Chapter 1

Introduction

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 1.1 Project:

In view of the rapidly and constantly changing business environment globally and fast
evolving trade and commerce scenario in India vis--vis global market, there is
increasing requirement of reliable and dependable integrated logistics solutions
providers who can provide comprehensive, professional and dependable logistics
support to the industry, keeping the same in mind and with the vision to provide
quality and professional comprehensive logistics solutions to the international &
domestic trade.

The procedure of both the exports and imports are time consuming and complicated.
In this regard there are several logistic companies and custom house agents providing
their services on the behalf of the exporters and importers to facilitate the trade
between them. These custom house agents and logistics companies take over the
responsibility of sending the goods from the exporters premises to the importer
premises, which also includes the most important aspect of custom clearance.

New India Logistic is a leading name for custom clearance. It has its collaboration
with Mangali Petrochem ltd. Over the years they have operated smoothly with their
wide spectrum of personalized services In this project A total of 100 customers were
selected from the Delhi for the study to analyze the customer satisfaction with
reference to New India Logistics.After the analysis it was found that the services of
New India Logistics are excellent & good. In fact the customers are loyal to the
company for more than 3 years, They are also satisfied by the price the company
charges for providing its services. The employees in New India Logistics are
hardworking and dedicated. The company has increasing profit and net worth .Thus,
company performed very nicely from its birth.

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 1.2 Industry:

Indian shipping scenario:

India has 12 major ports and 185 minor/intermediate ports. Over 90 percent by volume and
70 percent by value of Indias overseas trade, aggregate of exports and imports, is carried out
through maritime transport along its 7617 km long coast line. India has the largest merchant
shipping fleet among the developing countries and its merchant shipping fleet ranks 18 th in
the world, in terms of fleet size. Another silver lining is the average age of the Indias
merchant shipping fleet is only 12.7 years as compared to the international average of 17
years .but, Indias share, sadly, constitutes only 1.45% of the worlds cargo carrying capacity.

As on April 1, 2005, India has a total of 686 ships comprising 8.01 Million Gross Tonnage
(GT) and 13.28 Million Dead Weight Tonnage (DWT). The shipping corporation of India
(SCI), the countrys largest carrier, owns and manages 82 ships with 2.54 million GT and
accounts for 40 percent of national tonnage. India is also among the few countries that offer
fair and free competition to all shipping companies for obtaining cargo. There is no cargo
reservation policy in India.

Indian shipping has remained a deferred subject till independence. Only after independence,
the development of shipping has attracted the state policy. The subject of shipping, in the
beginning, has been dealt with by the ministry of commerce, till 1949 and subsequently, in
1951, it has been shifted to the ministry of transport and shipping. In 1947, the government of
India has announced the national policy on shipping, aiming at the total development of the
industry. In order to accelerate the developmental efforts, the necessity for a centralized
administrative organization has been felt. Accordingly in September necessity for a
centralized administrative organization has been felt. Accordingly in September 1949, the
directorate general of shipping with its headquarters at Bombay has been established with the
objectives of promotion and development of Indian shipping industry.

Shipping Company:

3
Shipping Company is companies which invest his capital in purchase of ships and provide
transport service through the sea to its customers is known as shipping company.

Basically the shipping companies provide services in two ways

1. TRAMP SHIPS

2. LINER SHIPS

Tramp Ships:-

Tramp ship or general trader, does not operate on a fixed sailing schedule, but merely trades
in all parts of the world in search of cargo, primarily bulk shipments. It is a chartered ship
prepared to carry anything anywhere. Its cargoes include coal, grain, timber, sugar, ores,
fertilizers, etc like which are carried in complete shiploads.

Tramp tankers are specialized vessels. They may be under charter or be operated by an
industrial company, that is oil company, motor manufacturer, etc to suit their own
individual/market needs.

Liner Ships:-

Liner ship operates on a fixed route between two ports or two series of ports. They operate on
a regular scheduled service. They sail on scheduled dates/times whether they are full or not.
The cost of using the service (freight) can be quoted from a fixed tariff.

Container ships in deep sea trades and roe ship in the short sea trades feature prominently in
this field.

What is meant by containerization?

Containerization is the practice of carrying goods in containers of uniform shape and size for
shipping. Almost anything can be stored in a container, but they are particularly useful for the
transport of manufactured goods. It is a method of distribution of goods using containers. The
use of containers has, indeed, facilitated carriage of goods using containers. The use of
containers has, indeed, facilitated carriage of goods. Exporters need to go to the seaport for

4
 export of goods. Instead the goods sent to inland container depot/ container freight station for
sending to the destination.

Since 1950s, containers have revolutionized sea-borne trade, and now carry around 90% of
all manufactured goods by sea. The transporters in developed countries have started making
use of containerization, early now; developing countries have started making use of
containerization, early. Now, developing countries too are taking a greater advantage in using
containers for transportation of goods. Different countries are giving logistic support, giving
the necessary boost to improve the required infrastructure to containerization, for
encouraging export industry.

Containerization is to contribute about 22.66% to total cargo by 2010-11.

