Work Flow of Exim

8/6/2019 Work Flow of Exim

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STERLITE INDUSTRIES Page 1

COMPANY PROFILE

Sterlite industries

Sterlite Industries India Limited (SIIL) is the principal subsidiary of VedantaResources Plc, a diversified and integrated FTSE 100 metals and mining company,

with principal operations in India and Australia. Sterlite is Indias largest metals

and mining company and is the one of the fastest growing private sector

companies. Sterlite is listed in BSE, NSE, and NYSE. It was the first Indian metals

and mining company to be listed on the NYSE. As the largest metals and mining

group in India, Sterlite remains continually committed to managing its business in

a socially responsible manner.

Vision 2015:

To be the worlds leading copper producer delivering sustainable value to

all stakeholders by leveraging technology and best practices .

Mission

To harness technology to its full potential in a safe and clean environment in

the entire business cycle and integrate quality with continuous improvements

To harness the profitable and growing CCR market from 125 KMT to 300

KMT per annum

To achieve and sustain cost leadership in the global market


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The following are some of the highlights of sterlite industries:

Indias first custom based copper smelter

$2b+annual revenue

1200 strong workforce

Sterlite is the only Indian manufacturing company to list on NYSE

Largest contributor to the exchequer of Tamil Nadu

Single largest user of Tuticorin Port

ISO 9001,14001 and 18001certified company

First company in South India to have Secure Land fill (SLF) for solid wastedisposal.


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MANAGEMENT

The significant employees for the company are as follows:

NAME POSITION

Mr. Anil Agarwal - Non-Executive Chairman

Mr. Navin Agarwal - Executive Vice -Chairman

Mr. D D Jalan - Whole Time Director

Mr. BerjisMinoo Desai - Non-Executive Director

Mr. Gautam Bhailal Doshi - Non-Executive Director

Mr. Sandeep H. Junnarkar - Non-Executive Director

Competitive strengths of Sterlite industries:

High quality assets and resources making Sterlite a low-cost producerin copper:

Ideally positioned to capitalize Indias growth and resource potential: Experience for entry into commercial power generation projects: Experienced and focused management with strong project execution

and acquisition skills Ability and capacity to finance world class products.


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Copper business of sterlite:

As a custom smelter sterlite buys copper concentrate at LME (London Metal

Exchange) linked prices and sells the refined copper at the LME linked prices in

the domestic and export markets. The TcRc cost is affected by global concentrate

demand, supply of copper and refining capacity, LME trend and LME linked price

participation and other factors. Sterlite acquires its copper concentrate from global

suppliers and its mine in Australia. Sterlite have a very high efficiency and lower

unit cost which includes reducing the power cost and construction of the captive

power plant in Tuticorin.

Mining

Sterlite Industries (India) Ltd. (SIIL) operates one copper mine in Australia

through its subsidiary.

Copper Mines of Tasmania operates the Mount Lyell Mine in Western

Tasmania, Australia. This is an underground mine and it has an ore resource of

approximately 14.2 million tons of ore at an average grade of 1.3% Copper. Thelife of the mine is approximately 4 years at the current operating rate.

Smelting

Copper concentrates from Sterlite Industries (India) Ltd. (SIIL)s copper

mine is blended with bought out concentrates from other sources and treated to get

optimum results. The Smelter is based on a proven energy efficient and

environment friend ly technology, viz. Isa Process from MIM, Australia, and

world leaders in Copper smelting technology.


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The ISA furnace is a vertical shaft type furnace completely lined with

refractory into which wet copper is charged along with quartz and limestone into

the molten bath. As a result of the chemical reactions that take place in the bath,

the Copper Concentrate gets converted into two products-Matte, a mixture of sulphide (containing copper and iron), and Slag. Matte is taken to the Rotary

Holding furnace where the slag separates out due to differential density. The

Copper Matte is converted into Blister Copper in the Pierce Smith Converter in

two stages

In the first stage, called Slag Blow, most of the iron and a small quantity of

sulphur are oxidized and removed. In the second stage, called Copper Blow,

sulphur is removed to get Blister Copper. Converter Slag is treated in a Slag

cleaning furnace for recovery of copper. Blister Copper is further refined by

oxidation and then by reduction to approximately 99.7% copper purity in the

Anode Furnace, and cast as Copper Anodes. Gases produced at various stages are

fully recovered and converted into Sulphuric Acid.

