project kamlesh
TRANSCRIPT
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EXPORTS
DOCUMENTATION
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Acknowledgement
I express my sincere thanks to my project guide, Mr. Tanveer Ahmed assistant
professor at Institute of Technology & Management, Bhilwara for guiding me right from
the inception till the successful completion of the project. I sincerely acknowledge him
for extending their valuable guidance, support for literature, critical reviews of project
and the report and above all the moral support he had provided to me with all stages
of this project.
I would like to thank RAJASTHAN TECHINICAL UNIVERSITY for giving anopportunity to work on a valuable project.
I would also like to thank Dr. Rohit Ramesh (Dean administration),Professiors &
supporting staff of institute of technology & Management Bhilwara, for their help and
cooperation throughout our project.
KAMLESH KUMAR BHANDARI
MBA 4th Sem.
(ITM Bhilwara)
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INDEX
S.No.
Contents
I Steel Industry
II Group Profile
III Company Profile
IV Export
V Export Transportation
VI Export process
VII Export Documentation
VIII Research methodology
IX SWOT Analysis
X Conclusion
XI Suggestion
XII Bibliography
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STEEL INDUSTRY
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1. Global Scenario
In 2007 the World Crude Steel output reached 1343.5 million metric tons and
showed a growth of 7.5% over the previous year. It is the fifth consecutive year
that world crude steel production grew by more than 7%. (Source: IISI)
China remained the worlds largest Crude Steel producer in 2007 also (489.00million metric tons) followed by Japan (112.47 million metric tons) and USA
(97.20 million metric tons). India occupied the 5th position (53.10 million metric
tons) for the second consecutive year. (Source: IISI)
The International Iron & Steel Institute (IISI) in its forecast for 2008 has
predicted that 2008 will be another strong year for the steel industry with
apparent steel use rising from 1,202 mllion metric tonnes in 2007 to 1,282
million metric tonnes in 2008 i.e. by 6.7%. Further, the BRIC (Brazil, Russia,
India and China) countries will continue to lead the growth with an expected
increase in production by over 11% compared to 2007.
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2. Domestic Scenario
The Indian steel industry has entered into a new development
stage from 2005-06, riding high on the resurgent economy and
rising demand for steel. Rapid rise in production has resulted in
India becoming the 5th largest producer of steel.
It has been estimated by certain major investment houses, such
as Credit Suisse that, Indias steel consumption will continue to
grow at nearly 16% rate annually, till 2012, fuelled by demand
for construction projects worth US$ 1 trillion. The scope for
raising the total consumption of steel is huge, given that per
capita steel consumption is only 40 kg compared to 150 kg
across the world and 250 kg in China.
The National Steel Policy has envisaged steel production to
reach 110 million tonnes by 2019-20. However, based on the
assessment of the current ongoing projects, both in Greenfield
and Brownfield, Ministry of Steel has projected that the steel
capacity in the county is likely to be 124.06 million tonnes by
2011-12. Further, it is expected that Indias steel capacity would
be nearly 293 million tonne by 2020.
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Domestic Demand
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3.Production
Steel industry was delicensed and decontrolled in 1991 & 1992 respectively.
Today, India is the 5th largest crude steel producer of steel in the world.
In 2007-08(Apri-June''07), production of Finished (Carbon) Steel was 12.088
million tones (Prov).
Production of Pig Iron in 2007-08(April-June'07) was 1.165 Million Tonnes
(Prov).
The share of Main Producers (i.e SAIL, RINL and TSL) and secondary
producers in the total production of Finished (Carbon) steel was 33% and 67%
respectively during the period 2007-08 (April-June, 2007).
Last 4 year's production of pig iron and finished (carbon) steel is given below:
(in million tonnes)
Category 2003-04 2004-05 2005-06 2006-07
(Provisional)
2007-08 (April-
June'07) (Prov.
estimated)
Pig Iron 3.764 3.228 4.695 4.960 1.165
Finished
Carbon Steel
36.957 40.055 44.544 49.391 12.088
(Source: Joint Plant Committee)
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4.Demand - Availability Projection
Demand Availability of iron and steel in the country is projected by Ministry of
Steel annually.
Gaps in Availability are met mostly through imports.
Interface with consumers by way of a Steel Consumer Council exists, which is
conducted on regular basis.
Interface helps in redressing availability problems, complaints related to quality.
5. Steel Prices
There has been an up-trend in the domestic steel prices since 2006-07 and the
trend accentuated since January this year.
Rise in raw material prices, strong demand in the international and domestic
market and up-trend in the global steel prices have been some of the reasons
cited by the industry for increase in the steel prices in the domestic market.
The mismatch in demand and supply is considered to be the main reason on the
demand side for the rise in steel prices.
The Government also took various fiscal and other measures for stabilizing the
steel prices like exempting pig iron, non alloy steel and steel making inputs like
zinc, Ferro-alloys and met coke from customs duty; withdrawing DEPB benefits
on export of various categories of steel products and bringing back railway
freight on iron ore from classification 180 to 170 for domestic steel producers.
In May 2008, the Government imposed 15% export duty on semi-finished
products, and hot rolled coils/sheet, 10% export duty on cold rolled coils/sheets
and pipes and tubes and 5% export duty on galvanized steel in coil/sheet form in
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order to further curtail rising prices and increase supply of steel in the domestic
market.
7. Exports of Iron & Steel
Iron & Steel are freely exportable.
Advance Licensing Scheme allows duty free import of raw materials for exports.
Duty Entitlement Pass Book Scheme (DEPB) introduced to facilitate exports.
Under this scheme exporters on the basis of notified entitlement rates, are granted
due credits which would entitle them to import duty free goods. The DEPB
benefit on export of various categories of steel items scheme has beentemporarily withdrawn from 27th March 2008, to increase availability in the
domestic market.
Exports of finished carbon steel and pig iron during the last four years and the
current year is as :
(Qty. in Million Tonnes)
Finished (Carbon)
SteelPig Iron
2002-2003 4.506 0.629
2003-2004 4.835 0.518
2004-2005 4.381 0.393
2005-2006 4.478 0.440
2006-2007 (Prov.estimated) 4.750 0.350
2007-2008(April-June 07)
(Prov.estimated)1.310 0.120
(Source: Joint Plant Committee)
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8. Opportunities for growth of Iron and Steel inPrivate Sector
The Growth Profile
(i) Steel
The liberalization of industrial policy and other initiatives taken by the Government
have given a definite impetus for entry, participation and growth of the private sector
in the steel industry. While the existing units are being modernized/expanded, a large
number of new/Greenfield steel plants have also come up in different parts of the
country based on modern, cost effective, state of-the-art technologies.
At present, total (crude) steel making capacity is over 34 million tonnes and India,
the 8th largest producer of steel in the world, has to its credit, the capability to
produce a variety of grades and that too, of international quality standards. As per the
ratings of the prestigious "World Steel Dynamics", Indian HR Products are classified
in the Tier II category quality products a major reason behind their acceptance in
the world market. EU, Japan has qualified for the top slot, while countries like South
Korea, USA share the same class as India.
(ii) Pig Iron
In pig iron also, the growth has been substantial. Prior to 1991, there was only one
unit in the secondary sector. Post liberalization, the AIFIs has sanctioned 21 new
projects with a total capacity of approx 3.9 million tonnes. Of these, 16 units have
already been commissioned. The production of pig iron has also increased from 1.6
million tonnes in 1991-92 to 5.28 million tonnes in 2002-03. During the year 2003-
04, the production of Pig Iron was 5.221 million tonnes.
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Emerging Trends in Steel Industry
The low per capita consumption of steel in India of 29 kg compared to 150 kg in the
world, and 350 kg in the developed world, according to the National Steel
Policy 2005, plus its large population, provide significant growth opportunities for
the domestic steel industry. The estimated urban consumption per capita per annum
is around 77 kg in India and is expected to reach approximately 165 kg in 2019-20,
implying a CAGR of 5 percent. This growth is expected to be driven mainly by the
construction, automobile, oil and gas transportation sectors. The rural consumption
of steel in India remains at around 2 kg per capita per annum. The National SteelPolicy envisages raising the per capita rural consumption of steel to 4 kg per annum
from the current levels by 2019-20, implying a CAGR of 4.4 percent.
