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Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
Summer Training Report
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Summer Training Report

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  • 1. Declaration<br />I hereby declare that the study entitled ‘Comprehensive study of various documents required in export-import’ is being submitted by me in the partial fulfilment of the requirement for the award of MASTERS OF BUSINESS ADMINISTRATION. The study was conducted at Documentation Department, AVTEC LTD. <br />The matter embodied in this project report has not been submitted to any other University or Institution for the award of degree. This project is my original work and it has not been presented earlier in this manner. This information is purely of academic interest.<br /> <br />Preface<br /> On job training forms an integral part in the curriculum of MBA student who are required to undergo training in a reputed corporate house. It is designed to know business environment and situations. It helps students in applying there theoretical concepts to gain valuable insight of corporate culture and system. <br />I under took my training in AVTEC Limited, Pithampur. Duration of my training was 10 June 2011 to 09 July 2011. During my training period, I spend my major time in understanding the function of documentation departments of AVTEC. And especially in Documentation Department I did a project on the ‘Comprehensive study of various documents required in export-import’. This project report is a summary of all the functions and knowledge, I gathered during my training period.<br />An error and omission that might have occurred are totally unintentional and unfortunate, and I express my apology for the same. <br /> <br />Acknowledgement<br />It is my proud privilege to put on record my gratitude to all those who have been the source of guidance, cooperation & help during my summer training at AVTEC LTD. An undertaking of study like this is never the outcome of the efforts of a single person. My project is not an exception to this. It was not possible to accomplish it without the help of others. I would hereby take the opportunity to express my indebtedness to people who have helped me to accomplish this task. <br />I wish to express my deep sense of gratitude to my guide Mr. Shirish Makode for the keen interest, inspiring guidance, continuous encouragement, valuable suggestions & constructive criticism throughout the pursuance of this report. <br />Further words of thanks are expressed to all other staff members without whose help it would not have been possible to collect information & data.<br /> <br />Contents<br />
    • ABOUT COMPANY
    • 2. Company origin
    • 3. Introduction
    • 4. Company profile
    • 5. Vision & Mission
    • 6. Board of directors
    • 7. Milestones
    • 8. Our customers
    • 9. Awards/Recognition
    • 10. Products overview
    • 11. Units of AVTEC
    • 12. OBJECTIVES OF SUMMER INTERNSHIP
    • 13. METHODOLOGY
    • 14. INTRODUCTION OF TOPIC
    • 15. STUDY OF THE TOPIC
    • 16. Export documentation
    • 17. Objectives of documentation
    • 18. Essential documents
    • 19. Import documentation
    • 20. Custom procedure for import
    • 21. BENIFITS OF THE STUDY
    • 22. LIMITATIONS OF THE STUDY
    • 23. RECOMMENDATIONS & CONCLUSION
    • 24. REFERENCES
    Company Origin<br />AVTEC<br />One stop shop for powertrain<br />& precision engineered components<br />The story of evolution revolves around the wheel, the single important invention that propelled mankind towards the Bronze Age and beyond. The wheel itself did not evolve too much since then there was no need for it to. However, it became the pivotal point for most machines thereafter.<br />At AVTEC, we approach our business in the same way. While our core values have not changed, we apply them to our innovations on a regular basis. And our challenge is to perfect them in the shortest possible time. We move forward, never resting, in search of the next best thing for our customer. This has, in turn, made us the chosen supplier for the world’s best automobile manufacturers.<br />AVTEC, the largest independent manufacturer of power trains and transmissions in India is a part of the C. K Birla group. The group spans four continents and has a global revenue of over USD $1.8 billion with interests in major industrial segments including automobile, bearings, powertrain for auto and off highway, paper, cement, building products, electrical products and information technology.<br />Introduction<br />The C.K Birla Group was established by the late Mr. Braj Mohan Birla, a great visionary. The group has a track record of successful partnerships and collaborations with global technology leaders.<br />The group has over the years promoted and established a large number of industrial undertakings. We manufacture a diverse range of products and employ a massive trained work force. Backed by vast manufacturing experience, in-house research and selective collaborations, the group has developed a range of relevant and proven technologies that have been applied in the implementation and management of industries in four continents. <br />AVTEC is the largest independent manufacturer of engines and transmissions, supplying critical auto components to reputed global original equipment manufacturers including GM, Ford, Mahindra & Mahindra, Caterpillar, BEML, Hindustan Motors, Tata Motors, Daimler, Allison Transmission, Eicher and export to F.G. Wilson (USA/UK. We execute value engineering projects as well from our R&D for all existing customer products to cut down the cost. We are also in the business of sourcing of automotive components mainly related to engine and transmission.