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Documente Profesional
Documente Cultură
PROJECT REPORT
SUBMITTED TOWARDS
PARTIAL
FULFILLMENT
OF
MASTER OF INTERNATIONAL BUSINESS
(Affiliated To Ch. Charan Singh University, Meerut)
Academic Session
[2007-2009]
Submitted by:
Mayank Rastogi
9357029
UNDER THE GUIDANCE OF:
External Supervisor: Internal Supervisor:
Mr.Pramod Thapliyal Ms.Divya Agnihotri
Sr.Manager-International Marketing Lecturer
Good Luck Steel Tubes Ltd. IMS-GZB
Good Luck House
Ambedkar Road,
Ghaziabad-201001
Preface
Acknowledgement
Executive Summary
Objective of Study
Methodology
Achievements
Infrastructure
About of Infrastructure
Quality &Technology
International division
Export Procedure
Export Documentation
Finding
Conclusion
Recommendation
PREFACE
The basic approach in the project has been to describe the documentation involved in
exports in a lucid and easy-to-understand manner with the help of diagrammatic
representations.
With the deep sense of gratitude, I wish to place on record my profound thanks to all those
who supported and encouraged me to come out with this project work successfully.
Last but not the least; I am very thankful to my family and my friends who continuously
support me during my project.
Mayank Rastogi
MIB III Semester
EXECUTIVE SUMMARY
The project is an extension report on how the GLST makes its export, how the company
has been tackling the present tough situation, how it is cooping up by the allegations of
the quality of its products and how the company has been increasing its export. The report
begins with the introduction of the Good Luck Steel Tubes Ltd. and the description of
various types of product manufactured by Good Luck Steel Tubes Ltd.
The report also contains export procedure followed by the Good Luck Steel Tubes Ltd.
and the documentation involved in managing exports.
In today’s world of cutthroat fierce competition, it is very essential to not only exist but
also to excel in the market. Today’s market is enormously more complex. Hence forthy, to
survive in the market, the company not only needs to maximize its profit but also needs to
satisfy its customers and should try to build upon from there.
OBJECTIVE OF STUDY
The objective of this project is to study the process of export documentation which plays a
vital role in international marketing by facilitating the smooth flow of goods and payment
these of across national boundaries and incentives given by the government to promote
India steel export.
Good Luck Steel Tubes Ltd. is one of the most admired steel manufacturers and exporter
in India. Founded in 1987 with a great idea to build a strong relationship with the
customers, through commitment to excellence, spirit of innovation, team work and
dedication to ethics. By combining the technical expertise with deep understanding of
customer need, they have achieved a phenomenal growth in terms of sales and production.
This continued development has made Good Luck products a major force in the arena of
steel as well as contributing substantially to the nation’s economic and social
development. It manufacturers and exports Galvanized Steel in thickness starting from
0.14mm and a maximum width of 1000mm, at its state-of-art manufacturing unit
equipped with an installed capacity of 50,000 Metric Tonnes per annum. Good Luck Steel
Tubes is manufacturing with world-class characteristic, workmanship and reliability to
deliver complete satisfaction. Good Luck proudly delivers steel that withstands harshest
environment and the most rigorous conditions.
The state-of-art 4Hi, 1000mm. wide cold rolling mill is efficient to maintain close
thickness tolerance and flatness to meet demand from wide spectrum of manufacturer and
all O.E.M. requirements.
EXPORT
Good Luck’s products have earned a commendable reputation not only in India but also
abroad that enabled it to expand its horizon in over 60 countries like U.K., Latin America,
Singapore, Australia, South Africa, West Indies, Ethiopia, Ghana, Nigeria, Sri Lanka,
Oman etc. A decade long experience in export market with an international quality
product has helped GLST to build a strong and extensive base of satisfied customer all
over the world. All these achievements inspired GLST to work relentlessly to earn more
and more confidence of our valued customer. The mission at GLST is to make customers
proud of their choice.GLST’s products have earned the reputation of impeccable quality
and total reliability that has manage it to rope in an impressive list of clientele in Public
sector, Central or State Govt. & OEM’s.
SPECIAL EXPERTISE
The journey from supplying black steel pipes to becoming one of the leading
manufacturers of Black and Galvanized Pipes & Tubes, Cold Rolled Steel &
Galvanized Sheets / Coils has been filled with accomplishments and accolades.
Company Profile
Capability to manufacture custom made Pipes /Structures /Poles /Towers etc., also.
Also manufacturing Hollow Sections, Poles, Towers (Transmission /
Telecommunication), CR Coils and GP/GC Sheets.
Production capacity of 1, 50,000 Tonnes Per Annum.
Latest Technology, Plant & Machinery, and Testing Equipments blended with
vigilant Quality Assurance Department.
Products regularly inspected by various Third Party inspection Agencies both from
National & International Sectors viz SGS, Bureau Veritas, Lloyds, QSS, Crown,
TUVetc.
“Good Luck”, because of its skilled management is unison of Cost, Quality &
Delivery.
Today, “Good Luck” enjoys strong satisfied Customers base both within India and in
highly sensitive markets of countries like Belgium, Germany, Greece, France,
Netherlands, Sweden, UK, Dubai, Iraq, Kuwait, South Africa, Australia, New Zealand,
and U.S.A.etc.
