SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN MANAGEMENT

EXPORT MANAGEMENT SYSTEM

With special reference to

(MULTI METALS LTD.KOTA)

SUBMITTED BY:

Name- RITESH MEENA

M.B.A.-(2009-11)

Enrollment No-A30101909110

INDUSTRY GUIDE FACULTY GUIDE CHANKY TANEJA APARAJITA DASGUPTA

SALES OFFICER AMIST

Export & Import

AMITY GLOBAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY-UTTAR PRADESH

ACKNOWLEDGEMENT

The project title “Export Management System” has been conducted at Multi Metals Ltd. I have completed this project, based on the primary research, under the guidance of Mr.Chanky Taneja (Industry Guide).

I owe enormous intellectual depth towards my guides Ma’am Aparajita Dasgupta Amist Faculty Guide; A.G.B.S. Noida has augmented my knowledge in the field of “Export Management System”. They have helped me learn about the process and gave me valuable insight into the subject matter.

I am obliged to Mr. Chanky Taneja (Officer Sales Export & Import, Multi Metals Ltd.) for corporation during the project. My increased spectrum of knowledge in this field is the result of his constant supervision and direction that has helped me to absorb relevant and high quality information.

I would like to thank all the respondents without whose cooperation my study/project would not have been completed.

Last but not least I feel indebted to all those persons and organizations whose/which have provided help directly or indirectly in successful completion of this study.

Date:

RITESH MEENA

MBA (3RD SEM)

Enrollment No- A30101909110

TABLE OF CONTENTS

CHAPTER NO. SUBJECT

1.0 Executive Summary

2.0 Introductions

3.0 Industry Profile

4.0 Company Profile

5.0 Research Methodology

6.0 Recommendations

7.0 Bibliography

8.0 Annexures

9.0 Synopsis of the project

EXECUTIVE SUMMARY

This project is a seminal work to study the Export Management System in a Manufacturing sector. Multi Metals Started its operation in 1962 and since it is marching towards glory and has many laurels to its name. My training period in this company has given me a lot of confidence and exposures to what corporate world is. The project given to me is “Export Management System”

The aim of the project is to determine the effectiveness of Export Management Policy in DCM Shriram Fertilizers & Chemicals Ltd in comparative with other companies (BSNL, O.N.G.C., WIPRO, Maruti Udhyog, and TCS)

We started the research by circulating questionnaires, fixing appointments and collecting secondary data through various sources like Internet (company’s website), books etc. Filled questionnaires which we received from the organizations which gave a transparent view of how companies perform and do Export management, what are the criteria for Export Management and what employees feel about the Export Management system prevalent in the company. We took various steps to collect the feedback from employees and the management, like interviews and questionnaires. We talk about the Export Management system and how it is implemented.

SCOPE OF THE STUDY;-

The aim of this project report is to unfold stepwise all complexities involved in the export business right from receiving an export order to final realization of export proceeds. It gives a detail idea of how different departments in an Apparel export house work in synchronization so that an export order is processed. This project would be helpful to fulfill many loopholes of manufacturing, processing and analyzing the export order as well as documentation.

INTRODUCTION

An Export Management System is a program designed to monitor and manage the handling of export control issues within an institution. It should reflect the existing procedures followed by an institution in its handling of controlled equipment and technology, and build on those procedures to create a dynamic approach to this management. One important purpose of this management system is to ensure that the institution will be accountable for export control matters in the event of an audit by one of the federal agencies that implement the federal statues and regulations.

How to start export is a fair question that every first time exporter wants to ask. Export in itself is a very wide concept and lot of preparations is required by an exporter before starting an export business.

A key success factor in starting any export company clear understands and detail knowledge of products to be exported. In order to be successful in exporting one most fully research its foreign market rather than try to tackle every market at once. The exporter should approach a market in a priority basis. Overseas designs and product must be studies properly and considered carefully. Because there are specific laws dealings with international trade and foreign business, it is imperative that you familiarize yourself with state, federal, and international laws before starting your export business.

Price is also an important factor. So, before starting an export business an exporter must considered the price offered to the buyers. As the selling price depends on sourcing price, try to avoid unnecessary middlemen who only add cost but no value. It helps a lot on cutting the transaction cost and improving the quality of the final products.

However, before we go deep into "How to export?” let us discuss what an export is and how the Government of Indian has defined it. In very simple terms, export may be defined as the selling of goods to a foreign country. However, As per Section 2 (e) of the India Foreign Trade Act (1992), the term export may be defined as 'an act of taking out of India any goods by land, sea or air and with proper transaction of money.

Exporting a product is a profitable method that helps to expand the business and reduces the dependence in the local market. It also provides new ideas, management practices, marketing techniques, and ways of competing, which is not possible in the domestic market, an individual businessman should think about exporting. Research shows that on average, exporting companies are more profitable than their non exporting counterparts.

Why Need to Export

There are many good reasons for exporting:

The first and the primary reason for export are to earn foreign exchange. The foreign exchange not only brings profit for the exporter but also improves the economic condition of the country.Secondly, companies that export their goods are believed to be more reliable than their counterpart domestic companies assuming that exporting company has survive the test in meeting international standards.Thirdly, free exchange of ideas and cultural knowledge opens up immense business and trade opportunities for a company.Fourthly, as one starts visiting customers to sell one’s goods, he has an opportunity to start exploring for newer customers, state-of-the-art machines and vendors in foreign lands.Fifthly, by exporting goods, an exporter also becomes safe from offset lack demand for seasonal products.Lastly, international trade keeps an exporter more competitive and less vulnerable to the market as the exporter may have a business boom in one sector while simultaneously witnessing a bust in a different sector.

No doubt that in the age of globalization and liberalizations, Export has became of the most lucrative business in India. Government of India is also supporting exporters through various incentives and schemes to promote Indian export for meeting the much needed requirements for importing modern technology and adopting new technology from MNCs through Joint ventures and collaboration.

Objective

The main objective of a typical export plan is to:

• Identifies what you want to achieve from exporting.

• Lists what activities you need to undertake to achieve those objectives.

• Includes mechanisms for reviewing and measuring progress.

• Helps you remain focused on your goals.

For a proper export planning following questions need to answer

1. Which products are selected for export development?

2. What modifications, if any, must be made to adapt them for overseas

Markets?

3. Which countries are targeted for sales development?

4. In each country, what is the basic customer profile?

5. What marketing and distribution channels should be used to reach

Customers?

