1. GRD COLLEGE OF COMMERCE AND INTERNATIONAL BUSINESS
DR.G.R.DAMODARAN COLLEGE OF SCIENCE
(Autonomous, Affiliated to Bharathiar University and Re accredited with ‘A
‘grade by NAAC)
CIVIL AERODROME POST, AVINASHI ROAD, COIMBATORE-641014
INTERNSHIP PROGRAMME REPORT ON
“CUSTOM CLEARANCE PROCEDURE OF PRIME
LOGISTICS (MUMBAI) Pvt. Ltd.”
Submitted by
JOSEPH SHEFFIN
13MIB020
Submitted in the partial fulfillment of the requirement for the award of the
degree
MASTEROFINTERNATIONALBUSINESS
2014

2. ACKNOWLEDGEMENT
I express my sincere thanks DR.K.K RAMACHANDRAN Director, G.R.Dcollege of
science for providing me this opportunity to take up this internship training.
I am very thankful to all employees PRIME LOGISTICS (MUMBAI) Pvt. Ltd.,
Cochin for supporting and providing me the necessary knowledge that would help in our
future quests. During our training period, we have not only learnt the standard Custom
Clearance procedure but also learned about other aspects of for running the logistics
departments smoothly.
I acknowledge that I am deeply indebted to my professor and Guide,
Mr. Muthamizhvendan Murugavel, Faculty in Accounting, for esteemed guidance, expert
observations and timely advice on the mode of organization and presentation of the
research.
I also express my sincere thanks to who guided me throughout my report.
Lastly my special thanks to all my family members for being extremely
supportive during my training period.
.
JOSEPH SHEFFIN

3. DECLARATION
I know that training is for the development and enhancement of the knowledge in particular
fields. It can never be possible to make a mark in today’s competitive era only with
theoretical knowledge when industries are developing at global level, practical knowledge of
administration and management of business is very important. Hence, practical study is of
great importance to PG student.
With a view to expand the boundaries of thinking, I have undergone 3rd
SEM TRAINING at
PRIME LOGISTICS (MUMBAI) Pvt. Ltd. I have made a deliberate to collect the
required information and fulfill training objective.

4. EXECUTIVE SUMMRY
As a partial fulfillment of all PG students are required to undergo training for 1 month. With
respect to that I have prepared this project report on “Custom Clearance Procedure of
Prime logistics (MUMBAI) Pvt. Ltd.” undertaken at Prime logistics (MUMBAI)
Pvt. Ltd., Cochin.
I 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 Cochin.
Another objective is to know Documentation process done by CHA (Clearing House Agent)
to clear the goods from CUSTOM.
My secondary objective is to know the relation between CHA and importer as well as
exporter. The report also describes that why shipping line invest their amount to purchase
ship and type of ship for transportation of goods.
This report also tells that as that how to calculate the DUTY on import-export goods. I also
describe that which Documents are useful for the CHA, IMPORTER and EXPORTER.

5. OBJECTIVE OF THE STUDY
 To know the present scenario in Indian shipping line.
 To know the relation between the CHA and exporter as well as importer.
 To know the documentation process done by the CHA.
 To know the future of Indian shipping.

6. CONTENTS
Description Page No.
Acknowledgement
Preface 3
Executive Summary 4
Objective of the Study 5
List of tables 7
List of figures 8
Abstract
1. Introduction 9
1.1 Project 9
1.2 Industry 10
1.3. Company 27
2. Methodology 30
3. Data Collection and Explanation 31
3.1 Export 32
3.2 Import 45
4. Recommendations 53
5. Conclusion 54
Appendices 55
Bibliography 56

7. LIST OF TABLES
Sl No. Table Title Page No.
1 Performance of Major Ports 12
2 Company details 28
3 Director’s list 28

8. LIST OF FIGURES
Sl No. Table Title Page No.
1 Cochin Port Logo 11
2 Cochin Port 16
3 Container Ship 18
4 Roll – on / Roll - off Ships 19
5 Break-Bulk Ships 20
6 Crude Carriers 21
7 Dry-Bulk Carriers 22
8 Gas Carriers 23
9 Export procedure 36
10 Import procedure 45

9. 1.1 INTRODUCTION
In view of the rapidly and constantly changing business environment globally and fast
evolving trade and commerce scenario 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.
Prime Logistics (Mumbai) Pvt. Ltd. is a leading name for custom clearance. Over the years
they have operated smoothly with their wide spectrum of personalized services.

