A

SUMMER TRAINING PROJECT

REPORT
ON

STUDY OF EXPORT PROCEDURE AND

DOCUMENTATION AT SUPERHOUSE
Under supervision of:

SAIFI KAZMI
(SENIOR MARKETING EXECUTIVE)
SUPERHOUSE LTD.

SUBMITTED BYSHAHID ALI WARSI

(14-MBAIB-09)

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT STUDIES AND RESEARCH,
ALIGARH MUSLIM UNIVERSITY,
ALIGARH

TABLE OF CONTENT
Page no.
TITLE PAGE
CERTIFICATE
ACKNOWLEDGEMENT
LIST OF ABBREVIATIONS

1
2
5-5
6-7

CHAPTER 1: INTRODUCTION
1.1EXECUTIVE SUMMARY

8-9

CHAPTER 2: COMPANY PROFILE

10-33

2.1 HISTORY OF SHL

2.2 OVERVIEW OF SHL
2.3 VISION AND MISSION OF SHL
2.5 BOARD OF DIRECTORS
2.6 PRODUCTS DETAILS
2.7 BRANDS BY SHL
2.8 MANUFACTURING FACILITY OF SHL
2.9 R&D FACILITY
2.10 AWARDS & RECOGNITIONS

CHAPTER 3: AN OVERVIEW OF INDIAN LEATHER INDUSTRY.

34-36

CHAPTER 4: OBJECTIVES AND LIMITATIONS OF STUDY

37-37

CHAPTER 5: RESEARCH METHODOLOGY & DESIGN

CHAPTER 6: EXPORT TERMINOLOGY
6.1 COMMON TERMS
6.2 BASIC DOCUMENTS.
6.3 ROLE OF BANKS IN EXPORT/IMPORT.
6.4 LICENSING

38-38
39-54

CHAPTER 8: EXPORT PROCEDURE AND DOCUMENTATION

8.1 EXPORT PROCEDURE AND REQUIRED DOCUMENTATION
8.2 TIPS ON EXPORTING FROM INDIA

78-113

CHAPTER 9: CONCLUSION

114-114

CHAPTER 10: SUGGESTIONS & RECOMMENDATIONS

115-116

BIBLIOGRPHY & REFRENCES

117-117

ACKNOWLEDGEMENT
Life of human being is full of interactions. No one is self sufficient by himself whenever
anyone is doing some serious and important work a lot of help from the people concerned is
needed and one less specially obliged towards them. I cannot forget acknowledging them in
few words as without the guidance and coordination of them in my project report would not
have been possible.
In the success of any venture, perseverance and motivation have always played a key role. At
any level it is often quite difficult to understand the wide spectrum of knowledge without
proper guidance and advice.
Starting with the name of Allah, I would like to express my depth of gratitude to Mr Saifi
Kazmi (Senior Marketing executive) who has bestowed me a chance to Complete Summer
Training program at Superhouse Ltd(Upper Division, kanpur). I feel extreme sense of
gratitude for entire staff of Super House for their support & guidance. I am also thankful to
all my teachers and classmates for their blessings and encouragement.
I would also like to express my gratitude and thanks to family who have been a great pillar of
support to me. However, I accept sole responsibility for any possible error that might be there
in this report. I would be extremely grateful to the readers of this report if they bring such
mistakes to my notice so that they can be rectified.

SHAHID ALI
WARSI
MBA (IB)
(14-MBAIB-09)
DBA, FMSR, AMU ALIGARH

EXECUTIVE SUMMARY
As a partial fulfillment of MBA(IB), I was required to undergo training for 2 months. With
respect to that this I have prepared this project report on Export procedure and
documentation undertaken at Superhouse Ltd. Kanpur.
Superhouse is a multinational and multiproduct conglomerate. It produces a large range of
leather products, for different types of products Superhouse have separate facilities for
production and warehousing.
I have selected this topic to know about the Export procedure and custom process. Another
objective is to know Documentation process done by CHA (Clearing House Agent) to clear
the goods from CUSTOM.
My secondary objective is to know the relation between CHA and importer as well as
exporter.

OBJECTIVES AND LIMITATIONS OF STUDY

OBJECTIVES:

The main objective of the research is to know about the export procedure.

To know what are the documents required at what point of time and who require those
documents.

To know the documentation process done by the CHA.

LIMITATIONS:

Not a panacea

Not an exact science

Limitation of time

Erroneous findings

Not exact tool for forecasting

COMPANY PROFILE

HISTORY OF SUPERHOUSE LTD

Superhouse Group is a conglomeration of several companies engaged in manufacturing and
export of finished leather, leather products and textile garments.
The parent company, Aminsons Leather Finishers Pvt., was incorporated as private limited
company on January 14, 1980. It was converted into a public limited company on December
22, 1984 and its name changed to Aminsons Limited on February 21, 1989. In addition, five
group companies Super House Limited, Super Garments Limited, Sharp Leathers Limited,
Super Footwear Limited and Allen Shoes Limited were merged with Aminsons Limited in
1994, 1995 and 1996 as per the orders of the Honble High Court of Judicature, Allahabad.
The name of the company was changed to Superhouse Leathers Limited on March 4, 1996
and finally Superhouse Limited on November 10, 2006 with the approval of the Registrar of
Companies, Kanpur (U.P).
From a single tannery in the 1980s producing finished leather, Superhouse Group has
emerged as one of the largest players in the industry. We started with a commitment to excel,
achieve and deliver the very best. Towards this end, we engineer, optimize and control every
phase of the manufacturing process from raw material to finished products to ensure that end
products are of the highest quality and also the best value for money for our clients.