6. What special challenges pertain to each market (competition, cultural

differences, import controls, etc.), and what strategy will be used to

address them?

7. How will the product's export sale price be determined?

8. What specific operational steps must be taken and when?

9. What will be the time frame for implementing each element of the

plan?

10. What personnel and company resources will be dedicated to exporting?

11. What will be the cost in time and money for each element?

12. How will results be evaluated and used to modify the plan?

From the start, the plan should be viewed and written as a management tool, not as a

static document. Objectives in the plan should be compared with actual results to

measure the success of different strategies. The company should not hesitate to

modify the plan and make it more specific as new information and experience are

gained.

INDUSTRY PROFILE

Manufacturing sector is the backbone of any economy. It fuels growth, productivity, employment, and strengthens agriculture and service sectors. Astronomical growth in worldwide distribution systems and IT, coupled with opening of trade barriers, has led to stupendous growth of global manufacturing networks, designed to take advantage of low-waged yet efficient work force of India. ' Indian Manufacturing ' sector is broadly divided into - Capital Goods & Engineering, Chemicals, Petroleum, Chemicals & Fertilizers, Packaging, Consumer non-Durables, Electronics, IT Hardware & peripherals, Gems & Jewelry, Leather & Leather Products, Mining, Steel & non-Ferrous Metals, Textiles & Apparels and Water Equipment. The overall manufacturing growth rate is projected to rise to 9.5% in 2008-09, after declining to 8.8% in the 2007-08 from a high of 12.3% attained in the previous year (2006-07). Over the past year or two there has been mounting confidence about the new found strength of India's manufacturing sector and its long-term potential. The recently approved 11th Five Year Plan expects manufacturing to grow at 10-11 per cent a year during the period 2007-12.Of the 100 sectors surveyed, as many as 67 sectors are poised to achieve ‘excellent’ to ‘high’ growth rates ranging 10 to 20 per cent or more. While 12 sectors project excellent growth of more then 20 per cent or more, 55 sectors foresee high growth of 10 to 20 per cent, 32 sectors expect moderate growth of up to 10 per cent and 1 sector has projected a negative growth during 2008-09.

COMPANY PROFILE

Multimetals limited founded in 1962 as a joint venture with Revere Copper and Brass Inc, USA attained the position of a premier manufacturer of seamless extruded drawn copper and copper alloy products including 95/05, 90/10, & 70/30 Copper nickel, Cunifer, Aluminium Brass, Admirately Brass, 70/30 Brass, 63/37 Brass, Naval Brass confirming to various international standards, catering to numerous industries i.e. Air-conditioning, Refrigeration, Heat exchangers, Nuclear and thermal power plants, Ship building and repairs, Petroleum Refineries, Sugar plants, Defense establishments-Naval Warships etc.

Multimetals has a technical collaboration with M/s Hitachi Cable Ltd.Japan, one of the world leaders in Air-conditioning and Refrigeration Copper tube technology. Multimetals have won 13

Export Excellence awards since 1993-94, in a short span of 16 years within shipment to all continents.

We also manufacture copper nickel tubes in LWC form and PVC coated copper Tubes. We have in house facility of making U bend tubes, low finned tubes and surface enhanced finned tubes.

Apart from the standard products, Multimetals has also been manufacturing other copper based Alloy semis as per customer’s specific requirements of chemical, mechanical, metallurgical and Physical Properties. The alloys include Aluminium bronze, Manganese Bronze, Naval Brass, 90/10 Copper Nickel, 70/30 Copper Nickel, and forging Brass, Tellurium Copper, Nickel Silver in the form of hollows, sections, profiles, and rods. These alloys provide a unique combination of strength, anti-corrosion properties and oxidation resistance.

We also offer high performance copper alloy wires used in the electrical and electronics connectors and inter-connection systems, welding applications, heat transfers and marine industry.

Fortified by our dedication for excellence, commitment to quality and growth, Multimetals has every reason to be optimistic about it’s future in the non-ferrous business in the India and abroad.

VISION

Honesty, Integrity and Ethics have been the pillars on which the company has been built upon. Keeping this in mind, we at multimetals, follow service oriented ethics to achieve technically environmentally responsible and innovative solutions in copper and copper alloys. With the help our team of dedicated and experienced personnel and state-of-the-art manufacturing facility, we are committed to being a dynamic and diversified global company. We also envision in making our products suitable for various end applications, world over. We hold repute for delivering cost- efficient and pioneering products and we aim to maintain such a reputation. We as a partner are devoted to our customers and deem complete customer satisfaction as our ultimate goal.

EXPORT PROCEDURE OF MULTIMETALS LTD.

To understand the Export Procedure in Multimetals Ltd.

It is essential that a person engaged in international trade be aware of the various

procedures involved. The business of exports is heavily document-oriented & one

must get acquainted with the entire procedure. Failure to comply with documentary

requirement may lead to financial loss.

Pre-Shipment Procedure

On receiving the requisition & purchase order from merchant, documentation department issues an invoice. Two invoices are prepared i.e. commercial invoice& custom invoice. Commercial invoice is prepared for the buyer & Custom invoice is prepared for the Custom authorities of both the countries.

Packing list is prepared which details the goods being shipped.

GSP certificate is prepared if the consignment is exported to EU or countries

mentioned in the GSP list.

Buying house inspects the goods & issues an inspection certificate.

Certificate of origin is also issued and attached, if required.

Following documents are given to Customs for their reference:

Custom Invoice Packing list IEC certificate Purchase Order or L/C, if required. Custom annexure On receipt of above documents, customs will issue clearance certificate. After custom clearance a set of documents with custom clearance receipt are sent Along with the consignment to the forwarder. Forwarder books the shipment & as

per the size of the cartons calculates CBM & decides which container to be used.

Following documents are sent to buying house for their reference, as per buyer’s

requirement:

Invoice Packing List GSP (if exports to Europe) Certificate of Origin (if required) Wearing Apparel sheet A copy of FCR/ Airway Bill/ Bill of Lading Buying house then intimates the buyer about the shipment & gives the details

regarding it. Buying house will send a set of these documents to the buyer.

Buyer collects the consignment from the destination port by showing the following documents: Invoice Packing List Bill of lading/ FCR/ Airway Bill On shipment of goods, exporter will send the documents to the importer’s bank.

