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Submitted by
Sagar AnandPGDM –IBRoll No-05
IN PARTIAL FULFILMENT OF PGDM IN INTERNATIONALBUSINESS FOR THE ACADEMIC YEAR -2008-10.
Under the guidance of
Dr. R. Chandran
PIMSR, NE P!N"E#
PILLAI’S INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
NEW PANVEL, NAVI MUMBAI
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( A recog!"e# !$%!%&%e '# g!(e A r') *+ NACC '# ',,!!'%e# %o AICTE
COVER PAGE
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EXPORT PROCESSANDDOCUMENTATIONPROJECT REPORT
This project report entitled “Export Processand Documentation” based on myno!led"e and t!o month !or experience!ith committed car"o care P#t$ %td$ as asummer trainee$
SAGAR ANAND!"!#$$%
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ACKNOWLEDGEMENT
Life of human beings is full of interactions.
No one is self-sufficient by himself whenever anyone is doingsome serious and important work a lot of help from the people
concerned is needed & one less specially obliged towards them. I
cannot forget acknowledging them in few words as without the
guidance & co-ordination of them in my project report would not
have been possible.
A large number of individual contributed to this project.
I am thankful to all of them for their help and encouragement.
My writing in this project report has also been influenced by a
number of website and standard textbooks. As far as possible, they
have been fully acknowledged at the appropriate place .I express my
gratitude to all of them.
First of all I owe my heartfelt gratitude to my guide prof.
Mr. Guha and prof. Bettyfor his noble guidance throughout the
completion of the Project.
I would like to extend my heartfelt thanks toMr. Vikram
singh rawat, Branch Manager of committed cargo pvt. Ltd. NaviMumbai Branch for giving me an opportunity to work on this project.
I would also like to thank Ms. Kirti, Senior Executive, of
committed cargo pvt. Ltd. for his guidance, inspiration, and
constructive suggestions, which helped me in the Project.
I must also thank the management of committed cargo
pvt. Ltd. to provide excellent opportunity and environment to be able
to pull my project through. Cooperation of the staff is also gratefullyacknowledged.
Last but not least, also give my sincere thanks to all the
people to directly indirectly have help and encourage me in finding the
way to us collecting the requisite information and completing the
project effectively and timely.
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Sagar Anand
PGDM (IB)
Roll no. - 05
GUIDE CERTI&ICATE
TO WHOMESOEVER IT MAY CONCERN
This is to certify that the project report titled
“Export Process and Documentation”Offered by
Committed cargo Pvt. Ltd. has been prepared by
Sagar Anand, Roll No.- 05, a student of
PGDM
(Post Graduation Diploma in Management), session
(2008-10) with International Business as major area
of specialization. The study was conducted with
special reference tocommitted cargo care Pvt. Ltd.
C.B.D. Belapur, Navi Mumbai. I recommend this
project for evaluation.
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Place:
Date: (Dr. R. Chandran)
Director
INDEX Page No.
Important Abbreviations 6
Introduction of study 9
Objective of study 12
Research Methodology 13
Research Design 14
Scope of the Project 15
Limitations of the study 16
Company Profile 17
Organization Chart 25
Benefits Given by company 26
Theoretical background 27
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Data Analysis and Interpretations 58
Findings 68
Bibliography 72
Glossary 73
I mportant Abbreviations
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INTRODUCTION OF STUDY
This project is all about to know about export import
procedure/ documentation of shipment. This project puts
more focus on to know custom clearness, to make export -
import invoice, to get shipping bill number from custom
department etc. This project will also find out how
Committed cargo Pvt. Ltd. could sustain in the competitive
world by providing vast range of cargo handling through all
instruments which flexible prompt and innovative in
meeting the requirement of the customer. The purpose of
the study was to know about export – import documentation
of seaway in the committed cargo Pvt. Ltd.
The India International Coir Fair-2009, which is
coinciding with the golden jubilee celebrations of the
Central Coir Research Institute, is expected to give further
fillip to coir exports from the country by providing better
visibility to coir products in the global market. The
celebration of the International Year of the Natural Fibre is
also expected to draw greater attention to coir and coir
products.
Exceeding target
At a meeting of representatives of the coir exporters with the
Board officials to discuss issues related to exports, Mr V.S.
Vijayaraghavan, Chairman of Coir Board, thanked exporters
for their collective efforts in surpassing the export target
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last year, both in quantity and value, despite tremendous
odds and conspicuous global impediments.
Forex Earnings
Indian coir exports during 2008-09 had touched 1,94,791
tonnes valued at Rs 634 crore, exceeding the target set for
the year.
Coir export was 1,87,566 tonnes valued at Rs 592 crore
during the previous year.
Performance hopes
With the conduct of the India International Coir Fair-2009
and the celebration of the International Year of Natural
Fibre, the Coir Board was confident of better performancethis year.
Mr Vijayaraghavan hoped that the Coir Exporters Federation
would play a leading role in enhancing the growth of the coir
industry in all its dimensions and assured of the board's full
support in taking timely action to redress the problems of
the exporters.
The need to obtain timely governmental sanction to
participate in overseas fairs to achieve greater mileage in the
export market, setting up of a container freight station at
Pollalchi, Tamil Nadu, in view of its growing contribution to
exports and increasing the frequency of the meeting of
exporters with Board officials also received attention at the
meeting held on Monday. It was decided to hold the next
executive committee meeting of the Board at Bangalore onMay 26.
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Sales turnover
The 30-odd Coir Board showrooms spread over the country
had achieved a sales turnover of Rs 11.19 crore, accounting
for 86.10 per cent of the Rs 13-crore target fixed for the year
2008-09. The meeting also considered suggestions to
revamp these showrooms and sales depots through out the
country in tune with the growing expectations of all
sections, especially the upper strata of society in order toremain competitive in the domestic market. In this
background, Mr Vijayaraghavan was confident of achieving
the revised sales target of Rs 15 crore set for the showrooms
in the country for the current year.
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OBJ ECTIVE OF THE STUDY
The main objectives of the research were:
To know about export import process.
To know what are the documents required before and
after sailing the cargo.
