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1
SUMMER INTERNSHIP PROJECT REPORT
2012
Export Import & CFS Documentation and Customer
Satisfaction Survey In
Submitted in partial fulfilment of the requirements for the degree of
Postgraduate Program in International Business/ (Marketing)
By
Priyanka Jaiswal
At
GLOBSYN BUSINESS SCHOOL
Salt Lake Sector V
2
3
ACKNOWLEDGEMENT
The training that I undertook in Century Ply Ltd, Kolkata was a unique experience for me. The
theoretical knowledge coupled with practical exposure gave me an excellent opportunity to
understand the nuances of export, import, CFS, logistics management.
It gives me immense pleasure to express my profound gratitude towards Century Ply
Mr. Ashutosh Jaiswal
Mr. Vidyanand Singh
Mr. Anant Rajwanshi
Mr. Partha Bhadhuri
For mentoring and motivating me throughout the internship programme and guiding me in
bringing out this project report on “Export, Import and Logistics Operations through Ships”.
I would express sincere gratitude to Prof. Avik Mukherjee our faculty for his valuable guidance
and encouragement extended during the entire course of the summer training. In the end, I
would like to thank all those people who are left unmentioned here but have contributed in one
form or the other for my successful training in the company.
4
DECLARATION
I Priyanka Jaiswal,PGPIB student of Globsyn Business School, Kolkata hereby declare that
I have completed my Summer Internship Project titled as
Operations of CFS in kolkta: With Reference to Procedure in Shipping on 28th June,
2010.
The Information submitted is true & original to the best of my knowledge.
Date: Signature of Student
28TH
June, 2012 (Priyanka Jaiswal)
5
CONTENTS
1. CompanyOverview……………………………………………………………………….
2. Diversification &Description……………………………………………………………..
3. Export documentation…………………………………………………………………….
4. Import documentation…………………………………………………………………….
5. What is CFS (Container Freight Station)………………………………………………...
6. Purpose, Facilities, Benefits of using CFS……………………………………………….
7. Types of container handling………………………………………………………………
8. Operations& Documentations of CFS……………………………………………………
9. Questionnaire……………………………………………………………………………..
10. Future Scope of CFS Business in Kolkata………………………………………………..
11. Recommendations………………………………………………………………………..
12. Limitations faced…………………………………………………………………………
13. Reference…………………………………………………………………………………
6
CENTURY PLY BOARDS (I) LTD.
Established in 1986 in Kolkata, a joint effort of Mr. Sajjan Bhajanka and Mr. Sanjay
Agarwal.
Century Ply brand is leading brand in the Indian organized plywood industry named as
Century Ply Boards (I) Ltd.
It has the distinction of becoming the first ISO 9002 company in India. Century Ply
Boards (I) Ltd is FSC certified company in Plywood industry showing the effort to
ecological interest.
It is the leading brand and largest seller of Plywood and Veneers in organized sector.
Century Ply was adjudged the Fastest Growing Company with the Highest Turnover by
the famous Journal Construction World.
The Centre for Monitoring Indian Economy (CMIE) has also given Century Ply the top
position in its surveys.
Most sought-after brand in wood industry in India.
Pan India presence with more than 30 offices across the country.
MISSION
T o provide utmost satisfaction to the consumer through best quality and customer care
To continuously upgrade the product through innovations and convergence of new
technology and to produce the best quality at the lowest cost
To safeguard and enhance shareholder value
To respect the dignity of all employees and together to become instrumental in the
development of the country while protecting the environment
To utilise the surpluses for the welfare of employees and the society at large
VISION
Continue to remain the best Plywood-Panel Corporation in India with growth in allied
areas.
7
DIVERSIFICATION
Plywood: - Over the years Century Ply has introduced boiling water resistant
decorative veneers, the 7 year powder-proof guaranteed PF plywood, the revolutionary
non-leachable Fire safe plywood. In 2004, Century Ply's laminate plant started operations.
Cements:- Owns the top-selling cement brand in the North East, „Star Cement‟
Ferrous Alloy: Leading manufacturer in North East India. Shyam Century Ferrous
Ltd came in to existence in the year 2001 in Meghalaya. The unit was mainly set up to
capture the growing demand of Ferro silicon, an integral constituent used in the production
of steel.