Strong export growth for steel products provides further scope for increase in
domestic demand for steel. Over the past ten years steel exports from India have been
growing at a rate of around 10.4% per annum. The National Steel Policy 2005
envisages a growth rate of 10% per annum up to 2019-20. Government of India istaking various initiatives to promote steel exports from India such as encouraging
strategic alliances with buyback arrangements and dedicated export production
through 100% export oriented units.
An increasing investment in infrastructure, construction and urbanization as well as
growth in automobile, white goods and industrial sector is a further boost to the
optimism within the domestic steel industry.
Power: Addition of 41,000 MW of power generating capacity between 2002 and
2007 and about 61,000 MW between 2007 and 2012 should drive steel off take,
leading to an incremental consumption of 0.4 million tones in FY2006 itself.
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Roads: The government intends to embark on the construction of 48 new projects
with a view to four lanes about 10,000 kms of roads in addition to the existing
ongoing programme of National Highway Authority of India. With steel intensity in
the roads under construction being considerably higher than the legacy infrastructure,
the outlook for increased steel consumption on this count appears to be brighter.
Housing and Malls: Low interest rates and easy availability of housing finance has
resulted in a housing boom; the Housing and Urban Development Corporation
intends to add two million houses every year (35 per cent in urban areas), estimated
to create an additional annual demand of 0.6 to 0.8 mtpa of steel. From 25 malls in
2003, India expects to commission more than 220 malls by 2006 (estimated 40
million sq ft) and 600 malls by 2010 (100 million sq ft).
Automobile and ancillaries and White Goods: In 2004-5, Indias auto industry
consumed about 2.8 mt of steel (about 8 per cent of Indias steel consumption). This
is expected to grow at 11-12 per cent over the next three years following Indias
emergence as a global outsourcing hub for the auto industry. Rising income and the
easy availability of low cost finance has started a white goods (refrigerators, air
conditioners and washing machines) revolution in India, leading to an increased
consumption of steel.
White goods: Industrial Projects: Indias industrial growth is encouraging a
number of companies to reinvest leading to an increased consumption of steel, the
steel industry is expected to emerge as a major steel consumer itself. The positive
outlook for increasing steel demand in India along with the strategic advantages
offered have resulted in a keen interest from domestic and international steel majors
for setting up steel projects in India.
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GROUP PROFILE
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OP JINDAL GROUP
Om Prakash Jindal, the group founder, started off in a small village in Haryana by
trading in steel pipes. He established a manufacturing plant near Kolkata in 1952,
producing steel pipes, bends and sockets. Soon thereafter, he set up a similar
manufacturing unit at Hisar. In the early 1960s Jindal Steel achieved a breakthrough
when it developed India's first 100% indigenous pipe mill at Hisar. In 1970, O.P. Jindal
established Jindal Strips Limited and set up a mini steel plant at Hisar to manufacture
coils and plates through the electric and furnace route. Since then, Jindal Steel has not
looked back and has gone from strength to strength.
Today, the Jindal group is a multi-billion-dollar, multi-location, multi-product business
empire. From mining iron ore, the group produces hot-rolled and cold-rolled steel
products, high-grade pipes and value-added galvanized items. It has also diversified into
a foray of core sector businesses. The Jindal Group has manufacturing outfits across
India, US and Indonesia offices across the globe.
The technology-driven group employs large number of people across the globe. O.P.
Jindal Group, over the years, has built up a reputation for integrity and dynamism.
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'Growth with a social conscience has been a way of life for the Jindal group. The
group's strength lies in its individual companies, with each one committed to
consolidating its strengths and excelling in its chosen field.
The core team of the Group comprises the four sons of the founder. Prithviraj Jindal
leads Jindal SAW Limited. Sajjan Jindal has promoted the JSW Group of Companies.
Ratan Jindal leads Jindal Stainless Ltd, while Naveen Jindal is at the helm of affairs at
Jindal Steel & Power Ltd.
The Jindal group is a US $8 billion conglomerate, which over the last three decades has
emerged as one of India's most dynamic business groups. Jindal Steel is one of the
largest steel producers in India with 12 plants in India and 2 in USA. Founded in 1952
by O.P. Jindal, a first-generation entrepreneur, it is today a leading steel producer, with
interests spanning across the spectrum, from mining iron ore, to manufacturing value-
added steelProducts.
Ratan Jindal Sajjan Jindal
Prithviraj Jindal Naveen Jindal
BOARD OF DIRECTORS :
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Mrs. Savitri
Devi Jindal
Chairperson
Mr. Sajjan JindalVice Chairman &
Managing Director
Mr. Seshagiri
Rao M.V.S.
Jt. ManagingDirector &
Group CFO
Dr. Vinod Nowal
Director & CEO
(Vijayanagar Works)
Mr. JayantAcharya
Director (Sales& Marketing)
Mrs. Zarin DaruwalaNominee Director ofICICI Bank Limited
Mr. V. Madhu,
IAS
NomineeDirector ofKSIIDC
Mr. G R
Sundaravadivel
Nominee Director ofUTI Asset Management
Co. Pvt. Ltd.
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Dr. S.K. Gupta
DirectorMr. Uday M. Chitale
Director
Mr. Anthony
Paul Pedder
Director
Mr. K.Vijayaraghavan
Director
Mr. Sudipto
SarkarDirector
COMPANY
SECRETARY
Mr. LancyVarghese
STATUTORY
AUDITORS
M/s. Deloitte Haskins &Sells
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Jindal Stainless Ltd: Jindal Stainless is the largest integrated stainless steel
producer in India and the flagship company of the Jindal Group. Jindal Stainless Ltd. has
plants at Hisar and Vizag and is setting up a Greenfield integrated Stainless Steel project
in Orissa. Jindal's plant at Hisar is India's only composite stainless steel plant for the
manufacture of Stainless Steel Slabs, Blooms, Hot rolled and Cold Rolled Coils, 60% of
which are exported worldwide.
Jindal Saw Ltd: A Total Pipe Solutions company manufacturing and marketing
Large Diameter Submerged Arc Welded pipes, Seamless tubes & pipes and Ductile Iron
pipes. JSL is one of the country's largest producers of SAW pipes, which is widely used
in the energy sector for the transportation of oil and gas
Jindal Steel & Power Ltd:
Asias largest, and the worlds second largest coal-based sponge iron plant, also
manufacturing rails, blooms and power. JSPL is one of the leaders in Steel
Manufacturing and Power Generation in India. JSPL is the largest private sector investor
in the State of Chhattisgarh with a total investment commitment of more than Rs. 10,000
crores. Jindal Power Limited, wholly owned subsidiary of JSPL, is setting up a 1000
MW O P Jindal Super Thermal Power Plant at Raigarh, with an investment of over Rs.
4500 crores. JSPL has also ventured into exploration and mining of high value minerals
and metals, like diamond, precious stones, gold, platinum group of minerals, base
metals, tar sands etc.
JSW Steel Limited:
JSW Steel Ltd is a fully integrated steel plant having units across Karnataka and
Maharashtra producing from pellets to colour coated steel. JSW was founded in1982,
when the Jindal Group acquired Piramal Steel Ltd, which operated a mini steel mill at
Tarapur in Maharashtra. The Jindals renamed it as Jindal Iron and Steel Co Ltd (JISCO)now known as JSW Steel Limited (Downstream). In 1994, to achieve the vision of
moving up the value chain and building a strong, resilient company, JISCO promoted
Jindal Vijayanagar Steel Ltd (JVSL) now known as JSW Steel Limited (Upstream).
JSW Foundation
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JSW Foundation, an independent Trust, which administers the social developmentinitiatives of the JSW Group is chaired by Mrs. Sangita Jindal.
Every year, the Foundation in consultation with plant managements and CSR teams atthe plants, finalises set of activities that get built into the business plan. The Foundationlays emphasis on maintaining a continuum of social development thinking into theconduct of these activities.
The Foundation's undertakes activities in the areas of:
Arts, Culture and Heritage
Livelihood and Empowerment, Especially of Women
Health
Education
Sports
Sustainability
The Foundation's engagement with social development can be classified into
the following categories:
Activities undertaken by a core team of CSR colleagues across our plant
locations. Activities spearheaded by project champions
Activities in which members of the ladies club and youth group participate
Loaning our facility for community use and benefit
Collaboration with civil society, research groups and government programs
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OUR VISION
Preparation and grooming of the next generation of young thinkers.
