glass industry

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SINHGAD COLLEGE OF SCIENCE
Table of Contents:
1 EXECUTIVE SUMMARY 2-3
2 OBJECTIVE OF THE STUDY 4
3 COMPANY PROFILE 5-7
4 HISTORY OF THE COMPANY 8-15
5 MANUFACTURING PROCESS 16-23
6 EXPORT PROCESS & DOCUMENT’S 24-34
7 INCENTIVE & SCHEMES 35-39
8 EXPORT PROCEDURE 40-45
9 DATA ANALYSIS 46-51
10 OBSERVATION & LIMITATION 52-53
11 CONCLUSION 54-55
12 ANNEXURE 56-57

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
In this project report, I would like to brief on various portion of the report. This report is
on the topic EXPORT PROCEDURE OF GLASS REFILL covered some of the
following important subtopics.
The first subtopic is the brief study of Executive Summary, History and Organization
Chart.
Second subtopic is Company Profile i.e. Company Profile - In this section there is a
detail about Product, Price, and Manufacturing Process etc.
Third section contain detailed study of Export process & document, Incentive & scheme,
Export procedure i.e. in this section all about Survey with the help of the data .
Last but not the least, in this section Suggestion, Limitation My point of view and
Bibliography is given.

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Objective of the study
The objective of this project are:-
 To study the export procedure of FIROZABAD GLASS SHELL INDUSTRIES.
 To study the process involved in documentation used for exporting glass refills.
 To learn what are factor important for pre-exporting procedure.
 How the company generating more employment opportunities.

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CHAPTER # 1
INTRODUCTION

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COMPANY PROFILE
NAME OF THE COMPANY FIROZABAD GLASS SHELL INDUSTRIES
NAME OF DIRECTORS MR. DHARMENDRA MOHAN GUPTA,
MR. RAM KISHOR GUPTA
MR. SUNIL MOHAN GUPTA
MAIN ACTIVITIES MANUFACTURER EXPORTER
OF GLASS REFILL
CORPORATE OFFICE 4, SHRI KRISHNA MARKET
S.N. ROAD,FIROZABAD
UTTAR PRADESH 283203
TELEPHONE 00-91-11-41574930
FAX 00-91-11-41574940
EMAIL Firozabadglassshell@rediffmail.com
PLANT LOCATION MOHOMAD,NAVADA,
MAKHANPUR,FIROZABAD
UTTAR PRADESH 283203
YEAR OF ESTABLISHMENT 1980

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ORGANISATION CHART:
EXECUTIVE DIRECTOR
FINANCIAL DEPARTMENT SALES & SUPERVISION
DEPT.
AIRWAY FREIGHT
SEA & LAND FREIGHT
CUSTOM AGENT
INSURANCE, WAREHOUSING
QUALITY MANAGEMENT
DEPARTMENT

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CHAPTER # 2
HISTORY OF THE
COMPANY
HISTORY:

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Firozabad Glass Shell Industries (FGSI) has been engaged in the manufacture of Doubled
Walled Glass Refills (Glass Liners) for Vacuum Flasks since its inception in 1980. FGSI is
today the largest Manufacturer - Exporter of Glass Refills from India with a share of about
65% of India's export of this product.
The company is owned by Mr. Ram Kishore Gupta, Mr. Dharmendra Mohan Gupta and Mr.
Sunil Mohan Gupta, who have long experience of over 3
decades in different spheres of glass production and under
their management the company thrives to be a forward
looking and a market driven company. These principles
and attitudes are reflected in FGSI group's excellence and
leadership in other segments of our business such as glass
production for lighting industry and glassware also.
FGSI's manufacturing plant is spread over 16000 sq. meters of land at Firozabad about 300
Kms away from New Delhi, India's capital. The plant
has state-of-art glass refill production facilities including
Tank Furnace, Silvering and also Vacuuming facilities.
The company uses the original German 'Einedrucker
Technology' which has been further refined over years
of producing the glass refills consistent with
continuously upgraded international standards.
FGSI employs a workforce of about 1000 people including technical and commercial staff.
FGSI is an 'equal opportunity employer' and uses healthy adult workforce. FGSI recognizes
that quality man power is the main asset of any company.