Power Plant; - Century Ply is also in power generation with a captive power plant in
North-East.
Export/ Import: - Century Ply imports in huge quantity from Europe, Australia,
Malaysia, Indonesia and other south east countries. The imports are of wooden logs,
veneer, and paper based product and chemical for indigenous use. They are exporter of
High Pressure laminates to USA, Europe, Indonesia, Malaysia, Singapore, Jeddah, UK,
Canada, etc.
CFS: - A CFS is an extended arm of Port/ ICD/Air cargo Complex, where import/
export goods are kept till completion of their examination and clearance. All the activities
Century Ply
Plywood/ Laminates
Cements
Ferrous Alloy
Power Plant
CFS(Container Freight Station)/
Logistics
Import/
Export
8
related to clearance of goods for home consumption, warehousing, temporary admissions,
re-export, temporary storage for onward transit and outright export and transshipments
take place from such stations.
Management
The company is managed under the overall guidance of Board of Directors comprising
of experienced and distinguished professionals.
Mr. Sajjan Bhajanka- Managing Director
Shri S. B Ganguly – Chairman
Mr. Hari Prasad Agarwal- Vice Chairman
Mr. Sanjay Agarwal- Jt. Managing Director
Shri Prem Kumar Bhajanka- Jt. Managing Director
Shri Vishnu Khemani- Jt. Managing Director
Sri. Manindra Nath Banerjee- Director
Shri. Mangi Lal Jain- Director
Sri. Sajan kumar Bansal- Managing Director
Shri Brij Bhushan Agarwal- director
Mr. Ajay Baldawa- Executive Director
Ms. Plistina Dkhar- Director
Global Presence
9
NATURE AND SCOPE OF THE PROJECT
The scope of work includes:-
Understanding the Domestic and International Logistic Industry.
A thorough research on a Logistic company(Century Ply Board (I) Ltd.) and earning
knowledge about its
Functionality
Operating Procedure
Partial study on “LOGISTIC MANAGEMENT “and understand its functions,
advantages and its prospects in business development.
Detailed survey with existing clients (CHA)
10
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Proforma Invoice- A pro forma invoice is used in international trade represents the details of
an international sale to customs authorities. It is presented in the place of a commercial
invoice when there is no sale between the sender and the importer, or if the terms of the sale
between the seller and the buyer are such that a commercial invoice is not yet available at the
time of the international shipment. It contains a detail about the cargo and its amount. It does
not mention the Load Port and Destination Port name.
13
Purchase Order/Sales Contract-A purchase order (PO) is a commercial document issued
by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the
seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer
to buy products or services. Acceptance of a purchase order by a seller usually forms a one-
off contract between the buyer and seller, so no contract exists until the purchase order is
accepted
14
Custom Invoice -Extended form of commercial invoice required by customs(often in a
specified format) in which the exporter states the description, quantity and selling price,
freight,insurance, packing costs, terms of delivery andpayment, weight and/or volume of
the goods for the purpose of determining customs import value at the port of destination.
Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being
presented by the Customs authorities of the importing country. It facilitates entry of goods in
the importing country at preferential tariff rate.
15
Custom Packing List- This is issued by the Custom after appraisement of the cargo. It is done
in the Port or in CFS before shipment is done. It contains the details about the good, price,
importers name and exporters name with load port and destination port with a Custom stamp
on it.
16
Central Excise Invoice-
Forms ARE-1- Application for removal of excisable goods for export by air/sea/port
Form ARE-4- Through this application appraisement of cargo in CFS or port is not required.
As the stuffing, checking and sealing is done in warehouse in presence of Custom officer. It is
directed transferred to port for shipment.
Shipping Bill/ Bill of Export- It is the main document required by the Customs Authority for
allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of
certificate for all parties, included ship's owner, seller, buyer and some other parties. For each
one represents a kind of certificate document.