10. 1.2 INDUSTRY
INDIAN SHIPPING SCENARIO
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.
As on April 1, 2005, India has a total of 686 ships comprising 8.01 Million Gross Tonnage
(GT) and 13.28 Million Dead Weight Tonnage (DWT). The shipping corporation of India
(SCI), the country’s largest carrier, owns and manages 82 ships with 2.54 million GT and
accounts for 40 percent of national tonnage. India is also among the few countries that offer
fair and free competition to all shipping companies for obtaining cargo. There is no cargo
reservation policy in India.
Indian shipping has remained a deferred subject till independence. Only after independence,
the development of shipping has attracted the state policy. The subject of shipping, in the
beginning, has been dealt with by the ministry of commerce, till 1949 and subsequently, in
1951, it has been shifted to the ministry of transport and shipping. In 1947, the government of
India has announced the national policy on shipping, aiming at the total development of the
industry. In order to accelerate the developmental efforts, the necessity for a centralized
administrative organization has been felt. Accordingly in September necessity for a
centralized administrative organization has been felt. Accordingly in September 1949, the
directorate general of shipping with its headquarters at Bombay has been established with the
objectives of promotion and development of Indian shipping industry.

11. INTRODUCTION TO COCHIN PORT
Cochin is the fastest growing maritime gateway to peninsular India. An all weather natural
Port, it is located strategically close to the busiest international sea routes from the Gulf to
Singapore and Europe to the Far East circuits. The port is spearheading fast track maritime
and industrial growth in the large geographical spread of its economically vibrant hinterland.
The logistically sensitive port is emerging as the most preferred investment destination for
maritime commerce.
OUR VISION
To emerge as a major Hub port in the Indian Ocean region by offering the entire maritime
related services at international bench marks.
OUR MISSION
The Cochin Port Trust is committed to provide dependable and cost – effective Port service
through modern and efficient infrastructure coupled with high quality customer friendly
services. The Port shall manage its assets and resources for optimal economic use to the
nation and the community. The Port shall strive to be main catalyst for the economic
development of the region, with a strong commitment to environmentally sound policies and
safe practices. The Board of Trustees, the employees and the stakeholders of the Port shall
work as a team in an open, positive, collaborative and cooperative manner. In pursuit of this
Mission, the port trust shall be guided by the principles of integrity, ethical behavior,
professional excellence, service to the community and respect for every individual
.

12. SERVICES OFFERED BYTHE DEPARTMENTS
1. Traffic Department
• Allotment of berths to cargo, Cruise vessels and passenger ferries.
Berthing Meeting is conducted on all working days under the chairmanship of the
Traffic Manager for planning the berthing and sailing of all vessels calling at Cochin
Port. This meeting is attended by the port users who are handling ships. Berths are
allotted as per priority in accordance with the Govt. guidelines.
• Cargo handling operations at wharves.
Cochin Port facilitates handling of general cargo at wharves through supply of Port
Labour to the stevedores. Liquid bulk is handled at specified berths, whereas
containers are handled by M/s. DP World at the licenced terminal. Various quality
objectives have been set for the services rendered, which are monitored on a regular
basis.
• Receipt, storage and delivery of cargo from Port’s storage spaces.
Cargoes are stored at various open and covered notified storage spaces at the
Ernakulam Wharf and Mattancherry Wharf. Import cargoes are delivered to the
consignee or their representatives after complying necessary Customs and Port
formalities. Export cargoes are received for stuffing into containers for export at the
CFS and also for non-containerized shipment. Vast area of open and covered non-
bonded storage space is also available outside the Wharf area for stacking cargo.

13. • Recommending the issue of pass to various areas.
Yearly, monthly and daily passes are issued to Port users from Cochin Port CISF Pass
section after due recommendation from the Traffic Department.
A Single Window facility is available at the pass section at North End and near Q9
gate, where Officials from Traffic, Accounts, and CISF are available under one roof
to issue permits.
• Reception of cruise vessels and passengers.
A dedicated cruise cell is operating under Asst. Traffic Manager Ernakulam
Wharf where in the following facilities are provided.
o Facilitating shore tour packages for tourists by local tour operators.
o Pre-paid counters for taxi and auto-rickshaw for the passengers availing local
tours.
o Facilitating Passenger embarkation / disembarkation procedures.
• Management of Port Operation System module (POS)
Cochin Port operates fully under the ERP Environment. Both vessel and cargo
operations are handled in POS module. Port users can get registered in the Port
Community System and their online application for services can be processed by the
Cochin Port on real time basis.
• Licensing of temporary storage area.
Temporary license is issued for stacking cargo at open/covered storage space on
weekly rental basis.
• The Traffic Department serves the following classes of Port Users:-
o Shipping Lines and their Agents
o Importer/ Exporter and their Agents
o Business Visitors to the Port
o Port Employees and Pensioners
2. Marine Department
• Piloting of vessels in and out of the port
• Berthing/ sailing of vessels and interim bill generation.
• Control of the oil spillage
• Prevention of fire occurrence and control in the event of occurrence.
• Water supply by barge and generation of bills.
• Hiring of floating crane, fender, pontoons and buoy tender and generation of bills
3. Civil Engineering Department
• Planning, designing and execution for development of Port infrastructure.
• Maintaining the civil infrastructure.
• Registration of civil contractors into various classes.
• Maintenance of sanitation of the Willington Island area under the Port Trust.

