1
Chapter-1
2
Executive Summary
As a partial fulfillment of PGDM all students are required to undergo training for
2months. With respe...
3
Introduction
In view of the changing business environment globally in India vis-à-vis global market, there is
increasing...
4
Need for study
It is not possible to locate the customer near the company or the company near the customer so
there come...
5
The following tests are used to analyze this data.
1. Factor Analysis
Factor analysis is a statistical method used to de...
6
Chapter-2
7
Sector Review
“Logistics is the process of anticipating customer needs and wants; acquiring the capital,
materials, peop...
8
207 million metric tonnes (MMT) to 295 MMT by 2020. The Indian textiles industry is expected
to triple from USD 78 billi...
9
road connectivity is essential for both, national integration as well socio-economic development.
Roads are the most com...
10
from as many 30 days to 1 or 2 days. These transit times have spurred the development of global
freight services. The w...
11
Storage Infrastructure Related Challenges
The setting up special economic zones (SEZs) has led to increased logistics a...
12
perhaps not an issue any more, the linkage between IT and domain requirement needs to be
resolved. Automation in proces...
13
Agency and Stevedoring needs of about 540 Vessel per year. It represents a cross section of
principals located globally...
14
Mile stones
1998 Best shipping agency - winner of Jackleens Press International Rajiv Gandhi Memorial
Shipping performa...
15
communications, training and refresher programmes.
To shape up as a futuristic company, sharpening the competitive edge...
16
Off-Shore support
Logistics
Steamer Agency
“Steamer agent” means any person who undertakes, either directly or indirect...
17
bentonite, dolomite stone chips, kenaf etc., and so far we have handled a quantity of more than
12 million MT cargoes.
...
18
regularly monitored by us to keep our knowledge levels latest to render most efficient and
authoritative services to ou...
19
75
Caterpiller Loaders
05
Chinese XCMG Loaders
05
HM 2021 Loaders
09
Excavators (Poclains)
05
Dozers
01
Trailers
05
For...
20
Chapter-3
21
Indian shipping scenario and Trade
India has 12 major ports and 185 minor/intermediate ports. Over 90 percent by volume...
22
Why is the Shipping Industry of India bleeding and what can government do?
The shipping industry of India is suffering ...
23
for acquiring tonnage, it is essential that the Govt. of India set up a fund to support the national
fleet, thereby ena...
24
overtaken the UAE. Explore the graphic above to see India's imports and exports by value and
year. The UK is the eighth...
25
Economic growth rate slowed to around 5.0% for the 2012–13 fiscal year compared with 6.2%
in the previous fiscal.[11]
I...
26
The Port has three harbours viz., outer harbour, inner harbour and the fishingharbour. The outer
harbour with a water s...
27
must consider scrapping cabotage fee to attract more business as it was done in case of
Vallarpadam, officials said.
De...
28
Development of EQ1 and EQ1A berths in the inner harbour with mechanized handling
facilities (DBFOT) at a targeted outpu...
29
Before the clearing and forwarding agents came into the picture the export-import rules and
procedures were very comple...
30
Custom brokers may be employed by or affiliated with freight forwarders, independent
businesses, or shipping lines, imp...
31
3. Providing assistance to locate the goods in case of shipment is misplaced or the cargo is
stranded at some port.
4. ...
32
(viii) Not attempt to influence the conduct of any officer of Customs in any matter pending
before the Custom House, St...
33
(If value more than 10 lakhs)
Examiner officer will check the goods physically in docks
Appraising officer will order “...
34
limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by
the buyer or takes t...
35
 Invoice: One of the common to both international and domestic transactions is the bill (invoice)
that the exporter se...
36
In the case of break bulk, after loading the cargo the chief officer issues the mate receipt, on the
basis of which cap...
37
A bill of lading drawn to the order of the shipper and endorsed by him either "in blank" or to a
named consignee. The p...
38
Issued by commanding officer of the ship that cargo has been loaded to the ship name of the
vessel, date of shipment, c...
39
Drawback shipping bill: it is used in case when refund of duties is allowed on the goods exported
generally it is print...
40
 Commercial invoice
 Bill of lading
 Insurance Policy/Certificate
 Bill of exchange
 GR Form (duplicate copy)
 Ba...
41
Treasure Challan:
This is document is used at the time of payment of the duty to the customs. It shows the amount
to be...
42
CFS Examining Officer (Verification)
Out of Charge
RMS Open order by Appraising officer
Registered the bill by Examinin...
43
Job order (All details of cargo like container no, package no etc)
Preparation of driver documents (like Form KK, Call ...
44
Billing by CFS (storage charges etc)
Job order (All details of cargo like container no, package no etc)
Preparation of ...
45
Billing by CFS (storage charges etc)
Job order (All details of cargo like container no, package no etc)
Preparation of ...
46
Assessment of bill and pay the duty
Out of charge by Appraising Officer
Get the print (Customs copy, Gate copy, Custodi...
47
The import procedure is quite different the export procedure. It starts with
 The importer asks for the three original...
48
For custom clearance purpose, the importer has to submit to the customs authority a form, which
is known as bill of ent...
49
Bill of entry for warehousing:
This type of bill of entry is used when importer wants to warehousing the goods in custo...
50
 Packing list
It is a detailed document provided by the exporter that spells out how many containers there
are in the ...
51
These forms are meant for applying for the removal of excisable goods for export by sea/post.
Form AR-4 is used for app...
52
CALCULATION OF DUTY IN IMPORT:
The duty has been calculated on the basis of assessable value and the product using
Harm...
53
(% on Ass.value+ BCD+
CVD+ central excise+
Customs Cess) F
Total value (A+B+C+D+E+F) 25.91
TOTAL CUSTOMS
DUTY= (Total v...
54
certificate of origin,
8 Getting B/L draft from the shipping line and
giving approval & preparing fright charges
cheque...
55
9 Docket closing & sending accounts to billing
purpose
1day
10 send export promotion copy to sender 1day
Total days app...
56
Chapter-4
57
Data interpretation and Analysis
1)
Services to be improved
Telephone answering -5, Invoicing- 7, Response Times-18
Oth...
58
Here frequency test is applied to know how the clients opined about the ESSKAY service when compared
to competitors.
Th...
59
3) Rotated Component Matrix
Rotated Component Matrix
a
Component
1 2
Esskay safe .929
Communication Satisfactory .825
P...
60
Bartlett‟s test is used to test the null hypothesis that the variables are not correlated.
Since the approximate chi Sq...
61
From the research it is found that service excellence is going to be the important factor followed by cost
optimization...
62
Chapter-5
63
Findings
From the research it is observed that when compared to competitors, 24% of the clients opined
the service leve...
64
Annexure:
Questioner for relation between ESSKAY Shipping and importer and exporter
Dear Client,
In order to evaluate o...
65
3) Your overall impression of our service? ___
1. Very good 2. Good 3. Average 4. Poor 5. Very poor
A Study on challeng...
66
Availability
of good
infrastructure
Completion
of service on
time
Supply chain
visibility
Customer
service
Role of
info...
67
Bibliography
1) CII Institute of logistics, 2011 “Backbone of an economy The Hindu Survey of Indian
Industry 2011”
2) P...
68
10) Ajaz Mohammed, 2010 Shipping Biz360
http://www.shippingbiz360.com/article/8/2010041920100419182356404bc053900/Grow
...
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Sip final do(1226312113)

  1. 1. 1 Chapter-1
  2. 2. 2 Executive Summary As a partial fulfillment of PGDM all students are required to undergo training for 2months. With respect to that this we have prepared this project report on “Service Analysis of Custom Clearance and Forwarding” undertaken at “ESSKAY Shipping., Visakhapatnam. Generally the customs clearance procedure is a complex and time taking process so the companies will outsource clearance activities to CHA or end to end logistic service provider to get facilitation. In this report the complete customs clearance procedures through sea for both exports and imports are presented in step by step procedure based on the type of clearance. We have selected this topic to know about the custom process. This report also tells about present scenario of Indian shipping and also tells about development in shipping in Visakhapatnam. Another objective is to know Documentation process done by CHA (Clearing House Agent) to clear the goods from CUSTOM. The research has been carried out on identification of the customer service levels of ESSKAY Shipping and factors influencing logistics growth in Visakhapatnam. This report also tells that as that how to calculate the Duty on Import and Export Goods. We also describe that which Documents are useful for CHA, Importer and Exporter. Major findings are, the customers expecting proactive and better communication from ESSKAY to be improved. The other key factors the customers identified are relationship, core competency and continuous communication with them. In another scenario the key factors that are effecting the growth of logistics in Visakhapatnam are poor infrastructure, complex taxation. The other important factors that identified are service excellence, cost optimization, reliability, transport, information privacy, high labour cost.
