Flexituff Project

8/4/2019 Flexituff Project

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ACKNOWLEDGEMENTLife of human beings is full of interactions. No

one is self-sufficient by himself whenever anyone is doing some

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. joshi for his

noble guidance throughout the completion of the Project.

I would like to extend my heartfelt thanks to Mr. Sushil gupta

marketing Manager of flexituff international pvt. for giving me an

opportunity to work on this project.

I would also like to thank Mr. Shilandra sir Senior marketing Executive,

Mr.Avinash sir and his team in document department of flexituff

international pvt. Ltd. for his guidance, inspiration, and constructive

suggestions, which helped me in the Project.

I must also thank the management & HR Executives of flexituff

international pvt. Ltd. to provide excellent opportunity and

environment to be able to pull my project through. Cooperation of the

staff is also gratefully acknowledged.

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 time

Sourabh joshi

PGDM 2nd sem

Indore magt.Institute indore


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Declaration

I hereby declare that this report on EXPORT DOCUMENTATION ANDPROCESS

has been written and prepared dy me during the academic year 2011-

2012.

This report (project)was done undertheable guidance and supervision

of prof. S.D. Joshi sir faculty, IMI INDORE, IN partial fulfilment of the

requirement for the POST GRADUATE DIPLOMA IN MANAGEMENT of

the IMI INDORE.

I also decleare this project is the result of

my own effort and has not been submitted to other institution for the

award of any degree or diploma.

Place : indore

Sourabh joshi

PGDM 3RD SEM.

Indore mgt. Institute indore


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COVER PAGE

EXPORT PROCESS AND

DOCUMENTATIONPROJECT REPORT

This project report entitled Export Process and

Documentation based on my knowledge and a

month long work experience with FLEXITUFF

International Pvt. Ltd. as a summer trainee.

SOURABH JOSHI

PGDM 3RD SEM.

IMI COLLAGE INDORE

EXPORTPROCESSANDDOCUMENTATION


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INDEX

Introduction of study

Objective of study

Research Methodology

Scope of the Project

Limitations of the study

Company Profile

Organization detail

Work pattern

Product range

Data Analysis and Interpretations

Findings

Bibliography


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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 make sample document pre and post

document of export etc. This project will also find out how flexituff

international Pvt. Ltd. could sustain in the competitive world by

providing vast range of bulky bags 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 felxituff internationals Pvt. Ltd. Product.

Flexi tuff international pvt. Ltd. Is worlds second largest

manufacturerof fibc bulk containor . They export 90% of there product

in all over the world .


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OBJECTIVE OF THE STUDY

To know about export import process.

To know what are the documents required before and after

selling product

To know different type of documents and its process

To know about sales process

TO know about product detail and its export policy


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RESEARCH METHODOLOGY

Collect data/information about process through:

Primary data collection:-

E-mail

Telephone

Invoice

Packing List

Secondary data collection:-

> Invoice

> Packaging list

> Shipping bill

> Internet


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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.

CENTRE : ALL OVER INDIA

RESEARCH : EXPLORATORY

RESEARCH TECHNIQUE : QUALITATIVE & QUANNTATIVE

TOOL USED : TELEPHONIC & E-MAIL

DATA SOURCE : PRIMARY & SECONDARY


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SCOPE OF THE STUDY

The scope of marketing research could cover the business problems

relating to the followings.

Types of consumers that compromise present and potential

markets.

Buying habits and pattern of consumption

Size and location of different markets, not only in India but also

overseas.

The prospects for growth or construction for the current markets

being served.

New mantras of emerging segments.

Marketing and manufacturing capabilities of competitors.

Most suitable entry timing.

The current and prospective competitive position.

Know about customer requirement.

To know about competitor and provide support .

Chances of improvement of current channels.


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LIMITATIONS OF THE STUDY

Not a panacea

Not an exact science

Limitation of time

Erroneous findings

Not exact tool for forecasting

In experience research staff

Narrow conception of marketing research


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COMPANY PROFILE

INTRODUCTION OF THE ORGANIZATION

Flexituff International Ltd, a company promoted by the renowned

Kalani group from Indore. Flexituff has the largest capacity in India

(2nd largest in the World) to produce PP woven based products. It has

the most modern Plant & Equipments under one roof to convert PP

granules to tapes, fabric, printing, extrusion lamination & bag making.

Flexituff is the first company to start BOPP printed & laminated ppwoven bags in India about seven years back. It is the leader in Jumbo

bags, Big bags and container liners. Due to continuous support and

strength derived from its own R& D and the international quality set &

maintained by its team of scientists, engineers & professionals, today,

Flexituff is exporting to more than 40 countries in the world and has

been receiving Best export awards year after year.

flexituff are also glad to mention here that Flexituff is the first and

only Asian company now successfully audited and certified by AIB

(American Institute of Food Bakers, USA) and BRC (British RetailersConsortium UK) to make direct food contact bags for supplies to

American and European companies. We are also certified for ISO 9001:

2000 and HACCP. In addition to three Units at Pithampur near Indore,

we are coming up with another most modern Unit at Kashipur at

Uttarakhand, where the commercial production is started. . This Unit

will have excise duty exemption for next 10 years and partial

exemption for CST.

flexituff are catering to different sectorslike; Agriculture produce-vegetables, fruits, rice, wheat, atta, besan,

salt, spices, as well as to other sectors like; fertilizer, chemicals,

cement, etc. We also have the experience & expertise to produce any

type of PP / HDPE bags to customer specifications. We can confidently

offer packaging solutions to prospective & other customers for

packaging of their products right from 1 KG to 20, 000 KG. For your


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ready reference, we are giving below list of our products:

* BOPP printed / laminated PP woven & Non-laminated bags with or

without liners**small bags*Jumbo bags*big bags*Container

Liners*Thermoformed wares / products**PP sheets*PP panels

(substitute to wood) *Leno bags*Printed & unprinted fabric*,etc.Manufacturer and exporter of all types of bopp printed bags, garden

waste bags, asbestos bags, form fitted liner bags, tunnel lift bags,

container liner bags etc

Manufacturers & exporters in India, having ISO 9001 certification.

Team Flexituff is committed to serving all your FIBC requirements. The

commitment stems less from the mammoth manufacturing facilities

we possess and more from our 5000 strong work force. Nothing

defines Flexituff better than its people. Young in outlook and rich in

experience, Team Flexituff strives for total customer satisfaction,

continuous improvement in quality and delivering ever larger value to

its buyers.

Despite the over arching team spirit that prevails at Flexituff, we

believe, commitment to customers begins with the individual.