Mission
Vision
Core Values
Customer Loyalty.
Customer Satisfaction.
Commitment to Quality.
Continuous Communication.
GLST STRENGTH
Technical:
GLST have assimilated the process technology, which enabled it to get important
breakthrough by in house R&D.
Units ensuring uninterrupted supply to the customer.
Human Resources:
Highly dedicated team at all levels.
Continuous Training from Experts to keep up with the latest technology & trends.
Backward/sidewise integration:
In House Formaldehyde plant.
In House Paper printing facility.
In House Plate polishing and matting facility.
1. Growth
2. Profitability
3. Image
Pipe Division
With combined capacity of more than 1, 00,000 MT, Pipe Division manufactures all kind
of ERW Black Steel Pipes for various purposes.
Coal Division
Hindon Carrying Co. Corporation (P) Ltd. is the division of the Good
Luck Group
Involved in the supply of Indian & Imported Coal/Coke of all types.
International Division
MANAGEMENT
CHAIRMAN DIRECTOR
Pushpa Garg
Anurag Agarwal
R.C.Garg
Kanak Lata
Rahul Goel
Vijendra Tyagi
Business Philosophy
Staff.
Customers.
Shareholders.
With these values, they aim to be India's leading export house. Our organization is
dedicated in putting the customers first by developing ideas and supplying products in
the closest possible partnership for creating mutual growth.
Future Outlook
With its customer focused approach, emphasis on quality products & services combined
with highly competent management to guide, Good Luck Group is all set to become
India's leading business house. The organization would continue looking forward to
expansion and continuous growth.
Quality
Has in- house testing facilities to undertake all types of quality testing.
GLOBAL PRESENCE
GLST enjoy the trust of their wide clientele spread over 90 countries that include:
UK.
Singapore.
South Africa.
Oman.
UAE.
Australia.
New Zealand.
East & West Africa.
Latin America.
Trinidad.
Ghana.
Haiti.
Ethiopia.
Sri Lanka.
Madagascar.
Methodology of the study refers to the methods used to collect the required data for
research work. The research is exploratory in nature. The data required has been collected
from the following sources:-
Primary Sources:
“Those data which are collected at first hand either by researcher or by someone else
especially for the purpose of the study”. The following point is used to considered for
collecting primary data.
Secondary Sources:
“Any data which has been gathered earlier for some other purpose are secondary data
in the hand of researcher.” ”. The following point is used to considered for collecting
secondary data.
1. Records of the company: This helped me to get details, regarding the history of the
company.
2. Library Research
3. A number of books on international business were referred to collect theoretical
background relating to export procedure.
ACHIEVEMENTS
INFRASTRUCTURE
Factory Set Up
Production capacity
They have further expanded our set up to undertake the production of our various
other steel products.
QUALITY AND TECHNOLOGY
CERTIFICATES
The ISO 9001 Certificate awarded by the DET NORSKE VERITAS (DNV).
Certified for the quality standards our Sikandrabad plant adheres to. This is valid
for the manufacture and supply of
• ERW steel tubes (black and galvanized).
• CR strips.
• Galvanized Sheets/Coils.
This accreditation by the International Agency is added confirmation to
the competence of the company to deliver quality products.
BIS Certificate Marks license, awarded by
the Bureau of Indian Standards.
SCAFFOLDING FITTING
TOOLS & SYSTEMS
Hand Tools, Machine Scaffold fittings, Couplers,
Tools, Garden Tools... Joint pins and Scaffolding
systems...
CONSTRUCTION &
BICYCLE & BICYCLE BUILDING
PARTS HARDWARES
Bicycles, components and Sanitary fittings, Kitchen
accessories for all make fittings & accessories, Wall
and grades ... & Floor tiles, window and
door sections ...
GENSETS
/ OTHER PRODUCTS
Pipe, Pipe fittings, Valves,
INVERTERS Water meters, Fasteners,
Engines and Gensets, Steel structures, Hand
Diesel Engines, Power pumps and Light
Generators, Alternators engineering goods...
and Inverters...
AUTOMOBILE SPARE
PARTS PROJECT EXPORTS
Automobile spare parts, Tube mills, Plants,
components and various Transmission tower, and
accessories for 2-wheelers, accessories...
3-wheelers and MUVs ...
NATURAL STONES
exporting wide range of natural stones including
granite, marble, sandstone, lime stones and slate etc.
REGISTRATION STAGES
The exporter is required -to register his organization with a number of institutions and
authorities, which directly or indirectly help him in the smooth conduct of export, trade.
