A clearing and forwarding agent (CFA) plays an important role in the shipping process. Some of the key responsibilities of a CFA include: - Acting as an intermediary between exporters/importers and shipping lines - They liaise with shipping lines to book cargo space on vessels and issue relevant documents. - Handling customs clearance formalities - They work with customs brokers to ensure cargo clears customs and complies with all import/export regulations. This includes preparing necessary documents. - Organizing transport and logistics - They arrange for pick up and delivery of cargo, its movement between port/airport and final destination using trucks/trains etc. - Warehousing and storage - Many C

1. Short notes
1]privileges to status holders:
"Status holder" means an exporter recognized as One to Five Star Export House by DGFT/
Development Commissioner.
he Foreign Trade Policy 2009-2014 aims to double India’s share in global trade by 2020.
The commerce minister has laid down a mix of policy measures including fiscal incentives,
institutional changes, enhanced market access and procedural rationalisation.
The objective apparently seems to boost the declining exports, bringing down transaction costs and
achieve full refund of all indirect taxes and levies.
The much hyped Duty Entitlement Passbook Scheme has been extended up to December 31, 2010, as a
measure towards imparting greater stability and continuity of the erstwhile
Foreign Trade Policy.
With this the government has given a new lease of life to this much controversial export incentive
scheme.
Status Holder Incentive Scrip
One of the prominent features of the policy has been introduction of the Status Holder Incentive
Scrip (SHIC) which entitles the status holders such as trading houses, star trading houses etc for
additional duty scrip @ 1% of the FOB value of exports.
This measure is to incentivise the exporting community to upgrade their technology and enhance
exports.
The SHIC can be used for procurement of capital goods subject to the actual user condition and is
restricted to sectors such as leather, textiles, jute, plastics, chemicals etc.
A zero duty Export Promotion Capital Goods
A zero duty Export Promotion Capital Goods scheme for specified sectors like engineering, electronic
products, basic chemicals & pharmaceuticals, apparels & textiles has been introduced.
This scheme shall be operational till March 31, 2011. In addition, as against existing export obligation
of 8 times the value of duty saved to be fulfilled in 8 years, the zero duty EPCG allows an importer to
fulfill the export obligation in 6 years with an export obligation of 6 times the value of duty saved.
This benefit is not available to metals, specified machinery, fertilisers, base metals etc, and also not to
exporters availing benefits under technological upgradation fund and SHIC.
Further, the existing EPCG licence holder who had imported plant and machinery, export obligation on
further import of spares, moulds etc. has been reduced to 50% of the normally specified export
obligation (i.e. exports equal to 4 times of duty saved in 8 years).
With the developed economies showing no signs of recovery, it was important to take steps for
diversification of our export market by giving new emerging markets a special focus.
Focus Market Scheme
The policy, to an extent, has been able to achieve that. The Focus Market Scheme (FMS), in addition to
increasing the value of benefit from 2.5% to 3% of the f.o.b. value, has added a list of 26 new emerging
markets of Africa, Latin America, CIS countries etc.