To know different type of container used in shipment.
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RESEARCH METHODOLOGY
Collect data/information about cargo through:
Primary data collection:-
•
• Telephone
• Invoice
• Packing List
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Secondary data collection:-
• Invoice
• Packaging list
• Shipping bill
• Internet
RESEARCH DESIGN
Research design is the based framework, which provides
guidelines for the research process. It is a map or blue print according
to which the research is to be conducts. The research design specifies
the methods for data collection & data analysis determine the source
of data. Most specifically it was a kind of“Descriptive conclusive
research” who takes care of who, when, where, what, how and why
aspects of the investigation further the researcher used the statistical
method to serve he purpose of project, it permitted the research to
derive more accurate generalization whose reliability could be
measured.
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CENTRE : ALL OVER INDIA
RESEARCH : EXPLORATORY
RESEARCH TECHNIQUE : QUALITATIVE & QUANNTATIVE
TOOL USED : TELEPHONIC & E-MAIL
DATA SOURCE :PRIMARY & SECONDARY
SCOPE OF THE STUDY
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ro*e$ re'%!g %o %/e ,oo!g$.
$%&e' of con'u(er' that co(&ro(i'e &re'ent and &otential (ar)et'*
Bu%ing ha+it' and &attern of con'u(&tion
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Sie and location of different (ar)et', not onl% in India +ut al'o
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Mo't 'uita+le entr% ti(ing*
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/hance' of i(&roe(ent of current channel'*
LIMITATIONS OF THE STUDY
No% ' ''ce'
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COMPANY PROFILE
INTRODUCTION OF THE ORGANIZATION
Overview
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An ISO 9001:2000 Company Incorporated head quarter in
the national capital Delhi, India and specializes in handling Import &
Export Cargo. Earning and maintaining a reputation for dependable
and complete worldwide cargo movement solutions with the motto
“Customer Pride” achieved this longevity in the volatile cargo industry.
Committed Group has established its hub at Los Angeles, Toronto,
Shanghai, Mumbai, Jaipur, Ludhiana and a reliable network of
associate offices in India and world over and is specialized in
forwarding of cargos choosing the most convenient and cost effective
transportation method by air, courier, sea and truck any time &
anywhere around the globe.
Committed Group management has the right mix of experience and
commitment and is fast to adapt to new emerging technology. Its well-
established network and tracking software enables to provide fast and
reliable information to its client. Thus capable of handling –
Packaging
Warehousing
Freight forwarding
Clearance of Export and Import Cargo
Commercial, Diplomatic and Non-Diplomatic Consignment.
Projects
Mission Statement
“To be focused as a pro-active cargo gateway by anticipating and
reacting to each stage of a shipment's transit with commitment and to
experience strategic growth of a highly respected and recognized cargo
company in the Industry”.
Team
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The Committed Group management team brings together leaders with
a wealth of expertise from various industries, including
transportation, logistics, cargo management, professional services and
customer service.
These individuals form a strong foundation that provides
vision and support to a growing team of talented, dedicated
professionals working to adopt and deliver professional freight
forwarding solutions and custom clearance.
The Operational team at Committed Group comprising of more than
50 in-house trained energetic and aggressive group of employees with
several years of experience in the international freight forwarding plus
an protracted experience in the reputable shipping lines and airlines.
Thus, with strong gamut of professional from cargo industry under
one roof help Committed Group to adopt the "Total Freight
Management" approach, a feature of which is the handling of client
cargo on a door-to-door basis.
This approach ensures the correct management of cargo in
a cost-efficient and professional way at competitive price and feels
Committed Group is theRIGHT PARTNER FOR YOU.
Services
Air Freight
Custom Clearance
Document Processing
Multi Modal Facility
3 PL & Supply Chain Management
Packaging & Warehousing
Tracking & Tracing
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Multi Modal Facility
At Committed Group it is a single window contract for the carriage of
goods by at least two or more different modes of transport. Thus,
providing a permutation-combination between air- ocean-surface modes
to reduce the cost of transportation. This includes Door pick to Door
delivery and a complete logistics support constituting of:
»Origin Pickup/Trucking.
» Warehousing if required.
»Customs Clearance & Documentation at origin.
»Origin charges payable like THC, B/L Fee etc.
»Carriage by Sea or Air by payment of Freight.
»Inland Trucking if required.
»Customs Clearing of goods at destination and Warehousing if need be.
»Door Delivery of the cargo.
Committed Group operates as Multimodal Transport Operator (MTO)providing the end 2 end services like:
DDP:Delivered Duty Paid Shipments.
DDU:Delivered Duty Unpaid Shipments.
CI Shipments:Cargo picked up on cost and insurances terms
CF Shipments:Cargo picked up on cost and freight paid terms
CIF Shipments:Cargo picked up on cost Insurance and freight paid
terms.
FOB:Free on Board Shipment. Only Port to port or Apt to Apt service
by Carrier.
Ex Works:Pick up if cargo from shipper’s warehouse/factory.
Multimodal Transport (MT) Document
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Services along with logistic documentation evidencing a multimodal
transport contract which can be replaced by electronic data
interchange messages insofar as permitted by applicable law and be
(a)Issued in a negotiable form or,
(b) Issued in a non-negotiable form indicating a named consignee.
Taken in charge means that the goods have been handed over to and
accepted for carriage by the MTO for delivery.
Delivery of the Cargo through Multimodal facility
This is done after completion of various documentation and
formalities after the arrival of the shipment at destination.
The Cargo delivery is subject to various terms and conditions to be
fulfilled by the consignee as listed below:
1. Payment of all applicable charges to the delivery agent of the
carrier.2. On presentation of Duly Endorsed Original Bill of Lading (for Sea /
Ocean Shipments).
3. For Air shipments, an Authority Letter is required.
4. Original DIC.
5. In case of shipments under L/C, the designated Bank need to
endorse the Bill of Lading or issue
A Bank Release Order in favour of the carrier.