Latest Version of CS 3000 Distributed Control System of Yokogawa,

Japan controls the entire Copper Smelter. Advance Process Control (APC)

implementation methodology involves data collection, approximate candidate

controller design, prototype controller design, simulation, testing, and final

implementation. APC is implemented to control critical factors like Bath

temperature and Lance height control.


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Sulphuric Acid Plant

The sulphur dioxide gases generated in the smelting process is collected and

ducted to the Sulphuric Acid Plant. Set up with basic engineering from Kvaerner

Chemetics, Canada, the plant is based on the absorption process known as DCDA,

and has a designed capacity to produce 1600 tons of sulphuric acid per day.

Phosphoric Acid Plant

Sulphuric acid is reacted with rock phosphate in the Phosphoric Acid Plant

to produce phosphoric acid. Technology and basic engineering for this plant has

been sourced from Hydro Agri International, UK, and the process used is known as

Hemi-hydrate Di Hydrate Process. The plant has an installed capacity to produce

180,000 tons of Phosphoric Acid per annum.

Refining

The anode produced by the smelters is processed in the Silvassa and

Tuticorin refineries using Isa Process technology sourced from MIM, Australia.

The Refineries convert Copper anodes to electrolytic grade Copper cathodes of

99.99% purity. The unique feature of ISA refineries is the use of permanent

stainless steel cathode plates and its capacity to ensure consistently high

operational efficiency and product quality. Electrolysis process deposits purecopper (99.99%) on the stainless steel cathode plates. The impurities and precious

metals contained in anodes settle down as anode slimes. Cathodes are then

automatically washed, stripped and packed. The material handling equipment is

sourced from Wenmec. Continuous monitoring and analysis of refining process


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Cathodes are melted in a vertical shaft furnace based on technology from

ASARCO, USA. The molten copper is transferred to the casting Wheel through a

holding Furnace. Highly accurate measurement and control systems, intrinsic to

the Properzi technology, are used to maintain optimum level of molten metal,which is cast into the form of a continuous bar. The continuously cast copper bar is

fed into the rolling mill consisting of a unique combination of 2-roll and 3-roll

configuration designed to produce excellent quality of rods in different sizes.

Online pickling, drying and waxing ensure that the rod is free of oxide scales.

Online scanning with the highly sensitive Defect mat, sourced from Dr

Foster, Germany enables freedom from surface defects and ferrous contamination.

The process parameter data, online scanning data and results of a battery of off-line

tests are captured and processed in the central computer to monitor and control the

final quality of the rods. Extensive process control, backed by computerized

quality analysis make Sterlite CC Rods highly suitable for Telecom, magnet wire,

Transformer, housing wire and cable applications.

Copper rod is coiled in an Orbital laying form to ensure freedom from

entanglement while uncoiling by the customers. Each coil is compacted, strapped

and wrapped with polyethylene wraps, and stretch-wrapped to prevent

contamination with dust and ensure excellent arrival condition at the customers

end.


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Principal products:

Copper cathode

Copper Rods

BY PRODUCTS:

Sulphuric Acid

Phosphoric Acid

Other By-products:

Other by-products of the copper smelting operations are gypsum and anode slimes

and copper slime which are sold to third parties.