  3. 3. 3 Introduction In view of the changing business environment globally in India vis-à-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. In the development of any country‟s economy, exports play a crucial role. Export is the most important aspect of earning foreign exchange. A country should have to be equipped with natural resources, so that it can sell these resources into the international market. With the opening up of the Indian economy, the international trade has been increased significantly as there are less restriction on exports and imports. More and more multinationals are registering their entry into the Indian market. The imported products are now in well reach of Indian customers. The living standard has been improved. This results in substantial amount of growth in both exports and imports. 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 exporter‟s premises to the importer premises, which also includes the most important aspect of custom clearance. ESSKAY Shipping Agency is a leading name for custom clearance. Over the years they have operated smoothly with their wide spectrum of personalized services
  4. 4. 4 Need for study It is not possible to locate the customer near the company or the company near the customer so there comes the need of logistics to facilitate the movement of goods. Meanwhile in this process there is lot of complex steps involved as a service provider they should overcome all these challenges and should provide reliable services in stipulated time. Objectives The complete study of customs clearance procedure through sea. Identification of customer service level. Factors affecting logistics growth in Visakhapatnam based on the perception of employees. Methodology used The research is to study the customer satisfaction levels of ESSKAY Shipping group and to study the challenges facing by CHA‟s in Visakhapatnam. Based on the objectives, various clients of ESSKAY Shipping and employees in various CHA‟s in Visakhaptnam were targeted. As a part of this research various categories of employees like HR‟s, Executives, Managers, and Marketers etc were targeted. Sample size The sample size is 30 for customer satisfaction survey and sample size is 30 for challenges facing by CHA‟s. Interview method For the customer satisfaction levels research and for the challenges facing by CHA‟s the interview method is personal interview method. Collection of data The data is primary and collection is directly from source.
  5. 5. 5 The following tests are used to analyze this data. 1. Factor Analysis Factor analysis is a statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved, uncorrelated variables called factors. In other words, it is possible, for example, that variations in three or four observed variables mainly reflect the variations in fewer such unobserved variables. Factor analysis searches for such joint variations in response to unobserved latent variables. The observed variables are modeled as linear combinations of the potential factors, plus "error" terms. The information gained about the interdependencies between observed variables can be used later to reduce the set of variables in a dataset. 2. Percentage analysis In statistics the frequency of an event i is the number ni of times the event occurred in the experiment or the study. These frequencies are often graphically represented in histograms. We speak of absolute frequencies, when the counts ni themselves are given and of (relative) frequencies, when those are normalized by the total number of events: Taking the fi for all i and tabulating or plotting them leads to a frequency distribution. The relative frequency density of the occurrence of an event is the score divided by the total number of observations. 3. KAISER-MAYER-OLKIN – MEASURE OF SAMPLING ADEQUACY This index compares the magnitude of the observed correlation coefficients to the magnitude of the partial correlation coefficients. Small values indicate that the correlations between pairs of variables cannot be explained by other variables and that Factor Analysis will not be appropriate.
  6. 6. 6 Chapter-2
  7. 7. 7 Sector Review “Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies and information necessary to meet those needs and wants, optimizing the goods or services-producing network to fulfill customer requests and utilizing the network to fulfill customer requests in a timely manner.” The logistics sector in India has today become an area of priority. One prime reason for the same stems from the reason that years of high growth in the Indian economy have resulted in a significant rise in the volume of freight traffic moved. This large volume of traffic has provided for growth opportunities in all facets of logistics including transportation, warehousing, industrial packaging, materials handling, inventory handling, order fulfillment, freight forwarding, express cargo delivery, container services, shipping services etc. Indian logistics industry is expected to grow annually at the rate of 15 to 20%. A number of infrastructural projects involving warehouse and logistics parks are being undertaken are expected to be operational in the next 2-3 years. The growth path has also meant that increase demand is being placed on the sector to provide the solutions required for supporting future growth. Various estimates put the market size of the logistics sector in India to be between USD 90-125 billion. Given that the Indian economy has grown to over USD 1.73 trillion these estimates may already be well below the actual size of the industry. Sources also estimate that the industry employs over 45 million people and is growing at the rate of 15% with sub-sector growing at even 30- 40% per annum. Due to its current growth and its future growth potential the Indian logistics sector is viewed as one of the most attractive in the world. Also India‟s rapid growth and market size were the key factors for global players looking at opportunities in the region. BOOM SECTORS FOR INDIAN LOGISTICS The booming sectors which needs the hands of logistics in raising their values are metals,cement, agricultural, textiles, retail, coal. By 2030, India‟s crude steel production is expected to increase by a factor. The demand for cement in the country is expected to double by 2030.Agricultural output, although reduced in size as a percentage of the economy, is expected to increase from
  8. 8. 8 207 million metric tonnes (MMT) to 295 MMT by 2020. The Indian textiles industry is expected to triple from USD 78 billion currently to US$220 billion by 2020.The share of organized retail is expected to increase from 5 percent currently to 24 percent by 2020. India‟s industrial energy consumption is expected to double by 2020. In this scenario, the country will need to mine 2 billion tonnes of coal by 2030 and transport 75 percent of mined coal. Further, around 30 percent of total transported coal will have to be imported through ports. Overall export-import (EXIM) cargo at Indian ports is projected to increase to around 2,800 MMT by 2020 from approximately 890 MMT currently. Finished consumer goods, both imported and those produced in India, will have to be transported to the country‟s middle-class consumers, which, by 2030, are expected to increase fourfold from the current middle class population of 160 million. MODE OF LOGISTICS The mode of transportation is the key requirement of logistics which equally accounted for inbound and outbound operations. The distances involved are greater and the number of parties involved is typically more extensive. Because of the large expanses of water separating most regions of the world, the major models of global transport are ocean and air. The 4 types of logistic operations which operated in India physically are AIR LOGISTICS ROAD/MOTOR LOGISTICS MARINE LOGISTICS RAIL LOGISTICS CHALLENGES OF INDIAN LOGISTICS ROAD LOGISTICS In India road has become the predominant mode of transportation ofcargo. Road and highways serve as the arterial network of a nation. For a country as large and diverse as India, efficient
  9. 9. 9 road connectivity is essential for both, national integration as well socio-economic development. Roads are the most common mode of transportation in the country which reporting for about 86 % of passenger traffic and 73% of freight movement. Road transport comprises a major share of cargo movement as it is a competitive choice even at higher prices on account of flexibility, frequency and point-to-point delivery. Estimate of the modal movement of cargo highlights that in India nearly 61% of the cargo is moved by road, 30% by rail and rest by airway, pipelines and inland waterways. Of this, the length of district, rural and other roads is 4,455,511 km, followed by 163,898 km of State highways and only 70,934 km of National Highways .India‟s low average trucking speed of 30–40 km per hour as against the global average of 60–80 km per hour. Thus be attributed to the constrained and poor quality of the country‟s road network. However the completion of the National Highways Development Programme (NHDP), which is aimed at developing 50,000 km of National Highways by 2015 in seven phases with an investment of INR 3,000 billion and modernization of the road cargo transport community boom to the road logistics. RAILWAY LOGISTICS The Indian railways are still a monopolistic organization with a huge network and an integrated system. It is recognized that movement of long haul bulk traffic by road is less efficient than by rail. But road is still preferred over rail because there has been little investment in track infrastructure since independence. Rail freight tariffs are high this has resulted in a sharply rising trend in railway freight rate over the years compared to an almost stagnant passenger tariff rate. The result of this has been that Indian rail freight rates have already become one of the highest in the world, with freight rates in India being nearly 4 times that in United States. If truck overloading is also taken into account then rail freight rates work out to be higher than road freight in many instances. Less flexibility in carrying different types of products Special wagons are not easily available for carrying specialized products. AIR LOGISTICS The fast transit times that air transport provides have an impact on global distribution. The speed of airplanes combined with frequency of scheduling flights has reduced some global transit times
  10. 10. 10 from as many 30 days to 1 or 2 days. These transit times have spurred the development of global freight services. The world air carriers have usually focused on passenger services, and air cargo accounts for a small percentage of international freight by weight.Inadequate cargo handling and storage infrastructure at airports across India has been a longstanding challenge. Historically, India‟s airports have been primarily developed to cater to passenger traffic; thus, the requirement of air cargo traffic has not been given significant importance to date. Infrastructure related to effective cargo handling including satellite freight cities with multi-modal transport, cargo terminals, cold storage, automatic storage and retrieval systems, and the mechanized transportation of cargo needs attention not only at metro airports but across the country. Lack of terminal space and facilities for Express Airlines offered by some Airport Operators are reported to be key concerns that need to be addressed on priority. As there is no clear cut policy on the obligations of the airport operators to provide dedicated facilities for air express enterprises, the existing facilities provided them in some airports are reported to be inadequate to support any long term growth. Most terminals do not offer separate facilities, except cold roomsInvestment in cold chain infrastructure (trucks and warehouses) to handle agricultural, pharmaand other perishable commodities is inadequate.Cargo terminal operators need to have separate license- handling areas for transshipment handling. MARINE LOGISTICS India‟s ports serve as gateways to India‟s international trade and facilitate 90 percent by volume and 70 percent by value of India‟s external trade via maritime traffic. The country‟s long coastline spans across 7,500 kilometers with 13 major ports governed by the Centre and about 176 non-major ports, of which only 60 are operational, governed by respective state governments and union territories. Of its major and non-major ports combined, 139 are along the west coast, while the remaining 50 ports are along the east coast.It intends to encourage private investment in both major and non-major ports and bring port performance at par with international standards.