17
Bill of lading- Bill of Lading is a document given by the shipping agency for the goods
shipped for transportation form one destination to another and is signed by the representatives
of the carrying vessel. It is issued in the set of two, three or more. The number in the set will be
indicated on each bill of lading and all must be accounted for. This is done due to the safety
reasons which ensure that the document never comes into the hands of an unauthorised person.
Only one original is sufficient to take possession of goods at port of discharge so, a bank which
finances a trade transaction will need to control the complete set. The bill of lading must be
signed by the shipping company or its agent, and must show how many signed originals were
issued.
"FreightPrepaid”: Paidby shipper
"Freight collect”: To be paid by the buyer at the port of discharge
18
Certificate of Origin - The Certificate of Origin is required by the custom authority of the
importing country for the purpose of imposing import duty. It is usually issued by the Chamber
of Commerce and contains information like seal of the chamber, details of the good to be
transported. The certificate must provide that the information required by the credit and be
consistent with all other document, it would normally include:
The name of the company and address as exporter.
The name of the importer.
Package numbers, shipping marks and description of goods to agree with that on other
documents.
Any weight or measurements must agree with those shown on other documents.
It should be signed and stamped by the Chamber of Commerce.
19
Commercial Invoice- Commercial Invoice document is provided by the seller to the buyer.
Also known as export invoice or import invoice, commercial invoice is finally used by the
custom authorities of the importer's country to evaluate the good for the purpose of taxation.
The invoice must:
Be issued by the beneficiary named in the credit (the seller).
Be address to the applicant of the credit (the buyer).
Be signed by the beneficiary (if required).
Include the description of the goods exactly as detailed in the credit.
Be issued in the stated number of originals (which must be marked "Original) and
copies.
Include the price and unit prices if appropriate.
State the price amount payable which must not exceed that stated in the credit
Include the shipping terms.
20
Bill of Exchange- A Bill of Exchange is a special type of written document under which an
exporter ask importer a certain amount of money in future and the importer also agrees to pay
the importer that amount of money on or before the future date. This document has special
importance in wholesale trade where large amount of money involved.
Following persons are involved in a bill of exchange:
Drawer: The person who writes or prepares the bill.
Drawee: The person who pays the bill.
Payee: The person to whom the payment is to be made.
Holder of the Bill: The person who is in possession of the bill.
21
22
IMPORT DOCUMENTS
Packing List
Invoice- An invoice or bill is a commercial document issued by a seller to the buyer,
indicating the products, quantities, and agreed prices for products or services the seller
has provided the buyer. An invoice indicates the buyer must pay the seller, according to
the payment terms. The buyer has a maximum amount of days to pay these goods and
are sometimes offered a discount if paid before.
Sales Contract
Letter of Credit- L/C also known as Documentary Credit is a widely used term to make
payment secure in domestic and international trade. The document is issued by a
financial organization at the buyer request. Buyer also provides the necessary
instructions in preparing the document. The International Chamber of Commerce (ICC)
in the Uniform Custom and Practice for Documentary Credit (UCPDC) defines L/C:-
"An arrangement, however named or described, whereby bank (the Issuing bank) acting
at the request and on the instructions of a customer (the Applicant). A key principle
underlying letter of credit (L/C) is that banks deal only in documents and not in goods.
In this system Importer receives all the original documents only after making the
payment.
Bill of Entry -A declaration by an importer or exporter of the exact
nature, precise quantity and value of goods that have landed or are being shipped out.
Prepared by a qualified customs clerk or broker, it is examined by customs
authorities for its accuracy and conformity with the tariff and regulations.
Certificate of Origin
Bill Of Lading
Sea Worthy Certificate- A certificate issued by a classification society surveyor to
allow a vessel to proceed after she has met with a mishap that may have affected its
seaworthiness. It is frequently issued to enable a vessel to proceed, after temporary
repairs have been affected, to another port where permanent repairs are then carried out.
Beneficiary Certificate - The beneficiary certificate is provided in response to details
required and requested by the buyer/importer. The beneficiary's certificate is a
document issued by the beneficiary of the international trade transaction, often in
conjunction with a documentary collection or documentary credit/ letter of credit
(L/C). The beneficiary, normally the exporter, will provide the beneficiary certificate
evidencing a certification that certain actions have been complied with or documents
supplied.