<br />The group has a track record of successful partnerships and collaborations with global technology leaders.<br />In addition to this, we have world class facilities for engine/transmission testing and validation. Our prestigious clients like GMI and FIL rely on our dynamometers/test rigs for their regular production and new development of engines and transmissions. With our experience in managing the homologation activities with the Indian certifying agencies, we are able to support our customers for homologation activities in India as well. <br />Finally, we have launched an engineering services organization to serve our customers and to make a presence in the global engineering design outsourcing market. Our team of experienced engineers are ready to take-up assignments with skill and confidence.<br />Vision & Mission<br />VISION<br />We shall create a value proposition for our customers, share holders, business partners and employees through becoming first choice supplier in Powertrain and Precision Engineered products & services.<br />MISSIONWe aim to grow with profitability and continuously improve product quality and services through employee involvement, adoption of best-in-class manufacturing systems and processes. By forging mutually beneficial relationship with all stake holders we want to achieve<br />Customer confidence<br />Benchmark level of Return on Investment<br />Growth in revenue in line with our long term strategy<br />Board of Directors<br /> <br />
    •  Mr. Chandra Kant Birla – Chairman Mr. Prabhakar Kadapa -- CEO & Managing DirectorMr. A. Sankaranarayanan Mr. Naresh Chandra Mr. Amal Ganguli Mr. Haigreve Khaitan Mr. J. M. Trivedi Mr. Steven EnderbyMr. Prabir Talati 
    Company Profile<br />Basic Information<br />  Company Name:AVTEC Limited Business Type:Manufacturer Product/Service(We Sell):Auto Engines and Transmissions, Auto Components, auto Gears, Shafts  Address:Pithampur Sector 3, Sagore , District Dhar Number of Employees:501 - 1000 People<br />Ownership & Capital<br />  Year Established:1987     Legal Representative/ Business Owner:Mr. Sudhir Rao   <br />Trade & Market<br /> Main Markets:North AmericaSouth AmericaWestern EuropeEastern EuropeEastern AsiaSoutheast AsiaMid EastAfricaOceania Total Annual Sales Volume:US$50 Million - US$100 Million  <br />Factory Information<br /> No. of R&D Staff:21 - 30 People   Contract Manufacturing:OEM Service Offered <br />Milestones<br />1984<br />
    • Power Unit Plant set up at Indore to manufacture Power Units and Auto components
    • 25. Technical Collaboration with Isuzu Motors, Japan
    1985<br />
    • The Power Products Division was formed at Hosur near Banglore. This division entered into an agreement with Allison Transmission (Division of General motors Corporation) to manufacture CL(B)T series of Hauling Transmissions & CRT series of cycling Transmissions in India
    1988<br />
    • PUP Indore started assembling Power Units
    • 26. PPD Hosur tied up with Twin Disc Inc. Of USA to manufacture T(R)T 2000 series of cycling transmissions
    1994<br />
    • PUP Indore received the coveted ISO 9001 Certification
    1996<br />
    • The first Transmission was exported from PPD Hosur
    1997<br />
    • PUP Indore implemented the concept of Manufacturing Systems Engineering (MSE)
    2000<br />
    • PUP Indore got the coveted ISO 14001 Certification
    2003<br />
    • PUP Indore got the TPM excellence award by JIPM
    2006<br />
    • PUP Indore entered into an agreement with Tata Motors for manufacturing gear box components for their small car project
    2008<br />
    • AVTEC Kharagpur plant established to focus on manual transmission components for small cars and Planetary Gears for heavy trucks
    2009<br />
    • Commercial Production for small cars started from AVTEC Kharagpur plant
    2010<br />
    • Commercial Production for heavy vehicles started from AVTEC Kharagpur
    Our Customers<br />Awards / Recognition <br />Quality Policy / ProcessesDisposal of Sewage and ETP Discharge through a Sewage Treatment Plant (STP). Conversion of Kitchen and Dining Hall Waste to useful manure through a Wormi-culture Process.Pre-Treatment of Industrial Effluents in ETP before dis-charging into a Sewage Line Disposal of Sewage and ETP Discharge through a Sewage Treatment Plant.AVTEC has now been certified as a Q1 supplier, once again demonstrating the high quality of its products Ford ranks as one of the world’s largest automotive manufacturers with locations in North America (Ford), Europe (Ford, Volvo, Land Rover, Jaguar and Aston Martin) and Asia (Mazda). In order to guarantee a uniformly high production and quality standard throughout the world, Ford has established its own quality system that aims to ensure that suppliers meet these standards. This system is known asQ1.