Committed Group as an MTO undertakes to perform or to procure theperformance of all acts necessary to ensure delivery of the goods /
cargo with responsibility:
(a) When the MT document has been issued in a negotiable form
"to bearer", to the person surrendering one original of the
document, or
(b) When the MT document has been issued in a negotiable form
"to order", to the person surrendering one original of the documentduly endorsed, or
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(c) When the MT document has been issued in a negotiable form to a
named person, to that person upon
Proof of his identity and surrender of one original document; ifsuch document has been transferred "to Order" or in blank the
provisions of (b) above apply, or
(d) When the MT document has been issued in a non-negotiable form,
to the person named as consignee in the document upon proof of his
identity, or
(e) When no document has been issued, to a person as instructed by
the consignor or by a person who has acquired the consignor's or theconsignee's rights under the multimodal transport contract to give
such instructions.
Period of responsibility
The responsibility of Committed Cargo Care Pvt. Ltd. as a
Multimodal Transport Operator (MTO) for the goods under these Rules
covers the period from the time the MTO has taken the goods in hischarge to the time of their delivery.
The multimodal transport operator shall be responsible for
the acts and omissions of its employee or agents, when any such
employee or agent is acting within the scope of his employment, or of
any other person of whose services he makes use for the performance
of the contract, as if such acts and omissions were his own.
Packaging & Warehousing
Packaging at Committed Group
Committed Group employs professional packers and experienced
supervisors who are trained packing and packaging. We specialize in
handling fragile / heavy / oversized cargo. For packaging, we use
material like craft paper / soft papers, corrugated rolls & boxes, air bubble pack rolls, polythene & polypropylene, and masking tape, etc.
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depending upon the requirement.
We design fabrication and assembly of crating material for
packaging machinery and equipment for storage or shipment and
usage of correct primary protective packing materials to insulatemachinery and equipment from moisture, corrosion and excessive
shock. Crating and the use of machines to execute packing and
moving operations has resulted in accolades and sustained patronage
by clients in India and abroad.
Warehousing at Committed Group
Committed Group offer warehousing facilities to support export -
import activities. The warehousing facilities are very helpful to
accelerate the transportation of goods, especially for cargos with LCL
Status. We use authorised warehouses located worldwide.
Further to our covered warehousing facilities are provided for
storing of FMCG, industrial and high-end sophisticated products on
transit. The warehouses are equipped with dedicated loading and
unloading bays.
At Committed Group storage areas of warehouses are demarcated to
identify each location. Our distribution centres offer ample space for
palletizing, crating and packing services according to customers’
specifications.
3 PL & Supply Chain Management
At Committed Group, we define functional experience, expertise,
speed, flexibility, and ingenuity to manage your freight efficiently
everytime.
As an experienced provider of 3PL (Third Party Logistics) 24 x 7,
we provide a total supply chain solution for your logistics and freight
management needs. Our ongoing goal is to simplify the shippingprocess for our clients by finding the best rates and then smoothly
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coordinating all aspects of the shipment from pick-up to ship to
delivery for our E2E, B2E, B2B, B2C and C2C clientele base.
At Committed Group, we practice logistics. We can develop a
comprehensive project plan for your organization, deploy a projectteam, and remain with your team through the implementation and
start-up. We analyze existing processes, from initiation of an order
through fulfillment, and evaluate modal selection, carrier utilization,
and existing cost structures. We formulate a customized solution for
your unique needs.
Committed group is a hub-based third party fulfilment and logistics
company servicing both domestic and international needs.
Services include: Complete Supply Chain Operations: End-to-
End
Full Case Pick Modules
Split Case Pick Modules
Tilt Tray Sorter
Sliding Shoe Sorter
CAPS Line
Pick-to-Light
Kitting
Product/Process QA Management
Performance-driven Controls
Standard and Customized Reporting
Inventory control
Private and Public Delivery Network
Invoicing
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Call Centre Support
Diverse Product Categories Returns processing
Assembly and inbound / outbound freight management.
Accounts Management, and advanced in-house Systems
Support.
A-frame and Real-Time RF-Controlled Inventory System
Along with state-of-the-art distribution, our 3PL and SCM
services offers clients around the clock full service fulfilment support.
Additional services available: extensive print support, productpackaging and ware housing.
Our 3PL solution and Supply Chain Management enables cost savings
and better route planning
Ability to connect customers and their supply chain partners
through a real-time information hub
10-15% reduction in transportation costs
Real-time monitoring of inventory, orders and events
Intelligent order sourcing across multiple stocking locations
10-15% cost improvement for fleets
Tracking & Tracing
Committed Group big advantages offer to our customers is the
one stop online track and trace facility. Through this site you now
have the ability to monitor your consignments online or web access at
any time, day or night, without the need to constantly refer back to
your forwarder. Our system offers access on a 24/7 basis for all
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consignments shipped by road, sea and air.
Updated daily, the moment you entrust your consignment
given a reference number and subsequently logged on our system the
same day. All customers are assigned unique login details to allow
immediate tracking of their consignments. The unique login codes
ensure total security by baring others from viewing the same
information. The accessible information is kept on a secure location
and is accessed through a strict password system. The information
available from our track and trace facility is flexible and can be
tailored to your individual needs. Thus, a global network of contacts
and our combined wealth of experience ensure that your shipments
are transported effectively and efficiently. Committed Group Track and
Trace facility is available for obtaining your freight consignment status
with most major Airlines.
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ORGANISATION C'ART
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BENEFITS GIVEN BY COMPANY
Origin Pickup/Trucking.
Warehousing if required.
Customs Clearance & Documentation at origin.
Origin charges payable like THC, B/L Fee etc.
Carriage by Sea or Air by payment of Freight.
Inland Trucking if required.
Customs Clearing of goods at destination and
Warehousing if need be.
Door Delivery of the cargo.
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THEORETICAL BACKGROUND
LOGISTICS SYSTEM
Logisticsis defined by the council of Logistics, Ohio USA as the
Process of planning, implementing and controlling the efficient, co-
effective flow and storage flow and storage of raw materials, in process
inventory finished goods and related information from point of origin
to point consumption. More simply, the objective of Logistics System is
that the right products reach the right place in the right quantity at
the right time to satisfy customer demand.