Continuous improvement of cost stewardship in the value chain.
Ability to nurture lasting customer relationships, by anticipating needs and
delivering beyond expectations. Catalyst for growth amongst the nations steel industries.
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Marketing of value added branded products for both domestic and global
markets.
OUR VALUES
Our Corporate values are dear to us and they guide our approach to work and
environment, transforming the way we deliver our products and services. And ourcorporate values encourage young thinking because.....
COMPANY PROFILE24
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1. HISTORY:
JSW Steel Ltd is today a fully integrated steel plant having units across Karnataka
and Maharashtra producing from pellets to color coated steel. JSW's history can be
traced back to 1982, when the Jindal Group acquired Piramal Steel Ltd, which
operated a mini steel mill at Tarapur in Maharashtra. The Jindals, who had wide
experience in the steel industry, renamed it as Jindal Iron and Steel Co Ltd (JISCO)
now known as JSW Steel Limited (Downstream) In 1994, to achieve the vision of
moving up the value chain and building a strong, resilient company, JISCO promoted
Jindal Vijayanagar Steel Ltd (JVSL) now known as JSW Steel Limited (Upstream)
.Its plant is located at Toranagallu in the Bellary-Hospet area of Karnataka, the heart
of the high-grade iron ore belt, and spread over 3,700 acres of land. It is just 340 kms
from Bangalore, and well connected to Goa and Chennai ports.The steel industry
then was on the threshold of adopting new technology, and the Jindal Group took a
lead in adopting the latest technology of steel making, known as 'COREX,'
developed by Voest Alpine of Austria. The then JVSL was the first Greenfield
project to have 'COREX' as a mainstream facility. (Others elsewhere in the world,
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who had it as part of Brownfield expansion, included ISCOR of South Africa, and
POSCO of South Korea).
JSW GROUP OF COMPANIES
JSW Group of companies consists of following companies
JSW Steel Ltd.
JSoft Solutions Ltd JSoft Solutions Ltd.
JSW Holdings Ltd.
JSW Infrastructure & Logistics Ltd.
Vijayanagar Minerals Pvt. Ltd.
Jindal Praxair Oxygen Co. Ltd.
JSoft Solutions Ltd
SUBSIDIARIES
JSW Bengal Steel Limited
JSW Jharkhand Steel Limited
JSW Steel Processing Centers Limited
JSW Steel (Netherlands) B.V.
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JSW Steel holding (U.S.A.)
JSW Natural Resource Ltd.
JSW Steel (U.K.)
Santa Fe Minin
JSW STEEL LIMITEDForging ahead, JSW Steel Ltd. is one among the
largest Indian Steel Companies in India today.
Indias third largest steelmaker, JSW Steel Ltd.consists of the most modern, eco-friendly steel
plants with the latest technologies for both
upstream & downstream processes.
FACILITIES:
Vijayanagar Works: fully integrated steel plant, located in Bellary district.
Adopting COREX Technology to produce Hot Metal.
Current capacity: 7 MTPA
Vasind and Tarapur Works: a leading manufacturer of cold rolled and color
coated steel. Indias biggest producer & largest exporter of galvanized steel .
Its strategic location, with access to the major ports of Mumbai, markets and
raw material sources has worked to its advantage.
This is a environmental friendly technology because it contains
only insignificant amounts of gases like NOx, SO2, dust, phenols,
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sulphides and ammonium. Also, waste-water emissions from the
Corex Process are far lower than those in the conventional blast-
furnace route.
It can replace the blast furnace, or can be used as a source of virgin
iron for minimills.
The JSW group, part of the US$ 4 billion O.P Jindal Group, is a dynamic, Rs 9000 crore
(US$2 billion) integrated entity encompassing key industries including steel, power,
minerals and port. Mr. Sajjan, Jindal heads JSW, visions the group to be catalyst for
accelerated growth in the two crore sectors of steel and power and aims to propel it to
new heights.
The groups constituent companies are JSW Steel Ltd., JSW Energy Ltd.,
Vijayanagar Minerals Pvt. Ltd., Jindal Praxair Oxygen Co. Ltd., South West Port Ltd.,
Southern Iron and Steel Company Ltd. And Jindal South West Holdings Ltd.
JSW Steel Ltd is today a fully integrated steel plant having units across Karnataka and
Maharashtra producing from pellets to color coated steel.
JSW's history can be traced back to 1982, when the Jindal Group acquired Piramal Steel
Ltd, which operated a mini steel mill at Tarapur in Maharashtra. The Jindals, who had
wide experience in the steel industry, renamed it as Jindal Iron and Steel Co Ltd (JISCO)
now known as JSW Steel Limited (Downstream)
In 1994, to achieve the vision of moving up the value chain and building a strong,
resilient company, JISCO promoted Jindal Vijayanagar Steel Ltd (JVSL) now known as
JSW Steel Limited (Upstream) .Its plant is located at Toranagallu in the Bellary-Hospetarea of Karnataka, the heart of the high-grade iron ore belt, and spread over 3,700 acres
of land. It is just 340 kms from Bangalore, and well connected to Goa and Chennai ports.
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RAW
MATERIALSThe raw materials that company consumes are:
Iron ore: Though companys plants strategic location in the ore rich Bellary-
Hospet belt in Karnataka provides it easy access to ore. Dedicated mines through
Vijay Nagar minerals provide about 20%of iron ore requirement. As the cost of
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iron ore is increasing day by day JSW has taken certain measures for cost
reduction for example:
Setting up 20 MTPA Beneficiation plant to use lower grade Iron ore to improve
Fe content to 63% which reduces cost of procurement, improves productivity in
iron making and reduces fuel consumption.
Acquiring additional Mines, both in India and abroad to increase self-sufficiency.
Coke: The captive coke oven batteries were producing around 60% of total
requirement, thus necessitating importing the balance coke.
Cost reduction initiatives.
New coke oven batteries are expected to be commissioned in financial year 08-
09, increasing the captive availability to 75% of requirement.
Lower coke consumption with improvement in quality of furnace.
Limestone: The Company produces near about 0.2 mtpa of limestone. As a
result it meets 60% -75% of requirement of the facilities.
PRODUCTION HOUSE
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PRODUCT DETAILS: -
1. Mild Steel Slabs
2. Hot Roll Coils/Steel Plates/Sheets
3. Hot Rolled Steel Plates
4. Cold Rolled Coils/Sheets
5. Galvanized Coils/Sheets
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THE JSW FAMILY GUIDING PRINCIPLES FOR:
Customers
Understand and anticipate needs
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Respond promptly
Represent accurately products and services
Provide high quality products and services
Compete with competitors
People
Treat co-workers with respect
Be dignified at business meetings and company gatherings
Recognize meritorious work
No biases of any nature
Encourage learning
Business
Work to optimize profits and shareholder value
Maintain accurate books of accounts
Let dealers/suppliers compete fairly, go for quality at reasonable cost, pay them in
time
Comply strictly with government laws and regulations
Behavior
Maintain confidentiality of information, plans, finances
Act solely in the benefit of the company (no conflict of interest)
Do not accept gifts or money
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Desirable not to accept or offer gifts even of nominal value
Media contact only through designated personnel
Corporate assets, including internet, to be used for business purpose
Speaking up incase of a breach
Community
Actively assist in improving societys quality of life
In case of natural calamity, dont be laid back
Actively assist in preserving environment and natural resources
Export Growth
JSW Steel is a leading exporter of steel year after year. It sells to markets across the world
covering 59 countries across Asia Middle East, Europe, America, Africa and Australia.