The registration stage includes:
b. Opening-Bank Account: - The' exporter should open a current account in the name
of the firm or company with a commercial bank which is authorized by the
Reserve Bank of India (RBI) to deal in foreign exchange. Such bank also serves
as a source of pre-shipment and post-shipment finance for the exporter.
c. Obtaining Importer-Exporter Code Number (lEC No.): - Prior to 1.1.1997, it
was obligatory for every exporter to obtain CNX number from the RBI. However,
since then, IEC number issued by the Director General for Foreign Trade (DGFT)
has replaced the CNX number. The application form for obtaining IEC number
should be accompanied by fee of Rs. 1000.
e. Obtaining Sales Tax Number: - Exportable goods are exempted from sales tax,
provided, the 'exporter or his firm is registered with the Sales Tax Authorities. ,
For this purpose, the exporter is required to make an application in the prescribed
form to the' Sales Tax Office (STO) in whose jurisdiction his {exporter's). Office
is situated
g. Registration with ECGC: - The exporter should also register with the Export Credit
and Guarantee Corporation of India (ECGC) in order to secure overseas payments against
political and commercial risks. It also helps the exporters in obtaining the financial
assistance from commercial banks and other financial institutions.
h. Registration with other Authorities: - The exporter should also register with
various other authorities, such as:
Export, cargo can be exported to the overseas buyer by sea, air or land. However,
shipment by sea is the most popular and generally resorted to, as it is comparatively
cheaper. Besides, the ship's capacity is far greater than other modes of transportation.
Nevertheless, transportation by air is utilized for export of expensive items like,
diamonds, gold, etc. The shipment stage includes the following steps:
d. Customs Clearance: - The cargo must be cleared from the Customs before it is
loaded on the ship. For this, the above mentioned documents, along with five
copies of shipping bill, are to be submitted to the Customs Appraiser at the
Customs House. The Customs Appraiser ensures that all the formalities relating to
exchange control, quality control, pre-shipment inspection and licensing have
been complied with by the exporter. After verification, all documents, except the
original GR, original copy of Shipping Bill and one copy of Commercial Invoice,
are returned to the C&F agent.
e. Obtaining 'Carting Order' from the Port Trust Authorities: - The C&F agent,
then, approaches the Superintendent of the concerned Port Trust for obtaining the
'Carting Order' for moving the cargo inside the dock. After obtaining the Carting
Order, the cargo is physically moved into the port area and stored in the
appropriate shed.
f. Customs Examination and Issue of 'Let Export Order’ : - The Customs Examiner
at the port of shipment physically examines the goods and seals the packages in
his presence. The same can be arranged for at the factory or warehouse of the
exporter by making an application to the Assistant Collector of Customs. The
Customs Examiner, if satisfied, issues a formal permission I' for the loading of
cargo on the ship in the form of a 'Let Export Order'.
g. Obtaining 'Let Ship Order' from the Customs Preventive Officer: - 'Let Export
Order' must be supplemented by a 'Let Ship Order' issued by the Customs
Preventive Officer. The C&F agent submits the duplicate copy of Shipping Bill,
duly endorsed by the Customs Examiner, to the Customs Preventive Officer who
endorses it with the 'Let Ship Order'.
h. Obtaining Mate's Receipt and Bill of Lading: - The goods are then loaded on
board the ship for which the Mate or the Captain of the ship issues Mate's Receipt
to the Port Superintendent The Port Superintendent, on receipt of port dues, hands
over the Mate's Receipt to the C&F Agent. The C&F Agent surrenders the Mate's
Receipt to the Shipping Company for obtaining the Bill of Lading. The Shipping
Company issues two to three negotiable and two to three non-negotiable copies of
Bill of Lading.
c. Confirmation of Order: - Once the negotiations are completed and the terms and
conditions are finalised, the exporter sends three copies of Performa Invoice to
the importer for the confirmation of order. The importer signs these copies and
sends back two copies to the exporter.
d. Opening Letter of Credit: - The documentary credit or letter of credit is the most
appropriate and secured method of payment adopted to settle international
transactions. On finalization of the export. Contract, the importer opens a letter of
credit in favour of the exporter, if agreed upon in the contract.
g. Packing and Marking: - Then the goods should be properly packed and
JXl8.rkedwith necessary details such as port of shipment and destination, country
of origin, gross and net weight, etc. If required, assistance can be taken from the
Indian Institute of Packing (IIP).
i. Central Excise Clearance: - The exporters are totally exempted from the payment
of central excise duty. However, the exemption should be* claimed in one of the
following ways:
Export under Rebate.
Export under bond.
j. Obtaining Insurance Cover: - The exporter must take appropriate policies in order
to insure risks: -
ECGC policy in order to cover credit risks.
Marine policy, if the price quotation agreed upon is CIF.
Customs Invoice.
Packing List.
(c.) LETTER OF INDEMNITY: - The exporter can get immediate payment from his
bank on the submission of documents by signing a letter of indemnity. By signing the
letter of indemnity the exporter undertakes to indemnify the bank in the event of non-
receipt of payment from the importer along with accrued interests.
Once the goods are ready, an exporter has to prepare and execute various documents at
different stages of sending the shipment of goods to the importer. These documents are
important for two reasons:
(a) As an evidence of shipment and title of goods and
The various documents are therefore, of vital interest to the exporter and the Bank which
is the usual media of payment. The documentary requirements are both regulatory and
operational in nature and have to comply with the Rules and Regulations of the Indian
Government as well as the importing country for different types of products. These
requirements are different for different types of products. When exporting for the first
time, exporters should, always find out from their buyers the documents required for the
product concerned.