Post-Shipment Procedure

A foreign buyer will make the payment in two ways: TT ( telegraphic transfer) i.e. Wire Transfer – (Advance payment, as per

the clause – 50% advance & remaining 50% on shipment)

Letter of Credit

If the payment terms are a confirmed L/C then the payment will be made by the

foreign bank on receiving the following documents:

Invoice Packing list B/L

Any other required by the buyer or the country of import.

The payment terms can be:

At Sight

Within 15 days from Bill of Lading or Airway Bill date. Within 30 days from Bill of Lading or Airway Bill date. Within 60 days from Bill of Lading or Airway Bill date. Within 90 days from Bill of Lading or Airway Bill date. After shipment, exporter sends the documents to the buyer’s bank for payment. As

the buyer’s bank receive the documents it will confirm with the buyer for release

of payment. On confirmation, it will make the payment in the foreign currency.

The transaction will be Bank to Bank.

Post-Shipment Procedure

A foreign buyer will make the payment in two ways: TT ( telegraphic transfer) i.e. Wire Transfer – (Advance payment, as per

the clause – 50% advance & remaining 50% on shipment)

Letter of Credit If the payment terms are a confirmed L/C then the payment will be made by the

foreign bank on receiving the following documents:

Invoice Packing list B/L Any other required by the buyer or the country of import.

The payment terms can be: At Sight Within 15 days from Bill of Lading or Airway Bill date. Within 30 days from Bill of Lading or Airway Bill date. Within 60 days from Bill of Lading or Airway Bill date. Within 90 days from Bill of Lading or Airway Bill date.

After shipment, exporter sends the documents to the buyer’s bank for payment. As

the buyer’s bank receive the documents it will confirm with the buyer for release

of payment. On confirmation, it will make the payment in the foreign currency.

The transaction will be Bank to Bank.

The domestic branch will credit the exporter’s account, as against the respective

purchase order or invoice, in Indian rupees by converting the foreign currency as

per the current bank rate.

If the payment is through wire transfer, the payment will be made as per the terms

agreed by the exporter (Advance payment, as per the clause – 50% advance &

remaining 50% on shipment).

Export Documents:

An export trade transaction distinguishes itself from a domestic trade transaction in more than one way. One of the most significant variations between the two arises on account of the much more intensive documentation work. The documents mentioned in the pre & post shipment procedure are discussed below:

1. Invoice: It is prepared by an exporter & sent to the importer for necessary acceptance. When the buyer is ready to purchase the goods, he will request for an invoice. Invoice is of 3 types:

a. Commercial invoice: It is a document issued by the seller of goods to the buyer raising his claim for the value of goods described therein, it indicates description of goods, quantity, value agreed per unit & total value to be paid. Normally, the invoice is prepared first, & several other documents are then prepared by deriving information from the invoice.

b. Consular invoice: It is certification by a consul or Government official covering an international shipment of goods. It ensures that exporter’s trade papers are in order & the goods being shipped do not violate any law or trade restrictions.

c. Customs invoice: It is an invoice made on specified format for the Custom officials to determine the value etc. as prescribed by the authorities of the importing country.

2. Packing list:

It shows the details of goods contained in each parcel / shipment. Considerably more detailed and informative than a standard domestic packing list, it itemizes the material in each individual

package and indicates the type of package, such as a box, crate, drum or carton. Both commercial stationers and freight forwarders carry packing list forms.

3. Certificate of Inspection: –

It is a type of document describing the condition of goods and confirming that they have been inspected. It is required by some purchasers and countries in order to attest to the specifications of the goods shipped. This is usually performed by a third party and often obtained from independent testing organizations.

4. Certificate of Origin;

Importers in several countries require a certificate of origin without which clearance to import is refused. The certificate of origin states that the goods exported are originally manufactured in the country whose name is mentioned in the certificate. Certificate of origin is required when.

The goods produced in a particular country are subject to’ preferential tariff rates in the foreign market at the time importation.

The goods produced in a particular country are banned for import in the foreign market.

5. GSP:

It is Generalized System of Preference. It certifies that the goods being exported have originated/ been manufactured in a particular country. It is mainly useful for taking advantage of preferential duty concession, if available. It is applicable in countries forming European Union.

6. IEC Certificate:

It is an Import-Export Code Certificate issued by DGFT, Ministry of Commerce, and Government of India. It is a 10 digit code number. No exports or imports will be affected without the IEC code. It is mandatory for every exporter.

7. Bill of Lading:

The bill of lading is a document issued by the shipping company or its agent acknowledging the receipt of goods on board the vessel, and undertaking to deliver the goods in the like order and condition as received, to the consignee or his order, provided the freight and other charges as specified in the bill have been duly paid. It is also a document of title to the goods and as such, is freely transferable by endorsement and delivery.

8. Airway Bill:

An airway bill, also called an air consignment note, is a receipt issued by an airline for the carriage of goods. As each shipping company has its own bill of lading, so each airline has its own airway bill. Airway Bill or Air Consignment .Note is not treated as a document of title and is not issued in negotiable form.

9. Mate's Receipt:

Mate's receipt is a receipt issued by the Commanding Officer of the ship when the cargo is loaded on the ship. The mate's receipt is a prima facie evidence that goods are loaded in the vessel. The mate's receipt is first handed over to the Port Trust Authorities. After making payment of all port dues, the exporter or his agent collects the mate's receipt from the Port Trust Authorities. The mate's receipt is freely transferable. It must be handed over to the shipping company in order to get the bill of lading. Bill of lading is prepared on the basis of the mate's receipt.

10. Shipping Bill:

Shipping bill is the main customs document, required by the customs authorities for granting permission for the shipment of goods. The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e. certified by the customs. Shipping bill is normally prepared in five copies:

Customs copy. Drawback copy. Export promotion copy. Port trust copy. Exporter's copy.

12. Letter of Credit:

This method of payment has become the most popular form in recent times; it is more secured as company to other methods of payment (other than advance payment).

A letter of credit can be defined as “an undertaking by importer’s bank stating that payment will be made to the exporter if the required documents are presented to the bank within the variety of the L/C”.

Contents of a Letter Of Credit

A letter of credit is an important instrument in realizing the payment against exports. So, needless to mention that the letter of credit when established by the importer must contain all

necessary details which should take care of the interest of Importer as well as Exporter. Let us see shat a letter of credit should contain in the interest of the exporter.

This is only an illustrative list.