14. • Water supply to the Port operational areas, quarters and the lessees and generation of
bills.
• Maintenance of roads and other traffic ways in the Port area and in the
• Willington Island.
4. Finance Department
• Vessel, Cargo & Lease related services
• Settlement of Claims
• Maintenance of deposit accounts of Port Users
5. Mechanical Engineering Department
• Operation and maintenance of Cargo handling equipments.
• Repair and maintenance of Port’s equipments, floating crafts and navigational aids.
• Procurement of equipments and Floatillas.
• Purchase of spares, stores, consumables and inventory management.
• Execution of Mechanical projects.
• Dry Docking of Floating crafts owned by external agencies.
• Disposal of written -off equipments of CoPT.
• Distribution of electricity to all consumers in Willingdon Island and Port
• Based Special Economic Zone at Vallarpadam and Puthuvypeen.
• Alternative Maritime Power to vessels subject to technical suitability to reduce air
pollution and cost of fuel.
• The electric power is purchased by Port in bulk from KSEB and distributed to all
customers in and around Willingdon Island. The power is received from KSEB at
110KV at the substation installed at Mattancherry Halt. Similarly Port has obtained
license for distributing power at the Port Based SEZ areas at Vallarpadam and
Puthuvypeen. Port has installed a 11 KV substation at vallarpadam.
6. Medical Department
Cochin Port has a Multi Specialty Hospital having a capacity of 150 beds and is controlled
and managed by the Chief Medical Officer with the assistance of 15 full time Medical
Officers, 24 Visiting Specialists and 5 Super Specialists to attend the health care of Port
employees and their dependents, DLD Employees and their families, CISF personnel and
their dependents, Pensioners and their spouses and other Central Government Employees
posted in Willingdon Island.
The I.C.U of this hospital is provided with 7 beds with monitoring system centralized Oxygen
system round the clock assistance of trained staffs. The Port Trust Hospital has full- fledge
Obstetric and Gynace department which is also an approved family planning centre. Family
Planning Operations, M.T.P, Laparoscopic Sterilizations are done here. This section has all
modern facilities like Air conditioned Labour Room, Photo Therapy Unit and foetal monitor
for recording foetal heart rate and uterine contractions and Ultra Sound Scanner with
Obstetric and Gynace package and transvaginal transducers. The dependants of Port
Employees staying with them in Port quarters are allowed to conduct their deliveries in Port
Hospital in approved rate. Latest Biochemistry Analyser & Hormone assay machine of M/s.

15. Johnson & Johnson are utilized in the Hospital Laboratory for accuracy and efficiency. The
School of Nursing is functioning from 1999 i.e.20 students enrolled every year. A Self
contained dispensary has been functioning at the Port Work Shop and 6 Nos. First Aid posts
were located at the different operational areas of the Port Trust. The Occupational Health
Centre examines the physical fitness of our workers of Traffic Marine and Mechanical
Department. Regular health check-up of students of Nursing School and Kendirya Vidlaylaya
undertaken by Port Doctors.
7. General Administration Department
The General Administration Department of Cochin Port Trust deals with the entire gamut of
recruitment, seniority and promotion of port personnel. It also advises the other departments
on policy matters relating to Human Resources, Administration, Legal, Industrial Relations,
Reservations for SC, ST, OBC, PH etc. It imparts regular functional trainings to port
personnel to keep their knowledge in the respective fields up-to-date and keep them
motivated. General Administration Department maintains cordial relations with the unions
operating in the Port with a view to have harmonious industrial relations scenario in the Port.
Public Relations Division under Genera
l Administration Department keeps the employees and general public well informed on
various developments happening in the Port and disseminates information through various
means from time to time. Apart from this, matters related to RTI and issuance of annual toll
passes for vehicles plying in the port area is also carried out by this Department. Estate
division of general Administration department deals with management of Port’s land. The
main function is allotment of land on lease and license basis, giving priority to port related
activities, as per the Gov. Land policy guidelines. Only online applications will be considered
for lease/licence and renewal of the same. Bills are generated through REM module of SAP.
8. Grievance Redressal Mechanism
The officials of the Port Trust will act courteously, fairly and reasonably in all their official
dealings. The documents and procedures used in conduct of business have been made simple
and user friendly. The Port Trust has published the scale of rates for various services
rendered. The Port Trust has imparted training to the staff to render adequate level of service.
However, in the event of any dissatisfaction on the services rendered, the Port has laid down
procedures for fair and expeditious handling of customer’s grievances. In case of any
difficulty in transactions, the customer may approach the officer concerned or the Head of the
Department who will ensure that the customer’s need is attended to. However, if this does not
happen, customers may lodge written complaint at the Chairman’s Office. A copy of the
complaint shall be returned to the customer with acknowledgement of receipt. Our efforts
will be to ensure that the redressal of the complaint takes place expeditiously and in any case
within a maximum period of three weeks. If, for any reason, the office is not able to redress
the grievances within three weeks, the customer will be informed of the reasons and action
taken for early redressal.