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PRODUCTS:
FGSI specializes in production of Double Walled Glass
Refills for Vacuum Flasks. We regularly produce glass
refills from 125ml capacity up to 3000ml in both traditional
narrow mouth (flasks) and also in wide mouth (food flasks)
categories. We are one of the very few manufacturers in the
world, capable of producing refills up to 3000ml. The
designs of each individual customer are kept confidential.
The company uses 'Einedrucker Technology' in which both the inner and outer walls are
blown together to make a single piece Glass Refill. Since the unit is a single piece without any
welding, it has better mechanical strength. Further spacers are NOT used between two walls.
Although most of our production is with 'side nozzle (Capillary)', we are fully capable and
equipped for production of glass refills with 'center nozzle'.
S No. Model
Capacity of Normal
Products
1 Flask (Narrow mouth) 125 ml to 2500 ml
2 Food Flask (Wide mouth) 125 ml to 3000 ml
3 Jugs 125 ml to 3000 ml

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QUALITY:
FGSI is an ISO 9001-2000 Certified Company.
Quality Standards & Inspection Procedures :-
1. FGSI uses a standard Glass Batch, which ensures consistent Glass Composition and
percentage of vital parameters such as B2O3, Al2O3 and also Alkalinity.
2. Our glass is absolutely free from Lead, Cadmium and other hazardous materials.
3. The test procedures and the products conform to EN 12546-1:2000 in addition to Indian
Standard No. IS3702:1989.

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The quality checking procedures followed by the company are as follows :-
Samples 100%
IN-PROCESS QUALITY
INSPECTION
-Annealing X
-Visual appearance X
-Position and Length of nozzle X
-Mounting Height X
-Other Dimensions X
-Temperature/ Heat Retention X
PRE-DESPATCH INSPECTION X
ENVIROMENT:

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FGSI has always been dedicated to meeting their responsibility towards protection of
environment and conserving scarce natural resource. This has prompted us to adopt the
following measures:
 Only the Eco Friendly Natural Gas is used in production and also to generate power.
 Effluent is treated according to environmental standards before releasing. Special
care taken to ensure that discharge of pollutants is within prescribed limits.
 Green Belt in and around the factory.
 Minimizing energy and water consumption in production process.
 Yearly tree plantation

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AWARDS:
FGSI has been getting Export Performance Awards from
Govt. of India in the last many years.

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OBJECTIVE OF COMPANY:-
 To earn maximum profit with benefitted policies.
 To maintain high quality.
 To improve relation between producer country & buyer country.
 To developed employment opportunity in domestic area.
 To maintain good & hygienic environment for workers of the company.
 To provide latest technology which work as helping hand for workers.
 Proper storage area for raw material & machinery.
AIM OF COMPANY:-
 To achieve No. 1 position in domestic & global market.
 To maintain the reputation of the company at the top of the chart.
 To provide best quality of goods to buyers at nominal price.
 To create good communication network between the participating country.
 To generate more employment opportunities in domestic as well as global market.
VALUES:-
 Our people are our enduring advantage the caliber & commitment of our people set as part
we value & encourage diversity we select & develop people for long term performance is
what counts.
 Accountability is clear & personal. We favour decentralized management & a practical
maximum of local autonomy goals & objectives are aligned & clearly articulated.
 We work & win in team.
 We actively develop & share knowledge within the group.
 We consciously balance local & internal relation.
 We understand & respect our customer’s & consumer.
 We innovate & lead in a changing world.
 We build long lasting relationship, based on trust.

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CHAPTER # 3
MANUFACTURING
PROCESS

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THE MANUFACTURING PROCESS OF GLASS REFILL
There are total 11 steps to produce glass refill:-
Heat Retention
Cleaning Final packing
Silvering
Drying Vaccuming
Melting the ingredients
Blowing,Pressing & Drawing Annealing & Tempering
PRE-DESPATCH INSPECTION
FINAL DESPATCH

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BRIEF DESCRIPTION OF THE PROCESS
1. Melting the Ingredients:-
Glass can be made from three ingredients. Silica, the most prevalent ingredient in the earth crust, is
found as quartz & sand. Soda ash, or sodium carbonate, is also used to make glass. Calcium oxide,
also known as lime, is another key ingredient of glass & is found in limestone.
Silica, Soda ash, & Lime & Feldspar are the main ingredients in glass. Sometimes recycled glass,
called cullet, is also added. The desired ingredients are mixed & then melted into liquid in large
furnace.
2. Blowing, Pressing, and Drawing:-
Once glass has been melted, it can be shaped & used in various ways. When blowing glass, a ball of
melted glass placed on the end of a hollow iron tubes. Air is then blown into the tube to shape the
glass on the other end. Air is blown manually.
In the pressing method of glass making, the liquid glass is poured into a mold & then pressed into
shape by either a machine. Tube-shaped glass is poured into a spinning mold. Air is blown through
the mold as it spins to keep the cooling glass on the outside edge of the tube.
3. Annealing & Tempering:-
Once the glass is finished, it goes through an annealing or tempering process to increases its
strength. The annealing process involves making the glass hot again & then allowing it to cool
slowly. When glass is tempered it is also reheated, but tempered glass is cooled very quickly with
air. Depending on the desired properties, the finished glass can be coated with different materials to
further increase strength, reduce glare or add other.

