received.
 L/C
In an Irrevocable Letter of Credit L/C the importers bank
agrees to the exporter (called the beneficiary) that the
exporter will get paid if it can prove it has shipped the proper
goods by providing the corresponding documents required by
the Letter of Credit. Exporters like Letters of Credit because the
advance assurance of payment ensures the seller that it will not
waste time preparing or shipping an order to a buyer who
ultimately refuse to accept or pay for the goods. An Irrevocable
Letter of Credit cannot be amended or cancelled without the
consent of all Parties
 B/L
A Bill of Lading B/L is a document issued by the agent of a
carrier to a shipper, signed by the captain, agent, or owner of a
vessel, furnishing written evidence regarding receipt of the
goods (cargo), the conditions on which transportation is made
(contract of carriage), and the engagement to deliver goods at
the prescribed port of destination to the lawful holder of the bill
of lading. A Bill of Lading is, therefore, both a receipt for
merchandise and a contract to deliver it as freight. There are a
number of different types of bills of lading and a number of
regulations that relate to them as a group of documents
 AWB
An Air Waybill AWB is a non-negotiable transport document
covering transport of cargo from airport to airport. The Air
Waybill must name a consignee (who can be the buyer), and it
should not be required to be issued to order and/or to be
endorsed as it is not a title of property of the merchandise.
Since it is not negotiable, and it does not evidence title to the
goods, in order to maintain some control of goods not paid for
by cash in advance, sellers often consign air shipments to their
sales agents, or freight forwarders agents in the buyers
country
 Multi Modal B/L
A Multimodal Bill of Lading FBL is an international transport
document covering two or more modes of transport, such as
shipping by road and by sea. It is also used as a carriage
contract and receipt that the goods have been received. When
it is issued to the order, the Multimodal Bill of Lading is title of
ownership of the goods and can therefore be negotiated. Only
authorized forwarders integrated into FIATA (International
Federation of Freight Forwarders Associations) can issued this
document. It is addressed to the exporter, Multimodal Transport
Operator on destination country, and the importer
 Certificate of Origin

Consignees name
Certificate number or date or both
Description of goods
Purchase order & L/C ref ( po ref only in case of advance
remittances)
Country of origin
 Certificate of Origin
The Certificate of Origin certifies the country in which the goods
originated or in which the preponderance of manufacturing or value
was added. It also constitutes a declaration by the exporter. Virtually
every country in the world considers the origin of imported goods
when determining what duty will be assessed on the goods.
Nevertheless the exporters own certification on company letterhead
will suffice. In most countries, Chambers of Commerce are the key
agent in the delivery of certificates or origin. However, in some
countries, this privilege may also be extended to other entities such
as ministries or customs authorities
 Inspection Certificate
The Inspection Certificate for pre shipment inspection is a
document issued by an authority indicating that goods have
been inspected (typically according to a set of industry,
customer, government, or carrier specifications) prior to
shipment and the results of the inspection. Inspection
certificates are generally obtained from neutral testing
organizations (e.g., a government entity or independent service
company such as SGS o Bureau Veritas). In some cases the
Inspection Certificate can come from the manufacturer or
shipper, but not from the forwarder or logistics firm.
 Process in C&F Section

Monitoring of Process
45 Processes of C&F Have Been
Identified and are Monitored in
Realtime
 PO/LC EXTRACTED FROM email 1
PO/LC EXTRACTED FROM SAP RIZWAN 2
PO CASES FILES PREPARED FAREED 3
ENTRY OF PO DETAILS IN PC 1
TELEPHONE LAISION WITH AIRLINES/SHIPPING LINES SHAHEEN 60
SHIPMENT ADVICE DOC LINK WITH CASE FILES SHAHEEN 10
DOC ORIG/COPY PROCESSED FOR CA SHAHEEN 10
emails ISSUED MAQBOOL 10
FAX ISSUED RIZWAN 10
LETTERS ISSUED
TRACKING OF DHL/FEDEX/TNT CONSGNMT FROM NET RIZWAN 5
CUSTOMS DEMANDS EXTRACTED FROM emails RIZWAN 2
DEMANDS PROCESED FOR PAYMENT 25
emails ISSUED FOR DESP OF CONSNMT SHAHEEN 5
emails ISSUED AGNST FAX INQUIRY TO FRT FWDR RIZWAN 5
PAYORDERS HANDED OVER TO CA SHAHEEN 5
DAILY STATUS ENTRY IN SHPMNT REGISTERS 5
OPENING OF BIDS RIZWAN 15
CST PREP MAQBOOL 30
SEGREGATION OF CA BILLS RIZWAN 10
CHECKING OF BILLS 15
DESP OF BILLS THRU FIN KHI -PREPARE SET FOR DESP OF CA
BILLS
CHECKING OF FRT FWDR INVOICES RIZWAN 3
PAYMENT AGNST FRT FWDR INVOICES RIZWAN 5
 PLACEMENT/ RECORD OF CLOSED FILES IN STORE
RECORD/MAINT OF GENERAL FILES
LC RECORD MAINT
DD RECORD MAINT
BL/BE RECORD
ENTRIES OF CLOSED FILES IN PC
DOC DESPATCHED TO PLANT GM/MM
BE DD CASES FWD TO EFU
DD CASES B/E DESPATCHED
LC CASES B/E DESPATCHED
CLOSED FILES ENTERIES MADE IN PO REGISTER N PLACED IN
STORE
CLOSED FILES FOR DESTRUCTION BOARD
AMMENDMENT RECORD MAINT
CANCELLATION OF RECORD MAINT
REVISED PO RECORD MAINT
FILE COVERS FOR NEW PO FILES
ATTACHMENTS EXTRACTED FROM SAP
EXTRACTION OF SHIPPING RECORD FOR PHOTOCOPIES
DESPATCH OF IT CHALLANS TO FFC RWP
PHOTOCOPIES OF PO
CONCLUSION