<br />AVTEC has been awarded the Export House certificate by the Office of the Joint Director General of Foreign Trade, Ministry Of Commerce & Industry, Government of India.<br />Products Overview<br />AVTEC manufactures Engines, Transmissions and precision components for our customers in the segments given belowAutomotive Segment<br />Passenger Car<br />Commercial Vehicles<br />Non Automotive Segment<br />Mining and Construction Equipment<br />Material Handling<br />Oil Field Applications<br />Railways<br />Wind Mill<br />Genset Applications<br />COMPETENCIESAt AVTEC, we have developed the capacity and capability for future growth and projects by adopting Lean Manufacturing Concept. This allows us to maintain the best manufacturing cost and keep our business competitive in the industry. We offer the following key services to our customers<br />Design and development of powertrain assemblies<br />Contract manufacturing of customer designed powertrain systems<br />Manufacturing and supply of critical and precision engineered components<br />To enable this AVTEC is equipped with<br />Excellent machining facilities for all critical castings and forgings<br />Superior gear manufacturing and inspection facilities that ensure quality<br />Heat treatment facilities<br />Tool designing facilities to match specific job requirements<br />Diesel Engines<br />We are engaged in manufacturing of diesel engines. Our range of diesel engines are manufactured from high quality components. These engines are widely used in automotive industries and various other industries. Our diesel engines and portable diesel engines give better mileage.<br />Diesel Engine (2.0L)Diesel Engine (3.9L)Turbo Diesel Engine (2.0L)<br />Engine Components<br />We offer a complete range of engine components like Cover Rear, Housing Piston, drive gear, lay shaft, Shifter Sleeve, sliding cluth etc. Our range of diesel/petrol engine components are made from highly quality materials. These engine components are highly demanded by our clients. <br />CollarCountershaft GearCover RearDrive GearHousing PistonReverse Idler Gear<br />Petrol Engines<br />We design and provide an exclusive range of Petrol Engine/Diesel Engine in Cut Section. Widely used in automobile and engineering industries. Our range of petrol engines are pass through the strict quality parameters and thus ensure complete satisfaction to our clients. We also offer these products at affordable prices in the market. <br />Petrol Engine (1.3L)Petrol Engine (1.6L)Petrol Engine (1.8L)<br />Units Of AVTEC<br />Power Unit Plant-<br />PITHAMPUR<br />AVTEC PUP-Pithampur plant’s business is categorized into two streams consisting of contract manufacturing and proprietary products.<br />The Power Unit Plant has state-of-the-art manufacturing facilities which are intelligently designed and adhering to stringent Quality Management Systems. Our quest for higher operational efficiency and best cost performance has made this plant a specialized entity to produce various components including cylinder heads, cylinder blocks, crankshafts, connecting rods for engines and gears, sleeves, shafts and transmission cases, apart from dedicated product specific <br />assembly live.In its aim of maintaining stringent quality standards, AVTEC maintains<br />Dedicated facilities for each customer<br />Product validation facilities<br />NABL accredited laboratories<br />Capabilities for Product Engineering<br />Power Product Division–<br />HOSUR<br />The Power Products Division in Hosur manufactures off-highway hauling transmissions (both automatic and power shift), in technical collaboration with Allison Transmission Inc and cycling transmissions for off-highway, material handling and locomotive segments which are designed in-house.<br />It also manufactures, on a contract basis, transmission for global automobile manufacturers and can contract manufacturers for off-highway major aswell.Unit Plant – <br />KHARAGPUR<br />AVTEC Kharagpur plant was established in 2008 to focus on Manual Transmission Components for small cars and Planetary Gears for heavy trucks.<br />The Kharagpur plant offers manufacturing facilities for a wide range of transmission components required for small cars to heavy trucks. It features state-of-the-art machines such as Gleason Gear Grinding, ECM Vacuum Carburizing, Cinamatic Laser Welding, etc. to cater to customer requirement and to achieve the best quality in its class.<br />Unit Plant – <br />MEPZ CHENNAI<br />The Plant in the Madras Export Processing Zone (MEPZ) was commissioned with a view to export transmissions and Components. The first transmission was exported from this unit in August 2006. The facility has since then expanded with state-of-the-art machinery to machine Castings and Forgings for meeting global customers’ requirements.<br />Objectives of Summer Internship<br />Training is must in any professional course as student along with theoretical knowledge get aware of its practical application also. Summer training is an integral part of our academic curriculum. The objective of this training is :<br />To understand about International Business procedure.<br />To understand Trade procedure.<br />To understand documentation in foreign trade.<br />To make Controlling and Repeatable processes.<br />
    • To identify relevant document for each activity.