  11. 11. 11 Storage Infrastructure Related Challenges The setting up special economic zones (SEZs) has led to increased logistics activities around them. Several logistics parks have come up at locations like Mumbai, Kolkata, Chennai and Hyderabad because of their excellent port, rail, and road connectivity and are witnessing significant investment in infrastructure. Many of the large logistics players are in the process of setting up warehouses, container freight stations (CFS), inland container depots(ICD), logistics parks, distribution centers and other facilities to leverage the abundant opportunities. Increase in foreign trade is expected to further accelerate the demand for logistics services. In addition to the poor transportation infrastructure the storage infrastructure in India also needs significant improvement. Regulation of all warehouses is necessary for the standardization of warehouses and their adoption of good practices. A modern facility for safe storage, material handling, transport, and communication and adherence to structural standards as the state of ICD/CFS is poor. The ICD/CFS infrastructure available for EXIM trade is inadequate. The land requirement for setting up ICD/CFS at an appropriate place is difficult to come by as several hurdles have to be cleared in the consolidation of land. As a result many logistics companies with an interest in setting up ICD/CFS‟s eventually fail to do so, mostly on account of lack of land availability at an appropriate place. While it is difficult to set up a facility, at the same time, the existing facilities themselves are plagued with several issues: Many of the older facilities today are located within city boundaries restricting day movement of trucks. The approach roads to the facilities are poor making evacuation of cargo difficult. Most facilities have issues of inadequate parking, lack of available land for expansion, paving etc. Technology and Skills related challenges The logistics industry is also hampered by low rates of technology adoption and poor skill levels. On the technology front the industry now seems to be paying serious attention with use of RFID, vehicle tracking technologies, warehouse management systems etc. However while acceptance is
  12. 12. 12 perhaps not an issue any more, the linkage between IT and domain requirement needs to be resolved. Automation in processes is still only in its infancy. Further progress is dependent on a certain level of standardization which is made more difficult by the high level of fragmentation in the industry. In addition to technology-related issues the skill levels of in the logistics industry also require to be upgraded urgent. Also logistics industry is still not looked at as the industry of choice for young graduates thereby making hiring of quality professional manpower challenging. 3RD PARTY LOGISTICS 3RD Party Logistics imply that one company acts as an agent to lookafter the logistics aspect of another company or group of companies. 3RD party logistics entails a study of the customer‟s business, supply chain and distribution network, in order to formulate a comprehensive integrated logistics strategy, which will help render all supply-related services from a single window. India's 3PL sector represents 3 percent of the country's total logistics spend. The Indian 3PL market is expected to grow at around 20 percent per annum in the next 3-5 years .The practice in India reveals that warehousing and outbound transportation, custom clearing and forwarding are the most frequent outsourced activities. Activities such as packaging, fleet management and consolidation have started gaining attention for outsourcing. Company profile ESSKAY SHIPPING Esskay Shipping (P) Limited, made a humble beginning in India around October, 1994. It is a service sector Organization providing comprehensive shipping services of Shipping Agency, Stevedoring, Clearing and Forwarding, Contracts Handling, and Off-Shore support services at all Indian Ports. Aviation support services to off shore activities at KG basin off coast Kakinada are also provided from Rajahmundry. The Company is led by a management with decades of experience in the related service fields, known for it‟s professionalism and dedication to the job. The Company attends to the
  13. 13. 13 Agency and Stevedoring needs of about 540 Vessel per year. It represents a cross section of principals located globally and handles more than 5.4 MT of Cargoes annually for both Public and Private Sector Principals. In the last one and half decade ESSKAY handled a cumulative total of more than 63 million MT of various Cargoes. Esskay provides its customers with an unparalleled global resource delivered locally and tailored to each customer's individual needs. Its diversified customer base includes clients across the Bulk, Oil, cruise, Container and various General, Project Cargo sectors as well as serving naval, government and inter- governmental clients. Additionally, Esskay provides landside commercial and humanitarian logistics, transit, offshore support and other associated marine services. With the changing needs and demands of Principals, they have acquired the competitive technology and professional edge in all spheres of shipping to deliver goods cost effectively. Esskay‟s track record and its reputation as one of the five leading shipping agency companies at India‟s premier major port of Visakhapatnam lend credence to this.As Agents to Principals in Asia and Europe, Esskay handles nearly 500 vessels in a year at Visakhapatnam, Paradip, Haldia, Kakinada, Krishnapattinam, Chennai, Ennore, Karaikal Nagapattinam and Tuticorin, with two million tonnes of diverse cargo like containers, food grains including bagged rice, bulk fertilizers, coal, steel, timber, general, project and ODC traffic handled at Visakhapatnam alone. At Visakhapatnam, Esskay has won the trust of several of India‟s leading public and private sector undertakings including Steel Authority of India Ltd., Visakhapatnam Steel Plant (RINL), etc., Libra Shipping Services FZE, Dubai, Jayaswal Neco Industries Ltd., Agarwal Coal Corporation, Essar Steel Limited, West Asia Maritime Ltd, and Bhatia International Limited Indore, to name a few Principals, who nominate us as their agents to the ship owners.
