SIKKIM MANIPAL UNIVERSITY, DERegistration No: 1302012256Course: MBA

Student Name: Gaurang SharmaLC Code: 00918

Subject Name: IB SPECIALIZATIONSubject Code: C E I M

Q1. What is containerisation? Describe the advantages and disadvantages ofcontainerization. Description of containerisation Advantages and disadvantages of containerizationAns: Containerization is a system of intermodal freight transport using intermodal containers (also called shipping containers and ISO containers) made of weathering steel. The containers have standardized dimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to anothercontainer ships, rail transport flatcars, and semi-trailer truckswithout being opened. The handling system is completely mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems.The system, developed after World War II, dramatically reduced transport costs, supported the post-war boom in international trade, and was a major element in globalization. Containerization did away with the manual sorting of most shipments and the need for warehousing. It displaced many thousands of dock workers who formerly handled break bulk cargo. Containerization also reduced congestion in ports, significantly shortened shipping time and reduced losses from damage and theftAdvantages and Drawbacks of ContainerizationEven if containerization conveys numerous advantages to freight distribution, it does not come without challenges.

The main advantages of containerization are: Standardization. Standard transport product that can be handled anywhere in the world (ISO standard) through specialized modes (ships, trucks, barges and wagons) and equipment. Each container has an unique identification number and a size type code. Flexibility. Can be used to carry a wide variety of goods such as commodities (coal, wheat), manufactured goods, cars, refrigerated (perishable) goods. Adapted containers for dry cargo, liquids (oil and chemical products) and refrigerated cargo. Reuse of discarded containers. Costs. Lower transport costs due to the advantages of standardization. Low transport costs; 20 times less than bulk transport. Economies of scale at modes and terminals. Velocity. Transshipment operations are minimal and rapid. Port turnaround times reduced from 3 weeks to about 24 hours. Containerships are faster than regular freighter ships, but this advantage is undermined by slow steaming. Warehousing. The container is its own warehouse; Simpler and less expensive packaging. Stacking capacity on ships, trains (doublestacking) and on the ground (container yards). Security and safety. Contents of the container is unknown to carriers. Can only be opened at the origin (seller), at customs and at the destination (buyer). Reduced spoilage and losses (theft).The main drawbacks of containerization are: Site constrains. Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships. A large post-panamax containerships requires a draft of at least 13 meters. Capital intensiveness. Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access), are important capital investments. Stacking. Complexity of arrangement of containers, both on the ground and on modes (containerships and double-stack trains). Restacking difficult to avoid and incur additional costs and time for terminal operators. Repositioning. Many containers are moved empty (20% of all flows). Either full or empty, a container takes the same amount of space. Divergence between production and consumption at the global level requires the repositioning of containerized assets over long distances (transoceanic). Theft and losses. High value goods and a load unit that can forcefully opened or carried (on truck). Vulnerability between terminal and final destination. About 10,000 containers are lost at sea each year (fall overboard). Illicit trade. Instrument used in the illicit trade of goods, drugs and weapons, as well as for illegal immigration. Concerns about the usage of containers for terrorism.