2. The benefit shall be available to exports affected from August 27, 2009 onwards. This will help Indian
exporters make their exports competitive in the emerging markets.
To achieve a diversification of the exported products, the incentive available under the Focus Product
Scheme (FPS), has also been raised from 1.25% to 2%.
Further, a large number of products from various sectors have also been added including engineering
products, plastics, jute, green technology products and certain electronic items.
Market Linked Focus Product Scheme
The Market Linked Focus Product Scheme (MLFPS) has also been expanded by including over 150
products including pharmaceuticals, synthetic textile fabrics, glass products etc.
The benefit of duty scrip of 2% of the f.o.b. value of exports is available only if the exports are made to
13 identified markets including Australia, New Zealand, South Africa, Mexico, Brazil etc.
What is significant is that even the developed economies like Australia and New Zealand have been
included which should significantly boost export of the identified products.
Advance Authorisation Scheme
To put the Advance Authorisation Scheme aligned with the Duty Free Import Authorisation (DFIA)
scheme, the condition of a minimum value addition of 15% has been prescribed.
In addition, various other benefits have been accorded to Tea, Agriculture, Marine, Leather sectors
either by way of procedural simplifications or by way of fiscal incentives.
An export oriented unit (EOU) manufacturing multiple products has been granted the flexibility to clear
any single product up to 90% of its FOB value of exports in the DTA subject to maintaining the overall
DTA clearance limit of 50%.
Additionally, an EOU has also been allowed to procure a finished product from the DTA up to 5% of its
FOB value of exports for consolidation with the manufactured goods.
This should help EOU units maintain their export obligations which were unable to manufacture the
finished product themselves.
Apart from the fiscal benefits, the commerce minister has also attempted to simplify the current
procedural formalities, documentation and to an extent has attempted to grant some operational
flexibility.
The government is committed to implement the e-trade project in a time bound manner.The application
fee for availing incentives such as SFIS, FMS, FPS, etc has been completely waived and reduced for
availing other export benefits. An exporter who was earlier only required to pay cash for any unfulfilled
export obligation can now bridge that shortfall by way of debit in the duty credit scrip.
Advance Authorisation benefit has been extended to second stage supplier also and the time period for
conversion of shipping bill from one promotional scheme to another has been extended from one
month to three months.
Whilst framing the above policies the commerce minister is cautious of the current state of affairs of
the economy and has therefore put forth the above benefits for two years to be subsequently reviewed.
We hope the policy measures would help reversing the declining trend of the exports. The success of
the policy measures undertaken by the Foreign Trade Policy to make the Indian exporters globally
competitive would indeed depend a lot on how the finance ministry and the commerce ministry
translates the promotional measures into actions.
Menon is executive director, PricewaterhouseCoopers

3. STATUS HOLDER SCHEME REVAMPED
Date : 19 Apr 2007
Location : New Delhi
Responding to the demand of the status holders, Shri Kamal Nath, Minister of Commerce & Industry, has re-
christened them as Export House (earlier known as One Star Export House), Star Export House (earlier
known as Two Star Export House), Trading House (earlier known as Three Star Export House), Star
Trading House (earlier known as Four Star Export House), and Premier Trading House (earlier known as
Five Star Export House). They will be granted such status on achieving aggregate exports of Rs.20 crore,
Rs.100 crore, Rs.500 crore, Rs.2500 crore and Rs.10000 crore respectively over a period of four years.
Backgrounder on Status Holders / Star Export Houses
Merchant as well as Manufacturer Exporters, Service Providers, Export Oriented Units (EOUs) and Units located
in SEZs, Agri Export Zones (AEZs), Electronic Hardware Technology Parks (EHTP), Software Technology Parks
(STPs), and Bio Technology Parks (BTPs), are eligible for applying for status as Star Export Houses. Under this
scheme, the applicants are granted the status depending on the total FOB / FOR export performance during the
current plus previous three years as follows:
Old category Earlier performance criteria
(Rs. Crore)
New category New performance criteria (Rs.
Crore)
One Star Export
House
15 Export House 20
Two Star Export
House
100 Star Export House 100
Three Star Export
House
500 Trading House 500
Four Star Export
House
1500 Star Trading House 2500
Five Star Export
House
5000 Premier Trading
House
10000