23
CONTAINER FREIGHT STATION (CFS)
A CFS is an extended arm of Port/ ICD or temporary storage yard for import & export
containerized cargo, where import/ export goods are kept till completion of their customs
examination and custom clearance. The imported goods can be immediately shifted from the
port to CFS which also helps in the reduction of port congestion. All the activities related to
clearance of goods for home consumption, warehousing, temporary admissions, re-export,
temporary storage for onward transit and outright export and transshipments take place from
such stations.
Shipping & Jetty:- It also helps in operating jetty at Falta, approx. 25 kms from Kolkata in
association with Ministry of Commerce – Govt. of India. The Jetty is equipped to handle 1.5 –
2 lakh tons of cargo every year. The owner and operator of vessels are under the subsidiary of
Century Star Shipping Ltd.
PURPOSE OF CFS
A common user facility with public authority status equipped with fixed installations and
offering services for handling and temporary storage of import/export laden and empty
containers carried under customs control and with Customs and other agencies competent to
clear goods for home use, warehousing, temporary admissions, re-export, temporary storage
for onward transit and outright export.
Decongestion of main sea port
Dwell time reduction
Overall Efficiency: Cost, Time, Volume & Service
CFS & ICDs
24
25
ACTIVITY FLOW AT CFS
Import Cargo :
◦ Container Movement from CY(Container Yard) to CFS(Container Freight Station)
◦ Lift on / lift off to the right location in the Stack Yard
◦ Customs Inspection & Clearance
◦ De-Stuffing, if required.
◦ Payment of CFS dues
◦ Lift off, Out bound transport & Delivery
Export Cargo :
◦ Inbound Container or Cargo at CFS
◦ Container stuffing, if required
◦ Customs Inspection & Seal
◦ Payment of CFS dues
◦ Movement from CFS to CY
26
CONTAINER HANDLING
Refrigerated containers – It is used to bring non durable goods. Chemicals, Medicines, Meat
etc. Its rental charges are high .
General Purpose Containers-for all types
of goods.
Open-top containers-are used to keep different of machines or other materials and then
it is tied up with ropes.
Tank containers- used to carry chemicals, oil etc.
It is used to carry dangerous goods and needs special place to keep.
-
27
High-Cube containers- High-cube containers are similar in structure to standard
containers, but taller. In contrast to standard containers, which have a maximum height
of 2591 mm (8'6"), high-cube containers are 2896 mm, or 9'6", tall. High-cube
containers are for the most part 40' long, but are sometimes made as 45' containers.
Flat Rack containers- A container with no sides and frame members at the front and
rear. Container can be loaded from the sides and top. It is used to keep machines.
Platform & insulated containers- Containers used to hold hot or cold products to ensure
that they will be in good condition when they get to the customer's home.
28
LOCATION OF CENTURY CFS
Nearest Highway – NH 6, Kona Expressway Junction (Approx. 14 KMS)
Nearest Railhead – Brace Bridge Railway Station (Approx.2 KMS)
Nearest Sea-port – Kolkata Docs System (Approx. 3 KMS)
Nearest ICD/CFS – Central Warehousing Corporation CFS(Approx. 1.5KMS)
INFRASTRUCTURE OF CENTURY CFS
Trailers – 50 Nos. of 40 Mts capacities.
Flood lights/ High mast towers for round the clock operations.
Hard stand field with Paver Blocked for uninterrupted operations even during heavy monsoons.
Canteen facility & CC TV surveillance.
Fire fighting equipments.
Mechanical Crane – 35 tons capacity.
Fork lift – 6 Nos
Kalmar Reach Stacker – 5 Nos.
Handling capacity of Century CFS in terms in TEUS
Century CFS @ Sonai: 3000-3500/Month
Century CFS @ JJP: 9000-11000/Month
29
FACILITIES IN CENTURY CFS
EDI Connectivity with fully computerized operations on software developed by CMC.
Customs office.
Shipping agents house for extension counter.
Accommodation for banking facility.
Weighment facility.
Strong Room for valuable cargo.
Reefer container plugs points.