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FY 06 - 07
Af rica
4%
Ethiopia
1%
Asia
2%
South Af rica
2%
South America
3%
Russia
4%Iran
4%
Middle East
13%
Europe
51%
USA
16%
NEW PROJECTS UNDERTAKEN BY THE COMPANY
37
FY 05-06
USA
33.9%
Europe
21.5%
Middle East
13.1%
Iran
11.0%South America
0.5%
South Africa
3.9%
Asia
3.0%Ethiopia
0.6%
Australia
0.3%
China
2.1%Africa
7.9%
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Sno. PROJECTS PURPOSE CURRENT
CAPACIT
Y
(MTPA)CURRENT PROJECT
EXPANSION PLANS
1 Phase II Modernization of existing
Hot Strip Mill
To increase the capacity
up to .7 MTPA by the end
of 2nd quarter of 2008-
2009
2.5
2 Crude Steel capacity expansion
project
Increase capacity by
2.8MTPA at vijaynagar by
September 2008
4
3 State of the Art new Hot Strip Mill
(Phase I)
To be commissioned by
September 2009
3.5
4 State of the Art new Hot Strip Mill
(Phase II)
To be operational by
September 2010 and
increase capacity by 5
MTPA
-
5 Expansion of crude steel capacity Increase capacity by 3.2
MTPA to reach 10 MTPA
prior to the scheduled date
of September 2010
6.8
6 Conversion of two Galvanizing
lines at Tarapur to Galvalume is
scheduled in 2008-2009
- -
7 30 MW power plant being set up
at Tarapur
To meet the requirements
of downstream units
-
8 Blooming mill at Salem unit will
be commissioned in 2008-2009
To increase the capacity
of rolled products by .45
MTPA
.45
9 Beneficiation Plant 20 MTPA This project would help the
company in reducing
procurement cost of iron
-
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ore and achieve lower fuel
consumption in iron
making due to lower
alumina content and higher
productivity
10 New captive power plant 300 MW - -
OTHERS MAJOR STEEL PRODUCERS ARE
Tisco (Tata Iron and Steel Corporation ltd)
Steel Authority of India ltd.
JSW Steel Ltd
Jindal Strips Ltd
Saw Pipes
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Uttam Steels Ltd
Ispat Industries Ltd
Mukand Ltd
Mahindra Ugine Steel Company Ltd
Tata SSL Ltd
Usha Ispat Ltd
Kalyani Steel Ltd
Electro Steel Castings Ltd
NMDC
AWARD OF JSW
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Highest Export of Enginering products Award by Maharashtra Govt.
Nitya Shree Award for Export Performance
Award of Excellence
Top Exporters Awards
Best Export performance
Innovative HR practices
Best Suppilers Award
National Quality Award
MEANING OF EXPORT
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Exporter should select the product that can be manufactured and sourced with consistent
standard quality at least equal to that of competitors. The product should be available in
sufficient quality and it should be possible to supply timely regularly and economic cost.
The exporter should tack care such some following points while choosing the
commodity which he want to export:
Import regulations in respect of such commodities by the importing countries.
Availability and profitability of such commodities.
Rates of duty drawback and import replenishment in respect of such
commodities.
Whether such commodities enjoy tariff preferences or not, in the importing
country.
Suitable packaging and labeling.
Mode of transport and suitability of logistics
INTERNATIONALIZATION
The reasons to the move behind the international market are:
To achieve higher rate of profit - The domestic market do not promise a
higher rate a higher rate of profits, business forms search for foreign markets which
promise for higher rate of profits.
Expanding the product capacities beyond the demand of the
Domestic country. - Domestic companies expanded their production capacities
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more than the demand for the product in the domestic countries, these
companies, in such cases, are forced to sell their excess production in foreign
developed countries.
Severe Competition in the home country-The countries oriented
towards market economies since 1960s had serve competition from other firms in
the home countries. The weak companies which could not meet the competition.
Limited home market- When the size of the domestic market is limited
either due to the population or due to lower purchasing power of the people or both,
the
companies internationalize their operations.
Political stability v/s political instability- Political stability means that
continuation of the same policies of the government for a quite longer period.
Availability of technology and Managerial competence New and
advance technology and managerial competence are attract or pull the companies
form the home countries.
High cost transportation-When the foreign company enter other countries
then it face the problem of high cost of transportation for solving this problem the
foreign company are inclined to increase their profit margin by locating their
manufacturing facilities in foreign countries where there is enough demand either in
one country or in a group of neighboring countries.
Nearness to raw material-The source of highly qualitative raw materials
and bulk raw materials is a major factor for attracting the companies from various
foreign countries.
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Availability of quality human resources at less cost- The human
resource is available on less comparatively then the domestic country and better
quality means the economic thumb rule less cost and better quality.
Liberalization and globalization Most of the countries in the globe
liberalized their economies and opened their countries to the rest of the globe. These
changed policies attracted the multinational companies to extend their operations to
these countries.
To increase market share- Some of the large-scale business firms would
like to enhance their market share in the global market by expanding and intensifying
their operations in various foreign countries. Companies that expand internally tend to
be oligopolistic. Smaller companies expand internationally for survivals while the
large companies expand to increase the market share.
To avoid tariff and import quotas- It was quite common before
globalization that government imposed tariffs or duty on imports to protect the
domestic company. Sometimes Government also fixes import quotas in order to
reduce the competition to the domestic companies from the competent foreign
companies. These practices are prevalent not only in developing countries but also in
advanced countries.
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EXPORT TRANSPORTATION
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Mode of Transport
By Road
Through the road transportation the consignment sent to the export through the by truck
or container.
The freight forwarder arrange the truck for the sending consignment.
The send of the consignment is better when the transporter is near the exporter.
Advantage
Low cost- The freight is low when the importer is near.
Less formalities- Through the formalities are less than the air or the Ocean.
Easily Available-The truck are easily available so the not require to giving theenquiry on the net
Disadvantage
Costly- when the consignment send on the long root then the road transportation cost
is to high.
Quantity restriction- when the quantity is more then the road is not a right choice to
send the consignment.
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By Rail
Through the rail transportation the consignment sent to the export through the by train
route. The freight forwarder arranges the rail wagon as per the requirement of the
exporter for the sending consignment.
The send of the consignment is better when the transporter is near the exporter.
Advantage
Low cost- The freight is low when the importer is near.
Less formalities- Through the formalities are less than the air or the Ocean.
Easily Available-The truck are easily available so the not require to giving the
enquiry on the net
Disadvantage
Costly- When the consignment sends on the long root then the road
transportation cost is too high.
Route restriction- The availability of the rail route is not every where in the
world or the places.
Sample of Bill of Landing of Rail
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Air WayThe Airway of transportation is most fast and very effective in time constraint. The air
way is developed latest of the comparisons of the other mode of transport. The airway is
the shortest way for the sending the goods but it is a very costly and limitation of the
quantity.
Benefits of Air-way
Faster delivery The ports worldwide can be reached in 1 or 2 days or in a few
hours by airfreight, thus reducing the risks of theft, pilferage and damage to the
goods. Delivery to certain areas may take several weeks to arrive by ocean and
land freight. Time sensitive or perishable goods, such as fresh seafood and
flowers, often rely on the airfreight.
Better security Airfreight has a tighter control over its cargo, thus it has better
security that reduces the cargo exposure to theft, pilferage and damage.
Less packaging Airfreight requires less packaging because of faster delivery and
better security. Less packaging may mean saving freight, packaging and labor
costs.
Lower insurance Airfreight is faster and has better security than the land and
ocean freight, thus the insurance premium rate generally is lower.
Shorter collection time in an pen account trade arrangement
The time to collect payment in an open account trade arrangement most often
runs from the time the customer receives the goods and not from the time the
goods are dispatched. Air delivery is fast, thus the collection time is shorter.
Disadvantages ofAir-way
Costly- the air freights to costly all exporters and importer cannot afford it. Thus
airfreight is increase the cost of the product and this de-motivated the export .
Limitation of the sending the goods- through the air shipments the to send the bulk or the
completion of the bulk order is too hard to complete for the exporter.
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EXPORT PROCESS
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Stages of Shipment: There are three stages of shipment preshimpment
stage, shipment stage or last one is postshipment which are shown below:
PORT AND SHIPPING FORMALITIES
This is an important stage in physical Distribution Management and Processing of Export
Orders. Procedurals formalities for shipment of export cargo differ from port to port because
of different reasons e.g. Port trust Act, Dock Bye Laws, custom of trade etc. Like custom
formalities, these are normally attended to by CHAs who specialize handling this part ofexport transactions. Export cargo can be brought to the port only after the ship has been
allotted a berth and cleared for loading. Some port authorities in India require the shippers to
pay port charges and have their shipping bills passed by the customs before carting their
goods to the docks. At the Mumbai port however shippers have the facility of paying port
charges after the shipment.