  14. 14. 14 Mile stones 1998 Best shipping agency - winner of Jackleens Press International Rajiv Gandhi Memorial Shipping performance award in the year 1999 First shipping company in India to receive ISO 9002:1994 quality systems certification for comprehensive services of shipping agency, stevedoring, C&F and contracts handling services at the ports of Visakhapatnam, Kakinada and Chennai 2000 Handled highest varieties of cargoes at the port of the visakhapatnam as the stevedores 2001 Handled first ever container cargo from kakinada deep water port as handling agents to m/s American president lines India ltd 2001 Commenced operations as handling agents to the first Indian pvt. Sector fortune 500 company M/S RELIANCE INDUSTRIES LTD (OIL AND GAS) DIVISION, RENDERING THE SERVICES AS VESSEL AGENTS, CUSTOM Clearing and forwarding agents, stevedores, materials handling at the ports of Kakinada, Visakhapatnam and aviation support services at Rajahmundry, A.P. 2002 First again in receiving the ISO-9001:2000 quality Management Systems certification for comprehensive shipping services by the DNV 2003 The President of the Company has been appointed as Member of the Visakhapatnam Dock Labour Board, as a representative of the Indian National Ship Owners Association, to represent the Employers of dock workers and shipping companies in the Board of Visakhapatnam Dock Labour Board. 2004 The Company has emerged as the handlers of highest quantity of diversified cargoes at the port of Visakhapatnam during the fiscal 2003-04 2005 The company had a repeated his performance for the second time as an handlers of highest quantity of diversified cargoes, Aggregating to 4.86 MT at the port of Visakhapatnam during the fiscal 2004-05 2006 For the third consecutive year, Esskay has been the leading stevedore in the port of Visakhapatnam by handling 5.24 MT of diversified cargoes for the year 2005-06 Objectives: To provide prompt response, and timely execution of services to all our customers. To interact with customers & obtain feed backs to understand the stated and implied needs of all our customers in order to improve the service scope accordingly. To periodically review the process efficiency in order to revise, amend, alter the same to meet the business goals of the Organisation and existing trends. To improve the competency of our personnel on the strength of internal
  15. 15. 15 communications, training and refresher programmes. To shape up as a futuristic company, sharpening the competitive edge, reaching out to the customers world wide with the reputation of being a quality conscious company caring for the total customer satisfaction. MISSION: Esskay Shipping mission is to provide prompt response and timely execution of services to all our customers in the most efficient manner ensuring shipping solutions in the industry trend. To interact with customers & obtain feed backs to understand the stated and implied needs of all our customers to improve the service scope accordingly.To review the process efficiency periodically in order to revise, amend and alter the same to meet the business goals of the Organisation and existing trends. VISION: Esskay Shipping envisions itself as a truly world-class shipping Agency and forwarding services company known for quality and it endeavors to become a bench mark in its core areas of expertise worldwide. SERVICES Shipping Agency Stevedoring Clearing and Forwarding Contracts Handling
  16. 16. 16 Off-Shore support Logistics Steamer Agency “Steamer agent” means any person who undertakes, either directly or indirectly- (i) To perform any service in connection with the ship‟s husbandry or dispatch including the rendering of administrative work related thereto; or (ii) To book, advertise or canvass for cargo for or on behalf of a shipping line; or (iii) To provide container feeder services for or on behalf of a shipping line. Stevedoring/Contracts Handling With a team of personnel together accounting for a cumulative experience of more than 500 man years, they are a force to reckon with in the field of stevedoring. Their range of operations cover different kind of import and export cargoes and a random list include steel cargoes, dry bulks; new concepts like over side barge operations from capsize vessels, iron ore fines, coking coal imports, timber logs, containers and food grains. They facilitate time bound stevedoring operations with trained personnel who take care of the complicated operations. Experienced supervisory staff and front line executives man the docks all round when the stevedoring activities are taking place, ably assisted by machinery and gear, all planned to work towards timely handling of cargoes. On behalf of reputed organization like M/s Steel Authority of India Ltd., M/s MMTC Ltd., M/s Essar Steel Ltd., M/s Jayaswals Neco Ltd.., M/s Trimex Industries Ltd., M/s Hind Lever Chemicals Ltd., M/s Myanma Five Star Line, Myanmar, M/s APL Ltd., M/s Maersk Ltd. They regularly handle a range of cargoes, like coking coal, LAM coke, Pet coke, Fertilizers, thermal coal, food grains, steel cargoes, containers, timber logs, CLO, Iron Ore pellets, feldspar,
  17. 17. 17 bentonite, dolomite stone chips, kenaf etc., and so far we have handled a quantity of more than 12 million MT cargoes. Be it a over side barge operation at the General cum bulk cargo berth at Visakhapatnam, or timber logs handling in the inner harbor, or coking coal lightering and complete discharge in record time, or handling of containers including stuffing and de-stuffing matching the schedules of liner vessels, or anchorage operation of food grains export at the Kakinada Port, whatever the operation may be, they have left an indelible impression of operational efficiency and imprints of quality and commitment towards work, and titans of the industry both in public and private sector or our principals over a period of years. We handle regularly Coking coal for M/s Steel Authority of India Ltd, and Visakhapatnam Steel Plant LAM Coke for M/s Jayaswals Neco Ltd Iron Ore Fines from M/s Essar Steels Ltd Wheat and rice for M/s MMTC Ltd., Containers for M/s Maersk India Ltd Feldspar, Rockphosphate for M/s Trimex Industries Ltd Fertilizers for Pragathi fertilizes, Priyanka fertilizers , M/s Hind Lever Chemicals Ltd Timber logs for M/s Amma Shipping Ltd, Steel products for M/s Steel Authority of India Ltd., Off shore equipment and material for M/s Reliance Industries Ltd C&F Agents Documentation skills of the company are well proved and demonstrated. So far around 12,000 crores worth cargo documents have been passed by them, keeping a close rapport with the statutory authorities like Customs, and our documentation unit is manned by personnel with more 25 years of job experience, and all the latest duty payable guidelines, customs circulars are
  18. 18. 18 regularly monitored by us to keep our knowledge levels latest to render most efficient and authoritative services to our principals. Off Shore Support: As they progressed on the path of committed performance they have added another dimension to their versatile range of services. When in the KG Basin the oil exploration works have been commenced, bringing in Indian Majors like M/s Reliance Industries Ltd, on the strength of their service potential and depth of expertise, and grass root contacts at Kakinada, they have been the automatic choice against tough contenders, to provide the off shore support services. The company‟s diversification of activities took a new turn, and a fresh leaf has turned when the company has been chosen by the titan of the Indian private Sector M/s Reliance Industries Ltd, and has been assigned the jobs of vessel agency, customs C&F, stevedoring, materials handling at the Ports of Kakinada and Visakhapatnam, and aviation support services at Rajahmundry, Andhra Pradesh. LIST OF EQUIPMENT Quantity DESCRIPTION OF THE VEHICLE Ashok Leyland Trucks Logistics As the stevedores and contracts handling professionals they regularly move huge volumes of cargoes into and from the port to storage sheds spread across the port vicinity and vice versa. To enable this time bound shore clearance of cargoes or prompt cargo feeding to vessels at berth, we have a highly focused team of logistics experts who assess the need of the day and its typical nature, before deploying the adequate number of cargo tippers, handling equipment etc. so that as per the plan the operation is completed
  19. 19. 19 75 Caterpiller Loaders 05 Chinese XCMG Loaders 05 HM 2021 Loaders 09 Excavators (Poclains) 05 Dozers 01 Trailers 05 Forklifts 06 Water Tankers 05
  20. 20. 20 Chapter-3
  21. 21. 21 Indian shipping scenario and Trade India has 12 major ports and 185 minor/intermediate ports. Over 90 percent by volume and 70 percent by value of India‟s 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 18th in the world, in terms of fleet size. Another silver lining is the average age of the India‟s merchant shipping fleet is only 12.7 years as compared to the international average of 17 years .but, India‟s share, sadly, constitutes only 1.45% of the world‟s cargo carrying capacity. Shipping is a global industry and its prospects are closely tied with the global economy. Any fluctuation in the global economy has a direct and indirect impact on the shipping industry. The industry is cyclical in nature and is today struggling to navigate through the changing economic context. Supply pressure is making matters worse. Indian shipping industry is also not unaffected by the changing macro -economic factors. India has one of the largest fleet and is ranked 16th in the world. The total fleet size of the Indian shipping industry is 10 million GT. Still it forms a marginal share of only 1% of the global fleet. On the other hand, India‟s seaborne trade has been growing at a rate of over 12% in the last 10 years. Consequently, the share of India‟s vessels in carrying country‟s cargo has been declining and is currently only around 8%. Above statistics raises serious concerns about the problems faced by the Indian shipping industry. One of the main reasons for the declining share of India‟s fleet is the tardy growth in its size. The Indian shipping tonnage needs to grow at a much faster pace and match the growth of country‟s seaborne trade. Government of India has envisaged an ambitious plan to grow the Indian shipping fleet from 10 million GT to 40 million GT by the year 2020. Various initiatives are being taken by the government to address the challenges and promote Indian shipping.