Name and address of the bank establishing the letter of credit letter of credit number and date The letter of credit is irrevocable Date of expiry and place of expiry Value of the credit Product details to be shipped Port of loading and discharge Mode of transport Final date of shipment Details of goods to be exported like description of the product, quantity, unit rate, terms of shipment like CIF, FOB etc. Type of packing Documents to be submitted to the bank upon shipment Tolerance level for both quantity and value If L/C is restricted for negotiation Reimbursement clause

Steps in an Import Transaction with Letter of Credit

The importer includes a purchase contract for the buying of certain goods.

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The importer requests this bank to open a LC in favor of his supplier.

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The importer’s bank opens the LC as per the application.

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The opening bank will forward the original LC to the advising bank.

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The advising bank, after satisfying itself about the authenticity of the credit, forwards the same to the exporter.

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The exporter scrutinizes the LC to ensure that it confirms to the terms of contract.

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In case any terms are not as agreed, the importer will be asked to make the required amendments to the LC.

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In case the LC is as required, the exporter proceeds to make arrangements for the goods.

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The exporter will effect the shipment of goods.

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After the shipment is effected, the exporter will prepare export documents, including Bills of Exchange.

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The exporter’s bank (negotiation bank) verifies all the documents with the LC.

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If the documents are in the conformity with the terms of LC and all other conditions are satisfied, the bank will negotiates the bill.

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The exporter receives the payment in his bank account.

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The exporter receives the payment in his bank account.

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The LC Opening bank (Importer’s Bank) receives the bill and documents from the exporter’s bank.

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The importer’s bank checks the documents and informs the importer. The importer then accepts/pays the bill (This would depend on the terms, Delivery against Acceptance or Delivery against Payment). On acceptance/ payment, the importer gets the shipping documents covering the goods purchased by him.

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The LC issuing bank reimburses the negotiating bank, the amount, if the documents are found in order.

TERMS OF SHIPMENTS – INCOTERMS

The INCOTERMS (International Commercial Terms) is a universally recognized set of definition of international trade terms, such as FOB, CFR & CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial terms like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance and other costs and risks. The purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods. Incoterms deal with the number of identified obligations imposed on the parties and the distribution of risk between the parties.

More Clarification on Incoterms

EXW (At the named place)

Ex Works: Ex means from. Works means factory, mill or warehouse, which are the seller’s premises. EXW applies to goods available only at the seller’s premises. Buyer is responsible for loading the goods on truck or container at the seller’s premises and for the subsequent costs and risks. In practice, it is not uncommon that the seller loads the goods on truck or container at the seller’s premises without charging loading fee. The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works.

FCA (At the named point of departure)

Free Carrier:

The delivery of goods on truck, rail car or container at the specified point of departure, which is usually the sellers premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller’s expense. The point (depot) at origin may or may not be a customs clearance centre. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of an air carrier are considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment.

FAS (At the named port of origin)

Free Alongside Ship:

Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller’s expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks In the export quotation, indicate the port of origin(loading)after the acronym FAS, for example FAS New Yorkand FAS Bremen. The FAS term is popular in the break-bulk shipments and with the importing countries using their own vessels.

FOB (At the named port of origin)

Free on Board: The delivery of goods on the board the vessel at the named port of origin (Loading) at seller’s expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. In the export quotation, indicate the port of origin (loading) after the acronym FOB, for example FOB Vancouver and FOB Shanghai. Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freight only. However, in practice, many importers and exporters still use the term FOB in the air freight. In North America, the term FOB has other applications. Many buyers and sellers in Canada and the USA dealing on the open account and consignment basis are accustomed to using the shipping terms FOB Origin and FOB destination. FOB Origin means the buyer is responsible for the freight and other costs and risks. FOB Destination means the seller is responsible for the freight and other costs and risks until the goods are delivered to the buyer’s premises which may include the import custom clearance and payment of import customs duties and taxes at the buyer’s country, depending on the agreement between the buyer and seller.

INCOTERMS (International Commercial Terms).

CFR (At the named port of destination)

Cost and Freight:

The delivery of goods to the named port of destination (discharge) at the seller’s expenses. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR was formerly written as C&F. Many importers and exporters worldwide still use the term C&F.

CIF (At named port of destination)

Cost, Insurance and Freight: The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller’s expense. Buyer is responsible for the import customs clearance and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym CIF, for example CIF Pusan and CIF Singapore. Under the rules of the INCOTERMS 1990, the term CIFI is used for ocean freight only. However, in practice, many importers and exporters still use the term CIF in the air freight.

CPT (At the named place of destination)

Carriage paid To:

The delivery of goods to the named port of destination (discharge) at the seller’s expenses. Buyer assumes the cargo insurance, import custom clearance, payment of custom duties and taxes, and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.

CIP (At the named place of destination)

Carriage and Insurance Paid To: The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller’s expense. Buyer assumes the importer customs clearance, payment of customs duties and taxes, and other costs and risks.

DAF (At the names point at frontier)

Delivered at Frontier: The delivery of goods at the specified point at the frontier on seller’s expense. Buyer is responsible for the import custom clearance, payment of custom duties and taxes, and other costs and risks.

DES (At named port of destination)

Delivered Ex Ship:

The delivery of goods on board the vessel at the named port of destination (discharge) at sellers expense. Buyer assumes the unloading free, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks.

DEQ (At the named port of destination)

Delivered Ex Quay:

The delivery of goods to the Quay (the port) at the destination on the buyers expense. Seller is responsible for the importer customs clearance, payment of customs duties and taxes, at the buyers end. Buyer assumes the cargo insurance and other costs and risks.

DDU (At the named point of destination)

Delivered Duty Unpaid:

The delivery of goods and the cargo insurance to the final point of destination, which are often the project site or buyers premises at sellers expense. Buyer assumes the import customs clearance, payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks.

DDP (At the named point of destination)

Delivered Duty Paid:

The seller is responsible for most of the expenses which include the cargo insurance, import custom clearance, and payment of custom duties, and taxes at the buyers end, and the delivery of goods to the final point of destination, which is often the project site or buyers premise. The seller may opt not to insure the goods at his/her own risk. “E”-term, “F”-term, “C”-term & “D”-term: Incoterms 2000, like its immediate predecessor, groups the term in four categories denoted by the first letter in the three-letter abbreviation. Under the “E”-TERM (EXW), the seller only makes the goods available to the buyer at the seller’s own premises. It is the only one of that category.

Under the “F”-TERM (FCA, FAS, &FOB), the seller is called upon to deliver the goods to a carrier appointed by the buyer.