Before bringing the cargo to the shipment shed the shipper has to obtain the carting
permission from the shed superintendent and also the ships agent on the document
prescribed by the port trust this document is known as, Port Trust Copy of the Shipping Bill
at Port. Carting order is the permission to bring the goods inside the docks and store them in
proper sheds.
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Shipment Stage
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Steps involved in obtaining carting point
Fixing of the vessel with the owners/nomination of the vessel by buyers in case of fob
shipments.
Nomination of shipping agent by owners
Nomination of load port
Shipping agent to obtain rotation no.
Shipping bill to be filed by CHA
Necessary Docs. (N- form) to be sent to Octroi agent at Octroi Naka by CHA
Shipping agent to give tentative ETA to port and to us.
CHA to provide shipping bill photocopies to shipping agent for obtaining carting point.
Port grants carting permission max. 7 days prior to arrival of vessel.
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Choosing the Carrier
Unless the importer specifies a carrier, the exporter is free to choose a shippingcompany or airline which offers a competitive rate and can meet the latest date forshipment. Certain importing countries may prohibit the use of flag vessels of a hostile
country and any vessels that would make a stopover in a hostile country en route to theirterritory.
The Earliest Date of Shipment
Importers may stipulate in the letter of credit (L/C) an earliest date of shipment to
prevent the exporter from shipping the goods too early, thus avoiding the high
inventory, warehouse congestion and financial strain
The Latest Date of ShipmentThe latest date of shipment or the last date for shipment stipulated in the letter
of credit (L/C) prevents the exporter from shipping the goods too late, thus
avoiding an inventory shortage. This stipulation is important especially for
seasonal goods or during currency devaluation in the importing country, in which
a late shipment may render the goods unsalable or cost more to the importer.
Disregarded Expressions as to the Date for ShipmentExpressions such as "immediately", "promptly", "and as soon as possible" and
the like should not be used for shipments. If they are stated in the letter of credit
(L/C), the bank will disregard them.
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There are various documents present in export,
which are as follows:
1. FORMAT OF LETTER OF CREDIT
2. LETTER OF CREDIT CHECK LIST3. FORMAT/INSTRUCTION FOR OPENING OF CREDIT
4. COMMERCIAL INVOICE
5. MILL WEIGHT LIST
6. DETAILED PACKING LIST
7. PURCHASE ORDER
8. TRANSPORTATION DOCUMENT
9. SALES CONTRACT
10. INSPECTION CERTIFICATE
11. CERTIFICATE OF ORIGIN
12. MATES RECEIPT
13. LETTER OF INDEMNITY
SHIPMENT ADVICE
Difference b/w Pre & Post Documents
PRE-SHIPMENT
DOCUMENTS
POST-SHIPMENT
DOCUMENTSCommercial Invoice.
Packing List.
L/C(Letter of credit)
Purchase order format.
Sales order.
Performa Invoice..
B/L (Bill of Lading).
M.T.C
Fumigation.
Acknowledgement.
Insurance.
Quality Certificate.
Weight Certificate.
Certi. Of Origin.
Bill of exchange. Shipment Advice.
D.E.P.B.
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International market department{Deal mostly through agents (because of security reasons and fast accessibility and
means of communication)}
Get orders (work orders)In which mode of payment is written which is done mostly through letter of credit and
advance payment
Work orders are transferred to plant
ManufacturingManufacturing process starts (conversion of raw material into finished goods which are
to be exported)
Documents are prepared
{As per mode of payment (they especially consist of packing list). They are sent to
export finance department for negotiation}
Terms:-
L/C:- Letter of Credit.
S.D.F:- Self Declaration From.
D.E.P.B:- Duty Entitlement Pass Book Scheme.
E.D.I:- Electronic Data Interchange.
MTC: - Mill Test Certificates .
B/L:- Bill of Lading.
B.R.C:- Bank Certificate of export
and Realization
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Commercial Invoice
The commercial invoice is a record or evidence of transaction between the exporter and
the importer. It is similar to an ordinary sales invoice, except some entries specific to the
export-import trade are added.
PERFORMA
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Specific Language Requirements in the Commercial InvoiceCertain importing countries may require that the commercial invoice and the packing
list be made out in, or translated to, the language of the importing country, for
example, in French for shipment to France, in Italian to Italy, and in Spanish to
Mexico and Venezuela.
Declaration on Commercial InvoiceThe declaration on the commercial invoice for some countries must be in a
specified wording. The exporter may check the wording with the customs broker,
the government external trade department, or the foreign government trade office
concerned in the exporting country.The content of a typical declaration includes a sworn statement from the
exporter indicating that the goods in question are manufactured in the exporting
country, and that the amount shown in the invoice is the true and correct value.
Certification and/or Legalization of Commercial InvoiceThe letter of credit (L/C) from certain importing countries, in particular from the
Middle East, requires the certification and/or legalization of the commercialinvoice.
The certification, which usually is performed by the local Chamber of
Commerce of the exporting country, is to confirm that the invoice and
declaration (in the invoice) are correct.
The legalization, which is done by The Consulate or The Commercial
Section of the Embassy of the importing country, is to verify that the invoice is
correct.
d payment of a fee. The processing time may take one week.
Corrections or Changes in the Commercial InvoiceAny visible corrections or changes made in the commercial invoice must beinitialed. In practice, the initial usually is done using a rubber stamp bearing theword "CORRECTION".
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Signature and/or Stamp
The commercial invoice and packing list need not be signed, unless otherwise
stipulated in the letter of credit (L/C). In practice, the original and the copy of the
commercial invoice and packing list are often signed.
Description of Goods
The description of the goods in the commercial invoice must correspond with the
description in the letter of credit (L/C). In all other documents, the description
can be in general terms provided it is not inconsistent with the description in the
L/C.
.Marks & NumbersShipping Marks and Numbers for detail information.
QuantityIf the letter of credit (L/C) does not stipulate the quantity in a stated number of units
(i.e., it does not state in units such as piece, set, box, dozen, or gross), or unless the
L/C stipulates that the quantity of the goods specified must not be exceeded or
reduced, a tolerance of 5% more or 5% less quantity is permitted, provided the totalamount does not exceed the amount of the L/C.
In the sample L/C the stated quantity is 100 Sets, thus the quantity in the
invoice must be 100 Sets. If such sample L/C does not state the quantity, the
Shivnath Harnarain India Ltd Exports can ship between 95 sets and 100 sets of
pneumatic tools, but not over 100 sets as the total amount will exceed the L/C
amount of US$25,000. If such L/C does not state the quantity and the L/C amount is
US$26,250 or more, the exporter may ship between 95 and 105 sets.
If the L/C quantity is indicated using the words "about", "approximately",
"circa" or similar expressions, the quantity in the invoice cannot exceed 10% more
or 10% less than the quantity indicated in the L/C. For example, if the L/C quantity
is "about 100 sets", the quantity in the invoice can be any quantity between 90 sets
and 110 sets, provided the total amount does not exceed the amount of the L/C.
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Unit Price
If the letter of credit (L/C) unit price is indicated using the words "about",
"approximately", "circa" or similar expressions, the unit price in the invoice cannot
exceed 10% more or 10% less than the unit price indicated in the L/C. For example, if
the L/C unit price is "about US$250", the unit price in the invoice can be any unit price
between US$225 and US$275, provided the total amount does not exceed the amount of
the L/C.
Amount
Unless otherwise stipulated in the letter of credit (L/C), the amount must not exceed
the amount permitted by the L/C. If the L/C amount is indicated using the words
"about", "approximately", "circa" or similar expressions, the amount of the invoice
cannot exceed 10% more or 10% less than the amount indicated in the L/C. For
example, if the L/C amount is "approximately US$10,000", the amount of invoice
can be any amount between US$9,000 and US$11,000.
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Packing List
The packing list is an extension of the commercial invoice, as such it looks like a
commercial invoice.
The exporter or his/her agent the customs broker or the freight forwarder reserves
the shipping space based on the gross weight or the measurement shown in the packing
list.
Customs uses the packing list as a check-list to verify the outgoing cargo (in
exporting) and the incoming cargo (in importing). The importer uses the packing list to
inventory the incoming consignment.
For the fields in the preamble of the packing list, please refer to the Explanations:
Fields in the Preamble of the Commercial Invoice.