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4. Silvering:-
First, we wash refill by stannous chloride, then filled with silver nitrate & dextrose (reducer).After
that rotating on silver machine, This process completed within 5 to 10 minute.
5. Drying:-
After silvering, refills are carried on dry box. Here all the refills dried at about 1500c temperature.
6. Vacuum:-
Dried refills carried on vacuuming machine. All the refills vaccumised by 600. Its vacuum pump &
make the nozzle point by a cutting burner.
7. Heat retention test:-
We are doing 100% testing by 950c temperature water. According type of refill & temp. Chart.
Type of refill:-
 Type A- Narrow mouth, nominal capacity greater than 750ml & internal mouth, Diameter up
to 15mm.
 Type B- Narrow mouth, nominal capacity greater than 250ml but less than 750ml & internal
mouth, diameter up to 45mm.
 Type C- Wide mouth, nominal capacity 500ml & internal mouth, diameter above 455mm.
 Type D- 250ml nominal capacity & internal mouth, diameter up to 30ml.
 Type E- 250ml nominal capacity & internal mouth, diameter above 30ml but up to 45mm.

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Temperature chart:
Initial Temp. Of water
Type of refills Temp. after 2 hr Temp. after 5 hr Temp. after 24 hr
A 910 780 500
B 880 700 420
C 850 700 420
D 880 700 400
E 850 680 380
8. Cleaning: - All the refill cleaned by soft water before packing than packed in corrugated boxes.
9. Final packing: - All the refills are checked by quality control. Quality control checked visual
appearance, neck O.D, neck I.D, mounting height, nozzle height, weight & packaging material.
10. Loading: - All the packed boxes loaded in the container, according to buyers.

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VACCUM THERMOS PROCESS
Instead of using some insulating material inside a container, a vacuum is used. Such a thermos
contains an evacuated chamber that acts as an insulator. Since a vacuum contains no matter, it
cannot transfer heat by conduction or convection.
But radiation heat can be transferred through a vacuum. To prevent that type of heat transfer,
most vacuum thermos bottles have their inside silvered to reflect the radiation.
Sometimes the insulating material is placed within a metal, plastic or even cardboard container
Simple thermos inhibits heat gain or loss.

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DIAGRAM OF VACCUM THERMOS
People often use vacuum thermos bottles to bring hot drinks, soup, or iced tea to work.

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PRODUCT FROM THERMOS REFILL

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CHAPTER # 4
EXPORT PROCESS & DOCUMENT’S

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EXPORT PR0CEDURE OF GLASS REFILL
1.
 Application for import export code (I.E.C).
 After getting IEC code.
2.
 Registration on seaport.
 Order or contract.
3.
 Payment
 Export permit
4.
 Commercial invoice
 Invoice
5.
 Packing list.
 Certificate of origin.
6.
 Original invoice need to be sent to custom agent within two days before the shipment.
 Pre-clearance procedure.
7.
 Consignment information sent to client before two days.
 Document & the consignment are checked by custom agent on shipment day.

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8.
 Original document are been sent to client along with consignment.
9.
 All the document are sent to bank for registration to RBI. It is to be sent within 21 days.
10.
 Post-shipment after the payment all documents are to be sent to bank.

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DOCUMENTS USED IN EXPORTS
 Bill of lading:-It is a important document as it gives title to goods. On the basis of bill of
lading, the importer can take possession of goods from the customs.
A bill of Lading normally contains the following details:
1. The name of the shipping company.
2. The name & address of the shipper/exporter.
3. The name & address of the importer/agent.
4. The name of the ship.
5. Voyage number & date.
6. The name of the ports of shipment & discharge.
7. Quality, quantity, marks & other description.
8. The number of packages.
9. The date of loading of goods on the ship.
10. The signature of the issuing authority.
 Types of bill of Lading:-
1. Clean bill of Lading.
2. Claused bill of Lading.
3. Stale bill of Lading.
4. Straight bill of Lading.
5. Container bill of Lading.
 Commercial invoice:-
It is a basic export document. It contains all the information which is required for the
preparation of all other documents. It is the exporter’s bill for goods.

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The commercial invoice should contain:-
1. The name & address of the exporter.
2. The name & address of the importer.
3. The description of the goods, like Quality, quantity, weight.etc.
4. The value of goods, less discounts, if any.
5. The net amount payable by the importer.
6. Terms & conditions of sale.
7. The signature of the exporter.
8. L/C number.
9. Bill of lading number.
10. Identification marks on the package.
 Certification of origin:-This is a document require by the importer for certifying the origin
of goods, without which clearance of import goods is refused. This certificate may form a
part of the commercial invoice itself. This certificate is issued by the Chamber of Commerce
or Trade association.
There are three types of certificate which are to be obtained in prescribed form from
specified authorities.
1. Type-A:-The certificate can be obtained from chamber of commerce or trade association.
2. Type-B: - The certificate can be obtained from EIA, Jt.DGFT, Central Silk Association,
Textile Committee Development Commissioner, Jute commissioner. EIA & Jt.DGFT can
issue certificate for any item.
3. Type-C: - The certificate has to be obtained different from the officer of high
commissioner of the country concerned.