The robust growth of Indias manufacturing industry has pushed up Indias containerization.
Indias containerization has over 70% of total exported cargo, and around 40% imported
cargo. The Government of India has pursued a policy of developing a number of Inland
Container Depots and Container Freight Stations to facilitate modal interchange and
distribution of cargo and most importantly to avoid awkward customs procedures from the
waterfront. Containerization at major ports of India contributed about 11% of total cargo
handled at those ports in 2000-01; it increased to 16% in 2005-06 and is estimated to further
increase to 22.7% by 2010-11.

Types of containers-:

There are different types of containers. The popular types are:

1. General purpose containers-:

There are the most common type of containers and are the ones with which most people are
familiar. Each general-purpose container is fully closed and has width doors at one end for
access. Both liquid and solid substances can be loaded in these containers. Based on length of
the container, the container is generally known as a 20 ft container or 40 ft container, in
practice. Hazardous or dangerous cargo can not be loaded into general-purpose containers.

2. Reefer containers (refrigerated) -:

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 These play an important role in South - Africas exports of perishable products, and are
designed to carry cargoes at temperatures reading down to deep frozen. For refrigeration, they
are fitted with electrical equipment for supply of necessary electricity.

3. Dry bulk containers-:

These are built especially for the carriage of dry powders and granular substances in bulk.

4. Open top/open sided containers-:

These are built for heavy and awkward pieces of cargo. These containers are ideal where
height of the cargo is in excess of height of the standard general purpose containers.

5. Liquid cargo containers-:

These are ideal for bulk liquids, such as wine, fruit concentrates, vegetable oils, detergents
and various other non-hazardous chemicals. Bulk liquid bags, designed to carry specific
commodities, can fit into these containers.

6. Hanger containers-:

They are used for the shipment of garments on hangers.

Custom House Agent:

Custom House Agent means a person licensed, temporarily or otherwise, under the
regulations made under sub-section (2) of section 146 of the Customs Act, 1962.

A person is permitted to operate as a customs house agent, temporarily under regulation 8(1)
and permanently under regulation 10, of the Customs House Agents Licensing Regulations,
1984.

The services rendered by the custom house agent are not merely limited to the clearing of the
import and export consignment. The CHA also renders the service of loading/unloading of
import or export goods from/at the premises of the exporter/importer, the packing,
weighment, measurement of the export goods, the transportation of the export goods to the
customs station or the import goods from the custom station to the importers premises,

6
carrying out of various statutory and other formalities such as payment of expenses on
account of de-stuffing/ pelletisation terminal handling, fumigation, drawback/ DEEC
processing, survey /amendment fees, dock fees, repairing and examination charges, landing
and container charges, statutory labour etc this expenses paid on behalf of importer and
exporter. The CHA is ordinarily reimbursed by the importer/ exporter for whom the above
services are rendered.

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 1,2 COMPANY PROFILE:-

NEW INDIA LOGISTICS

CORPORATE OVERVIEW

NEW INDIA LOGISTICS is a leading name for custom clearance which has its
collaboration with Mangali Petrochem ltd. Mangali Petrochem Ltd is an eminent company
having experience and history of more than 3 decades in Manufacturing, Outsourcing and
Distribution of various Petroleum, Petrochemical and Chemical products where as new India
logistics is a leading logistics company with a firm commitment to provide Global Transport
Services. The company is managed by personnel with extensive experience in trade and
known for their personalized service to customers, their minds being set on quality of service.

New India Logistics obtained its own Custom House Agent License at New Delhi (2005) and
operating at all major Air/Sea ports, LCS of India with strong alliances worldwide..

Services offered

We provide enormous professional services ranging from Custom Clearing, International

Freight Forwarding, Foreign Trade Legal & Regulatory Consulting, Transportation,
Warehousing, Indenting etc. for Import and Export consignments by Air or Sea at all major Air
and Seaports worldwide.

AIR FREIGHT

Our trained professionals look after the job at hand from start to end. Minimum time
consumption via Air routes and door step safe delivery of goods and offer specialized services
such as emergency shipments. Our flexibility and personalized services makes our Air
transport quick, effective and customer friendly.

SEA FREIGHT

We offer Flexible, Cost Effective, Customer Oriented Sea Freight solution to our customers .
We take full responsibility of loading, examination, unloading and delivery of the
consignments. We have best solution for door to door cargo service. The client can feel free to

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 get their Full Container Load (FCL) and Less-than-Container Load (LCL) shipment delivered
on all major ports worldwide.

CUSTOM BROKERAGE

New India Logistics holds own Customs House Broker License and provide custom clearance
service for Air or Sea consignments at all major Air and Sea ports. We ensure FAST, EASY
and SMOOTH Customs Clearance for both Exports &Imports. We keep on updating
knowledge of customs regulation and procedures which enable us to deliver the logical
possible advantage to the clients as part of custom clearance services with reference to the
custom notifications, exemptions and schemes like EPCG, SEZ etc.

WAREHOUSING

It is our responsibility to understand your business and logistics needs in full and complete.
We have complete warehousing / transportation /distribution facilities at strategic locations in
& around all major ports. We are fully equipped with modern facilities to cater to specific
handling requirements of clients.