Although, our 5000 member team works like a well greased machine,

it is the individuals - the cogs, who fuel its driving commitment to

quality and responsiveness.

100% customer orientation has helped Flexituff gain wide global

market share. A fact, acknowledged by the Govt. of India.Awards,

citations, growing volumes, expanding product range and satisfied

customers are achievements we now take in our stride. But nothing

fails to tickle us more than the idea of an impossibility.

Throw us a challenge and you have us hooked.


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company features

Team Flexituff nurtures its hunger to hit

the ball out of the park. We like to be known as partners who can rise

to the moment, who can be counted upon to meet a crisis head on...Size Matters So does integration...

but what matters most is the system of putting it to use. That is

where, Team Flexituff scores. I would like to believe we are engaged

in an enterprise which delivers ever greater value to our customers.

And we can partner ourselves as vendors who can be intrinsically

relied upon to deliver any FIBC requirement Within an exacting

spectrum of cost, quality and delivery schedules.

I would like to believe, that our products impact the business of our

clients. That our endeavors can earn profits for our stakeholders,

value for our customers and equity for our brand.

Emergencies...? No sweat !

Pharmaceuticals...Bulk Drugs...Cement...Polymer

Resins...Agro Produce...Chemicals... you name it. Team Flexituff has

an FIBC ready to package your product.

You want it swiftly? No sweat! You want last minute additions to the

your existing order. No sweat! You want a complicated sample in 72

hours? No sweat! You want 1000 more bags in tomorrow's shipment?

No sweat! You want to upstage your competitor? No sweat!

Our fully integrated plant eats emergencies for breakfast. Our

dedicated Account Handlers stay in daily contact with you. Never do

you wonder who was the guy you talked to last. Never do your emails

stay unresponded for more than 24 hours. Never do we give you a

reason to sweat. Say goodbye to sweat! Turn to Team Flexituff.

Decoding your needs, pre empting themThe wherewithal to service your requirements in every industry.

In today's market dynamics, brands seek to reach all corners of theworld while retaining geographical production advantages. This is

where FIBCs can help ensure gobally standardized quality, delivered in

local flavor. We believe the advantages of FIBC are here to stay and in

days to come customization will evolve itself to a very fine level.


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We provide bulk packaging, we are well placed to cater to such

customized requirements. Our integrated plant is uniquely poised to

address this process of customization. From the polypropylene pellets

used to extrude the yarn, to the bales of finished FIBC packed to

customer specifications, our across the board integration allows us tocustomize each individual stage of your requirement.Our rich and varied experience of developing bulk packaging solutions

for various industries have developed into a common capital for our

buyers. An asset, which can be tapped by our clients for developing

FIBC designs, for addressing material configurations and logistical

alternatives.

Our R&D initiatives have worked well for our clients. We continually

strive to optimize our products to render a more efficient service while

endeavoring to reduce costs, enhance quality and shorten delivery

schedules. The benefits of which, obviously, get passed to our buyers.

An endeavor which has helped reduce the cost of D Bag drastically.

Bulk transportation of explosive and static sensitive products can now

be extremely economical. These bags are tested on a complex matrix

of parameters to enable us to deliver an FIBC, which is completely

safe and secure.

"At any given time, Team Flexituff is travelling to be closer

to you. No distance is too large to not know your needs. We do realize

that opportunity dances with those on the dance floor."


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Market place and MARKET FOOTPRINTGERMANY; FRANCE; IRELAND; NETHERLANDS;

SPAIN; MEXICO; UNITED KINGDOM; BELGIUM;

ITALY; PORTUGAL; GREECE; BRAZIL; USA;

UAE; RUSSIA; KENYA; RWANDA; CHILE;

ERETRIA; CANADA; SWITZERLAND; AUSTRALIA;

ALGERIA; JAPAN; NEW ZEALAND; CHINA;

EGYPT; SINGAPORE; SWEDEN; ISRAEL; AUS


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Delivering to your exeptationThe expectations of response, confidentiality and post sales service.

At Flexituff, we aim to change your experience of procuring an

FIBC. A responsive and singularly customer oriented organization,

we aim to evolve into a one stop FIBC provider for our buyers.

Whatever be your need of bulk packaging, we would like to explore

the solution and service your need.

As a tailor made product, we understand the buyers' expectationsof evaluating multiple options before selecting the ideal one. Our in-

house Design and Development Centre is able to give you numerous

alternative design samples, with in your specified time frame.

The cofideltiality factor

We understand that most buyers and resellers would like to be assured

of the confidentiality of their product specifications, design and end

users. We consider our strategic partners members of our extended

family and pivots on which our volumes and global reach rests. As

corporate ethics, Flexituff is committed to maintaining this

confidentiality and would like to reassure our buyers in this context.

The reach factor

Flexituff employs the largest team of travelling professionals to be in

easy reach of our buyers. Our technically savvy, multilingual team can

promptly touch base with you in an emergency. All our front line

professionals are competent in English and language is never a barrier

when dealing with us.

The Print Accuracy Factor:

As a policy, Flexituff ensures 100% approval of print and labels before

production. The print section is equipped with a digital camera, where

all print production is photographed and emailed for approval before

commencement of commercial productions. A video conferencing set


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up is also being installed to address the need of live discussions.

The Post Sales Service Factor:

FIBC being a 100% customized product, bag approvals and

specification tweaking are routine hurdles in our endeavor for buyersatisfaction. Flexituff addresses these with a view to finding a

mutually acceptable solution. Any problem at our clients' end is

OURproblem and has to be resolved mutually and amicably.

Flexituff International Limited is one of the very few fully integrated

plants is the world. Its 100% integration permits us to deliver our

products in multiple options while retaining 100% control over the

manufacturing process. Needless to say, Flexituff is fully independent

from the vagaries of

Outsourced material or workmanship.

Last minute change in specifications, add on orders can be quickly

and comfortably accommodated at Flexituff. We are able to maintain

full traceability of material and workmanship in our Quality

Assurance system


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TOTAL QUALITY CONTROL

enhanced customization, last minute changes,

faster sampling and lower turn around delivery time are the winning

advantages of our vertical integration.

Microprocessor controlled extrusion ensure excellent input for thesubsequent operations.

Extrusion plants at Flexituff - the very life blood of the manufacturing

process, are state-of-the-art Starlinger. This ultimate extrusion

technology comes alive in the experienced hands of our workforce to

process over 60,000 kgs. of virgin polymer everyday. Producing

impeccable high tensile strength tapes with optimum elongation - a

pre requisite for perfect fabric. Precision winding being the key to

weave fine fabrics, all tapes are wound by new generation inverter

controlled winders to produce even bobbins. Quality checks begin

from the very initial stages of Tape-making. Every lot produced is

checked for its Denier, Strength, Elongation and Color.

