Study of Export Procedure & Documentation with special
referrence to SAIL.
Presented By: ASIF KHAN
Roll No.- 12-MIB-006
Enrollment No.- 12-10534
Masters of International Business.
Centre for Management Studies,
JAMIA MILLIA ISLAMIA
Summer Internship Project In Steel Authority of India Ltd.
Research Objective
a) To understand the Steel Export Business Scenario.
b) To understand the working of various departments of Steel Authority
of India ltd. contributing towards processing of an export order.
c) To understand the different mode of export in SAIL.
i. Land Export.
ii. Sea Export.
d) To study the Export Documentation in SAIL.
i. Pre – Shipment procedure
ii. Post – Shipment procedure
Research Methodology.
• Research Design : Exploratory Qualitative Research Design.
• Collection of Primary Data :
1. The primary data was collected through the interview techniques
& personnel meeting with the Heads of different functional
departments & various executives.
2. Qualitative research through In-Depth Interviews has been
adopted.
3 . For interviews non–structured open-ended questions and semi
structured questions were used .
• Collection of Secondary Data :
1. Scanning, searching and disseminating information through
company research profile and company maintained data
2. export procedure and export market related data was collected
through the data compiled by Government Manual
3. For external research Internet website & published books
were consulted.
• Analysis Pattern
The nature of the project is of the subjective nature so for the analysis of
the available data, the use of various statistical and mathematical and
graphical techniques was not required. There were no additional statistical
and technical tool were considered for suitability of the procedure &
problem in order to achieve the desire objective. The study was of the
qualitative aspect not the quantitative. All the data was collected through
interviews a secondary data so no statistical tool were used.
Understanding The Steel Export
Business Scenario.
Position of Indian Steel Sector in the World 2012:
Indian Steel Scenario
1. China 716.5 Mt 6 South Korea 69.1 Mt
2. Japan 107.2 Mt 7 Germany 42.7 Mt
3. United States 88.7 Mt 8 Turkey 35.9 Mt
4. India 77.6 Mt 9 Brazil 34.5 Mt
5. Russia 70.4 Mt 10 Ukraine 33.0 Mt
Role of Various Departments of SAIL
in Export.
• International Trade Division (ITD).
• Transport & Shipping Division (T&S).
Functions of International Trade Division:
1. Marketing of Steel in Overseas market.
2. Finalization of export sales contract.
3. Co-ordination with plant and T&S for production and shipment.
4. Claim settlement.
Network of ITD:
Head Quarter- HT House, New Delhi.
Overseas Office- Kathmandu, Nepal.
Functions of Transport & Shipping Division:
1. To finalize shipping arrangement/vessel fixation/chartering for
export/insurance.
2. Complete the formalities of customs/port clearance.
3. Negotiation of documents/realization of payment for export.
4. Completion of post-export formalities.
5. Settlement of freight/dispatch/demurrage for vessels.
Network of T&S Offices for Export:
HEAD QUARTER KOLKATA
EASTERN REGION,
KOLKATA
•BTSO KOLKATA.
•Kolkata Dock, Kolkata Airport
•BSO - WAREHOUSES – KANPUR, BHILAI,
DANKUNI, BOKARO
•4 AGENT’S OFFICE AT INDO- NEPAL BORDER
•1 AGENT’S OFFICE AT BENAPOLE
•BTSO, HALDIA.
SOUTHERN REGION- VIZAG BTSO, VIZAG – Export
Understanding the Different mode of
export in SAIL.
• There are mainly 2 mode of export:
1. Sea Export.
2. Land Export.
Sea Export- Mainly to Srilanka & European Countries.
Land Export- In Bangladesh & Nepal.