16. Cochin Ports

17. SHIPPING COMPANY
“Shipping Company is companies which invest his capital in purchase of ships and provide
transport service through the sea to its customers is known as shipping company.”
Basically the shipping companies provide services in two ways
1. TRAMP SHIPS
2. LINER SHIPS
TRAMP SHIPS
Tramp ship or general trader, does not operate on a fixed sailing schedule, but merely trades
in all parts of the world in search of cargo, primarily bulk shipments. It is a chartered ship
prepared to carry anything anywhere. Its cargoes include coal, grain, timber, sugar, ores,
fertilizers, etc like which are carried in complete shiploads.
Tramp tankers are specialized vessels. They may be under charter or be operated by an
industrial company, that is oil company, motor manufacturer, etc to suit their own
individual/market needs.
LINER SHIPS
Liner ship operates on a fixed route between two ports or two series of ports. They operate on
a regular scheduled service. They sail on scheduled dates/times whether they are full or not.
The cost of using the service (freight) can be quoted from a fixed tariff.
Container ships in deep sea trades and roe ship in the short sea trades feature prominently in
this field.

18. DIFFERENT TYPES OF SHIPS
1. Container ships
2. Roll-on/roll-off ships
3. Break-bulk ships
4. Crude carries
5. Dry-bulk carriers
6. Gas carriers
CONTAINER SHIP
 Container ship is also known as a ‘BOX SHIP’
 Container ships cater to only containerized cargo and generally have cranes on board.
They can store up to 4 tiers of containers below the main deck and up to 3 tiers above
deck.

19. ROLL – ON / ROLL - OFF SHIPS
 Roll-on/roll-of ships were created to accommodate cargo that was self propelled,
such as automobiles or trucks, or cargo that could be wheeled into a ship, such as railroad
cars. They are essentially floating garages. It takes long time to load such vehicles over
the rail it is preferable to load them by rolling them onto the ship.
 Roll-on/Roll-of ships therefore have a portion of their hull that opens up and acts as a
ramp on which the vehicles are driven before being parked on the many decks of the ship
and secured with chains. The hull opening is either on the side of the ship or on its stern
(rear).This ship have an advantage in that specialized lifting equipment is not required,
even for the heaviest of loads, since the cargo rolls under its own power or pulled by a
tractor.

20. BREAK-BULK SHIPS
 Break-bulk cargo ships are multipurpose ships that can transport shipments of unusual
sizes, unitized on pallets, in bags, or in crates.
 Due to increasing role of RORO (Roll-on/Roll-off) ships, container ships, break-bulk
ships share of international trade is decreasing.
 The advantage of break-bulk ships is that they can call at just about any port to pick
up different kinds of cargo loads, giving them a flexibility that container ships do not yet
have.
 The main problem with a break-bulk ship stems from its labor-intensive loading and
unloading because each unit of cargo handles separately.

21. CRUDE CARRIERS
 Crude carriers are the bulk ships dedicated to the transport of petroleum products,
whether unrefined or refined, such as gasoline or diesel fuel.
 The crude carriers are also known as VLCC (Very Large Crude Carriers) and ULCC
(Ultra Large Crude Carriers).
 VLCCs and ULCCs are such large ships that they can call on only a few ports in the
world; since their draft, when loaded, can reach 35 meters(115 feet) they need very deep
ports for berthing.

22. Dry-Bulk Carriers
 Dry-bulk carriers operate on the same basis as oil tankers in that they are chartered for a
whole voyage.
 Dry-bulk ships have several holds in their hull, in which non-unitized cargo is placed.
 Dry bulk ships carry agricultural products, such as cereals, as well as coal, ores, scrap
iron, dry chemicals, and other bulk commodities.
 Dry-bulk ships are generally small enough to fit through the PANAMA CANAL.
GAS CARRIERS