Warehouse identification

Record management and storage

Warehouse management

Inventory and Distribution Management

Just in Time (JIT) Deliveries

Cold Chain

Miscellaneous

Insurance Management for EXIM shipment

Ancillary services ( Survey, Pre/Post Inspection of Shipment Fumigation of

containers)

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 Legal & Advisory services ( Customs, DGFT, Various Govt. / Pvt. Organizations
pertaining to Import Export business )

Education & Training in Foreign Trade Regulations & Supply Chain Management.

DGFT

We are dealing in the following services mainly and will provide services for all other
permissions, registration etc. for importer/exporter according to the requirement of client.

Import Export Code Number (IEC)

EPCG Licence (for International / Domestic Purchase)

Advance Licence

Restricted Item Licence

Focus Product Scheme / VKGUY

Focus Market Scheme

Drawback Clearance

Release of BG/LUT Bond

Redemption against Export Obligation (E.O.)

Project Import and Registration

RCMC - Registration with Export Promotion Council

Consultancy in Foreign Trade Regulations

CLIENTS

We are serving various central /state govt. departments & reputed private concerns in their
Foreign Trade ventures.

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 Specialty

Govt. tendering process management of govt. cargo (special package).

Packaging & moving.

Foreign trade EXIM consultancy for exp incentives & import licensing.

Consolidation.

Heavy lift transportation.

Trade fair & exhibitions.

IT INFRASTRUCTURE

1. Well Integrated Computer & Networking System with an investment of

US $ 50000 Approx.
2. Electronic Distribution of Airway Bills
3. Online Cargo Tracking
4. Space Reservation Through Cyberspace

SPECIAL SERVICES PACKAGES FOR PSUs

We expertise in Custom Clearing and Air Import Consolidation of Govt. Undertakings ,

research institutions , hospitals and clinical labs etc. Our Special Services package includes
1. Deployment of Special Coordinators dedicated to Interactions & Liason with
PSUs
2. Regular meetings with a view to review ,update and respond to service requirement
3. State of the art communication systems
4. Dedicated monitoring of Pub. Sector Requirements on national basis
5. Regular feedback on Industry and Trade Developments
6. Progress chasing of Purchase Orders with Overseas Suppliers
7. Close Liasion and follow up with overseas suppliers
8. High quality ground services on arrival
9. A wide network in India covering all airports
10. Regular movement of consolidations on pre booked flights
11. Dedicated round the clock communication response system in India & abroad
12. Regular movement of consolidations on pre booked flights

OUR SPIRIT
1. Make customer successful
2. Respect For Individual

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3. Delievery on Commitment
4. Team , Innovate & Excel
5. Social Responsibility

MANAGEMENT

1. The company has been promoted with th combination of talent to provide our customers the
benefit of professional expertise and international
Standard of service
2. Our staff constitutes young and talented people in the trade , with dedication
to provide value added services to the customer , which differentiated
New India Logistics from other peers in the profession
3. Mr. Sanjay Singhal , a Commerce and Law Graduate from Delhi University
Professionally qualified Company Secreatary from ICSI and Post Graduate in International
Business from AIMA, has been leading the company towards its ultimate goals . He duly
qualified the Rule 9 examination Under CHA Licensing Regulations , 1984 and obtained his
CHA License from Delhi Commissionerate . His extensive cognition and more than 15 years
of expertise in logistics and international Trade has helped the company to conceive the
essentials and prerequisites of the industry to provide a strong Logistical support system
across the world .

12
 Chapter 2
Research Methodology

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Objective of The Study

To understand Custom Clearance Procedure

To study the relationship between the Importer & CHA .
To identify the problems if any in the field of customer awareness in the logistics
sector and to come out with solution for the problem.
To give feasible suggestion to the company about the improvement in quality of
services.

Scope of The Study

This study is restricted to the logistics services offered by New India Logistics &
the time period of the study is between June to July.
The study provides the impact of the level of logistics service in the market.
The project determines the trade and logistics management facility.
The project deals with measurement of service, and links with internal performance
appraisal and improvement process of trade industry.

Research Methodology

Research Methodology comprises of defining & redefining problems, collecting, organizing

&evaluating data, making deductions &researching to conclusions.
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any conclusion.
The project was based on the survey plan. The main objective of survey was to collect
appropriate data, which work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods used
in the context of a research study and it explains why a particular method has been used in the
preference of the other methods
. Every project work is based on certain methodology, which is a way to systematically solve
the problem or attain its objectives. It is a very important guideline and lead to completion of
any project work through observation, data collection and data analysis.
Accordingly, the methodology used in the project is as follows: -

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 Research Design
Methods of data collection
Limitations of the study

Research Design

Research Design is a plan, conceptual structure, and strategy of investigation conceived as

to obtain answers to research questions and to control variance.
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to study
buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research
design specifies the methods and procedures for conducting a particular study.

Method of Data Collection

Sources of Data
1. Primary Data
2. Secondary Data

Primary Data
The Primary data is collected through questionnaires administered to a sample of 100
customers selected from Bangalore city, the questionnaire before it was administered.

Secondary Data
Secondary data was collected through various publications of newspapers, annual reports,
websites, and magazines.