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WORK FLOW OF EXPORTS AND IMPORTS

This is the basic out flow of exports and imports. Everything begins eitherfrom exporter or from importer. Freight forwarders and clearing house agents doesthe formalities for importers and exporters. This service is at the option of theimporter and exporter. They may go for the third party or they do their allformalities by themselves. Seeking the liner service is such an essential one. Thisplays the major role in price. Each liner cost different according to their services.For example the liner which is costlier can reach the goods at the destination fasterthan the other liner services where as the cheaper one reaches the destination portmay be delayed. Container freight station is the place where the containers arechecked by he authorized authority for the goods to be exported or imported.Unless the goods are verified they cannot be exported. When container is donehouse stuffing, it must be verified by the central excise officer at the stuffing pointwhen it is loaded. Once the container are verified and approved to export, it can beshipped. When the goods reach the destination port, the liner agent surrenders thegoods to the buyer/importer after getting the required documents from him.Payment is made as per the terms agreed by the importer and exporter.

FF CHA

SHIPPMENT

IMPORT LINERAGENT

LINER

CFS

EXPORTS


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EXPORTS PROCEDURE:-

Here the exporter is sterlite. According to their procedure first marketingorder to be released by the marketing head mention when, where and how muchcommodity to be exported. Logistics department act according to that and theyseek for the best price which suits them. They contact their third parties eitherCHA or the liner for the goods to be exported. Once the agreement is mutuallysatisfied, contract is done with that liner and booking order is released from theliner. The things to be considered while seeking the vessels are

I. AGE OF THE VESSEL.II. DRAFT OF THE VESSEL.

III. COST.IV. ETA.

When these things satisfy the exporter they go with the liner. Once the liner hasgiven the booking order, the exporter can take the container from the containeryard to his loading point. Container number and reference will be given along thebooking order. Goods can be done house stuffing or it can be done at containerfreight station. When goods are done house stuffing, it must be verified andapproved by the central excise officer that those goods can be exported. Thesecontainers are taken to CFS. The container will be sealed by the custom officerafter checking the required documents (requirements are mentioned under CHA).


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EXPORT PROCEDURE AT STERLITE.

MARKETINGOREDR

BOOKING LINER

BOOKING RELEASE

CONTAINER

YARD

VERIFICATION

LOADING OFCARGO

SEALING


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Requirements for exports.

Import Export code (IE Code) Authorized by Bank (AD) DD ACC PAN

These are the few requirements which the exporter must have in order to export thecommodity.

CONTAINERSENT TO CFS


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FREIGHT FORWARDERS:-

Freight forwarders are those who do freight service for theexporter and collects the payment on agreed time. Their main job is to seek for thecomparative vessel which provides good service and less costly. They act asmiddle person between the liner and the exporter. The goods are to the liner infreight forwarders name and the bill of lading which is prepared by the liner ismade in the name of freight forwarders. Freight forwarders prepares bill of ladingon their for different consumers and surrenders the main bill of lading to the lineragent mentioning that the bill of lading is prepared in their name and distributed tothe consignees.

TERMS & CONDITION ON B/L:-

Freight Prepaid. Freight Collected. Receipt for shipment before sailing (RFS). Ship on board.

Freight Prepaid:-

When freight prepaid is mentioned in the bill of lading freight iscollected from the exporter before the goods are delivered to the importer. In short,the freight charges are collected after the goods have reached the importer.

Freight collected:-

Freight collected is a term used to indicate that the freightcharged for the service has been collected from the exporter. These terms are usedin bill of lading to avoid the collision of who is paying the amount or who has beenpaid the amount.


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Receipt for Shipment before sailing:-

This is issued before the goods are actually loaded in the ship. Itis entitlement that these goods are to be loaded in the vessel.

Ship on board:-

After the containers are loaded in the vessel this term will be usedin the bill of lading. In short bill of lading is issued after the goods have beenloaded in the ship.

Why freight forwarders are preferred:-

Freight forwarders offers best price for the exporter. They pay freight charges instead of the exporter and collect it after agreed

time. They have various liners contact.