OVERVIEW OF SUPERHOUSE LTD

Superhouse Group is a multi-unit and multi-product conglomerate with brand leadership in
the field of footwear manufacturing and exports. The Group is well equipped with the most
modern machineries and a specialized workforce and produces all types of quality leather,
leather goods and textile garments that are appreciated all over the world.
A US $125 million group, Superhouse Group has 18 units, with a workforce of over 5000 and
a presence in more than 35 countries. Our commitment to quality is reaffirmed by our ISO
9002 certification. Stringent EN 345-norms make us one of the most respected manufacturers
amongst importers from European countries. Being equipped with requisite infrastructure and
strict adherence to high standards of quality, we are able meet CSA, ANZ &
and SABS standards.
A perfect blend of highly technical, skilled and semi-skilled workforce and competent
managers has helped us in carving out an enviable position for ourselves in the global
market.
Nine state-of-the-art units involved in manufacturing footwear and Shoe accessories.
Four modern tanneries provide us with the finest quality leather for our footwear production.
To meet the exacting demand of clients we also import leather from Brazil, Italy and
Columbia.
The Group has two leather goods manufacturing units for Leather Accessories and Garments
The Group is also engaged in the manufacturing and export of Readymade Garments, Riding
Products and Pet Products
All of our manufacturing units are ably backed by our marketing offices strategically located
in the USA, the UK, the UAE, Spain, Germany and Romania.
In addition, we are approved vendors for global brands such as WalMart, Filanto, Auchan, Andre, Shoe Fayre, Hudson Bay, Heckel Securite, Secura and
many more.

Our existence in the trade for over three decades has given us a wealth of knowledge, which
allows us to offer our customers the maximum in choice, value and quality.
In the last decade the group spread its wings in the field of Education, Real
Estate and Retail.

VISION AND MISSION OF SUPERHOUSE LTD

Superhouse stands firm in its resolve to be a leader- a name to reckon with, in the
international arena. We also stand committed to meet our customers expectations in terms
cost and quality. Again, this commitment continues to be our credo, but we still have a long
way to go, true to the saying.
The last four decades have been dedicated to building strong foundations for Superhouse
brick by brick: from infrastructure to technology, from solid relationships with employees to
market acceptance.
We are now poised to take the next giant leap to establish ourselves as the undisputed leader
in leather products be it footwear or finished leather or leather accessories.
Retaining our leadership through growth as a consequence of customer satisfaction is of
paramount important to us.
To achieve our vision, the framework for quality inputs and , processes is in place, and is
constantly monitored and upgraded.
Superhouse Group aims to constantly improve the quality of its products by fulfilling
its Customers Expectations.

BOARD OF DIRECTORS
Sl. Name of Directors
Designation
1. Mr. Mukhtarul Amin Chairman and Managing
Director
2. Mrs. Shahina Mukhtar Whole time Director
3. Mr. Zafarul Amin

Joint Managing Director

4. Mr. Vinay Sanan

Executive Director

5. Mr. Anil Kumar

Director Finance

Agarwal
6. Mr. Mohd. Shadab

Whole time Director

7. Mr. N. C. Jain

Director

8. Dr. Krishna Kumar

Director

Agarwal
9. Mr. Dilip Kumar

Director

Dheer
10. Mr. Kamal Agarwal

Director

11. Mr. Anil Soni

Director

12. Mr. Syed Javed Ali

Director

Hashmi

PRODUCTS MANUFACTURED BY THE SUPERHOUSE LTD

Finished Leather

Mens Footwear

Ladies Footwear

Children Footwear Safety Footwear

Leather Accessories Readymade Garments Leather Garments

Riding Products

Safety Wear

BRANDS OF SUPERHOUSE LTD - ALLEN COOPER

Until now, Allen Cooper had been enjoying the prestigious patronage of British and European
markets. The brand has now stepped into the Indian market and is catering to the
requirements of corporate and institutional customers, creating a niche image for its fashion
leather products adhering to the high standards that the British have set, Allen Coopers range
of products boasts of an array of international designs through its Italy, UK, China and India
based design studios.

Double Duty

Double Duty is a brand owned by Superhouse Ltd for marketing safety footwear and
garments mainly to Gulf countries and European countries. Double duty is the only brand in
export market under which we produce safety shoes with Direct Injection PU, PU/TPU,
Goodyear welted and Direct vulcanizing process meeting to all international safety norms.

Manufacturing Facilities Of Superhouse LTD.

Finished Leather

Tannery No1

Tannery No2

Tannery No3

Footwear Division - II

Footwear Division - III

Tannery No4
Mens Footwear

Footwear Division I

Ladies Footwear

Ladies Footwear Division

Childrens Footwear

Childrens Footwear
Division
Safety Footwear

Upper Division-I
Leather Accessories

Upper Division II

Accessories Factory 1

Accessories Factory 2

Leather Garments

Safety Footwear Division

Leather Garment No.1

Riding Products

Breeches Division
Readymade Garment

Readymade Garment Division

Riding Boot Division

Riding Product Division

RESEARCH

AND

DEVELOPMENT

SECTION

OF

SUPERHOUSE LTD
Superhouse Group is committed to continuous Research and Development, technological
innovation, up-gradation and improvements to achieve ever-higher standards of quality.
The Research and Development facilities of the Group:

Separate Research and Development Departments for every factory.

Separate Design Centers for Shoes, Bags, and Garments.

Specialized design center in China.

Renowned designers from various countries.

CAD-CAM facilities at shoe factories.

CAD-CAM facilities at fashion garment units.

State-of-the-art laboratories at the tanneries.

R & D and design centers.

