Presentation on Exim Procedure & Doc conducted at Ruby Fashion

8/12/2019 Presentation on Exim Procedure & Doc conducted at Ruby Fashion

http://slidepdf.com/reader/full/presentation-on-exim-procedure-doc-conducted-at-ruby-fashion 1/16

UNDER TAKEN AT RUPY FASHIONS

UNDER THE SUPERVISION OF

MR. S. P. CHOPRA (M.D)

M A D E B Y :N I K I T A S A G A R

M I B 2 N D Y R

J A M I A M I L L I A I S L A M I A

Summer Internship Presentationon Export & Import Procedures

and Documentations



Objectives of The Study

To Understand the working of various Departmentsof Rupy Fashions contributing towards theprocessing of export orders.

To understand the role of merchandiser. To study import procedure.

To study export procedure and documentation.



Research Methodology

Primary Data

Qualitative research done through in-depth interview.

For interviews non-structured open ended questions wereused.

Secondary data Both internal and external research was done.

For internal research ready to use documents available withthe organization were used.

For external research internet website and published book were consulted.



Company Overview

Rupy Fashions is engaged in manufacturing and exports

of ready made garments and home furnishing items in

international markets.

The entire Organization works on a single EPR system, which unifies all the departments working.

The company has grown from leaps and bounds from a

simple fabrication to a present turn over of Rs 27 Crores,

around 670 employees and spread over 2 locations.

It has manufacturing units in two different states of India

viz. Delhi, Uttar Pradesh.



Departments at Rupy fashions

Yarn Department

Knitting Department

Washing and Dyeing DepartmentCutting Department

Stitching DepartmentFinishing & Packaging Department



Role of Merchandiser

The merchandising department acts like liaison between the buyer and manufacturing division.

The company's marketing team endeavors to

enhance its share of business with existing customersand expand the customer base.

The company receives order from customer by: Growth in business from existing customers new customers

developed through cold calls, trade fair meetings. Walk in customers



To Understand the Import Procedure

Sourcing Dept. Forwarded to merchant

Sourcing Dept. obtains raw material (fabric) from CHA

Documents CHA prior to arrival of vessel for custom clearance

Booking Confirmed

Expected Time On Delivery & Expected Time of Arrival to Sourcing Dept.

Accordingly place Booking with FORWARDED for Import Shipment (Ex:- Air, Sea)

Check Shipment Term

If License, One Copy sent for license processing

Check whether INDENT is licensed or Duty Payable

INDENT (received from sourcing Dept.)



To Understand the Export Procedure

One Set of Consignee + Original Docs received from forwarder set to A/C

Check LEO (Let Export Order)

Follow up of original document form CHA/FORWARDER

Get Debt Note + Draft

SEA: Depends on Buyer either Sent Directly or Handover forwarder

Original consigner set to be Handover to CHA/Forwarder (AIR: Consigner set with shipment + Custom Document)

Cargo will be sent by Dispatch dept. to CHA – Final Paper ( Invoice, Packing list, Booking Template(for CHA) with shippingletters of instruction (for Forwarder)

Receiving of final packing list form Packing Dept./ Production Dept.

Check Cutoff date (Inform Merchant)

Booking with forwarder with provisional – Invoice – Packaging list (PL) – Booking Templates Not for Online

Booking Template

Provisional Packing list (from Production Dept.)

Invoice Generation on the basis of P.O. Garment sample with wash care

Procedure - Requisition Form(Planning Form) -Purchase Order (Check Shipment Date) – Garment Sample with wash carefor drawback

Pre- Shipment



EXPORT DOCUMENTS

INVOICEIt is prepared by an exporter and sent to the importer for necessary acceptance. When the buyeris ready to purchase the goods, he will request for an invoice. It is of 3 types: Commercial Invoice

Consular invoice

Custom Invoice

Packing ListIt shows the details of goods contain in each parcel or shipment. It indicates the type ofpackage, such as box, crate, drum or cartons. Both commercial stationers and freightforwarders carry packing list forms.