23.  Another important bulk trade is the transportation of Liquefied Natural Gas (LNG) and of
Liquefied Petroleum Gas (LPG). These types of carriers have a very distinctive shape.
These ships hold several spheres of compressed gasses, only part of which are visible
above their main deck.
 The LNG and LPG trades tend to be slightly different than the average bulk transport, as
they are used in a particular trade for long periods of time, on long-term contracts-called
time charter parties and therefore nearly have a sailing schedule, not unlike liner ships.
CONTAINERIZATION
‘Containerization’, the term very familiar to present day shipping industry is a completely
unknown concept, a few decades back. Malcolm McLean, owner of a huge trucking company
in USA, who has first conceived the idea of containerization by transporting containers
though ‘ideal-x’ in 1956 and initiated a revolution in the history of shipping industry.
Before containerization, cargo has to be loaded first into the truck and later truck is to driven
to the port, unload the goods at the port and them into the ship at the port. This has been a
cumbersome process and, in consequence, consumed a lot of time. For completing the

24. exercise, ships are detained in the port for about ten days for the entire process of unloading
and loading. With the arrival of containerization, shippers have started stuffing into
containers, at their own place, and containers are brought to the container yard (inland
container depot) for shipment. This process has greatly facilitated in two, after unloading the
containers and loading them again into the ship. The process of containerization has
decongested the ports that are heavily crowded.
Shipping is truly the lynchpin of global economy and international trade. More than 90% of
world merchandise trade is carried by sea and over 50% of that volume is containerized. In
today’s era of globalization, international trade has evolved to the level where almost no
nation can be self-sufficient and global trade has fostered an interdependency and inter-
connectivity between countries. Shipping has always provided the most cost-effective means
of transportation over long distances and containerization has played a crucial role in world
maritime transport.
What is meant by containerization?
Containerization is the practice of carrying goods in containers of uniform shape and size for
shipping. Almost anything can be stored in a container, but they are particularly useful for the
transport of manufactured goods. It is a method of distribution of goods using containers. The
use of containers has, indeed, facilitated carriage of goods using containers. The use of
containers has, indeed, facilitated carriage of goods. Exporters need to go to the seaport for
export of goods. Instead the goods sent to inland container depot/ container freight station for
sending to the destination.
Since 1950s, containers have revolutionized sea-borne trade, and now carry around 90% of
all manufactured goods by sea. The transporters in developed countries have started making
use of containerization, early now; developing countries have started making use of
containerization, early. Now, developing countries too are taking a greater advantage in using
containers for transportation of goods. Different countries are giving logistic support, giving
the necessary boost to improve the required infrastructure to containerization, for
encouraging export industry.

25. Challenges Container port demand and capacity imbalance:
In view of the buoyant global merchandise trade scenario, container port demand has been
growing rapidly. Globalization has spurted merchandise trade, which is ready for big stride.
During the last four years, world container traffic has been growing at over 9.2% per annum,
while container port capacity is growing at an average 4.5% per annum. The projected global
container demand and container port capacity illustrates that there will be a huge difference
between container port demand and capacity in the next four to five years. This is one of the
major challenges for global container trade. Extra capacity should be built to meet the
growing demand.
TYPES OF CONTAINERS
There are different types of containers. The popular types are:
1. General purpose containers-:
There are the most common type of containers and are the ones with which most people are
familiar. Each general-purpose container is fully closed and has width doors at one end for
access. Both liquid and solid substances can be loaded in these containers. Based on length of
the container, the container is generally known as a 20 ft container or 40 ft container, in
practice. Hazardous or dangerous cargo can not be loaded into general-purpose containers.
2. Reefer containers (refrigerated) -:
These play an important role in South - Africa’s exports of perishable products, and are
designed to carry cargoes at temperatures reading down to deep frozen. For refrigeration,
they are fitted with electrical equipment for supply of necessary electricity.
3. Dry bulk containers-:
These are built especially for the carriage of dry powders and granular substances in bulk.
4. Open top/open sided containers-:

26. These are built for heavy and awkward pieces of cargo. These containers are ideal where
height of the cargo is in excess of height of the standard general purpose containers.
5. Liquid cargo containers-:
These are ideal for bulk liquids, such as wine, fruit concentrates, vegetable oils, detergents
and various other non-hazardous chemicals. Bulk liquid bags, designed to carry specific
commodities, can fit into these containers.
6. Hanger containers-:
They are used for the shipment of garments on hangers.
CUSTOM HOUSE AGENT
“Custom House Agent” means a person licensed, temporarily or otherwise, under the
regulations made under sub-section (2) of section 146 of the Customs Act, 1962.
A person is permitted to operate as a customs house agent, temporarily under regulation 8(1)
and permanently under regulation 10, of the Customs House Agents Licensing Regulations,
1984.
The services rendered by the custom house agent are not merely limited to the clearing of the
import and export consignment. The CHA also renders the service of loading/unloading of
import or export goods from/at the premises of the exporter/importer, the packing,
weighment, measurement of the export goods, the transportation of the export goods to the
customs station or the import goods from the custom station to the importers premises,
carrying out of various statutory and other formalities such as payment of expenses on
account of de-stuffing/ pelletisation terminal handling, fumigation, drawback/ DEEC
processing, survey /amendment fees, dock fees, repairing and examination charges, landing
and container charges, statutory labour etc this expenses paid on behalf of importer and
exporter. The CHA is ordinarily reimbursed by the importer/ exporter for whom the above
services are rendered.