R & D and Design Centers of Superhouse LTD

Design Center in China

Cad-Cam Facilities in

CAD-CAM Facilities in

C103, No. 603-613 Xicha

Footwear Division-I

Footwear Division-II

Road, Baiyun District

D-15, Industrial Area, Site-II

Plot No. A 3, Export

Guangzhou, CHINA

Unnao - 209801 UP INDIA

Promotion Industrial Park

Agra 282007

CAD-CAM Facilities in

Laboratory in Tannery No. 1

Readymade Garments

A-1, Site-II, UPSIDC

Division

Industrial Area Unnao

A-14, Sector-65, Phase - III

INDIA

Noida - 201303 UP INDIA

Social Responsibility Delivered By Superhouse LTD

Besides business development which is an ongoing process, Superhouse
is also way ahead in fulfilling its social obligations towards nation
building. The group entered in the field of education in collaboration
with a leading educational society DPS (Delhi Public School).
Also, as a step towards creating a better tomorrow, the group promoted
the first COMMON EFFLUENT TREATMENT PLANT in the state of
Uttar Pradesh in the year 1993 with the assistance of the World Bank
and the Government of Uttar Pradesh. This initiative was a major step
towards maintaining the ecological balance.
The Group promoted a Common Effluent Treatment Plant in the state of
Uttar Pradesh in 1993 for the treatment of effluent generated by leather
industries at the secondary stage with the assistance of the World Bank
and the government of Uttar Pradesh.
All four Group tanneries have primary Effluent Treatment Plants.
An Environmental Management System has been implemented at the
tanneries and shoe units. The units has been certified as ISO
14001:2004.
The Group is implementing the Social Audit in every manufacturing unit
and the leather garments unit of the Group has already received
the SA8000 Certification. Continuous efforts are made to create
awareness about environmental conservation among inhabiants of
towns/cities where our units are located.
The Group is committed to the Health and Safety of its workforce. The
tanneries and shoe units have been awarded with the certificate of
OHSAS 18001:1999 for Occupational Health and Safety Management
System Standard.

The Group has also entered the field of education and has tied up with a
leading Educational Society Delhi Public School (DPS) and has
opened several branches:

DPS Kalyanpur, Kanpur

DPS Indiranagar, Lucknow

DPS Eldeco, Rai Bareily Rd, Lucknow

DPS Jankipuram, Lucknow

DPS, Bareilly

DPS, Saharanpur

Allenhouse public school, Civil Lines, Kanpur

Allenhouse public school, Rooma, Kanpur

Allenhouse Institute of Technology, Rooma, Kanpur

Allenhouse public school, Vasundhra, Ghaziabad.

All national events such as Republic Day and Independence Day and
other days such as May Day and, Vishwa Karma Day are celebrated at
the units.

AWARDS AND RECOGNITIONS

YEAR- 2013-2014
Overall Export Performance 2013-14
Presented by Council for Leather Exports.
YEAR- 2013-2014
Best Export Performance 2013-14 for Non Leather Harness & Saddlery
Presented by Council For Leather Exports.
YEAR- 2013-2014
Best Exporter for Leather Footwear Category above Rs.200 Crores.
YEAR- 2010-2011
Best Overall Export Performance 2010-11 Gold Trophy
Presented by Council For Leather Exports.
YEAR- 2010-2011
Best Export Performance 2010-11 for Non Leather Harness & Saddlery
Presented by Council For Leather Exports.
YEAR- 2010-2011
Excellent Export Performance 2010-11 for Leather Footwear
Silver Trophy Presented by Council for Leather Exports
YEAR- 2011-2012
Best Overall Export Performance 2011-12 Gold Trophy
Presented by Council For Leather Exports.
YEAR- 2011-2012
Best Export Performance 2011-12 for Non Leather Harness & Saddlery
Presented by Council For Leather Exports.
YEAR- 2011-2012
Excellent Export Performance 2011-12 for Leather Footwear
Silver Trophy Presented by Council for Leather Exports
YEAR- 2012-2013
Overall Export Performance 2012-13
Presented by Council for Leather Exports.
YEAR- 2012-2013
Best Export Performance 2012-13 for Non Leather Harness & Saddlery
Presented by Council For Leather Exports.

TEN YEAR HIGHLIGHTS OF SUPERHOUSE LTD.

Consistent Growth over last 10 years

Turnover (Rs. In lacs)

Book Value (Rs. In lacs)

Net Worth (Rs. In lacs)

INDIAN LEATHER INDUSTRY-AN OVERVIEW

The Leather Industry holds a prominent place in the Indian economy. This sector is
known for its consistency in high export earnings and it is among the top ten foreign
exchange earners for the country.

With an annual turnover of over US$ 7.5 billion, the export of leather and leather
products increased manifold over the past decades and touched US$ 4.86 billion in
2011-12, recording a cumulative annual growth rate of about 8.22% (5 years).

The Leather industry is bestowed with an affluence of raw materials as India is

endowed with 21% of world cattle & buffalo and 11% of world goat & sheep
population. Added to this are the strengths of skilled manpower, innovative
technology, increasing industry compliance to international environmental standards,
and the dedicated support of the allied industries.

The leather industry is an employment intensive sector, providing job to about 2.5
million people, mostly from the weaker sections of the society. Women employment is
predominant in leather products sector with about 30% share.

Though India is the second largest producer of footwear and leather garments in the world,
India accounts for a share of close to 3% in the global leather import trade of US$ 137.96
billion (2010)

The major production centers for leather and leather products in India are located in
Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy,
Dindigul and Erode ; West Bengal Kolkata ; Uttar Pradesh Kanpur, Agra, Noida,
Saharanpur; Maharashtra Mumbai ; Punjab Jallandhar ; Karnataka
Bangalore ; Andhra Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon,
Panchkula, Karnal and Faridabad; Delhi; Madhya Pradesh Dewas ; Kerala
Calicut and Ernakulam / Cochin

Strengths of Indian leather sector

Own raw material source 2 billion sq ft of leather produced annually

Some varieties of goat / calf / sheep skins command premium position

Strong and eco-sustainable tanning base

Modernized manufacturing units

Trained / skilled manpower at competitive wage levels

World-class institutional support for Design & Product Development, HRD and R &
D.