Sample Design
A total of 100 customers were selected from the Delhi for this study to analyze the customer
satisfaction with reference to New India Logistics.

Tools & Techniques For Collection Of Data

Empirical field studies require collection of first hand information on data pertaining to the
unit of study from the field.

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 The sampling plan is effective in getting the first hand information i.e. primary data, which has
been required for the study by the research.

Plan of Analysis
The information gathered was tabulated and various graphs are prepared to analyze.

Limitation of the Study

The study confined to Delhi and may not be relevant to other counter parts.
Since only 100 samples were taken for study the generalization made for the entire

population may not be true.

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Chapter 3

17
 THEORETICAL FRAMEWORK 3.1 EXPORT

Export preliminaries:

In order to enter into export business, certain preliminary steps have to be taken by every
business organization. The setting up of an export firm is completed in two stages. They are:

A) Establishing a business firm-:

There are various formalities and registrations to be made with different authorities before an
exporter can enter into export business and accept an export order.

1) Selection of name of the firm-: An entrepreneur can choose any name for the firm he
wants to start. It is desirable that the name of the firms indicates that the business relates
to export/import.

2) Approval to name of firm-: There is no need to obtain prior approval of regional

licensing authority of DGFT (Directorate General of Foreign Trade) for the proposed
name of business firm. However, if the firm is planning to export readymade garments to
any country; approval from Apparel Export Promotion Council (AEPC) is required. The
entrepreneur has to apply to AEPC in the prescribed application form for the clearance of
the name. Once the name is approved, registration of firm in that name with AEPC is to
be made within a period of three months. After the registration is done, the firm would
become registered exporter.

3) Registration of Organization-: The form of organization can be sole partnership,

partnership firm under Indian partnership act, 1932 or join stock company registered
under the companies act, 1956.

4) Opening of Bank Account-: The firm or company has to open a bank account with
branch of a commercial bank, authorized by reserve bank of India to deal in foreign
exchange. The firm may require pre and post shipment finance for its business.

5) Obtaining Permanent Account Number-: export income is subject to a number of

exemptions and deductions under the income tax act. For claiming those exemptions and

18
 deductions, it is necessary for every exporter to obtain permanent account number from
the income tax authority.

6) Registration with Sales Tax Authorities-: exporter need not pay sales tax while
making purchases meant for export. But for availing the benefit, firm has to register with
sales tax authorities and secure sales tax number.

B) Obtaining the importer-exporter code number -:

This is required for completing other registrations.

1. Importer - Exporter Code Number (IEC)-: No export or import

transaction can be made without obtaining an importer-exporter code number. IEC
number is a pre-condition for exports from and imports into India. IEC number entitles to
import or export any item of non-prohibited goods. This code number is made compulsory
now. The registered /head office of the applicant shall make an application for grant of
IEC number to the regional office of DGFT (known as Regional Licensing Authority),
having territorial jurisdiction over the firm, along with the following documents: profile
of the exporter/importer, demand draft from a bank for rs.1000 as fees, certificate from the
banker of the applicant, two copies of passport size of the applicant, declaration on
applicants letterhead that there is no association of the applicants firm with caution listed
firms. The licensing authority shall allot the IEC number in prescribed format. There is no
expiry date for iec number. This number is invariably used in all documents particularly in
bill of entry in case of imports and shipping bill in case of exports.

2. Registration Cum Membership Certificate (RCMC) -: it is

obligatory for every exporter to register with appropriate Export Promotion Council
(EPC) and obtain registration cum membership certificate. Any person applying for
import or export license or any other benefit under the current exim policy is required to
obtain registration cum membership certificate (RCMC). The benefits provided in the
current EXIM policy are available only to those having valid RCMC with the receipt of
the certificate the exporter will be known as Registered Exporter

3. Registration with Export Credit and Guarantee Corporation

(ECGC)-: the exporter should also register with export credit and guarantee corporation of

19
 India (ECGC) in order to secure export payments against political and commercial risks.
It also helps to get financial assistance from commercial banks and other financial
organization.

4. Registration with other authorities -: it is desirable for the

exporters to become members of local chamber of commerce, productivity council or any
other trade promotion organization recognized by the ministry of commerce or industry.
Local membership helps the exporters in different ways, including in obtaining certificate
of origin, which is vital for exporter to certain countries.

5. Registration for business identification number (BIN)-: the

exporters have to obtain pan based Business Identification Number (BIN) from DGFT
(Director General Foreign Trade) prior to filling for custom clearance of export goods.
Purpose of bin is to bring a common identification number to all persons dealing with
various regulatory agencies such as custom department, central excise etc.

6. Export Licensing -: many items of goods are free for exports

without obtaining any license, if they do not fall in the negative list. The negative list
consist of goods the import or export of which is prohibited, restricted or canalized.

Prohibited items-: these items can not be exported or imported. These items include wild
life, exotic birds, wood and wood products in the form of logs, timber, pulp and charcoal.

Restricted items -: these are the items, export or import of which is restricted through
license. They can be imported or exported only in accordance with the regulations
governing in this behalf.