If 3 layer co-extruded liner plant is a luxury, so be it. Our buyers

deserve this luxury. This over qualified plant ensures that we produce

liners with zero pinholes, fish eyes or any other extrusion flaw.

At Flexituff, microprocessor controlled Form-fit Liner Machine cuts,

seals and form-fits the liner in a dust-free clean room environment

conforming to ISO Level-7 (< 10,000 PPM). Be it Glued, Tabbed or

Flanged-in, well executed process eliminates liner twisting inside the

bag.

The vital facility of coating the essential prerequisite for making

FIBCs is a 2.4 meter wide coating plant laminating both circular and

flat fabric in thicknesses ranging from 15 to 80 microns. A unique

fabric cleaning device, designed and developed in-house, is mounted

on the coating machine to avoid any foreign particle going in-between

Fabric and the coating.


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As the foremost manufacturer of FIBC in the world, we are sensitive to

decoding customer needs. Our design and development team is

committed to evolving bulk packaging solutions for your specific

requirements. Infact, we try to preempt them..

Flawless weaving, off the floor stacking of stretch wrappedrolls and Unsurpassed 6 colour printing.

Fine and consistently even fabric is the face of

our FIBCs. Over 3 million square feet of high quality fabric is woven

everyday on an array of wide width Starlinger looms. Computerized

weaving machines with the help of skilled hands produce consistent

quality fabric. In the end what you have from this state-of-the-art

facility is an amazing collection of poly woven fabric, ranging 60 GSM

to 300 GSM ready to be turned into burly jumbo bags for stringent end

applications.

Flexituff's R&D initiatives are amply reflected in its ultrasonic slitting

and sealing technology which makes our fabric comparable to tuck in

fabric of a Sulzer loom.

Flexituff recognizes that for a critical food contact application, its not

enough to mere make a high quality fabric, the fabric also needs to be

contamination-free, carrying no foreign particle or even a speck of dirt.

To achieve this high level of fabric cleanliness, fabric is stretch-

wrapped on looms itself. Raising the bar on cleanliness, the stretch

sealed fabric rolls never touch the ground.

4 color printing a rare facility with others is pass at Flexituff. For,

we utilize a 6 color flexographic printing machine of a kind, which

makes the fabric come alive. This excellence finds it's match in the

fabric's evenness to create sharp, even, non-fading prints repeats

after repeats.

At Flexituff, we hardly believe that quality is what clients demand. Out

here, we believe, quality is what you live. And breathe. Quite simply,

the cost of making a quality product is seldom more than that of a sub

standard product. But its value, far higher.

.


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For consistency in quality and schedules, even the smallestauxillary is manufactured in-house.

Genuine quality, is a chain without a weak link.

Any FIBC, therefore, is as good as the quality of input that goes into

making it. Recognizing that even a small leak can sink a ship, Flexituff

rather chose to invest in establishing facilities for making every FIBC

input in-house. It has paid rich dividends in terms of customer

satisfaction.

Take for example high tenacity sewing yarn for FIBCs. Flexituff

commissioned state-of-the-art Fare multifilament plant which produces

7 GPD UV stabilized sewing thread in the deniers ranging 420 to

5200.also set up in-house is the facility of twisting the filament yarn

into sewing thread to required specifications.

Or take the all important webbing.

A battery of needle looms make 75 million metres of webbings

required to produce bags at Flexituff. In-house production not only

ensures required level of UV stability and the strength but also

customizing of webbing to colours and weaving required by the client.

The list is quite exhaustive. Be it filler-cord for sift proofing, Tie-tape,

rope and B-lock bag for closure, document pouch, identification labels,

printing stereosall inputs get made in-house.


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An intelligent, skilled and trained workforce assembles thecomponents into efficient bulk containers

The assembly section is planned for neat and

clean environment, smooth workflow and strict adherence to Clean

Room Specifications. The specially trained work force, qualified for

basic intelligence parameters and quality orientation works as a team

to deliver consistent product quality.

Full scale production for any bag starts only after the first prototype

bag has been certified by the QC in all respects, including Load Test.

Each and every bag is inspected for all critical and aesthetic

parameters.

To ensure contamination-free bag, every bag is cleaned on

pneumatically-operated cleaning machine where double action

blowers with alternating blowing and suction cycles eliminate the

smallest loose particles from the bag.

All food contact application bags essentially pass through a Metal

Detector unit eliminating any chance of metalno matter how light or

smallto slip in the bag.

TraceabilityFlexituff believes in acquiring wisdom from its mistakes. To that

effect, Flexituff has in place a complete traceability system to track

down the root cause of deviation, should they happen to occur. All

bags carry a unique code number, from which Flexituff can trace the

set of workers who made the bag, the date on which it was made up,

details and properties of fabric and all other components - going back

to the batch of raw material which was used for the extrusion.

This system allows for course-correction by identifying the root cause

of the problem and carrying out corrective measures to avoid

reoccurrence.


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U.V. Resistance testBulk bags are often subject to intense UV Rays for months at a time.The body fabric and the seams must survive this exposure without

weakening. FIBCs often undergo rapid degrading under the influence

of Sun Light, unless they have been stabilized in durable fashion. Sun

Light and Moisture causes millions of dollars of material damage every

year.

To ensure that Flexituff FIBCs would last outdoors without weakening,

every fabric and the yarn produced undergoes a U V Resistance test in

State of Art QUV accelerated weathering tester.Accelerated QUV tester reproduces the damage caused by sun light,

rain and dew. QUV tests material by exposing them to alternating

cycles of light and moisture at a controlled elevated temperatures.

QUV Resistance test conforms to EN1898 and ASTMG154.

Appreciating the need to be 100% right every time, as an abundant

precaution, Flexituff has instituted additional layer of quality audit.

Where a team of professionals randomly draw 10% bags for inspection

from duly baledready to go bags. Any minor deviation in the drawnsample leads to entire lot to go back for re-inspection and

segregation.

Packaging these packages is an art in itself at Flexituff. Each batch is

packed in compact cuboid bales which are duly stretch-wrapped and

marked for easy readability and stackability at clients place. The new

European and the U.S. Pallet Norms ISPM-15 are followed as every

individual pallet is treated and marked.