Emerging strengths

Design development initiatives by institutions and individuals

Continuous modernization and technology upgradation

Economic size of manufacturing units

Constant human resource development programme to enhance productivity

Increasing use of quality components

Shorter prototype development time

Delivery compliance

Growing domestic market for footwear and leather articles

Highlights of Leather Product Segments:

Tanning Sector Annual production 2 billion Sq.ft. Accounts for 10% of world
leather requirement. Indian colors continuously being selected at the MODEUROPE
Congress

Footwear Sector - Second largest footwear producer after China. Annual Production
2065 million pairs. Huge domestic retail market 1950 million pairs (95%) are sold in
domestic market. Footwear export accounts for 45.05% share in Indias total leather &
leather products export. The Footwear product mix Gents 52%, Ladies 39% and
Children 9%

Leather Garments Sector Second largest producer with annual production capacity
of 16 million pieces. Third largest global exporter. Accounts for 10.43% share of
Indias total leather export

Leather Goods & Accessories Sector including Saddlery & Harness - Fifth largest
global exporter. Annual production capacity - 63 million pieces of leather articles, 52
million pairs of Industrial gloves & 12.50 million pieces of Harness & Saddlery items.
Accounts for 23.44% share of Indias total export

Exports Of Leather Products

The major markets for Indian Leather & Leather Products are Germany with a share of
15.01%, UK 11.15%, Italy 10.85%, USA 9.02%, Hong Kong 7.38%, France 6.25%, Spain
6.08%, Netherlands 4.07%, Belgium 2.32%, China 2.54%, U.A.E.2.24%, Australia 1.39%,
These 12 countries together accounts for nearly 78.30% of Indias total leather& leather
products export. Indias Export of Leather & Leather Products to the European Union
touched US$ 3116.52 mn in 2011-12, accounting for a share of 64.01% in Indias total leather
export trade of US$ 4868.71 mn

RESEARCH METHODOLOGY AND RESEARCH

DESIGN
Primary objective of doing this project is to get the knowledge of the functioning of an export
house. As we are not comparing two different entities on the basis of their functional results,
rather we are learning the export procedure. Hence Descriptive and Causal Research is the
need of the hour.

RESEARCH METHODOLOGY
The study was conducted on the basis of both Secondary Data and some Primary data as well.
The secondary data is mostly collected from the company officials, company records,
websites, magazines etc. Research design is Descriptive and Causal Research both.
Collected data/information through:

Primary data collection

Personal interviewing

Purchase order

E-mail

Commercial invoice

Secondary data collection

Invoice

Company Officials

Packing list

Shipping bills

Internet

Magazines

Company records.

RESEARCH DESIGN

Research design is the based framework, which provides guidelines for the research process.
It is a map or blueprint according to which the research is to be conducted. The research
design specifies the methods for data collection & data analysis determines the source of
data. Most specifically it was a kind of DESCRIPTIVE and CONCLUSIVE RESEARCH
both who takes care of who, when, where, what, how and why aspects of the investigation
further the researcher used the statistical method to serve the purpose of the project, it
permitted the research to drive more accurate generalizations whose reliability could be
measured.

COMMON TERMS USED IN EXPORT PROCESS

SHIPPING TERMS
The International Chamber of Commerce (INCO) includes 13 trade terms that specify the
buyers and sellers responsibilities, risks, transfer of title, costs etc. Few of them are:-

Freight or Carriage Paid (Dcp)

It includes the national and international transport by road, rail and inland waterways.
Supplier is responsible for the carriage of the goods to the agreed destination and pay freight.

Freight carriage And Insurance Paid (Cip)

The term is similar to Freight or Carriage paid to. However in case of CIP you have
additionally to procure transport insurance against the risk of loss or damage to the goods
during the carriage. You contract with the insurer and pay the insurance premium.

Exs/Ex-Ship
Supplier makes the goods available to the buyer in the ship at the named port of destination.
He has to bear the full cost and risk involved in bringing the goods before the customs border
of the foreign country and it is for the buyer to obtain necessary import license at his own risk
and expense.

Exq/Ex-Quay
Supplier has to make the goods available to the buyer at a named quay(dock). The seller pays
discharging costs but the buyer pays for import clearance. Exporter also has to bear the cost
of unloading the goods from the ship.

Delivered At Frontier (Daf)

The term is primarily intended to be used when the goods are to be carried by rail or road.
Suppliers obligations are fulfilled when the goods have arrived at the frontier, but before the
CUSTOMS border of the country.

DELIVERY DUTY PAID (DDP)

It denotes suppliers maximum obligation necessary documents (e.g. transport document or
Warehouse Warrant) will have to be made available to the buyer to enable him to take
delivery of goods. It is suppliers obligation to pay duty(taxes, fees and charges).

CHOICE OF TRANSPORT (AIR vs. OCEAN)

Choice between air and ocean is a critical factor for shipping decision. Few factors that affect
this decision making process are:

COST- Sea shipping is much cheaper than Air freight but require much more time
than air. if cost is the major factor than generally sea shipping would be opted.

TIME SENSITIVITY /DELIVERY REQUIREMENT- If the material is urgently

required and delivery of goods is time sensitive such that if a small item can delay the
whole production process then cost will be given less emphasis.

NATURE OF PRODUCTS AND SIZE OF ORDER- If the item is delicate and

supposed to be damaged if imported via sea, than air shipment would be preferred. If
the size of order is too large, then sea shipment would be preferred because in this
case cost of air shipment is too large and it will affect the profitability quite adversely.