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SEEKINGFOR A

VESSEL

BOOKINGVESSELWITHLINER

AGENT

PREPARATION OFB/L ONLINERS

NAME

SURREND

ERING OFB/L TOLINER.

PREPAR ATIONOF OWN

B/L

COLLECTING

FREIGHTCHARGES

FROMSHIPPER


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CUSTOM HOUSE AGENT:-


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RECEIVING INVOICE:-

CHAs work begins when the invoice is received from theexporter. The invoice contains goods description and all the details of it in it. Thesedetail are help full to compute drawbacks calculation for the commodity.

ENTERING IN CUSTOMS AUTHORIZED SOFTWARE:-

ROYAL IMPEX is the authorized custom software for theThoothukudi. This software is helpful to compute draw backs. Draw backs is theamount which is paid by the government to the exporter on total of goods exported.It is computed on certain percentage for example 7.5% draw backs is given for thecommodity which has 65% of cotton and 35% of rayon fabrics.

Details required:-

IE code. AD. Quantity. Price. Commodity code. Mode of charges.

When all the required things are done and entered, the work must be uploaded viasoftware. This is done to get approval from Delhi. The officials checks calculationmade when they feel the amount is correct they issue Shipping Bill number. Thiscan be checked through www.icegate.in . This website shows whether the wok uploaded is approved or denied. This web site can be logged only if it is registered.

Submitting the required documents to the customs:-

Check list. Invoice. Packing list. Annexure A. SDF form. Draw back declaration (Filed).
http://www.icegate.in/http://www.icegate.in/http://www.icegate.in/http://www.icegate.in/


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These are the documents which are to be submitted to the customs forgetting approval for the exports. Custom authority verifies it with theShipping Bill number via online and gives the approval.

If there is a problem with drawbacks declaration, custom officers asks BL Manifest of vessels. Insurance copy.

Goods brought to CFS for stuffing. It is checked before stuffing into the container.Once the container is stuffed with the goods it is sealed by the custom officer. Thecontainer is kept ready to export.

EIR (Export Interchange Receipt):-

Goods can be brought into the port only when there is EIR formwith it. It is acknowledgement that these goods can be brought into the port andcan be loaded in the concerned vessel. It is legally approved by the government.Goods are taken into the port according to the EIR number. The liner does notapprove all the goods into the vessel. It accepts the goods which can be actuallyloaded into it. Remaining goods are not loaded into the port. Mostly EIR is notissued to those goods. Its kind of first come, first serve basis. Liner gives bookingorder than the required amount. This is done to avoid the loss faced by the liner.The remaining containers are left out at the port i.e. Stock Out. EIR is an importantdocument for taking the goods into the port and also to load in the vessel.


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IMPORT PROCEDURES:-


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BUSINESS PLANNING:-

Analyzing and forecasting the demand for production.

VESSEL NOMINATING:-

Conditions to be fulfilled (THOOTHUKUDI PORT).

DRAFT-10.7M LOA-190 AGE OF VESSEL-15 YRS. HATCH DIMENSION. CRANE HANDLING CAPACITY.

PRE SHIPMENT:-

VESSEL TRACKING. INTIMATING FINANCE DEPT, PRODUCTION DEPT,

LOGISTICS AND CUSTOMERS. B/L & LOI. DELIVERY ORDER FROM VESSEL

(DOCUMENTATION PURPOSE ONLY). FILING OF IGM AND IMPORT APPLICATION (IA). PROVISIONAL DOCUMENTS FOR FILING BILL OF

ENTRY:- INVOICE. CERTIFICATE OF ASSAY. CERTIFICATE OF PAYMENT. INSURANCE COPY.


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CERTIFICATE OF ORIGIN. VESSEL BERTHING. ORIGINAL DO. CUSTOM CARGO EXAMINATION.

UNLOADING & DELIVERY OPERATION.POST SHIPMENT:-

DELIVERY. SOF. NOR. LAYTIME CALCULATION. PAYMENT BASED ON LOAD PORT.

Work Flow of Exim

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