Q2. List out the various export promotion schemes currently available to exporters. Explain MDA in detail.a) List of various export promotion schemesb) Description of MDAAns: a) List of various export promotion schemes:To achieve the objectives laid down under the Foreign Trade Policy 2004-09 and double Indias percentage share of global merchandise trade by the year 2009, the government is committed to providing a stimulus to exports through various export promotion schemes from time to time. Details of the existing Export Promotion Schemes are as follows: 1. Advance licensing scheme2. Duty Free Replenishment Certificate (DFRC) scheme3. Duty drawback scheme4. Export Promotion Capital Goods (EPCG) scheme5. Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) scheme6. Served from India scheme7. Target Plus scheme8. Duty Entitlement Pass Book (DEPB) Scheme9. Vishesh Krishi Upaj YojanaThe Government has formulated a number of export promotion schemes to support and promote exports. Except for Duty Drawback Scheme, the policy framework for various export promotion schemes is laid down in the Foreign Trade Policy 2004-09, whereas the procedures governing the schemes are detailed in the Handbook of Procedures, VoI-I 2004-09. The Department of Revenue has issued notifications to operationalise the scheme.The objectives of most schemes are to neutralize the incidences of levies and duties on inputs used in export products, based on the fundamental principle that duties and levies should not be exported. Presently, the major schemes are either duty exemption or duty remission schemes. Duty exemption schemes enable duty-free import of inputs required for export production. An Advance Licence is issued as a duty exemption scheme. A Duty Remission Scheme enables post export replenishment / remission of duty on inputs used in the export product. Duty remission schemes consist of (a) DFRC; (b) DEPB Scheme and Drawback. DFRC permits duty-free replenishment of inputs used in the export product. DEPB allows drawback of import charges on inputs used in the export product. The Drawback Scheme intends to neutralize the incidence of central taxes paid on inputs used in the manufacture of export goods.Besides, there are other schemes in operation which are basically in the nature of reward schemes to reward high performing exporters. Target Plus, Served from India and Vishesh Krishi Upaj Yojana are reward schemes. Rewards are given on the basis of incremental exports / export turnover and such rewards have no linkage whatsoever with the duties and taxes borne on export goods.b) Description of MDA:MDA is an approach to system development, which increases the power of models in that work. It is model-driven because it provides a means for using models to direct the course of understanding, design, construction, deployment, operation, maintenance and modification. An MDA approach starts with the well-known and long established idea of separating the specification of the business functionality of a system from the details of the way that system uses the capabilities of its underlying platform technology to achieve that functionality. MDA derives its three primary goals from this idea: portability, interoperability and reusability through architectural separation of concerns. An MDA approach is independent of development methodologies as well as technology. This separation of business functionality from computing technology and methodology preserves a companys core software assets in the constantly-changing world of information technology.MDA provides an approach for, and enables tools to be provided for: specifying a system independently of the platform that supports it, specifying platforms, choosing a particular platform for the system, and transforming the system specification into one for a particular platform. This is achieved through MDAs extensive use of modeling and abstraction.

Q3. What are the advantages and disadvantages of air freight as compared to sea freight? Describe Air Way Bill and its use. Comparison of air and sea freight Air Way Bill and its useAns: Comparison of air and sea freight:1. CostYou probably dont have to be told to consider the costs before an undertaking. As a business person, you consider the bottom line and as an individual, you have a budget. Naturally, youre going to want to know which will cost you less, air freight or ocean freight. Typically, you will hear that shipping by ocean is cheaper than shipping by air.To make the best decision, it helps to be educated about how carriers charge for international shipping. Airlines bill you by what is called a chargeable weight. Chargeable weight is calculated from a combination of the weight and size of a shipment. Sea carriers charge per container rates for shipping in standard containers (20 and 40 being the most common sizes). While weight can factor into the price from sea carriers, their charge tends to be based more on the size of a shipment. If you are shipping less than a container load, your price is often determined by cubic meter. With larger and heavier shipments, it is often much cheaper to ship by sea. As a shipment gets smaller, the margin between the prices gets smaller and sometimes air will even end up less expensive.Shippers should note that there are destination charges to consider. Whether shipping by air or by sea, there will be customs and destination fees. While the actual shipment cost of sea freight is usually cheaper than the shipment cost of air freight, the warehousing fees at seaports are many times more expensive than those at airports.2. SpeedWhen it comes to speed, there is no question that air freight is usually much faster. Since time is money, this factor could more than make up for a higher cost of flying cargo. Many sea shipments can take around a month to arrive while an air shipment takes a day or two. For most business shipping, faster is better. When it comes to the individual moving a household, it is often good to have the extra time to prepare for the arrival of household goods in a new country. It should be noted that technology keeps moving forward in the international shipping world. Ships are getting faster. Canals have created shorter shipping routes. There are many ocean freight shipments crossing the oceans and being delivered in as few as 8 days.3. ReliabilityReliability is something we all look for in people, businesses, products, and services. How does ocean freight and air freight stack up against each other in this category? Air freight shipping has a much, much shorter history than ocean freight shipping, yet air freight tends to win the battle of reliability. Flights get delayed by weather and other factors, but airlines tend to be very on top of their schedules. Ocean carriers are notorious for being bad about this. It is not uncommon for ships to be off schedule. For many, a day or two here or there doesnt hurt; however, for many businesses, a day or two could have serious cost effects. With airlines, there are usually daily flights back and forth between major cities around the world. Because of this, missing a flight doesnt cause much of a delay for a cargo shipment. Ocean lines tend to have weekly schedules. Missing the cutoff at a seaport means a longer delay. 4. Environmental ImpactNot everything is about the bottom line and convenience. While the social awareness of environmental issues can change the way the public looks at a company and affect its bottom line, we all have a responsibility of taking care of the planet on which we live. It would seem that ocean freight wins this category. CO2 emissions are much higher in air freight transport than ocean freight transport. This causes cargo shipping by air to have a much larger carbon fingerprint than cargo shipping by sea. However, considering oil spills and the water ecosystems affected by ocean freight, gives pause. Perhaps the jury is still out on this final factor.Air Way Bill and its use:The air waybill is the most important document issued by a carrier either directly or through its authorised agent. It is a non-negotiable transport document. It covers transport of cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued.Air waybills have eleven digit numbers which can be used to make bookings, check the status of delivery, and current position of the shipment. The number consists of: 1. The first three digits are the airline prefix. Each airline has been assigned a 3-digit number by IATA, so from the prefix we know which airline has issued the document. 2. The next seven digits are the running number/s - one number for each consignment 3. The last digit is what is called the check digit. It is arrived at in the following manner:The seven digit running numbers are divided by 7, by using a long division calculation. The remainder becomes the check digit. That is why no AWB number ends with a figure greater than 6. Air waybills are issued in 8 sets of different colours. The first three copies are classified as originals. The first original, Green in colour, is the Issuing Carrier's copy. The second, coloured Pink, is the Consignee's Copy. The third, coloured Blue, is the Shipper's copy. A fourth Brown copy acts as the Delivery Receipt, or proof of delivery. The other three copies are white.