    Methodology<br />ANALYSIS OF WORKING PROCEDURE OF INTERNATIONAL BUSINESS in AVTEC<br />It includes:<br />Searching of exporters and importers with the help of Tele calling.<br />Analyze the exporter/importer Profile .It can be fake or not.<br />To manage all requirements of according to sale contract.<br />Submission of Export / import document in Banking.<br />For Import, Applying for Letter of credit.<br />Introduction Of The Topic<br />Documentation is a general term for a multiplicity of documents in a chosen mix of media and with a certain collection. Purpose of documentation is the use to support a tool or a process.<br />Classical documentation is a set of documents printed on paper. Documentation (to document) also refers to the process of providing evidence.<br />Documentation may include<br />written information for any read, projection or technical performing,<br />data media of any format and for any reproduction,<br />other content.<br />Common types of documentation include user guides, white papers, on-line help, quick-reference guides. It is less common to see hard-copy (paper) documentation. Documentation is distributed via websites, software products, and other on-line applications.<br />Specializing documentation<br />Marketing Communications (MarCom) MarCom writers endeavor to convey the company's value proposition through a variety of print, electronic, and social media. This area of corporate writing is often engaged in responding to proposals.<br />Technical Communication (TechCom) Technical writers document a company's project or service. Technical publication include user guides, installation manuals, and troubleshooting/repair/replace procedures.<br />Legal Writing This type of documentation is often prepared by attorneys or paralegals who could be in private practice or retained as corporate council.<br />Compliance documentation This type of documentation codifies Standard Operating Procedures (SOPs), for any regulatory compliance needs, as for safety approval, taxation, financing, technical approval, etc.<br />
    • objectives of documentation:
    • 27. (i) Reduce non-completion risk. Due to this risk, exporters want to keep title to the goods until they are paid and importers want to wait to pay until they have the goods.
    • 28. (ii) Reduce foreign exchange risk.
    (iii)All foreign trade involves a time lag, so the documentation can free up funds and help in the financing.<br />Study Of The Topic<br />EXPORT DOCUMENTATION <br />Export documentation is a tedious but necessary process that all exporters must pay close attention to, as documentation requirements vary considerably by country, commodity, and situation. Although exporters must fill out and submit many different forms for each international shipment, most require similar data elements and can (and should!) be duplicated precisely from one document to the next. Fortunately, there are software products that capture the primary details of the shipment and insert them into the necessary documents without flaw. This Fast Fact will describe many of the documents your business will need in order to export successfully.<br />Export documents could be classified into two categories depending upon the specific requirements satisfied by them: (1) Regulatory and (2) Operational. <br />(1) Regulatory Requirements: <br />An exporter has to follow strictly the regulation of both the exporting country as well as that of the importing country. For example, there is exchange control in India. Therefore when we export goods, we have to give an undertaking to the RBI that we shall realize the foreign exchange in lieu of the goods exported. We do this by submitting GR form, and it is obvious that we cannot export unless we submit this document. Then there are certain commodities which are subject to export regulation. We have to obtain a licence for exporting the controlled commodities. Thus, another document has necessarily to be used. In order to build up an image of Indian goods abroad there is a system of compulsory pre-shipment inspection and quality control of a number of export goods. The exporter has to obtain an inspection certificate. This gives rise to still another document. There are a number of importing countries which stipulate that the exporter must submit certain specified documents duly certified by their missions in the exporting country. This condition makes it essential the use of the consular invoice and in some cases the use of the legalized invoice. There are countries specially the Commonwealth countries and also those developed countries which have offered concessions to the developing countries under the Generalized System of Preferences which demand that the exporters must submit a certificate of origin. Thus, the exporter has to submit GR form, export licence inspection certificate, consular invoice, legalized invoice and certificate of origin. These are examples of regulatory documents. <br />(2) Operational Requirements:<br />The customs authorities are charged with the responsibility of verifying compliance on the part of the exporters with all types of regulations in force in the country. For their own record purposes, they have devised the Shipping bill. No shipping company or airline will accept any export cargo unless the customs authorities have granted their permission on the shipping bill. Along with the shipping bill, commercial invoices and packing lists are also to be submitted.<br />Essential Documents <br />The invoice and bill of lading are the two documents required for every export shipment. As such, you should ensure that all other documents associated with the shipment match the information on these documents. <br />(a) Invoices : An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay for these goods and is sometimes offered a discount if paid before the due date.