Canalized items -: goods which are canalized can be imported or exported through the
canalizing agency, specified in the negative list.

So it is necessary for the exporter to check the nature of the item before he enters into the
contract or even makes efforts to secure the export order. Needless to add, the items of export
agreed upon should not be fall in the negative/ banned list.

20
EXPORT PROCEDURE

21
The different steps involved in export department are as follows:

Step 1:

Exporter sends the following document to Forwarder:

Letter of credit: Assures exporter his payment promise to pay a seller (beneficiary)
upon receipt of goods by a buyer if certain conditions outlined in the letter have been
met. It is a method of payment for goods in the buyer establishes which his credit with
a local bank, clearly describing the goods to be purchased, the price, the
documentation required, and a time limit for completion of the transaction. Upon
receipt of documentation, the bank is either paid by the buyer or takes title to the
goods themselves and proceeds to transfer funds to the seller.

Packing list: A list which shows number and kinds of packages being
shipped, totals of gross, legal, and net weights of the packages, and marks
and numbers on the packages. The list may be requested by an importer
or may be required by an importing country to facilitate the clearance of
goods through customs.

Invoice: One of the common to both international and domestic transactions is the bill
(invoice) that the exporter sends to the importer. However, the content of an
international invoice is more complex and should be prepared slightly differently for a
foreign customer than for a domestic one.

Step 2:

On the basis of invoice, Forwarder prepares Annexure A, Annexure C, Annexure D and

SDF ( Statutory Declaration Form ) along with the invoice.

Step 3:

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Send these annexure to the custom house. The custom prepares the shipping bill in four
copies on the basis of these annexure.

Step 4:

Custom calculate the duty (CESS) on the value of the goods.

Using the Treasury Challan the duty can be paid. Cargo can enter the port premises.

Step5:

Custom examined the cargo by using the sample. (Customs examined the cargo only after
the duty is paid) in case of more than one container in one B/L than A.C give some container
no. randomly for examination and that container must be de-stuff by CHA.

Step 6:

The duplicate shipping bill and wharf age duly paid is given to the container agent. The
container agent hand over the duplicate shipping bill to the vessel agent who is here uses it
for the purpose of filling EGM (Export General Manifest).

The container agent gives the wharf age form paid is given to the container agent grants the
loading permission. (But in case of the break bulk cargo, the CHA itself submits the wharf
age paid form to the port authority, so that loading can be allowed in the vessel).

Step 7:

In the case of break bulk, after loading the cargo the chief officer issues the mate receipt, on
the basis of which captain of the vessel issues the bill of lading.

Step 8:

Besides all the CHA sends the phytosanitary certificates/pre inspection certificate to the
exporter so that with all documents he can submit this to the bank.

In case of charter, after processing and shipment of the goods following documents are sent
back by the CHA to exporter.

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 Full set of bill of lading:

For pre carriage is through ship the bill prepared for export is called bill of lading & if the
shipment is by air then the bill prepared is called airway bill.

A bill of lading is a very important document. It is issued by the logistics service

providers. It can be well explained as a document issued by a common carrier to a shipper
that serves as:

A receipt for the goods delivered to the carrier for shipment.

A definition of the contract of carriage of the goods.

A Document of Title to the goods described therein.

This document is generally not negotiable unless consigned "to order." If we ask to the
logistics companies than a Bill Of Lading is a product for them. They do the whole business
on the Bill of Lading. Increase in Bill of Lading shows increase in companys turnover.

Copy of Mate Receipt:

Issued by commanding officer of the ship that cargo has been loaded to the ship name of the
vessel, date of shipment, condition of cargo at the time of receipt, berth, and description of
packages.

Mate receipt is handed over to the port authorities so that port dues are cleared by the
exporter. Bill of lading is issued by the shipping company only after the mates receipt is
submitted by the exporter

Self Declaration Form or G R Form:

Under customs act, every exporter is required to declare export value of shipment ad give an
undertaking that export proceeds would be realized within a period of six months from the
date of shipment or due date, which ever is earlier. If customs clearance for the shipment is
made manually, declaration is made in GR form, in duplicate. If the clearance is
computerized, SDF form, in duplicate, is used in place of GR form.

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 Copy of shipping bill (triplicate and quadruplicate).

Bill is generated in the customs clearance on the basis of The invoice is given to the company
by the shipper. And a shipping the invoice and packing list. When cargo is stuffed, inside the
container, in our port office or at factory. The details are given to the corporate office
documentation department via fax. The details as such received are feed in to software called
Visual Impex. Than, the details are sent via Ice gate link to the customs database. In return,
the customs allocate a shipping bill number and print a shipping bill in the port office which
is to be collected from the port office. Further, the procedure goes for carting and loading the
cargo into the vessel.

Certificate of origin.

A document provided by the exporters chamber of commerce that attests that the goods
originated from the country in which exporter is located.

Documents submitted by CHA to the customs:

Invoice.

Packing list.

Self Declaration Form Or Gr Form

Acceptance of contract.

Letter of credit.

Quality Control Certificate.

Lists of documents required to be submitted by the exporter to various

authorities, organizations, and agencies.