Under the “C”-TERM (CFR, CIF, CPT, & CIP), the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional cost due to events occurring after shipment or discharge.

Under the “D”-TERM (DAF, DEQ, DES, DDU & DDP), the seller has to bear all costs and risks needed to bring the goods to the place of destination. All terms list the seller’s and buyer’s obligations. The respective obligations of both parties have been grouped under up to 10 headings where each heading on the seller’s side “mirrors” the equivalent position of the buyer. Examples are Delivery, Transfer of risks, and Division of costs. This layout helps the user to compare the party’s respective obligations under each Incoterms.

DOCUMENTS RELATED TO SHIPMENT

(i) Shipping Bill

The shipping bill is the main document on the basis of which the customs permission is given. Under manual processing of export documents, the exporter is required to file the appropriate type of shipping bill to seek the order for customs clearance of the export shipment. Under computerized processing, the exporter does not prepare the shipping bill; instead it is computer generated. The customs order is called “LET EXPORT Order”. After the shipping bill is stamped by the customs, then only the goods are allowed to be carted to the docks.

The shipping bill contains the following particulars:

(A) Nature of goods exported,

(B) Name of vessel, master or agents,

(C) Flag,

(D) Country of destination, the port at which the goods are to be discharged,

(E) Exporter’s address,

(F) Importer’s address,

(G) Details of the packages, such as numbers and marks,

(H) Quantity details of each case, total number of cases and aggregate weight,

(I) F.O.B. prices and real value as defined in the Sea Customs Act and

(J) Whether the merchandise is Indian or foreign origin which is re-exported.

The shipping bill is prepared in five copies:

1. Customs copy

2. Drawback copy

3. Export Promotion copy

4. Port Trust copy and

5. Exporters copy

Importance of Shipping Bill

(A) It is an important document required by the customs authorities for clearance of goods. The customs authorities endorse the duplicate copy of the shipping bill with” Let Export Order” and “Let Ship Order”.

(B) After the clearance of customs, exporter can load the goods on ship.

(C)Shipping bill endorsed by the customs authorities facilitates the exporter to claim incentives such as excise duty refund and duty drawback.

Types of Shipping Bills

(1)Free Shipping Bill:

It is used in case of goods which neither attract any export duty nor entitled for duty drawback. It is printed on simple white paper.

(2)Dutiable Shipping Bill:

It is used in case of goods, which attract export duty. It may or may not be entitled to duty drawback. It is printed on yellow paper.

(3)Drawback Shipping Bill:

It is used in case when refund of duties is allowed on the goods exported. Generally, it is printed on green paper, but when the drawback claim is paid to a bank, then it is printed on yellow paper.

(4)Shipping bill for Shipment Ex-Bond:

It is used in case of imported goods for re-export and which are kept in bond. It is printed on yellow paper.

(5)Coastal Shipping Bill:

It is used in case of shipment that is moved from one port to another port, by sea, within India. It is not an export document. When goods are sent by sea, it is called Shipping Bill and it is Airway bill when goods are sent by Air.

(ii) Mate’s Receipt

A mate’s receipt is issued by the mate (assistant to the captain of the ship) after the cargo is loaded into the ship. It is an acknowledgment that the goods have been received on board the ship.

Contents of Mate’s Receipt

Mate’ receipt contains the details about

1. Name of the vessel,

2. Date of shipment,

3. Berth,

4. Marks,

5. Numbers,

6. Description and condition of goods at the time they are shipped, port of loading,

7. Name and address of the shipper,

8. Name and address of the importer(consignee) and

9. Other required details.

Types of Mate’s Receipts

Mate’s receipt can be clean or qualified.

(A)Clean Mate’s Receipt:

Mate of the ship issues a clean mate’s receipt if the condition, quality of the goods and their packing are proper and free from defects.

(B)Qualified Mate’s Receipt:

If the mate’s receipt contains any adverse remarks as to the quality or condition of the goods/packing, it is known as ‘Qualified Mate’s Receipt’. If the goods are not packed properly and the mate’s receipt contains any adverse remarks about the packing such as “Poor Packing’, the shipping company does not assume any responsibility in respect of the goods during transit. It is necessary for the exporter to secure the mate’s receipt without any adverse remarks. On the basis of the mate’s receipt, the Bill of Lading is prepared by the shipping agent. If there are adverse remarks in the mate’s receipt, the same will be incorporated in the Bill of Lading, which may turn to become a claused Bill of Lading, and this may not be acceptable for negotiation. Mate’s receipt is first handed to the Port Trust Authorities who hands over to the exporter soon after he clears their dues. This procedure is adopted to facilitate for collection of port dues from the exporter.

Significance of Mate’s Receipt

(1)Mate’s receipt is an acknowledgment of goods. It is not a document of title.

(2)It is issued to enable the exporter or his agent to secure bill of lading from the shipping company.

(3)Bill of Lading, which is the title to the goods, is prepared on the basis of Mate’s receipt so it should be obtained without any adverse remarks.

(4)Port Trust Authorities are enabled to collect their dues as it is routed through them.

(iii) Cart Ticket

A cart ticket is also known as cart chit. This is prepared by the exporter, which contains the details of the vehicle number, description of goods, quantity, name of the shipper, shipping bill number and port of destination. The driver of the vehicle carries the cart ticket. At the time of entry into Port, the cart ticket is verified by the Port Authorities to satisfy that the vehicle is carrying only those goods, which are mentioned in the cart ticket. After being satisfied, the gatekeeper/warden/inspector issues the gate pass to the driver and allows entry of the vehicle into the premises of the port.

(iv) Certificate of Measurement

Freight is charged either on the basis of weight or measurement. When weight is the basis of measurement, the shipping company for the purpose of calculation of freight may accept the weight declared by the exporter. However, when measurement is the basis for calculation of freight, the shipping company may insist on a certificate issued by Chamber of Commerce or other approved organization in respect of goods. The certificate of measurement contains the details in respect of description of goods, quantity, length, breadth and depth of the packages, name of the vessel and port of destination of the cargo etc.,

(v) Bill of Lading

Bill of Lading is a document issued by the shipping company or his agent acknowledging the receipt of cargo on board. This is an undertaking to deliver the goods in the same order and condition as received to the consignee or his agent on receipt of freight, the shipping company is entitled to. It is a very important document to the exporter as it constitutes document of title to the goods. Each shipping company has its own bill of lading. The exporter prepares the bill of lading in the form obtained from the shipping company or agents of shipping company. The goods can be consigned to order of the exporter, which means the exporter can authorize someone else to receive the goods on his behalf. In such a case, the exporter would discharge the bill of lading on its reverse. When the bill of lading is negotiated through the bank, it would be endorsed in favour of the bank that would endorse further to the importer, on receipt of payment. Bill of Lading is made in signed set of 2 originals, any one of which can give title to the goods. The shipping company also issues non-negotiable copies (unsigned) which are not documents of title to goods but serves the purpose of record only. The reverse side of Bill of Lading contains the terms and conditions of the contract of carriage. The clauses on most of the bills of lading are common. A Bill of lading should be clean to facilitate the exporter to obtain the proceeds of export without difficulty.