  22. 22. 22 Why is the Shipping Industry of India bleeding and what can government do? The shipping industry of India is suffering severely from lack of government support. There are no policies to back the industry. More than 60% of country‟s container trade is carried out through the JNPT terminal which causes congestion and frequent break down in port operations. Due to government apathy not many private new players are attracted to this industry thereby making the Indian exports more expensive as the entire strain in mostly on fewer existing ports. There are several cancellations of orders due to delays and high expenses. Moreover the local taxes on Indian shipping companies makes the exports more expensive as compared to foreign companies. Under the provision rules in the service tax, if a foreign shipping company is moving an Indian cargo between Indian cities, they don‟t pay the service tax because their place of residence is outside India. But if an Indian shipping company was ferrying this cargo, then it will have to pay the 12.5 per cent service tax this adds to its cost and makes it uncompetitive. Moreover the Indian government also imposes duties on coastal vessels making them less attractive and cost efficient as compared to road transport of India which receives some subsidies in fuel expenses as diesel is subsidised in our country. There is also an imposition of excise duty at 2% if no CENVAT credit is taken of taxes and duties paid on inputs and input services; it is 6% in other cases. Shipping, being capital intensive, requires huge funds for financing ship acquisitions depending upon the market conditions. Funds are mobilized largely through external commercial borrowings and internal generations. In the current depressed shipping scenario, it is uncertain as to how the shipping companies will be able to source the equity and debt requirement for acquisition of ships. As the shipping industry is in substantial need of funds
  23. 23. 23 for acquiring tonnage, it is essential that the Govt. of India set up a fund to support the national fleet, thereby enabling access to funds. 3.1 INDIA’S TRADE: The economy of India is the tenth-largest in the world by nominal GDP and the third- largest by purchasing power parity (PPP).[1] The country is one of the G-20 major economies and a member of BRICS. On a per-capita-income basis, India ranked 141st by nominal GDP and 130th by GDP (PPP) in 2012, according to the IMF.[10] India is the 19th- largest exporter and the 10th-largest importer in the world. India's total merchandise trade has increased over three-fold from $252bn in 2006 to $794 in 2012 - both exports and imports have trebled during this period according to the Export- Import Bank of India (EXIM bank). The bank is the premier export finance institution of the country and was set up for the purpose of financing, facilitating, and promoting foreign trade of India. i. INDAIN EXPORTS: A publication on India's trade and investment by EXIM bank highlights the trend in exports moving towards southern countries, particularly in the Asia and Africa regions. Asia is a key destination of India's exports - in 2001-02 Asia's share stood at 40.2% but in 2011-12 it grew to 51.6% Europe, however has seen a decline in its share, down to 19% in 2011-12 from 24.8% in 2001-02. India's key exports in 2012 were petroleum products which generated $56bn; followed by gems and jewellery with $47bn. Pharma products, transport equipment, machinery and readymade garments are also big exports for India. The 2012 data shows that the United Arab Emirates (UAE) was India's biggest export market, closely followed by the USA. The latest data available from the Indian Government's Ministry of Commerce and Industry covering April-September 2012 shows the US to have slightly
  24. 24. 24 overtaken the UAE. Explore the graphic above to see India's imports and exports by value and year. The UK is the eighth biggest export market for India and held 2.9% of the market share in April-September 2012. ii. INDIAN IMPORTS: Crude petroleum is India's biggest import with $155bn spent on it in 2012. Imports of gold and silver amounted to $62bn and electronic goods and pearls and precious stones are also top import items for the country. India's top import source is China followed by the UAE, Switzerland and Saudi Arabia. The UK came in at 21st place in 2011-12 with India importing a total of $7.7bn. In the six months recorded so far for 2012-13, the UK has dropped a place and has a 1.4% share of the India's import sources
  25. 25. 25 Economic growth rate slowed to around 5.0% for the 2012–13 fiscal year compared with 6.2% in the previous fiscal.[11] It is to be noted that India's GDP grew by an astounding 9.3% in 2010–11. Thus, the growth rate has nearly halved in just three years. GDP growth went up marginally to 4.8% during the quarter through March 2013, from about 4.7% in the previous quarter. The government has forecasted a growth of 6.1%-6.7% for the year 2013-14, whilst the RBI expects the same to be at 5.7%. VISAKHAPATNAM PORT: Port of Visakhapatnam is one of the leading major ports of India and is located on the east coast midway between Kolkata and Chennai.
  26. 26. 26 The Port has three harbours viz., outer harbour, inner harbour and the fishingharbour. The outer harbour with a water spread of 200 hectares has 6 berths and the inner harbour with a water spread of 100 hectares has 18 berths. Bestowed with natural deep water basins, the outer harbour is capable ofaccommodating 150,000 DWT vessels and draft upto 17 meters. The innerharbour berths are PANAMAX compatible and are capable of accommodating vessels upto 230 meters LOA and draft upto 11 meters. The Port is catering to the key industries like the petroleum, steel, power and fertilizers besides other manufacturing industries and playing catalyst role for the agricultural and industrial development of its hinterland spreading from the south to the north. During the FY 2010-11 the Port handled a record quantity of 68.01 million tonnes of cargo. The Port is equipped with an array of cargo transfer systems. The mechanical ore handling plant consists of fully mechanized receiving and shipping systems designed to loads iron ore directly into the vessels throughconveyors. The Port is operating its own Railway network of about 200 Kms.,which is linked to the Trunk Railways. The Port is well connected to the NH-5 by a 4 lane connectivity road. The Port has Electric Wharf Cranes of capacities ranging from 10 to 20 T and 2 nos., Harbour Mobile Cranes of 140 tonne capacity. Mechanical loading facilities exist for handling Alumina and fertilisers. The Off Shore Tanker Terminal in the Outer harbour discharges crude oil directly to the tanks of the Refinery. The Container terminal operated by Visakha Container Terminal Private Ltd., is the deepest container terminal among major ports and equipped with modern container handling equipments. The BOT operator, Vizag Sea Port Pvt., Ltd., is operating two berths (EQ-8&9) in the inner harbour. These berths are equipped with 3 nos., Harbour Mobile Cranes which can handle cargo at 18,000 tonnes per day per crane. The Ministry of Shipping has identified Visakhapatnam Port a gateway as well as most preferred port of South East Asia and plans to develop it as a transshipment hub with world class facilities with an investment of Rs.13,940 crore.This was disclosed by Union Minister of State for Shipping Milind Deora.Visakhapatnam Port with 200 km rail network within its facility is the largest coal and iron ore handling port in the country.It is expected to handle 83 million tonne by 2016-17 and 103 million tonne by 2019-20. The port management will mobilize Rs 7100 crore through PPP mode in three phases for development.The port has plans to introduce mechanised facilities for handling coal and iron ore. With deepest container terminal facility the port can be developed as a hub.The centre also plans to develop a satellite port near an ancient town Bheemunipatnam to decongest traffic.The centre
  27. 27. 27 must consider scrapping cabotage fee to attract more business as it was done in case of Vallarpadam, officials said. Developments in port: The Port has ambitious plans for modernization with the vision to become the most preferred Port in South Asian Region. Considerable investments through PPP mode are on the anvil envisaging deepening of channels and berths, construction of new berths, installation of state of art mechanized handling facilities and other logistics. The major thrust areas of development include deepening of channels, construction of berths, modernization of cargo handling equipments/systems, connectivity and other logistics. Details of major developments envisaged by the Port which are in different stages of implementation are given below. These developments would enhance the capacity to 110 million tonnes by 2014-15. Projects in Progress: • Phase-II deepening of inner harbour entrance channel and turning circle to cater to vessels of 12.5 meters draft. • Procurement of 2 nos., 50 T Bollard pull shipping tugs. • Strengthening of 5 berths(EQ5, EQ6, WQ1, WQ2 and WQ3) in the inner harbour to cater to vessels of 12.5 meters draft. • Extension of return end of WQ-1 and construction of WQ-8 return end • Development of SBM facility at outer harbour for import of crude oil as JV with HPCL Projects in pipeline: Strengthening and mechanization of the General-cum-bulk cargo berth(GCB) in the outer harbour to accommodate 2 lakh DWT coal vessels(DBFOT). The targeteted output at the facility for Panamax and Cape size vessels is 42,000 TPD and 70,000 TPD respectively. Mechanised handling facilities for fertilizer at EQ7 berth(DBFOT) at a targeted output of 28,000TPD with storage sheds, silos and bagging plant.
  28. 28. 28 Development of EQ1 and EQ1A berths in the inner harbour with mechanized handling facilities (DBFOT) at a targeted output of 15,000TPD and 27,000TPD for Handymax and Panamax vessels respectively for steam coal and thermal coal Installation of mechanized iron ore handling facilities at WQ1 berth in the inner harbour (DBFOT) at a targeted output of 25,000TPD and 43,200TPD for Handymax and Panamax vessels respectively Development of EQ10 berth in the inner harbour (DBFOT) for handling liquid cargo and chemicals including Bio-diesel at a targeted handling rate of 7,200TPD Development of WQ6 berth in the inner harbour for multi commodities (DBFOT) such as Calcined PET Coke, Metallurgical coke, Steel, Granite etc. Development of WQ7 and WQ8 berths in the inner harbour (DBFOT) for handling alumina and other dry bulk Study of customs clearance procedures through sea DEFINITION Clearing and forwarding agents are authorised by the Government of India to not only help the importers and the exporters but also to bring it to the notice of the custom officials any irregularities in the customs rules and regulations optated by the customs, importer and exporter. The clearing agent should be converse with customs act rules and regulations.