1) To the custom authority:-

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 Commercial invoice

GR Form ( Original and Duplicate )

Shippers Declaration Form

Copy of the Export Contract /L/c/Export Order

Inspection certificate

AR-4 Form Export License

Export license

Weighment Certificate

Shipping bill

2) To the port authorities:-

Port Trust Copy of the Shipping Bill

Wharf age application.

3) To the bank

Letter of credit

Commercial invoice

Bill of lading

Insurance Policy/Certificate

Bill of exchange

26
 GR Form (duplicate copy)

Bank certificate

Export Inspection Certificate

Certificate of Origin

Shipment advice

4) To the RBI:-

Copy of the invoice

Sales Contract

Bill of lading

Inspection / Analysis Report

5) To the EXIM Bank:

Export contract

Letter of Contract

Balance sheet of the exporter

Statement of profit and loss in the transaction covered by the export contract

Statement regarding the projections of the credit requirement.

27
Treasure Challan:-

This is document is used at the time of payment of the duty to the customs. It shows the
amount to be paid to the customs authority.

It is in four copies:-

Original

Duplicate

Triplicate

Quadruplicate

Customs keeps the original and duplicate copies. Triplicate and Quadruplicate copies are sent
to the CHA.

28
 3.2 IMPORT

Import Procedure

29
The import procedure is quite different the export procedure. It starts with

The importer asks for the three original bills of lading from the bank. The bank issues the
bill of lading only when the importer cleared all the payments due to the bank.

The importer then sends the following documents CHA :-

a) Bill of lading

b) Invoice

c) Packing list

d) Certificate of origin

e) Pre shipment inspection certificate

f) Insurance certificate

g) Sales contract

h) Bond copy (if H.S.S)

The CHA shows the bill of lading to the shipping agent in order to get the NOC (Non
Objection Certificate in Kandla Port only).

No objection certificate has been issued by the shipping line to make sure that they have
no objection to open the containers for the examination of goods.

CHA then presents the bill of entry to the customs for noting and then customs gives the
import department the serial no. that comes on all copies of bill of entry.

30
 CHA pays wharf age to the port authority and the original copy of wharf age goes to the
treasury of port trust.

Customs give the examination order on the back of original bill of entry in case of first
check procedure.

Cargo is inspected in front of the customs. Customs give the examination report at the
back of the bill of entry.

Customs assessed the duty to ensure that the duty evaluated by the CHA is correct.

Prior to this, the CHA on the basis of invoice, packing list prepares the bill of entry. The bill
of entry is a proof that the goods have been imported.

For custom clearance purpose, the importer has to submit to the customs authority a form,
which is known as bill of entry.

Bill of entry is in three copies:-

Original copy:-

This is called the customs copy. In first check procedure it contains the examination report on
the back of it.

Duplicate copy:-

It is submitted in port either in container section or in break bulk section along with wharf
age, NOC, Delivery order. It shows charges have been paid to customs and contain on the
back, passed out of custom charges.

Triplicate copy:-

31
This copy is for central excise for availing certain benefits.

Quadruplicate copy:-

This copy is submitted to the bank.

Port trust copies:-

Out of 5th, 6th, and 7th copies, one copy is given to the port authority. The other two copies are
kept by the CHA for his record.

Documents to be used in import:

I. Bill of lading

II. Invoice

III. Certificate of origin

IV. 59- Bond warehousing bond

V. Wharf age

VI. Bill of entry

VII. Packing list

VIII. NOC (No Objection Certificate)

IX. Delivery order

X. Treasury challan

XI. Gate pass

32
DOCUMENTS WHICH ARE TO BE USED IN IMPORT AND EXPORT CUSTOM
CLEARANCE.

Letter of Credit

A Letter of credit is a document containing guarantee of a bank to honor drafts drawn on

it by an exporter, under certain conditions and up to certain amounts, provided that the
beneficiary fulfills the stipulated conditions.

Packing list

Its is a detailed document provided by the exporter that spells out how many containers
there are in the shipment and which merchandise is contained in each container.

Invoice

It is a document which shows the total amount of the goods and the description of goods.

Bill of lading

A generic term used to describe a document issued by the carrier to the shipper.

Mate receipt

Mate receipt is issued by the mate (assistant to the captain of the ship) after the cargo is
loaded into the ship. It is an acknowledgement that the goods have been received on board
the ship

Shipping bill

It is issued by the custom authority. Shipping is the main document of the basic of which
the custom permission is given. After the shipping bill is stamped by custom, then only
the goods are allowed to be enter to the deck. It is prepared by EDI system or manually
system.

Certificate of Origin

33
 A document provided by the exporters chamber of commerce that attests that the goods
originated from the country in which exporter is located.

Phyto-sanitary certificate

A document provided by an independent inspection company, or the Agriculture

Department of the exporting countrys government, that attests that the goods confirm to
the agriculture standard of the importing country.

Manifest

A document internal to the shipping company (the carrier) that lists all cargo onboard the
transportation vehicle.

Forms AR-4/AR-4A

These forms are meant for applying for the removal of excisable goods for export by
sea/post. Form AR-4 is used for applying for excise inspection at the factory and form
AR-4A is used when goods are to be exported under a claim for rebate of excise duty or
under bond.