<br />TYPES OF INVOICE:-<br />(i) Pro-forma Invoice: A pro-forma invoice is an invoice sent to the buyer before the shipment, giving the buyer a chance to review the sale terms (quantity of goods, value, specifications) and get an import license, if required in their country. It also allows the buyer to work with their bank to arrange any financial process for payment. For example, to open a Documentary Credit (Letter of Credit), the buyer’s bank will use the pro-forma invoice as a source of information. The exporter/seller should not send their customer a pro-forma invoice unless they fully understand what they are offering to the buyer. If no changes are required on the pro-forma invoice after the buyer reviews it, the exporter can simply change its date and title and turn it into a commercial invoice. <br />(ii) Commercial Invoice: A commercial invoice is prepared by the seller/exporter and addressed to the buyer/importer, and is one of the first documents prepared when a transaction has been agreed upon. The invoice identifies the buyer and seller, describes the goods sold and all terms of sale, including IncoTerms, payment terms, relevant bank information, shipping details, etc. An invoice may be itemized to show cost of goods, freight, and insurance, or other special handling. The invoice may be numbered and have multiple “purchase order” numbers. U.S. Customs does not actually need a copy of the invoice, unless requested, but the information included is used to prepare other documents. <br />(iii) Consular invoice: A consular invoice is the commercial invoice stamped or notarized by the consulate or embassy of your customer’s country, if required. For example, if you are exporting to Egypt and your buyer requires a consular invoice, the Egyptian embassy in Washington, D.C. will do this for a small fee. Usually a freight forwarder will offer this service, but an exporter can send the original invoice to the consulate, have it notarized/legalized as required, pay the fee, and have the documents returned or forwarded on. It is important to understand that consular invoices are required in the buyer’s country, so you need to add the time/costs associated with obtaining one to the price of the goods you are shipping. <br />(b) Material Handling <br />(i) Packing List: A packing list is prepared by the shipper and is a detailed break down of the items within a shipment. It may also include any “special marks” for identification. For example, the customer may want “ABC XX” in blue letters on the side of the packaging. For insurance claims and tracking purposes, it helps to describe what is in each “package”. The packing list should also reference the customer’s purchase order number and destination. Often, a packing list is taped to palletized cargo or on the main carton/box of a shipment so that the importer’s customs agency or any transportation handlers can have easy access to it to know what the goods are and their destination. The quantity and items listed on the commercial invoice must match with the packing list, but not necessarily match the pro-forma invoice. Some companies prepare a packing list that is identical to the commercial invoice, minus the prices and other monetary details. <br />(ii) Dock (or Warehouse) Receipt: The dock or warehouse receipt is issued by a warehouse supervisor or port officer and certifies that the goods have been received by the shipping company. This document is used to transfer accountability when goods are moved by the domestic carrier to the port of embarkation and left with the international carrier. At this time, the carrier’s Bill of Lading is also signed by both parties and copies are issued accordingly. <br /> (c) Bills of Lading (B/L) : A Bill of Lading is issued by the carrier to the shipper for receipt of the goods, and is a contract between the owner of the goods and the carrier to deliver the goods. Sometimes the B/L acts as title to the goods so an “Original” B/L is issued- usually a set of three. Whoever presents one of those Original, Negotiable B/L can take possession of the goods. A B/L can be either negotiable or non-negotiable. <br />TYPES OF BILLS OF LADING :- <br />(i) Non-negotiable (or “straight”) B/L: Indicates that the shipper will deliver the goods to the buyer and that title of the goods has not been transferred to the shipper (i.e., the buyer or seller “owns” the goods while they are being shipped). This type of B/L is often used when payment for the goods has already been made in advance. <br />(ii) Negotiable (or “shipper’s order” ) B/L: Serves as a title document to the goods, issued “to the order of” a party, usually the shipper, whose endorsement is required to effect its negotiation. It can also be issued “to the order of” the buyer’s bank as part of a documentary credit/letter of credit stipulation so that when the buyer’s bank receives the Original B/L, they can endorse it over to the buyer at the time of payment for the buyer to clear the goods at customs. Sometimes the negotiable B/L may be consigned “To Order” without reference to a company. A negotiable B/L can be bought or traded while the goods are in transit, whereas a “Straight” B/L is non-negotiable and is consigned to the buyer. <br />The B/L is frequently electronically manifested by the shipping line company using the data sent by the shipper or its agent. Bills of Lading also include a “notify party” (usually the buyer or their agent) so that when the vessel arrives at the port of destination, the carrier can notify the party that the goods are available, are in need of customs clearing, or are ready for pick up. Usually the importer can pick up the goods after customs clearance and duties are paid. “Freight Collect” means the consignee pays the freight charges as well. “Freight Prepaid” means the shipper pays the freight charges, but not customs clearance unless the terms are “delivered duty paid”. If payment is due to the exporter before the importer receives the goods, “advance charges” can be added to the bill so the importer pays for the goods along with the other charges. Two checks should be received so the carrier can forward one check to the exporter for the cost of goods. <br />(iii) Inland Bill of Lading: Issued by the trucking company