Types of Bill of Lading

(1) Received for Shipment B/L: A shipping company issues it when goods have been given to the custody of the shipping company, but they have not been placed on board.

(2)On Board Shipped B/L: The shipping company certifies that the cargo has been received on board the ship.

(3)Clean B/L: It indicates a clean receipt. In other words, it implies that there has been no defect in the apparent order or condition of goods at the time of receipt or shipment of goods by the shipping company.

(4)Claused or Dirty B/L: It shows that the B/L is qualified which expressly declares a defective condition of goods. The clause may state “bale number 5 hook-damaged” or “package number

10 broken”. By superimposing this type of clause, the shipping company is limiting its responsibility at the time of delivery of goods, at the destination. It is very important to note that bank accepts only a clean B/L at the time of negotiation.

(5))Transshipment or Through B/L: When the journey covers several modes of transport from the place of starting to the place of destination, this type of B/L is taken. It indicates that transshipment would be en route. For example, part of the journey is by ship and the rest of journey may be by road, rail and air.

(6)Stale B/L: According to international commercial practice, B/L along with other documents must be presented to the bank not later than twenty one days of the date of shipment as given in the B/L. In some cases, the importer may indicate the number of days within which the documents are to be presented from the date of shipment. Exporter has to comply with the stipulation indicated. Otherwise, the B/L becomes stale and is not accepted by the bank for payment. A stale bill is one which is tendered to the presenting bank so late a date that it is impossible for the bank to dispatch to the consignee’s place, in time, before the goods arrive at the destination port. In other words, bank finds it impossible to see the documents reach before the ship reaches the destination.

(7)To Order B/L: In this case, the B/L is issued to the order of a specified person.

(8)Charter Party B/L: It covers shipment on a chartered ship.

(9)Freight paid B/L: When the shipper pays the freight, then this type of B/L is issued with the words “Freight paid”.

(10)Freight Collect B/L: When the freight on the B/L is not paid and to be collected at the point of destination, it is marked “Freight Collect” and this B/L is known as “Freight Collect B/L”. Who can lodge claim: B/L is the only evidence to file claim against the shipping company in the event of non-delivery, defective delivery or short delivery. If the importer makes payment, he can lodge the claim, as he will be in possession of negotiable copy of B/L. Otherwise, exporter can lodge the claim and receive the value of goods.

Contents of B/L

1. Name and address of the shipper.

2. Name and address of the vessel.

3. Name of port of loading.

4. Date of loading of goods.

5. Name of port of discharge and place of delivery.

6. Quantity, quality, marks and other description.

7. Number of packages.

8. Freight paid or payable.

9. Number of originals issued.

10. Name of the shipping company.

11.Voyage number and date.

12.Signature of the issuing authority.

SIGNIFICANCE OF BILL OF LADING

Importance to the Exporter

1.It is an acknowledgment from the shipping company that the goods have been received for the purpose of shipment.

2.After receipt of B/L, it helps him to send the shipping advice to the importer.

3.If any damage occurs to the cargo during transit, he can hold the shipping company responsible, if he has received clean bill of lading.

4.A copy of bill of lading is required to be attached to the application form to claim the incentives

5.It is a contract of carriage between the exporter (shipper) and the shipping company.

Importance to the Importer

1. It is a document of title to the goods, which enables him to transfer the tittle by endorsement and delivery.

2. The exporter can send a non-negotiable copy of B/L as advance intimation of shipment to the importer.

3. It enables him to pay the freight amount as the B/L contains freight details.

Importance to the Shipping Company

1. It helps the shipping company to collect the freight amount from the exporter (CIF

contract) or importer (FOB contract).

2. Shipping company can protect itself from the wrongful claims of exporter/importer by incorporating condition of goods/packaging, at the time of receipt. In case theshipping company, inadvertantly, omits to mention the advesrse conditon, at thetime of receipt, advantage can be claimed by exporter/importer, by submitting wrongful claim.

(vi) Airway Bill

Airway Bill is also called Air consignment Note. It is a receipt issued by an airline for the carriage of goods. As each shipping company has its own Bill of Lading, so each airline has its own airway bill. Airway Bill or Air consignment note is not treated as a document of title to goods and is not issued in negotiable form. Delivery of the goods is made to the consignee without the production of airway bill.

Importance of Airway Bill

1.It is a contract of carriage of goods between the consignor and airlines or his agent.

2.It acts as a customs declaration form.

3.It contains details of freight and so works as a freight bill.

(vii) Bill of Entry

Bill of Entry is a declaration form made by the importer or his clearing agent in the prescribed form under Bill of Entry Regulations, 1971 on the strength of which clearance of imported goods can be made. When goods are imported into a country, customs duty has to be paid by the importer. For this purpose, importer prepares the Bill of Entry declaring the value of goods, quantity and description. This is prepared in triplicate. Customs authorities may ask the importer to produce the invoice of the exporter, broker’s note and insurance policy to satisfy about the correctness of value of goods declared.

For the purpose of giving information, goods are classified into three categories.

(1) Free Goods: These goods are not subjected to any customs duty.

(2) Goods for Home Consumption: These goods are imported for self-consumption.

(3) Bonded Goods: Where goods are subject to customs duty, till duty is paid, goods are kept in Bond.

Contents of Bill of Entry

1.Name and address of importer.

2.Name and address of exporter.

3.Import licence number.

4.Name of port where goods are to be cleared.

5.Desription of goods.

6.Value of goods.

7.Rate and value of import duty payable.

8.Rate and value of import duty payable.