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 Shipping bill:-This is the main document required by Custom authorities for granting
permission for shipment of goods. It is only after to be carried to the docks.
The shipping bill is generally prepared in five copies:-
1. Custom copy.
2. Drawback copy.
3. Export promotion copy.
4. Port trust copy.
5. Exporter’s copy.
The shipping bill contains description of goods & other particulars such as:
1. Name & address of the exporter.
2. Number & description of packages.
3. Quantity, weight & value of goods.
4. Name of the vessel in which goods are to be shipped.
5. Country of destination.
6. Total amount of duty.
7. Port at which goods to be discharged.
Type’s of shipping bills:-
1. Free shipping bill.
2. Dutiable shipping bill.
3. Drawback shipping bill.
4. Coastal shipping bill.
5. Shipping bill for shipment Ex-bond.

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MATE’S RECEIPT: - It is issued by the mate(assistant of the captain of the ship) after the
cargo is loaded on the ship. It is an acknowledgement that the goods have been received on the
board the ship.
Mate receipt contains information relating to:-
1. Description of packages.
2. Condition of goods/packages loaded on the vessel.
3. Name of the vessel.
4. Date of loading.
5. Port of loading.
6. Port of delivery.
7. Name & address of the exporter.
8. Name & address of the importer.
ARE-1 FORM:-It is used for excise clearance. ARE stands for “Application for removal of
Exports”. At present five copies of ARE-1 form is required for excise clearance in respect
of export. Each of the five copies have different color for easy verification & processing:
1. Original copy - White
2. Duplicate copy - Buff
3. Triplicate copy - Pink
4. Quadruplicate copy - Green
5. Quintuplicate copy –Blue
LETTER OF CREDIT:-“An undertaking by importer’s bank stating that payment will be
made to the exporter if the required documents are presented to the bank within the validity
of the L/C”.
This method of payment has become the most popular form in recent times, as it is more
secured as compared to the other methods of payment.

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PARTIES TO LETTER OF CREDIT:-
1. Applicant:-The buyer or importer of goods.
2. Issuing bank:-Importer’s bank who issue the L/C.
3. Beneficiary: - The party to whom the L/C is addressed. The seller or supplier of goods.
4. Advising bank:-Issuing bank’s branch in exporter’s country which guarantees the credit
on the request of the issuing bank.
5. Confirming bank: - The bank in beneficiary’s country which guarantees the credit on the
request of the issuing bank.
6. Negotiating bank: - The bank to whom the beneficiary present his documents for payment
under L/C.
PROCEDURE INVOLVED IN THE LETTER OF CREDIT:-
1. Exporter’s request: - The exporter requests the importer to issue L/C in his favour. L/C is
the most secured form of payment in foreign trade.
2. Importer’s request in his bank: - The importers request his bank to open an L/C. He may
either pay the amount of credit in advance or may request the bank to open credit in his
current account with the bank.
3. Issue of L/C:-The issuing bank issues the L/C & forwards it to its correspondent bank
with a request to inform the beneficiary that the L/C has been opened. The issuing bank may
also request the advising bank to add its confirmation to the L/C. If so required by the
beneficiary.
4. Receipt of L/C:-The exporter takes in his possession the L/C. He should see to it that the
L/C is confirmed.
5. Shipment of goods:-Then the exporter supplies the goods & present the full set of
document along with the draft to the negotiating bank.
6. Scrutiny of document:-The negotiating bank then scrutinizes the document & if they are
in order makes the payment to the exporter.
7. Realization of payment:-The issuing bank will reimburse the amount to the negotiating
bank.
8. Documents to importer:-The issuing bank in turn presents the documents to the importer
& debits his account for the corresponding amount.