CUSTOMER NEEDS, ORIGIN AND DESTINATION/ LOCATIONS- sometimes

the decision of mode of transport has been taken as per the customer needs and
availability of options.

TERMS OF PAYMENT

ADVANCE PAYMENT- In this payment term first the amount is transferred into the
account of the exporter (supplier) then only the exporter will process/manufacture and
dispatch the material. Most of the time some discount is offered by the seller on full
payment in advance by importer.

LETTER OF CREDIT In this payment term the amount is transferred

automatically after the N number of days of agreement from the bank account of the
importer to the account of exporter and the importer has no right to stop the transfer
until the contract becomes void. This payment term is generally selected in the cases
when there is an insight of delay of the payment by the importer.

CASH AGAINST DOCUMENTS (CAD) - In this payment term the supplier sends
the original documents (invoice, packing list, transport bill etc.) to the buyers bank
and duplicate copy to the buyer. When the buyer pays the agreement amount to the
bank, he gets the original documents and now he can get the shipment cleared from
customs and finally owe it after the issue of bill of entry by the customs department.

30/60/90 DAYS FROM BILL OF LADING/AIR WAY BILL- In this payment term,
the payment is made to the supplier after 30/60/90 days after the issue of bill of
lading/airway bill (issued at the time of loading of consignment on ship/plane) as per
the contract.

30/60/90 DAYS FROM INVOICE- In this payment term, the payment is made after
30/60/90 days to the supplier (exporter) from the date of issue of commercial invoice.

CUSTOMS BROKER / CLEARING AGENTS/CUSTOM

HOUSE AGENT
It is an individual or company licensed by the government to act on behalf of others in
customs (generally import transaction). Its major responsibilities are

It assists in all aspects of clearing imported goods through customs and secures
documentation to release import merchandise from customs.

Advices the importer about custom formalities, responsibilities tariffs and the legal
strategy for acquiring the lowest import duty possible.

Completes required custom documentation and present to the custom authorities.

FREIGHT FORWARDER
International freight forwarders move goods from one country to another. Logistics firms
plan and control the flow of raw material, work in progress, semi-finished or finished
products from point of origin to point of destination. Logistics services also include the
services of import custom brokerage as well. These firms are familiar with the rules and
regulations of both the exporting and importing country.

They can provide pre-shipment advice on cost of insuring; appropriate packing

methods, shipping documentation compliance, inspection services, fees, tariffs and
taxes, thus allowing the exporter to make more accurate costing.

By working with overseas custom brokers these firms ensure that goods comply with
import requirements and that call custom duties, license and taxes are paid.

THE FREIGHT FORWARDER FOR SUPERHOUSE ARE

1. SENATOR INTERNATIONAL.
2. ATLANTIC FREIGHT FORWARDERS

BASIC DOCUMENTS
REQUEST FOR QUOTATION (RFQ): A letter written asking the seller to submit a formal
price quotation for a specified product, quantity.
REQUEST FOR PROPOSAL (RFP): A letter written asking the seller to submit a formal
proposal for a specified product, quantity.
PRO-FORMA INVOICE: This is a preliminary invoice and is prepared prior to shipment
by the exporter. It is used by the importer to see what the purchase will cost, obtain any
necessary import licenses, foreign exchange approval and apply for a letter of credit.
PURCHASE ORDER: It is send to the supplier by the buyer. It shows the price, product,
quantity, payment terms, shipping terms etc.
COMMERCIAL INVOICE (C/I): It is the prime transaction documents. It lists the date,
importer and exporter, products, quantities, price, delivery and trade terms etc. It should
virtually be same as the pro-forma invoice and should contain final and accurate details
relating the order. The import license number and the L/C number should all be stated on the
commercial invoice.
CERTIFICATE OF ORIGIN (c/o): This is issued by exporter, local exporting company,
chamber of commerce or other authorizing agency. This declares the country of origin of the
goods shipped. Certain strategic commodities and goods facing anti-dumping charges require
a certificate of origin.
PACKING DECLARATION: The packing list indicates the number of packs involved the
contents of each pack and the individual weights, dimensions etc. This list helps the buyer
and customs to check the correct number of units and an easy inspection can be made.

CERTIFICATE OF INSURANCE: It is used to assure the consignee that insurance will

cover the loss of or damage to the cargo during tarnishes can be obtained from your freight
forwarder.
BILL OF ENTRY: Goods may not be imported into a country unless a bill of entry is
submitted to and accepted by the customs authorities.

INSTRUCTION DOCUMENTS
FORWARDERS INSTRUCTION: Most freight forwarders have a printed forwarders
instruction form, but the required information may also be printed on the exporters company
letterhead. Information required includes instructions for booking of cargo, information for
completing transport documents, description of goods as per the letter of credit etc.
SHIPPING INSTRUCTION: Where a shipping company has a computerized bill of lading
system, it provides pre-printed shipping instruction forms which must be completed by
the exporter/ freight forwarder. The bill of lading is drawn up from the information provided
on this form.
BANK INSTRUCTION: When the exporter is selling on the basis of a letter of credit, the
instructions stipulated in the letter of credit must be followed.