and/or the railroad line for taking the goods from the exporter’s facility to the port of embarkation or consolidation facility. <br />(iv) Ocean Bill of Lading (OBL): The Ocean B/L is an invoice, and may be issued as a “clean” bill of lading, meaning the carrier certifies that the goods have been received without visible damage. An “On-Board” B/L may be issued when the goods are received into the carrier’s port facility, basically confirming the cargo will be sailing. <br />(v) Air Way Bill (AWB): The Air Way Bill is a form of bill of lading used for the air transport of goods. AWBs are non-negotiable, mainly because of the short amount of time that the goods are in transit. The original AWB is rarely needed by the importer at the other end of the shipment to prove ownership of goods. A “house airway bill” is issued by a freight forwarder on behalf of the actual carrier, which is the case when a freight forwarder has a contract rate with an air cargo service to expedite the documentation. <br />(d) Letters of Credit (L/C): A letter of credit is a document issued by a bank committing to pay the seller/exporter a stated amount of money on behalf of the buyer/importer as long as the specific terms and conditions are met. Of all shipping documents, errors or making changes to the L/C are the most costly and time consuming because of the risk of payment in error. <br />TYPES OF LETTER OF CREDIT:-<br />(i) Irrevocable : An irrevocable letter of credit can neither be amended nor cancelled without the agreement of all parties to the credit. All letters of credit are deemed to be irrevocable unless otherwise stated. Here, the importer's bank gives a binding undertaking to the supplier provided all the terms and conditions of the credit are fulfilled. <br /> <br />(ii) Unconfirmed : The advising bank forwards an unconfirmed letter of credit directly to the exporter without adding its own undertaking to make payment or accept responsibility for payment at a future date, but confirming its authenticity. <br /> <br />(iii) Confirmed : A confirmed letter of credit is one in which the advising bank, on the instructions of the issuing bank, has added a confirmation that payment will be made as long as compliant documents are presented. This commitment holds even if the issuing bank or the buyer fails to make payment. The added security to the exporter of confirmation needs to be considered in the context of the standing of the issuing bank and the current political and economic state of the importer's country. A bank will make an additional charge for confirming a letter of credit. In many cases, the confirming bank is located in Beneficiary’s country.<br />Confirmation costs will vary according to the country involved, but for many countries considered a high risk will be between 2%-8%. There also may be countries issuing letters of credit, which banks do not wish to confirm - they may already have enough exposure in that market or not wish to expose themselves to that particular risk at all. <br /> <br />(iv) Standby Letters of Credit : A standby letter of credit is used as support where an alternative, less secure, method of payment has been agreed. They are also used in the United States of America in place of bank guarantees. Should the exporter fail to receive payment from the importer he may claim under the standby letter of credit. Certain documents are likely to be required to obtain payment including: the standby letter of credit itself; a sight draft for the amount due; a copy of the unpaid invoice; proof of dispatch and a signed declaration from the beneficiary stating that payment has not been received by the due date and therefore reimbursement is claimed by letter of credit. The International Chamber of Commerce publishes rules for operating standby letters of credit - ISP98 International Standby Practices. <br /> <br />(v) Revolving Letter of Credit : The revolving credit is used for regular shipments of the same commodity to the same importer. It can revolve in relation to time or value. If the credit is time revolving once utilised it is re-instated for further regular shipments until the credit is fully drawn. If the credit revolves in relation to value once utilised and paid the value can be reinstated for further drawings. The credit must state that it is a revolving letter of credit and it may revolve either automatically or subject to certain provisions. Revolving letters of credit are useful to avoid the need for repetitious arrangements for opening or amending letters of credit. <br /> <br />(vi) Transferable Letter of Credit : A transferable letter of credit is one in which the exporter has the right to request the paying, or negotiating bank to make either part, or all, of the credit value available to one or more third parties. This type of credit is useful for those acting as middlemen especially where there is a need to finance purchases from third party suppliers. <br /> <br />(vii) Back-to-Back Letter of Credit : A back-to-back letter of credit can be used as an alternative to the transferable letter of credit. Rather than transferring the original letter of credit to the supplier, once the letter of credit is received by the exporter from the opening bank, that letter of credit is used as security to establish a second letter of credit drawn on the exporter in favour of his importer. Many banks are reluctant to issue back-to-back letters of credit due to the level of risk to which they are exposed, whereas a transferable credit will not expose them to higher risk than under the original credit. <br />Certificates <br />(i) Certificate of Origin (C/O): A document prepared by the original manufacturer and certified by a quasi-official authority - such as a Chamber of Commerce - stating the items’ country of origin. Most countries that require a C/O will accept a generic C/O as long as all of the required data elements are given. However, some countries, like Israel, have a special green C/O form that must be used. To take advantage of duty free provisions in a U.S. Free