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TYPES OF LETTER OF CREDIT:-
1. Revocable or Irrevocable Letter of credit.
2. Confirmed Letter of credit.
3. Transferable Letter of credit
4. With or Without Letter of credit.
5. Revolving Letter of credit.
6. Transits Letter of credit.
7. Back to Back Letter of credit.
FLOW CHART OF LETTER OF CREDIT OPERATION:-
EXPORTER IMPORTER
LONDON MUMBAI
(BENEFICIARY) SHIPS GOOD TO (APPLICANT)
FORWARD PRESENT DOCS RECOVER AMT APPLIES FOR
L/C TO & OBTAIN FROM OPENING L/C
PAYMENT FROM
MIDLAND BANK BANK OF INDIA
LONDON (MUMBAI)
(ADVISORYBANK) (ISSUING BANK)
OPEN & SENTS L/C TO
INCO TERMS:-
CONTRACT OF SALE
OBTAIN REIMBURSEMENT FROM

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 1. Free on Board (FOB):- The seller’s responsibility ends the moment the contracted goods
pass the ship’s rail at the port of shipment named in the sales contract. This means that the
buyer has to bear all cost & risks of or damage to the goods from that point. The seller is
required to clear the goods for export.
 2. Cost & Freight (C&F):- The seller delivers when the goods pass the ship’s rail in the port
of shipment. The seller must on his own risk contract for the carriage of the goods to the
goods to the port of destination named in the sale contract & pay the freight. This being a
shipment contract, the point of delivery is fixed to the ship’s rail & the risk of loss or of
damage to the goods is transferred from the seller to the buyer at that very point.
 3. Cost Insurance Freight (CIF):-The term is basically the same as CFR, but with the
addition that the seller has to obtain insurance at his cost against the risks of loss or damage
4. Free alongside ship (FAS):- Once the goods have been placed alongside the ship, the
seller’s obligations are fulfilled & the buyer notified. The seller has to contract with the sea
carrier for the carriage of the goods to the destination & pay the freight. The buyer has to
bear all costs & risks of loss or damage to the goods hereafter.
5. Ex- works (EXS):- The seller’s responsibility is to make the goods available to the buyer
at works or factory. The full cost & risk involved in bringing the goods from this place to the
desired destination will be borne by the buyer. This term thus represents the minimum
obligation for the seller.
6. Free Carrier (FCA):- The seller’s obligations are fulfilled when the goods are delivered to
the carrier named by the buyer at the named place.
7. Carriage Paid to (CPT):- The seller delivers the goods to the carrier nominated by him but
the seller must in addition pay the cost of carriage necessary to bring the goods to the named
destination. The buyer bears all risks & any other cost after the point of delivery.
8. Carriage & Insurance paid to (CIP):- CIP is the same as CPT, with the addition that the
seller is also required to procure insurance against the buyer’s risk of or damage to the goods
the carriage.

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9. Delivery at Frontier (DAF):- This is primarily to be intended to be used, When the goods
are to be carried by rail or road. The seller’s obligations are fulfilled when the goods have
arrived at the frontier, but before the ‘Custom Border’ of the country named in the sales
contract.
10. Delivery Ex-ship (DES):- This is an arrival contract & means that the seller makes the
goods available to the buyer in the ship at the named port of destination as per sales contract.
The seller has to bear the full cost & risk involved in bringing the goods there.
11. Delivery Ex- quay (DEQ):- The seller makes the goods available to the buyer at a
named quay. The buyer is required to clear the goods for import & to pay for all formalities,
duties, taxes etc. The seller has to bear the cost of discharging the goods on the quay.
12. Delivery Duty Unpaid (DDU):- The seller delivers the goods to the buyer, at the port of
destination. The seller has to bear the full cost & risk involved in bringing the goods there.
The buyer has to get the goods unloaded & cleared for import.
13. Delivery Duty Paid (DDP):- This term may be used irrespective of the type of transport
involved & denotes the seller’s maximum obligation as opposed to ‘Ex-Works’. The seller
has not fulfilled his obligation till such time that the goods are made available at his risk &
cost to the buyer at his premises or any other named destination.
First, Three Inco-term are used in exports of glass refill’s.

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CHAPTER # 5
INCENTIVE & SCHEME

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INCENTIVES PROVIDED BYGOVERNMENT BYGOVERNMENTBODIES
OR SCHEME:-
The incentives provided by government are
 Exim Bank of India
 Duty Entitlement Pass Book(DEPB)Scheme
Exim Bank of India: It came into existence in 1982.Its headquarters in Mumbai. It was
established for the purpose of financing medium & long term loans to the exporters thereby
promoting Foreign Trade of India. It took over the function of international wing of IDBI.
The main objectives of Exim Bank are:
(a) To provide financial assistance to exporter & importer.
(b) To promote foreign trade of India.
(c) To function as the principal financial institution for coordinating the working of working of
institutions engaged in providing export finance.
(d) To deal with all matters that may be considered to be incidental or conductive to the
attainment of above objectives.
(e) The banks assist the exporter in the collection of useful information on the credit worthiness
of the foreign buyer through their foreign agents/branches.
(f) Banks issue a guarantee for payment of retention money by overseas party who would
release the retention money to the Indian party only after receiving guarantee from bank.
(g) Banks issue bid bonds so as to enable exporters to participate in various global tender.