  29. 29. 29 Before the clearing and forwarding agents came into the picture the export-import rules and procedures were very complex, time-consuming in short difficult to understand so as to make it easy the commission rate of customs have issued clearing and forwarding license to the people who have proved themselves convergent with customs rules and regulations. The clearing and forwarding agents are also known by different names such as custom house agent or freight forwarders or shipping agents. The clearing & forwarding agents are the Companies, which have been authorised and issued License by Customs and Airport authority of India to get the goods inspected at the customs warehouse. Where entry of common man or even the exporter is prohibited (exporter can always go to get his goods inspected, but cannot communicate directly with a custom inspector) These shipping and clearing agents only prepare the export documents for the client‟s shipments. As this area is highly sensitive in nature, due to all the stuff meant for export is stocked here and because of risk of goods being stolen, only authorised people like employees of these licensed agencies are allowed to interact with custom officials to get the goods inspected, after which they handover the goods to air/shipping lines for them to airlift the cargo and send it to its destination. Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. In that customs clearance plays a vital role. Customs broking or Customs brokerage is a profession that involves the "clearing" of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities and importers and exporters.
  30. 30. 30 Custom brokers may be employed by or affiliated with freight forwarders, independent businesses, or shipping lines, importers, exporters, trade authorities, and customs brokerage firms. Customs clearance process is slightly different for Exporting and Importing. ESSENTIAL SERVICES PROVIDED BY C&F AGENTS The following are some of the services provided by all kinds of C&F agents: Providing warehousing facility to the exporters for warehousing the goods before their transportation to the docks/port. Transportation of goods to the docks and arrangements of warehousing at the port. Arrangement of containers required for shipment of the goods. Booking of shipping space or air freighting. Advising the exporter as regards the relative cost of sending the goods by different airlines/shipping lines as well as selection of the route of the flight/ sea route. Making arrangements for shipment of goods to be on board the ship/plane. Arranging for marine/cargo insurance of the shipment. Preparation and processing of shipping documents required for custom clearance. Arranging for various endorsements/issue of certificates from various agencies. Providing assistance in the packing of the shipment. Making arrangements for local transportation of goods to the port/docks. Forwarding the documents to the exporter for their negotiation with the bank. OPTIONAL SERVICES PROVIDED BY THE C&F AGENTS:- The following services are provided by the leading c&f agents at the specific request of the exporter: 1. Providing warehousing facilities abroad at least in some of the major international markets in case the importer refuses to take the delivery of the goods for any reason. 2. Providing assistance to bring the goods back to India if the situation so demands.
  31. 31. 31 3. Providing assistance to locate the goods in case of shipment is misplaced or the cargo is stranded at some port. 4. Making arrangements for assessment of damage to the goods to title claim with the insurance company. RESPONSIBILITIES OF CLEARING AND FORWARDING AGENTS (i) Furnish, whenever required by the Licensing Authority, an authorization from each of the firms or persons by whom he is employed to act as their Customs Agent; (ii) Not represent a client before an Officer of Customs in any matter which the licensee dealt as an officer or employee of the Department or of the facts of which he gained knowledge while in Government service. (iii) Not appear, plead or act in any proceedings under Sections 179, 193, 194 or 196 of the Customs Act‟1969, for and on behalf of any person other than the person for whom he acted as licensee in relation to matters out of which the proceedings have arisen; (iv) Where he knows that a client has not complied with the law or has made any error in or omission from any documents which the law requires such client to execute, advise his client promptly of the fact of such non-compliance, error or omission and immediately bring the matter to the notice of the appropriate officer of Customs in writing. (V) Exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any Customs business; (vi) Not withhold information relating to any Customs business from a client who is entitled to such information; (vii) Promptly pay over to Government when due, all sums received for payment of any duty, tax or other debt or obligation owing to the Government and promptly account to his clients any money received for them from Government, or received from them in excess of Governmental, or the other charges properly payable in respect of the clients Customs business;
  32. 32. 32 (viii) Not attempt to influence the conduct of any officer of Customs in any matter pending before the Custom House, Station, Port or Airport by the use of threat, false accusation, duress or the offer of any special inducement or promise of advantage, or of any gift or favor or other thing of value; (ix) Not procure or attempt to procure, directly or indirectly, information from Customs records or other Government sources of any kind to which access is not granted by proper authority; (x) Not employ in any capacity, with power of attorney, by delegation of otherwise, for the promotion of or in connection with the work relating the license :- i. any person whose application for license or Customs permit has been refused; or ii. any person whose license or permit has been revoked or whose conduct as a partner, manager, director, officer or servant has been the cause of the revocation of the license or permit; (xi) Not lend money to any officer or employee in the service of the Custom House or Customs- station or become surety for the repayment of money borrowed by any such officer or employee; and (xii) Intimate to the Licensing Authority any change of address immediately after such change is affected. Export procedure Feeding details of goods in EDI Checklist of shipping bill will be obtained ` Shipping bill no will be assessed by Appraising Officer Assistant Commissioner
  33. 33. 33 (If value more than 10 lakhs) Examiner officer will check the goods physically in docks Appraising officer will order “Let Export” Preventive officer will sign to confirm exports Shipping Bill and all other relevant documents obtained Out from CFS The different steps involved in export department are as follows: Step 1: Exporter sends the following documents to ESSKAY Shipping 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
  34. 34. 34 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. Types of letter of credit Clean letter of credit: Negotiated against a clean draft without any documents Documentary letter of credit: Documents specified in the letter of credit must accompany the draft Revocable letter of credit: It can be cancelled or revoked any time without the consent or notice to the beneficiary Irrevocable letter of credit: cannot be amended, revoked or modified by the issuing bank without the express consent of all parties concerned Thus the issuing bank has definite undertaking to honor drafts drawn under that credit, provided that the conditions in letter of credit are met. Confirmed letter of credit: Issuing bank sends letter of credit to the bank located in beneficiary‟s country with a request to add confirmation to the credit Confirmation involves legal undertaking on the part of the confirming bank that it will duly honor payment or acceptance on presentation of documents Back to back letter of credit: SECONDARY CREDIT: In favor of a domestic supplier. The original credit backs the secondary credit and facilitates the purchase of goods from a local supplier by the original beneficiary of L/C Red clause letter of credit: Allows exporter to withdraw a predetermined amount so that he is able to pay his suppliers and purchase relevant letter of credit.  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.
  35. 35. 35  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, ESSKAY preparing Annexure – A, Annexure – C, Annexure – D and SDF ( Statutory Declaration Form ) along with the invoice. Step 3: Send these annexure to the custom house. The custom prepares the shipping bill in four copies on the basis of these annexure. Step 4: Customs 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: Customs will examine the cargo by using the sample. (Customs will examine the cargo only after the duty is paid) in case of more than one container in one B/L than Asst. Commissioner 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:
  36. 36. 36 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.  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 company‟s turnover. Bill of Lading, On Board: A bill of lading acknowledging that the relative goods have been received on board a specified vessel. Bill of Lading, Order: It is a negotiable bill of lading. There are two types A bill drawn to the order of a foreign consignee, enabling him to endorse the bill to a third party.
  37. 37. 37 A bill of lading drawn to the order of the shipper and endorsed by him either "in blank" or to a named consignee. The purpose of the latter bill is to protect the shipper against the buyer's obtaining the merchandise before he has paid or accepted the relative draft. To get B/L, software (Visual Samudra) is used. Various details are entered in the software such as Vessel Name & Number, Consignee, Shipper, Notify Address, Quantity, No. of Packages, Packing List (Details of Material), Container No. etc. The invoice is given to the company by the shipper. And a shipping bill is generated in the customs clearance on the basis of the invoice and packing list. The container is stuffed and the required information is received from the port office, such as the container number, and the Vessel name and No. The details are entered in the Software (Visual Samudra) also each B/L is given a manual entry if not computerized. Than the details are entered in the software and the final print of the B/L is taken. In B/L there are two types. Receipt for shipment: If the shipper wants a receipt the shipper can get the receipt when the container is ready to load on a vessel. HBL – House Bill of Lading HBL – House Bill of lading is made when the information is received for the port office. If the shipper wants a bill before the loading of vessel on board, than HBL is provided. HBL is also sent to shipper for approval. MBL – Master Bill of Lading MBL- Master Bill of lading is the final copy of Bill. It is given to the shipper it contains all the details of everything. The Bill is used to charge the fees from the shipper. It is only given after the container is loaded on to the vessel for sail. Now if the freight charges are paid by the exporter then bill of lading is stamped as freight prepaid & if the freight charges are to be paid by importer then bill of lading is stamped as freight to pay.  Copy of Mate Receipt:
  38. 38. 38 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 mate‟s 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, whichever 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.  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. Then, 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. Following three types of shipping bill with custom authorities Dutiable shipping bill: it is used in case of goods, which attract export duty may or may not be entitled to duty drawback. It is printed on yellow paper. Free shipping bill: it is used in case of goods which neither attract any export duty nor entitled for duty drawback. It is printed on simple white paper.