For the purpose of explaining other fields in the packing list, it is assumed that the
pneumatic tools in the sample L/C contain the following data:
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Package No.
The entries preferably arranged in sequence from the lowest number to the
highest, that is, from package No. 1 and up. From the sample L/C, enter "C/No.
1-50" or the like in the field (Package No.), provided it is not inconsistent with
the marks and numbers on the master cartons.
Item No. and Description of Goods
The description of the goods in the packing list can be in general terms, provided
it is not inconsistent with the description in the L/C. From the sample L/C and
data of the pneumatic tools above, entering "A380" and "'ABC' Brand
Pneumatic Tools" in the fields will satisfy the requirements.
Quantity
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The packing list and commercial invoice need not be signed, unless otherwise
stipulated in the letter of credit (L/C). In practice, the original and the copy of the
packing list and commercial invoice are often signed.
Marks & Numbers
Shipping Marks and Numbers for detail information.
Corrections or Changes in the Packing List
Any visible corrections or changes made in the packing list must be initialed, as
in the commercial invoice and all other export documents, by their respective
issuers. In practice, the initial usually is done using a rubber stamp bearing the
word "CORRECTION".
Summary of Totals in a Consignment
Total Number of Packages
For example a consignment where the range of the carton number is as follows:
C/No. 1-8
C/No. 9-17
C/No. 18-23
C/No. 24-30
C/No. 31-42
C/No. 43-50
- Product A
- Product B
- Product C
- Product D
- Product E
- Product F
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put a summary "Total 50 Cartons" in a succeeding row after the "C/No. 43-50".
Total Quantity
If a consignment consists of different units, preferably show all the units used in the
summary of totals. For example, a shipment includes:
100 dozen
200 dozen
300 boxes
400 boxes
- Product A
- Product B
- Product C
- Product D
as such the total shows "300 Dozen and 700 Boxes"
Total Weight and Total MeasurementIf the net weight and gross weight are used in the breakdown, the summary must show
the total net weight and the total gross weight. If kgs., lbs., CBM and cft. are used in the
breakdown, the summary must show the total of kgs., lbs., CBM and cft..
Under certain circumstances, such as in a consignment consisting of a few mastercartons where each carton contains several small items of different sizes, it is necessary
to show the breakdown of the quantity of each item. There is no need to show the
breakdown of the weight and measurement of each carton. Simply entering the total
weight and the total measurement of the consignment in the summary row would satisfy
the export requirements.
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Principles of Cargo (Marine) Insurance
The cargo (marine) insurance works on the principles of insurable interest, utmost good
faith, and indemnity.
Insurable Interest
When the goods are lost or damaged and the owner of the goods (i.e., the title
holder in the goods) suffers a loss, fails to realize an expected profit, or incurs
liability from the loss or damage, the owner (the title holder) is deemed to have
an insurable interest in the goods.
When the exporter delivers the goods, the insurable interest in such goods
transfers at the point and time where the risk shifts from the exporter to the
importer, as determined by the international commercial terms used. For
example, the point and time where the risk shifts in:
CIF
(Cost, Insurance and Freight to the named port of destination) ---
the point the risk shifts is on board the ship at the named port of loading,
as such the insurable interest transfers from the exporter to the importer at
the time the goods pass over the ship's rail.
CIP
(Carriage and Insurance Paid To the named place of destination) ---
the point the risk shifts is at the depot in the country of shipment, as such
the insurable interest transfers from the exporter to the importer at the
time
the goods are loaded on truck or container, rail car, or airplane (or goods
placed in the custody of an air carrier) at the named point of departure.
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The time the insurable interest transfers from the exporter to the importer is,
technically, the time the exporter endorses the specific policy or the insurance
certificate to the importer, as the case may be.
The insurance certificate bears the open policy number of the exporter and,
like in a specific policy, the claim agent at port of destination and that claim
payable at destination are also indicated.
The importer relies on the specific policy or the insurance certificate and the
supporting claims documents as proof that the goods have been insured and that
he/she has the insurable interest in the goods when filing for insurance claims
against loss or damage. In the trade terms DDU and DDP, the exporter is
responsible for the risks up to the delivery of goods to the final point at
destination (the project site or importer's premises usually), as such the insurable
interest in the goods does not transfer from the exporter to the importer in the
shipment.
Some countries may require that the import and/or export shipments be
insured with their national insurance companies.
Utmost Good Faith
The principle of utmost good faith is indispensable in any insurance contract.
Under the open policy the insurer usually knows only of the shipments made by
the exporter after the receipt of the insurance declaration form and/or the copy of
the insurance certificates. Under such circumstances, a consignment may have
reached the importer in:
Good condition, that is, without sustaining any loss or damage, before
the insurer knows of such consignment. If the exporter knows that the
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consignment has safely reached the importer and deliberately does not
declare such consignment in the insurance declaration form in order to
avoid paying the insurance premium, such action is a breach of good
faith. Consequently, the insurer may cancel the insurance policy issued to
the exporter when the exporter's bad faith is known.
Bad condition that is, sustaining loss or damage, before the insurer
knows of such consignment. Whether or not the exporter knows that the
consignment has not safely reached the importer and fails to declare such
consignment in the insurance declaration form, the insurer is liable to pay
for the loss or damage out of good faith.
Indemnity -Cargo insurance is a contract of indemnity, that is, to compensate for the
loss or damage in terms of the value of the insured goods. The amount insured as agreed
between the insurer and the assured forms the basis of indemnity.
Institute Clauses
The Institute Clauses of the Institute of London Underwriters often referred to as the
London Clauses orEnglish Clauses, form the basis of the cargo insurance contract in
many countries.
In U.S.A. and some other areas, the Institute Clauses of the American Institute of
Marine Underwriters, often referred to as the American Institute Clauses or
American Clauses, are used. The American Clauses and the London Clauses can be
different from one another.
The most common Institute Clauses include the Institute Cargo Clauses, Institute
War Clauses, Institute Strike Clauses, and Institute Air Cargo Clauses.
Institute Cargo Clauses
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The Institute Cargo Clauses specifically excludes the risks of war (in the
F.C.&S. Clause---Free of Capture and Seizure Clause) and the risks of strikes,
riots and civil commotions (in the F.S.R.&C.C. Clause---Free of Strikes, Riots
and Civil Commotions Clause). The risks of delay in delivery and inherent vice
are not included in the Clauses.
Institute War Clauses (Cargo)
The Institute War Clauses (Cargo) specifically exclude the loss, damage or
expense arising from any hostile use of any weapon of war employing atomic or
nuclear fission and/or fusion or other like reaction or radioactive force or matter.
The Clauses cover:
The risks excluded in the Institute Cargo Clauses by the F.C.&S. Clause;
The loss of or damage to the interest insured caused by: hostilities,
warlike operations, civil war, revolution, rebellion, insurrection or civil
strife arising there from; mines, torpedoes, bombs or other engines of
war;
The general average and salvage charges incurred for the purpose of
avoiding, or in connection with the avoidance of, loss by a peril insured
against by these clauses.
Under the War Clauses, the insurance takes effect only as the interest insured are loaded
on an overseas vessel and terminates either as the interest are discharged from the
overseas vessel at final port or place of discharge, or on expiry of 15 days counting from
midnight of the day of arrival of the vessel at the final port or place of discharge,
whichever shall first occur. In other words the goods are covered only while they are on
a vessel.
In the case of transhipment, the overseas vessel arrives at an intermediate port or place to
discharge the interest for on-carriage by another overseas vessel, the insurance
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terminates on expiry of 15 days counting from midnight of the day of arrival of the
vessel at the intermediate port or place, but reattaches as the interest are loaded on the
on-carrying overseas vessel. During the period of 15 days such insurance remains in
force after discharge at such intermediate port or place of discharge.
Institute Strike Clauses (Cargo)
The Institute Strikes, Riots and Civil Commotions Clauses is commonly
referred to as the Institute Strike Clauses. The insurance covers the loss of or
damage to the property insured caused by strikers, locked-out workmen, or
persons taking part in labor disturbances, riots or civil commotions, and persons
acting maliciously. However, it does not cover the loss or damage proximately
caused by delay, inherent vice or nature of the property insured and the loss or
damage caused by hostilities, warlike operations, civil war, revolution, rebel-lion,insurrection or civil strife arising there from.