ELEMENTS OF LOGISTICS SYSTEM
Nature of Product
Location of Manufacturing Plant
Availability of infrastructure such as Road
Availability of different modes of transportation
Dealer/Distributor Network
Government Policy
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ELEMENTS OF LOGISTICS SYSTEM
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MODE OF TRANSPORTATION
AIR TRANSPORT
OCEAN TRANSPORT
RAIL TRANSPORT
ROAD TRANSPORT
OCEAN TRANSPORT
More than 95 per cent of international trade is conduced by sea
routes since ancient times, sea routes are being used for
transportation of cargo from one continent or country to Coastal
shipping is also used for transporting the cargo from one port
within the country to another.
For example in India the cargo can be transported from Chennai
port to Visakhapatnam port using the costal shipping route.
Sea routes are used for carrying bulj
commodities like such as coaling and thermal coal mires, fertilizers
rock phosphate etc, and liquid go like crude oil ammonium acids
etc Ideally the goods with high volume and kiw vakye are suited
die ocean transport in the era of containerisation even the high
value cargo can be safely enabled the cargo carrying capacities of
the ship to increase many fold.
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In 1956, the first containerised ship belonging
to sea land corp. carried 58 twenty feet containers. The modern
ships have the capacity to carry 7000 containers.
One of the biggest ships owned by Maersk-sea
land is 1,138 feet long from end to end and 140 feet wide at mid
ship. Such ships are called Post-Panamax ship.
Cargo ship categorised into followings:-
Liners ships : Liners ship represent the organized sector
of the shipping industries due to their fixed schedules of arrival and
departure, Pre-determined voyages and trade routes and published
ocean freight rates. Liner shipping is governed by shipping conference
and offers the following advantage to shippers:-
Regular sailings to scheduled ports of call.
Stable freight rates for a long period of time which helps the
shipper to quote C & F prices with confidence.
Uniform rates for all shippers.
Coverage of wide range of ports.
Rebates of freight rates based on loyalty agreements.
Tramp ships:- Tramp ships on the other hand have
the following characteristics –
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They are free to move anywhere on the high seas at their will.
Their voyage routes and schedules are flexible.
They travel from the port to another port o various trade
routes looking for the cargo and carrying the same to various
routes looking for the cargo and carrying the same to various
destinations around the world.
They arrive or depart without a fixed route or schedule.
They fix their voyages according to availability of cargo
and as per the requirement of the shippers of these
cargoes.
The freight rates of tram ships depend upon the
demand and supply conditions in the shipping
industry. If there is a glut of shipping space the tramp
freight rates plummet. Whereas in case of shortage of
shipping space, the tramp freight rates shoot up.
The cargo space on the tramps is booked by the
brokers located in major port cities like New York,
London, Rotterdam Hamburg, and Hong- Kong etc.
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They work as a link between tramp operators and
shippers.
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STANDARD CONTAINERSTANDARD CONTAINERS:
Standard #$(
insidelength
insidewidth
Insideheight
door width
door height
capacitytare
weighta!i
cargo
19"4# 7"8# 7"10# 7"8# 7"6# 1$172%&'t 4$916l(s 47$900l(s
5.900) 2.350) 2.393) 2.342) 2.280) 33.2%* 2$230+g 21$770+g
Standard )$(
insidelength
insidewidth
Insideheight
door width
door height
capacitytare
weighta!i
cargo
FLAT RACK CONTAINER
&*at ra+, #$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weight)a!i
cargo
18"5# 7"3# 7"4# , , , 5$578l(s 47$333l(s
5.620) 2.200) 2.233) , , , 2$530+g 21$470+g
&*at ra+, )$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weight)a!i
cargo
39"7# 6"10# 6"5# , , , 12$081l(s 85$800l(s
12.080) 2.438) 2.103) , , , 5$480+g 39$000+g
FLATT RACK COLLAPSIBLE CONTAINER
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&*at ra+, C-**a/ib*e #$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weighta!i
cargo
18"6# 7"3# 7"4# , , , 6$061l(s 61$117l(s
5.618) 2.208) 2.233) , , , 2$750+g 17$730+g
&*at ra+, C-**a/ib*e )$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weighta!i
cargo
39"7# 6"10# 6"5# , , , 12$081l(s 85$800l(s
12.080) 2.126) 2.043) , , , 5$800+g 39$000+g
REEFER COINTAINER
Ree0er #$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weight)a!i
cargo
17"8# 7"5# 7"5# 7"5# 7"3# 1$000%&'t 7$040l(s 45$760l(s
5.425) 2.275) 2.260) 2.258) 2.216) 28.3%* 3$200+g 20$800+g
Ree0er )$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weight)a!i
cargo
37"8# 7"5# 7"2# 7"5# 7"0# 2$040%&'t 10$780l(s 56$276l(s
11.493) 2.270) 2.197) 2.282) 2.155) 57.8%* 4$900+g 25$580+g
REEFER HIGH CUBE CONTAINER
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Ree0er 'igh Cube )$(
insidelength
Insidewidth
insideheight
door width
door height
capacitytare
weight)a!i
cargo
37"11# 7"6# 8"2# 7"6# 8"0# 2$344%&'t 9$900l(s 57$761l(s
11.557) 2.294) 2.500) 2.294) 2.440) 66.6%* 4$500+g 25$980+g
HIGH CUBE CONTAINER
'IG' CU1E )$(
insidelength
Insidewidth
insideheight
door width
door height
capacitytare
weighta!i
cargo
39"5# 7"8# 8"10# 7"8# 8"5# 2$694%&'t 8$750l(s 58$450l(s
12.036) 2.350) 2.697) 2.338) 2.338) 76.3%* 3$970+g 26$510+g
PLATEFORM CONTAINER
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P2AT&ORM #$(
insidelength insidewidth insideheight door width door height capacity tareweight a!icargo
19"11# 8"0# 7"4# , , , 6$061l(s 52$896l(s
6.058) 2.438) 2.233) , , , 2$750+g 24$000+g
P2AT&ORM )$(
insidelength
insidewidth
insideheight
door width
door height
capacitytare
weighta!i
cargo
40"0# 8"0# 6"5# , , , 12$783l(s 86$397l(s
12.180) 2.400) 1.950) , , , 5$800+g 39$200+g
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International Transaction
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EXPORT PROCEDURE AND DOCUMENTATION
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In India, ships transport more than 90 per cent of the cargo. It
therefore interesting to study the export processed by ship
documentation related to it.