Load Test RigFirst bag for every order and also randomly selected bags from daily

lot get continually load tested on our 4 Load Cell Test Rig. Bags get

tested for 5, 6 or 8 times their Safe Working Load. This in-house test

facility is very vital to the confidence of our buyer as it eliminates any

possibility of an un-safe bag getting production.


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Flexituff manufactures one of the widest

range of FIBCs in the world. Whatever be your packaging and bulk

transportation requirement, you will find a suitable product in ourcomprehensive range. Moreover, with our in house Design &

Development Center, any packaging requirement can be aptly

developed, tested and offered as sample very quickly. Some of the

standard designs at Flexituff are as under:

High-end Bags for food and pharma industry

These bags are made with a high degree of precision. Precautions

have to be taken so as to avoid contamination of any kind from

entering the bag. These are normally laminated or lined bags made

in a clean environment. Their main application is in packaging of

food products, pharmaceutical products, special plastics for

manufacture of specialized electronic items such as compact discs,

circuit boards, etc.

Sift -proof Bags

These bags are needed for products which are powdery in nature

and are stitched in a special manner so as to block needle holes

thereby preventing sifting of powder from bags

Baffle Bags

These bags have baffle restraints stitched onto all corners of the

bag which prevent the bags from expanding beyond a point. Mainly

these bags are used where cargo has to be containerised or space

has to be saved.

Form-fitted Liner Bags

These are special FIBCs where the liner of the bag is also shaped in

the shape of a bag itself. These liners can be attached to bag by

various methods i.e. gluing, tabbing or sewing. The main purpose of

doing this is to avoid extra liners inside the bag and liner easily

forms the shape of the, bag rather than creating bulges in the bag.


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Builder Bag / Tunnel-lift

These are used specifically in construction and aggregate industry

and are used for filling sand, construction waste or aggregates.

They are simple FIBCs and are high volume usage bags owing to

nature of the industries that they are used in. A relatively recentdevelopment in this industry has created a tunnel-lift bag which

effectively can be used without a pallet and uses body fabric as a

lifting mechanism apart from 4-loops. By avoiding the use of pallets,

it saves cost to end-users as a package.

Single-loop Bags

These bags are normally made for fertilizer or cement packaging.

These bags are different in construction where body-fabric of bag

itself is formed into a lifting loop

Sling Bags

These are mainly used to carry 20 to 40 bags of 25 to 50 kg each.

Thus, it is an outer bag which enables easy carrying or mechanical

handling of small bags without using pallets

Flexituff manufactures one of the widest range of FIBCs in the

world. Whatever be your packaging and bulk transportation

requirement, you will find a suitable product in our comprehensive

range. Moreover, with our in house Design & Development Center,any packaging requirement can be aptly developed, tested and

offered as sample very quickly. Some of the standard designs at

Flexituff are as under:

High-end Bags for food and pharma industry

These bags are made with a high degree of precision. Precautions

have to be taken so as to avoid contamination of any kind from

entering the bag. These are normally laminated or lined bags made

in a clean environment. Their main application is in packaging offood products, pharmaceutical products, special plastics for

manufacture of specialized electronic items such as compact discs,

circuit boards, etc.

Sift -proof Bags

These bags are needed for products which are powdery in nature


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and are stitched in a special manner so as to block needle holes

thereby preventing sifting of powder from bags

Baffle Bags

These bags have baffle restraints stitched onto all corners of the

bag which prevent the bags from expanding beyond a point. Mainly

these bags are used where cargo has to be containerised or space

has to be saved.

Form-fitted Liner Bags

These are special FIBCs where the liner of the bag is also shaped in

the shape of a bag itself. These liners can be attached to bag by

various methods i.e. gluing, tabbing or sewing. The main purpose of

doing this is to avoid extra liners inside the bag and liner easily

forms the shape of the, bag rather than creating bulges in the bag.

Builder Bag / Tunnel-lift

These are used specifically in construction and aggregate industry

and are used for filling sand, construction waste or aggregates.

They are simple FIBCs and are high volume usage bags owing to

nature of the industries that they are used in. A relatively recent

development in this industry has created a tunnel-lift bag which

effectively can be used without a pallet and uses body fabric as a

lifting mechanism apart from 4-loops. By avoiding the use of pallets,it saves cost to end-users as a package.

Single-loop Bags

These bags are normally made for fertilizer or cement packaging.

These bags are different in construction where body-fabric of bag

itself is formed into a lifting loop

Sling Bags

These are mainly used to carry 20 to 40 bags of 25 to 50 kg each.

Thus, it is an outer bag which enables easy carrying or mechanical

handling of small bags without using pallets


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CONDUCTIVE TYPE-C BAGS:

These are special bags which allow static electricity to pass through

the bag when the bag is earthed. Fast filling and discharge of an FIBC

by a powdered material causes static electricity to accumulate inside

the bag. Further, to avert the dangers of explosion due to such

accumulation of static charge, conductive properties are created in

the bag and bag is earthed to allow safe discharge of electrical

charge.

DISSIPATIVE TYPE-D BAGS:

These bags are made by using a technology which allows static

electricity charge to dissipate in micro-volts without a bag being

earthed

Garden Waste Bags:

Your way to a better and cleaner environment... versatile garden

waste bags for County Councils, Collection Services, Farms and

Individual Residences:

Ideally suited for:

Grass cutting

Hedge trimming

Woody waste

Kitchen waste

Leaves & Shrubs

BOPP Printed Bags:

Be different! Do away with monotony and dullness of your bags. Style

them with our high quality 6 color magic printing.


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FIBCs? you name it!

As the foremost manufacturer of FIBCs in the world, we are sensitive to

decoding customer needs. Our Design and Development team, is committed

to evolving bulk packaging solutions for your specific requirement. In fact,

we try to pre empt them.

Flexituff is follow CSR

People FocusDreams are what drive us. We respect people and value their individual

differences and this has led to a free, vital corporate culture that

encourages creativity.

We are fortunate to have so many talented people with different

backgrounds, interests and skills who come together to create

offerings for the future.

Flexituff is a place where teamwork is essential. Yet our employees

also maintain the freedom to work on their own, be creative and make

their own decisions. And most of all, grow both personally and

professionally.

Equal Opportunity & Meritocracy:

Environment, Health and Safety:

Since its inception, the Flexituff core values of commitment to safety,

health and the environment, high ethical standards and respect for

people have been the cornerstone of who we are and what we stand

for.

Well communicated EHS policies ensure that production targets never

override the safety of a person and that as a responsible corporate, we

remain an environmentally responsible neighbor in the communities

where we operate, acting promptly and surely to correct incidents or

conditions that endanger health, safety or the environment.