Accuracy and completeness are a prime necessity in documents covering export
shipments. Whether two or twenty copies of the Invoice are required by the buyer, the
same should be supplied as; the buyer probably has some reasons for it. Minor
discrepancies of any kind either in the date itself or in the typing in the documents, which
look harmless sometimes, assume a men acing form. Erasures and strike over in typing or
changes or additions made in ink must never be indulged as these only arouse the
suspicion that the documents have been tampered with. Any alteration or addition made
by an Authority issuing the documents must be endorsed properly, with the signatures of
the person issuing the documents only. If the documents are not the correct ones or if they
are not filled in correctly to the last, the importer may not be able to get the goods when
the ship carrying them arrives. This may seem obvious but it bears emphasis since both
the requirements and penalties are greater beyond comparison in export than in domestic
trade.
The main purpose of the documents accompanying a shipment is to provide a specific and
complete description of the goods so that they can be assessed correctly for Duty purpose
and meet the Import Licensing requirements or Import Quota Restrictions imposed on the
goods for clearance purpose. If there are any discrepancies in the documents and or if the
required documents are not produced, the shipment may not be allowed for import or may
even be confiscated by the Customs of the importing country. There is a plethora of
documents in export trade - different forms, applications and documents are required to be
filled in for obtaining Export Licenses, completing Pre-shipment Inspection, for Customs
Clearance and shipping, for obtaining payment and export finance and for claiming export
benefits like Duty Drawback, etc.
The experienced exporter, because of the complexity of documentation, will find it a good
idea to have the various documents prepared for him by a Shipping and Forwarding Agent
or should take advice from a fellow exporter. The Exporter should also develop a habit of
thoroughly scrutinizing the documents for any possible errors or discrepancies and if any
errors or discrepancies are found, must rectify them immediately before dispatching them
to the Bank of buyer.
The Government of India has made it mandatory for every exporter to use standardized
preshipment export documents w.e.f September 1, 1991. This is popularly known as
Aligned Documentation System (ADS), based on UN Layout Key. The ADS
Methodology involves the preparation of documents on a uniform and standardA4 size of
paper. The documents are aligned to one another in such a way that, the common items of
information are given the same relative slots in each of the documents included in the
System. This makes it possible to prepare one Master document embodying the
information common to all the documents included in the aligned series and to run off all
the aligned documents from the same Master document with the help of suitable marking
reproduction techniques. The Pre-shipment documents on a Standard Layout were first
introduced by Sweden in 1956 followed by Denmark, Finland and Norway. It was later
that most of the European countries, USA, Australia, etc, have adopted this ADS system.
For the purpose of Aligned Documentation System documents, have been, classified as
under
DOCUMENTATION
PRE-SHIPMENT POST-SHIPMENT
DOCUMENTATION DOCUMENTATION
COMMERCIAL REGULATORY
DOCUMENTS DOCUMENTS
PRINCIPAL COMMERCIAL
DOCUMENTS
AUXILIARY COMMERCIAL
DOCUMENTS
CERTIFICATE
PACKING
OF
LIST
INSURANCE
PRINCIPAL
CERTIFICATE
COMMERCIA
SHIPMENT OF
L
ADVICE INSPECTION
DOCUMENTS
BILL OF CERTIFICATE
EXCHANGE OF ORIGIN
BILL OF
LADING
PROFORMA
INVOICE
SHIPPING
INTIMATION
INSTRUCTIO
INSPECTION
N
AUXILIARY
COMMERCI
INSURANCE
AL SHIPPING
DECLARATI
DOCUMENT ORDER
ON
S
NEGOTIATI
ON OF MATE’S
DOCUMENT RECEIPT
S APPLICATION
FOR
CERTIFICATE
OF ORIGIN
However, shipping order and bill of exchange could not be brought within the fold of the
Aligned Documentation System.
FREIGHT SHIPPING
PAYMENT BILL/ BILL OF
CERTIFICATE REGULAT EXPORT
ORY
DOCUMEN
TS
DOCK
CHALLAN/
EXPORT
GRIPP FORM APPLICATIO
N
RECEIPT FOR
PAYMENT OF
VEHICLE
PORT
CHIT
CHARGES
NEED FOR PREPARING EXPORT DOCUMENTS
Some of the forms for preparing documents have been standardized under the Aligned
Documentation System introduced w.e.f. 1.10.1991.
Declaration forms:-There are four main declaration forms which are prescribed. These
are called GR, PP, VP/COD and Softex Forms. All exports to which the requirement of
declaration applies must be declared on appropriate forms as indicated below:
GR Form: Used for exports to all countries made otherwise than by Post.
.
PP Form: Used for exports to all countries by Parcel Post, except when made on ''Value
Payable" or "Cash on Delivery" basis
.
VP/Cod Form: Used for exports to all countries by Parcel Post under arrangements to
realize proceeds through Postal channels on "Value Payable" or Cash on Delivery" basis.
Used for export of Computer Software in non-physical form.
SOFTEX Form: While Export Declaration are to be made in a set of to copies (original
and duplicate) of GR or PP form, VP/COD forms are to be submitted in a single copy.
Export Declaration Forms have utmost importance and are binding on the exporter. It is
therefore necessary, that enough care is taken while declaring exports on these
forms with special reference on the following points:
(i) Name and address of Authorized Dealer through whom proceeds of exports have been
or will be realized should be specified in the relevant column of the form.
(ii) Details of commission and discount due to foreign agent or buyer should be correctly
declared otherwise difficulties may arise at the time of remittance of such commission.