DOCUMENTS RELATED TO PAYMENT

(i ) Letter of Credit

A letter of credit is a document-containing guarantee of a bank to make payment to the exporter, under certain conditions and up to a certain amount, provided the conditions contained in the letter of credit are complied with. For a detailed presentation, reader may refer to the chapter on Export Financing.

(ii ) Bill of Exchange

The Negotiable Instruments Act, 1881 defines a Bill of Exchange as “ an instrument in writing containing an unconditional undertaking, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument”.

There are five important parties to a Bill of Exchange:

The Drawer: The drawer is the person who has issued the bill. In an export transaction, exporter draws the bill as money is owed to him. The Drawee: The drawee is the person on whom the bill is drawn. Exporter draws the bill on the importer who is the drawee. Drawee is the debtor who owes money to the exporter (creditor).

The Payee: The payee is the person to whom the money is payable. The bill can be drawn by the exporter payable to the drawer (himself) or his banker. The Endorser: The endorser is the person who has placed his signature on the back of the bill signifying that he has obtained the title for the bill on his own account or on account of the original payee.

The Endorsee: The endorsee is the person to whom the bill is endorsed. The endorsee can obtain the payment from the drawer.

Types of Bills of Exchange

(a)Sight Bill of Exchange: In this Bill of Exchange, also known as demand Bill of Exchange, the drawee has to make the payment, on presentation.

(b)Usance Bill of Exchange: In case of Usance or Time Bill of Exchange, payment is to be made on the maturity date, after a certain period, known as tenor. When the calculation of period is made with reference to the sight of bill, the bill is known as ‘after sight usance bill’. Sometimes, the maturity date is calculated with reference to the date of bill of exchange, it is known as ‘after date usance bill’.

(c)Clean Bill of Exchange: A clean Bill of Exchange is one when the relative shipping documents do not accompany with it. In this case, the relative shipping documents i.e. Bill of Lading is sent directly to the importer to enable him to take delivery of the cargo.

(d)Documentary Bill of Exchange: A documentary Bill of Exchange is one where the relative shipping documents such as Bill of Lading, marine insurance policy, invoice and other documents are sent along with the Bill of Exchange. This is the common form in export trade.

The documents are given to the bank either for collection or negotiation. In case the importer gets the documents on acceptance, it is called Documents against Acceptance. If the importer gets the documents only on payment, it is called Documents against Payment. After shipment of goods, the exporter draws the bill on the importer or, more frequently, on bank acting for the importer, as agreed between the exporter and importer. The exporter usually draws the bill to his own order or that of his bank. Later, he endorses the bill in favour of his bank. Exporter may request his bank to collect or purchase the bill. In case of purchase of bill, exporter receives the export proceeds immediately. In any case, the exporter’s bank sends the documents to its branch or correspondent’s bank in importer’s place. The bank at that end sends the intimation of receipt of documents to the importer either for acceptance or payment, dependant on the nature of bill drawn. In case of Documents against acceptance, importer accepts the bill and then only gets title to goods. In case of Documents against payment, importer has to make the payment for securing delivery of documents.

Trust Receipt:

In case of D/P bill, the importer has to make the payment to take delivery of goods. If the importer is unable to make the payment, on arrival of the shipment, and take possession of goods, he executes a Trust Receipt to take delivery of goods. Importer will have the right to sell the goods and would be acting as agent of the bank. Importer will be depositing the sale proceeds with the bank, as and when sales are made. Till the importer makes the final settlement, bank retains ownership for the merchandise and the role of the importer is not that of owner but that of agent to the bank. This arrangement facilitates the importer to take delivery of goods when sufficient funds are not available with him. This facility provides the flexibility to the importer while the interests of bank are protected, at all times.

Bank Certificate of Payment:

It is a certificate issued by the negotiating bank to the exporter that the bill covering the shipment has been negotiated through it and export proceeds have been received from the importer. The certificate indicates the details of the merchandise exported. Exporter submits this certificate of payment for establishing that the export transaction has been completed totally by him. This certificate is required to comply with the requirements for the discharge of export obligation.

DOCUMENTS RELATING TO INSPECTION

Certificate of Inspection

It is a certificate issued by the Export Inspection Agency certifying that the consignment has been inspected under the Export (Quality Control and Inspection) Act, 1963 and found that the requirements relating to quality control and inspection have been complied with, as applicable, and the goods are export worthy.

DOCUMENTS RELATED TO EXCISABLE GOODS

(1) GP Forms

GP stands for Gate Pass. A GP form, gate pass, is issued for the removal of excisable goods from the factory or warehouse. Form GP1 is issued for the removal of excisable goods on payment of duty. GP2 is issued for the removal of excisable goods without payment of duty.

(2) Form C

It is not to be confused with C form. Form C is used for applying for rebate of duty on excisable goods (other than vegetable, non-essential oils and tea) exported by sea. It is to be submitted, in triplicate, to the Collector of Central Excise.

(3) Forms AR4/AR4A

These forms are meant for removal of excisable goods for export by sea/post. Now, in their place, ARE-1 form is used.

DOCUMENTS RELATED TO FOREIGN EXCHANGE REGULATIONS-LEGAL

REGULATED DOCUMENTS

Foreign Exchange Regulations require that all exports other than exports to Nepal and Bhutan shall be declared on the following forms:

1. GR Form

GR is an exchange control document required by Reserve Bank of India. It is required to be filled, in duplicate, for all exports in physical form other than by post. An exporter has to realize the export proceeds within a period of 180 days from the date of shipment, in India. To ensure control on realization, RBI has introduced this procedure.

GR form, in duplicate, is to be submitted by the exporter to the customs along with the Shipping Bill. Customs will give their running serial number on both the copies. After admitting the customs shipping bill, customs will certify the value of goods declared by the exporter in the space earmarked and also record their assessment of value. Customs retains the original copy and return the duplicate to the exporter. Customs sends the original GR form to RBI, which will be an indication of the goods, which are to be exported. Exporter has to submit the duplicate of GR form to the authorized dealer, named in GR form, along with other shipping documents within a period of 21 days of shipment for the purpose of negotiation. After the negotiation of bill, the authorized dealer will report the transaction of negotiation to RBI. On receipt of the original, RBI is apprised of the developments in respect of the export transaction. Once the export proceeds are received from the importer, the authorized dealer has to forward the duplicate copy of GR form together with the copy of invoice to RBI. RBI recognizes that the export transaction has been concluded and export proceeds have been fully realized. At certain customs offices, shipping bills are processed electronically. So, at those offices, GR form has been replaced by SDF (Statutory Declaration Form).