  39. 39. 39 Drawback shipping bill: it is used in case when refund of duties is allowed on the goods exported generally it is printed on green paper, but when the drawback claim is paid to a bank, then it is printed on yellow paper.  Certificate of origin. A document provided by the exporter‟s 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:-  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
  40. 40. 40  Commercial invoice  Bill of lading  Insurance Policy/Certificate  Bill of exchange  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. Short shipment: In case of short shipment customs sends the short shipment notice Annexure „C‟ to the RBI (Reserve Bank of India) along with G R form. Short shipment notice is in five copies:  Original – Customs  Second copy – Agent  Third copy – Exporter  One copy – Wharf age refund  One copy is for CESS
  41. 41. 41 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. Import procedure overview Import Procedure through Sea B/E Appraising Officer Assistant Commissioner (If value more than 10 lakhs) IGM filed by steamer agent Cross check by Customs Duty payments in bank CFS (Container Freight Station) CFS Appraising Officer (Invoice assessment)
  42. 42. 42 CFS Examining Officer (Verification) Out of Charge RMS Open order by Appraising officer Registered the bill by Examining officer Out of charge by Appraising officer Get the print (Customs copy, Gate copy, Custodian) Endorsement by E.O & A.O on the print Passed out sign by Preventive officer Billing by CFS (storage charges etc)
  43. 43. 43 Job order (All details of cargo like container no, package no etc) Preparation of driver documents (like Form KK, Call sheet etc required for driver) Out of CFS Open Bill Open order by Appraising officer Registered the bill by Examining officer Examining officer examines the cargo and gets the report Out of charge by Appraising officer Get the print (Customs copy, Gate copy, Custodian) Endorsement by E.O & A.O on the print Passed out sign by Preventive officer
  44. 44. 44 Billing by CFS (storage charges etc) Job order (All details of cargo like container no, package no etc) Preparation of driver documents (like Form KK, Call sheet etc required for driver) Out of CFS Green Channel Open order by Appraising officer Registered the bill by Examining officer Examining officer examines the container no & seal no and gets the report Out of charge by Appraising officer Get the print (Customs copy, Gate copy, Custodian) Endorsement by E.O & A.O on the print Passed out sign by Preventive officer
  45. 45. 45 Billing by CFS (storage charges etc) Job order (All details of cargo like container no, package no etc) Preparation of driver documents (like Form KK, Call sheet etc required for driver) Out of CFS First Check procedure Open order by Appraising officer Registration of bill by Examining officer Examining officer marking to Appraising officer Inspection by Examining officer Prepares a report Appraising officer assess the value and do marking to the assessment group
  46. 46. 46 Assessment of bill and pay the duty Out of charge by Appraising Officer Get the print (Customs copy, Gate copy, Custodian) Endorsement by E.O & A.O on the print Passed out sign by Preventive officer Billing by CFS (storage charges etc) Job order (All details of cargo like container no, package no etc) Preparation of driver documents (like Form KK, Call sheet etc required for driver) Out of CFS
  47. 47. 47 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.  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.  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.
  48. 48. 48 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: 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. Types of bill of Entry:- 1. Bill of entry for home consumption 2. Bill of entry for warehousing 3. Bill of entry for Ex-bond clearance for home consumption Bill of entry for home consumption: This type of bill of entry is used when importer wants to take the delivery of goods on payment of custom duty.
  49. 49. 49 Bill of entry for warehousing: This type of bill of entry is used when importer wants to warehousing the goods in custom bonded warehouse. Bill of for ex-bond clearance for home consumption: This type of bill of entry is used for clearing the goods from custom bonded warehouse against warehouse bill of entry on the payment of custom duties. Another important document that is used in import is bill of lading. It plays an important role both for the exporter and importer. Documents to be used in import: 1. Bill of lading 2. Invoice 3. Certificate of origin 4. Bond warehousing bond 5. Wharf age 6. Bill of entry 7. Packing list 8. NOC (No Objection Certificate) 9. Delivery order 10. Treasury challan 11. Gate pass 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.
  50. 50. 50  Packing list It 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 A document provided by the exporter‟s 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 country‟s 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
  51. 51. 51 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 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
  52. 52. 52 CALCULATION OF DUTY IN IMPORT: The duty has been calculated on the basis of assessable value and the product using Harmonised coding system, to which section and which chapter it belongs to. Assessable value in rupees = CIF (Cost Insurance Freight) value + landing charges (1% of CIF value and H.S.S. (High Seas Sale) CIF+2%+1)If the case is of FOB (Free on Board) then freight and insurance is to be added. If insurance is not there than 1.125% of the C & F (Cost and Freight) value is taken as insurance charges. Duty calculation is done by CHA as per the given rate of duty for a particular product. For example: Let us take a ball point pen, Its HS code is 960810. Let us take the cost of pen as Rs 20/- CIF value 20.00 Assessable value (CIF value +1% Landing charges) A 20.20 Basic customs duty (% on Ass.value) B 10% 2.02 CVD: additional duty (% on (Ass.value+ BCD) C 12% 2.67 Central Excise edu. Cess % on additional duty D 3% 0.08 Customs Educational Cess % on (BCD+ CVD+ Central Excise cess) E 3% 0.14 Special additional cess 4% 1.00
  53. 53. 53 (% on Ass.value+ BCD+ CVD+ central excise+ Customs Cess) F Total value (A+B+C+D+E+F) 25.91 TOTAL CUSTOMS DUTY= (Total value-CIF value) 5.91 TIME TAKEN FOR CLEARANCE OF EXPORT AND IMPORT PROCEDURE: Export Clearance procedure 1. Through Factory stuffing Steps Time (approximately) 1 Booking container with the shipping liner and get the plot paper to move the container from Factory 1/2 hr 2 Documents received, docket open and S.B filled 1/2 hr 3 Assessment & A.C release S.B from customer 1 hr 4 Factory stuffing and inspection 3hrs 5 Offload CFS to port 24hrs 6 handed over S.B to Shipping Line 1/2 hr 7 preparing B/L draft, Generalised system of preferences (GSP),Vessel Certificate draft, 1/2 hr
  54. 54. 54 certificate of origin, 8 Getting B/L draft from the shipping line and giving approval & preparing fright charges cheque and release B/L and send these documents to shipper 3 days 9 Docket closing & sending accounts to billing purpose 1day 10 send export promotion copy to sender 1day Total days approximately 6 days Export Clearance procedure 1. Through CFS stuffing Steps Time (approximately) 1 Documents received, docket open and S.B filled 1/2 hr 2 Booking container with the shipping liner and get the plot paper to move the container from CFS 1/2 hr 3 Assessment & A.C release S.B from customer 1 hr 4 CFS stuffing and inspection 12hrs 5 Offload CFS to port 24hrs 6 handed over S.B to Shipping Line 1/2 hr 7 preparing B/L draft, Generalized system of preferences (GSP),Vessel Certificate draft, certificate of origin, 1/2 hr 8 Getting B/L draft from the shipping line and giving approval & preparing fright charges cheque and release B/L and send these documents to shipper 3 days
  55. 55. 55 9 Docket closing & sending accounts to billing purpose 1day 10 send export promotion copy to sender 1day Total days approximately 6 days Import clearance procedure Steps Time (approximately) 1 Generate check list using commercial invoice, packing list,B/L copy,freight bill, Certificate of origin, etc., 1/2hr 2 Filing Procedure 1 hr 3 customs procedure 1.Through RMS 15 min 2. through self-assessment 2days 4 payment of duty 1hr 5 Clearance from CFS 1day 6 Receives documents from CFS & Job Closing 3hrs Total time taken (Approximately) 4days
  56. 56. 56 Chapter-4
  57. 57. 57 Data interpretation and Analysis 1) Services to be improved Telephone answering -5, Invoicing- 7, Response Times-18 Other factors what customers are suggesting more are 1. Needs to send the documents immediately after clearance. 2. Proactive and better on time communication is required. 3. Quotations –Rate enquiry Continuous reporting should be required regarding sea shipment, invoice. 2) Customer satisfaction survey From the question, information obtained for client‟s preference about the type of service (through frequency test) Rating Esskay Frequency Percent Valid Percent Cumulative Percent Valid Far better 1 3.3 3.3 3.3 Better 7 23.3 23.3 26.7 Same 8 26.7 26.7 53.3 Below 7 23.3 23.3 76.7 Far Below 7 23.3 23.3 100.0 Total 30 100.0 100.0
  58. 58. 58 Here frequency test is applied to know how the clients opined about the ESSKAY service when compared to competitors. The clients opined as follows Far better-3.3% Better- 23.3% Same- 26.4% Below-23.3% Far Below-23.3%
  59. 59. 59 3) Rotated Component Matrix Rotated Component Matrix a Component 1 2 Esskay safe .929 Communication Satisfactory .825 Provide Information .559 Staff Competent .694 Impression Of Service .771 Esskay Needs To Improve .739 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations. Here from observation two communalities are found and they are named as 1st factor- Relationship (it constitutes Services safe, recommend services, communication satisfactory, Provide Information) 2nd factor- core competency (it constitutes Impression of service, staff competency) Factors affecting Custom House Agent Analysis of factors affecting CHA’s growth KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .623 Bartlett's Test of Sphericity Approx. Chi-Square 112.331 Df 45 Sig. .000 Hypothesis testing Null Hypothesis (Ho) - The variables are uncorrelated Alternative Hypothesis (H1) - The Variables are correlated In the above Table Bartlett‟s Test of Sphericity and Kaiser Meyer Olkin (KMO) Measure of Sampling Adequacy are used to test the appropriateness of the factor model.