TRANSPORT DOCUMENTS

BILL OF LADING (B/L):

It is a contact of carriage by sea and defines in detail, the terms of the contract between the
shipper and the shipping line for the carriage of goods from one specified port to another. It is
documents of title (i.e. a certificate of ownership) to the goods. The consignee must produce
it at the port of final destination in order to claim the goods.
NEGOTIABLE BILL OF LADING: The shipper marks the bill of lading, to order so that
the B/L may be negotiated by a third party e.g. the bank through blank endorsement (by

signing on the reverse side of the B/L). The third party is then able to take ownership of the
goods.
NON-NEGOTIABLE BILL OF LADING: The copies of B/L are non-negotiable. Only
original copies are negotiable.
AIR WAY BILL: It is a contract of carriage by air. It acts as a freight invoice, certificate of
insurance, guide to airline staff for the handling, dispatch and delivery of the consignment.
The document consists of 3 original and 9 copies all in a non negotiable form. With the help
of Electronic Data Change (EDI), now the exporters premises, now consignee can prepare
customs clearance documentation in advance of the goods arrival.
ROAD WAY BILL: Road haulers usually design their own waybills, which serve as
evidence of a contract of carriage and as receipts for consignment of goods.

INSPECTION DOCUMENTS

INSPECTION CERTIFICATE: It offers independent proof of quality, quantity or

adherence to certain specifications. It is required by some countries to control fraudulent
practices.
QUALITY CERTIFICATE: It certifies that products contained in the shipment meet the
standards of the importing country.

ROLE OF BANKS IN EXPORT

The Major Banks that deal in Export business in Kanpur are:

State Bank of India

Canara Bank

Punjab National Bank

Bank of Baroda

Bank of India

Allahabad Bank

The common facilities that are available to the exporters for financing their export business
are as under;

PRESHIPMENT CREDIT
Pre-shipment credit is also known as packing credit (P.C). This credit facility is sanctioned
for Procuring/ manufacturing/ processing/ packing/ warehousing/ shipping the goods meant
for Export.
Post shipment advance is granted to an exporter by way of negotiation/ purchase/ discount of
export bills will be first utilized for adjustment for packing credit granted, if any and the
balance amount only will be available to the exporters.

POSTSHIPMENT ADVANCES
Credit facilities, which are sanctioned to Exporters after completion of shipment is termed as
Post Shipment Facilities.

BANK GUARANTEE
A contract of guarantee is a contract to perform the promise, or discharge the liability of the
third person in case of his default the guarantee has three Principal Parties as under;

Principal Debtor: The person who has to perform or discharge the liability and for
whose default the guarantee is given.

Principal Creditor: The person to whom the guarantee is given for due fulfillment of
contract by principal debtor. Principal creditor is also sometimes referred to as
beneficiary.

Guarantee or surety: The person who gives the guarantee.

Banks provides guarantee facilities to its customers who may require these facilities

for various purposes. The guarantees may broadly be divided in two categories as under:

Financial Guarantee: Guarantees to discharge financial obligations to the customer.

Performance Guarantee: Guarantees for due performance of a contract by

customers.

LETTER OF CREDIT (L/C)

Letter of credit is a method of settlement of payment of a trade transaction. It contains a
written undertaking given by the bank on behalf of the purchaser to the seller to make
payment of a stated amount on the terms and conditions incorporated therein.
Letter of credit thus offers both parties to a trade transaction a degree of security. The seller
can look forward for payment instead of relying on the ability and willingness of the buyer to
pay. He is further assured of payment being received on due date enabling him to have proper
financial planning. The only condition being attached is submission of stipulated documents
and compliance with the term and conditions of credit. The buyer on the other hand will be
obliged to pay only after receipt of documents of title of goods to his satisfaction.

PARTIES TO LETTER OF CREDIT

Applicant/opener: It is the person on whose behalf and under whose

instructions the letter of credit is issued. It is generally the buyer of the goods who
gets the letter of credit issued by his banker in favor of the seller.

Opening Bank/ Issuing Bank: The bank issuing the letter of credit.

Beneficiary: The seller of goods in whose favor the Letter of Credit is issued.

Advising Bank: Notification regarding issuing of letter of credit may be

directly sent to the beneficiary by the opening bank. It is however, customary to
advise the letter of credit through some other bank operating at that place/ country
of seller. The bank that advises the Letter of Credit to the beneficiary is known
as Advising Bank.

Conforming Bank; It may sometimes happen especially in Import trade that

the issuing bank is not widely known in the exporters country and Exporter is
not prepared to rely on the L/C opened by the bank. In such cases the opening
bank may request other bank usually in the country of Exporter to add its
confirmation, which amounts to an additional undertaking being given by that
bank to the beneficiary bank. The confirming bank has the same liabilities
towards the beneficiary as that of opening bank.

Negotiation Bank: The bank that negotiates the documents drawn under
letter of credit and make payments to beneficiary. It is known as Negotiation
Bank

A single bank may undertake the functions of advising bank, confirming and negotiating bank
only.

NEGOTIATION OVER THE PRICING

This matter is also the concern of the merchandiser. He/she is the person who is responsible
for the negotiation of the prices. The pricing is negotiated keeping in mind a few important
factors.
After calculating the cost of the product during sample development the merchandiser makes
an offer to the buyer at a certain price that might be markup price or any of the following:
The first factor that is considered is the potential of the buyer. SUPERHOUSE does not deal
with small quality buyers or the retailers; they mainly deal with wholesalers and distributors
and also with retailers who have at least 150 retail outlets. If the buyer is a very potential
buyer then sometimes to agree on its terms the seller resorts to a NO PROFIT NO LOSS
pricing.
Sometimes the pricing is done on the basis of the competitors pricing. That is the prices are
kept in tandem with the competitors prices. This policy is called COMPETITIVE
PRICING.

LICENSING
Registration with regional licensing (Obtaining IEC Code Number)
The Customs Authorities does not allow to Import or Export Goods into or from India
unless you hold a valid IEC number. For obtaining IEC number it is necessary to open a
Bank Account in the name of your Company / Firm with any commercial authorized to
deal in foreign exchange. The duly signed application form should be supported by the
following few documents.

Bank receipt ( in duplicates)/ Demand Draft for payment of the fee of Rs. 1,000/-.