27. COMPANY PROFILE
Prime Logistics (Mumbai) Pvt. Ltd was incorporated in the year 2000 with the objective of
providing its clients quality CHA services. Over the years we have evolved into an
organization with a unique blend of international freight forwarding, CHA and infrastructure
products backed by latest I.T initiatives enabling us to handle large and complex assignments
with a complete customer focus and a strong work ethic environment. While the International
Freight Forwarders are the front face of the Logistic Industry, it is the CHA services that
significantly improve the functioning agencies worldwide. In effect they are the
administrative backbone enabling merchandise volumes to rise. We can assist you in all
aspects of International transportation encompassing Import and export LCL / FCL (Sea
freight), Airfreight. Heavy lifts, break-bulk and all allied services. Our job is to make sure
that from raw material to finished goods sitting on the retail shelf, we provide the critical
services and information necessary to give our clients a competitive advantage in the
management of their supply chains. We pride ourselves in being able to offer our clients
competitive pricing. This is accomplished by using our power to negotiate volume programs
with steamship lines and airlines. Our Company strives to gain the respect and ongoing
support of our customers by offering high quality and value added service while maintaining
the highest ethical standards. Our Objective is to perform beyond the expectations of all our
customers in everything we do.
Mission
we committed to providing customers value-added services. We strive to develop a long-term
business relationship with our customer, which is founded on our ability to help identify and
recommend the best solution for each customer's business environment. We strive for
continuous improvement in our relationships with customers and our ability to provide
quality products and solutions to our customer's requirements without losing focus of our
'Right-on-Time' delivery system." Forgive us for the clich, but at Swift Global, providing
quality services at the right cost to our customers is our top priority.
Major items handled Prime Logistics by are as follows:
Exports: readymade garments, engineering goods, rice, textiles, aluminium pots and
coconut.
Imports: consumer goods, fitness equipment, paper mill machinery etc.

28. Company Details
Company Name Prime Logistics (Mumbai) Private Limited
CIN U63000MH2000PTC128811
Registration Date 21-09-2000
ROC-Code Roc-Mumbai
Address1 603,6TH FLOOR,ARJENA CHAMBERS II
Address2 SECTOR 15,CBD BELAPUR,
City Navi Mumbai
State Maharashtra
Country India
Pin code 400614
status Active
Director's List
Director's Name Date Of Appointment Designation
Philip Thomas Varghese 01-05-2006 Director
Harinarayanan Keshavan Nair 01-05-2006 Director
COMPANY ADDRESS

29. Head office of Prime Logistics Pvt. Ltd.:
115, SAI COMMERCIAL CENTRE,
1ST FLOOR, STATION ROAD, GOVANDI (E),
MUMBAI, MAHARASHTRA (INDIA)
Branches:
KOCHI OFFICE:
NIMA HOUSE, VENKITARAMAN ROAD,
WILLINGDON ISLAND, COCHIN
682 003
2. RESEARCH METHODOLOGY:

30. Research as a term stand for “systematic investigation towards increasing the sum of
knowledge”
Research Methodology is the methods involved in gathering meaningful data.
The data which has been collected from various sources can be categorized into two fields
mainly:-
Primary data:-
Primary data collected through personal interview with the employee of the Prime Logistics
Pvt. Ltd and we have initiated our research going through the whole step wise processes of its
routine activities.
Secondary data:-
Secondary data is collected through some good articles of shipping times and some sites from
internet.

31. 3. DATA COLLECTION
AND
EXPLANATION

32. 3.1 EXPORT
Export preliminaries
In order to enter into export business, certain preliminary steps have to be taken by every
business organization. The setting up of an export firm is completed in two stages. They are:
A) Establishing a business firm
There are various formalities and registrations to be made with different authorities before an
exporter can enter into export business and accept an export order.
1) Selection of name of the firm-: An entrepreneur can choose any name for the firm he
wants to start. It is desirable that the name of the firms indicates that the business relates
to export/import.
2) Approval to name of firm-: There is no need to obtain prior approval of regional
licensing authority of DGFT (Directorate General of Foreign Trade) for the proposed
name of business firm. However, if the firm is planning to export readymade garments to
any country; approval from Apparel Export Promotion Council (AEPC) is required. The
entrepreneur has to apply to AEPC in the prescribed application form for the clearance of
the name. Once the name is approved, registration of firm in that name with AEPC is to
be made within a period of three months. After the registration is done, the firm would
become registered exporter.
3) Registration of Organization-: The form of organization can be sole partnership,
partnership firm under Indian partnership act, 1932 or join stock company registered
under the companies act, 1956.
4) Opening of Bank Account-: The firm or company has to open a bank account with
branch of a commercial bank, authorized by reserve bank of India to deal in foreign
exchange. The firm may require pre and post shipment finance for its business.
5) Obtaining Permanent Account Number-: export income is subject to a number of
exemptions and deductions under the income tax act. For claiming those exemptions and