Recruitment and promotions policy

Recruitment and promotions in Flexituff are all based strictly on merit.

Equal opportunities are provided to all without regard to race, caste,

religion, colour, ancestry, marital status, gender, age or nationality.


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The Company believes that people accept meritocracy as a just and

equitable system, and contribute best under optimum challenges and

opportunities & differential rewards commensurate with performance.

At Flexituff, our pursuit to achieve good governance is an ongoingprocess, thereby ensuring truth, transparency, accountability and

responsibility in all our dealings with our employees, shareholders,

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EXPORT DOCUMENT PROCEDURE

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 orderfollow 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:----

PROFORMA INVOICE (5COPY)

PACKING LIST (5COPY)

SHIPING BILL (FULL SET 6COPY)

ARE1 FROM EXSICE DEPARTMENT

MARINE INSURANCE POLICY

COPY OF PURCHASE ORDER / L/Cvi. Above those documentation sends to CHA by exporter.

vii. Based on these documents CHA agent completes the octroi

formalities, obtain port permit and prepare shipping bill which is

a customs documents.


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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.

The shipping line gives mate receipts to CHA agents after the payment

of ocean freights and port due obtains the bill of lading

i. (B/L) from shipping line .B/L is a proof of dispatch of cargo and also

a negotiable document.

ii. 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

iii. After that the exporter submitted above these documents for

negotiation to the bank which include :----

Commercial invoice (5COPY)

Packing list (5COPY)

SDF form

Original copy of purchases order

Certificate of origin


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Bill of exchange

Gurranty remmittence

Shipment advice

After that, bank scrutinizes these documents and if found correct

make payment to exporter against documentations.


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Export document detailed analaysisProforma invoice

the following details are pertinent to the setting up of the proforma

invoice and need careful attention:

A complete and clear description of the goods in question

The quantity of goods in question including the number and kinds

of packaging involved

The total price of the goods (and unit price where applicable)

The currency in which the goods will be sold (e.g. US dollars or

rands)

The likely delivery schedule and delivery terms

The physical addresses of both the exporter (referred to as theshipper) and importer (sometimes referred to as the consignee)

The payment methods, for example cash in advance or L/C

The payment terms, for example 30 days on sight

The Incoterm to be used

Who is responsible for the banking fees and other related costs

(insurance and freight costs are covered by the incoterm in

question)

The exporter's banking details

The country of origin of the goods The expected country of final destination

Any freight details such as the port of loading and discharge

Any trasshioment requirements

Any other information relevant to the order

Commercial invoice

After the pro-forma invoice is accepted, the exporter must prepare a

commercial invoice. The commercial invoice is required by both the

exporter (to obtain the necessary export documents to enable the

consignment to be exported, to prove ownership and to enable

payment) and importer (who requires the commercial invoice to

facilitate the import of the goods in question). In exporting, the

commercial invoice is considered a very important document as it

serves asthestarting document that underpins an export transaction.


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The commercial invoice is essentially a bill (i.e. invoice) from the

seller (the exporter) to the buyer (the importer) describing the goods

to be sold and the terms involved. The commercial invoice will

normally be presented on the exporter's letterhead and will be

addressed to the importer. It should contain full details of theconsignment, including price and other related costs, in order to

facilitate customs clearance. It must be signed and dated. Freight and

insurance, when included in the selling price, should be itemised

separately as these charges are not subject to duty in certain

countries. There is usually very little, if any, difference between the

final proforma invoice accepted by theimporter and the commercial

invoice, except that the one is titled "Proforma Invoice", while the

other is titled "Commercial Invoice".

The following details need to appear in the commercial invoice:

The name of the shipper/exporter and their contact details,

including physical address

The name of the importer/consignee and their contact details,

including physical address

An order number of reference to correspondence between the

supplier and importer

A complete and clear description of the goods in question

(including brandmarks and the HS number)

The packing details unless provided in a separate packing list

The quantity of goods in question including the number and kinds

of packaging involved

The external dimensions, cubic capacity, weight, numbers and

contents of each package shipped.

The total price of the goods (and unit price where applicable)

usually quotes as a CIF/FOB price

The currency in which the goods will be sold (e.g. US dollars or

rands)

The type and amount of discount given

The likely delivery schedule and delivery terms

The payment methods, for example cash in advance or L/C

The payment terms, for example 30 days on sight

The Incoterm to be used


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Who is responsible for the banking fees and other related costs

(insurance and freight costs are covered by the incoterm in

question)

What the freight and insurance charges are The exporter's banking details

A declaration of the country of origin of the goods

The expected country of final destination

Any freight details such as the port of loading and discharge

Any trasshipment requirements Any other information relevant to

the order

Packing list

When you prepare your goods for shipment, you will be required to

prepare a detailed export packing list. This is a formal document

that itemises quite a number of details about the cargo such as:

Your name and contact details

The importer's/consignee's/buyer's name, address and contact

details

The gross, tare and net weights of the cargo

The nature, quality and specifications of the product being

shipped

The type of package (such as pallet, box, crate, drum, carton,

etc.)

The measurements/dimensions of each package

The number of pallets/boxes/crates/drums, etc.

The contents of each pallet or box (or other container)

The package markings, if any, as well as shipper's and buyer's

reference numbers

It is also important that the details on the packing list (such asshipper's/importer's details, number of items involved, etc.), match

what is stipulated on the commercial invoice and bill of lading/airway

bill. You can imagine that if there is a mismatch between the packing

list and the other transport/export documents that this may lead to

closer scrutiny of the cargo and may ultimately result in delays in the


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cargo arriving at its destination! Note that pricing information is not

required on the packing list.

The purpose of the packing list

The packing list should be attached to the outside of a package in a

waterproof envelope or plastic sheath marked "Packing list enclosed".

The list is used by the shipper or forwarding agent to determine (1) the

total shipment weight and volume and (2) whether the correct cargo is

being shipped. In addition, customs officials (both local and foreign)

may use the list to check the cargo. Packing lists come in fairly

standard forms and can be obtained from your freight forwarder.

Don't make mistakes with the packing list

It is essential that the packing list agreeexactlywith all the terms and

conditions of the export sale. It is important for you to realise that any

mistake on the packing list may cause a delay in clearance at the port

of destination. Customs Authorities in the target country have the right

to delay the clearance of the shipment until the importer provides a

packing list reflecting the real contents of the container (should your

packing list be incomplete or incorrect). If all the information required

for the packing list is already stated in the commercial invoice, then

the packing list may be unnecessary. Our recommedndation is toprovide it anyway - you don't want the consigment delayed simply

becuase a customs official demands to see a packing list (you can

never provide too much information).