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Functions of Exim Bank:-
The assistance provided by EXIM Bank to the exporters can be grouped under two heads:
(A) Fund Based Assistance
(B) Non- Fund Based Assistance
The various assistance provided by Exim Bank can be charted as follows:
 Indian Parties Financial Guarantees
 Indian Banks Advisory & Other Services
 Overseas Buyers
 Overseas Banks
(A) Fund Based Assistance:-
1. Assistance to Indian Exporters:
(a).It provides financial assistance to Deferred Credit Exports.
(b).It offers credit facilities to “Deemed Exports”.
(c).It finances Indian joint Ventures in foreign countries.
(d).Finances units in EPZ/SEZ & 100% EOUS.
(B) Assistance to Indian Commercial Banks:-
1. It provides Refinance Facilities so as to enable commercial banks to offer credit
to Indian exporters who extend term credit to importer.
2. It offers Export Bills Rediscounting Facility to commercial banks in India who
have earlier discounted bills of exporters.
EXIM BANK
Fund BasedAssistance Non- Fund BasedAssistance

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(C) Assistance to Overseas Buyers:-It offers ‘Overseas Buyer Credit’ facility to foreign
importers for import of Indian capital goods & related services with repayment spread over a period
of years.
(D) Assistance to Overseas Banks:-
(a) Long term finance is also provided under “Lines of Credit” to finance financial institutions
abroad, who in turn, extend finance to importers of their country to buy Indian Capital Goods.
(b) It provides Relending Facility to overseas banks to make available term finance to their clients
for import of Indian goods.
(E) Non-Fund Based Assistance:-
(a) Guarantees & Bonds: EXIM Bank provides non-fund based assistance in the form of guarantees
in the nature of bid-bonds, performance guarantees etc. These guarantees are provided together with
the commercial banks.
(b) Advisory & other Services:
1. It advises Indian companies, in executing contracts abroad, & on sources of overseas financing.
2. It advices Indian exporters on global exchange control practices.
3. It provides access to Euro Financing sources & global credit sources to Indian exporter.
4. It assists the exporters under Forfeiting scheme.
5. It advises small -scale manufactures on export markets & product areas.
6. The EXIM Bank offers financial & advisory services to Indian construction projects abroad.

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DUTY ENTITLEMENT PASS BOOK (DEPB) SCHEME:-
The value based advance licensing (VABAL) scheme & the old pass book scheme have been
replaced by a new scheme called the DEPB scheme in the EXIM policy 1997-2002.The DEPB
scheme is likely to be withdrawn after May 2009.
Under the DEPB scheme, an exporter can claim duty credit at specified percentage of FOB value of
exports made in freely convertible currency. Any item, except those on the negative list, can be
imported under the scheme without payment of basic custom duty, special customs duty or
additional customs duty against the duty credit.
Third party exports will be admissible for grant of credit under the scheme & the DEPB will be
valid for 12 months from the date of issue.
The DEPB scheme will be allowed to be operated on a pre & post export basis by manufacture
exporters & merchant exporters. The DEPB on pre-export basis aims to provide the facility to
eligible exporter to import inputs required for production. The scheme will, therefore, be open to
manufacture exporter & merchant exporters tied with the supporting manufacturing with export
performance in the preceding three licensing years.
The credit of a DEPB on pre-export basis will be granted at the rate of 5% of the average export
performance during the three preceding licensing years. This scheme will carry an export obligation
which has to be offset by the DEPB holder by making exports.
In the cases of post-export basis. DEPB will be granted against export already made & will be
transferable .The transfer will however be for import at the port specified in the DEPB which will be
the port from where the exports have been made. Both merchant & manufacture exporters will be
eligible for it.

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CHAPTER # 6
EXPORT PROCEDURE

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BRIEF OUTLINE OF EXPORT PROCEDURE:-
Export procedures involve a number of steps. The various steps can be classified into four
stages:-
1. PRELIMINARY STAGE:
(A) Organizing:-The exporter should have an organization to look after exports. Exporters may
set up a complete new organization or add an export section to an existing one .At this stage the
exporter may take a decision to select the right product to sell abroad.
(B) Registration with various authorities:- The exporter register his organization with various
authorities:
1. Income Tax Authorities-To obtain Permanent Account Number (PAN).
2. Jt.DGFT- To obtain Importer-Exporter’s code number (IEC No.).
3. EPC- To obtain Registration Cum Membership Certificate (RCMC).
(C) Appointing Agents/Distributors:- It is advisable to appoint agents or distributors in the
selected overseas markets. The exporter may also open branches or sales division or depute
permanent representative abroad.
(D) Approaching Foreign Buyers:- The overseas agents representatives approach foreign buyers
with a quotation. The foreign buyers, if satisfied with the quotation & after clarification, if any,
will place an order with the exporter. The exporter should acknowledge & confirm the receipt of
such order.
EXPORT PROCEDURE
Stage-1
Preliminary stage
Stage-2
Pre-shipment stage
Stage-3
Shipment stage
Stage-4
Post-shipment stage