33. deductions, it is necessary for every exporter to obtain permanent account number from
the income tax authority.
6) Registration with Sales Tax Authorities-: exporter need not pay sales tax while
making purchases meant for export. But for availing the benefit, firm has to register with
sales tax authorities and secure sales tax number.
B) Obtaining the importer-exporter code number
This is required for completing other registrations.
1. Importer - Exporter Code Number (IEC)-: No export or import
transaction can be made without obtaining an importer-exporter code number. IEC
number is a pre-condition for exports from and imports into India. IEC number entitles to
import or export any item of non-prohibited goods. This code number is made compulsory
now. The registered /head office of the applicant shall make an application for grant of
IEC number to the regional office of DGFT (known as Regional Licensing Authority),
having territorial jurisdiction over the firm, along with the following documents: profile
of the exporter/importer, demand draft from a bank for rs.1000 as fees, certificate from
the banker of the applicant, two copies of passport size of the applicant, declaration on
applicant’s letterhead that there is no association of the applicant’s firm with caution
listed firms. The licensing authority shall allot the IEC number in prescribed format.
There is no expiry date for iec number. This number is invariably used in all documents
particularly in bill of entry in case of imports and shipping bill in case of exports.
2. Registration Cum Membership Certificate (RCMC) -: it is
obligatory for every exporter to register with appropriate Export Promotion Council
(EPC) and obtain registration cum membership certificate. Any person applying for
import or export license or any other benefit under the current exim policy is required to
obtain registration cum membership certificate (RCMC). The benefits provided in the
current EXIM policy are available only to those having valid RCMC with the receipt of
the certificate the exporter will be known as “Registered Exporter”
3. Registration with Export Credit and Guarantee Corporation
(ECGC)-: the exporter should also register with export credit and guarantee corporation of
India (ECGC) in order to secure export payments against political and commercial risks.

34. It also helps to get financial assistance from commercial banks and other financial
organization.
4. Registration with other authorities -: it is desirable for the
exporters to become members of local chamber of commerce, productivity council or any
other trade promotion organization recognized by the ministry of commerce or industry.
Local membership helps the exporters in different ways, including in obtaining certificate
of origin, which is vital for exporter to certain countries.
5. Registration for business identification number (BIN)-: the
exporters have to obtain pan based Business Identification Number (BIN) from DGFT
(Director General Foreign Trade) prior to filling for custom clearance of export goods.
Purpose of bin is to bring a common identification number to all persons dealing with
various regulatory agencies such as custom department, central excise etc.
6. Export Licensing -: many items of goods are free for exports
without obtaining any license, if they do not fall in the negative list. The negative list
consist of goods the import or export of which is prohibited, restricted or canalized.
Prohibited items-: these items can not be exported or imported. These items include wild
life, exotic birds, wood and wood products in the form of logs, timber, pulp and charcoal.
Restricted items -: these are the items, export or import of which is restricted through
license. They can be imported or exported only in accordance with the regulations
governing in this behalf.
Canalized items -: goods which are canalized can be imported or exported through the
canalizing agency, specified in the negative list.
So it is necessary for the exporter to check the nature of the item before he enters into the
contract or even makes efforts to secure the export order. Needless to add, the items of export
agreed upon should not be fall in the negative/ banned list.

35. EXPORTER’S INCENTIVES & DRAWBACK
Incentives & facilities:
Advance license -: inputs required for manufacturing export products can be imported
without payment of custom duty under advance license. Since the raw materials can be
imported before exports of final product, the license issued for this purpose is called
“advance licenses”. An advance license is issued under duty exemption scheme to allow
import of inputs, which are physically incorporated in the export product.
Duty free replenishment certificate (DFRC):- DFRC is issued to a merchant exporter or
manufacturer exporter for the duty free import of inputs such as raw materials, components,
intermediates, consumables, spare parts, including packing materials to be used for export
production. Such license is given subject of the fulfillment of time bound export obligation.
Duty entitlement passbook scheme (DEPB) :- under the DEPB scheme, an exporter
may apply for credit as a specified percentage of fob value of exports, made in freely
convertible currency. The credit shall be available against such export products and at such
rates as may be specified by the director general of foreign trade (DGFT) by way of public
notice issued in this behalf, for import of raw materials, intermediates, components, parts,
packaging materials, etc.
Export promotion capital goods scheme (EPCG) :- EPCG scheme was introduced by the
EXIM policy of 1992-97 in order to enable manufacturer exporter to import machinery and
other capital goods for export production at confessional or no customs duties at all.
This facility is subject to export obligation, i.e., the exporter is required to guarantee exports
of certain minimum value, which is in multiple of tit1e value of capital goods imported.