Letter of credit

Sight credits

This is an easy enough term to explain. A sight credit or

L/C is one which paid upon presentation of the requireddocumentation (as stipulated in the original L/C) to the

issuing or confirming bank. As exporter, you need to be

careful however, as some L/Cs state that payment will

only be made at a specified branch counter of the

issuing or confirming bank (and won't necessarily be

paid or transferred directly into your account). The


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process of having to go to a particular branch and

receive payment and then to transfer this payment into

your account will slow down the payment process and

may add further costs to the overall process. Thus,

when working with sight L/Cs (or any L/Cs for thatmatter) make sure where payment will be made.

Usance credits

An L/C can specify any credit period that you have

negotiated with the importer. A letter of credit that that

incorporates a payment after a given term (e.g. 60

days) is known as a usance credit (also referred to as a

term or acceptance credit). The correct phrase is hat

the L/C is at usance, meaning that it will come into

effect at some future date (also referred to as

maturity).

You should note that the maturity date may also have

further stipulations associated with it; for example:

90 days sight

120 days from Bill of Lading (B/L) date

60 days and upon issuing of a FDA (US Food andDrug Administration) clearance

Some of these provisos can have a significant impact

on your receiving payment and you should make

yourself fully aware of any such provisos to your L/C. A

usance/term credit will require you, as exporter, to

finance the gap between delivery and payment.

Transferable credits

An irrevocable L/C may also be transferable. In the case

of a transferable L/C, the exporter can transfer all or

part of his/her rights to another party. Transferable

letters of credit are often used when the exporter is the

importer's agent or a middleperson (i.e. export agent)


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between supplier and importer, and not the actual

supplier of merchandise. With a transferable letter of

credit, the exporter uses the credit standing of the

issuing bank and avoids having to borrow or use his

own funds to buy goods from a supplier. Hence, it is aviable pre-export financing vehicle. Before transfer can

be made, the exporter must contact, in writing, the

bank handling the disbursement of funds - the

transferring bank. Transferable L/Cs can only be

transferred based on the terms and conditions

specified in the original credit, with certain exceptions.

Therefore, it may be difficult to achieve flexibility and

confidentiality with this finance method.

The transferring bank, whether it has confirmed the

letter of credit or not, is only obligated to make the

transfer to the extent and in the manner expressly

specified in the L/C. Transferable L/Cs involve specific

risks. When a bank opens a transferable letter of credit

for a buyer, neither party can be certain of who will be

the ultimate supplier. Both parties must rely upon the

importer's assessment of the exporter's reputation and

ability to perform. To reduce overall risk and prevent

the shipment of substandard goods, an independent

certificate of inspection may be required in the

documentation.

For simplicity's sake, many banks prefer single transfer

and discourage multiple transfers, but will do multiple

transfers if conditions are right. Partial transfers can

also be made to one or several suppliers if the terms of

the original L/C allow for partial shipments. The

processing of this type of letter of credit can become

complicated and tricky, requiring logistics coordination

and the highest level of precision. Incomplete and/or

ambiguous information on the transferable letter of

credit almost always leads to problems. Furthermore,

the beneficiary of the transferable letter of credit must


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be available throughout the entire negotiation process

to assist the transferring bank.

Revolving credits

The term "revolving" is used to describe a letter of

credit, which, incorporates a condition whereby the

credit amount is to be renewed or reinstated

automatically without the need for a specific

amendments to the credit. This type of credit is used

when regular trade is conducted between an exporter

and an overseas buyer. A revolving credit can be

irrevocable or confirmed. Although a credit may, in

theory, revolve in relation to amount, in practice this is

rare, as it would mean that there might be no limit to

the number of times a specific amount could be drawn.

A credit, which revolves in relation to time, is a much

more common form of a revolving credit. For example, a

revolving credit could be made available for an amount

of US$ 10 000 per month (irrespective of whether any

sum was drawn during the previous month) with an

overall validity of six months. A revolving credit may

be:

Cumulative, i.e. any sum not utilised during the

first period is carried over and may be utilised in

the subsequent period.

Non-cumulative i.e. any sum not utilised during

the first period ceases to be available in

subsequent periods.

Back-to-back credits

Back-to-back L/Cs are another common occurrence in

the world of international trade. When an exporter, who

is not a manufacturer, but obtains goods from a

supplier by acting as an export agent for the supplier

for example, has received an L/C from an importer, the

exporter, in turn, may request his bank to open a L/C in


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favour of his supplier on the strength of the existing

L/C. These two credits are said to be "back-to-back",

that is to say the one is issued on the security of the

other. A bank will only consider opening a second

credit if the same goods are involved in both credits. Interms of the back-to-back L/C, the exporter is both the

beneficiary/exporter of the first credit and the

applicant/buyer for the second credit.

Standby credits

A standby L/C is one which is issued in favour of the

exporter for the purpose of "backing-up" certain

specified obligations of the importer. A standby letter

of credit requires the exporter's presentation of

documents which indicate that importer has not met

the obligations which the standby letter of credit

backs-up. A standby letter of credit, therefore, is not

intended to be drawn upon by the standby letter of

credit beneficiary unless the standby letter of credit

applicant does not meet its obligations as specified by

the standby letter of credit.

Certificates of origin

A Certificate of Origin (C/O) is required by some countries and is

intended to certify to the importing authorities as to which country the

products being imported were manufactured in - that is, the C/O

certifies that the imported product meets the 'Country of Origin'

requirements set by the importing country and which are expected of

their foreign suppliers. It may be required that the C/O includeinformation such as local material and labour content. In many cases,

a statement of origin printed on company letterhead will suffice,

although the document may need to be certified in some way. In other

instances, specific types of C/Os may be required, such as the

Generalised System of Preferences (GSP) Form A and the Chamber of

Commerce C/O.


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Certificates of Value (and Origin)

A Certificate of Value is intended to confirm the value of a cargo to

assist in quick clearing of the goods in the country of destination.

Often the Certificate of value is combined with a Certificate of Origin

and is referred to as a Certificate of Value and Origin (CVO). A CVO

outlines details about the labour and packing costs, royalties or

commissions (if applicable), freight charges and any overseas

insurance costs. The CVO also provides an exporter's declaration and

statement, in the form of clauses, about the value and origin of the

goods.