4. *********
Date: Apr 01, 2002 Facilities to Status Holder Exporters
-Credit to the EEFC account
A.P.(DIR Series) Circular No.34 (April 01, 2002)
RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
A.P.(DIR Series) Circular No.34
April 01, 2002
To
All Authorised Dealers in Foreign Exchange
Madam /Sirs,
Facilities to Status Holder Exporters
- Credit to the EEFC account
Attention of authorised dealers is invited to the provisions contained in the Schedule to the Reserve
Bank Notification No FEMA10/2000-RB dated May 3, 2000, permitting the residents to maintain
Exchange Earners’ Foreign Currency ( EEFC) account with authorised dealers in India.
2. It has now been decided that the exporters with proven track record who have been certified as
"Status Holder Exporters" in terms of the EXIM Policy ,may be permitted to credit amount upto 100%
of their eligible receipts of foreign exchange to their Exchange Earners’ Foreign Currency ( EEFC)
account.
3. It is clarified that the facility will be available in respect of the foreign exchange received by the
exporters on or after April 1, 2002, till further notice.
4. Necessary amendment to the Foreign Exchange Management Regulations is being notified
separately.
5. Authorised Dealers may bring the contents of this circular to the notice of their constituents
concerned.
6. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of
the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager

5. Export of Goods and Services -
Facilities to Status Holder Exporters
Attention of authorised dealers is invited to A.P. (DIR Series) Circular No. 12
dated September 9, 2000, containing directions regarding Export of Goods and
Services.
2. With a view to simplifying the procedures regarding exports, it has been decided to
extend the following facilities to the exporters with proven track record who have been
certified as “Status Holder Exporters” in terms of the EXIM Policy : -
(i) Despatch of Shipping Documents: In terms of paragraph C.7 of A.P.(DIR
Series) Circular No. 12 dated September 9, 2000, authorised dealers have been
advised to accede, in certain cases, to the requests of the exporters for despatch
of documents direct to the consignee. It has now been decided that authorised
dealers may permit the exporters with proven track record who have been
certified as “Status Holder Exporters” in terms of the EXIM Policy, to despatch
the export documents direct to the consignees outside India subject to the
conditions that (a) the export proceeds are repatriated through the authorised
dealer named in the GR form and (b) the duplicate copy of the GR Form is
submitted to the authorised dealer for monitoring purposes, by the exporters
within 21 days from the date of shipment of export,
: 2 :
(ii)Enhancement in normal period for realisation of export proceeds –
In terms of the second proviso made to Regulation 9 of Notification
No.FEMA 23/2000-RB dated May 3, 2000,the Reserve Bank has been
empowered to extend the period of six months for realisation and repatriation of
export proceeds to India. It has now been decided that the exporters with proven
track record who have been certified as “Status Holder” in terms of the EXIM
Policy, realise and repatriate the full value of export proceeds within a period of
twelve months from the date of shipment.
These facilities will be available in respect of the shipment made on or after April 1,
2002.
3. Necessary amendments to the Foreign Exchange Management Regulations are being
notified separately.
4. Authorised Dealers may bring the contents of this circular to the notice of their
constituents concerned.
5.The directions contained in this circular have been issued under Section 10(4) and
Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager

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7. 2]role of CFA in shipping:
Products Related to Clearing forwarding agents
Clearing & Forwarding Agents
Under the strict supervision of our experts and experienced professional we are
offering Clearing And Forwarding Agents service to varied client. Our services
are well appreciated by our clients for their efficient and timely execution. We
also meet customized requirement and guarantee the safety of goods that are to be
loaded. We have been serving...more
Ab Sea Container Pvt. Ltd.
Address : F-85, F-86 & F-87, Vishkarma Colony, Tuglakabad, New Delhi -
110044, India
Phone : 91-11-26369640/26362640
Mobile : +919312780502
Fax : 91-11-26369640/26362640
Send Email View Details
Clearing & Forwarding Agent
We provide air, sea logistics and distribution services as well as purchase order
management and ancillary freight services in addition to freight forwarding and
Customs Brokerage. Our freight department has many years of experience in all
types of commodities and can ship your goods to just about any country quickly
and cost-effectively, utilizing...more
Grand Palm International
Address : 45, Vijayalakshmi Nagar, Nelikonampalayam Road, Varatharajapuram,
Coimbatore - 641014, Tamil Nadu, India
Phone : 91-4320-241800
Mobile : +919500908433
Fax : 91-4320-241015
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formulated business model allows our clients to buy services from our existing members rather than
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