Processing of an export order-----
i.Exporter operation starts with the receipt of enquiry by the
exporter from importer. Bar on the enquiry exporter submits his
offer giving complete details of products technical specific price
delivery payment terms etc.
ii.After the process negotiations importer sends a purchase order
follow by letter of credit (if applicable).
iii.The exporter manufactures the goods according to the
specification given in purchase order.
iv.As soon as the goods are ready the exporters invites the
representative of Export inspections agency (EIA) for pre
shipment inspection and obtain the certificate of inspection.
v.After that, the exporter prepared following documents:----
INVOICE
PACKING LIST
ARE1 FROM EXSICE DEPARTMENT
MARINE INSURANCE POLICY
COPY OF PURCHASE ORDER / L/C
vi.Above those documentation sends to CHA by exporter.
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vii.Based on these documents CHA agent completes the octroi
formalities, obtain port permit and prepare shipping bill which
is a customs documents.
viii.Custom department check the export cargo on the basis of
information provided on the shipping bill. If satisfy then cargo
allow to loaded on the board of ship.
ix.The shipping line gives mate receipts to CHA agents after the
payment of ocean freights and port due obtains the bill of lading
(B/L) from shipping line .B/L is a proof of dispatch of cargo andalso a negotiable document.
x.After that, CHA agent send various documents back to exporter
which is—
Customs attested invoice
Copy of shipping bill
Full set of non board bill of lading.
Copy of purchase order or L/C
Copies of ARE1 Form
SDF form
xi.After that the exporter submitted above these documents for
negotiation to the bank which include :----
Commercial invoice
Packing list
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SDF form
Original copy of purchases order
Certificate of origin
Bill of exchange
Shipment advice
After that, bank scrutinizes these documents and if found correctmake payment to exporter against documentations.
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EXPORT INVOICE
ELEMENT OF EXPORT INVOICE:-
Exporter
Consignee
Invoice No. and Date
Exporter Ref.
Buyer order no and date
Other reference
Buyer (other than consignee)
Country of origin of goods
Country of final destination
Terms of delivery and Payment
Pre-carriage by
Place of receipt by pre-carrier
Vessel/ Flight no.
Port of loading
Port of discharge
Final Destination
Marks and Nos. / No & Kind of pkgs.
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Item code
Description of goods
Net weight
Gross weight
Quantity
Rate CIF EURO
Amount CIF EURO
Amount in words
Declaration:
Authorised signature
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DATA ANA23SIS
How Big is a Cubic Meter?
Calculation: Length x Width x Height divided by 172 ! cubic "eet divided
by #$ ! cubic %eters&
23 BOOK BOXES 11 MEDIUM BOXES 8 LARGE BOXES
! one cubic %eter
13!13!17 inches1.5 c&(ic -eet
0.043 Cubic Meters
appro!/
18!18!17 inches3.1 %&(ic 'eet
0.09 Cubic Meters appro!/
18!18!24 inches4.5 %&(ic 'eet
0.!" Cubic Metersappro!/
Or #i$ %&' #%tc:
)*&ecubic#eter
)
*&ecubic#eter
)*&ecubic
#eter
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Air freight calculation
Introduction
Airlines that are members of theInternational Air Transport
Association (IATA) are bound by their membership to comply
with tariffs issued by IATA. However since 11th September
2002, airfreight rates are now extremely negotiable.
Airfreight rates cover transportation from the airport of
loading to the airport of discharge.
These rates do not include the following:
• Collection of air cargo from the consignor's/exporters
premises
• Delivery of cargo from the airport of destination to the
consignee's premises
• Storage of cargo before or after loading
•
Customs clearance in the country of destination• Any duties and taxes that may have to be paid
• Insurance
Chargeable/volumetric weight
Airline freight rates are based on a "chargeable weight",
because the volume or weight that can be loaded into an
aircraft is limited. The chargeable weight of a shipment will
be either the "actual gross mass" or the "volumetric weight",
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whichever is the highest. The chargeable weight is
calculated as follows: 1 metric ton = 6 cubic metres. In order
to establish if the cargo will be a weight or volumetric based
shipment.
Step 1
Measure the parcel/cargo along the greatest length, width
and height of that parcel. For example; 100 cm (L) X 100 cm
(W) X 100 cm (H) = 1 000 000 cm3. Next, weigh the parcel;
assume it weighs 150kg.
Step 2
Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You
have now converted the centimeters (cm) into kilograms (kg)
Step 3
Now compare the weight to the volume. If the weight is 150
kg then the airline would base the freight on the higher
amount being: 166,66 kg
Air freight calculations
The airline calculates freight based on weight or volume,
which ever yields the greatest amount. Airlines quote freight
rates based on the following rate structures:
• A basic minimum charge per shipment.
• General cargo rates quoted for per kilogram. This rate
applies without reference to the nature or description
of the parcel, which is to be freighted.
• Specific commodity rates apply to certain goods of
specific descriptions, such as fresh produce. These
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rates are lower than the general cargo rate, and they
provide breakpoints at which the level of the rate
reduces further.
Example:
0 - 50 Kg @ R22.00/per kg
50 - 100 Kg @ R19.00 per kg
100 - 150 Kg @ R17.00 per kg
Unit Load Device charges
These rates are charged per container/ULD without
reference to the commodity loaded therein. Calculation offreight rates:
Let us assume the following figures:
The freight rate is R18.00 per kg
The weight of the parcel is 300 kg
The dimensions are: 114,6 cm X 120,4cm X 132,5 cm
(round the cm's up or down)
Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6
000 = 305.9 kg (having converted cm's to kg's now round up
the kg's to the next half a kilogram = 306 kg.