• Export Logistics:
SEA EXPORT FROM PORTS VIZAG, HALDIA & rarely from
Mumbai
LAND EXPORT FROM LAND
FRONTIERS
RAXUAL, SANAULI, NEPAL
GUNJ, JOGBANI, BENAPOLE
•Commonly Applicable Terms for SAIL Export :
Contract Terms Modes of Export
FREE ON BOARD(FOB) Sea Export
COST & FREIGHT(CFR) Sea Export
FREE CARRIER(FCA) Land Export to Nepal
DAP – Delivered at Place Land Export to Bangladesh
SEA EXPORT PROCESS MAP
SRM Approval
Plant Interface
LC Check
All Vendor cost Captured
PSI OK Stock
Stock from WARF Confirm Vendor Services
Attach Delivery with Vessel
BL Obtained Book the Liability
ITD
Tendering
Letter of
Intent
Customer
Contact
Letter of
Credit
Capture
Unrestricted
Stock At
Yard
Create
Chalan. Post
the stock to
WARF
Wagon wise
Inbound
Delivery.
Ward validates
quantify that
Came in wagon
& post the
goods received
ARE .
Create
Delivery with
BOL. Stock
removed
from WARF.
ARE need to
capture.
Create
Invoice
Stock
Posted at
Yard.
PSI
Check
Create Work
Order on
Plant
Vessel
Arrived?
???
Create
Vessel as
Shipment
Document
Shipment Cost
Document. Line
Items of Ship
cost Document
Confirm
Services of
the Vendor
Service Entry
Sheet
Vendor Invoice
Verification
Vendor Liability
booked
Plant Sales Order
Despatch
Advice
Consignment
Advice
PSI Charges
Handling Container
Charges
Transport
Vendor Charges
Land Export Process Map
SRM Approval
Plant Interface
LC Check
Yes
No
Book the Liability
ITD
Tendering
Letter of
Intend
Customer
Contact
Letter of
Credit
Captured
Create
Work Order
on Plant
Unrestricted
Stock at
Stock Yard
Wagon wise
Inbound
Delivery.
Ward validates
quantify that
Came in wagon
& post the
goods received
ARE .
Is
Inspection
Required?
Create
Delivery for
Individual
Truck
Create
Invoice.
Stock
Posted at
Yard.
PSI
OK?
Shipment
Tracking
Attach
Outbound
Delivery to
Shipment
Document
Create
Shipment
Document
Plant Sales
Order.
Despatch Advice
Consignment
Advice
Shipment Cost
Document for
Transport
Vendor.
Confirm
Services of
the Vendor
Service
Entry Sheet
Vendor Invoice
Verification
Vendor
Liability
booked
Studying the Export Documentation
in SAIL.
i. Documents involved in Pre – Shipment procedure.
ii. Documents involved in Post – Shipment procedure.
Documents involved in Pre – Shipment Procedure.
•Letter of Intent.
•Agreement.
•Letter of Credit.
•Work Order.
•NOR or Notice of Readiness.
Documents involved in Post – Shipment Procedure.
•Documents Needed for Custom Clearance (Both Sea & Land
Export)
1.Shipping Bill.
2.ARE-1 Form.
3.Marine Bill of Lading / Railway Receipt / Lorry Receipt.
•Different Documents Needed for Post-Export Negotiations (Both
Sea & Land Export):
Documents used by SAIL can be categorized into 4 categories:
1.Financial Document.
i) Bill Of Exchange.
2. Commercial Documents.
i) Commercial Invoice.
ii) Packing & Weight List.
3.Transport Documents
i) Marine Bill of Lading/ Mate’s Receipt (in Sea Export).
ii)Railway Receipt (in Land Export).
iii)Lorry Receipt (in Land Export).
4. Statutory/Legal Documents
i) Export Inspection Certificate.
ii) Certificate of Origin.
iii) GSP Certificate.
iv)ISFTA Certificate.
•Documents required for claiming incentives under Government
Export Promotion Scheme.
1.Bill of Export.
Conclusion.
• India in near future is going to become a key player in the export
market of steel once the expansion plan of the major steel producer
of the country materialized , as there will be surplus capacity to be
exported.
• The complexity of international export business can be overcome
easily by a systematic export procedure & fair documentation.
• A systematic export procedure helps to perform the export business
activity in an efficient manner. On the other hand documentation
serves as permanent proof of tasks and actions undertaken
throughout the export process.
• The documentation formality is cumbersome. However, Customs
has introduced some system of faster processing of document in
respect of hustle free exporting activity.