Q4. Explain the requirement of cushioning materials in export packaging. Describe the main types of cushioning materials used and their application. Description of requirement of cushioning materials Main types of cushioning materials used and their application

Ans: Description of requirement of cushioning materials:

Cushioning materials must in particular fulfill four main requirements:Recovery is one of the most important properties of a cushioning material; it ensures that the package contents continue to be protected even when repeatedly subjected to similar stresses. If recovery is too low, the braking distance declines on constant exposure to stress, such that the resultant kinetic energy can no longer adequately be absorbed and the package contents may be damaged.

Cushioning materials must be insensitive to climatic conditions, such as moisture due to elevated relative humidity, direct solar radiation and extreme variations in temperature and their action must not be impaired by such exposure.

Especially in the case of package contents which are at risk of corrosion, it is important that the cushioning materials are not hygroscopic and consequently do not promote corrosion. They should furthermore not contain any aggressive constituents (neutral pH), which could contribute towards corrosion. The cushioning material and package contents should not interact and possibly impair each other's properties.

Use of the cushioning material should be effective, simple, environmentally compatible and cost-effective.

Main types of cushioning materials used and their application:Dynamic Systems manufactures specialty cushion materials that are so versatile, they can be used for many different types of applications in many different disciplines. Some of the more common uses of our materials include:MedicalDynamic Systems' cushions are used throughout the healthcare industry. SunMate is often used in wheelchair cushions to distribute weight evenly and alleviate pressure on ischial tuberosities or coccyx vertebrae. Pudgee is a gel foam used to prevent or aid the healing process for bed sores and decubitus ulcers. Liquid SunMate Foam-in-Place Seating is used to create custom-molded wheelchair inserts for clients with complex contours and more fixed support requirements.AircraftLaminar, a SunMate-Pudgee combination cushion, provides the ultimate in seating comfort for those who have to sit long-term. It has excellentvibration and impactabsorption properties. T50E, our firmest SunMate formulation, is often used as a crash protection or energy absorption layer in ejection seats. Pilot seats are built with softer layers of SunMate or Pudgee on top of the crash protection layer for added comfort and support.MotorcycleNo one is more enthusiastic about SunMate and Pudgee cushion materials than motorcyclists. They will often retrofit their factory-built saddles with SunMate and Pudgee so they can travel in comfort without the fatigue caused by long hours on the road and prolonged vibrations.Mining and Heavy EquipmentSunMate and Pudgee cushions have been studied by outside parties and proven to excel or surpass other cushion materials with their ability to absorb vibrations that aggravate physiological functions. Ergonomic seating designed SunMate and Pudgee improves operator comfort and health.Racing & SportsSunMate is used in a variety of sports applications. Its excellent performance in impact testing has qualified it as one of only a few FIA-approved cushion materials for use in Formula One headrest design. Race car drivers, as well as drivers of a number of competitive sports vehicles, experience better performance and handling in addition to knowing they are safer with SunMate.Equine & VeterinarySunMate, Pudgee and FIPS are often used with horses and other animals to improve their quality of life. Liquid SunMate can be used to fashion specially-molded cushion parts and custom prosthetics for animals with limb injurues. SunMate is a favorite material for use as saddle shims to balance saddle-fit or as impact absorbing inserts in saddle pads for horses.CustomSunMate, Pudgee, FIPS, and T50E have been used in a myriad of other custom applications. Due to their unusual texture and other physical and technical properties, these specialty cushion materials appeal to creative individuals like architects, industrial designers, innovators and engineers. The special nature of these materials has also earned them inclusion in exhibitions in some of the most prestigious museums and galleries in the world.