As the freight rate quoted by the airline is R18.00 per kg, we
calculate the price as follows:
306 kg X R18/kg = R5 508.00
The freight rate will not be calculated on the actual mass
300 kg X R18.00 = R5 400.00 as the airline will always use
the greater amount either the kg, or volumetric weight.
Consolidation
Consolidation is an economical method of moving cargo by
employing a consolidator. The consolidator receives cargofrom a number of suppliers/shippers and then combines
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these cargoes into one consignment by packing the goods
into a Unit Load Device. The consolidator then books the
Unit Load Device with an airline. The supplier/shipper
would have a contract of carriage with the consolidator of
the cargo and in turn the airline would have a contract of
carriage with the consolidator. The airline would issue an
air waybill to the consolidator when accepting the Unit Load
Device and in turn the consolidator would issue the
supplier/shipper with a house air waybill.
The air waybill
The air waybill, unlike the ocean bill of lading is not adocument of title to the goods described therein, however it
does perform several similar functions these are:
• It is a receipt for the goods
• It is evidence of the contract of carriage between the
exporter and the carrier
• It incorporates full details of the consignor/shipper,
the consignee/receiver and the consignment/goods• It is an invoice showing the full freight amount
• It must be produced, be it in an electronic format, at
the airport of discharge for clearing purposes
All copies of the air waybill, together with the commercial
invoice, packing list, certificate of origin and any other
document which may be necessary for clearing the goods
through customs, these documents are carried in the flightcaptain's bag.
Sea freight calculations
Introduction
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Seafreight calculations can broadly be divided into two main
components; breakbulk and containerised. In this section
we deal with how you should calculate the freight costs of
both of these two types of seafreight.
Break bulk cargo calculations
Break bulk cargo, is cargo that is unitised, palletised or
strapped. This cargo is measured along the greatest length,
width and height of the entire shipment. The cargo is also
weighed. Shipping lines quote break bulk cargo per "freight
ton", which is either 1 metric ton or 1 cubic metre, which
ever yields the greatest revenue.
Example:
A case has a gross mass of 2 Mt.
The dimensions of the cargo are:
2.5 X 1 X 2 metres
The tariff rate quoted by the shipping line is: USD 110.00
weight or measure (freight ton)
Step 1
Multiply the metres 2.5 X 1 X 2 = 5 metres Compare to the
mass = 2 Mt.
Step 2
Calculate the freight with the greater amount either the
mass or the dimension. 5 X USD 110.00 = USD 550.00
Freight would be paid on the measurement and not the
weight. All shipping lines carrying cargo in a break-bulk
form insist on payment based on a minimum freight charge
which is equivalent to one freight ton, one cubic metre or
one metric ton.
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Full Container load calculations and surcharges
Freight rates for containers are based on the container as a
unit of freight irrespective of the commodity or commodities
loaded therein, (FAK) Freight All Kinds. The shipping lines
quote per box (container) either a six or twelve metre
container. From time to time, abnormal or exceptional costs
arise in respect of which no provision has been made in the
tariffs. For example a shipping line cannot predict themovement of the US Dollar or the sudden increase of the
international oil price. These increases have to be taken into
account by the shipping line in order to ensure that the
shipping line continues to operate at a profit. These
increases are called surcharges. All shipping lines
accordingly retain the right to impose an adjustment factor
upon their rates taking into account these fluctuations. All
surcharges are expressed as a percentage of the basicfreight rate. Surcharges are regularly reviewed in the light of
unforeseen circumstances, which may arise and bring cause
for a surcharge increase.
Bunker Adjustment Factor (BAF)
"Bunkers" is the generic name given to fuels and lubricants
that provide energy to power ships. The cost of bunker oilfluctuates continually and with comparatively little warning.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
US Dollar 1 250.00 X 5.2% = US Dollar 65.00
Add the two amounts together
Freight rate: U S Dollar 1 315.00
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Currency Adjustment Factor (CAF)
The currency adjustment factor is a mechanism for taking
into account fluctuations in exchange rates, these
fluctuations occur when expenses are paid in one currency
and monies earned in another by a shipping company. The
currency adjustment factor is a mechanism for taking into
account these exchange rate fluctuations. It is always
expressed as a percentage of the basic freight and is subject
to regular review.
Example:
Freight rate: Port Elizabeth to SingaporeFreight rate: US Dollar: 1 250.00 per 6-M container
+ CAF 6.3%
US Dollar 1 250.00 X 6.3% = US Dollar 78.75
Add the two amounts together
Freight rate: U S Dollar 1 328.75
War Surcharge
The outbreak of hostilities between nations can have a
serious effect upon carriers servicing international trade
even though they may sail under a neutral flag. Carriers
sailing within the vicinity of a war zone may impose a war
surcharge on freight to compensate for the higher risks
involved and the higher levels of insurance premium, which
they may be obliged to pay.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ WAR 5%
US Dollar 1 250.00 X 5% = US Dollar 62.50
Add the two amounts together
Freight rate: U S Dollar 1 35.50
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All of the above surcharges may be applied to a single freight
rate.
Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
+ CAF 6.3%
+ WAR 5%
Total amount of surcharge 16.5%
US Dollar 1 250.00 X 16.5% = US Dollar 206.25
(add to freight rate)
US Dollar 1 456.25
Port Congestion Surcharge
Congestion in a port for a period of time can involve
considerable idle time for vessels serving that port. When a
ship lies idle, this creates a huge amount of loss for the
ship's owner. Shipping lines therefore have the right to
impose a surcharge on the freight to recover revenue lost. Another factor which influences port congestion surcharge
would be labour disputes. Port congestion surcharges are
calculated as a percentage of the freight rate as expressed in
the previous examples.
Consolidation services
The consolidator or groupage operator hires a containerfrom a shipping line and then sells that space to his
clients/exporters. The benefit for the exporter is that small
quantities which, would not fill a full container load, can be
shipped by sea freight in a shipping container as an
alternative to air freighting the goods. The consolidator
would charge per metric ton or cubic metre, which ever
yields the greatest. Example: US Dollar 89.00 Weight or
Measure. The shipping line would have a contract ofcarriage with the consolidator and in turn the consolidator
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would have a contract of carriage with the exporter. The
consolidator would be issued with an combined through bill
of lading from the shipping line and then present the
exporter with a house bill of lading (See bill of lading below)
The bill of lading
The bill of lading performs the following functions:
• A contract of carriage between the shipper of the cargo
and the carrying shipping company.