Certificates from the banker of the applicant firm.

2 copies of passport size photographs of the applicant duly attested by the banker
to the applicants.

A copy of permanent account number issued by Income Tax Authorities.

EPCG LICENSE
Machinery can be imported duty-free with the help of this license.

ADVANCE LICENSE
If the products used for Export contains the products which come under Advance license then
the duty can be saved. Annexure Sheets describing amount of product used, in which product
etc. is to be presented.

EXPORT
INTRODUCTION
The exporter is an individual or company engaged in the business of manufacturing, selling,
or brokering raw materials, components parts, finished goods or services to the importer/
buyer for manufacture, assembly, resale, or direct consumption. Few products exported to
GERMANY, FRANCE etc. from SUPER HOUSE are:

Gents Leather half boot (Euromax BLK SIP)

Leather shoe uppers lasted (MODEL NO.5115-RED)

DOCUMENTATION FOR EXPORT

These are the documents required by the export authority of a country. The quantity and
formality of this type of documentation is greatly influenced by the requirements of the
country of export and the nature of the goods being exported.

TRANSACTION DOCUMENTS
Issues a proposal or quotation in response to an RFP/RFQ from importer .
Issues a Pro-forma invoice at the request of importer.

 Issues a Commercial invoice.

EXPORT DOCUMENTS
Secures an export license / permit from the export authority (as required).
Issues an export declaration.
Issues or secures Inspection certificate.

TRANSPORT AND INSURANCE DOCUMENTS

Prepares a packing list (for use by shipping company, export/import authority).
The exporter assists in preparation and insurance of Bill of lading, Airway bill.
CUSTOM DOCUMENTS-(pre documents for custom clearance)
Certificate of origin this is issued from a chamber of commerce or government
authority of the country whose business house is indulged in the process of export.

Insurance policy/ Certificate- when export is done on the basis of C&F (Cost and
freight) in which the exporter is entitled to pay the cost to its local port of destination.

Inspection Certificate
CUSTOM DOCUMENTS-( pre documents for custom clearance)
5 copies of invoice.
3 copies of packing list.
Central excise form ARE-1.
Shipping instruction

 Annexure sheets-these documents are meant in the case of when exported items
include which already come under advance licensing then we plot the annexures
sheets to save the duty. These documents are included at the last of export file.

EXPORT DOCUMENTS REQUIRED FOR DIFFERENT MODES OF

SHIPMENT
BY AIR
Cargo sent by air can be routed through the international airports of Kolkata, Chennai ,
Mumbai ,and New Delhi. The procedures for custom clearances and documents processing
vary at these ports.

The documents required for export by air is the followings:

Shipping bill

Invoice

GR form

Shipper declaration form (SDF)

Packing list

Letter of credit or export contract

Purchase order

Pre-shipment inspection certificate(if any)

Central excise form

Duty exemption entitlement certificate(if any)

Proof of market or tariff value

Insurance cover note (if any).

BY LAND AND RIVER

Application for export by lorry

Drawback bill

Packing list

Commercial invoice

GRform

Export contracy

Letter of credit

Purchase invoice

Treasury challan

Pre-shipment inspection certificate

Invoice showing clearance or excisable goods

Export license( if any)

Exim bank certificate on forfeiting discount (if any).

BY SEA

Shipping bill

Commercial invoice

GRform

Shippers declaration form (SDF)

Letter of credit

Export contract

Buyers letter

Packing list

The custom authorities may require the followings additional documents: Pre-shipment inspection certificate
Centrl exise form ARE
Invoice relating to exise clearance
Export license
Contract registration certificate
Insurance cover note
Duty exemption entitlement certificate

BY PARCEL POST
PP form
Export license
Form-d
ARE-1 form
Insurance note
Duty exemption entitlement certificate
Commercial invoice
Packing list
Self addressed envelope duly affixed with sufficient postage stamps for registration
Forwarding agent sends the following documents to the exporter:
One copy of commercial invoice, attested by customs
Export promotion copy of the shipping bill
Drawback copy of the shipping bill
Bill of lading documents
The original letters of credit or contract orders
Copies of the customs invoice.
The duplicate of the GR form
THE BANK PAYMENTS

For negotiation or collection, the exporter has to present the following

documents:
Sufficient copies of the commercial invoice;
Two copies of the certificate of origin;
Sufficient copies of customs invoice;
Duplicate copies of GR form;
Sufficient copies of packing list;
A full set of bill of lading documents;
The original letter of credit or export contract;
2 copies of a bank certificate in the prescribed form;
The insurance policy or certificate;
The bill of exchange;
Quality control and pre-shipment inspection certificate (if the foreign importer
requires these)

The Duty Drawback Scheme

The duty drawback scheme is one under which export products gets relief of incidence of
customs and excise duties paid on raw, materials and components used at various stages of
production . it is defined as rebate of duty changeable on any imported or excisable
material used in the manufacture of goods exported from India.

EXPORT PROCEDURE
When the exporter is ready with the goods, invites the representative of EIA for preshipment inspection and obtain the certificate of inspection.

After this the following documents are generated and send to CHA:

Commercial invoice

Packing list

ARE-1 from excise department

Insurance policy

Copy of purchase order

Based on these documents our CHA completes the octroic formalities, obtain the port permit
prepare shipping bill(a customs document).
Custom department check the export cargo on the basis of information provided on the
shipping bill. If satisfy then cargo is allowed to loaded on the board of ship.
The shipping line gives mate receipt to CHA after the payment of ocean freight and port due,
obtains the B/L from shipping line. The B/L is a proof of dispatch of cargo and also a
negotiable document.
After that CHA sends various documents back to the exporter which are as follows:

Customs attested invoice

Copy of shipping bill

Full set of non board bill of lading

Copy of purchase order or L/C

Copies of ARE-1 form

SDF form.