Fumigation certificate

Some countries, such as Australia, Canada, New Zealand, the US and

the UK, are very strict about letting in goods that might contain

bacteria or insects that could harm their agriculture. For this reason,

they may require a fumigation certificate - also referred to as a 'pest

control certificate - as proof that the packing materials e.g. wooden

crates, wood, wool etc., have been fumigated or sterilised. Fumigation

certificates usually contain details such as purpose of treatment, the

articles in question, temperature range used, chemicals and

concentration used, etc. Sometimes they may be required for sea

shipments, but not for air shipments. Your freight forwarder should be

able to advise you as to whether you require such as certificate.

Bill of landing

A BOL is one of the oldest and most common forms of transportation

documents in use today. It is a document that establishes the terms of

a contract between a shipping company (or its agent) and the

exporter/shipper (or agent, such as a freight forwarder). Within this

contract, it is agreed that freight is to be moved between specifiedpoints for a specified charge.TransporThe BOL is normally completedby the exporter on forms issued by the shipping carrier. The BOL

serves as a document of title, a contract of carriage, and a receipt for

goods. The BOL also describes the kind and quantity of goods being

shipped (such as the number of packages, the weight and


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consignment dimensions), the shipper (or exporter), the consignee (the

person or firm to whom the goods are being shipped), the ports of

loading and discharge, and the carrying vessel.

Key points of BOLs

The key points that you should take note of, are:

The BOL is a legal contract between the shipper (normally the

exporter) and carrier (the shipping line represented by the ships

master or shipping line representative)

As a legal document, the BOL plays an important role in releasing

payment from the bank in conjunction with the Letter of Credit

A BOL is a document issued by a carrier, e.g. a ship's master or

by the carriers shipping department, or a representative of either

of these two

The BOL must be signed or authenticated by the person issuing

the document

The BOL must name the ship/vessel carrying the goods

The BOL does not afford the holder of the document any

ownership of the goods listed in the document (it is not a

negotiable document)

The BOL acknowledges that specified goods have been received

on board as cargo for conveyance

The BOL specifies both the ports of loading and discharge

The BOL normally has a named consignee

The BOL will specify the goods to be conveyed, their number,

weight and volume

BOLs are usually issued in three originals; one for the

exporter/shipper, one for the shipping line and one for

receiver/consignee of the goods.

An ocean bill of lading is the traditional BOL used wihen shippinggoods with shipping lines. The ocean (also referred to as a marine)

BOL is a document that outlines the terms between an

exporter/shipper and the international ocean or marine carrier (i.e.

shipping line) for the shipment of goods to a foreign location


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overseas. The description of a BOL that was provided earlier in this

section pertains mainly to an ocean BOL.

A through BOL is a contract that covers the specific terms agreed

to by an exporter/shipper and carrier. This document covers the

domesticandinternational transportation of export merchandise. It

provides the details of the agreed upon transportation between

specific locations (usually the exporters premises and the

exporters customers premises in a foreign destination) for a set

monetary amount.

An air waybill is a BOL that establishes terms of flights for the

transportation of goods both domestically and internationally. This

document also serves as a receipt for the exporter, proving the

carrier's acceptance of the exporters goods and agreement to

carry those goods to a specific airport. Essentially, an air waybill is

a type of through bill of lading waybills. This is because air waybills

may cover both international and domestic transportation of goods.

By contrast, ocean shipments require both inland and ocean bills of

lading. Inland bills of lading are necessary for the domestic

transportation of goods and ocean bills of lading are necessary for

the international carriage of goods. Therefore, through bills of

lading may not be used for ocean shipments.

Inland and ocean BOL may be negotiable or non-negotiable. If the

BOL is non-negotiable, the transportation carrier is required to

provide delivery only to the consignee named in the document. If

the bill of lading is negotiable, the person with ownership of the bill

of lading has the right of ownership of the goods and the right to re-

route the shipment

Straight bill of lading

This bill states that the goods are consigned to a specified person and

it is not negotiable free from existing equities, i.e. any endorsee

acquires no better rights than those held by the endorsor. So, for

example, if the carrier or another holds a lien over the goods as

security for unpaid debts, the endorsee is bound by the lien although,


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if the endorsor wrongfully failed to disclose the charge, the endorsee

will have a right to claim damages for failing to transfer an

unencumbered title. Also known as a non-negotiable BOL.

Order bill of lading

This bill uses express words to make the bill negotiable, e.g. it states

that delivery is to be made to the further order of the consignee using

words such as "delivery to Company Name Ltd. or to order or assigns".

Consequently, it can be endorsed by Company Name Ltd. or the right

to take delivery can be transferred by physical delivery of the bill

accompanied by adequate evidence of Company Name Ltd.'s intention

to transfer. Also known as a negotiable bill of lading.

Transshipment clauses

If a BOL incorporates a clause stating that the carrier reserves the

right to tranship, then the transhipment is allowed even if an

accompanying Letter of Credit (L/C) prohibits transhipment.

Loading on deck

Unless otherwise required by the Letter of Credit (L/C), the BOL should

not indicate that the goods are to be stored on deck. Modern container

ships carry about one-third of the containers on deck. Consequently,

the BOL may contain a provision that the goods may be carried on

deck. If such a provision is contained in the BOL, then the loading on

deck is acceptable even if the Letter of Credit (L/C) stipulates

otherwise, provided that the BOL does not specifically state that the

goods are or to be stored on deck.

AIR WAY BILL

Air waybills (AWB) are a form of BOL and are used for both domestic

and international flights. An AWB (also referred to as air consignment

note or airway bill of lading) refers to a documentary receipt issued by

a carrier (i.e. airline) in favour of a shipper for goods received and is


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evidence of the contract of carriage to carry the goods to a specified

airport under specified conditions, but it is not a document of title to

the goods. Hence, the AWB is non-negotiable. It is usually the shipper -

the exporter - (or their agent) that completes the AWB. It serves as:

Proof of receipt of the goods for shipment

Evidence of the contract of carriage

An invoice for the freight, reflecting the shipper, the consignee

and the goods being shipped, as well as the full freight amount

A certificate of insurance (if carriers insurance is requested by

the shipper)

A guide to airline staff for the handling, dispatch and delivery of

the consignment

A means of clearing the goods through customs

Usually, the AWB consists of three originals and nine copies. The first

original is intended for the carrier (airline) and is signed by the

exporter (or agent); the second originalthe consignee's copyis also

signed by the exporter (or agent) and accompanies the goods; the

third original is signed by the carrier and is handed to the exporter (or

agent) as a receipt for the goods after they have been accepted for

carriage.

The AWB must be accompanied by the commercial invoice, packing

list, certificate of orgigin and any other document which may be

necessary to clear the goods through customs (such as any health

certificates, etc.). AWBs have tracking numbers which can be used to

check the status of delivery and current position of the goods being

trasnported.