• The Companies should leverage upon various EPS offered by Govt.
of India to make most of the profit which can also be attained
through a transparent documentation process.
EXIM Procedure and Documentation:- A Study of SAIL documentation Process

EXIM Procedure and Documentation:- A Study of SAIL documentation Process

  • 1.
    Study of ExportProcedure & Documentation with special referrence to SAIL. Presented By: ASIF KHAN Roll No.- 12-MIB-006 Enrollment No.- 12-10534 Masters of International Business. Centre for Management Studies, JAMIA MILLIA ISLAMIA Summer Internship Project In Steel Authority of India Ltd.
  • 2.
    Research Objective a) Tounderstand the Steel Export Business Scenario. b) To understand the working of various departments of Steel Authority of India ltd. contributing towards processing of an export order. c) To understand the different mode of export in SAIL. i. Land Export. ii. Sea Export. d) To study the Export Documentation in SAIL. i. Pre – Shipment procedure ii. Post – Shipment procedure
  • 3.
    Research Methodology. • ResearchDesign : Exploratory Qualitative Research Design. • Collection of Primary Data : 1. The primary data was collected through the interview techniques & personnel meeting with the Heads of different functional departments & various executives. 2. Qualitative research through In-Depth Interviews has been adopted. 3 . For interviews non–structured open-ended questions and semi structured questions were used . • Collection of Secondary Data : 1. Scanning, searching and disseminating information through company research profile and company maintained data 2. export procedure and export market related data was collected through the data compiled by Government Manual 3. For external research Internet website & published books were consulted.
  • 4.
    • Analysis Pattern Thenature of the project is of the subjective nature so for the analysis of the available data, the use of various statistical and mathematical and graphical techniques was not required. There were no additional statistical and technical tool were considered for suitability of the procedure & problem in order to achieve the desire objective. The study was of the qualitative aspect not the quantitative. All the data was collected through interviews a secondary data so no statistical tool were used.
  • 5.
    Understanding The SteelExport Business Scenario. Position of Indian Steel Sector in the World 2012: Indian Steel Scenario 1. China 716.5 Mt 6 South Korea 69.1 Mt 2. Japan 107.2 Mt 7 Germany 42.7 Mt 3. United States 88.7 Mt 8 Turkey 35.9 Mt 4. India 77.6 Mt 9 Brazil 34.5 Mt 5. Russia 70.4 Mt 10 Ukraine 33.0 Mt
  • 6.
    Role of VariousDepartments of SAIL in Export. • International Trade Division (ITD). • Transport & Shipping Division (T&S). Functions of International Trade Division: 1. Marketing of Steel in Overseas market. 2. Finalization of export sales contract. 3. Co-ordination with plant and T&S for production and shipment. 4. Claim settlement. Network of ITD: Head Quarter- HT House, New Delhi. Overseas Office- Kathmandu, Nepal.
  • 7.
    Functions of Transport& Shipping Division: 1. To finalize shipping arrangement/vessel fixation/chartering for export/insurance. 2. Complete the formalities of customs/port clearance. 3. Negotiation of documents/realization of payment for export. 4. Completion of post-export formalities. 5. Settlement of freight/dispatch/demurrage for vessels. Network of T&S Offices for Export: HEAD QUARTER KOLKATA EASTERN REGION, KOLKATA •BTSO KOLKATA. •Kolkata Dock, Kolkata Airport •BSO - WAREHOUSES – KANPUR, BHILAI, DANKUNI, BOKARO •4 AGENT’S OFFICE AT INDO- NEPAL BORDER •1 AGENT’S OFFICE AT BENAPOLE •BTSO, HALDIA. SOUTHERN REGION- VIZAG BTSO, VIZAG – Export
  • 8.
    Understanding the Differentmode of export in SAIL. • There are mainly 2 mode of export: 1. Sea Export. 2. Land Export. Sea Export- Mainly to Srilanka & European Countries. Land Export- In Bangladesh & Nepal.
  • 9.