Trade Agreement, be sure to use the particular C/O that addresses the “rules of origin” criteria for each country. <br />(ii) Certificate of Insurance: This document indicates the type and amount of insurance in force on a particular shipment for loss or damage while in transit. It is sometimes referred to as Marine insurance, but may cover the entire voyage. <br />(iii) Certificate of Inspection: Some customers will require a “pre-shipment inspection” to satisfy their own requirements or local regulations, according to an industry, government, or carrier specification. Neutral organizations specialize in these types of certifications, whereby an inspector checks the goods in question prior to shipment. Sometimes an inspector can look at a sample, but other times inspection must occur when the goods are packaged to issue a certificate. <br />(iv) Certificate of Free Sale: This form may be required by the importing country to ensure that the goods offered for entry comply with domestic requirements for sale in the U.S. It is often required for agricultural, medicinal, or cosmetic products and can be issued by the VEDP or U.S. FDA. <br />(v) Certificate of Authentication (Apostille): An original document that has been notarized may require “authentication” by the Secretary of the Commonwealth. An Apostille certificate will be issued according to the country (language) of destination, confirming the status of the notary who has witnessed the original document. <br />(vi) Phytosanitary Certificate: Primarily a document required to import goods into the U.S., confirming compliance with phytosanitary safety regarding agricultural and animal health standards. <br />Special Documents <br />(i) Declaration of Dangerous Goods (DGD): A DGD declares the nature, quantity, and quantity of hazardous materials and reports the proper classification for each item. <br />(ii) ATA Carnet: A Carnet, sometimes referred to as a “merchandise passport”, is used for shipping goods to countries on a temporary, duty-free basis only. For a fee, this passport allows a company to ship needed materials to foreign trade shows or conduct repairs overseas. Within a year, the materials must return to the U.S. in order to avoid a hefty fine. <br />(iii) Mate Receipt:  A mate receipt is a receipt issued by the commanding office of the ship when the cargo is loaded on the ship, and contains information about the name of the vessel, berth, date of shipment, description of packages, marks and number, condition of the cargo at the time of receipt on board the ship etc.<br />(iv) Challan: A challan is a document handed to the transporter carrying the goods to the port of dispatch along with one copy of invoice in order to give a proof that the good carrying is for export purpose and valid. It contains all detail of goods and consignee etc. <br />Export documentation advise the federal agencies that oversee it, should include:<br />_ Correct valuation<br />_ Correct classification<br />_ Accurate of written statements and affirmations<br />_ Verified license requirements<br />_ Correct SED information<br />_ Accurate reporting of of “Denied Party” status<br />_ Legitimate claim of export readiness<br />IMPORT DOCUMENTATION<br />An essential feature of all import sales transactions is import documentation. There are various categories of documents required in international trade transactions. This section lists the basic documentation required for an import shipment. Not all the documents listed below are required for every import transaction; many of them are applicable to specific products or circumstances.<br />Instruction Documents<br />(i) Forwarder's instruction: Most freight forwarders have a printed forwarder's 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. <br />(ii) Shipping instruction: Where a shipping company has a computerised 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. If the exporter/freight forwarder prepares the bill of lading independently, then a shipping instruction must be attached. However, many independent shipping lines do not insist on the shipping instruction document. <br />(iii) 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. However, if selling on the basis of sight or usance draft under documentary collection, bank instructions must be generated to secure payment for the goods. Information supplied would include description of cargo, name of vessel, date of shipment etc; a detailed list of all documents submitted; payment method etc. <br />Transport Documents<br />(i) Air waybill: This transport document serves as: <br />documentary evidence of the conclusion of a contract of carriage<br />proof of receipt of the goods for shipment<br />an invoice for the freight<br />a certificate of insurance<br />guide to airline staff for the handling, dispatch and delivery of the consignment. <br />The document consists of three originals and nine copies and is only issued in a non-negotiable form. The first original is intended for the carrier and is signed by the shipper; the second original, the consignee's copy, is signed by the shipper and accompanies the goods; the third original is signed by the carrier and is handed to the shipper as a receipt for the goods after they have been accepted for carriage. The copies are dispatched by the airline authorities as required to on-carriers, airport authorities, etc or they serve as delivery receipts, invoices etc. The standard IATA air waybill applies to the carriage of goods over any distance and by as many airlines as are required to convey the goods to their final destination.<br /> (ii) Road waybill :There is no standard transport document for road haulage. Road hauliers usually design their own waybills which serve as evidence of a contract of carriage and as receipts for consignment of goods.