Certificate of Measurement

Freight can be charged either on the basis of weight or measurement. When it is charged
on weight basis, the weight declared by the overseas supplier is accepted. The certificate
contains the name of the vessel, the port of destination description of goods, quantity,
length, breadth, depth etc of the packages.

Shipping advice

A shipping advice is used to inform the overseas customer about the shipment of goods.
There is no particular form of shipping advice. The exporter only advises his importer
about the invoice number, Bill of lading / Airway bill number and date, name of the vessel
with date of sailing of the vessel.

Bill of entry

34
 The bill entry is a document, prepared by the importer or his clearing agent in the
prescribed form under bill of entry regulation, 1971, on which clearance of imported
goods can be made.

Certificate of insurance

A document providing by the insurance company of the exporter that the goods are
insured during their international voyage.

35
 CHAPTER 4:
DATA ANALYSIS

36
 TABLE -1

Ques 1. How did you come to know about New India Logistics ?

Basis No. of Respondents %

TV 2 2
Exim Newspaper 5 5
Relatives & Friends 8 8
Word of Mouth 65 65
Internet 20 20
Total 100 100

70% 65%
60%
50%
40%
30% 20%
20%
5% 8%
10% 2%
0%

ANALYSIS:
From the above table it is analysed that , 65% of the respondents say they got to
know about New India logistics through word of mouth, 20% of them got to know

37
through Internet, 5% through Exim newspaper , 8% From Relatives and 2% through
TV.

TABLE -2
Ques 2. For how long you have been using New India Logistics services ?

Basis No. of Respondents %

0-6 months 5 5

1-2 years 14 14

2-3 years 25 25

3 yrs and above 56 56

TOTAL 100 100

56%
5%

14%

25%

0-6 months 1-2 years

2-3 years 3 yrs and above

ANALYSIS:

38
From the above table it is analysed that , 56% of the respondents say they have been
using New India Logistics services more than 3 years, 25% of them are using it from
2-3 years, 14% of them are using it from 1-2 years and 5% from 0-6 months.

TABLE -3
Ques 3.What made you use New India Logistics services ?

Basis No. of Respondents %

Cost 12 12
Time 8 8
Quality 7 7
Service 72 72
Packaging 1 1

TOTAL 100 100

80% 72%

70%
60%
50%
40%
30%
20% 12%
8% 7%
10% 1%
0%
Cost Time Quality ServicePackaging 0%

ANALYSIS:

39
From the above table it is analysed that, 72% use it for its services, 12% of the
respondents use New India Logistics services for its cost, 8% use it for its time, 7%
use it for the quality and 1% for its packaging

TABLE -4
Ques 4. How often do you Import goods ?

Basis No. of Respondents %

Everyday 10 10
2-3 Days 32 32
Weekly 39 39
Fortnight 15 15
Monthly 4 4

TOTAL 100 100

15% 4% 10%

Everyday 2-3 days Weekly 32%

Fortnight Monthly
39%

ANALYSIS:

40
From the above table it is analysed that, 39% of the respondents import their goods
weekly, 32% import it 2-3 days, 15% import it every fortnight, 10% of them import
it every day& 4% of them import it monthly once.

TABLE -5
Ques 5. How much time Company take to do Custom clearance ?

Basis No. of Respondents %

On time 64 64
Before time 19 19
After time 10 10
Very late 7 7

Total 100 100

Very late 7%

After time 10%

Before time 19%

On time 64%

0% 10% 20% 30% 40% 50% 60% 70%

ANALYSIS:

41
From the above table it is analysed that, 64% percent of the respondents say that the
Custom Clearance of goods was on time, 19% say that the Clearance was before
time,10% of the respondents say that the Clearance was after time and 7% say it was
very late from the schedule time

TABLE -6
Ques 6.How would you rate New India Logistics in terms of Price ?

Basis No. of Respondents %

Excellent 39 39
Average 32 32
Good 19 19
Poor 10 10

TOTAL 100 100

39%
40% 32%
35%
30%
25% 19%
20%
10%
15%
10%
5%
0%
Excellent Average Good Poor
Column2

ANALYSIS;

42
From the above table it is analysed that,39% of the respondents rated the pricing as
excellent, 32% respondents were average, 19% of the very respondents quoted as the
pricing style to be good and the rest 10% stated as the price to be poor.

TABLE -7
Ques 7. How would you rate New India Logistics in terms of Staff Perfomance ?

Basis No. of Respondents %

Excellent 29 39
Average 32 32
Good 29 19
Poor 10 10

TOTAL 100 100

35% 32%
29% 29%
30%

25%

20%

15%
10%
10%

5%

0%
Excellent Average Good Poor

43
ANALYSIS;
From the above table it is analysed that, 32% of the staff were co-operative towards
the customer, 29% as good and 29% rating as excellent was given by the respondents
& 10% of the respondents said there was improvement to be made in them.

TABLE -8

Ques 8. How would you rate New India Logistics in terms of Service ?