• The name of the shipper and the receiver of the goods
the consignee.• The contents of the packages as declared by the
shipper.
• Shipping details such as: port of loading and the port
of discharge.
• The bill of lading is a freight invoice and indicates if the
freight costs have been prepaid by the exporter or will
be paid by the importer, "freight collect".
• The bill of lading states the number of packages, weight and dimension of the shipment.
• It is a document of title to the goods stated thereon.
Every original bill of lading signed by or on behalf of the
shipping company is a document of title to the underlying
goods. This special function of a bill of lading is achieved by
a form of words which state: "In witness whereof the
undersigned on behalf of the shipping company has signedthree bills of lading all of this tenor and date, one of which
being accomplished the others to stand void".
"Accomplishing" the bill of lading requires the surrender to
the shipping line or its agents in the port or place of
destination one of the signed original bills of lading duly
endorsed by the consignee/importer. Unless and until one of
the original bills of lading as described above is
surrendered, the shipping line will not release the cargo to
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the consignee/importer. Upon surrender of any one of the
originals the other originals bills of lading become void.
Endorsed Bills of Lading
Bills of lading can only be issued with the words "shipped
on board", if the cargo has actually been loaded onto the
named vessel at the port of loading. By insisting that the
exporter supplies the importer with a "shipped on board"
bill of lading, the importer obtains conclusive evidence that
the goods have been loaded on board the intended vessel.
Some importers insist that the exporter presents "shippedon board" bills as a condition for payment. "Received for
shipment", bills of lading can be issued as soon as the
goods have been delivered into the custody of the carrying
shipping company or its agent either at the point of receipt
or at the port of loading. Thus, a 'received for shipment", bill
of lading will only indicate the ship in which the cargo is
intended to be loaded on. The risk remains that the loading
may, for many reasons delayed or the cargo may not beloaded at all.
Banks responsible for the payment of funds in payment for
goods under letters of credit will not release the funds if the
bill of lading has been endorsed "received for shipment".
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FINDINGS
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IMPORTER
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EXPORTER
%I'I%'INP%IN
INI% P%+INI
'
1'
ININN%PI%:
% ;INI%
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!port I)port ;oc&)entation , Pro-. ;.%. pai
ogistics in International *&siness , Pro-. a?ee@ serAar
RE&ERENCES 4 INTERNET
www.co))ittedgro&p.co)www.google.co.in
www.asA.co)www.e!it.net
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G2OSSAR3 INTERNATIONA2 &REIG'TTERMS
A1I 5 Aut-mated 1r-,erage Inter0a+e6 s a systema#ailable to '$($ Customs )roers !ith the computercapabilities and customs certi*cation to transmit andexchan"e customs entries and other in+ormation,+acilitatin" prompt release o+ imported car"o$A++etan+e- . time dra+t /or bill o+ exchan"e0 !hich thedra!ee has accepted and is unconditionally obli"ated topay at maturity$ Dra!ee1s act in recei#in" a dra+t and thusenterin" into the obli"ation to pay its #alue at maturity$ .n
a"reement to purchase "oods under speci*ed terms$Add '-+ Charter- . one2o3 charter operated at thenecessity o+ an airline or charterer$Ad Va*-rem 78a++-rding t- the 9a*ue8:6 . *xedpercenta"e o+ the #alue o+ "oods that is used to calculate customs duties and taxes$Admira*ty C-urt- s a court ha#in" jurisdiction o#ermaritime 4uestionspertainin" to ocean transport, includin" contracts,charters, collisions, and car"o dama"es$Ad9an+e Again/t D-+ument/- %oad made on thesecurity o+ the documentsco#erin" the shipment$Ad9i/ing 1an, - . ban that recei#es a letter o+ credit+rom an issuin" ban,#eri*es its authenticity, and +or!ards the ori"inal letter o+credit to the exporter !ithout obli"ation to pay$Ad9i/-ry Caa+ity- . term indicatin" that a shipper1sa"ent or representati#e is not empo!ered to mae de*nitedecisions or adjustment !ithout the appro#al o+ the "roupor indi#idual represented$A;*iate- s a company that controls, or is controlled byanother company, or is one o+ t!o or more commonlycontrolled companies$Air0reightment- .n a"reement by a steamship line topro#ide car"o space on a #essel at a speci*ed time and +ora speci*ed price to accommodate an exporter or importer,!ho then becomes liable +or payment e#en thou"h he is
later unable to mae the shipment$
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Agen+y Agreement- The steamship line appoints thesteamship a"ent andde*nes the speci*c duties and areas o+ responsibility o+that a"ent$
Air Carg- Agent- s a type o+ +rei"ht +or!arder !hospeciali5es in air car"o and acts +or airlines that pay him a+ee /usually 670$ 8e is re"istered !ith thenternational .ir
Transport .ssociation, .T. /(ee also .ir 9rei"ht 9or!arder:9or!arder, 9rei"ht 9or!arder, 9orei"n 9rei"ht 9or!arder0$Air &reight &-r
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Arbitrati-n C*au/e- s a standard clause to be included inthe contracts o+ exporters and importers, as su""ested by the .merican.rbitration .ssociation$ t states that any contro#ersy or
claim !ill be settled by arbitration in accordance !ith therules o+ the .merican .rbitration .ssociation$A//ignment- The trans+er o+ the ri"hts, duties,responsibilities and=or bene*ts o+ an a"reement, contract,or *nancial instrument to third party$A//ignment -0 Pr-+eed/- . stipulation !ithin a letter o+credit in !hich some or all o+ the proceeds are assi"ned+rom the ori"inal bene*ciary to one or more additionalbene*ciaries$