Institute Air Cargo Clauses (All Risks)
The Institute Air Cargo Clauses (All Risks) are used specifically in airfreight.
The terms and conditions of cover closely follow the Institute Cargo Clauses (All
Risks) revised to suit air shipments. The Clauses exclude sending by Post (i.e.,
postal shipments not covered).
Customs Export Declaration
In many countries, export shipments valued below a minimum requirement may not
require a formal customs declaration. The purposes of customs export declaration are to
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verify and regulate outgoing cargo (including re-export goods) and to collect the
statistical data (of the product, quantity, value, and destination) for export references.
The format of customs export declaration forms varies from country to country. The
form typically contains the information found in the commercial invoice and the bill of
lading or waybill. In addition, the form may include:
The business license number and/or tax account number and/or export
permit (license) number of the exporter
The business license number of the manufacturer from whom the export-
trader buys the export goods
The commodity code or category of goods
The country of destination and its country code (a numeric country code
may be assigned to each importing country by the customs of exporting
country for compiling statistics)
The name, address and code (or license) number of the customs broker or
forwarder
The customs charges The exporter normally must sign an authorization
paper (the power of attorney) allowing the customs broker or the
forwarder to handle the customs declaration.
In certain countries, exporters may prepare the customs declaration forms by
BY OCEAN
By marine the exporter send their order through the ocean for the product but above all
the kind of documents require.
Ocean (Marine) Bills of Lading
The bill of lading (in ocean transport), waybill or consignment note (in air, road, rail or
sea transport), and receipt (in postal or courier delivery) are collectively known as the
transport documents.
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Please see the sample Ocean Bill. The bill of lading (B/L) serves as a receipt for goods,an evidence of the contract of carriage, and a document of title to the goods. The carrierissues the B/L according to the information in a dock receipt, or in some cases according to acompleted working copy of the B/L supplied by the customsWWWWWSJHJKDHAJKHKLAJHDKJFHKLJAHDKJFHKLAHFJKHAKLJHJHDFLKJAHDKJHFKKKKKKKKJbroker.
The B/L must indicate that the goods have been loaded on board or shipped on a namedvessel, and it must be signed or authenticated by the carrier or the master, or the agent on
behalf of the carrier or the master. The signature or authentication must be identified ascarrier or master, and in the case of agent signing or authenticating, the name and capacity ofthe carrier or the master on whose behalf such agent signs or authenticates must beindicated.
Unless otherwise stipulated in the letter of credit (L/C), a bill of lading containing anindication that it is subject to a charter party and/or that the vessel is propelled by sail only isnot acceptable.
WRIBG OATG HJHFJHAHDFHADFF
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MILL TEST CERTIFICATES
Mill Test Certifices is Certified that the product is make by the origin and What kingof raw Material is used for make the product the mill test Certificates is given bythe Manufactring the comical and raw Material quantity and how to process ofmaking the product .
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CERTIFICATE OF ORIGIN
In this certificate the Manufare declare the product of export is originaland the product is made in India .This certificate is certified bythe INDIAN MARCHANTCHAMBER. The product is clearlyclassified and difned by the exporter
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BENEFICIARY DECLRIATION
Beneficiary declriation is a detialted the various document is send the importer
time to time and this document the FAX recipt and other recipt of send of letter
is submitted to the customer .
PERFORMA OF DECLRIATIONDate
SHIPMENT ADVICE
ToOman Insurance Company(PSC)P.O.Box 1931,Sharjah, U.A.E.
Fax No 009716 5724870,Tel : 009716 5723803
Ref : Open Cover Note/Policy No SMOC200500030068 Dated 28/2/05
As per the terms of the letter of credit we hereby advising you the following shipmentdetails.
Name of the Carrying Vessel : TS DAMMAMDate of Shipment : 30.06.2008Number of Packages : 16 Coils
Shipping Marks : TSSC/201514/2008,P.O.BOX:1818,SHARJAH, U.A.E.
Amount : US$. 94082.30Letter of Credit Number : EBI1LC08003664Policy Number : SMOC20050003068Bill of Lading Number : EPIRINDMUM120366Port of Loading : GTI PORT IN INDIAPort of Discharge : JEBEL ALI PORTISSUING BANKS NAME : EMIRATES BANK INTERNATIONAL PJSCLETTER OF CREDIT NUMBER : EBI1LC08003664DATE OF ISSUE : 080429
ForJSW Steel Limited
Authorised Signatory
Date
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ToTECHNICAL SUPPLIES AND SERVICES CO LTD.P.O.BOX:1818SHARJAH, UAETEL:06-5341344, FAX:06-5341686
Sub : One Set of Non-Negotiable Documents against Letter of Credit NumberEBI1LC08003664 Dated 080429, Issuing Banks Name : Emirates Bank International PJSC
Please find enclosed Set of Non - negotiable documents towards shipment of 16Coils (64.220 M.Ton Net Weight) of Supply of Prepainted Aluzinc Coils
Documents enclosed as under
1. Commercial Invoice No : JSW/2008-2009/PPGL/51062. Copy of Bill of Lading No3. Certificate of Origin.4. Packing List dated5. Mill Test Certificate dated
Please find the same in Order.
For JSW Steel Limited
Authorised Signatory
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Date
Beneficiarys Certificate
Sub :Our Commercial Invoice no. JSW/2008-2009/PPGL/5106 Dated
Letter of Credit Number EBI1LC08003664 Dated 080429, Issuing Banks Name :Emirates Bank International PJSC
With regard to the shipment made against above referredCommercial Invoice, we hereby certify that One full set of Non-
Negotiable copies of Documents have been sent to Applicant byCourier Service within 1 week of Shipment.
A copy of Courier Receipt attached.
For J S W Steel Limited
Authorised Signatory
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Date :
Weight List
Sub :Our Commercial Invoice No. JSW/2008-2009/PPGL/5106 Dated
Letter of Credit Number EBI1LC08003664Issuing Banks Name : Emirates Bank International PJSC
With regard to the shipment made against above referred Commercial Invoicewe hereby certify that the weight as follows :
Description of Goods : PREPAINTED ALUZINC COILSTotal Net Wt in MT : 64.220 MTTotal Gross Wt in MT : 65.035 MT
Total No. of Coils : 16
For JSW Steel Limited
Authorised Signatory
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BILL OF LODING
Bill of loding is Cleared classified by the Net. Wg. & Gross Wg.
The date of shipment and the port of destination is classified in this document .Itis certified the what king of product and the what king of quantity is Export .
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General Cargo Container
(1)General purpose (dry cargo) container
It is suitable for the widest varieties of cargo. It is fully enclosed and weatherproof,
having rigid walls, roof and floor, with at least one of its walls, either end wall (end
loading) or side wall (side loading), equipped with doors.
ADVANTAGES OF CONTAINER:
1. Less packing needs
2. Cargo arrives in better condition
3. Rates are likely to remains more competitive when compared with
conventional tonnage.
4. More reliable transmit
5. Overall quality service.
6. Faster transit increase the exporter and importers
DISADVANTAGES
1. The container owing company has a complex task of monitoring and
ensuring full utilization of such equipments.
Dry Cargo Container
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In some restriction exist regarding internal movements particularly 40footer.
ContainerFirst of all the shipping through the container it is used by exporter when the export
quantity is very less or not enough to the charter the vessels.
The process to the hiring the container is in these steps.
1. First of all the marketers of the exporter received the order of the products selling
and the decided the terms of the selling and the payments.
2. After first steps the marketers communicate with the shipping departments
3. On the marketers information the shipping departments know that how much
container are required to send the product.
4. The shipping departments know that where the buyers or consignee or notify
party is lying.
5. When the shipping departments know that where the buyers. Shipping
departments enquiry submit to the various freight forwarders and the invite the
tenders. When the shipping departments received the suitable freight forwarder
and they are negotiate with various freight forwarders.
6. The freight forwarders hire the container and send a their bill to shipping
departments.
7. Simultaneously the C.H.A. of exporters find or received delivery order (D.O.) the
C.H.A. stuff the container after the delivery of the container.