(iii) It should be clearly indicated in the form whether the export is on 'Outright sale basis'
or 'on Consignment basis' and irrelevant clauses must be struck out.
(iv) Under the item 'Analysis of Full Export value', a break up of the full export value of
goods under FOB value, freight and insurance should be furnished in all cases,
irrespective of the terms of the contract.
PROFORMA INVOICE
Thus, this document is prepared at both the pre- shipment and post shipment
stages.
It is the statement of account, which must contain identification marks and
numbers, description of goods and quantity of goods.
Every shipment has identification marks, which identify the cargo with various
documents. These are private marks which are made on the packages. These marks
could be either in the form of symbols (say, a star, triangle. rectangle, etc.) or
numerical. Similarly, every package under a shipment is numbered, usually written
serially. The commercial invoice must specify the serial numbers given in a
particular consignment.
Commercial invoice must describe the goods shipped by the exporter.
The description of goods must correspond exactly with the description given in the
contract or the letter of credit, it means that there should not be any difference
(including spelling) between these descriptions.
(a) It is the basic document useful in preparation of various other shipping documents.
(b) It is used in various export formalities such as quality and pre;:-8hipment inspection,
excise and customs procedure etc.
(e) It is also useful in negotiation of ~documents for collection and claim of incentives.
(d) It is useful for accounting .purposes to both exporters as well as importers.
PACKING LIST
the contents of cases or containers or of a shipment with its weight and description
set forth.
to permit checks of the contents by the customs on arrival at the port of destination
as well as by the recipient.
Mate's receipt is a receipt issued by the Commanding Officer of the ship when the
cargo is loaded on the ship.
The mate's receipt is prima face evidence that goods are loaded in the vessel.
The mate's receipt is first handed over to the Port Trust Authorities.
After making payment of all port dues, the exporter or his agent collects the mate's
receipt from the Port Trust Authorities.
The mate's, receipt is freely transferable.
It must be handed over to the shipping company in order to get the bill of lading.
Bill of lading is prepared on the basis of the mate's receipt.
(a) Clean Mate's Receipt: - The Commanding Officer of the ship issues a clean mate's
receipt; if he is satisfied that the goods are .packed properly and there is no defect in the
packing of the cargo or package. .
(b) Qualified Mate's Receipt: - The Commanding Officer of the ship issues a qualified
mate's receipt, when the goods are not packed properly and the shipping company does
not take any responsibility of damage to the goods during transit.
Bill of lading is issued by the shipping company or its agents stating that goods are
either being shipped or have been shipped.
Essentially a transport document.
It serves many purposes in international commerce.
The bill of lading is a document issued by the shipping company or its agent
acknowledging the receipt of goods on board the vessel, and undertaking to deliver
the goods in the like order and condition as received, to the consignee or his order,
provided the freight and other charges as specified in the bill have been duly paid.
It is also a document of title to the goods and, as such, is freely transferable by
endorsement and delivery.
Bill of lading is a receipt issued by the shipping company on its agents. Law
requires that as a receipt, it must contain leading identification marks, number of
packages or quantity or weight or any other unit of account, and apparent order
and condition of the goods.
Bill of lading is the only evidence to file a claim against the shipping company in
the event of non-delivery, defective delivery or short-delivery of the cargo at the
destination
A bill of lading serves three main purposes:-
i) This document evidences the contract of affreightment (transport) between the shipping
company and the shipper (exporter or importer).
ii) It is a receipt given by the shipping company for cargo received by it.
iii) It is a document of title (This is the most significant function of the bill of lading).
For the bill of lading to be negotiable in fact three requirements must be fulfilled:
(a) Clean Bill of Lading: - A bill of lading acknowledging receipt of the goods apparently
in good order and condition and without any qualification is termed as a clean bill of
lading.
(b) Claused Bill of Lading: - A bill of lading qualified with certain adverse remarks such
as, "goods insufficiently packed in accordance with the Carriage of Goods by Sea Act," is
termed as a claused bill of lading.
(c) Through Bill of Lading: - It covers goods being transhipped enroute but where the
first carrier has the responsibility as the principal carrier for all stages of the journey. For
example, goods may be shipped from Bombay to Dubai and transhipped from Dubai to a
port in Latin America.
(d) Trans-shipment B/L: It has similar characteristic as the Through B/L except that in
this case the first carrier acts only as an agent for effecting Trans-shipment of cargo.
(e) Stale Bill of Lading: - A bill of lading that has been held too long before it is passed
on to a bank for negotiation or to the consignee is called a stale bill of lading.
(f) Freight Paid Bill of Lading: - When freight is paid at the time of shipment or in
advance, the bill of landing is marked, freight paid. Such bill of lading is known as freight
bill of lading.
(g) Freight Collect Bill of lading: - When the freight is not paid and is to be collected
from the consignee on the arrival of the goods, the bill of lading is marked, freight collect
and is known as freight collect bill of lading.
(a) It is a contract between the shipper and the shipping company for the carriage of the
goods to the port of destination. .
(b) It is acknowledgement indicating that the goods mentioned in the document have
been received on board for the purpose of shipment.
(c) A clean bill of lading certifies that the goods received on board the ship are in order
and good condition.
(d)It is useful for claiming incentives offered by the government to exporters.
(e) The exporter can claim damages from the shipping company if the goods are lost or
damaged after the issue of a clean bill of lading.