42
2. PRE-SHIPMENT STAGE:
(E) Confirmation of order: - When the buyer is satisfied with the terms & conditions of the
seller, he will place either a formal or confirmed order along with a signed copy of the contract.
(F) Obtaining Letter of Credit:- Along with the acknowledgement letter confirmed order along
with a signed copy of the contract. The exporter should acknowledge & confirm the receipt of
such order.
(G) Obtaining Pre-shipment Finance: - As soon as the exporter receives the confirmation order &
the letter of credit, he should approach his bank to pre-shipment finance to meet working capital
requirement.
(H) Production & Procurement of Goods: - As soon as the export order is finalized & Pre-
shipment credit is obtained, prepared are made for the production & procurement of goods to be
exported.
(I) Packing & Marketing: - The goods must be packed properly & attractively depending upon
the type of product, transit coverage etc. If required, necessary assistance can be obtained from
IIP. The exporter should prepare a packing list. The goods must be appropriate marked with
country of origin, net & gross weight, port of entry/destination, port of shipment.
(J) Pre-shipment Inspection: - The exporter should apply to EIA, if the export cargo is subject to
quality control & pre-shipment inspection. The EIA issues an Inspection Certificate, if satisfied
with the quality & if not, issue a Rejection Note.
(K) Central Excise Clearance: - Export goods are exempted from Central Excise. However,
clearance has to be obtained from excise authorities. There are two ways of excise clearance
(a) Export under Rebate, (b) Export under Bond.
(L) ECGC Cover: - The exporter should obtain ECGC cover to protect against credit risk. The
export may obtain standard policy or specific policy, depending upon, the type of product/service
& period of credit extended to overseas buyer.

43
(M) Marine Insurance Policy: - As soon as the goods are ready for export, the exporter has to
apply to Insurance Company for insurance cover. if it is a CIF Quotation or if the importer wants
the exporter to obtain the cover on his behalf. The insurance policy is obtained in duplicate.
(N) Appointment of Clearing & Forwarding Agent: - It is always advisable to appoint C&F agent
to look after forwarding work which includes booking of shipping space, preparing & submitting
various document to customs.
(O) Instructions to C&F Agent: - The Exporter should issue detained instruction to the C&F
agent for the shipment of cargo. The instruction should be accompanied by certain documents
such as:
1. Commercial Invoice (2copies).
2. GR form (original & duplicate).
3. AR-4/AR-4A form (original & duplicate).
4. Packing List.
5. Original LC/Export contract/Export order.
These documents are required to be submitted to customs.
3. SHIPMENT STAGE:
(P) Processing of shipment documents in the Customs Houses:-On receiving of documents from
the exporter, the C&F prepares shipping bill in 5 copies & then presents the shipping bill & other
documents to Custom Appraiser at the Custom House. If everything is in order he endorse
duplicate copy of shipping bill.
(Q) Physical Examination of goods at the Port:-The C&F agent obtain the carting order from the
Post Trust to cart the goods inside the docks. He then approaches the Custom Examiner, who
may physically inspect the goods. The Custom Examiner then gives ‘Let Export Order’.

44
(R) Loading of goods:- The duplicate copy of shipping bill which is endorsed by the Custom
Examiner is handled over to the Custom Preventive Officer, who endorse it with ‘Let Ship
Order’. The goods are then loaded on board the ship, for which Mate’s Receipt is issued by the
Mate of the ship. The Mate’s receipt is handled over to the shipping company, to obtain Bill of
Lading.
4. POST-SHIPMENT STAGE:
(S) Dispatch of document by C&F Agent to the Exporter: - The C&F agent then proceeds to
submit the necessary documents to the exporter for further action.
These documents include:
1. Commercial Invoice, attested by Customs.
2. Shipping Bill (Export promotion copy).
3. Original LC/Contract Order.
4. Bill of lading in appropriate copies.
5. GR Form (duplicate copy attested by custom).
6. Form AR-4 (duplicate copy).
(T) Shipment advice to importer: - The exporter then issues shipment advice to the importer,
indicating the date of shipment, the name of vessel. A few documents are also enclosed such as:
(a) A non-negotiable copy of B/L (b) Packing list (c) Commercial Invoice.
(U) Presentation of documents to the Bank: - All the required documents are handled over to the
bank by the exporter for processing. The bank then sends a set of document to the importer,
which normally includes-Commercial invoice, Consular invoice, Certificate of Origin, Packing
list. The Bank then sends a copy of Bank Certificate & attested copies of commercial invoice to
the exporter.