2. PP Form

It is required to be filled in for all export transactions, in duplicate, for all countries to be made by post parcel, except when made on “value payable” or “cash on delivery basis”.

3. VP/COD Form

It is required to be filled for all export transactions to all countries by post where the export proceeds are realized on “value payable” or “cash on delivery basis”.

3. SOFTEX Form

It is required to be prepared, in triplicate, for export of computer software in non- physical form. All the above documents serve the purpose of monitoring the realization of export proceeds in the stipulated manner.

Transit Time

For Europe-

20-30 days

For Gulf

3-10 days

For U.S.

30-40 days

By Airlines-

Luftausa (Europe)

Air India

British Airways

Emirates

KLM

Dutch

Qatar

Hamburg Sud

Maersk

Happy Lloyd

CMA CGM

Consolidations –

WSA

All Cargo

ILSA

Trans –global

Port – Shipping Documents

Bill of Lading

Shipping Bill

Packing

MTC

Fumigation Certificate

Our primary objective of doing this project is to get the first hand knowledge of functioning of an export house. Since we are not comparing two different entities on the basis of their financial results, rather we are learning the export procedure. Hence exploratory research design is the need of the hour.

Quality & Testing Facilities

We adhere to strict Quality Control Measures. Vigorous tests are conducted on all incoming raw material, intermediate and finished products to ensure best quality products as per quality Assurance Plan. A team of trained supervisors and quality controled inspectors ensure that the quality is maintained at all the stages of production.

We aim to deliver high quality products that conforms to different international standards and customer specification. The process is carefully documented to ascertain consistent and high quality batches of each product lot.

At Multimetals, we use the best available testing facilities for conducting Physical, Electrical, Mechanical and other kinds of tests that are required for assuring superior quality products.

PRODUCTS;-

COPPER TUBES

PRODUCT APPLICATION AREAS;-

Defense, Refrigeration, Air-Conditioning, Plumbing, Engineering Application, Electrical conductors and Bus Bars

95/5 CuNi, 80/20 CuNi and Cunifer Tubes

Product Application Areas-

Chillers, Heat Exchangers & condensers, Power plants, Refineries, Desalination Plants, Ship Buildings and Ship Repairs, Repairs

90/10 CuNi Tubes

Product Application Areas-

Chillers, Heat Exchangers & Condensers, Power Plants & Refineries, Desalination Plants, Ship Buildings and Ship Repairs, Defense

70/30 CuNi Tubes

Products Application Areas-

High Capacity power plants, Ship Buildings & Ship Repairs, Heat Exchangers & Condensers, Distiller Tubes, Evaporators, Ferrules.

Admiralty Brass Tubes

Product Application –

High Capacity power plants, Ship Buildings & Ship Repairs, Heat Exchangers & Condensers, Distiller Tubes, Evaporators, Ferrules.

Aluminium Brass Tubes-

Products Application Areas-

High Capacity power plants, Ship Buildings & Ship Repairs, Heat Exchangers & Condensers, Distiller Tubes, Evaporators, Ferrules.

Aluminium Bronze Tubes-

Product Application Areas-

High Capacity power plants, Ship Buildings & Ship Repairs, Heat Exchangers & Condensers, Distiller Tubes, Evaporators, Ferrules.

PLANT & MACHINERY

METHODOLOGY

Our primary objective of doing this project is to get the first hand knowledge of functioning of an export house. Since we are not comparing two different entities on the basis of their financial results, rather we are learning the export procedure. Hence Exploratory research design is the need of the hour. Further there are few reasons which made me to use Exploratory Qualitative research:

It is not always desirable or possible to use fully structured or formal methods to obtain information from respondents.

People may be unable & unwilling to answer certain questions or unable to give truthful answers.

People may be unable to provide accurate answer to question that tap their sub consciousness.

CREDENTIALS/ AWARDS

RECOMMENDATIONS

Increase Duty drawback rates. Moratorium on Term Loans Interest Subvention Custom and Excise Duty on Synthetics Technology Up gradation and Fund Scheme Exemption from Service Tax Reduction on custom duty on manufacturing machinery Refund of states taxes & Duties to Exporters

SUGGESTIONS

As Multimetals is a public sector undertaking the export procedures and documentation are already pre-defined and pre-determined as per the guidelines of Multimetals and it cannot deviate from that.

Currently Multimetals customer base is concentrated only in the European market; it can expand its customer base further outside Asia to make its global presence more strong like its competitors.

As far as the documentation part is considered, some documentation part consumes more time like the L.C; also there are many lengthy procedures. Multimetals should opt for a more smooth procedure which consumes less time.

Quality specifications should be maintained so as it conforms to the standards demanded by the buyer so as to get minimal number of customer complaints.

Multimetals has currently implemented e-export system which some customers are not very convenient with so Multimetals should switch to a more user-friendly e-system

Multimetals should address the customer complaints more efficiently.

ANNEXURES

CERTIFICATIONS

ISO 9001;2008 CERTIFIED ENTERPRISESelf-Certification AD 2000 Merkblatt W6/2 FromTUV NORD, GermanyLlyod’s Work Approval for Marine Tubes and PipesPED Certification for Pressure Vessels Directive from TUV NORD, Germany

MAJOR VENDOR APPROVALS

KNPCTAKREERGEAQATAR PETROLEUMADMA OPCODRYDOCKS WORLDADNOCENGINEERS INDIA LIMITEDTHYSSENKRUPP

Interview Questions Mr. Chanky TanejaSales Officer, Export & ImportMULTIMETALS LTD.

How an export order is processed?

What role the different departments play for the completion of the export order?

What role does merchandising department play in an metallic product export house?

What are the different documents prepared & used for the export?

How important are these documents?

What are the incoterms? How are they important?

What is a Letter of credit? What is its significance?

BIBLIOGRAPHYwww.multimetals.inwww.wikipedia.comwww.scribd/export.doc.www.googlebooks.comwww.ministryofcommerce.comwww.businessworldindia.com

Reference book Puri, V. K., Exporters’ Guidelines, A Basic Book on How to Export as per Govt.

Policy & Procedures, 2nd Edition, JBA Publishers, 2008-09. Paul, Justin & Aserkar, Rajiv, Export Import Management, 2nd Edition, Oxford

University Press, 2009, Chapter – 2, pp. 17-29. Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth

Edition, Pearson Prentice Hall, 2005, Part II, pp. 71-340.