Q5. You are a merchant exporter. A prospective overseas client has shown interest in your products. Write a letter making a firm offer mentioning all relevant facts regarding product features, payment terms, transport details, insurance, delivery schedules, packaging etc.,? Assume all relevant details about the product and the client.Ans: Exporting and importing are two sides of the same coin; both supply customers with products manufactured outside the country. Exports now account for over 15% of global GNP and are growing at an annual compound rate in excess of 10%. Export marketing requires a knowledge of the target market, a marketing mix decision, planning, organisation and control and information systems. Exporting is often an incremental process, from unsolicited order filling to deliberate export planning. No doubt few firms will export unless

Q6. List out the Principal Export Documents along with a brief description of each of them. List of Principal Export Documents Description of Principal Export Documents

Ans: List of Principal Export Documents:Export procedure describes the documents required for exporting from India. Special documents may be required depending on the type of product or destination. Certain export products may require a quality control inspection certificate from the Export Inspection Agency. Some food and pharmaceutical product may require a health or sanitary certificate for export.

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. Usually the Shipping Bill is of four types and the major distinction lies with regard to the goods being subject to certain conditions which are mentioned below: Export duty/ cess Free of duty/ cess Entitlement of duty drawback Entitlement of credit of duty under DEPB Scheme Re-export of imported goods The following are the export documents required for the processing of the Shipping Bill: GR forms (in duplicate) for shipment to all the countries. 4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package. 4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc. Contract, L/ C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate. The formats presented for the Shipping Bill are as given below White Shipping Bill in triplicate for export of duty free of goods. Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback. Yellow Shipping Bill in triplicate for the export of dutiable goods. Blue Shipping Bill in 7 copies for exports under the DEPB scheme

EXPORT-RELATED DOCUMENTSConsular InvoiceRequired in some countries, a consular invoice describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. If required, copies are available from the destination country's embassy or consulate in the U.S. The cost for this documentation can be significant and should be discussed with the buyer.Canadian Customs InvoiceAlthough not required by regulation, this customs invoice is a preferred document by Canadian Customs and customs brokers. It is issued in Canadian dollars for dutiable and taxable exports exceeding $1600 Canadian dollars. Detailed invoice requirements can be obtained at the Canadian Customs website.Dock Receipt and Warehouse ReceiptA dock receipt and warehouse receipt are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the ship line for export.Import LicenseImport licenses are the responsibility of the importer and vary depending upon destination and product. However, including a copy of an import license with the rest of your documentation may in some cases help avoid problems with customs in the destination country. ISPM 15 (Wood Packaging) MarkingThe International Standards for Phytosanitary Measures Guidelines for Regulating Wood Packaging Material in International Trade (ISPM15) is one of several International Standards for Phytosanitary Measures adopted by the International Plant Protection Convention (IPPC). The IPPC is an international treaty to secure action to prevent the spread and introduction of pests of plants and plant products, and to promote appropriate measures for their control. The American Lumber Standard Committee (ALSC) and the National Wooden Pallet and Container Association (NWPCA) provide phytosanitary certification for wood packaging materials (WPM). APHIS will issue a phytosanitary certificate for wood package materials only if WPM are the cargo. Shippers Letter of InstructionThe shippers letter of instruction is issued by the exporter to the forwarding agent and includes shipping instructions for air or ocean shipment.

11