  60. 60. 60 Bartlett‟s test is used to test the null hypothesis that the variables are not correlated. Since the approximate chi Square statistics is 112.331 which is significant at 1 % level, the test leads to rejection of the null hypothesis. The value of KMO statistics (.623) is also large. Thus the factor analysis may be considered as an appropriate technique for analyzing the correlation matrix. Rotated Component Matrix a Component 1 2 3 4 Availability of skilled labour .876 Availability of good Infrastructure .910 Completion of service on Time .727 Supply chain Visibility .950 Customer Service .690 Role of Information Tech .511 .642 Good Rail and Road netw .934 Air Transportation .856 Warehouse with Modern Tech .877 Cost Control .761 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. From the observations it is found that there are four commonalities and they are named as 1- It constitutes Completion of service on Time, supply chain, Customer Service 2- It constitutes, Air Transportation, Warehouse with Modern Tech, Cost Control 3-It constitutes of Good Rail and Road netw, Role of Information Tech 4-Availability of good Infrastructure, skilled labour availability
  61. 61. 61 From the research it is found that service excellence is going to be the important factor followed by cost optimization, reliability, transport and infrastructure factors. Rotated Component Matrix a Component 1 2 Cost of Logistic services are been to high in vskp .999 Cost of logistics services are more than benefits actually a obtained from those services .643 Is it difficult to hire qualified labour .966 Are the wages of labour working in logistic industry are to high .950 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations. From the observations it is found that there are two commonalities and they can be named as 1- High labor cost (it constitutes costs high in Visakhapatnam) 2-costs high than benefits, difficult to hire qualified labour, wages of labour working in logistic industry are too high From the analysis it is found that high labour cost is very important factor followed by costs high than benefits factors.
  62. 62. 62 Chapter-5
  63. 63. 63 Findings From the research it is observed that when compared to competitors, 24% of the clients opined the service levels of ESSKAY are better and 27% of the clients opined service levels of ESSKAY are same and 47% of the clients opined that other services are to be improved and the areas they suggested to improve are Needs to send the documents immediately after clearance, proactive, better on time communication and quotations rate enquiry, Continuous reporting should be required regarding sea shipment and invoice. Research on logistics companies in Visakhapatnam shows that the major factors that are effecting the logistics growth in Visakhapatnam are poor infrastructure, complex taxation. And also factors like reliability, service excellence, truck tracing mechanism, information sharing are going to be key factors which effect the logistics growth in Visakhapatnam. Conclusion The Custom House Agents are doing efficient logistics operations to various clients with limited infrastructural facilities. Though various problems are studied and highlighted in this study, it is found that the Custom House Agents in Visakhapatnam are performing well. Good communication process with clients is required, as majority of the clients opined it as a major factor where ESSKAY has to improve. Integrating all the channel partners like packing, stuffing, customs staff is very important so that the deliverables can be sent to the consignee in stipulated time with good condition. Finally improvement in infrastructure facilities, extra costs on the services provided to be reduced, transit facilities could improve logistics growth in Visakhapatnam.
  64. 64. 64 Annexure: Questioner for relation between ESSKAY Shipping and importer and exporter Dear Client, In order to evaluate our performance and to further improve our services, we would appreciate if you could spend a few minutes of your time to answer the below questions and give us your valuable input. Thank you Company Name: 1) In which areas do you think ESSKAY needs to improve? ___ 1. Telephone/Email answering 2. Invoicing 3. Response Times 2) Rate the following (use √ or • mark) . Very Good Good Aver age Poor Very Poor ESSKAY provide services in a safe, secure and timely manner I have established a good working relationship with my key ESSKAY contacts I recommend ESSKAY services to my friends and business partners. All communication to and from ESSKAY is satisfactory (e-mail, telephone, fax, etc). ESSKAY provide me with adequate information (market rates, new rules and regulations, etc). ESSKAY staff is competent in their fields. ESSKAY services continuously live up to my expectations
  65. 65. 65 3) Your overall impression of our service? ___ 1. Very good 2. Good 3. Average 4. Poor 5. Very poor A Study on challenging issues facing by Customs House Agent Company: 1. Rate the following based on their importance (use √ mark) Highly true True Not sure False Highly unaccepted Cost of logistic services are been too high in Visakhapatnam Cost of logistic services are more than benefits actually obtained from those services Is it difficult to hire qualified labor Are the wages of labor working in logistic industry are too high 2. Rate the following items based on services provided by logistic companies in Visakhapatnam (use √ mark) Very important Important Not sure Less important Very less important Availability of skilled labor
  66. 66. 66 Availability of good infrastructure Completion of service on time Supply chain visibility Customer service Role of information technology Good rail & road network Air transportation Warehouses with modern technology Cost controlling
  67. 67. 67 Bibliography 1) CII Institute of logistics, 2011 “Backbone of an economy The Hindu Survey of Indian Industry 2011” 2) Planning Commission of India, Report of the working group on Logistics http://planningcommission.nic.in/reports/genrep/rep_logis.pdf 3) Deloitte (2012), “Logistics Sector Present situation and way forward”, January http://www.deloitte.com/assets/DcomIndia/Local%20Assets/Documents/Thoughtware/Logistic s%20Sector-Present%20situation%20and%20way%20forward.pdf 4) Karvy (2012),”Logistics wake up & Smell the future”, march https://www.karvy.com/InstitutionalEquitiesReports/Logistics/Files//Karvy_Logistics%20Themat ic_22Mar2012.pdf 5) KPMG(2012),”TRANSPORTATION AND LOGISTICS-Logistics game changers” http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Logistics- Game-Changers.pdf 6) ESSKAY Shipping pvt.ltd www.esskayshipping.com/ 7) CRISIL, 2009 Economic Times http://articles.economictimes.indiatimes.com/2009-09-23/news/27646750_1_indian- logistics-3pl-supply-chain (Credit Rating and Information Services of India Ltd.) 8) Ernst and young, 2012 Economic Times http://articles.economictimes.indiatimes.com/2012-01-30/news/31005696_1_fdi-inflows- total-fdi-attractiveness-survey 9) KPMG, Logistics in India part-2
  68. 68. 68 10) Ajaz Mohammed, 2010 Shipping Biz360 http://www.shippingbiz360.com/article/8/2010041920100419182356404bc053900/Grow th-drivers-for-Indian-logistics-industry-%E2%80%93-Ajaz-Mohammed-East-West- Freight-Carriers-Private-Limited.html

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