<br />Payment Documents <br />(i) Commercial invoice (c/i): This should be virtually the same as the pro-forma invoice and should contain all the final and accurate details relating to a particular order. The import licence number and the l/c number should all be stated on the commercial invoice. Also the price and the delivery term should be consistent with the sales contract. The commercial invoice need not be signed unless a signature is specifically called for in the l/c. <br />(ii) Certificate of origin (c/o): if it is a required document <br />(iii) Packing declaration: The packing list indicates the number of packs involved, the contents of each pack and the individual weights, dimensions and HS numbers. This list enables the customer to check that the correct number of units has been received. Customs authorities can also easily identify a specific pack they wish to inspect. <br />Customs Procedure for Imports<br />All goods declared for consumption must be landed and entered within 7 days after the arrival of the importing ship or within such additional time as the Secretary for Customs may allow. Failure to do so will result in them being conveyed to a custom warehouse. If the goods are not properly entered and all duties and charges are not paid within 3 months after the goods have been placed in a customs warehouse, they may be sold at public auction. <br />Goods may be stored in bond, without payment of duties, in any bonded warehouse or in an unbonded warehouse approved by the Secretary for Customs. State warehouses are also available.<br />Irrespective of the mode of transport used when importing goods, the importer or his freight forwarder is required to present the following documents to the customs authorities:<br />(i) Bill of entry: Goods may not be imported into South Africa unless a bill of entry is submitted to and accepted by the customs authorities. An original of the form, a DA500 is required by Customs. <br />(ii) Customs Worksheet: This is a customs document which details rates of exchange and conversion of rates of the foreign currency amounts into South African Rands. <br />(iii) Commercial invoice: The commercial invoice must be presented to customs with the bill of entry as well as relevant transport documents to be stamped by customs. This enables customs to check the validity of the value of a consignment of goods as stated in the DA500. <br />(iv) Import permit (if necessary): This document is required for certain goods and commodities only in terms of import control regulations. If an import permit is required, the import permits number and the expiry date should appear on the DA500. <br />(v) Special import certificates or permits: Apart from those goods requiring an import permit, a number of products are subject to inspection and/or to the issue of special permits by certain authorities prior to the goods being imported. <br />(vi) Transport documents: i.e. the Bill of Lading (sea), the air waybill (air), the freight transit order (rail), and the road 'waybill'. <br />Benefits Of The Study<br />As far as benefit of the project is concerned, the project has fulfilled the desired need. The project has shown documents which will really help AVTEC in export- import. Some major befits of the project are:<br />
    • Documented Processes
    As now all the processes are properly documented, so the department can have a fully standardized procedure of doing the things. Now each employee knows there responsibility.<br />
    • Time Saving
    The main asset of today’s era is time. How the company is utilizing time of Human Resources, is a critical parameter. Because of unstructured processes earlier there used to be a lot of discrepancies. But now as mapped processes are there so a number of errors are supposed to get prevented, which will save time.<br />Limitations Of The Study<br />Some of the limitations of the study are as follows :<br />
    • Interaction with Process Owner/Participants
    The one of the major hurdle in the project was interaction with Process Owner/ Participants. Because all the mangers are having packed schedule and even the presence of them is not ensured. <br />
    • Getting data
    It was again a major problem. As there was not a single repository for the data, so it was a tough job to collect relevant data. It resulted in wastage of time as well.<br />Recommendation and Conclusion<br />An agile and changing business can succeed only if its workforce is equally dynamic, flexible and knowledgeable. It calls for continuous learning environment– a workforce that is given every opportunity to learn, grow and develop skills to drive the Company towards achieving its business goals. <br />Various programs are imparted that constitutes latest emerging technologies and management practices. At AVTEC they mix and match intensive training with equal thrust on job skills and behavioural development. Group therapies and seminars are organized to encourage professional rapport and keep employee morale running high. <br />At AVTEC learning is a continuous activity and their associates have a overabundance of learning programs to choose from. They have devised programs for all levels, be it fresh graduates or senior Executives. The needs are addressed as per the requirements of business and programs are designed and developed such that they will make their employees deliver value-for-money to their customers. <br />Participation in structured training programs & rotational assignments are encouraged to help employees develop a wider perspective and gain expertise in manifold functions.<br />The fully equipped Learning Centre is housed in a gracious old-world structure, surrounded by leafy trees, lawns, pathways and flower-beds. It also manages a well-stocked library of management books and journals.<br />References<br />
    • http://www.avtec.in
    • 29. www.exportvirginia.org
    • 30. http://www.citeman.com/4112-role-of-export-documentation
    • 31. http://www.outsourcing.org/
    • 32. Wikipedia
    • 33. http://www.mbendi.com/import/sa/import_documentation.htm#Doc2
    • 34. http://www.mbendi.com/import/sa/import_documentation.htm#Doc1
    • 35. Business magazines
    • 36. http://dictionary.reference.com
    • 37. scribd.com

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