8. C.H.A. fulfill other formalities and loaded on the vessels.
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The basically the world divided in following parts to consider the oceans
Europe sectors
Africa
Gulf
Asian
Far east
South east
South America
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Comparison of Various Methods of Payment
Incoterm are a uniform set of international rules, promulgated by ICC (International
Chamber of Commerce) in Paris, for the interpretation of the terms most commonly used
in international contracts for the sale of goods.
FCA:
Free Carrier (named place)
Seller hands over the goods, cleared for export, into the charge of the carrier named by the
buyer at the named place or point
FAS:
Free Alongside Ship (named port of shipment)
Seller delivers the goods alongside the vessel on the quay or in lighters at the named port of
shipment.
FOB:
Free On Board (port of shipment)
Seller delivers the goods on board the vessel or at the airport at the named port/airport of
shipment.
CFR:
Cost and Freight (named port of destination)
Seller pays costs and freight and to deliver the goods to the named port of destination. This
term can only be used for sea and inland waterway transport.
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CIF:
Cost, Insurance, and Freight (named port of destination)
Seller pays costs, insurance and freight to deliver the goods to the named port of destination.
CPT:
Carriage Paid to (named place of destination)
Seller pays freight and insurance for carriage of the goods to the named destination.
CIP:
Carriage and Insurance Paid to (named place of destination)
Seller pays freight and insurance for the carriage of the goods to the named destination.
DAF:
Delivered at Frontier (named place)
Seller delivers the goods at the named point and place at the frontier.
DES:
Delivered Ex Ship (named port of destination)
Seller makes the goods available to the buyer on board the ship uncleared for import at thenamed port of destination.
DEQ:
Delivered Ex Quay - Duty Paid (named port of destination)
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Seller makes the goods available to the buyer on the quay (wharf) at the named port of
destination, cleared for importation.
Charter Shipping
Charter shipping is a tramp service. The term tramp, as used in the ocean shipping, refers
to a cargo ship not operating on regular routes and schedules, and picking up cargo only
when it is chartered (hired) from the ship operator.
While conference and non-conference shipping are for general cargoes, charter shipping
usually is for bulk cargoes like oil, coal, ore, and grain. Charter shipping has the lowest
freight rate per unit of weight or measure.
A charter party is required in charter shipping. A charter party---charter party
contract---is a written contract between the ship operator and the charterer (shipper). The
contract normally includes the ports, freight rate and time involved in the voyage(s).
The agreements between the ship owner and the charters is knows charter party and
signed by both the parties or their respective agents. Charter parties are concluded on the
basis of different forms of charter party agreements depending upon the custom of trade.
Normally the agreements the concluded on standard forms of charter parties by IMCO. The
NYPE forms are used of time charter of bulk carriers and the BPTIME/SHELLTIME for
time chartering of tankers. For voyage charter, standard forms of charter parties or the
GENCON charter party forms develops by the BIMCO are most widely used.
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Conference ShippingThe conference carrier or member of a freight conference provides conference shipping.
The freight conference---conference orsteamship conference orliner conference---is
a group of operators of vessel who operate on the same routes and cooperate on shipping
schedules at the standardized freight rates between ports.Conference shipping has
regular sailing schedules, thus is called the liner service.
Most ocean freight is carried by conferences. Conference carriers or their agents
issue an ocean bill of lading.
Non-conference Shipping The independent carrier or operator of vessel who is not a member of a freight
conference, sometimes called outside shipping, provides non-conference shipping.
Independent carriers, which carry about 25% of the ocean freight, operate on selected trade
routes in competition with conference carriers.
Non-conference shipping often does not have regular sailing schedules and freight rates
between ports. Consequently, it is perceived as less dependable than conference shipping.
Independent carriers or their agents issue an ocean bill of lading.
The charter of ship follows mostly this step.
1. L/C open then in 30 days for to hire the ship
2. Traders/seller giving the time period to hire the ship.
3. Shipping departments is enquiring for the ship through the broker. Shipping
department tell their requirements to the brokers such how much rent or fare
ready to pay
4. Through the enquiry the shipping departments find the suitable vessels for the
exporting goods.
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5. Then the shipping departments and shipping company contact with each other
through the broker. Shipping company offer and shipping department counter
offer.
6. When shipping department and shipping company both are mutually consensus
then agreement will be done.
7. When shipping departments and shipping company make agreement then
shipping department charter vessels.
8. The ship company giving the information to the shipping department of
owner/Desponent owner of ship E.T.A, E.T.B,
9. Shipping department ready their stevedores as per their giving information.
10. The ship loaded through the Crain and if the ship are stop/hold more than
contractual period then charter party has to pay the dunnage charges and if the
vessels are loaded before the contractual period then the shipping company
giving dispatch.
11. After the loading the ship will go for the discharge or importer port and the time
of travel between the loading and unloading port call transit time.
The ship operator issues a charter party bill of lading. Unless a letter of credit (L/C)
permits or calls for a charter party bill of lading, the bank will reject such transport
document in the L/C negotiation.
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Inco terms
Terms use in chartering or hiring the ship contract and use on port.
D.W.T.- Death weight means maximum load bear by the ship or vessels
DRAFT-After the loading the cargo how much ship goes in to the water?
G.R.T.- Gross tones
G.N.T.-Gross net tones.
MGO-IFO- Ship fuel
GENCON The Baltic and international maritime conference charter (As
1922,1976,1994). It use of agreement between charter party and owner of
ship/ Desponent owner of ship for mutual consensus.
RIDER CLAUSE-Extra clause adds by the shipping departments in
GENCON Call rider.
LAYCAN TIME-Period giving by traders to the shipping departments for
searching suitable ship/ vessels and confirm the chartering the ship till date
so and so and shipping company given the shipping departments to that in
between time the ship will arrived this between time call laycan time.
T.H.C. terminal handling charges.
PRESENT POSITION-it denote that where ship are.
LAYTIME- grace period
DERRICK- A type of cairn
DUNNAGE- in the ship wood /sheet are paved on the surface of ship called
dunnage.
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PRORATA- @ of
S.A.- Safe anchoring
S.B.- Safe berth
S.P.- Safe port
Ship chandlers- Person who supplies the food, water, on the vessels.
E.T.A.-Earliest time of anchoring
E.T.B.-Earliest time of berth.
E.T.C.- Earliest time of completion
E.T.D.- Earliest time of departure
P.W.W.D.- Per weather working day
S.H.E.X.E.I.U-Saturday holiday excluded even if use.
S.H.E.X.U.U.- Saturday holiday excluded use or unless.
S.H.I.N.U.- Saturday holiday included
F.H.E.X.- Friday holiday excluded (for Muslim/Islamic country)
STEVEDORE- Labour working the ship.
BERTH-Place where the ship are stand in row. Ready for the loading thecargo.
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RESEARCH METHODOLOGY
The most vital function of management in an organization is to minimize risk and
uncertainty through systematic decision-making. Better decision result from the
effectively and timely utilization of right information about the consumers, dealers,
competitors and others. So for making effective decision research play and importantrole and provide the right information about consumer, dealers, competitors etc. to the
management.In short the search for knowledge trough objective and systematic method
of finding solution to a problem is research. Research is a systematic gathering,
recording and analyzing of data about problems.
Objective of Study
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To Know about the Pre and Post documents.
The procedure of the documents
To find out that about of mode of transport are used.
To find out about how the shipping is done
To find about which kind of documents are requiring
To know the reason of the documents.
To know various terms is used in the shipping.
Research is of basic, two types
(1) Exploratory
(2) Descriptive
Exploratory research is a preliminary phase and is absolutely essential in order to obtain
a proper definition of problems. The purpose of exploratory research is to determine the
general nature of problems and veritable related to it. The major emphasis is on the
discovery of ideas and insight.
Exploratory research is characterized by flexibility and informality. Exploratory research
is generally carried out by three sources
(a) Literature (secondary data)
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(b) Experience survey (discussion with experts)
(c) Study of some specific cases
Descriptive research is used for some specific purposes. It is focus on the accurate
description of variables present in the problems. The data is collected in such a manner
that the ambiguous nature of causes and effect relationships in the phenomenon is
reduced to maximum extent. A descriptive research require a clear specifications of
what, who, when, where, why and how aspects of the research. Two types of research is
(a) Case method
RESEARCH METHODLOGY
Firstly a project on the Shipping documentation with reference to JSW Steel (India) Ltd.
was assigned me as a trainee. I have completed my project by g