It is useful to the shipping company for collection of transport charges from the importer
if not collected from the exporter.
CERTIFICATE OF ORIGIN
The certificate of origin states that the goods exported are originally manufactured
in the country whose name is mentioned in the certificate.
The importers in several countries require a certificate of origin without which
clearance to import is refused.
Certificate of origin is required when:
(a) The goods produced in a particular country are subject to preferential tariff rates in the
foreign market at the time importation.
(b) The goods produced in a particular country are banned for import in the foreign
market.
(a) Certificate of origin is required for availing of concessions under Generalized System
of Preferences (GSP) as well as under Commonwealth Preferences (CWP). '
(b) It is to be submitted to the customs for the assessment of duty and clearance of goods
with concessional duty.
(c) It is required when the goods produced in a. particular country are banned for import
in the foreign market.
(d) It helps the buyer in adhering to the import regulations of the country.
(e) Sometimes, in order to ensure that goods bought from some other country have not
been reshipped by a seller, a certificate of origin is required.
SHIPPING BILL
White Shipping Bill for export of Duty Free goods prepared in triplicate in the
Standardized Format.
Green Shipping Bill for export of goods under claim for Duty Draw back prepared
in quadruplicate in the prescribed Form.
Yellow Shipping Bill for export of dutiable goods prepared in triplicate in the
prescribed Form.
Pink Shipping Bill for export of Duty Free goods ex-Bond prepared in
triplicate in the prescribed Form.
Where the goods are to be cleared by the Land Customs, Bill of export is prepared instead
of Shipping Bill. Bill of Exports is also of four types i.e. white, green, yellow and pink for
the purpose stated above. Standardized Formats of the Bill of Export are also available
with the booksellers who deal with Exim publications.
Based on the incentives offered by the government, customs authorities have introduced
three types of shipping bills:
(a) Drawback Shipping Bill: - Drawback shipping bill is useful for claiming the customs
drawback against goods exported.
(b) Dutiable Shipping Bill: - Dutiable shipping bill is required for goods which are
subject to export duty.
(c) Duty-free Shipping Bill: - Duty-free shipping bill is useful for exporting the goods on
which there is no export duty.
In order to facilitate easy recognition and quick processing, following colours have been
provided to different kinds of shipping bills
Types of goods By Sea By Air
Drawback Shipping Green Green
Bill
Dutiable shipping Yellow Pink CONTENTS OF
Bill SHIPPINING
Duty free Shipping White Pink
BILL
Bill
prepared by the importer or his clearing agent in the prescribed form under Bill of
Entry Regulations, 1971, on the strength of which clearance of imported goods can
be made.
For the purpose to pay the necessary import duty, necessary information about the
goods imported must be given to the customs authorities in a prescribed form
called bill of entry form.
Bill of entry is a document, which states that, the goods of the stated values and
description in the specified quantity have entered into the country from abroad.
The bill of entry is drawn in triplicate.
The customs authorities may ask the importer to supply other documents like
invoice, broker's note and insurance policy, etc. in order to verify the correctness
of the information supplied in the bill of entry form.
For the purpose of giving information in the bill of entry form, goods are classified into
three categories namely:-
1. Bill of entry for home consumption (white in colour): where an importer wants to get
his goods cleared in one lot, he has to present the Bill of entry for home consumption.
2. Bill of entry for warehousing (into bond, yellow in colour): Where an importer wants to
shift goods to a warehouse and thereafter gets his goods cleared in small lots, he has to
present 'into bond' bill of entry. Reason may be that he is unable to pay duty leviable on
all goods at one instance or may be because of storage problem.
3. Ex-Bond Bill of Entry (Green in Colour): When an importer wants to remove goods
from the warehouse, he has to present an Ex-bond bill of entry which is green in colour.
The importer has to fill up a separate bill of entry form for different classes of goods. In
India, separate forms are not used but all the entries are made in one form. The free goods
are marked as free in the entry form itself. The importer has to pay the duty before
securing the possession of the goods.
(a) It is a contract between the airlines or his agent to carry goods to the destination.
(b) It is the document of instructions for the airline handling staff.
(c) It acts as a customs declaration form.
(d) Since it contains details about freight it also represents freight bill.
GR FORM
As per the exchange control regulations, an exporter has to realize the proceeds of
the goods he has exported within 180 days of their shipment from India. In order
to ensure this, the RBI has introduced the GR procedure.
Customs will give their running serial number on both the copies after admitting
the customs shipping bill.
Customs authorities will certify the value declared by the exporter on both the
copies of the GR form at the space earmarked and will also record the assessed
value.
They will then return the duplicate copy of the form to the exporter and retain the
original for transmission to the RBI.
Within 21 days from the shipment of goods, exporter must lodge the duplicate
copy of GR together with relative shipping documents with the authorized dealer
named in the GR form for negotiation of export bills.
After the documents have been negotiated, the authorized dealer will report the
transaction to the RBI.
The duplicate copy of GR form together with a copy of invoice will be retained by
the authorized dealer till full export proceeds have been realized and thereafter
submitted to the RBI.
On account of introduction of Electronic Data Interchange (EDI) System at certain
customs offices where shipping bills are processed electronically, the existing
declaration in GR form has been replaced by a declaration in form SDF (Statutory
Declaration Form).