45
(V) Realization of Export Proceeds: - After the receipt of bank certificate & commercial invoice,
the exporter’s bank collects the export proceeds from the importer through his bank. Generally,
export proceeds, in India, must be realized within 180 days from the date of shipment.
(W) Realization of Export Incentives: - The exporter then proceeds to claim export incentive on
the basis of bank certificate. The bank certificate gives description of the product, its value, the
rate of conversion, the details of invoice etc.
(X) Follow-up of Export Sales:- A good exporter should always have a follow-up after sales i.e.
he should provide necessary after sale service, find out buyer’s opinion towards the product & so
on, which will help him to generate more sales in the international market.

46
CHAPTER # 7
DATA ANALYSIS

47
DATA ANALYSIS:-
COUNTRY-WISE EXPORT IN PAST 4 YEARS IN RS (LAKH)
S
No.
Country 2006-07 2007-08 2008-09 2009-10
1 Germany 610.67 656.14 927.82 1159.19
2 Belgium 189.45 106.14 182.32 56.89
3 Spain 68.09 58.33 85.57 45.67
4 Czech Rep 28.63 82.07 86.98
5 Denmark 71.37 105.77 42.81
6 Sweden 93.77
7 Poland 69.78
8 France 15.18
9 Portugal 5.30
10 Italy 15.06 5.84 6.84
11 Brazil 196.83 519.12 458.38 655.29
12 Taiwan 2.89 101.12 29.4 6.79
13 China 94.76 119.75 170.68 260.99
14 Hong Kong 192.82 229.09 241.51 209.40
15 Japan 6.31 50.46 21.49 46.92
TOTAL 1475.95 1945.99 2320.19 2647.55

48
PRODUCTION FOR GERMANY & BRAZIL:-
0
200
400
600
800
1000
1200
2006-07 2007-08 2008-09 2009-10
GERMANY
GERMANY
0
50
100
150
200
250
2006-07 2007-08 2008-09 2009-10
BRAZIL
BRAZIL

49
PRODUCTION FOR CHINA, JAPAN & HONG-KONG IN RS (LAKH):-
COMPARISION BETWEEN COUNTRIES:
0
50
100
150
200
250
300
2006-07 2007-08 2008-09 2009-10
CHINA
JAPAN
HONG-KONG
GERMANY
BRAZIL
HONG-KONG
0
200
400
600
800
1000
1200
2006-07
2007-08
2008-09
2009-10
GERMANY
BRAZIL
HONG-KONG

50
TOTAL PRODUCTION IN PAST YEARS IN RS (LAKH) :-
1475.95
1945.95
2320.19
2647.55
SALES
2006-07
2007-08
2008-09
2009-10

51
MARKET CAPUTURED BY DIFFERENT COUNTRIES IN 2009-2010 :-
45%
20%
30%
5%
MARKETSEGMENT
Germany
China
Japan
Russia

52
CHAPTER # 8
OBSERVATION & LIMITATION

53
OBSERVATION:-
 Company is working in 3 shifts.
 They are following all the import-export norms of government of india.
 Company is utilizing all the incentives provide by govt. of india
 Training is giving to workers during the working period.
 Ergonomics is very good in the company.
 Less pollution is explored from the company because of the use of natural gases.
 Proper utilizing of all 5M’S.
 Proper storage of goods.
 Maintenance of all machinery in proper time.
 All safety measure is taken by the management for their employee.
LIMITATION:-
 The procedure of import-export is very complex & it is very time consuming.
 Due to the geographical Boundations, it becomes very difficult to study a particular things &
lack of comparitative study.
 Import-Export procedure is very confidential subject; due to which employer hesitate to
provide all the information of the e procedure.
 Less time is given by the management authorities, due to their busy schedule.

54
CHAPTER # 9
CONCLUSION & SUGGESTION

55
CONCLUSION:-
The Indian business environment is changing with rapid growth in infrastructure & technology, with
the increasing in-flow of multinationals, trade has been increased, which result in stiff competition
between the organizations.
Despite of the stiff competition FIROZABAD GLASS SHELLS INDUSTRIES known as the
best company, because of their effect effective implementation of quality management system &
customer centric approach & also with the upgraded technologies of glass refills.
SUGGESTION:-
The procedure of import & export is such as long procedure so it takes time. So the employee must
be tries to make their work on time & quick.
There are some of the complicated procedure in import & export, so if we get the support of all
employees it must be easy.

56
CHAPTER # 10
ANNEXURE

57
BIBLIOGRAPHY
 www.google.com
 www.yahoo.com
 www.firozabad glass shell industries.com
 Export procedure-Micheal vaz

glass industry

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