A.T.- .merican Terms />arine nsurance0 . term used todi3erentiate bet!een the conditions o+ .merican Policies+rom those o+ other nations, principally En"land$Aut-mated 1r-,erage Inter0a+e 7A1I:- .n electronicsystem allo!in"customhouse broers and importers to inter+ace #iacomputer !ith the '(Customs (er#ice +or transmittin" entry and entrysummary data on imported merchandise$
Aut-mated C-mmer+ia* Sy/tem 7ACS:- The electronicsystem o+ the '(Customs (er#ice, encompassin" a #ariety o+ industrysectors, that permits online access to in+ormation inselected areas$Aut-mated Mani0e/t Sy/tem 7AMS:- The electronicsystem allo!in" a mani+est in#entory to be transmitted tothe '( Customs (er#ice data center by carrier, portauthority or ser#ice center computers$1AA- )ritish .irports .uthority1ACA- )altic .ir Charter .ssociation1a*an+e -0 Trade- The di3erence bet!een a country1stotal imports and exports: i+ exports exceed imports,+a#orable balance o+ trade exists, i+ not, a trade de*cit issaid to exist$1arter- Trade in !hich merchandise is exchan"ed directly+or other merchandise !ithout use o+ money$ )arter is animportant means o+ trade !ith countries usin" currencythat is not readily con#ertible$1!1- /(ee )rea2)ul Car"o0
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1e**y Carg-6 9rei"ht accommodation belo! the maindec$1ene>+iary- . *rm or person on !hom a letter o+ credithas been dra!n$ The bene*ciary is usually the seller or
exporter$1ermuda Agreement- .n a"reement concluded in @ABbet!een the '$$ and the '$($, desi"ned to re"ulate +utureinternational air trac$ >ost "o#ernments accept itsprinciples and +ollo! it inter alia by limitin" trac ri"hts oninternational routes to one or t!o carriers$1erth- s the place beside a pier, 4uay or !har+ !here a#essel can be loaded or dischar"ed$1erth 2iner Ser9i+e- s a re"ular scheduled steamship
line !ith re"ularpublished schedules /port o+ call 0 +rom and to de*nedtrade areas$1erth -r 2iner Term/- s an expression co#erin"assessment o+ ocean +rei"ht rates "enerally implyin" thatloadin" and dischar"in" expenses !ill be +or ship o!ner1saccount, and usually apply +rom the end o+ ship1s tacle inport o+ loadin" to the end o+ ship1s tacle in port o+dischar"e$
1i** -0 2ading- . document that establishes the terms o+a contract bet!een a shipper and a transportationcompany under !hich +rei"ht is to be mo#ed bet!eenspeci*ed points +or a speci*ed char"e$ 'sually preparedby the shipper on +orms issued by the carrier, it ser#es asa document o+ title, contract o+ carria"e, and a receipt +or"oods$ .lso see Air Waybill and Ocean Bill of Lading$1-nded =areh-u/e- . !arehouse stora"e area ormanu+acturin" +acility in!hich imported "oods may be stored or processed !ithoutpayment o+ customs duties$1ru//e*/ Tari? N-men+*ature Number 71TN:- Thecustoms tari3 number used by most European nations$
The 'nited (tates does not use the )TF, but a similarsystem no!n as the 8armoni5e Tari3 (chedule$CAA- s the Ci#il .#iation .uthority$
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a"reements that *x set rates$ Cabota"e rates arene"otiable bet!een shipper and airline and apply on;i"hts !ithin a country and to its o#erseas territories$CAD Can ha9e t
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Ca/h in Ad9an+e 7C.I.A.:- Payment +or "oods in !hichthe price is paid in +ull be+ore shipment is made$ Thismethod is usually used only +or small purchases or !henthe "oods are built to order$
Ca/h Again/t D-+ument/ 7CAD:- Payment +or "oods in!hich a commission house, or other intermediary,trans+ers title documents to the buyer upon payment incash$C.C.E.&.- s a Customs Centrali5ed Examination 9acility$Certi>+ate -0 Ana*y/i/6 s a certi*cate re4uired by somecountries as proo+ o+ the 4uality and composition o+ +oodproducts or pharmaceuticals$ The re4uired analysis maybe made by a pri#ate or "o#ernment health a"ency$ The
certi*cate must be le"ali5ed by a +orei"n consul o+ thecountry concerned, as is the case !ith such similarcerti*cates as the phytosanitary certi*cate$Certi>+ate -0 In/e+ti-n- . document certi+yin" that the"oods !ere in apparent "ood condition immediately priorto shipment$Certi>+ate -0 Manu0a+ture- . statement in !hich aproducer speci*es !here his "oods !ere manu+actured,certi*es that manu+acturin" has been completed, and
con*rms that the "oods are at the buyer1s disposal$Certi>+ate -0 Origin6 . statement si"ned by theexporter, or his a"ent, andattested to by a local Chamber o+ Commerce, indicatin"that the "oods bein" shipped, or a major percenta"e o+them, ori"inated and !ere produced in the exporter1scountry$CES- s a Customs Examination (tationC&- s a 4uoted price includes cost o+ "oods and +rei"ht$C I- s a 4uoted price includes cost o+ "oods andinsurance$C&S 7C-ntainer &reight Stati-n:- The term C9( atloadin" port means thelocation desi"nated by carriers +or the recei#in" o+ car"oto be paced intocontainers by the carrier$ .t dischar"e ports, the term C9(means the bonded location desi"nated by carriers in theport area +or unpacin" and deli#ery o+ car"o$C&S!C&S 7Pier t- Pier:- The term C9(=C9( means car"odeli#ered by brea bul to Carrier1s C9( to be paced by
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Export Process & Documentation
Carrier into containers and to be unpaced by Carrier +romthe container at Carrier1s destination port C9($C&S!C3 7Pier t- '-u/e:- The term C9(=CG means car"odeli#ered brea2bul to Carrier1s C9( to be paced by
Carrier into containers and accepted by consi"nee atCarrier1s CG and unpaced by the consi"nee o3 Carrier1spremises, all at consi"nee1s ris and expense$C&S C'ARGE 7C-ntainer &reight Charge:- The termC9( Char"e means the char"e assessed +or ser#icesper+ormed at the loadin" or dischar"in" port in pacin" orunpacin" o+ car"o into=+rom containers at C9($C&
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