Marine insurance

Because of the enormous risks involved ininternational trade, it has become a core part of

the international trading process for the parties

involved to insure their respective risks. One of

the major risks that international traders

(exporters and importers) face is the risk of

damage or loss during the trasnportation process.


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This is where marine insurance comes into play.

'Marine insurance' is thus the term used to

described the insurance taken out to cover the

risks involved in all forms of transportation, for

example, sea, road, rail and air, from the pointwhere the goods are loaded onto their first form

of transport until they arrive at their final

destination.

Why bother with marine insurance?

As there are many risks involved in the

transportation cargo internationally, traders want

to minimise these risks. A loss of goods to a

buyer (or seller - depending who has contractual

ownership of the goods at the time of the

damage/loss) could mean:

Loss of business

Loss of money

Loss of goodwill

Delays in utilisation of the goods

Expensive repairs

Penalties for late delivery

Any of these factors could put a small firm out of

business and can even cause larger firms serious

financial difficulties. The sensible trader will

make certain that he or she has taken out

suitable insurance cover, covering the correct

value and risks thereby ensuring that all aspects

of marine insurance have been suitably

addressed.

It is a contract of indemnity

The marine insurance contract is a contract of

indemnity. The insurer (the marine insurance

company), undertakes to indemnify the assured


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(the policy holder) against financial loss or

expenses incurred resulting from any of the risks

and hazards which are defined in the policy

document. The insurer will define his liability in

such a manner that he does not becomeresponsible for loss or damage resulting from any

misconduct of the assured. The assured must

therefore take reasonable steps to protect the

goods/cargo from any potential hazards by

ensuring that the cargo/goods are packed,

labelled and stored correctly.

The insurer will also limit his liability by excluding

losses which arise inevitably from the nature of

the goods, such as evaporation or natural

deterioration. The insurer therefore indemnifies

the assured against fortuitous loss (dropping,

crushing, breaking, rusting etc of the goods

themselves), accidents and disasters, together

with the loss of damage which may arise from

causes over which the assured can exercise no

control, such as war, riots, strikes and civil

commotions.

Categories of risk to cover

There are several different categories of risk

thatr you can consider cvovering. These are

1. Catastrophe risk - These relate to events

which can occur to the carrying ship,

aircraft or other conveyance in which the

goods are loaded, or to the location in whichthe goods are temporarily housed in the

normal course of transportation. These are:

Sinking, stranding, collision, or

catching fire of the carrying ship

Overturning or collision of a carrying


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vehicle

Fire or flooding of a transit warehouse

2. Accidental or fortuitous risks - These are

risks which are more commonly the cause

of claims and relate to events which affectthe goods themselves rather than the

conveyance in which they move. These are

the risks which account for the greater part

of the premium rate. These are:

Dropping

Crushing

Impacting

Twisting and bending

Breaking Burning

Rusting

Contamination

Scuffing, scratching, bruising, denting

etc.

3. Other risks - There are risks which are not

accidental or fortuitous but are outside of

the control of the cargo owner and include:

Theft and pilferage Non-delivery

Losses due to piracy

Malicious damage

4. War and associated risks - These include

war, strikes, civil commotion and terrorism

and we discuss them separately. Click here.

Certain types of goods are especially prone to

damage from these risks and they may in respect

of such goods, involve a substantial portion of the

premium rate. All these categories of risk are

taken into account when the insurer is

calculating the rate for the premium. The

insurance company would be prepared to offer a

reduction on the premium amount if the company


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in question is moving large volumes of cargo

globally. Under these circumstances the

insurance company would offer a discount for

greater volumes moved.

Factors to consider in taking out marine cover

In taking out marine insurance, there are several

factors that the assured must take into

consideration. These include:

The principle of 'utmost good faith'

The categories of risk to be insured

The principles of insurable interest and

insurable value

Insuring against the risks of war, strikes,

riots and civil commotion

The duration of an insurance policy

The principle of general average

Types of marine insurance cover

The premium

There are three main contracts these are:

The contract of sale; between the seller and

the buyer

The contract of carriage; between the

carrier and the shipper

The contract of marine insurance: between

the insurer and the assured


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While each of the contracts are independent of

each other they cannot be detached because they

complement each other and look after the

interests of both the seller and the buyer. When

concluding these contracts the following aspects

must be given attention, these are:

The nature of the journey

The means of conveyance that will carry the

goods to their final destination

The goods/cargo being sold

Marine insurance policies attach to the goods

from the moment they are loaded into a form of

conveyance (truck, container (6 or 12 metre),

aircraft, rail truck or vessel), until they arrive at

their final destination. This type of marine policy

is commonly called .


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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.

Item code


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Description of goods

Net weight

Gross weight

Quantity

Rate CIF EURO

Amount CIF EURO

Amount in words

Declaration:

Authorised signature


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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. Thechargeable weight of a shipment will be either the "actual gross mass"

or the "volumetric weight", 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.
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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 thefollowing 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 rates are lower than

the general cargo rate, and they provide breakpoints at whichthe 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 thecommodity loaded therein. Calculation of freight rates:

Let us assume the following figures:

The freight rate is R18.00 per kg

The weight of the parcel is 300 kg


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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 cargo from a number of

suppliers/shippers and then combines 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 theconsolidator 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 a document 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


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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 flight captain's bag.

Sea freightcalculations

Introduction

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


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"Bunkers" is the generic name given to fuels and lubricants that

provide energy to power ships. The cost of bunker oil fluctuates

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

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%


Add the two amounts together


War Surcharge

The outbreak of hostilities between nations can have a serious effectupon 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.


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Example:



+ WAR 5%

US Dollar 1 250.00 X 5% = US Dollar 62.50Add the two amounts together


All of the above surcharges may be applied to a single freight rate.

Example:



+ BAF 5.2%

+ CAF 6.3%

+ WAR 5%

Total amount of surcharge 16.5%


(add to freight rate)

US Dollar 1 456.25

Port Congestion Surcharge

Congestion in a port for a period of time can involve considerable idletime 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 container from 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


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yields the greatest. Example: US Dollar 89.00 Weight or Measure. The

shipping line would have a contract of carriage with the consolidator

and in turn the consolidator 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 witha 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 signed three 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 thesigned 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 the

consignee/importer. Upon surrender of any one of the originals the

other originals bills of lading become void.


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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 "shipped on 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 be loaded 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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BIBLIOGRAPHYExport Import Documentation - Prof. D.C. paiLogistics in International Business - Prof. Rajeev Aserkar

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