Ample parking space.
Cargo consolidation
PRIME CUSTOMERS
Maersk & Safmarine, APL, NYK, CSAV, MOL, PIL, CMA-CGM, HANJIN, Star Shipping,
Seabridge Maritime, YML & MCS, Evergreen, Transworld Group, Seahorse, Parikh Marine, ULA,
Heppag Lloyd, NLS Agency etc.
30
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DOCUMENTATION
IGM (Import General Manifest) - it is made by the shipper on reaching the
consignment to destination port. This contains the details of good in each
container given as line number. It becomes easy for both custom and the
importer about the goods.
Form 1 / Form 2 : For removal of Import Containers
Port Payments : Since the container are kept in the port till the removal of
it to CFS or impoter also lift on and lift off facility is provided . Hence for
all this work Port charges a certain amount, which shipping line pays on
behalf of the importer or importer directly pays to the Port.
Job entry
Bill of Entry
Jetty Challan
Delivery Order
Duty Payment
Customs Challan
Appraisement
Seal cutting permission
Gate Pass
34
QUESTIONNAIRE
1) Which CFS‟s takes the least time in documentation & container removal from port?
A) CENTURY B) CWC C) BALMER LAWRIE
2) Which CFS employees have the best attitude towards their customers?
A) CENTURY B) CWC C) BALMER LAWRIE
3) Which CFS has the best process & facility for custom & internal CFS documentation?
A) CENTURY B) CWC C) BALMER LAWRIE
4) Which CFS has the best arrangement for handling hazardous, refer and TANK
containers?
A) CENTURY B) CWC C) BALMER LAWRIE
5) According to you which CFS has the best warehousing facility in Kolkata?
A) CENTURY B) CWC C) BALMER LAWRIE
6) Which CFS is operationally smooth in working?
A) CENTURY B) CWC C) BALMER LAWRIE
7) Which CFS is the most economical to work with?
A) CENTURY B) CWC C) BALMER LAWRIE
8) Which CFS takes the least time in billing procedure?
A) CENTURY B) CWC C) BALMER LAWRIE
9) Can you suggest which of the following needs the most improvement in CFS?
35
A) Transportation from Port to CFS ( )
B) Customer Relationship ( )
C) Space ( )
D) Security Measure ( )
E) Warehousing Facility ( )
10) Do you think railway connectivity inside the CFS will help in smooth operation or
will give additional support?
A) CENTURY B) CWC C) BALMER LAWRIE
11) What do you suggest CFS‟s of Kolkata for further improvement in operation.
PROBLEMS HIGHLIGHTED
As we know that CFS is a service industry it is important that customer should be well
satisfied and the service should be customer oriented rather business oriented.
After the survey we found that minor issues may leads to major problem which leads to
loss in Business.
Points highlighted by the CHA are:-
Transportation facilities from FCI to Operation department.
Hygiene Food and sitting arrangements.
Proper washroom facilities.
Improvement in top down facilities
Requirement of risk stackers
Payment through cheque and other ways instead of cash
Problem with custom staffs.
Charges to be lowered as compared to other CFS
Improvement in top down facilities.
RECOMMENDATIONS
The person/ manager of CFS should be on round to see the work operations frequently.
The custom should go for appraisement and checking at least thrice a day.
Person working in operations department should be humble and kind to serve the
people.
Transport facility can be provided from FCI to gate also.
36
Proper sitting arrangements can help the CHA to work comfortably
Warehousing facilities are required.
Limitation while do the project
Due to limited time period we could cover a smaller part of this field.
REFRENCES
Magazines:
Gateway
Shipping Times
Web sites: www.centurycfs.com
www.centuryply.com
www.eximguru.com
http://www.shipping-worldwide.com
http://www.eximguru.com/exim/guides/export-finance/ch_4_trade_documents.aspx
http://www.cbec.gov.in/excise/formidx.htm
http://www.eximbankindia.com/summary/expproc.pdf
http://www.eximguru.com/exim/guides/export-finance/ch_3_letter_of_credit_lc.aspx
http://www.import-export-made-easy.com/Beneficiarys-Certificate.html