LETTER OF CREDIT
Letter of Credit refers to a written undertaking made by the importer's bank to the
exporter that the payment shall be made to him provided the shipment is sent by him in
strict compliance with the terms and conditions of the export contract. The terms and
conditions of the export contract form part of the letter of credit and are known as the
terms and conditions of the letter of credit. The essential characteristic of the Letter of
Credit is that it relies on the doctrine of strict compliance for release of payment to the
exporter against the draft(s) drawn by him. The banks do not deal in goods; they deal in
documents. As such, the importer has to specify to the bank the documents which it
should examine as evidence to the effect that the exporter has sent the shipment in strict
compliance with the terms and conditions of the export contract.
The operations of Letters of Credit have been regulated and are governed by the articles of
'Uniform .Customs and Practice for Documentary Credits' of International Chamber of
Commerce adopted by more than 165 countries which were latest revised in 1993 for
implementation w.e.f. 1st January 1994.
1. Complete and correct name and address of the beneficiary i.e., the exporter.
2. Complete and correct name and address of the applicant i.e., importer.
3. Type of the Letter of Credit/Documentary Credit.
4. Amount of letter of credit.
5. How the credit shall be available e.g., by payment, deferred payment, acceptance or
negotiation.
6. The name of the drawee of the draft and the tenor of the draft.
7. Description of goods, quantity of the items and the unit price.
8. List of documents required to be submitted by the beneficiary.
9. Port of discharge and the place of final destination.
10. Terms of delivery i.e., FOB, CFR, CIF etc.
11. Status of transhipment i.e., whether allowed or not.
12. Status of partial shipment i.e., whether allowed or not.
13. The last date of sending shipment.
14. Time period for the presentation of documents for negotiation by the beneficiary
after the dispatch of the shipment.
15. The date and place of expiry of the Letter of Credit.
16. Transfer of the Letter of Credit allowed or not.
17. Mode of advice of the Letter of Credit i.e., by mail or tele-transmission.
(a) Applicant or Opener: - The applicant or opener is the buyer or importer of goods
who opens the letter of credit through his bank in favour of exporter.
(b) Beneficiary: - Beneficiary is the exporter of goods in’ whose favour the letter of
credit is opened by the importer through his bank.
(c) Issuing Bank: - Issuing bank is the importer's bank, who issues a letter of credit in
favour of the exporter on the request of the importer.
(d) Advising Bank: - Advising bank is the branch of issuing bank situated in the
exporter's country. Such branch receives the letter of credit and looks after its
onward transmission to the beneficiary.
(e) Confirming Bank: - Confirming bank is the bank situated in the exporter's
country, which guarantees the credit on the request of the issuing bank. Many
times, the advising bank and confirming bank are one and the same.
(f) Negotiating Bank: - Negotiating bank is a bank situated in the exporter's country
through which documents are negotiated by the exporters, i.e., exporter's bank.
There are various kinds of Letter of Credit depending upon the features added to it as
desired by the applicant. The different kinds of the Letter of Credit are as follows:
Legalised/visaed Invoice:- these are the Invoices sworn for their genuineness by the
seller as being correct, before the appropriate Consulate/Chamber of Commerce Embassy
as the case may be, and they bear the stamp and authentication of the Consulate/Chamber
of Commerce Embassy as being in order. A nominal charge is collected by them from the
seller for doing this. These Invoices are required by some of the Latin American
Countries. There is no prescribed form of this Invoice.
Certified invoice:-At times the exporter is called upon to certify on the Invoice, that the
goods are of particular origin or manufactured/packed at a particular place and in
accordance with specific contract. When Certificates as such appear on the Invoice, it is
called as a Certified Invoice.
Weight note:-This document is used to confirm that the Packets/Bales, etc., are of a
particular weight and not more than the stipulated weight as per contract. It may at times
give gross weight and net weight of the whole consignment.
Manufacturer's/supplier's quality/inspection certificate:- This is a Certificate to the effect
that the goods which have been manufactured/supplied are as per the requirement of the
Contract of Sale.
Certificate of chemical analysis:- To ensure that the quality and grade of items like
metallic ores, pigments, etc., is the same as specified in the Sale Contract, importers may
require the exporter to send a Certificate of Chemical Analysis from a recognized analyst.
Car/Lorry ticket: - This Ticket is prepared for admittance of cargo through the Port gate.
This is also known as 'Vehicle Ticket or Gate Pass'. This includes the details of export
cargo, i.e. shipper's name, car/lorry numbers, marks on packages, quantity and
description.
Shut out advice: - It is a statement of packages shut out by a ship and is prepared by the
shed concerned and sent to the exporter showing the particulars of packages, for disposal
arrangement.
Short shipment form:-Short Shipment Form is an application to the Customs Authorities
at Port advising the short shipment of goods and for claiming the return of the Duty and/or
Cess paid on such short shipping goods.
Shipping advice:-A Shipping Advice is used to inform the overseas customer about the
shipment of goods. The Shipping Advice is prepared in Aligned document. The Exporter
only advises );his importer about the Invoice number, Bill of Lading/Airway Bill number
and date, name of the vessel with date, the port ,of export, description of goods and
quantity and the date of sailing of the vessel.