Basis No. of Respondents %

Excellent 69 69
Good 21 21
Average 6 6
Poor 4 4

TOTAL 100 100

69%
70%

60%

50%

40%

30% 21%

20%
6% 4%
10%

0%
Excellent Good Average Poor

44
ANALYSIS:
From the above table it is analysed that, 69% of the respondents say that the service
of New India Logsitics are excellent, 21% say it is good, 6% were average
respondents and 4% respondents say it is poor.

TABLE -9

Ques 9. How would you rate New India Logistics in terms of Freight Forwarding ?

Basis No. of Respondents %

Excellent 9 9
Good 86 86
Average 5 5
Poor 0 0

TOTAL 100 100

45
 86%
Excellent
Good

5% Average
9%
Poor

ANALYSIS:
From the above table it is analysed that, 90% of them think it is excellent,86% of the
respondents think that the Freight Forwarding of New India Logistics is good and &
5% think it is average.

TABLE -10
Ques . 10 How would you rate New India Logistics in terms of Transportation ?

Basis No. of Respondents %

Excellent 36 36
Good 64 64
Average 0 0
Poor 0 0

TOTAL 100 100

46
 70 64

60

50
36
40

30

20

10

0
Excellent Good 0
Average 0
Poor

ANALYSIS:
From the above table it is analysed that, 64% of the respondents say that the
Transportation of goods is good and 36% of them say it is excellent.

TABLE -11
Ques 11. How would you rate New India Logistics in terms of Warehousing ?

Basis No. of Respondents %

Excellent 23 23
Good 69 69
Average 8 8
Poor 0 0

TOTAL 100 100

47
 69
70
60
50
40
23
30
20
10 8

0
Excellent
Good
Average 0
Poor

ANALYSIS:

From the above table it is analysed that, 69% of the respondents say that the
Wareshousing done by New India Logistics is good, 23% of the respondents say its
excellent & 8% say it is average.

TABLE -12
Ques 12. Do you expect any improvement in New India Logistics Services ?

Basis No. Of Respondents %

48
Yes 57 57

No 43 43

TOTAL 100 100

60

50

40

30 57

20 43

10

0
No Yes

ANALYSIS:
From the above table it is analysed that, 57% of respondents wants improvement in
the services offered by New India Logistics and 43% expects no improvement in the
end service.

Findings
1 It is inferred that majority of the respondents said that they came to know
New India Logistics through word of mouth. Therefore the advertisement
costs are minimal.

49
2 It is inferred that more than 50% of the customers have been loyal to the
company for more than 3 years. This speaks high about the good quality of
service provided.
3 It is inferred that most of the respondents use the New India Logistics
services for the services provided by them.
Hence the services provided by New India logistics are very well enriched.
4 It is inferred that majority of the customers use the services weekly. This
means they often make use of New India Logistics services.

5 It is inferred that the Clearance was often before time and at time which
denotes a good remarks. Hence it is clear that there is little area of
improvement.
6 It is inferred that quite a majority of the customers were satisfied with
pricing strategy offered by New India Logistics
Hence it can be said that the service provided in respect of price is
satisfactory.

7 It is inferred that the quality of the behaviour was average and there was an
equal response as excellent and good. Hence in an overall it can be said
there is a little to improve in behavioural aspects.

8 It is inferred that 91% of the respondents say that the services of New India
Logistics are excellent & good. So the services provided by New India
Logistics are very good and the customers make use of New India Logistics
for its services.

9 It is inferred that most of the respondents think that the Freight Forwarding
is very good.

50
 10 It is inferred that the Transportation of the goods by New India Logistics
seems to be very good as of all the respondents say its good & excellent.
Transportation seems to take the utmost care of the goods.
11 It is inferred that more than 50% of the respondents think that the
Wareshousing is good, therefore the maintenance of the vehicle by New
India Logistics seems to be very good.
12 It is inferred that there was a mixed view of respondents and from the
satisfaction level it is successfully interpreted that the New India Logisitcs
has achieved a average level of customer satisfaction.
13 It is inferred that majority of the respondents wants improvement in services
and the remaining others are satisfied. Therefore it can be diagnosed that
there are improvement to made for New India Logistics services to achieve
customer satisfaction

CONCLUSION

Based on the overall study of the company the financial position of the company is
sound. New India Logistics is one of the best Service provider in Delhi. The

51
company is having the very good brand image in the customers mind. And it is
good market. The employees in New India Logistics are hardworking and
dedicated. The company has increasing profit and net worth .Thus, company
performed very nicely from its birth.
All the departments play a vital role in every organization. The overall study that
emerges in this firm has maintained well and efficient department in the
management. Its all sections are working efficiently. The overall capacity of all the
departments is well systematic.
In the course of study I have not only acquired theoretical knowledge and also
practical knowledge in this firm. I conclude that all the departments functions
should have modern techniques towards other departments.

SUGGESTIONS

Following suggestions should be taken into consideration in regarding to New

India Logistics Company
The company must improve its current service facilities.
The company must expand their business in different cities
The company should do online marketing.
To retain the employees by providing them incentives as to motivate and
encourage for their contribution.

A proper blend of quality, time of work as well as inter-personal relationships

should account for the appraisal system as each one of them is equally important.

52
53