After that, bank scrutinizes these documents and if found correct make payment to exporter
against the documentations.

TIPS ON EXPORTING FROM INDIA

One can always try to send a fax or telex with an offer, or mail a sample to an importer and
hope to sell something this way. If the prices is low enough there is always a chance of
selling something. Usually, however, this will not work. A producer who is seriously trying to
build up exports should try a different apprach.
1) Start with desk research on Europe as a whole. Contact the Indo-German Chamber of
Commerce. Study the export regulations concerning your country, especially the quota
and tariff situation. Find out if any export promotion programmes are being organized in
your field. Marketing a product in 15 EU countries means targeting various cultures.
2) Pay a visit to the country during the year you are planning to export. Plan a visit during
the period when a trade fair is being organized.
3) Select a number of appropriate prospective buyers for your products, and try to make an
appointment, before you leave.
4) Suppliers should have their offers accompanied by samples and a description of the
equipment the producers use. Also note how quality is controlled in the factory will
interest the importer.
5) Quotations normally made on CFR(Cost & Freight), CIF(Cost Insurable Freight) etc.
these depends on the habits of the importer. Prices should be mentioned in US$ or EURO.
6) Large importers buying high volumes usually expect to obtain a lower price than the
standard price. Suppliers must take into consideration when setting their prices.

7) The importers need the information above to be able to form an image of the suppliers
factory and make an estimate of the quality that can be expected. Before placing a serious
order, the importer might come to have a look at the factory.
8) Sometimes, the importers may require that the models are made from their specifications
and vice-versa.
9) Importers normally start by placing trial orders to judge the quality. If the first try proves
to be successful, the importer might place a large and may follow if satisfactory.
Once the rapport has been formed and the importer has faith in you, it means a better price
for the producer, and more orders.
Naturally all the above will depend on the trade relations between India and the EU. Further
it has been observed that products exported from India are mainly labor intensive and thats
where India has an upper hand, in International market.

CONCLUSION
This report includes study of EXPORT PROCEDURE AND DOCUMENTATION. During
the study I learnt about working of export section of SUPERHOUSE.
SUPERHOUSE optimizes and controls every phase of manufacturing process from raw
material to finished products to ensure that the end products are of highest quality .Their
existence in the trade for over three decades has given them a wealth of knowledge which
allows them to offer customers the maximum in choice, value and quality.
Documentation lies at the heart of all international trade transaction. As the trade is between
two countries so much care has to be taken regarding the laws, and procedures etc. Thus,
having proper knowledge of documentation and procedure helps the organizations to be on
the safer side.
In the course of study, it was found that there is great opportunity in the business of export.
Accordingly to CLE, KANPUR is the largest city of leather exporter in the central region.
Thus, it is profitable to enter into the business of export.
Quality is another aspect which is of utmost importance as most of the international buyers
are mainly concerned about quality. During my training observed that the company invests a
lot to maintain. It can be concluded that there are very few things which can be suggested to a
company like Superhouse Ltd., as their existing system is very efficient and the company is
showing a continuous growth in its market share.

SUGGESTIONS & RECOMMENDATIONS

-

As it has already been discussed that trade fairs form a very important part of the
International Marketing, especially to identify the potential buyers.

Productivity could be increased a bit if workers reduce the wastage of time in talking
and gossiping.

There is a scope of business for superhouse safety footwear in Indian market too. As
the Indian naval services, Indian military services, police force etc. must have
required safety footwear.

Store management was should be improvised, as store plays a vital role in the smooth
functioning of the firm. All the material should be placed systematically in the store.

Maintaining records on a soft copy could save time, paper and cost and these records
should be easily accessible by the authorized persons.

The computer systems are uploaded with the old formats of windows, because of
which many of the documents wont be read/detected by it.

.
-

Better procurement of material - Superhouse should try to improve upon the system
and should try more and new vendors so as to ensure proper quality at proper time.

Skilled Personnel - For generating better results and efficient and effective system
Superhouse must appoint skilled persons in every aspect.

Superhouse has been importing large variety of raw materials from abroad which they
should try to develop within India.

FOR CERTAIN MATERIALS THE FOLLOWING COMPANIES IN

INDIA CAN BE CONTACTED
1. PLASTOFAB for plastic footwear components (A-1, Naraina community centre,
C-Block Naraina vihar, NEW DELHI 110028)
WWW.PLASTOFAB.COM
2. GARG TRDING CO. for metal fittings
E-MAIL: skyeva2008a@indiatimes.com
3. BHAWANA INTERNATIONAL for lining and interlining
E-MAIL: rajeshgupta1960@yahoo.co.in, bhaintr06@yahoo.co.in
4. WIPRO INTERNATIONAL for metal fittings
E-MAIL: wiprointernational@hotmail.com, kamrankhanwipro@zapak.com
5. MOHIT ENTERPRIZES for insoles, rubber labels and eyelets etc.
6. PREET BUTTON AND FASTNERS INDUSTRY for metal fittings
7. SPM SALES PVT LTD. For metal fittings
8. TECHNOINDIA for metal fittings

BIBLIOGRAPHY & REFRENCES

WEBSITES
WWW.SUPERHOUSEGROUP.COM/contact-us
WWW.CLE.ORG.COM
http://economictimes.indiatimes.com/superhouseltd/infocompanymanagement/companyid-44.cms
www.allenhouse.ac.in
www.leatheindia.org/
www.satra.co.uk/
www.alibaba.com
www.cbec.gov.in/sms/sms_q1.htm

MAGAZINES
1. LEATHER AGE
2. THE FOOTWEAR NEWS OF INDIA