Findings
The report provides the following findings, which is the result of analyzing
the export procedure & documentation and comprehensive study of market.
Good Luck Tube Ltd. Company planning to explore the market, must first look
into its financial capabilities & expand the operations accordingly.
Channels of export procedure are very complex due to which exporters have to
waste a lot of time. These channels should be simplified.
One of the major problems faced by the exporters is the complexity of custom
clearance process. However, exporter can short out of this problem. Many clearing
& forwarding agents are including in this business. Many clearing & forwarding
agents are indulging in this business. The organization should search & select
agents who can do this work efficiently & confidenti
CONCLUSION
1. GOOD LUCK maintains high degree of quality for all the products.
The report provides the following recommendations, which is the result of export
survey.
It is very clear from the analysis done that the common channel with export
market is through agents; therefore the success of the export business heavily
depends on the credibility of the agent and his capability of dealing with export
orders. Therefore, company adopting the caution note should select credible who
have got the reputation in the market.
Any company planning to explore the export market, it must first look into its
financial capabilities and should then expand the operation based on it.
A hide bound approach must be selected in choosing the export orders because
the wrong selection of orders would be suicidal for the organization.
The common mode of payment in export leading as evident from the survey is
the Letter of Credit, which is considered to be the safest mode.
For many prospective entrants, it is recommended that the company must operate
on Letter of Credit accepted but the Indian Bank or a Document on payment.
Document on Acceptance is not advisable for any new entrant due to the lack of
exposure in the export market.
Summarizing the above recommendations:
It can be said that the economic as well as political environment of the country are
having a positive inclination towards the area of exports, boosting the confidence
of exporters.
If the company intends to set up a branch office in the importing country, it should
complete various government formalities for obtaining export import code
number. It should then prepare strategies in order to effectively differentiate its
product and its position in the foreign market.
MANUFACTURING PROCESS
Tubes are manufactured from mild steel strips slitted from Hot Rolled Low Carbon
Steel coils conforming to IS: 10748-1995.
The strip passes through a series of drive forming and fin rolls
takes the required circular shape
Welded continuously by passage of an electric current of high frequency i.e. 4,
50,000 cycles/second across the abutting edges.
The tubes thus formed and welded pass through the sizing sections
Dimensional deviations if any are corrected before the tubes are cut into required
length by automatic cutting machines.
The tubes are then end deburred and pressure tested.
Thereafter protective surface finishing operations such as hot dip
Galvanizing or varnishing is done as per specific requirement.
The tubes are offered as plain, beveled, threaded ends or with flanges.
Flowchart
GENERAL APPLICATIONS
Typical Applications
The diverse application of our pipes and tubes makes them a distinct
product. Our products are widely accepted and used in the development of water supply
housing, structural, agriculture, industry telecom and countless other areas.
Construction Industries
Scaffolding & Structural Purposes.
Automobile Industry
Air & Water Flow System.
Power Projects & Fire Fighting System
Ash Handling System.
Lp Piping.
Other Purposes
Supply Of Exhaust Piping.
Steel Tubes For Idlers & Troughed Belt
Conveyers.
Cold Storage Industry.
LPG Cylinder Supporting Rings.
MAJOR APPLICATIONS
• Oil Industry
o Line Pipes to API specifications
• Furniture Manufacturer
• Construction Industry
• Machinery Manufacturer
• Air pollution Control Equipment
• Railway Coaches
• Electrical Industry
o Transformers
o Fan Down Rods
• Conduits
CONTACTS
We want to hear from you, so we have given you more than one way to contact us.
However, since you are on the web, the easiest way to do so is to E-Mail us, or you
can call us on one of our lines, or if you really want to, you can send us some Snail Mail
Registered Office
Administrative Office
Work
Tel.:0091-5735-222969, 222970
Annexure2
PRODUCT PROFILE
GLST manufactures wide variety of steel products to meet diversified usage &
applications. Our product range can be classified as under:
Wide range of mild steel pipes & tubes for structural purposes, mechanical
& mineral engg. Purpose.
steel tubes for idlers for belt conveyors, water wells, furniture, automobile
purpose, screwed & socketed steel subes & tubular.
Carbon steel tubes screwing and mild & welded steel tubes for various
other purposes.
Precision tubes.
Consumer durable.
C. Galvanized Sheets-Coils
Our integrated unit is engaged in manufacturing standard range of Galvanized Plain &
Corrugated Sheets for wide range of applications.
D. Hollow Sections
Product Range
GLST is manufacturing and exporting wide range of steel tubes and pipes for various
purposes. Apart from the following standard range of products they also manufacture
customized products as per the requirement of the buyers.
Books
WEBSITE
www.goodlucksteel.com
http://www.goodlucksteel.com/tubes-pipes.html
http://www.goodlucksteel.com/tubes-pipes-manufacturing-process.html
http://www.goodlucksteel.com/tubes-pipes-general-applications.html
www.steelguru.com
http://steelguru.com/news/stainless_steel.html
http://steelguru.com/forum/latest_messages.html
www.steel wikipedia.com
http://en.wikipedia.org/wiki/Steel#Historically
http://en.wikipedia.org/wiki/Steel#Uses_of_steel
http://en.wikipedia.org/wiki/Steel#Contemporary_steel