36. EXPORT PROCEDURE

37. The different steps involved in export department are as follows:
Step 1
Exporter sends the following document to Prime Logistics:
 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 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: 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:

38.  SECONDARY CREDIT: In favour 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.
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, Prime logistics 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
Custom 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
Custom examined the cargo by using the sample. (Customs examined the cargo only after the
duty is paid) in case of more than one container in one B/L than A.C give some container no.
randomly for examination and that container must be de-stuff by CHA.

39. 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
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.

40. 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.
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.

41. 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
 Copy of Mate Receipt:
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, which ever 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

42. 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. Than, 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.
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.

43. 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
 ARE 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
 Commercial invoice
 Bill of lading
 Insurance Policy/Certificate
 Bill of exchange
 GR Form (duplicate copy)
 Bank certificate
 Export Inspection Certificate

44.  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
Treasure Challan

45. 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.
It is in four copies
 Original
 Duplicate
 Triplicate
 Quadruplicate
Customs keeps the original and duplicate copies. Triplicate and Quadruplicate copies are sent
to the CHA.

46. 3.2 IMPORT
Import Procedure

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 (Non
Objection Certificate in Cochin Port only).
 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.

48.  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.
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

49. 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
I. Bill of entry for home consumption
II. Bill of entry for warehousing
III. 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.
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.
Calculation of duty in import
The duty has been calculated on the basis of assessable value.

50. 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 then 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.
There are six kinds of duties, which have to be paid at the time of custom clearance in case of
imports those are:
1. Basic Custom Duty
2. CVD
3. Additional cess on CVD
4. Secondary and higher cess on CVD
5. CESS
6. Custom sec & higher education cess
7. Additional Custom Duty
Let us consider that basic custom duty on the ALL ALUMINIUM SCARP is 0%, CVD 8%,
and additional duty is 4%. Say basic custom duty in rupees be X, Additional custom duty be
Y and CVD be Z (12.826688%)
X = 0% of assessable value
Z = Assessable value *8 % (CVD)
Y = Assessable value + 4% of ASS. VAL +Z+ CESS on CVD 2%+ SEC.&HIGHER
EDU.CESS ON CVD 1%+ CUS. EDU.CESS 2+1%
CESS on CVD = 2% of Z
SEC & HIGHER EDU.CESS ON CVD = 1% OF Z
Total duty amount (in rupees) = X+Y+Z

51. CUS. EDU.CESS on Total duty =
2% of Z +EDU.CESS ON CVD+S&H EDU.CESS ON CVD
1% of Z +EDU.CESS ON CVD+S&H EDU.CESS ON CVD
Documents to be used in import
I. Bill of lading
II. Invoice
III. Certificate of origin
IV. 59- Bond warehousing bond
V. Wharf age
VI. Bill of entry
VII. Packing list
VIII. NOC (No Objection Certificate)
IX. Delivery order
X. Treasury challan
XI. 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.
 Packing list

52. Its 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

53. A document internal to the shipping company (the carrier) that lists all cargo onboard the
transportation vehicle.
 Forms AR-4/AR-4A
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.

54. 4. SUGGESTIONS
The custom clearance for import and export cargo is such a long procedure so it takes time to
clear, so the employee must be try to make their work on time and quick.
The customs officers should be more punctual and liberal.
Stuffing work should be done with experts so that no shutout takes place.
There should be separate warehouse in CFS for cut off bills.
The import procedure should me more liberal. All CFS it is very tough in Kochi.

55. 5. CONCLUSION
The Indian business environment is changing with the rapid growth in infrastructure and
technology. With the increasing inflows of multinationals, trade has been increased, which
result in stiff competition between the organizations.
Despite of the stiff competition Prime Logistics Pvt. Ltd known as the leading custom
clearance agent, because of their effective implementation of quality management system and
customer centric approach.

56. APPENDIX

57. BIBLIOGRAPHY
Websites:
www.cbec.gov.in
www.cochinport.com
www.cygnusindia.com/pdfs/CONTAINERISATION%20-%20India%20and%20Global
%20Scenario.pdf
www.projectsmonitor.com/NewsImages/photo%207/Transport%20Table.jpg
Articles:
Daily Shipping News
EXIM