    • Export Logistics: SEAEXPORT FROM PORTS VIZAG, HALDIA & rarely from Mumbai LAND EXPORT FROM LAND FRONTIERS RAXUAL, SANAULI, NEPAL GUNJ, JOGBANI, BENAPOLE •Commonly Applicable Terms for SAIL Export : Contract Terms Modes of Export FREE ON BOARD(FOB) Sea Export COST & FREIGHT(CFR) Sea Export FREE CARRIER(FCA) Land Export to Nepal DAP – Delivered at Place Land Export to Bangladesh
  • 10.
    SEA EXPORT PROCESSMAP SRM Approval Plant Interface LC Check All Vendor cost Captured PSI OK Stock Stock from WARF Confirm Vendor Services Attach Delivery with Vessel BL Obtained Book the Liability ITD Tendering Letter of Intent Customer Contact Letter of Credit Capture Unrestricted Stock At Yard Create Chalan. Post the stock to WARF Wagon wise Inbound Delivery. Ward validates quantify that Came in wagon & post the goods received ARE . Create Delivery with BOL. Stock removed from WARF. ARE need to capture. Create Invoice Stock Posted at Yard. PSI Check Create Work Order on Plant Vessel Arrived? ??? Create Vessel as Shipment Document Shipment Cost Document. Line Items of Ship cost Document Confirm Services of the Vendor Service Entry Sheet Vendor Invoice Verification Vendor Liability booked Plant Sales Order Despatch Advice Consignment Advice PSI Charges Handling Container Charges Transport Vendor Charges
  • 11.
    Land Export ProcessMap SRM Approval Plant Interface LC Check Yes No Book the Liability ITD Tendering Letter of Intend Customer Contact Letter of Credit Captured Create Work Order on Plant Unrestricted Stock at Stock Yard Wagon wise Inbound Delivery. Ward validates quantify that Came in wagon & post the goods received ARE . Is Inspection Required? Create Delivery for Individual Truck Create Invoice. Stock Posted at Yard. PSI OK? Shipment Tracking Attach Outbound Delivery to Shipment Document Create Shipment Document Plant Sales Order. Despatch Advice Consignment Advice Shipment Cost Document for Transport Vendor. Confirm Services of the Vendor Service Entry Sheet Vendor Invoice Verification Vendor Liability booked
  • 12.
    Studying the ExportDocumentation in SAIL. i. Documents involved in Pre – Shipment procedure. ii. Documents involved in Post – Shipment procedure. Documents involved in Pre – Shipment Procedure. •Letter of Intent. •Agreement. •Letter of Credit. •Work Order. •NOR or Notice of Readiness.
  • 13.
    Documents involved inPost – Shipment Procedure. •Documents Needed for Custom Clearance (Both Sea & Land Export) 1.Shipping Bill. 2.ARE-1 Form. 3.Marine Bill of Lading / Railway Receipt / Lorry Receipt. •Different Documents Needed for Post-Export Negotiations (Both Sea & Land Export): Documents used by SAIL can be categorized into 4 categories: 1.Financial Document. i) Bill Of Exchange. 2. Commercial Documents. i) Commercial Invoice. ii) Packing & Weight List.
  • 14.
    3.Transport Documents i) MarineBill of Lading/ Mate’s Receipt (in Sea Export). ii)Railway Receipt (in Land Export). iii)Lorry Receipt (in Land Export). 4. Statutory/Legal Documents i) Export Inspection Certificate. ii) Certificate of Origin. iii) GSP Certificate. iv)ISFTA Certificate. •Documents required for claiming incentives under Government Export Promotion Scheme. 1.Bill of Export.
  • 15.
    Conclusion. • India innear future is going to become a key player in the export market of steel once the expansion plan of the major steel producer of the country materialized , as there will be surplus capacity to be exported. • The complexity of international export business can be overcome easily by a systematic export procedure & fair documentation. • A systematic export procedure helps to perform the export business activity in an efficient manner. On the other hand documentation serves as permanent proof of tasks and actions undertaken throughout the export process. • The documentation formality is cumbersome. However, Customs has introduced some system of faster processing of document in respect of hustle free exporting activity. • The Companies should leverage upon various EPS offered by Govt. of India to make most of the profit which can also be attained through a transparent documentation process.