Certificate of Inspection

It is the type of document describing the condition of goods and confirming that they have been

inspected. It is required by some purchasers and countries in order to attest to thespecifications.

Certificate of Origin

Importers in several countries require a certificate of origin without which clearance to importis refused. The certificate of origin states that the goods exported are originally manufactured inthe country whose name is mentioned in the certificate



GSPIt is generalized system of preference. It certifies that the goods being exported have

originated or been manufactured in particular country. It is mainly useful for takingadvantage of preferential duty concession, If available. It is applicable in countriesforming European Union.

IEC CertificateIt is an import-export code certificate issued by DGFT, Ministry of Commerce and Govt.of India.

It is 10 digit code number. No exports or imports will be affected without IEC code. It ismandatory for every exporter.

Wearing Apparel Sheet

It is like a checklist which gives the detail regarding the contents and design of thegarment packed. And it is prepared in packing or production dept.. It is also contains tothat information which is mentioned in the purchase order.

Bill of Lading A bill of lading is document issued by a carrier which details a shipment of merchandizeand gives title of that shipment to specified party. Bills of lading are one of threeimportant documents used in international trade to guarantee that exporters receivespayment and importers receive payment.



AIRWAY Bill

It is also known as air consignment note. It is receipt issued by an airline for the carriageof goods. As each shipping company has its own bill of lading, so each airline has its ownairway bill. Airway bill is not treated as a document of title is not issued in negotiableform.

MATE’s Receipts

Its is receipt issued by the commanding officer of the ship when the cargo is loaded on aship. It is the evidence that goods are loaded in a vessel. It is first handed over to the porttrust authorities. After making payment of all port dues, the exporter or his agent collectsthe MATE’s Receipt from the port trust authorities. It is freely transferable and it must behanded over to the shipping.

Shipping Bill

It is the main custom document, required by the custom authorities for grantingpermission for the shipment of goods. The cargo is moved inside the dock area only after

the shipping bill is duly stamped, i.e, Certified by the customs. Shipping bill is normallyprepared in 5 copies.

A Letter of Credit

It is a promise to pay. Bank issues letter of credit as way to ensure sellers that they willget paid as long as they do what they have agreed to.



LIMITATIONS OF EXPORT

DOCUMENTATION

Although export documentation is an inevitable part of execution ofexport order, there are some limitations associated withdocumentation aspect.

Export documentation is a very tedious and cumbersome and

complex procedure as no. of documents required to be prepared at various stages of export is very large, thereby making the task ofexporter very difficult. Any small discrepancy in any one of thedocuments may result in the cancellation of the export order ornon-payment of export money.

Apart from the no. of documents being large, are more difficulty isthat the no. of authorities to which these documents are required to

be submitted is also large, thereby compounding the problem ofexporter.



FINDINGS

Organization’s depts. are not working productively because the workload of one department is burdenedonly on a single employee.

The Merchandising Department acts like liaison between the Buyer and Manufacturing division

Organization is not very much cleared about importprocedure, This is the reason they are not indulge in

imports. Export procedure and export documentation is an

inevitable part of execution of export orders.



CONCLSION & SUGGESTIONS

A common complaint made by the bankers is that the documentssubmitted by exporters are often either incomplete or incorrect.This leads to delay or even refusal of payments.

To avoid these delays, it is necessary to be very careful aboutdocuments, particularly in a case of letter of credit. It is necessary tocheck that letter of credit: Is of the type agreed ex: Irrevocable and confirmed or just irrevocable

Has an expiry i.e sufficiently far ahead for the goods to be shipped and requireddocuments obtained and presented in time.

A central coordinating authority is to be set-up to look intooperational aspects and liaison among various departments.

Use of the latest communication tools should be encouraged forspeedy access to relevant information and instant approval.



Continued……

A database of all the relevant proceduralrequirements and other technicalities ofdocumentation should be maintained for quickreference as and when required.

Liasioning authorities must be established to carrythe firm's voice to the Government in the face ofchanged policies.

